Market Overview
Market Overview
The cryptocurrency market showed an upward trend this week. Bitcoin (BTC) hit a new high this week, and Altcoin also generally followed the upward trend. The market sentiment index dropped slightly from 73% last week to 71%. Although it has dropped from last week, it still remains in the bullish range overall.
Stablecoin Market Dynamics
For the first time in the past month, the stablecoin market showed a trend of simultaneous rise of USDT and USDC:
USDT: Market value reached 151.9 billion US dollars, a weekly increase of 0.79%, and the weekly increase exceeded 1 billion US dollars for three consecutive weeks, continuing to maintain an upward trend
USDC: Market value is $61 billion, up 0.83% week-on-week, ending a three-week downward trend and beginning an upward trend
This phenomenon deserves investors' attention: USDT's continued growth indicates that institutional funds, mainly from non-US users, are increasing their entry; USDC ended its three-week decline, reflecting that US users may have begun to re-accelerate their entry due to the favorable Crypto policies issued by the US government and the new highs of BTC. The simultaneous rise of USDT and USDC can reflect that market funds are actively entering the market at this stage, but investors should pay attention to possible FOMO sentiment.
Positive policies boost market sentiment
This week, the cryptocurrency market showed an overall positive trend, mainly benefiting from two favorable policy factors:
· Significant progress in the amendment to the GENIUS Act· The bill has made a breakthrough in the U.S. Senate· Core impact: Promote the compliance of stablecoins and provide a clear regulatory framework for the industry· Market expectations: After the bill is passed, it will introduce huge incremental funds and significantly boost investor confidence
· Texas Bitcoin Strategic Reserve Act passed · As an important state in the United States, this move by Texas marks the mainstream society's further recognition of Bitcoin · Demonstration effect: It is expected to drive other states to follow up with similar policies · Market impact: Strengthens the status of Bitcoin as a reserve asset and greatly improves market sentiment
Macroeconomic risks still need to be vigilant
Despite the obvious policy benefits, the macroeconomic environment remains uncertain:
· The Fed’s monetary policy stance remains unchanged · Several Fed officials have made it clear that they will not cut interest rates in the near future · The high interest rate environment will continue to affect market liquidity and risk asset valuations
The US tariff issue is still unresolved. The US tariff negotiations with many countries are still ongoing. The outcome is unclear, which may have a volatile impact on the global economy and market sentiment.
Risk Warning and Outlook
In an environment where favorable policies coexist with macro-prudential policies:
Avoid FOMO: Although there are obvious short-term positives, you should not blindly follow the trend and enter the market
Balanced allocation strategy: While seizing policy dividends, reasonably control positions and guard against macro risks
Clarification of policy and regulation is the only way for the cryptocurrency market to mature. The GENIUS Act and the states’ acceptance of Bitcoin indicate that crypto assets are gradually being integrated into the traditional financial system. However, investors still need to remain rational in their optimism and pay close attention to the potential impact of macroeconomic variables on the market.
Next week forecast
Bullish target: DRIFT
DRIFT: Strategic Transformation of Institutional DeFi
On Thursday, Drift, the largest perpetual contract decentralized exchange (Perp DEX) in the Solana ecosystem, announced the launch of its institutional version. This cooperation with traditional financial giant Apollo marks Drift's official entry into the institutional DeFi field. Through this cooperation, Drift not only expands its layout in real world assets (RWA) and private credit business, but also brings it new opportunities for coordinated development with traditional financial institutions. This move is expected to help Drift significantly increase its market share and revenue scale.
The fusion bridge between traditional finance and blockchain
With the advantages of its own on-chain performance and the newly proposed Alpenglow upgrade, the Solana ecosystem is ready to introduce a strategic upgrade of institutional-grade financial services. The launch of the institutional version of Drift marks the beginning of this transformation, solving the pain points of traditional financial institutions through on-chain technology and injecting institutional-grade liquidity and trust endorsement into the entire ecosystem.
