Research Summary
The report discusses the recent developments in the crypto market, including regulatory changes, ETF approvals, and the growth of DeFi. It also highlights the performance of various cryptocurrencies and projects, and provides a list of 78 early projects for potential investment consideration.
Key Takeaways
Regulatory Developments and ETF Approvals
- Policy Win for Crypto: The U.S. House approved the FIT21 crypto bill, which clarifies the roles of the SEC and CFTC in regulating digital assets. This is seen as a positive development for the crypto market.
- Ethereum ETF Anticipation: The SEC is expected to make a decision soon on approving spot Ethereum ETF applications. If approved, this could attract more liquidity to Ethereum, similar to the spot Bitcoin ETFs.
DeFi Growth and Project Highlights
- DeFi Adoption: The total value locked in DeFi hit a two-year high, nearly tripling since October 2022, indicating growing adoption and interest in decentralized finance applications and protocols.
- Project Developments: Various projects such as Lens Protocol, Fantom, and Chainlink made significant strides, including building on new platforms, proposing rebranding, and completing successful pilot projects.
Crypto Market Performance
- Bitcoin Rally: Bitcoin saw a strong rally, moving from around $62,700 to $70,000 due to two key bullish events: CPI inflation numbers and news that the state of Wisconsin invested almost $100M in the BlackRock Bitcoin ETF.
- Ethereum ETF Impact: The anticipation of Ethereum ETF approval led to a surge in Ethereum’s price and boosted NFT prices for collections like Milady and Remilio.
Emerging Projects and Trends
- New Token Launches: New token launches included DRIFT on Solana and NOT on TON Network, indicating the continuous innovation in the crypto space.
- Emerging Trends: The report highlighted several emerging narratives and trends, including the approval of Ethereum spot ETFs, the innovation of HyperLiquidX, and the traction of Layer 3 narrative with the launch of SankoCorp’s Mainnet.
Actionable Insights
- Monitor Regulatory Developments: The approval of the FIT21 crypto bill and the potential approval of Ethereum ETFs could have significant implications for the crypto market. Investors should keep a close eye on these regulatory developments.
- Explore DeFi Opportunities: With the total value locked in DeFi hitting a two-year high, there could be potential opportunities in this sector. Investors might want to explore innovative DeFi projects and protocols.
- Assess Impact of ETF Approvals: The approval of spot Ethereum ETFs could attract more liquidity to Ethereum. Investors should assess the potential impact of these approvals on their investment strategies.
- Consider Emerging Projects: The report highlighted 78 early projects that could have potential. Investors might want to research these projects for potential investment opportunities.
