Signs of recovery in the crypto market are emerging, and future development is worth looking forward to.

Recently, as inflation pressures in the United States have eased, positive signals have appeared in traditional financial markets, and the crypto market has also welcomed a phase of rebound. In July, the U.S. CPI was 8.5%, lower than market expectations. Although it remains at a high level, it has shown signs that inflation may be peaking.

From a purely "wealth destruction" perspective, this year's crypto market decline far exceeds any previous bear market in history. The collapse of Luna in May directly wiped out $60 billion in market value, triggering a series of chain reactions. In June, it plummeted again by $10 billion, with several large institutions going bankrupt, as the market experienced a severe deleveraging.

However, from an optimistic perspective, it is difficult to see such a large-scale sell-off in the short term. This round of bottom may become a strong support in the future. In the coming period, the market may experience a horizontal consolidation phase, especially for Bitcoin, where the rebound may lag behind some altcoins with clearer narratives.

Currently, Ethereum is the main liquidity asset available for staking by major players before the merge, thus having a better short-term narrative than Bitcoin. Technically, as long as the support at $1650 holds, it is almost a certainty that Ethereum will reclaim $2000 during the merge in mid-September.

It is worth noting that meme coins like DOGE and SHIB have been performing actively recently, which may indicate that a new round of market trends is about to arrive. Historically, DOGE/BTC often takes the lead before a crypto market trend appears.

In addition, projects like Solana, Chilliz, and XMON are also worth paying attention to. Solana's recent network upgrade is expected to enhance performance, Chilliz continues to expand in the sports and entertainment sectors, and sudoswap behind XMON provides new ideas for NFT trading.

Looking to the future, the Ethereum merger is currently the focus of the market, but we also need to pay attention to longer-term trends. Emerging narratives worth noting include: Layer 2 solutions, privacy DeFi, cross-chain interoperability, on-chain options, zkEVM, new public chains, chain games, and more. Overall, the crypto market is in a good window period, and future developments are worth looking forward to.