Regulation & ETF
1. Data: The total net inflow of Ethereum spot ETFs yesterday was $24.2306 million, continuing a 6-day net inflow.
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 saw a net outflow of $44.3624 million, bringing its historical net outflow to $3.411 billion. Grayscale's Ethereum mini trust ETF ETH saw a net outflow of $0.00, with its historical total net inflow currently at $420 million. The Ethereum spot ETF with the highest net inflow yesterday was BlackRock's ETF ETHA, with a net inflow of $55.9183 million, currently having a historical total net inflow of $2.159 billion. The second highest was Fidelity's ETF FETH, with a net inflow of $19.8999 million, currently having a historical total net inflow of $844 million.
As of the time of publication, the total net asset value of the Ethereum spot ETF is $11.133 billion, with an ETF net asset ratio (market value as a percentage of Ethereum's total market value) reaching 2.56%, and the historical cumulative net inflow has reached $598 million.
2. Data: The total net inflow of Bitcoin spot ETFs yesterday was $354 million, with an 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 saw a net outflow of $28.1118 million, bringing its historical net outflow to $20.549 billion. Grayscale's Bitcoin mini-trust ETF BTC saw a net inflow of $6.3610 million, currently having a historical total net inflow of $729 million. The Bitcoin spot ETF with the highest net inflow yesterday was BlackRock's ETF IBIT, with a net inflow of $338 million, bringing its historical total net inflow to $32.076 billion.
The second highest was Fidelity's ETF FBTC, with a net inflow of $25.1350 million, currently having a historical total net inflow of $11.479 billion.
As of the time of publication, the total net asset value of the Bitcoin spot ETF is $103.909 billion, with an ETF net asset ratio (market value as a percentage of Bitcoin's total market value) reaching 5.49%, and the historical cumulative net inflow has reached $31.058 billion.
3. WisdomTree submits XRP ETF S-1 application to the U.S. SEC.
According to an S-1 filing submitted to the U.S. Securities and Exchange Commission (SEC), WisdomTree has submitted an application for the WisdomTree XRP Fund, which is a type of exchange-traded fund (ETF) that will issue beneficial ordinary shares and will be listed on the Cboe BZX Exchange, Inc., with the ticker 'TICKER'.
The trust's investment objective is to gain exposure to XRP prices, minus the trust's operational expenses and liabilities. The Bank of New York Mellon ('BNYM') serves as the trustee, fund accountant, and transfer agent for the trust.
4. Greeks.live: Bitcoin's short-term IV has fallen below 55%, while Ethereum's short-term IV remains above 70%.
Greeks.live macro researcher Adam analyzed on the X platform that monthly settlements are completed, with all major term IVs experiencing varying degrees of decline compared to a week ago. The short-term IV of BTC has fallen below 55%, while the mid-to-long-term IV is also below 60%. ETH's short-term IV remains above 70%.
Industry perspectives.
1. Matrixport: Bitcoin ETF inflows hit a new high, confidence soaring at the $100,000 mark.
Matrixport released a chart today stating that Bitcoin spot ETF monthly inflows have skyrocketed to $6.5 billion, setting a new historical high, 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 consistently setting new highs, and investors in Bitcoin ETFs are now fully profiting. With the $100,000 mark nearing, market enthusiasm continues to rise.
The risk managers who previously approved raising the investment limits for Bitcoin ETFs are evidently pleased with the market performance this time, as they have all reaped rewards. This decision also lays a solid foundation for portfolio managers to further increase 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 carry higher risks but align better with the risk patterns that Web2 investors are accustomed to.
This is just a return to normal.
3. Bernstein: The net inflows of Ethereum spot ETF may drive ETH's performance to outperform other cryptocurrencies.
According to Coindesk, Bernstein stated in a research report on Monday that Ethereum (ETH) has underperformed Bitcoin (BTC) so far this year, but the inflow of Ethereum ETFs reversing may indicate that the period of poor performance 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 creates a favorable supply-demand dynamic for ETH.
Bernstein points out that staking yields may be another driving force for Ethereum. The initial Ethereum spot ETF did not include staking yields due to regulatory restrictions.
4. Analysts: Profit-taking and significant selling hinder recent BTC price increases.
Analysts state that profit-taking and significant selling hinder the rise of Bitcoin prices.
