TL;DR

• BTC experienced minor price fluctuations, with the secondary trading market remaining relatively calm.
• Tokens within the TRON ecosystem demonstrated strong performance, particularly TRX and SUN.
• AAVE introduced a revenue-sharing mechanism to enhance the utility of its token.
• The Fear and Greed Index remained low, while Ethereum contract long positions dominated.
• As of 4:00 AM (UTC+0) on August 21, the total net inflow for U.S. Bitcoin spot ETFs yesterday was $88.06 million, with the total net asset value accounting for 4.63% of Bitcoin’s market capitalization. Meanwhile, U.S. Ethereum spot ETFs saw a total net outflow of $6.49 million, with the total net asset value accounting for 2.33% of Ethereum’s market capitalization.
• Over the past 24 hours, crypto market funding primarily focused on infrastructure, AI, and privacy-related sectors.
• Gate Ventures, in partnership with the Abu Dhabi Blockchain Center, launched a $100 million fund named Falcon Gate Ventures.

Market Analysis

Based on Gate.io, as of 00:00 (UTC+0) on August 21:

• BTC —— Over the past 24 hours, the price of BTC dropped by 0.69%, settling around $59,104 as of 00:00 (UTC+0) on August 21. Within this period, BTC reached a high of $61,392 and a low of $58,531. After briefly dipping below the 4-hour EMA21 moving average ($59,320), Bitcoin’s price quickly rebounded, oscillating within the $58,700 to $59,500 range during the day[1].
• ETH —— The price of ETH fell by 2.40% over the past 24 hours, with the price around $2,574.24 as of 00:00 (UTC+0) on August 21. During this time, ETH reached a high of $2,695 and a low of $2,555. After briefly dipping below $2,560, Ethereum’s price quickly rebounded, fluctuating within the $2,550 to $2,600 range during the day. The short-term support level is currently at $2,500[2].
• ETF —— According to SoSoValue data, as of 04:00 (UTC+0) on August 21, the net inflow for U.S. Bitcoin spot ETFs yesterday was $88.06 million, with the total net asset value accounting for 4.63% of Bitcoin’s market capitalization[3]. Meanwhile, U.S. Ethereum spot ETFs saw a net outflow of $6.49 million, with the total net asset value accounting for 2.33% of Ethereum’s market capitalization[4].
• Fear and Greed Index —— The Fear and Greed Index dropped to 26, indicating a pessimistic sentiment among market investors. The market remains volatile at low levels, with no clear trend in sight [5].

Top Performers

Based on Gate.io, considering the trading volume and price performance over the past 24 hours, as of 04:00 (UTC+0) on August 21, the following altcoins have shown remarkable performance:

SUN —— SUN has demonstrated exceptional market performance, with a daily gain of 34.09%. Its total market capitalization stands at $149 million, with a 24-hour trading volume on Gate.io of $15.4352 million. SUN is the native governance token of SUN.io, a DeFi platform on Tron. On August 13, SUN.io launched the beta version of its meme fair-launch platform, Sun Pump, which has attracted significant market attention. As of August 20, Sun Pump has generated $800,000 in revenue for SUN.io. On August 16, Justin Sun announced that all protocol revenue from Sun Pump would be used for the buyback and sale of SUN tokens, which may have sparked increased investor interest[6].

TRX —— The market performance of the TRX has been impressive. As one of the top 20 cryptocurrencies by market capitalization, TRX surged 11.23% in a day, reaching its highest price level since June 2021. Its market cap swelled to $13.819 billion, with Gate.io seeing $22.5958 million in 24-hour trading volume. TRX is the native token of Tron, used as Gas for Tron network transactions. Tron provides the on-chain USDT-TRC20 channel for transfers and transactions, and due to its fast processing speed and low costs, it has become the blockchain with the highest on-chain USDT usage, accounting for approximately 50% of the total USDT issuance. Since the launch of Sun Pump, the first meme fair-launch and trading platform on Tron in August, on-chain meme trading activities have surged. Sun Pump, Tron’s answer to Pump.fun, has seen several tokens on the platform surpass a market capitalization of $1 million. The pursuit of short-term substantial returns on a new blockchain may have motivated investors to buy TRX. Additionally, the $10 million Meme Ecosystem Incentive Program by Sun Pump and Tron, along with promotions offering up to a 99% gas fee discount and TRX airdrop rewards, has attracted MEME users outside the Tron network to switch to Tron for meme trading, likely further boosting investor demand for TRX [7].

