It’s been one of those weeks where everything happens at once.

Fan tokens have been mooning again, FTX is about to drop a $16B 'stimulus check' on the market, and token unlocks are coming in hot.

On the TradFi front, Bitcoin ETF flows are looking solid while ETH whales keep dumping.

But at least some small airdrops will be hitting your wallets after Scroll and Swell announced their allocation checkers (you may be disappointed - especially on Scroll - check out our thread here).

⛓️ ONBOARDING THE NEXT WAVE OF USER ADOPTION: CHAIN ABSTRACTION

The proliferation of consumer apps, powered by different blockchain stacks and token economies continues to fragment the ecosystem, increasing the barriers to entry for the mass retail market. This drives the demand for cross-chain interoperability, as users seek out a seamless experience for their on-chain interactions.

Chain Abstraction offers a unified, user-friendly interface that minimizes friction and bridges users to dapps, and vice versa.

Through the integration of Smart Accounts and Account Abstraction, Chain Abstraction delivers 3 main benefits:

1. ERC-20 tokens for gas (EIP-4337 removes the need for bridging native tokens)

2. Wallets Consolidation (Eliminating the hassle of private keys)

3. Accessibility to dApps (Reduce the complexity and cost for developers to deploy across multiple chains)

Despite the majority of attention being focused on key themes such as AI, Meme, and DeFi, Chain Abstraction has been gaining momentum, with mindshare increasing by ~8x since the start of the cycle.

Essentially, Chain Abstraction strives to be the “one size fits all solution”, serving as the gateway to mass Web3 adoption.

One of the biggest use cases thus far is the introduction of Rabby’s GasAccount.

Rabby utilizes DeBank’s L2 in its provision of universal gas payments; Users can on-ramp via USDT or USDC from mainstream chains including Arbitrum, BNB Chain, Optimism, and Polygon, starting from $20.

The fee structure includes the estimated max gas fee for the transaction and a small transaction fee for Rabby to send gas to your address. Rabby does not charge any additional fees and any unused gas stays in your account, but this would also mean that it would cost ~2-3x more expensive than the native token gas fee - a small price for convenience but in the long run could lead to more dissavings (especially during congested network periods).

Try it out today if you haven't!

📈 BTC PRICE ACTION

Gm frens!

I have decided to start covering BTC from now on as it’s the main market to watch. If ETH ever becomes more interesting again, I might switch over. But seeing what BTC does will give us a better overall idea of what the crypto market is up to.

So here we are on the weekly and let’s go through it from left to right. BTC quite violently reached its ATH at around 70k and pulled back into the 50 EMA which is where we’d expect a bounce. It bounced and made another run at the 70k level but couldn’t push higher, grabbed liquidity, and dumped down.

From there we expected to accumulate and continue the run to new ATHs eventually. Accumulation schematics often look like boxes or wedges and happen below the EMAs. Once the big composite operators accumulate enough of the underlying asset, it’s free to continue its mark-up.

Price gets above the EMAs again, the EMAs themselves start sloping upwards and price moves higher. Usually we see price impulsing higher and then going sideways for a bit via re-accumulation. This cycle continues until we once again reach a local top and break down for a deeper accumulation.

Right now price is consolidating around the previous ATH. From here we can either see another re-accumulation for the purpose of continuation (green scenario) OR a local distribution (red scenario). In case of a distribution, our expectation will be a break down lower, once again accumulate below the EMAs and then break higher again to continue the uptrend.

Those are both bullish scenarios. But of course this local distribution could also be the beginning of a new downtrend, we have to keep that in mind. The HTFs point to a bullish market though, so for now we should assume bullish scenarios.

• HTF bullish market

• Trending above 50 EMA

• Consolidating around previous ATH

• Expectation is bullish

One last thing to add - this current consolidation has been going on for over 200 days, so I expect it to continue consolidating for weeks/months to come. And since I’m a trend follower, I will not be trading any cryptos until the market shows me a clear directional cue, hopefully, a bullish one. Until that happens -

Trade responsibly and I’ll see y’all next time!

🔍️ MARKET WATCH

Crypto Weekly Roundup:

• Project updates & curated summary

• Sector performance: Fan tokens outperforming

• Upcoming token unlocks

• US approves FTX bankruptcy plan (Stimulus Check)

• BTC/ETH ETF flows: Bitcoin inflows positive, Ethereum with zero; ETH ICO whales selling

Project Updates:

• Oct 7: FTX court hearing on $16b cash distribution

• Oct 8: HBO doc claims to reveal Satoshi's identity

• Oct 8: Saga ($SAGA) Vault Five distribution

• Oct 8: NvirWorld ($NVIR) launches Neural Coin

• Oct 9: DEAPCOIN ($DEP) service enhancement update

• Oct 9: Stacks ($STX) initiates Nakamoto upgrade

• Oct 10: Gods Unchained ($GODS) releases "The Tower of Dread"

• Oct 13: Dash ($DASH) releases new privacy features

• Mantra ($OM) mainnet launch expected

Token Unlocks (Oct 8-14):

• $APT: $99.30M (2.25%)

• $SOL: $78.57M (0.11%)

• $WLD: $74.45M (7.32%)

• $TAO: $46.17M (0.97%)

• $OP: $21.08M (0.99%)

• $TAIKO: $19.80M (15.62%)

Macro Events:

• Oct 9: FOMC minutes

• Oct 10: CPI report (Expected: 2.3%)

FTX Update:

• Restructuring plan approved, creditor fund distribution to begin soon!

