Summary

• BTC falls back after breaking $110,000, primarily fluctuating in the short term.
• ETH/BTC exchange rate rebounds slightly, with $2,700 as short-term resistance for ETH.
• Grayscale launches an AI asset sector, including tokens like VIRTUAL, KAITO, and AIXBT.
• Trump Media Technology Group announces a $2.5 billion Bitcoin treasury plan.
• SOL supply on CEX drops to 27.01 million, nearing the October 2022 low.
• Gate Launchpool launches ELDE, with a total prize pool of 1,000,000 ELDE.

Market Overview

Market Commentary

• BTC Market: After breaking above $111,000, BTC failed to hold and has shown volatility. The daily chart indicates strong support from buyers below. Profit-taking after hitting a new historical high has led to a lack of upward momentum. Current support is at $107,000, while resistance is at $111,000. Although ETF net inflows continue, they have not provided significant upward pressure. BTC is expected to fluctuate at high levels in the short term.
• ETH Market: ETH has followed the broader market’s volatility, trying several times to break above $2,700 and $2,600 without success. It remains around $2,500. The ETH/BTC exchange rate briefly rebounded but has since fallen back to around 0.025, with a market share of 9.7%. Despite ongoing net inflows into spot ETFs, the fundamental momentum is still lacking, and ETH may continue to show a sideways trend.
• Altcoins: Recently, altcoins saw a collective rally followed by a pullback, reflecting significant volatility. The Altcoin Season Index peaked at 27 but has since fallen to the 23-25 range, indicating a decrease in market enthusiasm. Although some sectors remain active, overall sentiment in the altcoin market is cautious, and adjustments are likely to continue.
• Futures Market: Over the past week, BTC has shown consistent net inflows, indicating strong institutional demand. Major ETF products contribute to positive market sentiment.
• Macroeconomic Data: Global stock indices rose this week due to easing trade tensions between the US and Europe. Former President Trump announced a delay in tariffs on EU goods, which has injected new momentum into trade negotiations. Overall market sentiment is affected by policy uncertainty and liquidity, with volatility expected to persist.
• Stablecoins: The total market cap of stablecoins rose slightly by 0.73% to $247 billion, with further inflows into the OTC market.
• Gas Fees: With the overall market recovering, Ethereum’s on-chain trading activity has notably increased. As of May 29, the average gas fee for that day was 3.72 Gwei.

Trending Sectors

This week, Bitcoin is fluctuating in a high range, while altcoins show mixed performances without a clear collective rise. According to Coingecko data, sectors such as AI Agents, DID, and DeFi have outperformed the market average, increasing by approximately 9.7%, 8.7%, and 5.7% respectively over the past seven days. The commonality among these three sectors is their high interest in technological or narrative development, all of which are recent hot topics.

AI Agents

AI Agents are becoming a key innovation driver in the cryptocurrency market. They optimize participants’ decision-making and operational efficiency through smart algorithms, data analysis, and automated trading. AI Agents can be used for market predictions, risk management, arbitrage opportunity identification, and even drive the automated governance of decentralized finance (DeFi) protocols. Their high-speed execution and data processing capabilities give them a competitive edge in volatile markets, attracting widespread attention from both institutional and retail investors. Over the past seven days, this sector has increased by 9.7%, with notable performers such as JAM, ARBUS, and JOS.

DID

The DID (Decentralized Identity) sector is an important part of the Web3 ecosystem, aiming to enable users to control their identity data and ensure privacy protection through blockchain technology. DID projects utilize distributed ledgers to provide users with verifiable digital identities, replacing traditional centralized identity management. They are widely applied in DeFi, NFTs, metaverse, and cross-chain interactions. By using cryptographic techniques and zero-knowledge proofs, they ensure the security and anonymity of identity verification, promoting data sovereignty and the adoption of decentralized applications. Over the past seven days, this sector has increased by 8.7%, with standout projects like BYB, WCT, and LGX.

DeFi

The DeFi sector is a core area of the cryptocurrency market, providing financial services without intermediaries through blockchain technology and smart contracts. DeFi reshapes traditional finance, encompassing lending, trading, derivatives, stablecoins, and yield farming, emphasizing transparency, accessibility, and decentralization. Protocols such as Uniswap, Aave, and MakerDAO attract global users through automation and community governance, promoting financial inclusion. The high yield potential and innovative characteristics of DeFi make it a market hotspot, though it also carries risks such as smart contract vulnerabilities and high volatility. Over the past seven days, this sector has increased by 5.7%, with notable performers like ZBCN, TRB, and SYRUP.

Focus of the Week

Grayscale Launches AI Sector Featuring VIRTUAL, KAITO, AIXBT, and More

On May 28, 2025, Grayscale announced the launch of a new Artificial Intelligence (AI) sector in the crypto market — its sixth sector — encompassing 20 assets with a total market cap of approximately $20 billion, accounting for 0.67% of the entire crypto market, making it the smallest sector by size. In comparison, the financial sector ranks third with a market cap of $519 billion. The new AI sector integrates tokens previously categorized under other sectors, with no change to index methodology. Grayscale stated that the small scale of the AI sector reflects the early-stage nature of the projects within it.