AAVE —— AAVE experienced a daily gain of 5.33%, with a total market capitalization of $1.967 billion and a 24-hour trading volume of $9.6394 million on Gate.io. As a leading on-chain lending protocol, AAVE’s Total Value Locked (TVL) reached $11.42 billion as of 00:00 (UTC+0) on the 21st, significantly higher than the $6.91 billion TVL of its peer lending protocol, Maker. On August 3rd, AAVE passed a temperature check for the AAVEnomics Update proposal, which aims to overhaul AAVE’s tokenomics by introducing a revenue-sharing mechanism to enhance the token’s utility. Additionally, the number of active on-chain addresses for AAVE increased significantly this month, likely due to its strong performance during the global risk asset market downturn earlier in August. As a lending protocol, AAVE earned liquidation fees when loans were repaid, showcasing its resilience in revenue generation. During periods of market pessimism, lending protocols like AAVE have the capability to help investors hedge against market volatility, potentially further bolstering investor interest in AAVE[8].

Data Highlights

The BTC Buy/Sell Ratio
As of 04:00 (UTC+0) on August 21, Coinglass data shows that the total liquidation volume of contracts across the network in the past 24 hours was approximately $116 million, with long contract liquidations exceeding $78 million. The Bitcoin buy/sell ratio was around 0.94, indicating that market participants are relatively pessimistic about Bitcoin’s short-term price movements[9].

Contract Long/Short Ratio
According to Coinglass data, as of 04:00 (UTC+0) on August 21, the weighted funding rate for Bitcoin positions was -0.0030%[10], and for Ethereum positions, it was -0.0028%[11].

Over the past 24 hours, the overall long/short ratio for Bitcoin contracts has been balanced, while the long/short ratio for Ethereum contracts has been predominantly long[12].

Ethereum ETF Net Outflows Exceed $440 Million
In its first month of trading, Ethereum spot ETFs have reached a total net asset value of $7.3 billion, according to SoSoValue data, with a net asset ratio (the proportion of market value to Ethereum’s total market capitalization) of 2.32%. The top three ETFs by market size are ETHE ($4.48 billion, 1.54% of Ethereum’s market cap), ETF ETH ($950 million, 0.3%), and ETHA ($840 million, 0.27%). As of 00:00 (UTC+0) on August 21, cumulative net outflows from these Ethereum spot ETFs have exceeded $440 million[13].

According to CoinGecko data, as of 00:00 (UTC+0) on August 21, ETH’s price has fallen by approximately 36.7% from its peak this year[14], bringing it back to levels seen in early February. This decline reflects a lackluster price performance amid weak capital inflows. The ability to regain and sustain investor interest in the coming months will be crucial. Additionally, broader macroeconomic factors, including the possibility of interest rate cuts by the Federal Reserve, will significantly impact the capital flows and market dynamics of both Ethereum and Bitcoin ETFs.

Spotlight Analysis

Gate Ventures and Abu Dhabi Blockchain Center Partner to Launch $100 Million Falcon Gate Ventures Fund
On August 19, Gate Ventures, the venture capital arm of Gate.io, partnered with Abu Dhabi, a global Web3 technology hub, to launch the Falcon Gate Ventures fund. The $100 million Initiative aims to spur innovation in the Web3 technology sector, particularly in the development of decentralized infrastructure and applications. The fund will prioritize technological innovation projects in key regions such as the Middle East, Asia, and the United States, while backing promising entrepreneurs and blockchain technologies globally. The goal is to nurture Web3 entrepreneurs with a global perspective and propel the future of digital assets and blockchain technology.

The establishment of the Falcon Gate Ventures fund not only aligns with the UAE’s vision of becoming a global hub for the digital economy but also aims to attract international talent and collaborate with regulatory bodies to create an innovative and secure regulatory framework. This initiative is expected to foster the growth of the global Web3 ecosystem. Additionally, the fund’s vision includes integrating resources to support education, research, and cross-border collaboration, driving technological advancement and economic growth. This signals the dawn of a global era of disruptive innovation,poised to have a profound impact worldwide[15].

Gate Ventures, the venture capital arm of Gate.io, focuses on investments in decentralized infrastructure, ecosystems, and applications, while also providing support to its portfolio companies in areas such as product development, operational expansion, and global growth. As a pioneer in the blockchain and digital asset industry, the Abu Dhabi Blockchain Center is dedicated to advancing blockchain education, research, and innovation, playing a crucial role in shaping the blockchain landscape in the UAE and globally. Falcon Gate Ventures represents a significant step by Gate.io in promoting global blockchain innovation.

