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

Layer 2 Overview:

Last week, Layer 2 showed positive growth, with Starknet exhibiting the most significant increase at 15.67%. Protocols such as JOJO, VaultCraft, Basemax, XY Finance, and Nostra demonstrated noteworthy TVL growth rates.

LSD Sector Overview:

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

Overview of RWA Sector:

Last week, the market value of real assets increased by 13.85%, and the 24-hour trading volume rose by 43.93%. RWA tokenized treasury rose by 1.6%, and the value of tokenized U.S. Treasury bonds increased by 0.08%. Notable growth tokens include $DEXTF, $LMR, and $BST, while tokens like $BRTR, $LNDX, and $SOB experienced significant losses.

Main Topics

Macro Overview:

• Comparison between the US stock market and Crypto Assets market

Major Events This Week:

• Bitcoin has seen its largest monthly rise in three years.

Weekly Recommended Protocol:

• OpSec

Weekly VC Investment Focus:

• Octav (400 million USD )

• BounceBit(600 million USD)

• READYgg (400 million USD )

Twitter Hot Topics:

• AI+DePIN

• Aark

• Modular Architecture

• Gearbox Protocol

• TON

Macro Overview

This week, the SPX and NASDAQ rose by 1.33% and 2.06%, respectively. Important events to watch for next 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's interest rate decision.

Major Events This Week

Bitcoin experiences the largest monthly rise in three years

Bitcoin is on track for its strongest monthly close since December 2020. Even with prices nearing historic highs, analysts say this bull market is far from peaking. The largest crypto asset has astonishingly risen 44% in February, breaking through $50,000 and $60,000 for the first time in years, and reached a high of $64,000 on Wednesday. This surge came after a sell-off following the debut of the U.S. spot Bitcoin exchange-traded fund at the end of January, after which the price briefly dipped below $40,000.

Bitcoin is expected 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, the Crypto Assets on the CoinDesk 20 index rose by over 40%. The governance token of a certain decentralized exchange, the token of a certain decentralized data storage network, and the popular meme coin Dogecoin were the best performers in the index, exceeding the rise of BTC.

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

The research director of a certain company believes that the U.S. spot Bitcoin ETF is a "game changer" that provides stable and recently accelerating demand for BTC. Meanwhile, approximately 75% of the Bitcoin supply is owned by long-term holders who have not been willing to sell at the recent price levels so far.

Analysts from a certain research institution pointed 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. "The ongoing buying pressure and strong bullish signals from oscillators and moving averages indicate that BTC is preparing to continue its upward momentum," said an analyst from the institution in a report on Thursday.

Weekly Agreement Recommendation

This week, we have selected OpSec, a decentralized physical infrastructure network cloud computing platform that utilizes AI technology.

OpSec is based on blockchain technology, utilizing artificial intelligence to provide a secure, efficient, and decentralized cloud computing platform.

Currently, OpSec offers the following solution services to help Web3 users and developers provide a friendly cloud service experience:

• OpSec Cloudverse: mainly consists of Nodes, VPS, and GPU.

• OpSec Network: OpSec's Layer 1 Network combines the capabilities of AI and modular architecture to enhance scalability, security, and flexibility.

• CloudSec: CloudSec is an advanced routing device that utilizes a decentralized network architecture to improve online privacy and security.

OpSec Cloudverse business presents a fundamental solution to the existing blockchain infrastructure. The nodes of the existing blockchain infrastructure are hosted on centralized cloud services, and if they maliciously shut down the nodes or attempt to control the network with malicious behavior, then the blockchain will be in significant danger.

Cloudverse achieves automated node management and deployment by building on globally distributed cloud services, addressing malicious situations such as node dependencies and insecurity. Currently, OpSec has 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.

The native token of OpSec, $OPSEC, will be launched on Ethereum with a total supply limit of 100 million coins. It is mainly used for network staking under the POS mechanism, for executing transactions/deploying contracts to pay fees, node operation rewards, governance voting rights, and more.

Our Insights

OpSec is currently a hot narrative in AI+DePIN, with DePIN's market value at 23 billion dollars and a total transaction volume of 1.9 billion dollars. There has been significant growth recently. According to predictions from a certain data platform, the DePIN industry will reach 3.5 trillion dollars in the next four years, suggesting that there will be nearly 135 times growth potential in this field.

The reason for the combination of AI and DePIN lies in the fact that DePIN can provide decentralized storage and computing resources, which are crucial for AI models that require significant computing power. Decentralized nodes can offer hardware storage, computing power, GPU, or training data, and thus earn rewards, similar to the Bitcoin mining process, allowing AI to efficiently deploy computations based on this; conversely, AI can also intelligently manage the resources of the DePIN network, optimizing resource allocation; automatically executing complex operations such as network detection maintenance, etc., to enhance network efficiency.

Currently, there are many projects under the AI+DePIN narrative such as Flux, Node AI, EMC Protocol, etc. Essentially, they are still based on DePIN, focusing on the business expansion of physical infrastructure. OpSec, as a cloud computing service, naturally leans towards the B-side, specifically how to direct decentralized node services towards more infrastructure projects, such as Layer 1 public chains.

Currently, OpSec has already launched on networks such as Taiko, Linea, Zora, Optimism, Starknet, and Celestia, and there are many more partners preparing to launch. It can be seen that OpSec has achieved certain results in business expansion. Recently, OpSec has successively collaborated with Commune AI and Dmail Network to release the V2 test version and sponsored the Eth Denver conference, indicating that the project team is continuously expanding its market influence.

Overall, OpSec provides a secure, efficient, and decentralized cloud computing platform that can host and run blockchain applications, offering various utilities to enhance the functionality and usability of Web3, leveraging the power of AI to optimize the platform's performance, security, and privacy, and providing innovative solutions for Web3 users, developers, and builders.

Weekly VC Investment Focus

Octav

Octav is a free, anonymous, and editable data analysis platform that helps decipher decentralized finance investment activities. Get comprehensive DeFi portfolio information, such as cost basis, profit and loss, etc.

BounceBit

BounceBit is a native BTC staking chain that protects through the staking of Bitcoin and BounceBit tokens. BounceBit is supported by an organization for the secure storage of Bitcoin. The PoS mechanism introduces a dual-token staking system that leverages the native BTC security with full EVM compatibility.

READYgg

A certain company is building social game 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 among developers, creators, and players to create a sustainable, long-term distributed game ecosystem and creator economy.

protocol event

A certain project token fell by 5% due to the lawsuit against a certain AI company by the founder of Tesla.

A project upgrade has led to a decrease in fees on the Optimism ecosystem chain.

A certain company announced a new open-source zero-knowledge prover Stwo.

A certain project launched V3 on the Blast mainnet and announced a points program; the plan is to issue tokens this year.

A wallet integrates Arbitrum for token exchange.

Industry Update

A certain country reportedly demands a compensation of 10 billion USD from a certain exchange: BBC

The asset management scale of a certain institution's spot Bitcoin ETF has surpassed 10 billion USD.

The Bank for International Settlements has issued regulatory recommendations on global stablecoin arrangements.

The total value locked (TVL) in decentralized lending has surpassed 30 billion USD for the first time since mid-2022.

The Attorneys General of eight states in the United States questioned the authority of a regulatory agency in a lawsuit involving a certain exchange through a joint amicus brief.

Twitter hot topics

The encrypted Twitter contains many insights, but filtering valuable content from the vast amount of information is not easy. Every week, we select a few of the most insightful tweets to provide you with the essence of the content. Here are this week's selections:

AI+DePIN narrative

Aark Project Analysis

Discussion on Modular Architecture

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