Gryphsis Cryptocurrency Weekly: Bitcoin Sees Largest Monthly Increase in Three Years
Bitcoin (BTC) is on track for its strongest monthly close since December 2020. Even with prices nearing all-time highs, analysts say this bull market is far from peaking.Market and Industry Snapshot
Layer 2 Overview:
Last week, Layer 2 showed positive growth, with Starknet experiencing the most significant increase of 15.67%. Protocols like JOJO, VaultCraft, Basemax, XY Finance, and Nostra demonstrated notable TVL growth rates.
LSD Sector Overview:
In the LSD sector, both Ethereum deposits and total withdrawals increased, with withdrawals showing a more pronounced rise of 2.88%. In terms of market share, all blue-chip LSDs saw significant increases, with wstETH experiencing the most notable growth of 16.28%.
RWA Sector Overview:
Last week, the market capitalization of global real-world assets grew by 13.85%, and the 24-hour trading volume increased by 43.93%. RWA tokenized treasuries rose by 1.6%, while the value of tokenized U.S. Treasuries increased by 0.08%. Notable growth tokens include $DEXTF, $LMR, and $BST, while tokens like $BRTR, $LNDX, and $SOB experienced significant losses.
Main Topics
Macroeconomic Overview:
- US Stock V.S. Crypto
Major Events This Week:
- Bitcoin experiences the largest monthly gain in three years
Weekly Protocol Recommendation:
- OpSec
Weekly VC Investment Focus:
- Octav (4M)
- BounceBit (6M)
- READYgg (4M)
Twitter Alpha:
- @Hercules_Defi on AI+DePIN
- @MoonKing___ on Aark
- @zerokn0wledge_ on Modular
- @stacy_muur on Gearbox Protocol
- @DeRonin_ on TON
Macroeconomic Overview
This week, the stock market saw the SPX and NASDAQ rise by 1.33% and 2.06%, respectively. In the coming week, keep an eye on significant events such as the S&P Global Services PMI, ISM Non-Manufacturing PMI, Spring Forecast Report, ADP Non-Farm Employment Change, and the Bank of Canada's interest rate decision.
Major Events This Week
Bitcoin experiences the largest monthly gain in three years
Bitcoin (BTC) is on track for its strongest monthly close since December 2020. Even as prices approach historical highs, analysts say this bull market is far from peaking. The largest cryptocurrency by market capitalization surged an astonishing 44% in February, breaking through $50,000 and $60,000 for the first time in years, reaching a high of $64,000 on Wednesday. This surge followed a sell-off after the debut of the U.S. spot Bitcoin exchange-traded fund (ETF) at the end of January, which saw prices dip below $40,000.
Bitcoin is poised to reach its highest month-end price ever. To achieve this, it needs to exceed $61,357 before midnight UTC, which is the closing price from October 2021, close to the peak of the last market cycle. As of the time of writing, BTC is trading at around $61,200.
In February, cryptocurrencies in the CoinDesk 20 Index (CD20) grew by over 40%. The governance token (UNI) of the decentralized exchange Uniswap, the FIL of the decentralized data storage network Filecoin, and the popular meme token Dogecoin (DOGE) were among the best performers in CD20, surpassing BTC's gains.
While Bitcoin's price is nearing historical highs, some analysts remain optimistic about further increases.
"We haven't even begun to touch the heights this could reach," said Alex Thorn, head of research at Galaxy, in a market analysis posted on X (formerly Twitter) on Thursday. He believes the U.S. spot Bitcoin ETF is a "game changer," providing stable—and recently accelerating—demand for BTC. Meanwhile, about 75% of Bitcoin's supply is held by long-term holders who have not been willing to sell at recent price levels.
Analysts at IntoTheBlock noted that on-chain transaction volume on the Bitcoin network and retail interest in crypto remain far below previous peak levels. "Ongoing buying pressure and strong bullish signals from oscillators and moving averages indicate that BTC is preparing to continue its upward momentum," analysts at Swissblock said in a report on Thursday.
