TL;DR

• BTC price has dropped by 1.75% in the last 24 hours, fluctuating within a narrow range of $95,200 to $96,200.
• XYO has surged by over 121% in a single day, leading the altcoin sector.
• XRP saw a liquidation amount of $85.69 million yesterday, making it the cryptocurrency with the highest liquidation value of the day.
• Bitcoin’s illiquid supply has reached an all-time high, accounting for nearly 75% of the total supply.
• The private key of DeBox’s operational account was leaked, resulting in a loss of over 4.87 million BOX tokens and 31 ETH.
• WisdomTree has filed an XRP ETF application with the U.S. SEC.

Market Analysis

According to Gate.io market data, as of 4:00 AM (UTC+0) on December 3rd[1]:

• BTC – BTC price has fallen by 1.75% in the last 24 hours, with a daily high of $98,120.0 and low of $94,404.8. Today, the BTC price has continued its downward trend, with heavy selling pressure. At 12:00 AM on December 3rd, the price briefly rebounded, showing a small peak, but failed to maintain the upward momentum and quickly fell back, fluctuating within a narrow range of $95,200 to $96,200. Currently, the market is in a short-term consolidation phase. As of 9:00 AM (UTC+8) on December 3rd, the BTC price is $95,816.8.

• ETH – Over the past 24 hours, Ethereum has Strong market support suggests limited volatility in the near term. The highest price in the last 24 hours was $3,760.30, and the lowest was $3,557.22. Currently, ETH is experiencing an upward consolidation, but it has failed to break through the short-term resistance level of $3,681. As of 10:00 AM on November 5th, the Ethereum price is $3,634.06, reflecting a 2.83% decline in the past 24 hours.

• ETF – According to SoSoValue data, on December 1st, the total net inflow for the U.S. Bitcoin spot ETF exceeded $353 million[4], while the U.S. Ethereum spot ETF saw a total net inflow of $24.23 million[5].
• Altcoins – The Zoo-Themed sector rose by 21.9%, showing strong performance, indicating the appeal of animal-themed assets in the meme market. The RWA Protocol sector increased by 13.6%, reflecting the growing demand for real-world asset protocols in the market[6].
• U.S. Stock Indices – The S&P 500 Index rose by 0.24%, the Nasdaq Index increased by 1.12%, and the Dow Jones Index dropped by 0.29%[7].
• Spot Gold – The price of spot gold dropped to $2,638.58 per ounce, with no significant decline during the day. Strong market support suggests limited volatility in the near term[8].
• Fear and Greed Index – The Fear and Greed Index stands at 76, indicating that the market is in a state of greed[9].

Top Performers

According to Gate.io market data[10], combining the trading volume and price performance of the past 24 hours, as of 4:00 AM (UTC+0) on December 3rd, the top-performing altcoins (with significant price gains and a circulating market cap over $50 million) are as follows:

HBAR（Hedera）– The price surged by approximately 51.28% in a single day, with a total circulating market cap of $11.19 billion.
Hedera is a public ledger network that uses a hashgraph consensus mechanism, offering aBFT-level security and ensuring data integrity through transparent, immutable transaction records. Its native cryptocurrency, $HBAR, not only supports the development of peer-to-peer micropayment business models but also effectively defends against malicious attackers at the network level, demonstrating its unique performance advantages in public ledger networks.
The growth of HBAR may be driven by Hedera’s collaboration with the U.S. Federal Reserve’s FedNow payment network, supported by Dropp’s technological expertise, positioning it as a key participant in real-time transactions.

XYO （XYO Network）– The price surged by approximately 121.94% in a single day, with a total circulating market cap of $24.58 million.
XYO is a DePIN (Decentralized Physical Infrastructure Network) ecosystem that integrates consumer software, developer tools, decentralized networks, and digital assets. It aims to promote and incentivize the aggregation, verification, and use of decentralized data across various fields, including artificial intelligence modeling, metaverse scenarios, and data analysis, demonstrating broad technological potential and application prospects.
Yesterday, XYO’s price saw a significant increase, mainly driven by an important announcement: XYO’s Chief Operating Officer, Scott P. Scheper, revealed the first look at a new app designed specifically for Tesla owners. The app was approved for release just two days after meetings with SpaceX and Tesla. The geospatial technology is expected to integrate Tesla and SpaceX into its decentralized network, boosting market confidence in XYO’s technological applications and ecological value.