Grayscale’s introduction of a dedicated AI crypto sector, despite its modest $20 billion valuation, highlights the growing intersection of AI and blockchain. With a market share of just 0.67%, the sector underscores the nascent state of AI-driven crypto projects — signaling massive growth potential but also significant risk. Rather than adding new tokens, Grayscale reclassified existing ones, showing a cautious approach to avoid fueling bubbles. Compared to the $519 billion financial sector, AI remains in its infancy. While short-term hype may drive prices up, long-term value will depend on real-world AI integration. Grayscale’s move could influence investment trends, but investors should be wary of early-stage volatility and regulatory uncertainty.

Ondo Finance Launches On-Chain Securities Trading Platform on Solana

On May 23, SolanaFloor reported that Ondo Finance has launched “Ondo Global Markets” — a platform enabling the on-chain trading of public securities (including equities) on the Solana blockchain. With growing competition to migrate traditional financial markets onto blockchain, the platform plans to deeply integrate with the Solana DeFi ecosystem.

Solana’s high throughput and low fees have made it a top choice for real-world asset (RWA) tokenization. In 2025, BlackRock’s BUIDL fund migrated from Ethereum to Solana, showcasing Solana’s institutional-grade infrastructure. Ondo GM’s selection of Solana reflects the industry’s preference for high-performance blockchains, especially crucial in the securities market where real-time execution is key.

By supporting securities trading, Ondo Finance marks a major milestone in the RWA space. The platform offers low-cost, high-transparency investment options, preserving liquidity through order tokenization while enhancing composability via APIs and DeFi integrations. This move is expected to draw increased interest from developers, investors, and traditional financial institutions.

Trump Media & Technology Group Announces $2.5B Bitcoin Treasury Plan

According to Bloomberg, on May 27, Trump Media & Technology Group (TMTG) revealed it had signed subscription agreements with around 50 institutional investors for a private placement totaling approximately $2.5 billion. The raise includes $1.5 billion in common equity and $1 billion in 0% convertible senior secured notes, with proceeds earmarked for building a Bitcoin treasury. The offering is expected to close around May 29.

Following in the footsteps of MicroStrategy, TMTG aims to transform into a “Bitcoin-anchored enterprise,” leveraging BTC price appreciation to boost valuation. The plan aligns with its Truth Social platform and former President Trump’s “financial freedom” and “America First” narratives, bolstering his image as the “Crypto President” and accelerating the politicization of digital assets.

In the short term, the news has lifted Bitcoin prices and crypto-related equities, potentially inspiring similar moves from other companies — particularly those with political ties. However, the strategy carries notable risks: TMTG has weak fundamentals (significant losses, low revenue), and the large raise dilutes shareholders, causing stock price drops. Additionally, Bitcoin’s volatility poses financial threats, and the plan deepens crypto’s reliance on political capital, raising concerns over influence trading and regulatory scrutiny. Long-term success hinges on BTC performance, TMTG’s execution, and future U.S. crypto policy.

Key Market Data Highlights

Momentum, SUI’s Native DEX, Surpasses $3B in Trading Volume

Since its launch on March 27, 2025, Momentum — the native decentralized exchange protocol on SUI — has achieved over $3 billion in cumulative trading volume, setting a new record for the protocol.

Momentum adopts the innovative ve(3,3) tokenomics model, aligning incentives by giving 100% of emissions to liquidity providers and offering low slippage for traders. This creates a flywheel effect that accelerates volume growth. The $3B milestone confirms the model’s effectiveness within the SUI ecosystem. Previously, Momentum had already managed over $500 million in TVL through multisig asset management. Now, its rising DEX volume further cements its role as the “liquidity engine” of SUI, attracting integrations and collaborations across protocols.

Momentum’s growth reflects SUI’s accelerating ecosystem flywheel — validating the synergy between tokenomics and technical infrastructure. It also bolsters SUI’s positioning as a top contender among L1 chains. With recent wins like VARA licensing in Dubai and Franklin Templeton RWA collaborations, alongside Momentum’s data breakthrough, investor confidence is growing. The market is now pricing in SUI’s potential to break above $4 (with bullish option interest up 320% week-over-week), pointing to a $20B valuation opportunity.

SOL Supply on CEXs Drops to 27.01M, Near 2022 Low

According to Glassnode, between early March and now, the amount of SOL held on centralized exchanges has dropped from 37.22 million to 27.01 million — a 27.4% decrease — nearing its lowest point since October 2022.

This trend signals increasing decentralization, as users transfer tokens on-chain or opt to hold long term. The supply-side pressure relief supports a bullish outlook. Though SOL surged near $300 earlier this year before falling to a low of $95, it has since recovered and now trades above $170. On-chain data and price patterns indicate a potential bottoming phase. Coupled with a solid ecosystem, Solana is positioned to lead among L1s in the next market cycle.