Tether Treasury Mints 2 Billion USDT on Tron and Ethereum Chains
According to Tronscan data, on August 20, Tether Treasury minted a total of 2 billion USDT, split evenly between the Tron and Ethereum chains. These tokens have been authorized but not yet issued, primarily intended for the next phase of USDT reserves. Additionally, on August 19, Tether revealed plans to launch USDT on the Aptos network, which is expected to enhance liquidity on the Aptos network and support the growth of its ecosystem[16].

According to statistics, Tether Treasury has minted a total of 34 billion USDT over the past year, with 19 billion USDT minted on the Tron network and 15 billion USDT on the Ethereum mainnet. This week, Bitcoin ETFs have continued to see net inflows, indicating strong institutional interest. The inflow of off-exchange funds has driven the demand for stablecoin issuance, leading to a 1.2% overall increase in stablecoin market capitalization over the past seven days, with USDT holding approximately a 70% market share. The newly minted USDT reflects changes in market liquidity.

TRON Powers Rapid Growth of Sun Pump
On August 15, TRON and Sun Pump announced the launch of a $10 million Meme Ecosystem Incentive Program aimed at driving the development and market expansion of the Sun Pump ecosystem. According to Dune data, as of 01:00 (UTC+0) on August 20, the Sun Pump platform had created 14,597 tokens, generating a total revenue of 5.37 million $TRX. .Its market cap swelled to $13.819 billion, with Gate.io seeing $22.5958 million in 24-hour trading volume[17].

Key Factors Driving Sun Pump’s Rapid Growth:

1. TRON Platform Advantage: Sun Pump leverages TRON’s blockchain, which supports fast transaction processing at extremely low costs, making it ideal for memecoin trading. Additionally, TRON holds about 50% of the total USDT issuance, ensuring ample liquidity.
2. First-Mover Advantage: Sun Pump is the first memecoin fair-launch and trading platform on TRON. Previously, participation in memecoin MEV (Maximal Extractable Value) activities on TRON was limited, and there were fewer trading bots, giving Sun Pump a unique advantage.
3. Strong Ecosystem Support: TRON’s marketing and financial backing propelled Sun Pump’s market expansion. Sun Pump’s 99% gas fee reduction promotion effectively attracted meme enthusiasts to the TRON ecosystem. Additionally, the $10 million meme ecosystem incentive program jointly launched by TRON and Sun Pump, along with Sun Pump’s partnership with HTX Futures for meme ecosystem and listing collaboration, further increased the platform’s appeal.
4. Bonding Curve Pricing Model: Sun Pump utilizes a bonding curve pricing model, which dynamically adjusts token prices based on supply to prevent market manipulation. Additionally, it implements a token burning mechanism when a memecoin’s market cap meets specific criteria, helping to preserve token value.
   However, it is important to note that Sun Pump is still in its early stages. While short-term incentives and promotional activities have attracted many users, the platform’s long-term sustainability and popularity remain to be proven.

Elon Musk’s Post on D.O.G.E. (Department of Government Efficiency) Causes Meme Coin Market Surge
On August 20, Elon Musk made two posts on the X platform, humorously suggesting his willingness to serve in the U.S. Department of Government Efficiency (D.O.G.E.)[18]. The abbreviation D.O.G.E. triggered a market response, causing the price of DOGE surged past $0.10, reaching $0.10484 by 06:00 (UTC+0) on August 20, with a 24-hour increase of over 3.8%. Additionally, a meme coin with the same name on Ethereum briefly achieved a market cap of $2.5 million, while a similar token on Solana reached a peak market cap of $1 million[19].

Musk has become a significant influencer in the meme token market, with his actions and statements quickly triggering market reactions. However, this celebrity influence is a double-edged sword. While it can lead to substantial short-term price increases for related tokens, it also heightens market volatility and investment risk. Investors should approach this with caution.

Funding News

According to RootData, on August 20, 2024, the blockchain and Web3 sectors saw four significant funding rounds, three of which were seed rounds, each raising over $4 million. These funding rounds involved areas such as infrastructure, artificial intelligence, and privacy. The specific details of the financing are as follows[20]:

GenLayer —— GenLayer, a decentralized artificial intelligence network, has successfully raised $7.5 million in a seed funding round led by North Island Ventures. Other participants include Node Capital, Arrington Capital, ZK Ventures, WAGMI Ventures, BlockBuilders, and Arthur Hayes’ family office, Maelstrom, along with several angel investors. GenLayer aims to design AI smart contracts that leverage large language models connected via the internet, enabling smart contracts to autonomously make complex decisions and access real-time data. Additionally, GenLayer integrates AI into its custom Delegated Proof-of-Stake (DPoS) algorithm[21].

zkMe —— zkMe, a decentralized Web3 credential network, has completed a $4 million seed funding round led by Multicoin Capital, with participation from OKX Ventures and Robot Ventures. The fresh capital will be used to optimize its zero-knowledge identity protocol and infrastructure, aiming to launch a complete privacy identity layer network by Q4 2024. The project leverages cryptographic technology to provide decentralized compliance services that meet FATF standards, offering a comprehensive credential verification solution for the Web3 industry in anticipation of the upcoming EU MiCA regulations. zkMe’s core advantage lies in giving users autonomous control over their identity credentials, striking a balance between regulatory compliance and user privacy protection[23].

