CMC Market Pulse delivers actionable market insights, giving you all the key narratives and developments you need in under 5 minutes.
Market Overview 📈
The cryptocurrency market witnessed a dramatic rally this week, with many cryptocurrencies breaking out of their long-term downtrends after posting strong returns.
This was largely driven by the Fed’s rate cut decision last week as well as Kamala Harris’ pledge to support the crypto industry in the US.
Bitcoin (BTC) is up 2.3% this week, whereas Ethereum (ETH) is tacked on another 3.6% — possibly ending a six-month-long downtrend.
Daily liquidations are still hovering around the $100 million range alongside an uptick in volatility. Longs are currently suffering slightly more than shorts despite the positive price action. Funding rates on BTC and ETH are now at 8.5% and 9.8% respectively — down slightly from last week but still highly elevated.
📌Visa enters the tokenized asset space with VTAP — a platform that allows banks to launch fiat-based tokens, tokenized commodities and more on the Ethereum blockchain. - Link
📌Visa enters the tokenized asset space with VTAP — a platform that allows banks to launch fiat-based tokens, tokenized commodities and more on the Ethereum blockchain. - Link
📌Asia-based cryptocurrency exchange BingX was hacked. Over $26 million worth of various altcoins were exfiltrated from its hot wallets. - Link
Why does it matter?
The last few months have been a turbulent time for the crypto industry, with many speculators beginning to wonder whether the previously suspected bull run was just a mirage.
But with further rate cuts on the horizon, upcoming elections, and seasonality now favoring the bulls, the market appears to be on track.
This is reflected in the growth of TOTAL3, which is up 7.3% in the last week, while BTC itself tacked on 3% over the same period — as Bitcoin dominance weakened to 53.2%.
Several altcoins significantly outperformed the market including Bittensor (TAO), Sui (SUI) and Sei (SEI), highlighting a focus on newer layer 1s.
Meanwhile, as major TradFi players like Visa and Paypal redouble their crypto ambitions, there’s reason to believe that further retail onramps are on the way.
Narrative of the Week 📰
📌Vice president Kamala Harris pledges to “encourage innovative technologies like AI and digital assets” and make the US dominant in blockchain if elected in November. - Link
📌In a recent report, ETF and mutual fund manager, VanEck, made the case that a Trump presidency would grow the crypto industry as a whole, whereas a Harris presidency would be more bullish for Bitcoin. - Link
📌Donald Trump became the first US president in history to make a Bitcoin payment, after paying a bar tab at an establishment in New York using the lightning network. - Link
Why does it matter?
Both Harris and Trump have now shown clear support for crypto: Harris emphasizes Bitcoin growth and innovation, while Trump promotes broader industry adoption. Their policies could drive mainstream acceptance and strengthen the U.S. position in blockchain.
This has been reflected in the growth of PolitiFi token landscape, with major PolitiFi memecoins like ConstitutionDAO (PEOPLE), MAGA (TRUMP) and Kamala Horris (KAMA) tacking on 19.2%, 24% and 25.8% respectively in the last week.
Major Project Updates 🗓️
📌Decentralized AI network, Bittensor, achieves distributed training breakthrough thanks to a collaboration between Macrocosmos, Manifold and researchers. The platform is also gearing up for EVM smart contract support. - Link
📌Purpose-built RWA chain, MANTRA, is set to conduct its mainnet launch in October 2024. The platform aims to become the "preferred ledger of record for real-world assets". - Link
📌Cardano founding entity Emurgo to support the launch of Kinka Gold, the first gold-backed token on Cardano, built by a publicly-listed Japanese neofinance company. - Link
📌Telegram-based clicker game Hamster Kombat has revealed its 2025 roadmap. Recently added include the launch of 2 new game titles, integration of real money trading in games, and the second phase of the $HMSTR airdrop. - Link
Why does it matter?
Sector frontrunners Bittensor (AI sector) and MANTRA (RWA sector) are starting to deliver on early promises, indicating they’re not just vaporware.
Meanwhile, the Cardano ecosystem is beginning to flesh out with its first gold-backed stablecoin while its TVL swells 14% in September.
DeFi Brief 🏦
📌Bitcoin smart contract L2 network, Stacks, is gearing up for a hard fork on October 9, 2024. The Nakamoto upgrade will enhance Bitcoin's DeFi capabilities and dramatically improve settlement times. - Link
📌Bitcoin-secured BTCfi blockchain, Core, has seen a marked recovery in TVL following a crash in early September. The platform recently reached an ATH TVL of $429 million — largely thanks to the growth of the Colend Protocol. - Link
📌Ethena set to launch a new stablecoin backed by BlackRock's tokenized BUIDL fund. The token, known as UStb, will be deployed on Ethereum and will help simplify access to BlackRock’s fund. - Link
Why does it matter?
All eyes are on Bitcoin DeFi in September.
Despite being regularly lambasted for its limited smart contract functionality, a range of DeFi-centric Bitcoin L2s are beginning to make the platform more competitive more newer smart contract platforms.
Meme Coins 🚀
📌Popcat (POPCAT) is currently the best-performing large-cap meme coin, gaining 14% in the last 7 days and breaking the $1 billion market cap barrier for the first time. - Link
📌Following its listing on Binance, The Neiro (NEIRO) meme coin became one of the best-performing tokens in recent weeks. It’s now up 2,800%+ in under 2 week. - Link
Fundraises 💰
📌Interwoven rollup network, Initia, raises $14 million at a $350 million valuation in a round led by Theory VC with participation from Delphi Ventures and Hack VC. - Link
📌DePIN internet-bandwidth network, Grass, raises an undisclosed sum in a Series A funding round led by Hack VC with participation from Polychain Capital and Delphi Ventures. - Link
📌Decentralized biobank project AminoChain conducts $5 million seed funding round led by a16z. Notably, AminoChain is a16z's first DeSci investment. - Link
📌Celestia, the modular data availability layer, secures a further $100 million in funding in Bain Capital Crypto-led funding round. - Link
Airdrops Abound 🎁
📌 LayerZero, a chain-agnostic interoperability protocol, has ended the claim for its Season 1 airdrop. Unclaimed tokens will be redistributed to earlier claimers via a redistribution airdrop. - Link
📌Telegram-based crypto game, Hamster Kombat, has banned over 2.3 million cheaters ahead of the $HMSTR airdrop. - Link
📌Telegram-based AI "SuperApp", NotAI, completes token listing following airdrop. $NOTAI is now available to trade on KuCoin, Gate and MEXC. - Link
📌Ethereum restaking solution, EigenLayer, announces its airdrop season 2 and plans to enable EIGEN trading on September 30, 2024. - Link
Tweet of the Week 📝
Source: @vohvohh
https://x.com/vohvohh/status/1837095112125329819
https://x.com/vohvohh/status/1837095112125329819
