Gate Research: BTC Leads Rebound, Surpassing $112,000 | Plasma DeFi TVL Climbs to $5 Billion

Crypto Market Overview

BTC (+2.41% | Current Price: 112,462 USDT): Over the weekend, BTC dropped below $110,000 and briefly approached its lowest support level since September at $108,615. On Monday, the crypto market began a recovery rally, with BTC leading the rebound and breaking back above $112,000. After surpassing the 5-day, 10-day, and 30-day moving averages, BTC has continued its upward momentum. This recovery lifted the total crypto market capitalization back to $3.958 trillion, indicating renewed bullish momentum after a short period of consolidation. If BTC can hold steady above the $110,000 level, it will serve as a strong psychological support, likely attracting further institutional inflows and driving the market toward higher valuation levels.

ETH (+3.12% | Current Price: 4,121 USDT): After consolidating sideways over the weekend, ETH reversed course on Monday, climbing from $3,978 to $4,146, breaking above the 5-day, 10-day, and 30-day moving averages. However, on the 4h chart, the price quickly pulled back after spiking higher, retreating from the $4,150 level after encountering heavy selling pressure. According to Lookonchain, whale addresses accumulated over 430,000 ETH (worth $1.73 billion) in the past two days, providing strong demand-side support. Current resistance sits at $4,150, with support at $3,850.

Altcoins: With BTC and ETH leading the recovery rally, altcoins surged sharply, with FORM, ZEC, and COW among the top gainers. The Fear & Greed Index rose from 37 in the previous session to 50, signaling a shift from fear to neutral sentiment in the market.

Macro: On September 26, the S&P 500 gained 0.59% to close at 6,643.70; the Dow Jones rose 0.65% to 46,247.29; and the Nasdaq advanced 0.44% to 22,484.07. As of 02:00 AM (UTC) on September 29, spot gold traded at $3,777 per ounce, up 0.45% in the past 24 hours.

Trending Tokens

KAITO (+13.2%, Circulating Market Cap: $318M)

According to Gate market data, KAITO is currently trading at $1.33, up 13.2% in the past 24 hours, with trading volume surging to $225.1M—22.3 times higher than last Friday. KAITO is the native token and foundational building block of the AI-powered InfoFi network. Leveraging artificial intelligence, the Kaito platform indexes a wide range of web3 content that is difficult to access via traditional search engines, including social media, governance forums, research, news, podcasts, and conference records.

KAITO has recently delivered an eye-catching performance, with much of the hype stemming from its Launchpad, where over $170M has recently been committed to projects such as Everlyn and Play AI. Through its Capital Launchpad platform, Kaito AI is systematically building an ecosystem for early-stage project financing. The core of this model lies in Kaito’s use of AI-driven data analytics and community influence to provide selected early projects with full-stack support from fundraising to market outreach. Kaito positions itself as a bridge connecting quality projects with community capital, rather than merely serving as a token issuance tool.

FORM Four (+23.11%, Circulating Market Cap: $465M)

According to Gate market data, FORM is currently trading at $1.21, up 23.11% in the past 24 hours. Four (FORM) is a rebranded version of the original BinaryX (BNX) token, marking a major evolution in the project’s vision. The token plays a central role on the Four.meme fair launch platform, which was incubated by the team and went live on July 3, 2024. Four continues to drive innovation in GameFi, IGO Launchpads, and decentralized finance solutions.

FORM is sparking a new wave of market speculation. Traders suggest this may be driven by a “short squeeze,” forcing short positions to exit. Derivatives data from Coinalyze show a shift to positive funding, with open interest nearly doubling to $26M, indicating that traders have accumulated long positions. Market focus is on whether FORM can hold above $1.14 and push toward $2.29.

COW Cow Protocol (+14.28%, Circulating Market Cap: $174M)

According to Gate market data, COW is currently trading at $0.34, up 14.28% in the past 24 hours. CoW DAO is an open collective of developers, market makers, and community contributors, dedicated to protecting users from potential risks in DeFi. The DAO has developed a suite of products focused on user protection within DeFi, including CoW Swap, CoW AMM, and MEV Blocker RPC, aiming to enhance security and minimize concerns related to impermanent loss and front-running.

The recent price surge in COW is primarily driven by strong buying momentum and substantial capital inflows, with demand outweighing exchange sell pressure. On-chain and trading data show continuous new liquidity entering the asset. This influx not only highlights growing interest in COW but also serves as a key factor supporting the token’s bullish momentum and its challenge of critical resistance levels. From a technical perspective, indicators such as EMA and MACD align with the bullish narrative, showing an uptrend characterized by higher lows and higher highs.

