Gate Research Institute: Mainstream zone rebounds and rises | Gate Layer on-chain address count exceeds 100 million

Encryption Asset Overview

BTC (1.38% | Current Price 108,381 USDT)

The BTC price, after experiencing a significant drop around October 17, found temporary support near $103,500 and subsequently began to rebound. The short-term moving averages (MA5, MA10) achieved a golden cross upwards on October 19, driving the price to break through the $108,000 level, but faced some selling pressure in the $108,500–$109,000 range.

The current price is running above MA30 (approximately $107,800), indicating that short-term bullish momentum is still present, but there is significant pressure above. If BTC can stabilize at $108,000 and regain its position above MA10 ($108,700), it is expected to continue the rebound to the previous high range of $110,000–$111,000; on the contrary, if it falls below MA30 and drops below $107,000, the short term may retest the support area of $105,000–$106,000.

In terms of trading volume, after a surge in volume, it has gradually shrunk, indicating a weakening willingness to chase higher prices. Overall, the short-term trend is slightly neutral to bullish, and attention should be paid to the gains and losses in the range of $107,800–$108,700, as a breakthrough or breakdown will determine the subsequent direction.

In addition, on October 17, the net outflow of BTC ETF reached 366 million USD in a single day, with BlackRock's IBIT inflow of 268 million USD and Fidelity's FBTC outflow of 67.4 million USD.

ETH (2.36% | Current Price 3,956 USDT)

The price of ETH experienced a significant drop from October 16 to 18, hitting a low of around $3,674, followed by a clear rebound, reaching a local high of about $4,050 on October 20. However, there has been a pullback in the recent hours, weakening the short-term upward momentum. The current price (around $3,956) is retreating to seek support near the critical 30-period moving average (MA30, around $3,935), while the short-term moving average MA5 (around $3,968) has crossed below MA10 (around $3,982), forming a short-term bearish signal.

In terms of trading volume, the previous rebound had moderate volume, but the recent pullback has been accompanied by a gradual increase in trading volume, indicating some selling pressure.

In summary, the market is facing a directional choice in the short term, with the core focus on the effectiveness of the MA30 ($3,935) support: if this level can be maintained, then the pullback may be seen as a correction during the upward trend, and the market may consolidate before challenging $4,000 and previous highs again; on the contrary, if there is a significant drop below the MA30, the short-term rebound structure may be disrupted, posing a risk of further pullback to the $3,900-$3,920 area or even the $3,840 region. Currently, the bearish forces have slightly strengthened, and operations need to closely monitor the gains and losses of the MA30 support level.

In addition, on October 17, the ETH ETF saw a net outflow of $232 million in a single day, with BlackRock's ETHA experiencing an outflow of $146 million and Fidelity's FETH seeing an outflow of $30.6 million.

GT (0.31% | Current Price 15.91 USDT)

After experiencing a decline from October 16 to 18 and reaching a low of around 15.15, the price of GT has seen a significant rebound. However, since the rebound from the low on the 18th, the price has mainly been oscillating within the range of 15.80 to 16.10 USD, forming a recent consolidation pattern. The current price (around 15.91 USD) is fluctuating narrowly around three short-term moving averages (MA5, MA10, MA30), which are closely aligned and flat (around 15.90 to 15.95 USD), further confirming that the market is in a directionless consolidation state in the short term.

In terms of trading volume, the rebound on the 18th was accompanied by a significant increase in volume, indicating strong buying support at this low level. However, during the subsequent consolidation phase, the overall trading volume shrank, suggesting that market participants are quite cautious.

Overall, the GT price lacks clear directional guidance in the short term. In the future market, it is crucial to pay attention to the support level near 15.80 USD and the resistance level above 16.10 USD. If it can break through 16.10 USD with increased volume, it may continue the rebound trend; on the contrary, if it falls below 15.80 USD and loses the moving average support area, it may retest lower support levels.