Weekly Protocol Recommendation
Welcome to our weekly protocol segment—where we highlight protocols making waves in the crypto space. This week, we chose OpSec, a decentralized physical infrastructure network (DePIN) cloud computing platform leveraging AI technology.
Traditional internet infrastructure is often controlled, censored, or even manipulated by centralized entities/companies/providers, infringing on users' internet freedom. To address the dangers posed by such centralized server networks, OpSec utilizes blockchain technology and artificial intelligence to provide a secure, efficient, and decentralized cloud computing platform.
Currently, OpSec offers the following solutions to help Web3 users and developers provide a friendly cloud service experience:
- OpSec Cloudverse: Comprising three main components: Nodes, VPS, and GPU. Nodes allow users to deploy and manage nodes, promoting network security and decentralization; VPS serves as a foundational tool for node operations and computations; OpSec provides a more decentralized GPU solution.
- OpSec Network: OpSec's Layer 1 Network combines the powerful capabilities of AI and modular architecture to enhance scalability, security, and flexibility. Utilizing POS and POC (proof of cloud) mechanisms, it establishes cloud proof consensus based on cloud resource processing power/storage/bandwidth, thereby reducing OpSec's development costs while enhancing network security.
- CloudSec: CloudSec is an advanced routing device that leverages a robust decentralized network architecture to improve online privacy and security. By routing data across multiple nodes and employing onion routing, CloudSec supports anonymous communication over public networks, making it difficult for attackers to trace the source and destination of data.
Source: Official Website
Among them, OpSec Cloudverse proposes a fundamental solution to existing blockchain infrastructure. Current blockchain infrastructure nodes are hosted on centralized cloud services like AWS and Google Cloud Platform. If they maliciously shut down nodes or attempt to control the network through malicious actions, the blockchain could face significant dangers.
Cloudverse addresses the issues of node dependency and insecurity by building on globally distributed cloud services, enabling automated node management and deployment. OpSec has already established connections with numerous blockchain networks, including Bittensor, Venom, Taiko, Optimism, Celestia, Avail, Base, Zora, Shardeum, Starknet, Fuel, Linea, Eigenlayer, Berachain, and many other public chains, putting node control in their own hands.
OpSec's native token $OPSEC will be launched on Ethereum, with a total supply cap of 100M, primarily used for network staking under the POS mechanism, executing transactions/deploying contracts to pay fees, node operation rewards, governance voting rights, etc.
As a decentralized physical infrastructure network provider, OpSec utilizes cutting-edge artificial intelligence technology to build, maintain, and operate blockchain infrastructure, ensuring the security and privacy of blockchain applications.
Our Insights
OpSec is currently a hot narrative in the AI+DePIN space, with DePIN having a market cap of $23B and a total trading volume of $1.9B. It has seen significant growth recently. According to the Messari data platform's predictions, the DePIN industry is expected to reach $3.5 trillion in the next four years, suggesting nearly 135 times growth potential in this field.
Source: CoinGecko
Why can AI combine with DePIN? DePIN can provide decentralized storage and computing resources, which are crucial for AI models that require substantial computational power. Decentralized nodes can offer hardware storage, computing power, GPU, or training data, earning rewards in a process similar to Bitcoin mining, while AI can leverage this for efficient deployment and computation; conversely, AI can intelligently manage the resources of the DePIN network, optimizing resource allocation and automatically executing complex operations like network monitoring and maintenance, thereby enhancing network efficiency.
Currently, there are many projects under the AI+DePIN narrative, such as Flux, Node AI, EMC Protocol, etc., which fundamentally still rely on DePIN while focusing on the business expansion of physical infrastructure. As a cloud computing service, OpSec's business direction naturally leans towards the B-end, focusing on how to extend decentralized node services to more infrastructure projects, such as Layer 1 public chains.