Airdrop Opportunities

DIN —— DIN, a modular AI-native data preprocessing layer, is focused on building a data intelligence network that allows individuals to process data for AI and earn rewards. DIN initially raised $4 million on July 5, 2023, in a round led by Binance Labs, with participation from Hashkey Capital. On August 20, DIN secured an additional $4 million in funding, with Manta and other institutions participating, bringing its total funding to $8 million.

DIN is scheduled to conduct its Token Generation Event (TGE) in the third quarter of 2024 and initiated the sale of Chipper nodes on August 13. As a core component of the DIN ecosystem, Chipper nodes play a crucial role in data verification, vectorization, and providing the computational power necessary for generating the $DIN token. Within the DIN ecosystem, xData functions as the AI data node infrastructure, enabling users to collect and label raw AI data to earn $Wafer points. Through Chipper nodes, users can convert $Wafer points into $xDIN points, which is key to participating in the $DIN token airdrop. According to official sources, 25% of the $DIN token supply will be allocated to Chipper nodes, with 50% of these tokens unlocking within the first year. The earlier a node becomes operational, the more $xDIN rewards can be mined. Additionally, there will be further $DIN token airdrops prior to the TGE. Users who choose not to purchase Chipper nodes can still earn $Wafer points by installing the DIN plugin and participate in future airdrops, though the number of tokens they receive will be significantly less than what Chipper node holders earn.

Chipper Node Sales to Proceed in Four Phases:

• Phase 1: Pre-Sale Round - This round is open to eligible xData Chip NFT holders and select community contributors, allowing them to claim a Level 1 node for free. It began on August 13 at 08:00 (UTC+0).
• Phase 2: Whitelist Sale Round - This phase includes the sale of Level 2 Chipper nodes and a giveaway event for Level 2 nodes, starting on August 20 at 08:00 (UTC+0).
• Phase 3: Public Sale Round 1 - This round involves the sale of Level 3 to Level 5 Chipper nodes, starting on August 22 at 08:00 (UTC+0). It is open to users worldwide.
• Phase 4: Public Sale Round 2 - This final round includes the sale of Level 6 to Level 10 Chipper nodes, beginning on August 29 at 08:00 (UTC+0), also open to global users.
  The sale prices for each node level are displayed in the accompanying chart, allowing users to consider cost-benefit ratios based on pre-sale results before participating[24].

Reference：

1. Gate.io, https://www.gate.io/price/bitcoin-btc
2. Gate.io, https://www.gate.io/price/ethereum-eth
3. SoSoValue, https://sosovalue.com/assets/etf/us-btc-spot
4. SoSoValue, https://sosovalue.com/assets/etf/us-eth-spot
5. Gate.io, https://www.gate.io/zh/bigdata/homeindex
6. Gate.io, https://www.gate.io/price/sun-sun
7. Gate.io, https://www.gate.io/price/tron-trx
8. Gate.io, https://www.gate.io/price/aave-aave
9. CryptoQuant, https://cryptoquant.com
10. CoinGlass, https://www.coinglass.com/zh/pro/AvgFunding/BTC
11. CoinGlass, https://www.coinglass.com/zh/pro/AvgFunding/ETH
12. CoinGlass, https://www.coinglass.com/LongShortRatio
13. SoSoValue,https://sosovalue.xyz
14. CoinGecko, https://www.coingecko.com/en/coins/ethereum
15. Gate.io, https://www.gate.io
16. TRONSCAN, https://tronscan.org
17. DefiLlama, https://defillama.com/stablecoins
18. X, https://x.com/elonmusk/status/1825723913051000851
19. CoinMarketCap, https://coinmarketcap.com
20. Rootdata, https://www.rootdata.com/zh/Fundraising
21. X，https://x.com/GenLayer/status/1825570816828019046
22. Corn，https://decrypt.co/245433/corn-bitcoin-defi-layer-2
23. X，https://x.com/zkme_/status/1825902666402377831
24. X，https://dinlol.medium.com

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