What’s Going On With CRYPTO?! This Report REVEALS All!

Summary

This video summarizes the June 2024 Kucoin Research report, highlighting key crypto market trends. It discusses macro factors influencing central banks, ETF developments for Ethereum, and the impact on market confidence. The report also covers Bitcoin ETF inflows, investor sentiment via the fear and greed index, and the rise of tap-to-earn projects. It concludes with regulatory changes affecting the crypto landscape, suggesting a potential for future growth as retail investors return.

Takeaways

• 📈 Crypto markets have experienced significant volatility recently, with major central banks' actions and macro factors influencing market confidence.
• 📊 The report from KuCoin Research highlights the strengthening of the stock market and tech stocks, with the crypto market showing a rebound, especially in the case of BTC.
• 🔍 The SEC's unexpected approval of 19 B4 forms for spot Ethereum ETFs has boosted market confidence in ETH and related assets, despite the ETFs not being listed yet.
• 💰 Inflows into spot Bitcoin ETFs reached $200 million per day in May, with outflows from miners at around 450 BTC daily, indicating investor interest.
• 📉 Despite ETF approvals, the fear and greed index has fallen, suggesting a shift from extreme greed to a more cautious market sentiment.
• 🎰 The rise of tap-to-earn projects like Not Coin has drawn attention, with its unique launch strategy and significant growth in price and traded volume.
• 🔑 Layer 2 ecosystems within Ethereum saw a 20% increase in total value locked (TVL) in May, but activity levels have not significantly changed.
• 🌐 Layer 2 projects without their own tokens have shown growth, as users engage in hopes of earning airdrops, affecting onchain data.
• 🏦 Institutional investors prefer to exit projects following public listings, indicating a potential impact on retail investors.
• 📋 Regulatory developments in the US, Hong Kong, and Turkey are shaping the future of crypto, with implications for oversight, consumer protection, and taxation.
• 🚀 The report suggests that despite current market conditions, crypto markets are primed for growth once retail investors return, influenced by regulatory improvements and market developments.

Q & A

What is the main focus of the monthly Market insights report for June 2024 by KuCoin Research?

The report focuses on summarizing the current state of the crypto market, analyzing recent macro factors affecting major central banks, the performance of the stock market, and the impact of ETF approvals on crypto assets like Ethereum.

How has the strengthening of the stock market and positive earnings reports from companies like Nvidia influenced the crypto market?

The strengthening of the stock market and positive earnings reports have fueled tech stocks, while the crypto market experienced a rebound, particularly noticeable with Bitcoin's price action.

What was the significance of the SEC's approval of the 19 B4 forms for several spot Ethereum ETFs on May 24th?

The approval indicated that the SEC had reviewed and approved various aspects of the ETF offerings, including trading rules, listing standards, and fee structures, significantly boosting market confidence in Ethereum and related assets on the Ethereum blockchain.

How did the inflows and outflows of spot Bitcoin ETFs affect the total assets under management (AUM)?

The collective AUM of spot Bitcoin ETFs returned to the $60 billion mark in May, with around $200 million of inflows per day, compared to only $29.7 million of daily selling from Bitcoin miners, equating to approximately 450 BTC a day.

What does the Fear and Greed Index indicate about the current sentiment in the crypto market?

The Fear and Greed Index has fallen from its high of 95% to around 40%, indicating a shift from extreme greed to the lower end of the neutral scale, quickly heading towards fear.

What is the significance of the Layer 2 (L2) ecosystems in the Ethereum blockchain and recent changes noted by the report?

L2 ecosystems are crucial for improving the scalability and efficiency of the Ethereum network. The report notes a 20% increase in total value locked (TVL) in L2 ecosystems due to the SEC's approval of B4 filings, but also a decrease in TVL against their ETH pairs, suggesting unchanged activity levels.

What is the impact of the recent surge in 'tap-to-earn' projects like Notcoin on the market?

The surge in 'tap-to-earn' projects has attracted attention and investment, with Notcoin's price and traded volume seeing significant growth, despite initial skepticism due to the potential for increased sell pressure.

