Crypto Assets Weekly Report: Bitcoin Records Largest Monthly Rise in Three Years

Layer 2 Overview:

Last week, Layer 2 generally showed a positive growth trend, with Starknet experiencing the most significant increase of 15.67%. The TVL growth ratios of protocols such as JOJO, VaultCraft, Basemax, XY Finance, and Nostra are worth noting.

Overview of LSD Field:

In the LSD field, both the deposit volume and total withdrawal volume of Ethereum have risen, with the increase in withdrawal volume being more pronounced, reaching 2.88%. In terms of market share, mainstream LSDs have all seen significant increases, with wstETH showing the most notable growth, reaching 16.28%.

Overview of the RWA Field:

Last week, the market value of real-world assets grew by 13.85%, and the 24-hour trading volume increased by 43.93%. RWA tokenized treasury rose by 1.6%, while the value of tokenized US treasury bonds increased by 0.08%. Notable rising tokens include $DEXTF, $LMR, and $BST, while tokens such as $BRTR, $LNDX, and $SOB experienced significant declines.

Main Topic

Macroeconomic Overview:

• Performance of US Stocks and Crypto Assets Market

Major Events This Week:

• Bitcoin records the largest monthly rise in three years

Weekly Recommended Protocol:

• OpSec

Weekly Venture Capital Investment Focus:

• Octav (400 million USD )

• BounceBit(600 million USD)

• READYgg (400 million USD )

Twitter Insights:

• AI+DePIN
• Aark
• Modular
• Gearbox Protocol
• TON

Macroeconomic Overview

This week, the SPX and NASDAQ rose by 1.33% and 2.06%, respectively. Important events to watch in the coming week include the S&P Global Services PMI, ISM Non-Manufacturing PMI, Spring Forecast Report, ADP Non-Farm Employment Change, and the Bank of Canada interest rate decision.

Major Events This Week

Bitcoin records largest monthly rise in three years

Bitcoin is heading towards its strongest monthly close since December 2020. Despite prices nearing historical highs, analysts believe this bull market has not yet peaked. In February, Bitcoin remarkably increased by 44%, breaking through the $50,000 and $60,000 barriers for the first time in years, even reaching a high of $64,000 on Wednesday. This surge began after the debut of the U.S. spot Bitcoin ETF at the end of January, followed by a brief market correction where prices briefly dipped below $40,000.

Bitcoin is expected to reach a historic highest end-of-month price. To achieve this goal, it needs to surpass $61,357 before midnight Coordinated Universal Time (UTC), which is the closing price from October 2021, nearing the peak of the previous market cycle. As of the time of writing, the BTC trading price is around $61,200.

In February, the CoinDesk 20 Index (CD20) rose by more than 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 the top performers in CD20, with increases surpassing that of BTC.

Despite the price of Bitcoin nearing historical highs, some analysts remain optimistic about its further rise potential.

Alex Thorn, the head of research at Galaxy, stated in a market analysis on Thursday: "We haven't even begun to touch the heights this could reach." He believes that the U.S. spot Bitcoin ETF is a "game changer" that provides stable and recently accelerated demand for BTC. Meanwhile, approximately 75% of the Bitcoin supply is held by long-term holders, who have yet to sell at recent price levels.

Analysts at IntoTheBlock point out that the on-chain transaction volume on the Bitcoin network and retail interest in Crypto Assets are still far below the levels seen during previous peaks. Analysts at Swissblock stated in a report on Thursday: "The ongoing buying pressure and strong bullish signals from oscillators and moving averages indicate that BTC is preparing to continue its rise."

Weekly Recommended Protocol

This week we focus on OpSec, a decentralized physical infrastructure network utilizing AI technology (DePIN) cloud computing platform provider.

Traditional internet infrastructure is usually controlled by centralized entities, which may lead to restrictions on users' network freedom. To address such issues, OpSec provides a secure, efficient, and decentralized cloud computing platform based on blockchain technology, combined with artificial intelligence.

OpSec currently provides the following solutions to create a friendly cloud service experience for Web3 users and developers:

• OpSec Cloudverse: includes three parts: Nodes, VPS, and GPU. Users can deploy management nodes to enhance network security and decentralization; VPS is used for node operation and computation; OpSec provides decentralized GPU solutions.