BRN analyst Valentin Fournier emphasizes that Bitcoin faces significant obstacles in breaking through $100,000. He believes the market's catalysts are strong, and investor confidence is continuously increasing, but Bitcoin is still struggling to break through this psychological price barrier. Profit-taking behavior is evident, and it needs to clear a sell-wall of over 4,000 Bitcoin (valued at approximately $384 million) 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 turbulence last week, November was a peak month for Bitcoin. Bitcoin experienced its largest pullback since the U.S. elections, dropping 8.64% during the week to $90,911, before quickly rebounding and setting a historic closing record at $96,506 by the end of the month. Bitcoin ended November with an impressive 37.3% gain, making it the second-best performing month of 2024 so far.
This outstanding performance continues to highlight Bitcoin's strong momentum, preparing us for December. Historically, December is usually a month of high volatility for Bitcoin, but in halving years, the average return of this asset is 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 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 significant amount of 508,990 Bitcoin, increasing the supply in the market. While this is still lower than the 934,000 Bitcoin distributed before the March 2024 peak, sustained selling pressure necessitates continuous 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 Bitcoin. Historically, the final stage of bull markets typically occurs when the supply of short-term holders breaks above the pre-halving cycle highs. This change indicates an increase in retail investor participation but also highlights the market's dependence on entry demand to absorb profit-taking from 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 recovery of ETF inflows and increased retail interest, we believe Bitcoin still has a solid 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 standing out.
CryptoQuant CEO Ki Young Ju posted on X stating, 'This altcoin season will be different from what you expected. 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 breaking away from the crypto ecosystem. Bitcoin has established its own paper-based L2 ecosystem through ETFs, MSTR, funds, and others. 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 are beginning to show independent trends when attracting new liquidity.
Altcoins now have two choices: create a paper-wrapped version like Bitcoin or build a real internet currency ecosystem using stablecoins or BTC. Altcoin investors should find a cryptocurrency that can achieve one of the two and hold long-term.
Industry hotspots.
1. Data: Bitcoin's illiquid supply has reached a historic high, accounting for nearly 75%.
Bitwise's European research head, André Dragosch, posted on X stating, 'Bitcoin's illiquid supply has reached a historical high, while exchange balances have hit multi-year lows.'
Nearly 75% of the supply is considered 'illiquid,' while the remaining supply on exchanges is less than 14%. This means that the scarcity of Bitcoin's supply continues to worsen.
2. Data: The crypto market's spot trading volume in November reached $2.7 trillion, setting a new high since May 2021.
In November, the spot trading volume of the crypto market reached $2.7 trillion, setting a new high since May 2021, which is more than double the trading volume in October ($1.14 trillion).
In November, about 36% of the 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 over $200 billion, showing significant month-on-month growth in trading volumes across regions.
3. Data: MicroStrategy's Bitcoin holdings reached 402,100, with a year-to-date return of 63.3%.
Michael Saylor posted on X stating that MicroStrategy acquired 15,400 BTC for about $1.5 billion, holding 402,100 BTC as of December 2, 2024, with an average price of $58,263, achieving a quarterly BTC return of 38.7% and a year-to-date BTC return of 63.3%.
4. CoinShares: Last week, the net inflow of digital asset investment products was $270 million.
Last week, the total inflow of digital asset investment products reached $270 million, while the total inflow for the year so far has set a new record of $37.3 billion. Bitcoin saw an outflow of $457 million, marking the first significant outflow since early September this year, which could be the result of profit-taking after Bitcoin tested the psychological level of $100,000. The inflow for Ethereum was $634 million, experiencing a drastic shift in market sentiment, with total inflows for this year reaching $2.2 billion.
5. Data: BlackRock and MicroStrategy have become the two entities holding over 400,000 BTC.
According to Trader T's monitoring, the current distribution of Bitcoin is:
- 2 entities (BlackRock and MicroStrategy) hold over 400,000 Bitcoin, accounting for 2% of the existing 19,893,231 Bitcoin;
- The proportion of Bitcoin ETFs to total supply has reached about 6% (up 1% over the past 5 months);
- 5.4%, with 1,106,775 Bitcoin remaining to be mined (approximately $106 billion at today's value).
6. Data: The crypto market sectors have partially corrected, with the PayFi sector continuing to rise by 10.25%, while RWA and DeFi sectors performed well.