How have regulatory changes in the US, Hong Kong, and Turkey potentially impacted the future of cryptocurrencies and digital assets?

The US's FIT 21 act aims to provide a regulatory framework and more oversight to the CFTC, Hong Kong has granted VASP licenses to protect retail investors, and Turkey plans to regulate crypto assets to reduce trading risks and align with international regulatory bodies.

What is the importance of the investments and funding rounds disclosed in May, and how do they reflect the current trends in the crypto space?

A total of 156 investment and funding projects were disclosed with a value of over $1 billion, indicating a continued interest in the crypto space despite a slight decrease from April. EVM-based blockchains remained popular for financing, with Solana being the most financed non-EVM chain.

What does the report suggest about the potential future trajectory of the crypto market?

The report suggests that despite the lack of new retail investors, the market is still active with ongoing developments in projects and regulations. It posits that the market is primed for growth once retail investors return, potentially leading to a parabolic rise in crypto values.

Outlines

00:00

📈 Crypto Market Dynamics and Exchange Insights

This paragraph delves into the volatile nature of the crypto market, highlighting a report from KuCoin Research that offers insights into market activities. It discusses the impact of macroeconomic factors on central banks' policies and the stock market's performance, with a particular focus on tech stocks like Nvidia. The report also covers the rebound in crypto, especially Bitcoin and Ethereum, spurred by the SEC's approval of spot ETFs and the subsequent market confidence boost. However, it notes the SEC's delay in finalizing the ETF listings, affecting market sentiment. The paragraph wraps up with a call to action for viewers to engage with the content and explore the Coin Bureau deals page for crypto discounts.

05:02

🚀 Emerging Crypto Trends and Criticisms

The second paragraph examines the rise in criticisms regarding crypto projects with high initial market caps and low FTV, leading to retail traders' difficulties in profiting. It also touches on the shift towards low-cap gems and meme coins, including celebrity-related tokens. The paragraph further explores the surge in 'tap-to-earn' projects like Not Coin, which gained significant attention and user engagement. It discusses the fluctuating trends in layer 2 solutions within the Ethereum ecosystem, noting the impact of SEC filings on Ether's price and the total value locked (TVL) in layer 2 ecosystems. The summary also points out the growing skepticism around layer 2 solutions due to performance issues post-EIP-1559 upgrade.

10:04

🌐 Impact of Meme Coins and Layer Zero Dynamics

This paragraph focuses on the impact of meme coins related to the US presidential election and the resurgence of interest in various blockchain projects. It discusses Layer Zero's introduction of a self-reporting civil activity program to combat Sybil attacks and the subsequent evolution of anti-Sybil efforts. The report also covers the competitive landscape of airdrop farming, which has become a significant part of the crypto community's engagement with new projects. The paragraph concludes by examining the role of Telegram in promoting the TON ecosystem through games like Not Coin and Kazen, which have attracted millions of users.

15:05

🔄 Bitcoin Ecosystem and Layer 2 Developments

The fourth paragraph shifts focus to the Bitcoin ecosystem, noting a lack of interaction with BRC-20 tokens in favor of interest in projects like Ordinals and Bitcoin layer 2 solutions. It discusses the launch of the Rune protocol, created by Casey Rodarmor, and its impact on user and developer traffic. The paragraph also touches on investment and funding trends in May, highlighting a decrease in Series A funding rounds and an increase in strategic stage financing. It emphasizes the popularity of EVM-based blockchains for financing and the significant investment in non-EVM chains like Solana and Phantom.

20:06

🛠 Regulatory Shifts and Crypto's Future Outlook

This paragraph discusses key regulatory developments in the crypto space, including the passing of the FIT 21 act in the US, which aims to provide a regulatory framework for digital assets and give more oversight to the CFTC. It also covers Hong Kong's issuance of virtual asset service provider licenses to protect retail investors and Turkey's plans to regulate crypto assets to reduce trading risks and align with international regulatory bodies. The paragraph concludes by reflecting on the future of crypto, suggesting that despite the absence of a sudden influx of new retail investors, the market is primed for growth once retail interest returns.

