Written in advance

With Christmas and New Year approaching, the volatility in the cryptocurrency market has entered a phase of adjustment.

The past weekend saw the market exhibiting a volatile downward trend, with major coins like BTC and ETH facing corrections, and altcoins along with DeFi projects experiencing significant declines. Despite the low market sentiment in the short term, many still look forward to a recovery after the New Year.

This article will provide a detailed analysis of the current market trends, discuss the impact of the Christmas holiday on the market, and how to cope with this uncertainty in the upcoming trades.

1. Web3 daily news preview

2. Review of events in the past day

In terms of the overall market

The trend of the cryptocurrency market over the weekend was actually a volatile decline, which is really not particularly healthy.

BTC has also dropped below $96,000, while ETH has performed even worse, surging to $3,500 on Friday only to dip below $3,300 on Sunday, causing a significant drop in all tokens within the ETH ecosystem. BNB and SOL’s trends are not good either, with SOL currently around $180, and it really seems to be stagnant lately, lacking any momentum for a rally. Following a peak of nearly $795, BNB has also rapidly corrected, dropping more than 20%.

The entire altcoin market also did not show any particular strength over the weekend. Although there was a brief period of so-called 'altcoin gains' on Saturday, everything quickly fell back on Saturday night and Sunday morning, so the weekend was characterized by a volatile decline.

Currently, it seems all major coins, including BTC and ETH, are performing quite poorly. The club still believes that the market recovery may have to wait until after January 3rd, when the West officially returns to normal operations, which might bring some upward movement. The coming week includes the Christmas and New Year holidays, so the club feels that there likely won’t be significant changes in the market, and if there are, it will likely just be a decline.

In the DeFi sector

In the mainstream DeFi sector, we see UNI has risen somewhat, mainly due to the announcement made by UNI's official team late Saturday that UNICHAIN is expected to launch early next year. This resulted in a small uptick in UNI, but the increase is relatively modest, with no strong surge occurring.

LDO has also seen some increases, but only about 5%. In contrast, previously strong ETH ecosystem staking tokens, such as EIGEN and RENZO, have seen a general decline, especially EIGEN, which has faced significant selling pressure from a whale, causing its drop. There has also been a whale that had been bullish on ENA; after posting about ENA, it directly unstaked 9.01 million ENA and dumped it on Binance. According to the latest data, that whale has completed its selling smoothly, tweeting to let the retail investors take over, while it actually sold off for Christmas.

So this is also the current real situation in the market, where some founders of leading projects, or so-called market moguls, have been shouting to build this industry or encouraging its development, but unexpectedly, what they are doing is selling coins and crashing the market. This is the harsh reality, and everyone needs to recognize it.

Moreover, we see that the decentralized exchange HYPE on the entire chain has maintained its upward trend, while almost all sectors have shown declines; only HYPE has continued to rise recently, reaching a historical high of $35 on Saturday, and currently has corrected to $27. Recently, the entire HYPE ecosystem has also seen some promising projects emerge, which are innovatively significant, and everyone should keep an eye on them.

In the MEME sector

In the mainstream MEME category, we've also seen that whether it’s PEPE, WIF, or DOGE, there was a slight uplift over the weekend, but not much of a gain, only about 5%.

Basically, among the MEME coins listed on Binance, PUNT performed relatively strong on Sunday, with an intraday increase of nearly 20%. However, this single-day 20% increase for Squirrel is hardly significant compared to the previous day’s 30% drop. ACT has also reached a dismal 0.33, even lower than its listing price on Binance, so the overall trend is quite bleak.

The MEME coins on the entire chain have not shown a strong recovery either. Although the desci sector RIF and URO saw some gains over the weekend, other coins have been rather lackluster. However, LUCE and CHILLGUYS did experience a surge; it's uncertain whether something significant is about to happen, especially for LUCE, which had a 60% increase, which is indeed unusual. We don’t know if there are some bizarre events to unfold, but as it stands, if they are truly going to launch on major exchanges, these pump-and-dump schemes might sell off quickly, so everyone should be mindful of the risks.

Additionally, we look at SEND, a project previously shared by the club, which is the BLink project on Solana that emerged around summer. Initially, it was BLink, but later the project announced that BLink might fail and shifted to focus on robotics and AI-related developments. This token was officially launched at the end of July. This weekend, SEND experienced a dramatic surge, with an increase of more than 10 times, primarily driven by the entire Solana core ecosystem.

In the NFT sector

At the same time, we also noticed that the entire NFT ecosystem did not show any strong momentum after the small penguin launched its token. There has been a general decline, and trading volumes haven't been particularly eye-catching. After the small penguin's launch, there was a peak in trading, but in the past few days, it has continued to decline, which reflects the current state of affairs.

In the BTC ecosystem

In the entire BTC ecosystem, we also see that ORDI and SATS are stagnant, which means they have both experienced a significant downturn compared to their highs.

Although RUNE Dog surged to around 9 or 10 previously, it has recently been affected by a correction, dropping to around 7. Not to mention the fractal Bitcoin and Merlin, both have fallen more than 50% compared to their previous highs.

3. Summary

In summary, the club believes that over the next week or so, due to the impact of the New Year and Christmas holidays, the U.S. stock market will not be open, and the entire market may not see any significant movements. If there are movements, they will likely just continue to decline.

Therefore, today and tomorrow may still be quite critical, likely the last trading days. We will see how to operate specifically, especially tomorrow, as tomorrow's market should set the overall trend for the upcoming week, so everyone can stay tuned.