Daily Price Fluctuation Tokens

In the past 24 hours, the encryption market has shown a general upward trend, with mainstream assets and altcoins rising together, and market sentiment has noticeably improved. BTC rose by 1.82%, ETH increased by 2.37%, leading the mainstream sector to rebound; SOL slightly increased by 0.69%, while XRP (+2.02%) and TRX (+2.05%) performed steadily.

The general upward trend further spread to the altcoin sector, with strong rebounds in MLN (+59.7%), AUCTION (+42.63%), TRU (+27.85%), and a rapid inflow of funds back into the DeFi sector, as market hotspots continue to heat up.

MLN Enzyme (+59.7%, circulating market value 40.1466 million USD)

According to Gate's market data, the current price of the MLN token is $13.21, with an increase of approximately 59.7% in the last 24 hours. Enzyme is a decentralized finance (DeFi) asset management platform for the cryptocurrency sector, designed to automate the fund management process through smart contracts, allowing users to create and manage tokenized investment tools without programming knowledge. Its native token, MLN, is used to pay platform fees and allows holders to participate in the platform's governance voting.

The recent surge in the price of MLN tokens is mainly influenced by the upcoming delisting of trading pairs and changes in liquidity. As the MLN/USDT and MLN/USDⓈ trading pairs will be delisted on October 23, the market's early reaction has intensified short-term volatility; meanwhile, the suspension of trading services since October 16 has caused a mismatch in supply and demand, further driving up prices. Some investors have chosen to sell off, while others have seized the opportunity to buy at low prices, resulting in a divided sentiment that has propelled prices sharply upwards.

AUCTION Bounce Brand (+42.63%, circulating market cap 63.1673 million USD)

According to Gate.io market data, the current price of the AUCTION token is $8.58, which has risen by approximately 42.63% in the last 24 hours. Bounce Brand is a decentralized token exchange platform that offers a “auction-as-a-service” suite, allowing users to create, participate in, and manage different types of digital asset auctions, including NFTs, across multiple blockchains. The AUCTION token is used for staking rewards, payments in the Bounce marketplace, and as a governance token, enabling holders to participate in protocol development decisions.

AUCTION, after experiencing a whale sell-off that triggered a nearly 60% drop, saw a rapid recovery in market sentiment, with prices rebounding strongly. The influx of buying and a surge in trading volume significantly enhanced market liquidity, providing robust support for the rebound. In addition, AUCTION is expected to launch a prediction market soon, allowing users to create and bid on prediction markets and earn multiple incentive mechanisms. This feature combines on-chain auction mechanisms with large-scale market odds, likely further enhancing the token's application value and market attention. From a technical perspective, AUCTION has broken through multiple resistance levels after hitting a low, demonstrating strong upward momentum, but the rapid increase in the short term still requires caution against correction risks.

TRU TrueFi (+27.85%, circulating market value 30.8939 million USD)

According to Gate market data, the current price of the TRU token is $0.023, an increase of 27.85% in the last 24 hours. TrueFi is a decentralized credit protocol that connects borrowers, portfolio managers, and lenders through smart contracts, offering unsecured loans, governed by the TRU token. It utilizes an on-chain credit scoring system to assess borrowers and relies on a DAO model to manage projects and voting decisions, while providing governance, staking, and liquidity features for TRU token holders.

TrueFi announced a partnership with Keyring Network to introduce zero-knowledge verification (zkVerified) technology into its tokenized treasury bills tfBILLS and the upcoming credit vault, ensuring security and private access to on-chain assets. This move not only represents a significant step for TrueFi in compliance and privacy protection but also further consolidates its technological advantage in the RWA sector. Following the news, market attention towards the application value and prospects of TRU has significantly increased, with the token price rising moderately and continuing to climb, while trading volume remains stable. Currently, TRU has broken through the resistance level of $0.0193, and technical indicators show an increase in bullish momentum, suggesting a continuation of the upward trend in the short term.

