Market Observations
Decline in Primary Market Financing
The primary market remains pessimistic. According to RootData, in Q3 2024, Web3 primary market funding activities declined. There were 321 financing rounds, down 25.7% from the previous quarter, with total funding amounting to $2.406 billion, a 15% decrease from the prior quarter. Venture capital transaction activity (measured by monthly deal count) fell to the lowest in four years.
Security Incidents
The blockchain sector continues to face severe security challenges. According to Certik’s Q3 security report, there were 155 security incidents during this period, with total losses amounting to $753.09 million. Although the number of incidents decreased by 27 compared to Q2 2024, the total loss increased by 9.5%.
Industry Challenges
The issue of high token valuations and low initial circulation ratios has been a subject of intense debate since its introduction. Binance, in its latest industry observation report, again mentioned the problem of overvaluation in primary market projects. Additionally, the report highlighted that projects still have significant room for improvement in transparency, centralization, and token distribution during their operations.
Market Share of Centralized Exchanges
According to CCData, overall trading volume in the crypto sector in September fell to its lowest level since June. Last month, Binance’s combined market share for spot and derivatives trading dropped to its lowest level since September 2020.
Binance’s spot trading volume fell by nearly 23% from August, bringing its market share down to 27%, its lowest level since January 2021. The platform’s derivatives trading also decreased by 21%, accounting for 40.7% of the centralized exchange market share, the lowest since September 2020. Meanwhile, Crypto.com saw over a 40% increase in spot and derivatives trading volume month-over-month, and Bybit and Bitget also achieved positive growth.
Market Environment
BTC spot ETFs had a net inflow of $55.21 million last week, while ETH spot ETFs had a net outflow of $5.22 million. BTC prices rose 1% over the past week, while ETH prices increased by 1.4%, with the ETH/BTC exchange rate falling below 0.04. In Q3, BTC spot prices fluctuated between $58,000 and $66,000, and BTC’s market dominance reached 56.58%, maintaining a mid-level range.
The TVL (Total Value Locked) of the SUI and APTOS ecosystems grew significantly in the past month, both reaching record highs. Originating from the Diem blockchain project launched by Meta (formerly Facebook), SUI and APTOS have been hyped as “Solana killers” in the market. Over the past month, SUI’s TVL has increased by 46.98%, while APTOS’s TVL rose by 46.97%. In terms of token-denominated metrics, SUI has experienced net outflows since September, whereas APTOS has maintained a consistent net inflow. It is important to note that both SUI and APTOS are currently in a phase where early investors are unlocking large amounts of tokens at a rapid pace, as indicated by their respective tokenomics.
Trending Topics
Airdrop Sector: No More Opportunities in Airdrops? Scroll Airdrop Rules Spark Dissatisfaction
The prominent Layer2 project Scroll announced its launch on Binance Launchpool, allocating 5.5% of its tokens. 7% of the tokens are for airdrops to users, which will be distributed on October 22. Users expressed dissatisfaction mainly for two reasons: 1) The airdrop ratio is considered unreasonable; 2) The airdrop timing allows “whales” to dominate the shares that should go to regular users.
Meme Sector: Zoo Concepts, U.S. Election Themes, and Elon Musk's Mars City Ideas Leading Meme Coin Development
Thanks to the market’s dissatisfaction with VC tokens, MEME tokens have been gaining popularity due to their low initial market capitalization and fair issuance. Concept tokens related to zoo themes, U.S. elections, and Musk’s Mars City have received significant attention.
HBO Documentary: Money Electric: The Bitcoin Mystery
HBO released a documentary titled Money Electric: The Bitcoin Mystery, suggesting that Satoshi Nakamoto might be Peter Todd. Todd, however, denied the allegation.
FTX Bankruptcy Compensation Plan Approved
The U.S. Bankruptcy Court for the District of Delaware has confirmed FTX’s restructuring plan. According to the information disclosed, since filing for bankruptcy, FTX has recovered assets worth between $14.5 billion and $16.3 billion, which are ready to be distributed. A portion of the funds is expected to return to the crypto market, potentially contributing to market growth.
FTX filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code, a reorganization-type bankruptcy that allows businesses to continue operating while restructuring their debts under court supervision, thus offering potential for a successful recovery.
Eigenlayer Hack Raises Controversy
On-chain data analysis team Lookonchain detected a wallet selling 1.67 million EIGEN tokens through MetaMask at a price of $3.30. These tokens were reportedly received from the EigenLayer team wallet. EigenLayer responded, stating that the hack occurred when an investor’s email about transferring vested tokens to a custodial address was intercepted.
Early token recipients during TGE have sparked concerns about insider trading, with multiple key opinion leaders questioning EigenLayer’s token unlocking practices and investor fairness.