· Market transformation opportunity: Blockchain development has entered the application landing stage from the infrastructure construction stage, and institutional capital is seeking to enter. Drift accurately grasps this time window and becomes a key bridge connecting traditional finance and DeFi.
· Accurately solve pain points: Drift provides on-chain solutions to the three core pain points of the traditional private credit market (high entry barriers, limited liquidity, and low capital efficiency), bringing a market of more than $2 trillion into the blockchain world.
· Technical barrier construction: Through cooperation with Securitize to implement sToken vault technology, Drift successfully tokenized ACRED, a $1 billion multi-asset credit fund managed by Apollo, and realized its application as on-chain collateral for the first time, establishing a technical barrier that is difficult to replicate.
Institutional-level service ecosystem driven by capital efficiency
The institutional version of Drift is no longer a simple DeFi product, but has transformed into a complete institutional-grade financial services ecosystem. Through capital efficiency optimization and compliance-first strategies, it not only meets the requirements of institutional investors, but also maintains the innovative advantages of blockchain.
White Glove Services: Provide professional service channels for institutional assets such as credit funds, real estate, commodities, etc., while ensuring compliance and transparency while achieving Solana’s native transaction speed and capital efficiency.
Complete product system: Build a full-service system including Drift Borrow/Lend and Drift Earn to support ACRED token holders in on-chain lending, automated strategy management and liquidity interaction, forming a closed-loop ecosystem.
Leverage Strategy Innovation: Providing leverage strategies for tokenized private lending, creating enhanced yield opportunities not available in traditional finance, while ensuring system security through risk management, balancing innovation and stability.
The network effect catalyzed by institutional capital
As the first institutional-grade DeFi product on Solana, Drift Institutional Edition not only brings growth momentum to itself, but also creates a network effect for the entire Solana ecosystem. By introducing high-quality institutional capital, it enhances the value and attractiveness of the overall ecosystem.
Top Institutional Endorsement: Partnering with Apollo, which manages $750 billion in assets, to bring institutional-level trust endorsement to the Solana ecosystem, enhancing the market recognition and security perception of the entire network.
Improved liquidity depth: The entry of institutional funds will significantly increase the total locked value (TVL) on Solana, improve liquidity depth, reduce volatility, and create a better trading environment for more institutional and retail users.
Standard-setting leadership: As the first institutional-grade product, Drift sets standards for compliance, risk management, and institutional services for the entire Solana DeFi ecosystem, driving the entire ecosystem towards a more mature and standardized direction.
A paradigm shift from speculative narrative to value capture
The institutional version of Drift represents a key step in the transformation of the Solana ecosystem from speculation-driven to value capture, establishing a sustainable growth model based on real value by tokenizing and integrating real assets into the DeFi ecosystem.
· Real asset anchoring: Unlike purely speculative Meme coins, ACRED introduced by Drift represents the real asset portfolio managed by Apollo, providing real economic value support for on-chain activities.
Compliance-first strategy: In the context of an increasingly stringent regulatory environment, Drift takes a "compliance-first" approach to ensure that institutional services meet regulatory requirements and lay the foundation for long-term sustainable development.
Value capture mechanism: By providing value-added services for tokenized assets, Drift is able to capture value from the huge flow of funds migrating from traditional finance to blockchain, and establish a profit model based on actual services rather than relying solely on token speculation.
Drift on-chain data
From the above chart, we can see that Drift's transaction volume has been on an upward trend this week, and compared with the previous month, Drift's overall transaction volume this month is at a high level.
Therefore, we can analyze from the above data that Drift's TVL has grown rapidly recently, reaching a historically high level of 1.124 billion, and is about to reach a historical high of 1.177 billion US dollars, and Drift's daily trading volume is at a high level this month, and it has also shown a rapid upward trend this week. However, the price of DRIFT tokens still has nearly twice the space compared to the historical high of 1.78U, so as a DEX project with practical applications, its business volume and capital volume often represent its current development status. We can see that the price of DRIFT tokens is obviously underestimated at this stage.