Source: Documentation
Currently, OpSec has already launched on networks like Taiko, Linea, Zora, Optimism, Starknet, Celestia, and many more partners are preparing to go live, indicating that OpSec has made certain achievements in business expansion. Recently, OpSec has collaborated with Commune AI and Dmail Network to launch the V2 test version and sponsored the Eth Denver conference, demonstrating that the project team is continuously expanding its market influence.
In summary, OpSec provides a secure, efficient, and decentralized cloud computing platform capable of hosting and running blockchain applications, offering various utilities to enhance the functionality and usability of Web3, while leveraging AI to optimize the platform's performance, security, and privacy, providing innovative solutions for Web3 users, developers, and builders.
Weekly VC Investment Focus
Welcome to our weekly investment focus, where we reveal the most significant venture capital dynamics in the crypto space. Each week, we will highlight the protocols that have received the most funding.
Octav
Octav is a free, anonymous, and editable data analysis platform that helps decode decentralized finance (DeFi) investment activities. Get comprehensive DeFi portfolio information, such as cost basis, profit and loss (P&L), etc.
https://x.com/OctavFi/status/1762861271811256542?s=20
BounceBit
BounceBit is a native BTC staking chain that secures through staking Bitcoin and BounceBit tokens. BounceBit is supported by CEFFU (formerly Binance Custody) and Mainnet Digital for secure Bitcoin storage. The PoS mechanism introduces a dual-token staking system that leverages the native BTC security with full EVM compatibility.
https://x.com/bounce_bit/status/1762874894520656120?s=20
READYgg
@TheReadyGames builds social gaming infrastructure for the Web3 creator economy. It is creating mobile-first Web3 tools and technologies to democratize game creation. RGN is coordinating the economic interests of developers, creators, and players to create a sustainable, long-term distributed gaming ecosystem and creator economy.
https://x.com/CryptoDiffer/status/1763182635109503225?s=20
Protocol Events
Worldcoin token drops 5% amid Elon Musk's lawsuit against OpenAI
Delta upgrade results in fee reduction on Optimism ecosystem chains
StarkWare announces new open source zero knowledge prover Stwo
SynFutures launches V3 on Blast mainnet and unveils points program; plans token launch this year
Robinhood Wallet integrates Arbitrum for token swaps
Industry Updates
Nigeria reportedly demands $10 billion from Binance in damages: BBC
BlackRock 's IBIT spot bitcoin ETF crosses $10 billion in AUM
BIS issues regulatory recommendations for global stablecoin arrangements
Decentralized lending TVL surges to over $30 billion for the first time since mid-2022
Eight state AGs in US challenge SEC's authority in Kraken lawsuit with joint amicus brief
Twitter Alpha
There is a lot of Alpha contained in crypto Twitter, but navigating through thousands of Twitter threads can be challenging. Each week, we spend several hours researching to curate insightful threads and present you with a weekly selection. Let's dive in!
https://x.com/Hercules_Defi/status/1762854213602988055?s=20
https://x.com/MoonKing___/status/1763555813145100457?s=20
https://x.com/zerokn0wledge_/status/1763283888783462713?s=20
https://x.com/stacy_muur/status/1763595829032394845?s=20
https://x.com/DeRonin_/status/1763584337038004699?s=20
Upcoming Events Next Week
News Sources
https://www.theblock.co/post/280139/binance-10b-usd-fine-nigeria
https://www.theblock.co/post/280124/worldcoin-token-elon-musk-openai-lawsuit
https://www.theblock.co/post/279943/robinhood-wallet-arbitrum-token-swaps
https://www.theblock.co/post/280013/synfutures-v3-blast-mainnet-points-program-token
https://www.theblock.co/post/279907/starkware-open-source-zero-knowledge-prover-stwo
That concludes this week's content. Thank you for reading this week's report. We hope you benefit from our insights and observations.
You can follow us on Twitter and Medium for real-time updates. See you next time!
This weekly report is for informational purposes only. It should not be considered investment advice. You should conduct your own research and consult independent financial, tax, or legal advisors before making any investment decisions. Past performance of any asset does not guarantee future results.