• OpSec Network: Combining AI and modular architecture to enhance scalability, security, and flexibility. Utilizing POS and POC(proof of cloud) mechanisms to enhance network security while establishing cloud proof consensus based on cloud resources, thereby reducing development costs.

• CloudSec: Utilize a decentralized network architecture to improve online privacy and security. By routing data across multiple nodes and employing onion routing, it supports anonymous communication and increases the difficulty of data tracking.

OpSec Cloudverse proposes a fundamental solution to existing blockchain infrastructure. By building globally distributed cloud services, it achieves automated node management and deployment, addressing issues such as node dependency and insecurity. Currently, OpSec has established partnerships with numerous blockchain networks, including Bittensor, Venom, Taiko, Optimism, Celestia, etc.

The native token $OPSEC of OpSec will be issued on Ethereum, with a total supply cap of 100 million coins, mainly used for network staking, paying transaction fees, node operation rewards, and governance voting.

Our Insights

OpSec represents the current hot narrative of AI + DePIN. The total market value of the DePIN market is currently about $23 billion, with a daily trading volume of $1.9 billion, showing significant recent growth. According to Messari's forecasts, the DePIN industry is expected to reach a scale of $3.5 trillion in the next four years, with huge potential for growth.

The advantages of the combination of AI and DePIN are obvious: DePIN provides decentralized storage and computing resources to meet the large computational demands of AI models; AI can intelligently manage DePIN network resources, optimizing allocation efficiency.

Currently, there are several AI + DePIN projects in the market, such as Flux, Node AI, and EMC Protocol. OpSec, as a cloud computing service provider, focuses on B-end services and is committed to providing decentralized node services for more infrastructure projects.

OpSec has been launched on networks such as Taiko, Linea, Zora, Optimism, Starknet, and Celestia, with multiple partners set to go live soon. Recently collaborated with Commune AI and Dmail Network to launch the V2 test version and sponsored the Eth Denver conference, demonstrating a proactive approach to expanding market influence.

Overall, OpSec provides a secure, efficient, and decentralized cloud computing platform that can host blockchain applications and offers various tools to enhance Web3 capabilities. By optimizing platform performance, security, and privacy protection through AI technology, it provides innovative solutions for Web3 users, developers, and builders.

Weekly Venture Capital Investment Focus

Octav

Octav is a free, anonymous, and editable data analysis platform that helps to analyze decentralized finance ( DeFi ) investment activities. Users can access comprehensive DeFi portfolio information, such as cost basis, profit and loss, and other data.

BounceBit

BounceBit is a native BTC staking chain that secures the network by staking Bitcoin and BounceBit tokens. The project is supported by CEFFU(, which was previously known as Binance Custody) and Mainnet Digital, for the secure storage of Bitcoin. BounceBit adopts a PoS mechanism and introduces a dual-token staking system, utilizing the native BTC security to achieve full EVM compatibility.

READYgg

READYgg is committed to building a social gaming infrastructure for the Web3 creator economy. The project is developing mobile-first Web3 tools and technologies to democratize game creation. RGN aims to coordinate the economic interests between developers, creators, and players, creating a sustainable, long-term distributed gaming ecosystem and creator economy.

protocol event

• Worldcoin token price fell by 5%, due to Musk suing OpenAI
• The Delta upgrade has reduced fees on the Optimism ecosystem chain.
• StarkWare announces the launch of a new open-source zero-knowledge prover Stwo
• SynFutures launches V3 version on the Blast mainnet and announces a points program; plans to issue tokens this year.
• Robinhood wallet integrates Arbitrum for token exchange

Industry Update

• According to BBC reports, Nigeria demands Binance to compensate 10 billion dollars.
• BlackRock's IBIT spot Bitcoin ETF assets under management have surpassed $10 billion
• The Bank for International Settlements has issued regulatory recommendations on global stablecoin arrangements.
• The total locked value of decentralized lending has exceeded 30 billion USD for the first time since mid-2022.
• Attorneys General from eight states in the U.S. jointly submitted an amicus brief questioning the SEC's authority in the Kraken lawsuit.

Twitter Insights

This week, we have selected the following insightful Twitter posts:

1. Analysis of AI + DePIN

2. Introduction to the Aark Project

3. Discuss Modular Architecture

4. Latest Developments on Gearbox Protocol

5. Development of the TON Ecosystem

Important Events Next Week

Next week, several important economic data will be released, including the Purchasing Managers' Index and employment data from various countries. In addition, Canada...