Regulation & ETF
1. Data: The total net inflow of Ethereum spot ETFs yesterday was $24.2306 million, continuing six days of net inflows.
According to SoSoValue data, yesterday (Eastern Time, December 2), the total net inflow for Ethereum spot ETFs was $24.2306 million.
Yesterday, Grayscale's Ethereum Trust ETF ETHE experienced a single-day net outflow of $44.3624 million, with the current historical net outflow for ETHE at $3.411 billion. Grayscale's Ethereum mini trust ETF ETH saw a single-day net outflow of $0.00, with the historical total net inflow for Grayscale Ethereum mini trust ETH at $420 million. The Ethereum spot ETF with the highest single-day net inflow yesterday was BlackRock's ETF ETHA, with a single-day net inflow of $55.9183 million, bringing ETHA's historical total net inflow to $2.159 billion. The second highest was Fidelity's ETF FETH, with a single-day net inflow of $19.8999 million, bringing FETH's historical total net inflow to $844 million.
As of the time of writing, the total net asset value of Ethereum spot ETFs is $11.133 billion, with an ETF net asset ratio (market value compared to Ethereum's total market cap) reaching 2.56%. The historical cumulative net inflow has reached $598 million.
2. Data: The total net inflow of Bitcoin spot ETFs yesterday was $354 million, with the ETF net asset ratio reaching 5.49%.
According to SoSoValue data, yesterday (Eastern Time, December 2) the total net inflow for Bitcoin spot ETFs was $354 million.
Yesterday, Grayscale’s ETF GBTC experienced a single-day net outflow of $28.1118 million, with the current historical net outflow for GBTC at $20.549 billion. Grayscale's Bitcoin mini trust ETF BTC saw a single-day net inflow of $6.3610 million, with the historical total net inflow for Grayscale Bitcoin mini trust BTC at $729 million. The Bitcoin spot ETF with the highest single-day net inflow yesterday was BlackRock's ETF IBIT, with a net inflow of $338 million, bringing IBIT's historical total net inflow to $32.076 billion.
The second highest was Fidelity's ETF FBTC, with a single-day net inflow of $25.1350 million, bringing FBTC's historical total net inflow to $11.479 billion.
As of the time of writing, the total net asset value of Bitcoin spot ETFs is $103.909 billion, with an ETF net asset ratio (market value compared to Bitcoin's total market cap) reaching 5.49%. The historical cumulative net inflow has reached $31.058 billion.
3. WisdomTree submits XRP ETF S-1 application to the SEC.
According to an S-1 filing submitted to the SEC, WisdomTree has applied to the SEC for the WisdomTree XRP Fund, which is an exchange-traded fund (ETF) issuing beneficial common stock that will be listed on Cboe BZX Exchange, Inc. under the ticker 'TICKER'.
The trust's investment objective is to gain exposure to XRP prices, minus the trust's operating expenses and liabilities. The Bank of New York Mellon ('BNYM') serves as the trust's manager, fund accountant, and transfer agent.
4. Greeks.live: Bitcoin's short-term implied volatility has fallen below 55%, while Ethereum's short-term remains above 70%.
Greeks.live macro researcher Adam analyzed on the X platform that monthly deliveries have been completed, and implied volatilities for major terms have decreased to varying degrees compared to a week ago. The short-term implied volatility for BTC has fallen below 55%, while the medium to long-term implied volatility is also below 60%. The short-term implied volatility for ETH remains above 70%.
Industry Insights
1. Matrixport: Bitcoin ETF inflows reach a new high, confidence skyrockets with the $100,000 barrier.
Matrixport released a chart today stating that the monthly inflow of Bitcoin spot ETFs has soared to $6.5 billion, setting a historical record, far exceeding any previous month's record.
As Bitcoin prices continue to rise, more investors are being attracted to the market. Especially on Wall Street, Bitcoin prices are continuously setting new highs, and investors in Bitcoin ETFs are now fully in profit. With the $100,000 barrier approaching, market enthusiasm continues to climb.
The risk managers who previously approved raising the investment cap for Bitcoin ETFs are clearly satisfied with this market performance, having already reaped rewards. This decision also lays a solid foundation for portfolio managers to further increase their Bitcoin allocations in early 2025.
2. Zhu Su: The crypto industry has shifted from infrastructure-led to product-led.
Three Arrows Capital co-founder Zhu Su posted on social media stating: 'The crypto industry has now shifted from infrastructure-led to product-led.'
Compared to infrastructure investments, product investments are riskier, but they align more with the risk patterns that Web2 investors are accustomed to.
This is just a return to normal.
