Weekly Web3 Research｜BRC-20 Soared by Nearly 30%, Grayscale canceled Ethereum Futures ETF Plan

Weekly Trend Overview

In the past week, most of the top 100 crypto projects have seen a significant price decline, with a minimum drop of 7.8% and a maximum increase of 41.7%. Currently, the total market cap of global cryptocurrencies is $1.17 trillion, a year-on-year increase of $50 billion.

Crypto Market

🔥 The Hong Kong Monetary Authority: The Digital Hong Kong Dollar Pilot Program has been launched, with the first round of experiments including transaction settlement and tokenized asset settlement. Among them, 16 selected companies such as HSBC and VISA will conduct their first round of trials this year.

🔥 The new CEO of Twitter has followed Dogecoin and Shiba Inu-related accounts on social media. In addition, she has also followed core contributors to multiple Dogecoin communities on Twitter, including Billy Markus, co-founder of the Dogecoin project.

🔥 Grayscale canceled Ethereum Futures ETF Plan: Grayscale canceled the Ethereum Futures ETF plan a few days after receiving a request from the SEC to withdraw its Filecoin Trust product application.
Regulatory Policies

🔥 The US Department of Justice is committed to criminalizing illegal behavior on digital platforms. The highest cryptocurrency enforcement official in the United States has promised to crack down on illegal behavior on digital platforms, stating that the scale of cryptocurrency crimes has “significantly” increased over the past four years.

🔥 The Russian legislative body will approve four bills to regulate cryptocurrencies by the end of July. These bills aim to regulate cryptocurrency mining, cross-border cryptocurrency payments, digital asset taxation, and liability for illegal use.

🔥 Pakistan’s Minister of Finance, Aisha Ghaus Pasha, recently revealed that the State Bank of Pakistan (SBP) and the Ministry of Information Technology have started working to ban cryptocurrencies, and cryptocurrencies will never be legalized in Pakistan. Pakistan plans to ban online services related to cryptocurrencies.

Macro Economy

🔥The G7 finance minister discussed the issue of crypto asset regulation and promised to comply with the recommendations and regulations of the FSB and IMF. The Intergovernmental Political Forum of the Group of Seven (G7) has expressed its commitment to implementing the upcoming crypto asset regulatory regulations of the Financial Stability Board (FSB) and the recommendations of the International Monetary Fund (IMF) on central bank digital currencies.

🔥Jean Paul Servais, Chairman of the International Organization of Securities Commissions (IOSCO), recently stated that the international regulatory agency will soon provide the first globally coordinated set of rules for crypto assets, including how existing regulations apply to the industry.

Crypto Market Highlights

⭐️According to data analysis company Santiment, whales holding 1,000 to 10,000 BTCs have been steadily increasing their holdings of BTC over the past five weeks. During this period, this group of market participants increased their holdings of 84,897 BTCs (valued at approximately $2.3 billion at today’s prices).

In the past 7 days, BTC NFT has ranked second among all blockchain sales, with sales skyrocketing by 31.22%. Within these 7 days, NFT sales reached $208.17 million.

The significant increase in NFT sales this week can be attributed to the emergence of NFTs originating from the BTC blockchain. The growth momentum of NFT sales based on BTC is strong. According to Cryptoslam data recorded on May 14, 2023, BTC NFT sales have become the main contributor to the sales of digital collectibles across 21 different blockchains.

Ethereum NFT sales continue to dominate, with NFT sales of $112.6 million; However, the runner-up position is occupied by BTC-based NFTs (also known as Ordinal Inions).

Data shows that BTC NFT sales reached $53,433,451, ranking second among 21 blockchains in terms of sales. Compared to the previous week, BTC’s NFT sales have jumped by 187.54%.

In addition, BTC’s overall network computing power has reached 364.64EH/s, returning to a historical high with a 24-hour trading rate of 6.63 transactions/s. Currently, the overall network difficulty is 49.55T, and it is predicted that the next difficulty will increase by 0.89% to 49.99T, with 12 days left until the next adjustment.

According to Arkham monitoring, Celsius Wallet has transferred nearly $900 million in ETH in the past week. Celsius Wallet has been very active, transferring nearly $900 million in ETH. They have transferred approximately $20 million in ETH to Wintermute OTC and Customer Withdrafts. Afterward, approximately $57 million of ETH was collateralized to Figment, and their $779 million of ETH collateralized on Lido was canceled.


Currently, 428,000 stETH withdrawal requests from Celsius have been processed, but Lido Finance still has approximately 49,700 ETHs in its withdrawal pool as a buffer.

BTC & ETH Weekly Performance

Bitcoin (BTC)

Bitcoin has been trading in a narrow range with low trading volumes since it recovered from a significant drop of nearly 5% on May 12. When analyzing the daily timeframe using the Wyckoff logic, we can identify different phases within the current distribution pattern. In particular, the recent plunge that occurred last Friday has established a minor Sign of Weakness (mSOW) zone. As a result, we can anticipate that the next move within the current pattern will involve a rise above the Buying Climax (BC) zone, which is expected to be between 29886 and 31015.

Now, if we shift our focus to the 4-hour timeframe and apply the same Wyckoff logic, we can identify a smaller accumulation pattern. According to this analysis, it is expected that the current price will undergo a retest of the Selling Climax (SC) zone, which is projected to be between 26308 and 25818. In some scenarios, the price might even drop as low as 25240 before starting to rise again. This ascent would align with the beginning of a new short-term bullish phase on the daily timeframe.

Ether (ETH)

Ignoring its inherent volatility, Ether is following a similar path to Bitcoin, implying that it is likely to undergo a retest of the range between 1777 and 1740 before it can start rising above the range of 2090 to 2140. For more detailed information, please refer to the analysis provided for Bitcoin, or you can stay updated on the latest technical analyses through our Daily News article.

Web3 Project Trend

The cryptocurrency market has witnessed a noteworthy recovery, led by three key categories: NFTs, BRC-20 tokens, and Layer 2 projects. Non-fungible tokens (NFTs) have experienced a substantial rebound, with a 6.3% increase, signaling renewed investor confidence. BRC-20 tokens, associated with the BRC concept, gained significant traction, surging by 27.7%. Layer 2 projects, on the other hand, showed promise with a 5.8% increase, suggesting increased risk appetite among traders.

NFTs, including tokens like MCRT, SWFTC, and WILD, have surged in value, reflecting a heightened interest and risk appetite among market participants. Similarly, BRC-20 tokens such as WHEE, PIZA, and OHMS have attracted significant attention, though caution is advised due to the narrative’s relative immaturity. Layer 2 projects, represented by CTSI, OP, and LAI, have shown positive signs of recovery, indicating traders’ growing willingness to take risks after a period of bearish market behavior.

The recovery in NFTs, BRC-20 tokens, and Layer 2 projects signifies the market’s evolving dynamics and investor sentiment. It is crucial for traders and investors to remain informed and exercise careful analysis when navigating the ever-changing cryptocurrency landscape. By closely monitoring these categories, market participants can seize potential opportunities and make well-informed investment decisions.