1. Attention Value - Market Highlights
1. Market Overview
(1) Macroeconomic Environment:
Goldman Sachs lowers Federal Reserve interest rate cut forecast, inflation decline trend is significant.
Goldman Sachs has adjusted its forecast for the Federal Reserve's interest rate cuts, lowering this year's expected cuts from 100 basis points to 75 basis points, noting that reports about a rebound in core inflation have been exaggerated. According to the report, the core personal consumption expenditures (PCE) inflation annualized increase from September to November last year was 2.5%, slightly above the previous three months' 2.3%, but still below the year-on-year increase of 2.8%, showing a continued trend of declining inflation. Additionally, the Dallas Fed's revised average PCE inflation data showed that the annualized PCE inflation from September to November last year was 2.4%, while the inflation rate in November last year was 1.8%. As the labor market gradually tightens, the annual growth rate of wages has slowed to 3.9%, within the range of 3.5% to 4%. If productivity growth in the coming years is between 1.5% and 2%, it will align with the 2% inflation target.
(2) Web3 Sector:
The IRS has postponed cryptocurrency tax reporting rules until the end of 2025.
The IRS has postponed the implementation of cryptocurrency tax reporting rules to December 31, 2025, to provide brokers with more time to adapt amid legal and regulatory challenges. According to reports, the IRS has also issued a temporary relief measure expected to benefit cryptocurrency holders on centralized finance (CeFi) platforms in 2025. The new rules require the use of a first-in, first-out (FIFO) accounting method for crypto assets starting January 1, 2025, unless opting for other methods like highest-in, first-out (HIFO) or specific identification (Spec ID).
2. Hot Events
(1) Macroeconomic Environment:
A Syrian NGO proposed the establishment of a Bitcoin-based banking system to facilitate economic reconstruction.
A Syrian NGO has called for the new government to consider establishing a banking system based on Bitcoin network and related technologies. The Syrian Center for Economic Research (SCER) pointed out in its policy proposal that such a system is crucial for accelerating national reconstruction and protecting the public from inflation and currency devaluation. This proposal, referred to as the 'Syrian Bitcoin Policy,' aims to provide new solutions for the country facing economic difficulties. Since taking office in December 2024, newly elected President Ahmed al-Sharaa has been striving for international recognition to secure reconstruction funding. SCER emphasizes that the government should establish a comprehensive regulatory framework to legalize the trading and mining of Bitcoin and other digital assets to promote Syria's economic recovery. Furthermore, the proposal suggests digitizing the Syrian pound and considering supporting it with assets including US dollars and Bitcoin.
(2) Web3 Sector:
Ethereum Weekly News has announced its shutdown, admitting a lack of support and sustainable business model.
Evan Van Ness, founder of Ethereum Weekly (WiE), announced on social media that WiE will officially cease operations on January 1, 2025. He stated that this decision stemmed from a conversation with the leadership of the Ethereum Foundation (EF), indicating that EF’s recognition of WiE’s value has evidently diminished, and it provided only symbolic funding in 2024. With EF choosing to completely cut off this insignificant support, WiE's operations also came to an end. Van Ness mentioned that despite the opportunity to continue operations through fundraising, he prefers to focus on other meaningful projects. He also pointed out that WiE failed to find a sustainable business model, and advertising and sponsorship income were hard to maintain. Furthermore, he emphasized existing issues in the Ethereum ecosystem, where there is too much focus on code development and research while neglecting other important contributions.
3. Hot Narratives
Elon Musk's name change to "Kekius Maximus" triggered volatility in the cryptocurrency market, with KEKIUS token prices soaring and plummeting.
A few days ago, billionaire Elon Musk renamed his account on social media platform X to "Kekius Maximus" and used the PEPE frog as his avatar, drawing the attention of the online community. However, he has recently reverted the account name back to "Elon Musk" and changed the avatar back to a personal photo. On December 31, Musk's action surprised many, especially his choice of the name "Kekius Maximus," which is closely related to internet culture and not only associates with the popular PEPE frog image but also implies the word 'Maximus' in Latin, meaning 'the greatest', reflecting the exaggerated style commonly found in meme culture. Musk's name change had a significant impact on the cryptocurrency market, especially for the KEKIUS token, which exploded in value in a short period. Although Musk did not directly mention a relationship with the KEKIUS token, his social media activity often has a strong influence on the cryptocurrency market. After his name change, the price of the KEKIUS token dropped fourfold from the peak level of the previous day, showing that the market is extremely sensitive to his dynamics.
2. Attention Value - Hot Projects
1. Project Introduction
$T3AI | AI | @trustInWeb3
- A DeFi network protocol that integrates AI, built using @sendaifun's Solana Agent tool.
- Narrative: To address the issue of excessive collateralization required for loans in the DeFi ecosystem, which limits leverage investments and asset utilization, the T3 project has introduced dedicated AI agents as trusted intermediaries. Through dynamic risk management algorithms, it ensures loan repayability while allowing users to freely invest, trade, or stake on-chain, thereby achieving higher capital returns.
- The token allocation of T3 is 90.5% for free circulation and 9.5% for development rewards and community activities, of which 0.175% has been sold to cover infrastructure costs for January 1, 2025. Additionally, 0.3% of the loans will be used as income, with 80% of that income allocated for buybacks, and 10% of the loans will be paid in $T3AI tokens, while the remaining 90% will be paid in SOL or USDC.
- The project experienced a price surge in a short period, with the development team conducting a large-scale sell-off at 4 AM (0.175% of holdings used for infrastructure development).
3. Attention Value - Sector Rotation
1. Hot Sectors
Source: Dune, Dot Labs
Source: Dune, Dot Labs
2. Internal Sectors
Source: Dune, Dot Labs