3. Bernstein: The net inflow of Ethereum spot ETFs may drive ETH performance to outperform other cryptocurrencies.
According to Coindesk, Bernstein stated in a research report on Monday that Ethereum (ETH) has underperformed Bitcoin (BTC) this year, but the inflow of Ethereum ETFs has reversed, suggesting that this period of underperformance may be coming to an end.
On Friday, BlackRock's spot Ethereum ETF saw inflows of $250 million, while its spot Bitcoin ETF only saw inflows of $137 million. This has created favorable supply and demand dynamics for ETH.
Bernstein points out that staking rewards could be another driving force for Ethereum. The initial Ethereum spot ETFs did not include staking rewards due to regulatory restrictions.
4. Analyst: Profit-taking and significant sell-offs are hindering recent BTC price increases.
Analysts state that profit-taking and significant sell-offs are hindering the rise in Bitcoin prices.
BRN analyst Valentin Fournier emphasizes that Bitcoin faces significant obstacles to breaking $100,000. He believes that market catalysts are strong and investor confidence is steadily increasing, but Bitcoin is still struggling to break through the psychological price barrier of $100,000. Profit-taking is evident, and more than 4,000 bitcoins (valued at approximately $384 million) need to be cleared to achieve higher price levels.
5. Bitfinex: Despite potential short-term fluctuations, Bitcoin is still expected to continue rising.
Bitfinex released a report stating, 'Despite some brief turmoil last week, November was a peak month for Bitcoin. Bitcoin experienced its largest pullback since the U.S. elections, dropping 8.64% to $90,911 during the week, followed by a rapid rebound, closing at a historic record of $96,506 by the end of the month. Bitcoin ended November with an impressive increase of 37.3%, making it the second-best performing month of 2024 so far.
This outstanding performance continues to highlight the strong momentum of Bitcoin, preparing us for December. Historically, December has typically been a month of significant volatility for Bitcoin, but following halving events, the average return for this asset has been 38.86%. Given the current bull market dynamics, we believe Bitcoin is likely to continue rising, although it may experience short-term fluctuations. Any short-term pullbacks are likely to be triggered by ETF outflows and profit-taking by long-term holders. Last week, ETFs recorded a net outflow of $135.1 million, most of which occurred in the first two days of trading. Since September, long-term holders have distributed a substantial amount of 508,990 bitcoins, increasing the supply in the market. Although this is still below the 934,000 bitcoins distributed before the March 2024 peak, the ongoing selling pressure requires sustained demand from ETFs and marginal buyers to avoid further pullbacks.
Interestingly, the supply of short-term holders is nearing its cyclical peak of 3,282,000 bitcoins. Historically, the final stage of a bull market typically occurs when the supply of short-term holders breaks through the pre-halving cycle peak. This change indicates an increasing participation of retail investors but also highlights the market's reliance on incoming demand to absorb profit-taking by long-term holders.
As Bitcoin further enters its bull market cycle, the current consolidation phase is a necessary pause to absorb profit-taking and adjust market demand. With the resumption of ETF inflows and increasing retail interest, we believe that Bitcoin still has a strong foundation to break through the psychological level of $100,000.
6. CryptoQuant CEO: This round of altcoin season lacks new liquidity, with only a few projects able to stand out.
CryptoQuant CEO Ki Young Ju posted on X stating: 'This altcoin season will be different than you expect. It will be peculiar and challenging, with only a few projects winning the race. Market sentiment is good, but there is not much new liquidity.
Bitcoin is detaching from the crypto ecosystem. Bitcoin has established its own paper-based L2 ecosystem through ETFs, MSTR, funds, etc. In this ecosystem, bridging to other altcoins is impossible.
Altcoins used to move in correlation with BTC, but this pattern has now been broken. Only a few altcoins have begun to show independent trends while attracting new liquidity.
Altcoins now have two options: create a paper-wrapped version like Bitcoin or build a true internet currency ecosystem using stablecoins or BTC. Altcoin investors should find a cryptocurrency that can achieve one of the two and hold it long-term.
Industry Hotspots
1. Data: The non-liquid supply of Bitcoin has reached a historical high, accounting for nearly 75%.
Bitwise Europe Research Director André Dragosch stated on X: 'The non-liquid supply of Bitcoin has reached a historical high, while exchange balances have hit a multi-year low.
Nearly 75% of the supply is considered 'illiquid,' while the remaining supply on exchanges accounts for less than 14%. This means the supply scarcity of Bitcoin continues to intensify.