Bearish targets: CETUS, REZ
CETUS: The trust crisis and survival challenge caused by the $223 million security breach
Cetus Protocol, the largest decentralized trading platform in the Sui blockchain ecosystem, suffered a serious security vulnerability attack. Hackers exploited calculation accuracy issues to steal more than $223 million in assets (162 million dollars in assets were urgently frozen after the accident), causing the platform's liquidity to almost dry up and TVL (total locked value) plummeting to only $37.84 million.
Direct economic loss
Financial loss: $223 million in assets were stolen, and $162 million in assets were frozen immediately after the incident. The actual loss was $61 million, far exceeding the total project revenue of $19 million.
TVL Collapse: Liquidity pools were emptied and the total locked value (TVL) dropped sharply to only $37.84 million
Token value plummets: CETUS tokens saw a sharp drop in price due to panic selling
A crisis of confidence in technology
Design flaws exposed: Calculation accuracy issues were discovered as fundamental design flaws, questioning the technical capabilities of the project team
Inadequate security audits: The fact that such a major vulnerability was not discovered in advance indicates that there were serious flaws in the security audit process.
The vulnerability was not clearly stated: the detailed technical analysis was not released in time after the attack, which increased the uncertainty of users
User behavior chain reaction
Trust collapse: Users have extreme distrust of the platform
Fund withdrawal: Remaining users may accelerate the withdrawal of funds, further reducing platform liquidity
User churn: Lack of compensation expectations leads to permanent user churn
Long-term existential threat
Liquidity death spiral: users leave → liquidity decreases → trading experience becomes worse → more users leave
· Drying up of revenue sources: Declining transaction volumes lead to reduced fee income
Lack of development funds: Unable to raise new funds for product development and market expansion
This multi-layered negative impact forms a self-reinforcing vicious cycle. If it is not dealt with quickly and effectively, the prospects of Cetus Protocol as a sustainable DeFi project will be extremely bleak.
REZ: The massive token unlocking on May 29 may exacerbate the downturn in the re-staking track
Renzo is a re-staking protocol based on EigenLayer. Renzo abstracts the complex process of end-user re-staking, and stakers do not have to worry about the active selection and management of operators and reward strategies.
Deterioration of industry environment
The overall downturn of the Ethereum ecosystem: In the past six months, the Ethereum ecosystem has not developed smoothly and has continued to suffer from market FUD
The re-pledge track has shrunk significantly: As a sub-sector, the general attention paid to re-pledge projects has declined
Lack of user confidence: Market doubts about the Ethereum ecosystem have affected users’ willingness to participate in the re-staking protocol
Poor performance of the project itself
TVL plummeted by 75%: Compared with the peak period, the locked value has dropped by three quarters, indicating that users are leaving the platform seriously.
· Shrinking market value: The current market value is only 41.1 million US dollars, which is at a low level
Insufficient liquidity: The average daily trading volume is only US$9 million, and the market depth is insufficient
Product differentiation is not obvious: Although the pledge process is simplified, it fails to establish sufficient moat in the competition
Upcoming token unlocking pressure
Large-scale unlocking is approaching: 423.7 million REZ tokens will be unlocked on May 29, accounting for 4.24% of the total locked amount
High risk of unlocking entities: The unlocking entities are mainly investment institutions and project teams, and they have strong motivation to sell.
Weak market acceptance: The ratio between the unlocked token value and daily trading volume is unbalanced, and the market is difficult to effectively accept
These three unfavorable factors overlap and reinforce each other, forming a negative cycle: the deterioration of the industry environment leads to poor project performance, and poor project performance puts pressure on token prices. The upcoming large-scale unlocking may further aggravate the downward pressure on prices, which may eventually lead the project into deeper trouble.
Market Sentiment Index Analysis
The market sentiment index dropped from 73% last week to 71%. Although it has declined, it is still in the bullish range overall.
