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Weekly Market Insight: December Week 2
10 Dec 2024
Headline News
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- Bitcoin surpassed $100,000 after 15 years, 11 months, and 1 day since its genesis block. Over the last week, Bitcoin ETFs recorded net inflows of $2.73 billion, while Ethereum ETFs hit a record high of $836.69 million. Ethereum outperformed Bitcoin for three consecutive weeks, achieving an 8% gain last week compared to Bitcoin's 4% increase.
Macro-Outlook
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- The U.S. ISM Manufacturing PMI in November increased to 51.5, exceeding expectation of 50.5. On the other hand, ISM Service PMI in November declined to 52.1, well below forecasts of 55.5.
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- The U.S. Non-Farm Payroll in November increased 227K jobs in November, better than forecasts of 200K. Despite that, the unemployment rate went up to 4.2% in November from 4.1% in the prior month, in line with market expectations. Both labor force participation rate and employment population ratio edged down in November.
Upcoming Economic Calendar including,
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- Wednesday, December 11, 9:30pm: U.S. Inflation Rate in November
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- Wednesday, December 12, 9:30pm: U.S. PPI in November
Weekly-Cryptos-Overview
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- Trump is reportedly appointing Davis O.Sacks as White House director of artificial intelligence and cryptocurrency. Sacks serves as an advisor to 0x Protocol, founder of Craft Ventures which invested dYdX and early investor in Multicoin Capital.
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- Donald Trump nominated Paul Atkins as the new SEC Chairman. Atkins has been an advisor for Reserve Protocol and Securitize.
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- The National Center for Public Policy Research submitted a shareholder proposal to Amazon for consideration to add Bitcoin to the company treasury at the 2025 annual shareholder meeting, which is typically held in the month of May.
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- Coinbase 50 index added AXS, BLUR, JASMY, KSM and EGLD into the index.
Layer 1 and Layer 2s
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- Chintai partners with PowerDime to tokenise $250 million worth of Virtual Power Purchase Agreement (VPAA), enabling trading of renewable energy on-chain.
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- Particle Network, a chain abstraction protocol, launched UniversalX, the chain-agnostic trading platform.
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- Movement Network Mainnet Beta is now live, users will soon able to claim MOVE on Ethereum and bridge over to the network.
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- Mode launched Synth testnet on Bittensor subnet for financial forecasting.
Dapps
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- Render Network passed RNP-016, 017 and 018, integrating Arnold, integrating OctaneRender for Blender and increasing Artist and AI client rewards in year 2 emissions.
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- Jupiter passed the Jupuary Vote 2 with 87% favourable vote. The second proposal emphasised explicit allocation for stakers with bonus for historical consistency, real users parameters and allocation for holders and voters.
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- Aerodrome introduced AERO Fed, veAERO voters will be able to vote to nudge emissions rates up or down.
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- PancakeSwap introduced SpringBoard, its token launching platform on BNB. The first ranking token, CAKEDOG, is currently at approximately $2 million worth of market capitalisation.
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- SushiSwap introduced 2025 plans including a trading platform on Solana, orderbook perpetual DEX, LVR AMM solution and SushiSwap aggregator.
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- SSV passed the proposal to allocate $55.3 million 4-year operational budget, diversify the DAO treasury and ensure long-term network growth and stability through controlled minting and fee burning.
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- Kamino launched Kamino Swap, an intent-based exchange, enabling best price execution for liquidators and traders.
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- MilkyWay launched a restaking service with TIA and TIA LSTs. It has accumulated approximately $3 million worth of TIA into the pools.
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- The Wormhole W Staking Reward Program (SRP) is now live. Currently, approximately 14% of the token circulating supply is staked.
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- Osmosis announced supporting the native BTC bridge on the platform. The weekly trading volume of the platform hit the highest level since April 2024.
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- Ritual, an execution layer for AI models both on-chain via smart contract and off-chain, launched its private testnet. The protocol is funded by Archetype Ventures, Polychain Capital and more.
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- Hashflow, an intent-based DEX and ZK Settlement Layer for exchanges, passed the proposal to use 50% of the protocol fees to fuel buybacks and burns.
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- Meteora, DEX on Solana, introduced M3M3, a (3,3) staking mechanism for memecoins.
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- Ora Protocol launched the Buddhism Religious Model, BRM, as its Initial Model Offering on the platform. BRM is a Large Language Model built with SFT and RLHF and dataset of Humanistic Buddhism Corpus, including canonical buddhist scriptures.
Upcoming Alpha and Governance
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- Instadapp proposed to rebrand INST to FLUID. The proposal includes protocol-owned liquidity, buyback program with up to 100% revenue, CEX listing allocation, Fluid DEX v2 and more.
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- Blast proposed to buyback BLAST token with native yield from deposited ETH and USD stablecoins on the network.
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- Pudgy Penguins announced that it will launch PENGU token on Solana within 2024, which 25.9% of the total supply allocated for Pudgy community, 24.12% for other communities and 0.35% for FTT holders.
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- Adidas and StepN announced the dropping of 1,200 physical shoes in December.
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- Microsoft shareholders will vote on whether to invest in Bitcoin on December 10.
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- Morpho voting on licensing protocol code to Berachain Foundation will end on December 10. Based on current progress, the proposal is likely passed.
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- Frax Finance is expected to announce the details of Vision 2030 on December 11.
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- Polygon is expected to launch AggLayer v0.2 testnet on December 9, allowing interoperability across chains on AggLayer.
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- Treasure DAO is expected to make a major announcement on December 11.
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- SushiSwap also proposed liquidating all their SUSHI holding to stablecoins, BTC, ETH and other DeFi tokens. The proposal will end on December 14.
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- Curve voting on increasing scrvUSD fee sharing from 20% to 50% is expected to end on December 15.
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- EigenLayer proposed Rewards v2, enabling AVSs directly rewarding operators based on performance, variable operator fees and batch rewards claiming. The upgrade is expected to launch in January.
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- ZKsync is expected to launch Ignite, its interoperability feature across Elastic Chains on January 6.
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- Ethena announced partnership with Derive, the leading onchain option protocol, for onboarding to Ethena Network. DRV is expected to launch on January 15. 5% of the token supply will be allocated to sENA stakers.
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- Safe introduced Safenet, a transaction processor network that connects L1, L2 and even offchains systems into a single unified experience. The team is expected to deliver an alpha version in Q1 2025.
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- Synapse Labs proposed to initiate a 12-month buyback program targeting 5 million SYN or 2% of token circulation, a 65% emission reduction and exploring a model for staked SYN with fee distribution from the network.
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- HMX, the leveraged perpetual exchange built on-top of GMX, proposed to launch a new Central Limit Order Book (CLOB) model, revamp in tokenomics and a rebranding in 2025.
Token Unlock
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- IO token unlocked on December 11th, amount representing 2.88% of the token supply.
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- APT token unlocked on December 12th, amount representing 2.11% of the token supply.
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- STRK token unlocked on December 15th, amount representing 2.84% of the token supply.
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- ARB token unlocked on December 16th, amount representing 2.26% of the token supply.
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- APE token unlocked on December 17th, amount representing 2.16% of the token supply.
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- WELL token unlocked on December 23rd, amount representing 1.21% of the token supply.
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- IMX token unlocked on December 27th, amount representing 1.44% of the token supply.
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- GRASS token unlocked on December 28th, amount representing 1.52% of the token supply.
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- PRIME token unlocked on December 31st, amount representing 1.47% of the token supply.
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- OP token unlocked on December 31st, amount representing 2.55% of the token supply.
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