25:07

🌠 Accumulation Opportunity and Market Potential

The final paragraph emphasizes the current market conditions as an opportunity for accumulation before a potential price surge. It suggests that the crypto market is still in its early stages and that patience is key for investors. The paragraph also encourages viewers to store their gains safely using hardware wallets and to take advantage of discounts available on the Coin Bureau deals page. It concludes with a call to action for viewers to engage with the content, share it with others, and stay updated with notifications for future videos.

Keywords

💡Cryptocurrency

Cryptocurrency refers to digital or virtual currencies that use cryptography for security and operate independently of a central bank. In the video, the term is central to the theme, as the script discusses the current state and future of the cryptocurrency market, including developments in trading, regulations, and technological advancements.

💡ETFs (Exchange-Traded Funds)

ETFs are investment funds that are traded on stock exchanges, much like individual stocks. In the context of the video, the script mentions the SEC's approval of spot Ethereum ETFs, indicating a significant development in the way cryptocurrencies like Ethereum can be accessed by investors, which is a key point in the market's evolution.

💡Macro Factors

Macro factors are economic events and trends that affect the overall economy and, by extension, the markets. The script refers to how recent macro factors have influenced confidence in central banks and potentially led to easing monetary policies, which is a critical backdrop to the crypto market's performance.

💡Fear and Greed Index

The Fear and Greed Index is a measure used in financial markets to indicate the sentiment of investors, ranging from fear (when the index is low) to greed (when the index is high). The video discusses how this index has fallen from extreme greed levels, suggesting a shift in market sentiment that is relevant to the discussion of the crypto market's current state.

💡Layer 2 Solutions

Layer 2 solutions in blockchain technology refer to protocols or side chains that sit on top of a blockchain to improve its scalability and reduce transaction fees. The script notes changes in trends within layer 2 ecosystems, particularly in Ethereum, which is a significant aspect of the ongoing conversation about blockchain scalability and efficiency.

💡Spot Bitcoin ETFs

Spot Bitcoin ETFs are investment funds that track the price of Bitcoin and are traded on stock exchanges. The video mentions the inflows and outflows of these ETFs, which is an important indicator of investor interest and market dynamics in the context of Bitcoin's performance and the broader crypto market.

💡Meme Coins

Meme coins are cryptocurrencies that are created as a joke or for fun, often based on internet memes. The script discusses the rise in attention towards meme coins, including those related to celebrities or events, which reflects a cultural phenomenon within the crypto space and its impact on market diversity.

💡Tap-to-Earn Projects

Tap-to-Earn projects refer to crypto-based initiatives where users can earn tokens by interacting with an application, often by tapping on their screens. The video highlights the surge in such projects, like Not Coin, which has attracted significant user engagement and attention, showcasing the innovative ways projects are attracting users in the crypto space.

💡Total Value Locked (TVL)

TVL is a metric used in decentralized finance (DeFi) to represent the total amount of value locked in a protocol or platform. The script refers to the TVL of Ethereum's layer 2 ecosystems, which is an important indicator of the adoption and activity level within these blockchain layers.

💡Airdrop Farming

Airdrop farming is a practice where users increase their on-chain activity in anticipation of receiving free tokens through airdrops. The video discusses how this practice has become competitive and has implications for the dynamics of token allocation and project community building.

💡Regulatory Landscape

The regulatory landscape refers to the set of rules and regulations that govern a particular industry or market. The script outlines key regulatory developments in the US, Hong Kong, and Turkey, which are crucial for understanding the legal and operational context of cryptocurrencies and their potential impact on the market.

Highlights

Crypto markets have experienced significant fluctuations recently, with major central banks like the Federal Reserve boosting confidence and potentially easing monetary policy by the end of the year.

The stock market has shown strength, with some indices reaching all-time highs, and tech stocks like Nvidia reporting strong earnings, while crypto has seen a rebound, particularly with BTC.

The SEC's unexpected approval of 19 B4 forms for several spot Ethereum ETFs on May 24th has significantly boosted market confidence in Ethereum and related assets on the Ethereum blockchain.