According to SoSoValue data, some sectors of the crypto market have partially corrected, and the PayFi sector continues yesterday's growth trend (yesterday's increase of 22.26%), with a 24h increase of 10.25%. Notably, within the sector, XRP (XRP) rose 14.20%, and Litecoin (LTC) rose 6.04%. Additionally, the current price of the ssiPayFi index, representing the historical performance of the PayFi sector, is $36.59, with a weekly increase of 66.11% and a monthly increase of 302.39%, all ranking first among crypto sector index gains.
Other significantly rising sectors include: RWA sector up 6.44%, with Ondo Finance (ONDO) rising 32.6%, Clearpool (CPOOL) up 13.6%, and Maker (MKR) up 10.03%. The DeFi sector rose by 5.11%, with Chainlink (LINK) rising 26.6%, excluding ONDO and MKR.
Yesterday, the Meme sector, which had seen strong gains, experienced a correction, with a 24h drop of -7.12%. Within the sector, the top three market cap coins—Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE)—saw decreases of -8.91%, -6.75%, and -9.80%, respectively.
7. Last week, Aave's net deposits hit a historical high of $31 billion.
According to Unchained, as of last Sunday, Aave's net deposits hit a new high, bringing Aave's scale to surpass that of thousands of commercial banks in the United States. Last month, net deposits from cryptocurrency users increased by about $10.4 billion. The total amount is currently around $31.4 billion, growing by 50% compared to $20.9 billion at the beginning of November.
8. Kudo Money: Creatow testnet is now live on Aptos.
Kudo Money, the identity passport for the Metaverse and Web3, announced on X that the Creatow testnet is now live on Aptos.
Kudo Money serves as 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 lending, 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 of USDT and USDC at 79.9% and 17.4%, respectively.
10. Data: Bitcoin mining difficulty increased by 1.59% to 103.92 T, continuing to set a new historical high.
According to CloverPool data, the Bitcoin mining difficulty saw an adjustment at block height 872,928 (2024-12-02 23:34:00), with mining difficulty increasing by 1.59% to 103.92 T, continuing to set a new historical high. The current average network hashrate is 726.57 EH/s.
11. Magic Eden co-founder: ME token airdrop qualification and allocation inquiries will open on December 4.
Magic Eden co-founder and CEO Jack Lu posted on X stating, 'ME token airdrop qualifications and allocation inquiries will open on December 4. ME tokens will undergo TGE on December 10.'
12. Web3 gaming platform Portal launches a cross-chain crypto gaming hub and wallet.
Web3 gaming platform Portal launches a cross-chain crypto gaming hub and wallet. Portal Wallet supports 20 Ethereum Virtual Machine (EVM) chains, including gaming chains such as Immutable, Ronin, and Xai, as well as Ethereum itself and general scaling networks like Arbitrum and Base. This wallet aims to help resolve interoperability issues between chains.
13. Sonic Labs' mainnet generates the first block, and the token airdrop snapshot is completed.
According to The Block, Layer1 blockchain project Sonic Labs (formerly Fantom) announced that its mainnet has generated the first block, marking the completion of the 'Genesis' phase, and is expected to officially launch soon. In the preceding days, the project also launched the upgraded testnet 'Blaze'.
The team previously announced that it expects to launch the mainnet at the end of November or early December. Sonic Labs has completed the snapshot for S token airdrop distribution, supporting a 1:1 exchange with Fantom's FTM token, and introduced Sonic Gateway for cross-chain bridging capabilities.
14. Ethena Foundation provides millions in grants to Derive; sENA holders will receive 5% of DRV.
Options protocol Derive (formerly Lyra) announces collaboration with Ethena, officially joining the Ethena Network. As part of the collaboration, Ethena Foundation provided Derive with millions of dollars in grants, while sENA token holders will be eligible for 5% of Derive DAO's 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 about $250 million, a total locked amount exceeding $80 million, and over 50,000 users.
15. Hashflow proposes to use 50% of protocol fees for HFT buyback and burn.
Decentralized trading platform Hashflow announces that its token burn proposal has been approved. Starting now, the platform will use 50% of its protocol fees for the buyback and burn of HFT tokens. As the beginning of this plan, Hashflow has completed the burn of over 900,000 HFT tokens.
