What are the big events in the encryption market in February?

Author: theDefiinvesstor, Defi Researcher Translation: Shan Ouba, Bitchain Vision World

Will the cryptocurrency market rise or fall in February?

Interestingly, from the perspective of historical data, February has always been one of the best months for Bitcoin. In the entire history, only two February Bitcoin fell.

For ETH, the situation is even better, because ETH has only settled in February in its history.

But at the same time, Bitcoin has never closed for 6 consecutive months. In the past 5 months, Bitcoin has been in a state of only rising.

But no matter what the price trend is about to appear, this month will be a month of narrative and news traders.

The following is a major event that is expected to occur in February:

1. Hong Kong’s first spot BTC ETF

A few weeks ago, Harvest Global Investments, a large asset management company, applied for the first spot BTC ETF in Hong Kong.

Another financial giant Venture SMART Financial Holdings has used the first quarter of 2024 as the goal of launching BTC ETFs.

In addition, Hong Kong regulators have confirmed in December that they are considering accepting the application of the spot Bitcoin ETF.

The goal of Harvest Global Investments seems to launch Hong Kong’s first spot Bitcoin ETF after February 10.

It sounds good, but maybe Hong Kong will approve the spot BTC ETF this month.

In addition, in case, Venture Smart Financial Holdings revealed that they plan to launch existing ETH ETFs in Hong Kong in the second quarter.

The launch of the spot Bitcoin ETF in the United States has undoubtedly achieved great success. Although the grayscale brought huge selling pressure, its total net flow still exceeded 1.5 billion US dollars.

Hong Kong’s spot Bitcoin ETF may also attract a lot of funds.

2. Starknet release tokens

StarkNet is one of the key projects in the Ethereum L2 field, and one of the earliest ZK-Rollup Layer 2 networks based on Ethereum.

Although there is no official confirmation, many people familiar with the Starknet ecosystem expect that the STRK token will be launched in February.

The project team has confirmed that they have made a snapshot for token distribution more than 60 days ago, so token issuance should not be too far.

Why is this important?

Every time a major L2 project announces its tokens, its ecosystems usually see the surge in activities and TVL after the tokens generation incident.For example, in the case of Arbitrum, its TVL increased by 500 million US dollars within a week after the ARB token was confirmed.

Many ARBITRUM ecosystem tokens have also soared when the ARB tokens were launched for the first time, and then they gradually sold after the ARB token generation event.(Because token release is ultimately proved to be the “Sell-The-News” incident.)

In the next few weeks, the StarkNet ecosystem token may also happen, so if you trade narrative, you need to remember this.

3.eigenlayer deposits are reopened

Eigenlayer, the largest re -pledge agreement, will open the deposit again.

They canceled the personal limit of the 200,000 ETH of LST, but now the upper limit of the re -pledged point of any liquidity pledged token or liquidity reinsurance is now 33%of the total number of future issuance.

Personally, I am participating in the EIGENLAYER airdrop with a relatively large proportion of ETH holdings, because I think this is one of the best income opportunities of ETH.

I will soon release a topic to introduce some reset strategies that I use to maximize ETH income+airdrop distribution.

However, in short, I am using 4 liquidity re -pledge protocols to obtain EIGENLAYER airdrop:

KELP DAO-Each RSETH currently cast with Kelp can get 100K Kelp points rewards, with limited time.

EIGENPIE-Before February 12, EIGENPIE points increased doubled

Etherfi-Use Etherfi, 1 ETH can get 20 EIGENLAYER points for each eth

Renzo-Before February 11, every time you pledge 1 ETH can get 200 EZPOINT points rewards

Eigenlayer TVL is currently worth $ 2.1 billion.

It has grown too fast this year, and it will announce so many ecosystem airdrops every week. I expect the hype around it will not disappear quickly.

Next, the final test network of Eigenlayer Stage 2 is scheduled to be released on February 7.

The second stage will enable the re -pledker to eventually start entrusting its ETH to operators running actively verifying services.

The following is a wonderful overview of Eigenlayer’s second stage:

3.frax Finance launches L2

FRAX Finance is a DEFI product ecosystem based on Ethereum. The most popular products include stablecoin $ FRAX and mobile pledged token FRXETH.

The team has been developing FRAX’s own L2 blockchain, and it seems that only a few days left (the expected date is February 7).

FRAXTAL (FRAX’s L2 product name) is not just a simple split of Optimism. It will bring some interesting innovations:

GAS token flexibility: FraxTal will use FRXETH and FRAX as GAS tokens at the same time.
Block space incentive: Users, applications and developers who use the network will be rewarded by VEFXS (pledged version of FXS).
BAMM: The novel features of borrowing AMM (developed by the FRAX team) will be released within 1-2 months of Fraxtal, allowing users to perform leveraged operations on any token without a prediction machine.
Curve Finance and RA (DEX created by the Ramses Exchange team) has been confirmed that it will be deployed on Fraxtal.
FRAX Finance founder also made bold predictions that he expected Fraxtal to attract hundreds of millions of dollars in the first month.

Whether it will be realized still needs to be observed.At present, we don’t know many details of Fraxtal, but there may be more information sharing on the day of the release.

4. Tai Fang Dencun Upgrade: Final Test Network Open

The highly anticipated Ethereum Dencun upgrade the final test network will start on February 7.If the test is smooth, the upgrade is expected to be launched in March or April.

DENCUN upgrades have attracted much attention because it introduces “Proto-Danksharding” technology.Proto-Danksharding is expected to significantly reduce L2’s transaction costs to reduce the “rent” paid by L2 to inherit Ethereum security.

In the past two years, the L2 network has developed rapidly.If Dencun can meet the expectations of the community, it may attract a large number of new users to enter the Ethereum L2 network because it will make them more economical.

5. Major token unlock

At the beginning of the Crescent, another wave of tokens was about to be unlocked.

Wu Blockchain made a great form, listing the largest tokens expected to unlock in February.Two of them attracted my attention:

APT -$ 229 million APT (7.3%of its circulation supply) will be unlocked on February 11.
SAND -$ 94 million (9%of its circulation supply) will be unlocked on February 14.

In addition, it will unlock $ 330 million in Avax tokens on February 22.However, although the value of the US dollar looks great, Avax, $ 330 million, accounts for only 2.6%of its circulation supply.