Inflows and outflows of spot Bitcoin ETFs are analyzed, showing a return to the $60 billion mark in May with significant daily inflows compared to selling from Bitcoin miners.

The fear and greed index indicates a shift from extreme greed levels in March to a more neutral scale, suggesting investor caution in the current market.

Criticisms have risen around projects with a low initial market cap and high fully diluted valuation (FTV), leading traders to explore more obscure low-cap gems and meme coins.

The surge in 'tap-to-earn' projects like Notcoin, which saw significant growth despite initial skepticism, has attracted attention to similar games on Telegram.

Layer 2 ecosystems within the Ethereum blockchain have seen changes, with a 20% increase in total value locked (TVL) but a decrease in activity level against their ETH pairs.

Despite a pessimistic outlook for L2s, certain projects without their own tokens have shown growth, possibly due to airdrop farming activities.

The report discusses skepticism around layer 2 solutions like Optimism and Arbitrum following the London upgrade and concerns over gas fees and price performance.

Meme coins related to the US presidential election and the return of Roaring Kitty have drawn investors to riskier assets and increased trading activity on DEXs like Uniswap.

Key transformations in top projects like LayerZero's introduction of a self-report civil activity program to combat Sybil attacks have been noted.

The TON ecosystem has seen growth through the success of Notcoin and Kazen, drawing users and promoting liquidity with minimal customer acquisition costs.

In the Bitcoin ecosystem, the focus has shifted towards projects like the Rune protocol, which has seen close competition with Audi, the largest BRC-20 token.

Investment and funding rounds in May saw a total of 156 projects disclosed with a value of over $1 billion, with a decrease in Series A funding rounds.

Chinese institutions have been active in crypto investments, with Anoka Brands and OKX Investments leading in the number of projects funded.

Regulatory changes in the US, Hong Kong, and Turkey have been highlighted, including the passing of the FIT 21 act and the introduction of new crypto asset regulations.

The report concludes that despite the lack of new retail investors, the crypto market is primed for growth, with developments in projects, regulation, and potential future influx of retail investment.