Hot Tracks
The GENIUS Act Amendment Passed: Clarification of Stablecoin Regulation Will Lead to New Growth in the DeFi Track
Overview
The revised version of the GENIUS Act has made significant progress in the U.S. Senate, providing a clear legal framework for the stablecoin market by establishing a tiered regulatory system, requiring U.S. dollar asset support, and restricting the participation of technology giants. Although strict supervision has been introduced, the bill has essentially ended long-term regulatory uncertainty, which will attract traditional financial institutions and Wall Street capital to enter the market and bring considerable incremental funds to the crypto ecosystem. Among the various sub-sectors, the DeFi track, especially projects such as Aave and Pendle that are deeply integrated with stablecoins, will become the biggest beneficiaries, because the arbitrage mechanism it provides is highly matched with the professional capabilities of traditional financial institutions, and mature stablecoin application scenarios have been established, which is expected to usher in greater development space under the new regulatory environment.
Interpretation of the Amended Version of the GENIUS Act
The "Guiding and Promoting U.S. Stablecoin National Innovation Act", which was blocked in the U.S. Senate last week, was amended and continued to be introduced by the Republican Senate in the U.S. Senate, and has made significant progress. On Tuesday morning Beijing time, with 66 votes in favor and 32 votes against, the procedural motion of the amended version of the "GENIUS Act" was passed, clearing the way for final legislation.
Layered design of the regulatory system
The revised bill adopts a tiered regulatory strategy based on market capitalization:
Large stablecoins (>$10 billion): directly regulated by the Federal Reserve (FED)
Small stablecoins (<$10 billion): State regulators
This hierarchical regulatory model essentially maintains the federal government’s control over important stablecoins while avoiding excessive dispersion of regulatory resources. It can effectively prevent the phenomenon of “regulatory arbitrage” caused by different regulatory standards in different states, while ensuring that systemically important stablecoins are subject to strict supervision.
Asset-backed requirements and U.S. debt financing
The bill requires that all stablecoins must be fully backed by highly liquid assets such as the U.S. dollar or U.S. Treasury bonds:
Anchoring the US dollar financial system: Binding stablecoins to the US dollar ecosystem to continue to maintain market demand for the US dollar
· U.S. debt financing tools: Due to the current high pressure on U.S. debt, the demand for U.S. debt in the old financial system is declining, thus creating a new demand channel for U.S. Treasury bonds, which helps to ease the financing pressure of the U.S. government.
· Continuation of the US dollar hegemony : At a time when the influence of the US dollar is declining, the influence of stablecoins based on the US dollar is expanded to achieve the purpose of continuing the influence of the US dollar
This bill actually transforms the stablecoin market into a new indirect purchaser and channel of U.S. Treasuries, alleviating the pressure faced by U.S. Treasuries and forming a virtuous cycle of "stablecoin issuance → purchase of U.S. Treasuries → support for U.S. government financing". At the same time, by forcibly binding the new innovative economy to the U.S. dollar, the market demand for the U.S. dollar will increase and the dollar's hegemony will continue to be maintained.
Big Tech Restrictions and the Balance of Financial Power
The bill restricts the issuance of stablecoins by large non-financial technology companies such as Tesla, META Amazon, Google and Microsoft, and imposes higher requirements if such companies issue stablecoins.
Prevent the transfer of financial power: restrict technology giants from using their large user base and technological advantages to enter the field of currency issuance
Maintaining the dominance of traditional finance: ensuring that the right to issue currency is mainly in the hands of regulated financial institutions
Avoiding “super-sovereign” risks: Preventing multinational technology companies from creating payment networks that could challenge national monetary sovereignty
This provision in the bill can be understood as a power game between the traditional financial system and emerging economies. It strictly restricts the issuance rights of emerging technology companies and ensures that the right to issue currency must be in the hands of national financial institutions.