TRON USDT Supply Surpasses 77 Billion, Overtakes Ethereum as Largest USDT Network

As of May 29, total stablecoin market capitalization has surpassed $245 billion. Behind this rapid growth is intense competition among blockchains. As a key liquidity layer, stablecoin issuance serves as a vital metric for a chain’s market recognition.

TRON’s USDT supply has grown from $48.8 billion in 2024 to $77 billion as of May 2025. This surge is attributed to TRON’s low fees and high speed, making it the preferred network for large volumes of USDT transactions — especially among retail users and in emerging markets. Additionally, TRON founder Justin Sun’s close relationship with the Trump family fuels further prospects. In May, Zack Witkoff, co-founder of the Trump-affiliated WLFI project, announced that WLFI’s USD1 stablecoin will also launch natively on TRON.

TRX, the native token of the TRON network, has shown relative strength over the years, consistently remaining in the top 10 by market cap. Since early 2024, TRX has more than doubled in price (over 150% gain), standing out among Layer 1 blockchains.

Market Opportunities

Gate Launchpool

This week’s key project: Elderglade (ELDE)

Elderglade (ELDE) is a major Web3 gaming innovation in 2025, combining AI, NFTs, and blockchain technology to build a deeply immersive fantasy gaming universe. The ecosystem features a real-time PvP mobile game and an upcoming MMORPG.

ELDE is the native token of the Elderglade ecosystem, serving multiple purposes including payments, NFT interactions, staking, and deflationary functions. Currently priced at $0.20, ELDE has a circulating market cap of $16.7 million. The project boasts over 11 million registered players and more than 3.7 million on-chain transactions, highlighting its strong user base and activity.

From a technical perspective, Elderglade leverages AI to dynamically generate maps and character behaviors, while supporting multi-platform access to overcome hardware limitations—giving it vast market reach. Since its listing on Gate in May, trading activity has surged. With the MMORPG launch and expansion into Asian markets on the horizon, ELDE’s long-term value and token demand in the GameFi sector is expected to grow.

Preparation

• Gate Account: Register and complete KYC
• Deposit Funds: Ensure your Gate account holds enough ETH or ELDE. This Launchpool supports only ETH and ELDE.

Staking

• Time Window: Until June 7, 20:00 Beijing Time
• Steps: Log in to Gate → Go to [Launchpool] → Select ELDE project → Click [Participate Now] → Enter staking amount and confirm
• Total Airdrop: 1,000,000 ELDE

Funding Weekly Recap

Multiple projects across infrastructure, developer platforms, and more successfully closed funding rounds this week. According to RootData, 12 projects announced financing between May 23 and May 29. Highlights include:

Conduit

• Raised: $36 million in a Series A round on May 28
• Investors: Dragonfly, DCG, Sound Ventures, Altos Ventures
• Overview: A stablecoin payments company helping fintechs and neobanks quickly launch crypto-based products. Their plug-and-play API enables users to build innovative products like high-yield savings accounts in just days. Conduit supports 14 fiat currencies across 9 countries, using stablecoins for low-cost, instant B2B cross-border payments via partners like Circle and LayerZero.

Stablecorp

• Raised: $1.8 million on May 23
• Investors: Coinbase Ventures, Side Door Ventures, among others
• Overview: Focused on building the infrastructure for the Canadian Dollar stablecoin (QCAD). Plans include on-chain FX liquidity and payment rail integrations. A structural overhaul is underway: reserves will be managed by an independent QCAD Digital Currency Trust with daily market cap reports, monthly reserve attestations, and annual audits. Operated by 3iQ and Mavennet Systems, QCAD previously received CAD $1.9 million from Circle Ventures in 2022.

Beam

• Raised: $7 million on May 27
• Lead Investor: Castle Island Ventures
• Overview: A fintech company focused on using stablecoin technology to enable fast, low-cost global payments. With plans to expand into Latin America, Beam aims to meet the region’s demand for efficient cross-border transactions and bolster DeFi adoption through its intelligent payment network.

Next Week to Watch

Token Unlocks

According to Tokenomist, significant token unlocks are scheduled over the next 7 days (May 30 – June 5, 2025). Top 3 unlock events:

• SUI will linearly unlock approximately $160 million worth of tokens. These will go to the Mysten Labs treasury, early contributors, and community reserves. The largest portion, worth over $70 million, will go to Series B investors.
• OP (Optimism) will unlock $25.2 million, or 1.9% of circulating supply. Includes 16.54 million OP ($12.65M) for core contributors and 14.8 million OP ($11.32M) for investors.
• ENA will unlock $16.5 million, or 0.7% of circulating supply.
  
  
  References：

• X, https://x.com/Grayscale/status/1927463971335909625
• defillama, https://defillama.com/stablecoins
• Glassnode, https://glassnode.com/
• Gate, https://www.gate.com/zh/launchpool/ELDE?pid=307

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Disclaimer
Investing in the cryptocurrency market involves high risk. Users are advised to conduct independent research and fully understand the nature of the assets or products before making any investment decisions. Gate assumes no liability for any losses incurred from such decisions.