Transcripts

crypto has been nuts lately and everyone

has been trying to get a sense of what

the heck is happening what the hell is

happening well who better to explain

things than exchanges who have front row

seats to the show that's why today we'll

be summarizing a report from one of the

largest crypto exchanges out there it

explains what's been going on in the

market and also gives us an idea of what

could come next stay

tuned the report that we'll be

summarizing today is the monthly Market

insights report for June 2024 which was

published by kucoin research we'll be

giving you the juiciest details here but

we'll leave a link to the full report

for you in the description if you want

to read it for yourself now the report

Begins by looking at how recent macro

factors have boosted confidence in major

central banks such as the Federal

Reserve and how that could begin to ease

monetary policy between now and the end

of the year the reports authors also

note the strengthening of the stock

market with some indices even reaching

all-time highs and notes nvidia's strong

earnings report which has helped to fuel

tech stocks crypto on the other hand

experienced a rebound something clearly

seen with BTC on the weekly recent price

action notwithstanding the authors then

highlight how following speculation in

miday the SEC unexpectedly approved the

19 B4 forms for several spot ethereum

ETFs on the 24th of May indicating that

the SEC had reviewed and approved

various aspects of the ETF offerings

these include their trading rules

listing standards and their fee

structures however this doesn't mean the

ETFs themselves have been approved at

the time of shooting the SEC has yet to

give the green light for the ETFs to be

listed in the same way as the spot

Bitcoin ETFs we saw earlier this year in

fact the SEC have just announced their

decision to delay the ETFs because well

it's the SEC in any case the authors

explained that the ETF news has and I

quote significantly boosted Market

confidence in eth and its ecosystem

uplifting ethereum itself and related to

assets on the ethereum blockchain well

that's certainly one way of putting it I

mean just look at that God candle where

East price had jumped by almost 20% in a

single

day any way the next part of the report

looks at the inflows and outflows of

these spot Bitcoin ETFs which saw their

Collective AUM returned to the $60

billion Mark in May the authors also

highlight that there was around $200

million of inflows per day whereas there

was only $ 29.7 million of daily selling

coming from Bitcoin miners which works

out as around 450 BTC a day of course we

have also seen some sizable ETF outflows

since then

in retrospect this isn't surprising as

the open interest in BTC contracts have

increased dramatically but not for BTC

options this suggests that investors are

still cautious they back this up with

the fear and greed index which shows

that we have come a long way from the

extreme greed levels we saw in the

middle of March but let's face it it

could be better in fact at the time of

shooting the fear and greed index has

fallen from its high of 9 % to around

40% which puts us at the lower end of

the neutral scale quickly heading

towards fear it's crazy how much things

can change in just a couple of months eh

at least we know that you guys are

excited to be in the wonderful world of

crypto why else would you have liked

this video wait you haven't liked the

video yet and you haven't hit the

Subscribe button and ping the

notification Bell quick I'll just take a

sip of water while you guys sort that

out

so ma'am where exactly were you on the

night of the murder I was right here

detective all night long you got anyone

who can back that up you mean an alibi

yeah that's the one no I was all of my

lonesome and what exactly were you doing

all on your lonesome if you don't mind

me asking well keep it under your hat

detective but I was looking through the

coin bu deals page what's a coin Bureau

deals page when it's at home it's only

the place where you'll find the best

discounts and Promos in all of crypto

what do you mean I mean trading fee

discounts of up to 70% and sign up

bonuses of up to

$1,000 on some of the best exchanges

holy smokes they got discounts on

Hardware wallets too by any chance they

sure do detective like you wouldn't

believe well that sure sounds kind of

swell lady but just you give me one good

reason why I should believe a single

word you say you don't have to take my

word for a detective take a look at the

link down below and see for yourself she

wasn't kidding those deals really were

something else turns out that crypto

ain't such a bad place after all you

just got to know your way

around ah okay that's better right where

were we yes the next part of the report

the author's note a rise in criticisms

about projects with a low initial market

cap and a high FTV because this often

means that the tokens are launched at a

higher price making it difficult for

retail traders to turn a profit in case

you are wondering FTV stands for fully

diluted valuation and is the value you

get when you multiply a crypto's price

by its maximum Supply it's an important

and yet underrated metric which you can

learn more about in our recent video the

link to that is in the description

anyway this frustration has resulted in

many Traders turning to more obscure low

cap gems as well as meme coins

including those centered around

celebrities as it so happens we also did

a recent video about celebrity meme

coins you can follow us down that rabbit

hole using the link down below I know

we're really spoiling you for Choice

here today aren't we but aside from

throwing money into the mcoin casino

investors have also turned their

attention to the recent surge in tap to

earn projects namely not coin which the