Credit Isolation and Responsibility Boundaries
The bill explicitly prohibits stablecoin issuers from falsely claiming that their products are insured by the Federal Deposit Insurance Corporation (FDIC) or backed by the U.S. government. This provision has important risk management implications:
Prevent moral hazard: Make it clear that the government does not provide implicit guarantees for stablecoins, reducing the risk incentives of issuers
Protect government credit: Protect the credit rating of the U.S. government and the FDIC in the event of possible turmoil in the stablecoin market
Risk isolation mechanism: Establish a firewall between the stablecoin market and the traditional financial system to prevent risk contagion
Crisis prevention: Preventing a stablecoin crisis from evolving into a systemic financial crisis requiring government assistance
This credit segregation strategy reflects regulators' efforts to prevent potential systemic risks by clarifying the boundaries of responsibility.
New protection mechanisms and ethical standards
The latest amendments add three key aspects:
Consumer protection mechanisms: Enhanced protection measures for stablecoin users to ensure transparency and fairness
Bankruptcy protection mechanism: Establish a clear bankruptcy process to prevent the impact of stablecoin collapse on the broader financial system
Expanded ethics code: specifically targeting senior government officials and prominent business figures, with explicit mention of figures such as the Trump family and Musk
These additional provisions are intended to improve overall safety and enhance investor confidence by strengthening industry regulation. These measures include consumer protection laws and bankruptcy protection mechanisms, with the goal of providing more comprehensive protection for investors and consumers.
The revised version of the GENIUS Act is good for the Crypto market
Through our interpretation of the revised version of the GENIUS Act, we can see that although the bill has added various regulatory clauses and regulations, it has generally promoted the compliance of the stablecoin market, provided the stablecoin market with a clear legal framework, and ended the long-standing regulatory uncertainty.
The implementation of this bill will attract more institutional investors and traditional financial institutions to enter the Crypto market. Traditional US banking giants and Wall Street companies will accelerate the layout of stablecoin business, which is expected to bring billions or even trillions of dollars in capital inflows. For the Crypto market, stablecoins are the key infrastructure of the Crypto economy and the foundation of the development of the Crypto market. The number of stablecoins can also reflect the liquidity of the market to a certain extent. Although it is impossible for all stablecoin funds to flow into the Crypto industry after the implementation of the GENIUS Act, it will inevitably attract some incremental funds. And at this stage, the Crypto market is only 3 trillion US dollars in size, which is still relatively small for traditional funds, so as long as some traditional funds continue to flow into the Crypto market, it will inevitably drive the rapid development of the Crypto industry.
For the Crypto industry, the track that is most affected by the new funds should be the Defi track. Because most projects in the Defi track can carry out capital arbitrage, and capital arbitrage is what traditional funds are better at, so after a large amount of traditional funds begin to enter stablecoins, they will inevitably choose new usage scenarios, and projects in the Defi track are an excellent usage scenario.
The projects that use the most stablecoins in the DeFi track are Aave and Pendle. Aave is the largest
Market transformation brought about by regulatory clarification
Although the revised version of the GENIUS Act introduces strict regulatory provisions, its main role is to provide a clear legal framework for the stablecoin market and end long-term regulatory uncertainty:
Compliance certainty: The bill provides clear compliance guidelines for market participants through a layered regulatory framework, asset support requirements, and credit isolation mechanisms. Stablecoin issuers no longer need to grope in a vague environment, but have clear rules to follow, enabling companies to formulate long-term development strategies and reduce regulatory risks.
Attract more institutions to enter: Traditional financial institutions are extremely sensitive to legal risks. The GENIUS Act provides these institutions with a reliable compliance path by clarifying the legal status and operational requirements of stablecoins. In particular, for institutions entrusted with the management of customer assets, the implementation of the Act means that they can begin to explore stablecoin business without violating their fiduciary responsibilities.