MOODENG （Moo Deng）– The price increased by approximately 54.73% in a single day, with a total circulating market cap of $54.39 million.
MOODENG is a community-driven meme coin based on the Solana blockchain, inspired by a viral baby hippo from Thailand. Since its rise to fame in September, Moo Deng’s adorable and relaxed image has gained significant popularity online. The project emphasizes inclusivity and community spirit, encouraging users to adopt its unique culture, which further fueled interest in related meme coins. \
The primary catalyst for this price surge was the listing of MOODENG on a major centralized exchange, which attracted market attention and capital inflow, driving momentum for the price increase.

Data Highlights

Bitcoin’s Illiquid Supply Reaches All-Time High, Representing Nearly 75%
Bitcoin’s illiquid supply refers to the amount of Bitcoin that is held long-term and rarely moved or traded. This supply is typically stored in cold wallets or held by long-term investors. Due to its low liquidity, it is considered “illiquid.” An increase in this supply is generally interpreted as a sign of growing long-term bullish sentiment in the market for Bitcoin, while also intensifying its scarcity, potentially providing price support.

As of early December, Bitcoin’s illiquid supply has reached a historic high, while exchange balances has reached dropped to multi-year lows. The new high in illiquid supply suggests that more Bitcoin is being locked away by long-term holders, exiting the market’s circulation. This illiquid supply now accounts for nearly 75% of the total supply, reflecting the growing confidence in Bitcoin as a long-term store of value. Meanwhile, exchange balances have fallen to historic lows, now making up less than 14% of the total supply. This trend indicates a continued decline in the number of Bitcoin available for circulation on exchanges, further tightening market supply.

This supply structure has profound implications for market dynamics. The growth of illiquid supply could intensify price volatility, especially during periods of surging demand, increasing risks for traders. However, for long-term investors, the scarcity of supply tends to strengthen Bitcoin’s function as a store of value and enhance its investment appeal. Future market performance will still be influenced by macroeconomic trends and changes in investor sentiment, with the deepening supply scarcity likely to gradually increase Bitcoin’s role in asset allocation[11].

Bitcoin Mining Difficulty Increases by 1.59%, Reaching All-Time High
According to Cloverpool data, Bitcoin’s mining difficulty adjusted at block height 872,928 (on December 2, 2024, 11:34 PM UTC+8), with the difficulty rising by 1.59% to a historic high of 103.92 T. The current global average hash rate stands at 726.57 EH/s. Typically, an increase in mining difficulty correlates strongly with an increase in network hash rate, suggesting that a large number of miners have recently joined Bitcoin mining activities. This change also helps maintain block time stability.

However, when mining difficulty increases, the computational load faced by mining machines also rises, reducing the profitability of some marginal miners. This is especially true in regions with high electricity costs, where miners face longer investment return periods.

For investors, the recent difficulty increase may impact the overall profitability of the industry. Balancing mining efficiency with energy cost management remains a key focus of market competition. In the foreseeable future, as difficulty continues to rise, mining companies will need to innovate and adapt to this trend. Investors should prioritize partners with efficient equipment and strong cost control capabilities to secure more stable returns[12].

XRP Liquidation Amount Reaches $95.84 Million
According to the latest data from Coinglass, as of 6:00 PM (UTC+8) on December 2nd, the total liquidation amount across the entire network in the past 24 hours was $623 million, with long positions accounting for $404 million and short positions for $220 million. Among these, Bitcoin saw a liquidation amount of $75.97 million, Ethereum’s liquidation amounted to $62.09 million, and notably, XRP experienced a liquidation of $95.84 million[13].