authors know as being the only asset

launched by the binance launch pool in

May this launch was different because

not token launched within 100% of its

circulating Supply already in

circulation as you'll probably be aware

Knot's launch was intriguing to say the

least because in theory it created a lot

of sell pressure from the millions of

Players whose phone screen had a

permanent indent from all of the tapping

in practice however not's price and

traded volume actually saw significant

growth which has boosted the attention

towards other similar tap in games that

can be found on

telegram now in the next section of the

report the authors discuss changes in

the trends in layer tws mainly within

the ethereum ecosystem the first change

the authors note is that after the SEC

approved those 19 B4 filings e price

shot up by 21% in May to over

$3,800 as such the tvl or total value

locked of ethereum's layer 2 ecosystems

jumped up by 20% % reaching just under

$48

billion however this is only in terms of

their USD pairs the authors also note

that the tvl for l2s also went down by

4.4% against their eth pairs which

suggests the activity level on these

chains hasn't really budged when you

think about it this makes sense it's no

secret that retail investors haven't

really flopped back into crypto just yet

so as bullish as those ETF approvals are

looking

it doesn't mean that we'll see an influx

of new users exploring ethereum's tech

one step at a time though he folks

anyway this ties into the second change

noted by the authors they say that

despite l2's having as they put it a

pessimistic Outlook there are some layer

2 projects that have seen some positive

developments in fact the authors

highlight that layer twos that don't yet

have their own token such as Basse and

linear have shown significant growth

there's a good chance that this is

because more people that are using these

chains in hopes of farming airdrops

after all this is pretty much what Drew

so many people into not coin that we

mentioned earlier because people were

essentially farming points to earn a

future award say wouldn't it just be

great if there was a video somewhere

that showed you how you could Farm your

own airdrops and wouldn't it be even

better if you could just find that that

video by clicking the link in the

description

below anyway the authors then go on to

say that the activity level in the base

ecosystem can clearly be seen to be

growing and that it's actually captured

most of the hotspots within the layer 2

space they then deliver a bit of a

bombshell in their words and I quote

following the Danon upgrade the increase

in gas fees of eer to as well as the

price performance of optimism and

arbitrum have not been ideal this has

led to increasing skepticism about the

layer 2 sector they then go on to say

that people are less concerned with

transaction efficiency and are more

interested in high performance assets

such as mean coins and reaking solutions

now this is more significant than you

might think because ethereum's road map

is heavily centered around rollup

Solutions like optimism and arbitrum the

author's suggestion that people aren't

interested in these Solutions naturally

places doubts on the future direction of

ethereum anyway the authors then mention

that with eth's recent surge the market

has also seen a variety of meme coins

related to the US presidential election

particularly those centered around Trump

being well being Trump the authors also

highlight the return of roaring Kitty

and the effect this had on various meme

coins related to kitties and GameStop

you got to hand it to DJ they sure do

know how to keep things entertaining the

thing is these events have not only

drawn investors to riskier assets

they've also resulted in more people

using the ethereum blockchains to find

these gems which has turned supercharg

trading activity on dexes like Unis swap

the authors also note that in the

Bitcoin layer 2 space there has been one

standout that sorts tvl increase by over

100% in May you'll have to read the full

report to find out which project that

was will remind you you can find the

link to the report in the description

don't worry though because we will be

coming back to the Bitcoin ecosystem

later in this video now the next part of

the report highlights the key

transformations in top projects they

start with layer zero which introduced a

14-day self-report civil activity

program in case you weren't aware a Cil

attack is when a bad actor uses multi

mple accounts or nodes to manipulate a

network in order to take advantage or

even control of that Network in layer

Zero's case if someone were to sou

report they can receive 15% of the

expected allocation and won't be named

or shamed however those who are

identified as a civil attacker by others

receive no allocation and their names

are published for everyone to see what

unfolded from here was a bit chaotic the

authors explained that anti-il efforts

evolved from self-reporting to Mutual

reporting for bounties and with a

financial incentive dangling like a

carrot on a stick things got a little

out of hand as the author puts it and I

quote examples include employees from

farming Studios reigning to report

internal accounts large airdrop

addresses from certain projects being

reported and users targeting clusters of

civil addresses belong to high-profile

users or influencers for concentration

reporting basically it became all a

little bit of a dog eat dog scenario

wherein people were scrambling to blow

the whistle on anyone in order to farm

rewards moving on from layer zero the

authors know another farming attempt

this time in relation to arbitrum which

saw over 600,000 addresses receive free

tokens since then the air drop farming

has become a highly competitive

landscape with many projects seeing high

amounts of onchain interactions before