Improved investor confidence: The regulatory framework provides certainty not only for issuers but also for investors. By requiring stablecoins to be 100% backed by U.S. dollars or U.S. Treasuries and prohibiting misleading advertising, the bill reduces the risk of default and information asymmetry. Institutional investors particularly value these safeguards and will be more willing to include stablecoins in their portfolios.
The catalytic effect of traditional financial capital inflows
Accelerated deployment of institutional capital
Participation of banking giants: Traditional banks in the United States will have a clear path to participate in the stablecoin business. Financial giants such as JPMorgan Chase and Citigroup may enter the market by directly issuing compliant stablecoins, providing custody services, or developing stablecoin-based payment solutions, bringing significant funds and market credibility.
· Wall Street capital injection: Asset management giants such as BlackRock and Vanguard Group will seek strategic layout in the field of stablecoins, not only directly investing in projects, but also developing investment products based on stablecoins. The participation of Wall Street means more complex financial instruments and larger-scale capital flows.
· Scale expectations: Considering that the total assets of the U.S. banking industry exceed $23 trillion, even if only a small proportion flows into the stablecoin market, it will bring billions or even hundreds of billions of dollars in incremental funds, fundamentally changing the market depth and liquidity.
Stablecoins as a reinforcement of cryptoeconomic infrastructure
Stablecoins play a key role in the crypto ecosystem:
Medium of exchange and store of value: Solve the volatility problem of cryptocurrency and support the daily operation of the entire ecosystem.
· Bridge between traditional finance and crypto finance: Connecting the fiat currency world and the crypto world, providing an efficient circulation channel for funds between the two systems.
Market liquidity indicators and providers: Stablecoin market capitalization and circulation are important indicators of market liquidity and sentiment.
Although not all new stablecoin funds will flow directly into the crypto market, some of the inflows will have a significant impact on the current crypto market, which is only $3 trillion in size. Compared with the huge size of the traditional financial market, the crypto market still has huge room for growth.
Strategic advantages of the DeFi track
Among all crypto segments, the DeFi track may become the biggest beneficiary:
Arbitrage mechanism fit: The yield arbitrage opportunities provided by DeFi projects are highly matched with the professional capabilities of traditional financial institutions. These institutions have advanced quantitative trading systems and risk management models, which can efficiently identify and utilize the yield differences in the DeFi ecosystem, such as interest rate arbitrage, liquidity mining optimization, etc.
· Clear use scenarios for funds: Compared with other crypto fields, DeFi provides a clearer path for fund application. Traditional institutions can easily understand core functions such as lending, trading, and market making because these concepts are highly similar to traditional financial businesses. The transparency of the DeFi platform also makes fund flows and risks more visible.
Familiar risk-return structure: Many DeFi product designs draw on traditional financial instruments, lowering the threshold for institutional understanding and evaluation. DeFi protocols usually provide customizable risk exposure options, allowing institutions to choose suitable strategies based on their own risk preferences.
Projects with the potential to generate the greatest returns
In the Defi track, the leading projects that are most tied to stablecoins are Aave and Pendle.
Aave
Aave is the largest decentralized lending project in the Crypto market. Since lending projects provide liquidity to the market, and most users in lending projects use the form of staking token assets in exchange for stablecoins, and Aave adopts a lending pool model, the more funds and the better the depth in the pool, the lower the loan interest rate will be, which will help users borrow more assets.
As can be seen from the figure, Aave has an absolute dominant position in the lending market, accounting for 85.75% of all borrowings.
As can be seen from the chart, Aave's TVL has exceeded US$24.384 billion, reaching a historical high. It can be seen that Aave's business development is showing a healthy and rapid upward trend.
According to data from Aave's official website, Aave's lending business has lent a total of US$12.7 billion, of which US$6.114 billion has been lent in stablecoins, accounting for the majority of lending.
In summary, we can see from Aave’s industry position in the lending track and the business scale division within Aave that Aave’s project support is still the lending business of various stablecoins. Therefore, if a large number of stablecoins enter Crypto after the passage of the Stablecoin Act, Aave is definitely the best ideal project for these stablecoins to generate income.