Alpha Insights

Plasma DeFi TVL Climbs to $5 Billion, Ranking Sixth in DeFi Deposits

According to Defillama data, just three days after the launch of the stablecoin L1 blockchain Plasma, its DeFi TVL has reached $5.5 billion, marking a 12.9% increase in the past 24 hours. This growth surpassed Base and Arbitrum, placing Plasma sixth in DeFi deposits by blockchain. Currently, 17 protocols are integrated on the Plasma chain, with 24-hour DEX trading volume at $215.47 million. Plasma’s official lending vaults now hold $2.91137 billion in deposits, with an APY of 23.85%.

The TVL surge is largely driven by users locking assets in Plasma lending vaults and partner DeFi protocols to earn the network’s native token, XPL. Essentially, the new Layer 1 blockchain Plasma follows a typical “high-yield-driven capital inflow” model, with its lending vaults offering near 24% APY and incentivizing participation with XPL.

Plasma’s recent surge has had a significant impact on the DeFi sector, signaling a major shift in the decentralized ecosystem and intensifying competitive dynamics. This development highlights Plasma’s growing ability to attract financial applications on its Layer 1 network.

ApeX Announces APEX Token Buyback Program with $12 Million Initial Funding

On September 29, Perp DEX ApeX announced the launch of its APEX token buyback program. The team will commit $12 million from past revenues as an initial one-time investment to kick off the initiative. Starting this week, 50% of ApeX Protocol’s daily revenue will be allocated to repurchasing APEX tokens from the open market. Combined with the committed $12 million, the buyback ratio will gradually increase over time, reaching up to 90% of total revenue. All repurchased tokens will be transferred and locked into an on-chain public address, fully transparent to the community.

ApeX’s announced buyback plan represents a classic tokenomics management strategy, designed to enhance token value and community confidence through market operations and financial commitment. By committing $12 million upfront and pairing it with 50% of future protocol revenue for open market repurchases, the project demonstrates its emphasis on long-term value support. The increasing buyback ratio (up to 90%) and the on-chain lock-up mechanism further reinforce transparency and credibility.

ETH Spot ETFs Record Largest Weekly Outflows Last Week

Last week, ETH spot ETFs continued to underperform, with nine products experiencing net outflows for five consecutive days, totaling $795.8 million—the largest single-week outflow on record. On September 27 alone, $248.4 million was withdrawn. This outflow surpasses the previous weekly record of $787.7 million on September 5. The pullback correlates with ETH’s 10.25% price decline over the week. Currently, ETH is down 11.08% compared to the past month, and the outflows indicate growing investor panic.

There are likely two contributing factors. On one hand, regulatory uncertainty casts a shadow over the crypto sector. Hesitation around approvals of altcoin ETFs has injected caution into the market, prompting startups and retail investors to consider alternative assets rather than rely solely on ETF products. On the other hand, market analysts note that the significant outflows from ETFs are not impulsive, but reflect strategic adjustments by major institutions such as Fidelity and BlackRock.

Notably, in contrast to these ETF outflows, recent on-chain metrics show investors accumulating ETH directly, signaling growing demand for asset management. This trend may reinforce ETH’s market position and provide greater resilience against economic turbulence.


References

• Gate, https://www.gate.com/trade/BTC_USDT
• Farside Investors, https://farside.co.uk/btc/
• Gate, https://www.gate.com/trade/ETH_USDT
• CryptoDNES, https://cryptodnes.bg/en/three-altcoins-surge-as-market-finds-pockets-of-momentum/
• CryptoDNES, https://cryptodnes.bg/en/apex-alpine-and-humanity-protocol-dominate-momentum-charts-despite-market-weakness/
• Blockchainreporter., https://blockchainreporter.net/plasma-network-tvl-surges-past-4-947-billion-overtakes-base-to-become-the-sixth-largest-blockchain-in-defi-investment/
• X, https://x.com/OfficialApeXdex/status/1972294501160141307
• OneSafe, https://www.onesafe.io/blog/ethereum-etfs-unprecedented-outflows-market-turbulence
• Gate, https://www.gate.com/crypto-market-data
• Coingecoko, https://www.coingecko.com/en/cryptocurrency-heatmap

Gate Research is a comprehensive blockchain and cryptocurrency research platform that provides deep content for readers, including technical analysis, market insights, industry research, trend forecasting, and macroeconomic policy analysis.

Disclaimer
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