their token launch however the report

knows this to be a little bit of a

double-edged sword on the one hand

airdrop farmers who boost their address

activity will be inadvertently

supporting on the onchain data for

larger projects on the other hand

farmers can quite often be negative when

they don't get the allocation they

expect or when plans for airdrops are

delayed and yes there are really people

out there plenty who complain about

essentially free money this is is why a

lot of project teams treat airdrop

Farmers with indifference they're well

aware that just as many participants are

just in it for the gains and might not

be looking afterwards to help promote

the Project's development or Community

anyway in the next part of the report

the authors turned their attention to

the ton ecosystem highlighting again

that not coin had helped drawing a lot

of attention specifically not coin's

interaction with telegram helped to

easily draw around 6 million daily

active users which help promote the ton

ecosystem and boost its liquidity all

while keeping the cost involved with

customer Acquisitions to a minimum the

authors continue by saying that not

coins listing on binance represents a

shift in how centralized exchanges

approach listing new coins that's

because NCoin proved that these

platforms will support projects with

widespread user engagement rather than

focus on Innovative Tech or VC backing

of course not coin wasn't the only

telegram game that did well kazen was

another example with over 900,000 daily

active users kazen helped drawing over 6

million users to telegram according to

the report and you can bet your bottom

dollar that more games like these will

appear inevitably pushing Ton's price

even higher we happen to believe that

ton is one of the most underrated crypto

projects on the market market right now

and you can find out why by using the

link in the description now the next

part of the report takes a look at the

Bitcoin ecosystem in May brc2 Originals

saw little in the way of interaction as

more people were instead tuning their

focus on runes as well as Bitcoin at

layer tws staking and raking protocols

and shared security sectors running on

the Bitcoin Network as the report States

and I quote ordinals and brc2 will need

more Innovative Technologies and

products to regain market conditions

that being said the authors also note

that the legendary Bitcoin Pizza day

could also have rekindled interest in

BRC 20 inscriptions however the primary

focus has been the recently launched

runes protocol which went live at the

same time as the Bitcoin housing event

in April as a fun fact runes was created

by controversial developer Casey rmore

who also created ordinals you can learn

more about runes by watching our recent

video and if you already know where to

find that the link is down below anyway

one Rune asset highlighted in the report

is one called Dog go to the Moon with

the ticker dog it is a little bit of a

crazy long name for a token but hey

that's all part of Run's charm Now dog

was pointed out because of how close it

got to catching up with Audi which is

the original and largest bsc2 a token

for market cap for reference dog managed

to hit a market cap of $800 million

while Audi sat at $850 million at the

same moment in time cutting it very

close indeed the authors note that in

Audi's defense the market cap did climb

back to a$1 billion market cap but also

comments that this doesn't change the

fact that more user and developer

traffic was taking place on the runes

protocol but ladies and gentlemen that

Casey rhm off you he is like the gift

that keeps on giving even if you're not

a massive fan of what he's dishing out

anyo the next part of the report looks

at investment and funding rounds that

took place in May a total of 156

investment and financial projects were

disclosed with a value of just over $1

billion this was actually a decrease of

around $7 million from compared to April

but who's really complaining when it's

only a billion dollar according to the

report a proportion of the series a

funding rounds decreased from 10% to

7.77% whereas strategic stage financing

projects showed a slight increase from

15.73% to

18.45% notably the authors also

highlight that institutional investors

would rather exit a project following a

public listing in other words

institutions would prefer to dump their

bags on retail plebs like you and me to

make a quick bug how very thoughtful of

them the authors then note that evm

based blockchains remained the most

popular projects for financing which

includes projects like ethereum

obviously as well as arbitrum and

polygon meanwhile salana stood out as

the most financed nonm chain maintaining

its fifth Pace position other chains

include Phantom which entered the top 10

list and ton coin most likely for

reasons that we mentioned earlier next

the authors give a nod to Chinese

institutions in particular Anoka Brands

which invested in 15 projects and okay

expenses which invested in 11 projects

notably the most popular narratives here

were modularity liquid staking

derivatives and layer 2 Solutions anyway

it's always good to diversify right now

the final section of this report looks

at changes that took place in the

crypto's regulatory landscape namely

there were three key developments in May

that could each play a part in the

future of cryptocurrencies and digital

assets the first of these changes took

place in the US where the House of

Representatives passed the financial

Innovation and technology for the 21st

century act which is abbreviated to fit

21 thanks Satoshi for that because that

honestly that's a bit of a mouthful

Jokes Aside fit 21 is important because

it aims to outline some of the key

regulatory Frameworks for digital Assets

in the US in fact fit 21 is so important

