Written in advance

As Christmas and New Year approach, the volatility of the cryptocurrency market has entered a phase of adjustment.

Over the past weekend, the market showed a downward trend, with major mainstream coins like BTC and ETH facing corrections. Altcoins and DeFi projects also encountered significant declines. Though market sentiment is quite low 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 upcoming trades.

1. Web3 daily news preview

2. Event summary in the past day

Overall market

The trend of the cryptocurrency market has actually been fluctuating downward over the two days of the weekend, which is really not particularly healthy.

BTC has also fallen below $96,000, while ETH has performed even worse, surging to $3,500 on Friday but dropping below $3,300 on Sunday, leading to a significant decline across the entire ETH ecosystem's tokens. The trend for BNB and SOL is also not good; SOL has currently returned to around $180, and it seems there has been no activity lately, with no driving force behind any price boosts. BNB, after reaching a new high of nearly $795, has also quickly retraced and should have fallen by more than 20%.

Similarly, the altcoins have not shown any particularly strong performance over the two days of Saturday and Sunday. Although there was a brief period of so-called 'altcoin growth' on Saturday, by Saturday night and Sunday morning, everything had fallen back, resulting in a continuous downward trend over the weekend.

Currently, it appears that all mainstream coins, including BTC and ETH, are performing quite poorly. The club still believes that market recovery may not occur until after January 3, when the Western world returns to normal operations, at which point there may be some upward movement. In the coming week, during the Christmas and New Year holidays, the club feels that the market is unlikely to see significant changes. If there are changes, they will likely only be downward.

DeFi sector

In the mainstream DeFi sector, we see that UNI has risen somewhat, mainly benefiting from the announcement made by UNI's official team on Saturday evening: UNICHAIN will be launching early next year. Thus, we saw a small uptick in UNI, but this increase is relatively modest, with no significant explosive growth.

LDO has also seen some increases, but only about 5%. In contrast, previously strong performing staking tokens in the ETH ecosystem, such as EIGEN and RENZO, have experienced widespread declines. EIGEN, in particular, has seen a major whale start to sell off, leading to its drop. Also, a whale that had been strong in ENA posted a tweet to promote ENA but then directly unstaked 9.01 million ENA and sold it on Binance, according to the latest data, this whale has completed the sell-off process smoothly, tweeting to let retail investors take over, while in reality, it was themselves selling before Christmas.

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

We also observed that the entire decentralized exchange HYPE on the chain has maintained a continuous increase. Essentially, all sectors have seen declines except for HYPE, which recently has been on an upward trajectory, peaking at $35, a historical high, and currently has retraced to $27. Additionally, several promising projects have recently emerged from the HYPE ecosystem, which has some significant innovations, so everyone can keep an eye on it.

MEME sector

In the mainstream MEME sector, we also see that whether it's PEPE, WIF, or DOGE, there was a slight boost over the weekend but not much increase, only about 5%.

Basically, among some MEME coins listed on Binance, PUNT performed relatively well on Sunday, with an intraday increase of nearly 20%. However, this single-day increase of 20% for Squirrel, compared to the previous day's decline of 30%, can be seen as just a drop in the bucket. ACT is also in this situation, as it has dropped to a dismal 0.33, even lower than its price at launch on Binance, making the overall trend quite unappealing.

There has also not been a strong recovery in some MEME tokens on the chain. While the RIF and URO in the entire DeSci sector saw some gains over the weekend, other tokens were lackluster. However, we saw LUCE and CHILLGUYS increase, although it’s uncertain whether something significant is about to happen. Particularly with LUCE, a 60% increase is indeed unusual, and it is unclear whether some extraordinary events are forthcoming. If these tokens are indeed going to be listed on major exchanges, it is likely that these early investors will sell off quickly, so everyone should be cautious about the risks.

We also look at SEND; the club previously shared about this project, which is a BLink project on Solana that emerged around the summer. Initially, it was a BLink project, but later the project announced it might fail and shifted focus to robotics and AI-related endeavors. This token was officially issued at the end of July, and over this weekend, SEND experienced a significant surge, with an increase of over 10 times, mainly driven by the entire Solana core ecosystem's support.

NFT sector

At the same time, we also see that the entire NFT ecosystem has not shown any strong movements after the little penguin launched its token. It has mainly experienced a full retracement, and the overall trading volume has not been particularly eye-catching, continuously declining after the little penguin's token issuance.

BTC ecosystem

In the entire BTC ecosystem, we also see that ORDI and SATS are stagnant, having both experienced a halving compared to their highs.

Although Rune Dog surged to 9 or 10 earlier, it has recently been affected by a correction, returning to around 7. Not to mention the fractal Bitcoin and Merlin, which have both fallen by more than 50% from their previous levels.

3. Summary

In summary, the club believes that in the coming week, due to the effects of the New Year and Christmas holidays, the U.S. stock market will not open, and the entire market is unlikely to have particularly significant movements. If there are any, they will likely be continuous declines.

Therefore, the next two days, today and tomorrow, are likely to be quite critical, probably the last trading days. Let's see how the operations go, especially tomorrow, as tomorrow's market conditions will likely establish the overall trend for the following week. So everyone can stay tuned.