The cryptocurrency market has surged again! On July 11, with improved regulatory expectations and ongoing liquidity easing, the crypto market rose for two consecutive days, with gains generally ranging from 3% to 10%. Bitcoin (BTC) and Ethereum (ETH) led the market, with BTC rising 4.27% in 24 hours, nearing $117,000; ETH performed exceptionally, rising 6.44% and successfully breaking the $3000 mark.
Market performance overview
Performance of major cryptocurrencies:
$BTC Bitcoin: Up 4.27% in 24 hours, reaching a high of 117,548.2 USDT.
$ETH Ethereum: Up 6.44% in 24 hours, breaking $3000, reaching a high of 3002.99 USDT.
$SOL : Up 4% in 24 hours, currently at 162.7 USDT.
Bright sectors:
Meme sector: Up 10.56% in 24 hours, Fartcoin (FARTCOIN), Mog Coin (MOG), MemeCore (M) rose 17.76%, 20.71%, and 44.07%, respectively.
Layer2 sector: Up 10.42%, Arbitrum (ARB), Starknet (STRK) rose 14.41% and 15.97%, respectively.
AI sector: Up 10.26%, Virtuals Protocol (VIRTUAL), Worldcoin (WLD) rose 12.32% and 17.74%, respectively.
NFT sector: Up 9.85%, Pudgy Penguins (PENGU) rose 23.33%.
DeFi sector: Up 6.07%, Ethena (ENA) rose 11.54%.
RWA sector: Up 5.40%, Plume (PLUME) rose 9.96%.
Layer1 sector: Up 5.14%, Hedera (HBAR) rose 14.19%.
PayFi sector: Up 4.49%, Telcoin (TEL) rose 11.69%.
CeFi sector: up 3.08%.
Why is ETH performing so strongly?
Five major bullish logic:
Regulatory easing: The U.S. regulatory framework openly supports blockchain innovation, and digital assets are becoming a mainstream component of traditional investment portfolios.
Institutional accumulation: An increasing number of institutional investors are treating ETH as a core holding, driving up demand.
Foundation reform: The operational reform of the Ethereum Foundation has enhanced market confidence.
On-chain activity growth: The transaction activity and the number of tokenized assets on the Ethereum network have significantly increased.
Market confidence returning: Investors are full of confidence in ETH's future prospects, driving up prices.
The unique value of ETH:
Digital oil: ETH is not just a cryptocurrency; it is also the underlying asset that drives the Ethereum economy, providing 'fuel' for on-chain operations.
Censorship-resistant store of value: As the foundational layer of the global digital financial system, ETH has censorship resistance and trusted neutrality.
Native yield: By staking ETH, validators can earn returns, making it a productive asset.
Deflationary mechanism: As network activity increases, the supply of ETH will decrease, creating deflationary pressure.
Market outlook: Will the altcoin season come?
The significance of ETH breaking $3000:
The breakthrough of ETH over $3000 not only marks a strong rebound for itself but also raises market expectations for the arrival of the 'altcoin season.' ETH has always been seen as a barometer for altcoins, and its strong rebound may drive the recovery of the entire altcoin market.
Divergent market views:
Bullish view: Trader degentrading believes that there is an unprecedented phenomenon in the current market, where the open contract volume of multiple altcoins exceeds their market capitalization, meaning that massive short positions could push altcoins up due to short squeezes, thus triggering an 'altcoin season.'
Cautious view: DWF Labs executive partner Andrei Grachev believes that although the market is rising overall, most altcoins are still likely to underperform Bitcoin, with opportunities more concentrated in BTC and related stocks.
Technical analysis:
ETH: Although ETH faces strong resistance around $3000, in the long run, supported by the five major bullish logic, ETH is expected to continue its upward trend.
BTC: BTC reached a new high, market sentiment is high, and the fear and greed index reached 71, indicating that investors are extremely greedy.
Conclusion
The cryptocurrency market is on the eve of an epoch-making transformation, with ETH as digital oil, powering the global digital financial system. With improvements in the regulatory environment, increased institutional investment, and a return of market confidence, ETH is expected to welcome a structural reversal and further extend its upward trend in the long run. Whether the market will usher in an 'altcoin season' remains to be seen, but what is certain is that the carnival in the cryptocurrency market has just begun.
Data sources: SoSoValue, CoinGecko, Coinglass
Risk warning: Investment carries risks; proceed with caution. This article does not constitute any investment advice.