Hot Spot Interpretation

Gate Layer on-chain address count exceeds 100 million

Gate Layer ecosystem is continuously expanding. With the launch of core applications like Gate Fun and Gate Perp DEX, the number of on-chain addresses has officially surpassed 100 million, indicating a sustained increase in network activity and user participation. As a high-performance Layer 2 network independently developed by Gate, Gate Layer achieves multi-chain interoperability based on LayerZero, supporting cross-chain transfers of assets from mainstream public chains such as Ethereum, BSC, and Polygon. With its low-cost, high-efficiency architecture design, Gate Layer is accelerating its development into a comprehensive L2 ecosystem that integrates trading, entertainment, and development.

Gate Layer addresses have surpassed 100 million, marking the entry of its ecosystem into a phase of scaled growth. With LayerZero's cross-chain capabilities and the influx of traffic into the Gate ecosystem, this network is gradually establishing a positive cycle of “trading equals growth.” In the future, with the integration of more native applications and on-chain assets, Gate Layer is expected to become an important representative of the new generation of high-performance multi-chain infrastructure.

Solana TVL hits a three-year high, reaching 59.28 million SOL.

According to data from DefiLlama, the total value locked (TVL) on the Solana network currently reaches 59.28 million SOL, setting a new high in nearly three years. This is the first time Solana has surpassed this level in SOL valuation since mid-June 2022. Historical data shows that the peak TVL on the Solana network occurred on June 13, 2022, when it reached 68.13 million SOL. The current growth trend indicates that the Solana DeFi ecosystem is continuously recovering, with a clear momentum of capital inflow.

Solana's TVL has reached a three-year high, indicating that its ecosystem is re-entering an expansion phase after a long period of adjustment. With the increasing activity of on-chain DEXs, stablecoins, and yield protocols, confidence in Solana is gradually recovering. If the price of SOL rises in tandem with TVL, Solana is expected to return to the mainstream public chain camp in the new round of the DeFi market cycle.

Aave V4 will support diversified collateral assets, further expanding the boundaries of DeFi financing.

Aave founder Stani Kulechov recently announced on social media that Aave V4 will introduce a new category of collateral assets, expanding the financing capabilities of DeFi. The new version will not only continue to support traditional encryption collateral but will also cover various types of assets such as stocks, ETFs, various funds, bonds and fixed income products, private credit, real estate and mortgages, commodities, and accounts receivable, providing a broader scope for financing and liquidity scenarios in decentralized finance.

The upgrade of Aave V4 marks the gradual extension of DeFi into the world of real assets, breaking through the limitations of single cryptocurrency collateral. By introducing traditional assets such as stocks, ETFs, and real estate, Aave is expected to attract more institutional capital while enhancing the overall asset diversity and risk diversification capability of the protocol. This not only accelerates the integration of DeFi with traditional finance but also provides users with richer collateral options and more flexible financing strategies. However, how to effectively assess the on-chain value and risks of non-encryption assets will be key to the protocol's ability to operate steadily in the future. <br> Reference materials:

• Gate, https://www.gate.com/trade/BTC_USDT
• Farside Investors, https://farside.co.uk/btc/
• Gate, https://www.gate.com/trade/ETH_USDT
• Farside Investors, https://farside.co.uk/eth/
• Gate, https://www.gate.com/trade/GT_USDT
• CoinGecko, https://www.coingecko.com/en/cryptocurrency-heatmap
• Gate, https://www.gate.com/price
• Gate Layer, https://www.gatescan.org/gatelayer
• DefiLlama, https://defillama.com/chain/solana?currency=SOL
• X, https://x.com/StaniKulechov/status/1979516545241055341

<br> Gate Research Institute is a comprehensive blockchain and encryption research platform that provides readers with in-depth content, including technical analysis, hot insights, market reviews, industry research, trend forecasts, and macroeconomic policy analysis.

Disclaimer Investing in the cryptocurrency market involves high risks. Users are advised to conduct independent research and fully understand the nature of the assets and products being purchased before making any investment decisions. Gate shall not be liable for any losses or damages resulting from such investment decisions.