2. Data: The crypto market's spot trading volume in November reached $2.7 trillion, the highest since May 2021.
The crypto market's spot trading volume in November reached $2.7 trillion, the highest since May 2021, more than double the trading volume of October ($1.14 trillion).
In November, about 36% of trading volume came from Binance, with the platform's trading volume exceeding $986 billion. Crypto.com, Upbit, and Bybit followed closely, each with trading volumes exceeding $200 billion, and significant month-over-month increases in trading volumes across various global regions.
3. Data: MicroStrategy's Bitcoin holdings reached 402,100 BTC, with a year-to-date return of 63.3%.
Michael Saylor posted on the X platform stating that MicroStrategy acquired 15,400 BTC for approximately $1.5 billion, and as of December 2, 2024, holds 402,100 BTC, at an average price of $58,263, achieving a BTC return of 38.7% quarter-to-date and 63.3% year-to-date.
4. CoinShares: Last week, net inflows into digital asset investment products reached $270 million.
Last week, the total inflow of digital asset investment products reached $270 million, and the total inflow for the year to date has reached a new record of $37.3 billion. Bitcoin saw outflows of $457 million, marking the first significant outflow since early September this year, which may be due to profit-taking after Bitcoin tested the psychological barrier of $100,000. Ethereum saw inflows of $634 million, experiencing a sharp shift in market sentiment, with total inflows for the year to date reaching $2.2 billion.
5. Data: BlackRock and MicroStrategy become the two entities holding over 400,000 BTC.
According to Trader T monitoring, the current distribution of Bitcoin is as follows:
- 2 entities (BlackRock and MicroStrategy) hold over 400,000 bitcoins, accounting for 2% of the existing 19,893,231 bitcoins.
- The proportion of Bitcoin ETFs in total supply has reached approximately 6% (up 1% in the past 5 months).
- 5.4%, with 1,106,775 bitcoins remaining to be mined (valued at approximately $10.6 billion today).
6. Data: The crypto market sectors have partially retraced, with the PayFi sector continuing to rise by 10.25%, while RWA and DeFi sectors performed well.
According to SoSoValue data, the crypto market sectors have partially retraced, with the PayFi sector continuing its upward trend (yesterday's increase of 22.26%), showing a 24h increase of 10.25%. Notably, within this sector, XRP (XRP) increased by 14.20%, and Litecoin (LTC) increased by 6.04%. Additionally, the ssiPayFi index, representing the historical performance of the PayFi sector, currently stands at $36.59, with a weekly increase of 66.11% and a monthly increase of 302.39%, ranking first among crypto sector indices.
Other significantly rising sectors include: RWA sector rises by 6.44%, with Ondo Finance (ONDO) increasing by 32.6%, Clearpool (CPOOL) rising by 13.6%, and Maker (MKR) rising by 10.03%. The DeFi sector rises by 5.11%, with Chainlink (LINK) increasing by 26.6% aside from ONDO and MKR.
Yesterday, the strong-performing Meme sector experienced a pullback, with a 24h decline of -7.12%. Within the sector, the top three by market cap, Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE), saw declines of -8.91%, -6.75%, and -9.80% respectively.
7. Last week, Aave's net deposits reached a historic high of $31 billion.
According to Unchained, as of last Sunday, Aave's net deposits reached a new high, surpassing thousands of commercial banks in the U.S. Last month, net deposits from cryptocurrency users increased by approximately $10.4 billion. The total amount is now about $31.4 billion, a 50% increase from $20.9 billion at the beginning of November.
8. Kudo Money: Creatow testnet has launched on Aptos.
Kudo Money, the identity passport for the Metaverse and Web3, announced on X that the Creatow testnet has launched on Aptos.
Kudo Money is the identity passport for the Metaverse and Web3, rewarding good citizens for their positive on-chain behavior. The higher the on-chain reputation, the more opportunities there are for borrowing, airdrops, and farming.
9. Data: In November, the adjusted on-chain trading volume of stablecoins reached $11.7 trillion, an increase of 30.7%.
According to The Block analyst Lars, data disclosed on the X platform shows that the adjusted on-chain trading volume of stablecoins in November reached $1.17 trillion, an increase of 30.7%; the issuance supply of stablecoins increased by 12% to a new high of $167.2 billion, with market shares for USDT and USDC at 79.9% and 17.4%, respectively.
10. Data: Bitcoin mining difficulty increased by 1.59% to 103.92 T, setting a new historical high.
According to CloverPool data, Bitcoin mining difficulty was adjusted at block height 872,928 (2024-12-02 23:34:00), with a mining difficulty increase of 1.59% to 103.92 T, setting a new historical high. The current average hash rate across the network is 726.57 EH/s.