that the authors know crypto Giants such

as coinbase Kraken and a16z jointly

wrote into to the house leaders to

express their support of passing the

bill so then why did this bill get so

much attention well in a large part it's

because fit 21 aims to give more

oversight to the commodi Futures Trading

commission or cftc rather than Gary

gansler and his buddies over at the SEC

in case you wondering this is huge

because the cftc is considered to have a

far less anti- crypto approach than the

SEC the authors also note that the bill

and a quote also establishes consumer

protection measures including rules

regarding the custody of customer assets

and their investment in the event of

bankruptcy as well as risk prevention

measures but I mean let's be honest it's

mainly the SEC thing unfortunately

though the cftc Commissioners have

already expressed that implementing fit

21 will take some time because it could

take months or even years for the US

Regulators to develop the regulations

needed Before the bill can become law

again one step at a time any who the

next change comes from Hong Kong where

in the Securities and Futures commission

has announced 11 applicants have been

granted virtual asset service provider

licenses more commonly known as a vas

license this regulatory framework is

designed to protect retail investors by

making sure that companies are providing

a safe and secure environment while also

preventing illicit activities like money

laundering or financing very very very

bad people if you catch my drift as well

as providing safety this also has

addressed the benefit of increasing

confidence in the crypto space and helps

Hong Kong position itself as a global

crypto Hub attracting businesses and

talent to the region apparently though

not every company sees vasp licenses as

a solution because several companies

have also withdrawn their vast

applications these aren't listed in the

report but they include Spark fintech

limited an affiliate of bybit and

perhaps most notably okx the reasons for

these withdrawals are unclear although

several industry experts have speculated

that the complexity and costs that are

associated with compliance with these

new regulations are the main

factor anyway the third and final

regulatory change comes from Turkey who

are planning to submit a new law to

regulate crypto assets in an effort to

reduce the risk involved with crypto

trading turkey's new law will also help

others to align with other International

regulatory bodies while also bringing on

new taxes of crypto

transactions it's no wonder then that

mhmed simek the minister of finance of

turkey has been heavily backing this law

coming into play now this law would be

pretty significant if you watched our

recent summary of aaa's crypto adoption

report you might recall that turkey is

the third largest adopter of

cryptocurrency in no small part due to

hyperinflation in fact in 20124 the

projected annual inflation change is

almost 60% it's no coincidence then that

turkey has been trying to prevent

further damage by preventing crypto's

usage even going as far as to ban

cryptocurrency payments in April 2021

anyway the point here is that when a

country with this much adoption in

introduces new laws you can be sure the

rest of the world will be watching so

then that brings us all to the end of

this report but what does this all mean

for the future of crypto well if it

wasn't already obvious it's clear that

even without the sudden influx of new

retail investors the cogs are still very

much turning there are developments not

only within projects themselves but also

in terms of Regulation and recall this

report is only for one month of the year

and it's really safe to say that a lot

has happened in that time the thing is

each of these developments mean that

crypto markets really are primed to go

parabolic once again and once retail

just finally come flooding back and make

no mistake they are coming I mean think

about it while retail has been away

there have been speculation about

whether we're even really in market and

yet despite all of this we've also seen

those all important spot Bitcoin ETFs

being approved we've also seen BTC

hitting its new all-time high and let's

not forget it's incredibly likely that

we're about to see a similar story with

ethereum combine this with an improved

regulatory backdrop and what you're left

with is a recipe for more people to come

to the party and for more people than

ever before to stick around sure the

fear and greed index might be painting a

bleak picture on the surface but again

this is more bullish than bearish that's

simply because this could very well be

the last chance we have to accumulate

whatever cryptos we believe to have the

most potential before we see prices go

to the moon it's almost a cliche to say

we're still early but if you're still

here despite the lack of exper interest

then congratulations because you have

front run billions of dollars of

investment even at this point in the

market cycle if you manag to watch our

recent bitcoin price prediction video

you'll know exactly how early we still

are all we need to do in the meantime is

to be patient this is the perfect time

for you to do your own research stack

those sets and hoddle just remember to

keep all of your gains safe by storing

it on a hardware wallet and if you're

looking for the best place to find those

Hardware wallets then look no further

than the coin Bureau deals page where

you can actually find discounts on some

of the best devices in the industry and

the link to that wonderful resource is

in the

description and that is all for today's

video guys did you enjoy the video let

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thank you all so much for watching this

is Jessica over and out

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