Trump Project:

• World Liberty Financial ($WLFI) announces token sale

Crypto Sectors Performance this week:

The fan token Sector soared this week! $OG jumped 144% to $11.17, while $LAZIO, $SANTOS, $PORTO, and $ALPINE saw gains between 34-53%. This followed Elon Musk pumping up Steelers fans at Sunday's game. Meanwhile, gaming, Solana, Polkadot, and DeFi tokens dipped about 11% on average.

Source: Elon Musk hypes Pittsburgh Steelers fans following Butler rally speech | Sky News Australia

Weekly Average Returns by Sector:

Top Performers:

Token Unlocks:

The crypto market faces a major token influx this week. Over $450 million worth will be released in October between the 8th and the 14th. Aptos leads with $99 million in APT tokens. Optimism and TAIKO follow, each unlocking about $20 million. XAI and Cardano have smaller but notable releases. This surge in supply could spark market volatility.

Surprisingly, Aptos ($APT) is bucking the trend, gaining 10% despite its unlock. Meanwhile, other tokens facing unlocks aren't faring as well. Optimism ($OP), $XAI, and Cardano ($ADA) are down about 20% on average.

Tokens With Unlocks Cumulative Performance:

US judge approves FTX bankruptcy reorganization plan, creditors will soon be paid.

FTX's bankruptcy plan has been approved, marking a major turn of events in the crypto.

Key points:

1. Debtors will repay 98% of users about 119% of their claimed account value.

2. This comes roughly two years after FTX's November 2022 bankruptcy filing.

3. Users stand to receive nearly $16 billion, potentially acting as a "Crypto Stimulus package."

4. FTT, FTX's token, surged to $3.43, up 12.36% in 24 hours.

This resolution is particularly noteworthy given FTX's dramatic collapse in November 2022, which sent shockwaves through the entire crypto market.

FTX Claims Distribution:

FTX claims are worth $16.5B, which is more than Michael Saylor's holdings and exceeds Mt. Gox repayments.

Bitcoin ETFs Surge as Ethereum Faces Challenges with 0 Flows:

Bitcoin spot ETFs experienced a significant net inflow of $235 million yesterday, with the ETF net asset ratio reaching 4.72%. This positive trend contrasts sharply with Ethereum spot ETFs, which recorded no net inflows on the same day, according to data from Farside UK.

Adding to Ethereum's troubles, a notable ICO whale transferred 5,000 ETH to Kraken after recently selling $113 million worth of Ethereum over two weeks.

Whale $ETH holdings

🔑 KEY NEWS

MAJOR HEADLINES

• Bitwise files for spot XRP ETF

• FTX estate prepares to sell $38 million of locked Worldcoin tokens at a discount

• Visa introduces tokenized asset platform

• Franklin Templeton files for BTC & ETH Index ETF with SEC

• Grayscale launches AAVE trust

• UAE eliminates Value Added Tax (VAT) on all cryptocurrency and digital asset transfers

• Vitalik sells memecoins and addresses followers while Cardi B launches a scam memecoin

• Crypto.com filed suit against SEC after receiving Wells Notice

• FTX plan repays crypto customers in cash with interest

PROJECT UPDATES

• Eigen Layer responds to investor’s staking rewards, also addresses unauthorized token dumping worth $6M

• Drama between ZachXBT & Ansem

• Penpie Compensation Plan revealed as protocol is unpaused

• Coinbase adds $DEGEN to their roadmap

• AndreCronje calls out Aerodrome

• Chaos Labs reveals Liquity Protocol v2

• Scroll introduced to Binance launchpool while their tokenomics are revealed

• World Liberty Fi hints at upcoming token sale 

INTERESTING PROJECTS

• Hoenn Fi: Unifying LRT liquidity while isolating slashing

• Prismo: Accountability Chain

• Updraft: (Re)Staking Layer for DePIN

• Ether World: New AMM standard

• Cortex Protocol: L1secured by $SYN

OUR ECOSYSTEM ALIGNMENT

⚔️ A CALL TO ARMS

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Between the FTX payout and the plethora of token unlocks, the market’s about to get interesting, even if it’s not from the low-tier airdrop allocations. Whether you're bullish or playing it safe, there’s plenty to keep an eye on. Let’s see what next week throws at us!

In our newsletter, we may discuss projects or tokens in which we hold positions. While we aim to provide informative content, our views are not financial advice. Please conduct your research and consult professionals before making investment decisions. Crypto markets are volatile, and past performance doesn't guarantee future results. Invest responsibly, and be aware of the risks. Your capital is at risk, and we do not accept liability for any losses.