11. Magic Eden co-founder: ME token airdrop qualifications and distribution queries will open on December 4.
Magic Eden co-founder and CEO Jack Lu stated on X that 'ME token airdrop qualifications and distribution queries will open on December 4. ME tokens will undergo TGE on December 10.'
12. The Web3 gaming platform Portal launches a cross-chain crypto gaming center and wallet.
The Web3 gaming platform Portal has launched a cross-chain crypto gaming center and wallet, with Portal Wallet supporting 20 Ethereum Virtual Machine (EVM) chains, including gaming chains like Immutable, Ronin, and Xai, as well as Ethereum itself and general scaling networks like Arbitrum and Base. This wallet aims to help solve interoperability issues between chains.
13. Sonic Labs generates its first block on the mainnet, and the token airdrop snapshot is completed.
According to The Block, Layer1 blockchain project Sonic Labs (formerly Fantom) announced that its mainnet has generated its first block, marking the completion of the 'Genesis' phase, and it is expected to officially launch soon. A few days prior, the project also launched the upgraded testnet 'Blaze'.
The team previously announced that the mainnet is expected to launch at the end of November or early December. Sonic Labs has completed the S token airdrop allocation snapshot, supporting a 1:1 exchange with Fantom's FTM token, and introduced Sonic Gateway for cross-chain bridging.
14. Ethena Foundation provides millions of dollars in grants to Derive, and sENA holders will receive 5% of the DRV token supply.
The options protocol Derive (formerly Lyra) announced a partnership with Ethena, formally joining the Ethena Network. As part of the partnership, Ethena Foundation provided Derive with millions of dollars in grants, and sENA token holders will be eligible for 5% of the DRV token supply.
It is reported that Derive currently holds over 75% of the on-chain options market share, with a weekly trading volume of approximately $250 million and total locked volume exceeding $80 million, having over 50,000 users.
15. Hashflow, through a burn proposal, will use 50% of protocol fees to repurchase and burn HFT.
The decentralized trading platform Hashflow announces that its token burn proposal has been approved. From now on, the platform will use 50% of the protocol fees for repurchasing and burning HFT tokens. As the beginning of this plan, Hashflow has already completed the destruction of over 900,000 HFT tokens.
16. Yuga Labs acquires tokenproof, and some team members join its R&D department.
Yuga Labs co-founder Greg Solano announced that Yuga Labs has acquired the technology of tokenproof, a token proof protocol, and some members of tokenproof will join Yuga Labs' research and development department, The Workshop.
17. Decentralized AI investment strategy analysis platform OpenPad AI completes $2 million financing, led by Basics Capital.
Utilizing decentralized AI analysis to provide data-driven investment strategy platform OpenPad AI announces completion of $2 million financing, led by Basics Capital with participation from Protein Capital, Spicy Capital, Green Arrow Adventures, VivaTech Ventures, Brinc, Boba Network, Avalon Wealth Club, Coin Bold, TechFarm, and others.
OpenPad AI combines blockchain technology with artificial intelligence, allowing users to access investment strategies, project ratings, and real-time market insights while maintaining control over their data.
18. HashKey Group launches a new product: ModAI, providing AI community operation services for the Web3 industry.
HashKey Group officially launched ModAI, an AI community operation service incubated by the group, specifically designed for the Web3 industry, integrating leading global large language models. ModAI covers a real-time knowledge base of the latest developments in the Web3 and macroeconomic fields, supports personalized character customization, significantly enhancing interaction experience, comparable to real human effects.
As an innovative AI service aimed at the Web3 ecosystem, ModAI aims to tackle complex challenges in community operations, providing efficient and precise service support for industry practitioners. It has already established partnerships with three well-known project teams. Through the launch of ModAI, HashKey Group once again demonstrates its innovative leadership in the digital asset and blockchain industry, promoting the continuous development of the Web3 ecosystem.
19. Liquidity solution SecondSwap completes $1.2 million seed round financing, with Animoca Ventures among the investors.
Liquidity solution SecondSwap announces completion of a $1.2 million seed round financing, with GSR, Animoca Ventures, E4 Capital, Yellow Capital, BCW Group, HGEN DAO, ARC Community, Nonco, and Libra Capital participating. The funds will primarily be used to expand the market functions of SecondSwap.
According to reports, SecondSwap provides automated over-the-counter trading markets for less liquid assets. It supports token diversification, risk management, and transparent trading through smart contracts. It is currently testing its network on Ethereum and plans to expand multi-chain. SecondSwap's mainnet is set to launch in January 2025.
