The cryptocurrency market continued its upward momentum this week, maintaining bullish sentiment across major asset classes. With total market capitalization climbing to $1.43 trillion, investors are responding positively to regulatory developments, technological breakthroughs, and renewed interest in niche sectors like BRC-20 tokens, NFTs, and Layer 2 solutions. This report breaks down key movements in Bitcoin (BTC), Ethereum (ETH), and emerging Web3 trends shaping the landscape.
Market Overview: Bullish Sentiment Gains Ground
The broader crypto market posted solid gains, with a 25:3 ratio of winners to losers among the top 100 digital assets. Total market value rose by 2.8% over 24 hours, reflecting sustained institutional and retail confidence.
Bitcoin led the rally with a 5.0% weekly gain, briefly testing the $38,000 resistance level** before settling near **$36,500. Ethereum outperformed with an 11.9% increase, reclaiming the $2,000 mark and stabilizing above it—a strong signal of underlying demand.
Two standout performers emerged:
- KAS, up over 60%, driven by progress on its network scalability roadmap.
- ILV, also up more than 60%, following news of its upcoming launch on the Epic Games Store.
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Bitcoin & Ethereum: Stability Meets Volatility
Bitcoin (BTC): ETF Hype Fuels Price Action
BTC’s price action was heavily influenced by ongoing developments around spot Bitcoin ETF approvals. The asset surged toward $38,000 midweek amid reports that the U.S. SEC may be preparing for a coordinated approval window starting November 9—a potential game-changer for institutional adoption.
Despite the pullback, long-term fundamentals remain strong:
- Over 8 million addresses now hold at least 0.01 BTC (valued above $1,000), a recent all-time high.
- Long-term holders are accumulating, signaling confidence in future price appreciation.
- Global spot BTC ETF assets have surpassed $4 billion, indicating growing trust from traditional finance.
While the $38,000 level acted as resistance this week, sustained buying pressure could push BTC higher if regulatory clarity improves.
Ethereum (ETH): On the Rise with Record Option Volatility
Ethereum showed impressive strength, climbing to a high of **$2,043** before consolidating around $2,000. The surge coincided with increased trading volume and elevated options activity.
Notably, ETH’s implied volatility hit a yearly high, according to Greeks.live—often a precursor to major price moves. This suggests traders are positioning for significant upside or downside swings in the near term.
Additionally, DeFi and NFT activity on Ethereum remains robust:
- Daily NFT trading volume exceeded 10,000 ETH, the highest in three months.
- Layer 2 solutions continue to gain traction, reducing congestion and fees.
Sector Trends: Where Innovation Meets Demand
Layer 1 & Layer 2: Scalability in Focus
| Segment | Weekly Change | Top Performers |
|---|---|---|
| Layer 1 | +4.7% | $MUU, INTR, SOUL |
| Layer 2 | +17.5% | WETH, CULT, METIS |
Layer 2 networks saw explosive growth due to increased Ethereum usage. Projects like METIS gained traction as users seek faster, cheaper alternatives without sacrificing security.
Meanwhile, Sui’s Total Value Locked (TVL) surpassed $100 million, setting a new record and highlighting growing confidence in next-gen L1s.
DeFi & LSD: Yield and Liquidity Drive Gains
Decentralized Finance (DeFi) remained resilient with a 13.5% weekly increase, led by lesser-known but innovative protocols like CNS, BADGER, and FAB. Improved liquidity metrics suggest renewed user engagement.
The Liquid Staking Derivatives (LSD) sector rose 11.4%, fueled by ETH’s price rally. Tokens such as BRG, ETHX, and RETH benefited from increased staking activity and demand for yield-bearing assets.
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BRC-20 & NFTs: The Comeback of Digital Collectibles
BRC-20 Tokens: ORDI Ignites a New Wave
The BRC-20 ecosystem exploded this week with a staggering 113.8% gain, largely driven by surging interest in ORDI and its associated protocols.
Key highlights:
- BRC-20 creator announced plans to release version 0.9 of the BRC-20 specification.
- BitVM developers executed the first mainnet transaction using Blake3 hash locks in Bitcoin script, opening doors for enhanced smart contract functionality on BTC.
- New tokens like NALS and TRAC entered the spotlight, though short-term corrections may follow this rapid run-up.
This resurgence reflects growing experimentation within Bitcoin’s ecosystem beyond simple transfers—pointing toward a more programmable future for the network.
NFT Market Rebounds Strongly
NFT trading volume on Ethereum hit a three-month high, exceeding 10,000 ETH daily. Collections tied to gaming and utility—such as those linked to Illuvium—led the charge.
Illuvium itself surged 66% weekly, peaking above $89, ahead of its planned release on the Epic Games Store on the 28th. This marks a pivotal moment for blockchain gaming, bridging Web3 with mainstream platforms.
Additionally, NFT-focused tokens like XED, GSWAP, and CGG posted double-digit gains, indicating renewed investor appetite.
Regulatory Developments: Clarity on the Horizon?
Regulatory news dominated headlines this week, offering cautious optimism:
- The Hong Kong Securities and Futures Commission (SFC) is considering allowing retail investors to access spot crypto ETFs, potentially opening a major gateway in Asia.
- The U.S. SEC has reportedly entered discussions with Grayscale about converting GBTC into a spot BTC ETF, with analysts predicting a decision window starting November 9.
- Mike Alfred noted internal sources suggest the SEC may strategically time approvals before Thanksgiving to ensure fair competition among applicants.
These signals point to gradual but meaningful regulatory maturation—critical for long-term market stability.
Emerging Technologies: AI Meets Web3
Convergence between artificial intelligence and blockchain is accelerating:
- The Graph (GRT) unveiled a new roadmap featuring AI-assisted query capabilities—aimed at improving data indexing efficiency.
OpenAI launched GPT-4 Turbo, reduced API costs, added multimodal features, and introduced GPTs, enabling users to build custom AI agents.
- Over 92% of Fortune 500 companies and 2 million developers now use OpenAI’s platform.
- Weekly active users for ChatGPT exceeded 100 million.
- Elon Musk’s xAI team released PromptIDE, a developer tool enhancing AI prompt engineering workflows.
These innovations lay the groundwork for smarter dApps and autonomous agents operating across decentralized networks.
Frequently Asked Questions (FAQ)
Q: What is driving the recent surge in BRC-20 tokens?
A: The rally is primarily fueled by heightened interest in ORDI and upcoming protocol upgrades. Increased developer activity on Bitcoin via BitVM also contributes to renewed excitement around Bitcoin-based token standards.
Q: Are we close to spot Bitcoin ETF approval in the U.S.?
A: Signs point to growing likelihood. With SEC dialogues underway and a potential 8-day review window starting November 9, many analysts expect approvals by year-end—though final decisions remain uncertain.
Q: Why did Ethereum’s implied volatility spike?
A: Elevated ETH options volatility often precedes major price movements. It reflects trader anticipation of significant news—such as ETF decisions or protocol upgrades—leading to larger position builds.
Q: Is the NFT market sustainably recovering?
A: Early indicators are positive: rising transaction volumes, integration with mainstream platforms (like Epic Games), and utility-driven projects gaining traction suggest a healthier, more sustainable recovery compared to past speculative peaks.
Q: How does PYUSD factor into current market dynamics?
A: PayPal’s stablecoin (PYUSD) now has $158 million in circulating supply, signaling growing adoption of regulated digital dollars. Its expansion enhances fiat on-ramps and strengthens trust in crypto payments.
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