16. Yuga Labs acquires tokenproof protocol; some team members join its R&D department.
Greg Solano, co-founder of Yuga Labs, announced that Yuga Labs has acquired the technology of the tokenproof protocol, and some members of tokenproof will join Yuga Labs' R&D 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 announced the 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 launches ModAI, an AI community operation service incubated by the group, designed for the Web3 industry, integrating leading global large language models. ModAI covers the latest real-time knowledge base in Web3 and macroeconomic fields, supporting personalized character customization, significantly enhancing interaction experiences comparable to real human effects.
As an innovative AI service aimed at the Web3 ecosystem, ModAI aims to address the complex challenges of community operations and provide efficient and precise service support for industry practitioners. It has currently partnered with three well-known projects. With 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 completed a $1.2 million seed round of financing, with participation from Animoca Ventures and others.
Liquidity solution SecondSwap announces the completion of a $1.2 million seed round of financing, with participation from GSR, Animoca Ventures, E4 Capital, Yellow Capital, BCW Group, HGEN DAO, ARC Community, Nonco, and Libra Capital. The funds will primarily be used to expand SecondSwap's market functionalities.
According to reports, SecondSwap provides an automated OTC market for assets with lower liquidity. It supports token diversification, risk management, and transparent transactions through smart contracts. Currently, it is testing on Ethereum and plans to expand to multiple chains. The SecondSwap mainnet will launch in January 2025.
20. Digital asset management platform LSP.Finance completes $1 million Pre-Seed round of financing, led by CGV and others.
Digital asset management platform LSP.Finance completes $1 million Pre-Seed round of financing, achieving a valuation of $33 million. This round was led by Cryptogram Venture (CGV), WAGMi Ventures, K24 Ventures, CatcherVC, XLink Labs, and LandScape Capital.
It is reported that LSP.Finance is a user-centric digital asset management platform that aims to transform DeFi by releasing 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 launch on Bybit and Bitget on December 5.
XION announced on X that it will launch the $XION token on Bybit and Bitget at 10 AM (UTC) on December 5, opening up Dual Launchpool trading.
Prize pool: 1,000,000 XION tokens can be claimed on Bybit; 330,000 XION tokens can be claimed on Bitget.
XION is a Layer 1 blockchain designed for consumer applications, providing a tailored and 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 features.
22. WORLD3 officially announces that it will launch the AI Agent Genesis event in mid-December, offering participants a chance to win $W3C airdrop eligibility.
The AI autonomous world project WORLD3, centered on smart AI agents, 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 abilities. By participating in this event, users will have a chance to gain eligibility for the $W3C token airdrop slated to begin in the first quarter of 2025.
At the same time, WORLD3 will launch the first AI Agent to interact with other decentralized applications (dApps) and autonomously play full-chain games, opening 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 opportunities for acquiring $W3C airdrop eligibility.
WORLD3 Treasure will provide users with more fun exploring the AI autonomous world and lay a solid foundation for the future $W3C ecosystem.
23. BSC ecosystem RWA project TopGoal announces an extension of the team GOAL token lock-up period until the end of 2025.
The BSC ecosystem RWA project TopGoal announced on X that it will extend the lock-up period of the team's GOAL token for 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 TVL increased by $4.81 billion, and Base's TVL increased by $302 million.
According to Lookonchain monitoring, over the past 7 days, the total locked value (TVL) of Ethereum has 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 becomes the first L2 on Uniswap to exceed $20 billion in trading volume in a month.
Uniswap Labs shared Dune data on X, indicating that Arbitrum became the first L2 in the Uniswap protocol to exceed $20 billion in trading volume in a month.
Solana ecosystem.
1. Orderly deploys a full-chain perpetual contract order book on the 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 types of perpetual contracts without the need for bridging or wrapping operations.
This integration with the Solana mainnet marks Orderly Network as the first platform to fuse EVM and non-EVM on-chain super-ecosystem, with a total market cap exceeding half a trillion dollars. Through a unified order book, users can trade directly using token assets from various chains, significantly improving trading efficiency and user experience.
Currently, Orderly has deployed on important EVM chains including Arbitrum, Base, Mantle, Ethereum mainnet, Optimism, Polygon, etc., providing over 50 markets for traders and DEXs. This deployment on the Solana mainnet will further expand its liquidity business service scope, allowing Solana traders to also enjoy a better trading experience.