20. Digital asset management platform LSP.Finance completes $1 million Pre-Seed round financing, led by CGV and others.
Digital asset management platform LSP.Finance completes $1 million Pre-Seed round financing, achieving a valuation of $33 million. This round of financing is led by Cryptogram Venture (CGV), WAGMi Ventures, K24 Ventures, CatcherVC, XLink Labs, and LandScape Capital.
It is reported that LSP.Finance is a user-centered digital asset management platform that aims to transform DeFi by unlocking liquidity from PoS networks, early Alphas, and high-yield projects. The platform prioritizes accessibility and innovation, providing an integrated solution for high liquidity and seamless blockchain interactions.
21. XION will be launched on Bybit and Bitget trading platforms on December 5.
XION announced on X that it will launch the $XION token on Bybit and Bitget on December 5 at 10 AM (UTC) and open Dual Launchpool trading.
Prize Pool: 1,000,000 XION can be claimed on Bybit; 330,000 XION can be claimed on Bitget.
XION is a Layer 1 blockchain designed for consumer applications, providing a tailored seamless user experience for everyday users. Through its innovative Chain Abstraction infrastructure, XION simplifies complex crypto interactions and offers protocol-level account abstraction, gasless transactions, signature abstraction, cross-device usage, and fiat pricing.
22. WORLD3 officially announces the launch of the AI Agent Genesis event in mid-December, where participants have the chance to win the $W3C airdrop.
The AI autonomous world project WORLD3, centered on intelligent AI agents, has recently announced that it will officially launch the AI Agent Genesis event in mid-December 2024. This event invites users to design and create the first AI agent with unique personalities and capabilities. By participating in this event, users will have the opportunity to qualify for the $W3C token airdrop set to begin in the first quarter of 2025.
At the same time, WORLD3 will open the first scenario where AI Agents interact with other decentralized applications (dApps) and autonomously play full-chain games, pioneering a new chapter for AI agents in the blockchain ecosystem.
Additionally, WORLD3 has announced the launch of the lottery system WORLD3 Treasure on the Sui chain. Users can not only win exclusive rewards through this system but also increase their chances of winning rewards by inviting friends, completing on-chain and off-chain tasks, or purchasing lottery tickets, while also providing more possibilities for obtaining $W3C airdrop qualifications.
WORLD3 Treasure will provide users with more fun in exploring AI autonomous worlds and lay a solid foundation for the future $W3C ecosystem.
23. The BSC ecosystem RWA project TopGoal announces an extension of the team's GOAL token lock-up period until the end of 2025.
The BSC ecosystem RWA project TopGoal announced on X that the team will extend the lock-up period for its GOAL tokens by one year. No team GOAL tokens will be unlocked before December 2025.
TopGoal is a football metaverse with officially licensed digital collectibles GameFi and SocialFi, aiming to connect sports with Web3.
Ethereum Ecosystem
1. Data: Over the past 7 days, Ethereum's Total Value Locked (TVL) has increased by $4.81 billion, and Base's TVL has increased by $302 million.
According to Lookonchain monitoring, in the past 7 days, Ethereum's total locked value (TVL) increased by $4.81 billion, Base's TVL increased by $302 million, and Hyperliquid's TVL increased by $290 million. Funds have flowed into Ethereum, Base, and Hyperliquid.
2. Data: Arbitrum became the first L2 on Uniswap with a monthly trading volume exceeding $20 billion.
Uniswap Labs shared Dune data on X, indicating that Arbitrum became the first L2 on the Uniswap protocol with a monthly trading volume exceeding $20 billion.
Solana Ecosystem
1. Orderly deploys a full-chain perpetual contract order book on Solana mainnet, achieving seamless integration of EVM and non-EVM orders for the first time.
Orderly Network announced the integration of the Solana mainnet and launched its full-chain perpetual contract order book on Solana. This deployment integrates EVM and non-EVM orders, achieving cross-chain deep liquidity, allowing Solana users to seamlessly connect to over 30 DEXs on other EVM chains and trade 73 perpetual contracts without complex operations like bridging or wrapping.
This integration with the Solana mainnet marks Orderly Network as the first platform to fuse EVM and non-EVM chains into a super-ecosystem on-chain, with a total market cap exceeding half a trillion dollars. Through a unified order book, users can directly trade using token assets from various chains, significantly enhancing trading efficiency and user experience.
Currently, Orderly has been deployed on important EVM chains including Arbitrum, Base, Mantle, Ethereum mainnet, Optimism, Polygon, etc., providing over 50 markets for traders and DEX. This deployment on the Solana mainnet will further expand its liquidity business service scope, allowing Solana traders to enjoy a better trading experience.
