Crypto Market

BTC and ETH Market Insight

BTC's price remains within a stable range and ecosystems lacking in stable liquidity will face significant difficulties. Several alts have already lost their year-to-date gains and will continue to decrease in value. Memes and AI coins have been the best-performing categories. The relationship between cryptocurrency and the upcoming US presidential election appears to be increasingly influential on one another. The betting odds for the approval of an ETH ETF experienced a significant increase over the weekend.

Options Market

BTC continued to consolidate in the 60k-65k range. Although the market promptly pulled back from 63k to 61k post-option expiry, the implied volatility drifted lower causing pains to longs - one-month implied volatility moved down to 51 points for BTC and 56 for ETH. This represents a good entry opportunity for those who seek to hold options as the implied volatility is now trading at a decent discount vs its corresponding realised volatility. That said, should the market remain choppy, the realised volatility  is expected to come down as well. Front-end skew shifted to favour puts again as the market fell - BTC 59k Put buyers and ETH 3k and 2.6k Put buyers contributed noticeable flows.

Altcoins and Blockchain News

• According to DefiLlama data, the total market value of stablecoins has fallen below 160 billion US dollars and is currently at 159.66 billion US dollars, with a weekly decline of 0.25%. 

   

• According to L2BEAT data, the current total value locked (TVL) in the Ethereum Layer2 network is 38.21 billion US dollars, representing a 7-day decline of 4.15%.

   

• Looty has announced that it has airdropped Key to the winners of the PancakeSwap INSPire Fiesta event.

   

• According to CryptoSlam data, Bitcoin on-chain NFT transaction volume in the past 7 days is approximately  49.6 million US  dollars,  representing a decrease of  10.58% compared to the previous week.

   

• According to the latest data from Dune Analytics, the number of addresses participating in EIGEN token claims has exceeded 110,000.

   

• According to official sources, the decentralized AI data network Masa has announced that the token airdrop for MASA is now live.

   

• Ethena's reserve fund has increased to 38.7 million US dollars.

   

• The weekly trading volume on the Solana blockchain-based DEX has exceeded 9.5 billion US dollars, ranking first with a 7-day increase of 26.26%.

   

• Bounce Launchpad is about to launch a new round of staking auction IDO projects.

Macro

The major indexes closed higher for the week: the DJIA added +2.2%, the S&P 500 +1.9%, and the NASDAQ +1.1%. The S&P 500 is getting back to its all-time high, after three consecutive weeks of gain. Value shares generally outperformed growth shares. Q1 earnings reports are providing additional confidence for the market.