Pendle
Pendle is the largest and most deeply traded interest rate trading project in the Crypto market, and is located in the interest rate derivatives track, a subdivision of the Defi track. For institutional participants, earning stable arbitrage income is one of their main sources of income, and Pendle's products include special products involving the separation of principal and interest in stablecoins, allowing users to trade YT of various stablecoins and obtain greater returns through derivatives.
As can be seen from the figure, Pendle's TVL has reached US$4.198 billion. Although it is not at the peak period of its project, the upward curve of its TVL also shows that Pendle's business scale is in a stage of rapid recovery.
According to data from Pendle's official website, the total TVL of Pendle's stablecoins can reach more than US$3.7 billion, accounting for more than 88% of Pendle's overall TVL. It can be seen that Pendle's interest rate market is mainly dominated by the stablecoin interest rate market.
As can be seen from the figure, Pendle's stablecoin yields generally exceed 10%, which is a very high yield for traditional funds. If traditional funds can enter the Crypto market in compliance with regulations, stablecoin yields of more than 10% will inevitably attract a large amount of traditional funds to join.
To summarize, based on Pendle’s scale in the stablecoin interest rate segment, we can see that Pendle’s business support is the stablecoin interest rate market. Therefore, if the stablecoin bill is passed and a large number of stablecoins enter Crypto, Pendle will be the main market for institutions to participate in stablecoin interest rate transactions.
Overall overview of market themes
In terms of weekly returns, the AI track performed the best, while the PayFi track performed the worst.
AI track: In the AI track, TAO, RENDER, FET, and WLD account for a large proportion, with a total share of 75.26%. This week, their increases and decreases were 9.31%, 7.12%, 12.28%, and 25.71%, respectively. It can be seen that the main projects in the AI track are on an upward trend this week and most tokens have risen significantly, making the AI track perform the best.
PayFi track: XRP, XLM, and BCH account for a large proportion in the PayFi track, with a total share of 94.17%. This week, their increases and decreases were -1.46%, 1.76%, and 10.13%, respectively. The average increase was lower than that of projects in other tracks. Even XRP, which accounted for the largest proportion (83.25%), even fell, making the PayFi track the worst performer.
Crypto Events Next Week
Thursday (May 29) U.S. weekly initial jobless claims
· Friday (May 30): Final value of the University of Michigan Consumer Confidence Index for May; Annual rate of the US core PCE price index for April; Second round of compensation for FTX users
Summarize
This week, the cryptocurrency market showed a clear upward trend. Bitcoin's new high led to a general rise in Altcoin. However, the market sentiment index fell slightly to 71%, still maintaining a bullish range. On the policy side, the "GENIUS Act" amendment has made significant progress in the U.S. Senate and the passage of the Texas Bitcoin Strategic Reserve Act has injected strong confidence into the market. The positive signal of the simultaneous growth of USDT and USDC in the stablecoin market indicates that global investors are accelerating their entry. In terms of projects, DRIFT has officially entered the institutional DeFi field with its strategic cooperation with traditional financial giant Apollo, which may lead a new chapter in the Solana ecosystem.
However, investors still need to remain cautious and be wary of possible FOMO sentiment and macroeconomic uncertainty in the market. The Federal Reserve's high interest rate stance and the unresolved US tariff issue may cause volatility in the market. At the same time, security risks cannot be ignored. For example, the $223 million vulnerability attack suffered by Cetus Protocol has sounded the alarm for our security awareness. It is recommended that investors, while seizing policy dividends, reasonably control their positions, balance their allocation strategies, and pay close attention to the potential impact of important events such as the release of US economic data on May 29 and 30, and the second round of compensation for FTX users on the market.
Welcome to join the BlockBeats official community:
Telegram subscription group: https://t.me/theblockbeats
Telegram group: https://t.me/BlockBeats_App
Official Twitter account: https://twitter.com/BlockBeatsAsia
