Crypto Market Weekly Report: ETH Leads the Rise, Meme Craze Continues

This week, the crypto market is overall performing well, with ETH and Meme coins standing out. The Federal Reserve's meeting minutes show that decision-makers are concerned about insufficient progress in the decline of inflation, suggesting that high interest rate policies may continue for a longer period. The dollar index fell weekly, while the three major U.S. stock indices reached historical highs, leading to a strong rebound in the crypto market.

Market Highlights

1. ETH rose nearly 30%, breaking through 3800 USD. The SEC has requested to expedite the update of the ETH ETF application documents, increasing the probability of approval from 25% to 75%.

2. The L2 project Zksync plans to airdrop in June, with a total token supply of 21 billion, and the market expects a market value to reach 10 billion USD.

3. The trading platform Metadrop will launch LISTA, which is a liquidity staking and decentralized stablecoin protocol.

4. BTC rebounds close to its historical high, institutional funds have seen net inflows for two consecutive weeks.

On-chain Data

• The number of long-term holders of BTC has decreased, while the number of short-term holders has increased, leading to a widening divergence in the market.
• The market capitalization of stablecoins remains stable, with a positive outlook for long-term funding.
• The MVRV-ZScore indicator is at 2.5, which is at a medium level.
• The futures funding rate has slightly risen, and the long leverage has increased.
• The BTC futures open interest has risen significantly, indicating that institutional funds are entering the market.

DeFi Data

• Total locked volume ( TVL ) reached 10.63 billion USD, weekly increase of 14%.
• ETH chain TVL rise 20%, TRON rise 3%, BSC rise 9%, Solana rise 7%.
• Arbitrum rise 18%, Blast rise 28%, Merlin暴增171%。
• Merchant Finance's TVL astonishingly rose by 41730% in the past week.

NFT Market

The overall performance of the NFT market is sluggish and has not benefited from the rise in ETH.

• BAYC fell 5%, CryptoPunks dropped 12%
• Pudgy Penguins and Azuki rise 10%
• Milady rise 27%, MAYC rise 6%
• DeGods fell by 29%

NFT trading volume continues to decline, and the number of buyers has not seen a significant rebound.

Overall, this week the crypto market shows a differentiated trend. ETH and its related ecosystem performed well, while the NFT market has yet to emerge from its trough. Institutional funds continue to flow in, which may bring new growth momentum to the market.