Currently, XRP’s market capitalization is approximately $15.42 billion, surpassing both USDT and Solana, and ranking third in the cryptocurrency market by market cap. XRP has risen to 117th place in global mainstream assets, briefly surpassing the market caps of Uber and Siemens. As one of the longstanding projects in the cryptocurrency space, XRP’s recent performance has been driven by favorable policies and other positive factors, leading to growing market expectations for its future. However, it is important to note that since November 16, XRP’s price and trading volume have shown an inverse correlation, suggesting that XRP may be entering a distribution phase, with speculative traders likely preparing to sell off their holdings[14].

Ethereum ETF Sees First Net Outflow in Seven Days
According to Coinglass data, on December 2nd, the U.S. Bitcoin spot ETF saw a net inflow of $408 million, with a total daily trading volume of $4.238 billion. The total value of BTC managed by the ETF is $106.007 billion, accounting for 5.47% of Bitcoin’s total market capitalization[15].

On the same day, the Ethereum spot ETF experienced a net outflow of $44.4 million, with a total daily trading volume of $645 million. The total value of ETH managed by the ETF is $11.04 billion, making up 2.54% of Ethereum’s total market capitalization. After a week of continuous net inflows, the Ethereum ETF saw its first net outflow, likely triggered by short-term consolidation that prompted investors to take profits. This may signal a turning point in market sentiment.

Spotlight Analysis

Fed’s Williams: Further Rate Cuts Expected from the Federal Reserve
On Monday, John Williams, President of the Federal Reserve Bank of New York, stated that the Federal Reserve may further lower its target interest rate as inflationary pressures continue to ease. Speaking at a meeting of the Queens Chamber of Commerce in New York, Williams said, “Monetary policy remains in restrictive territory to support the sustainable return of inflation to our 2 percent goal.” Looking ahead, he added, “I expect it will be appropriate to continue to move to a more neutral policy setting over time” noting that the policy path will depend on incoming data.

Williams did not provide a clear indication on the timing of potential rate cuts or whether he believes the Fed will reduce its rate target at the upcoming FOMC meeting this month. If the Fed decides to further cut rates, it could boost market sentiment in the short term and potentially drive up global asset prices[16].

DeBox Operational Account Private Key Leaked, Resulting in Losses of Over 4.87 Million BOX and 31 ETH
On December 2, 2024, DeBox officially announced that the private key of its operational account’s EOA (Externally Owned Account) wallet had been leaked, leading to the theft of 4.879 million BOX tokens and 31.03 ETH. The official statement assured the community that this incident would not affect the security of platform users’ assets, and that users could remain confident. In response to the theft, DeBox has implemented a series of measures, including the repurchase of the stolen tokens through its stabilization fund. The repurchased tokens will be injected into the DAO asset pool, with the specific usage to be decided by the community. Additionally, the operational account will be migrated to a multi-signature wallet in the future to enhance security. The team has also commissioned a security company to investigate the incident, and the handling of any recovered assets will be decided by community vote[17].

The immediate impact of this event has been a blow to DeBox’s market trust, with the token price plummeting by more than 30% in a short period. Liquidity on Uniswap V2 dropped sharply to just $2,900, and total liquidity across the chain stands at approximately $10,000. The significant loss of funds has not only weakened the market support for the token but has also shaken the confidence of the community. The platform now faces scrutiny regarding its security management capabilities, particularly given the fundamental issue of the private key leak, which has led users to adopt a wait-and-see attitude toward future security upgrades.

From DeBox’s response, it is clear that the team is attempting to mitigate the losses by using the stabilization fund and advancing the multi-signature mechanism. This approach demonstrates the team’s commitment to addressing the situation, but it may not fully restore market confidence in the short term. Additionally, while measures such as token repurchase and capital injection have been taken to stabilize the market, the long-term impact on the platform’s ecosystem remains to be seen. DeBox will need more time to prove the stability of its platform and ensure that similar incidents do not occur in the future.

WisdomTree Submits XRP ETF Application to the U.S. SEC
According to an S-1 filing disclosed by the U.S. Securities and Exchange Commission (SEC), WisdomTree has submitted an application for the WisdomTree XRP Fund, an exchange-traded fund (ETF) that offers investors exposure to the price of XRP. The fund is planned to be listed on the Cboe BZX Exchange, Inc. under the ticker symbol “TICKER”. BNY Mellon will serve as the fund’s administrator, fund accountant, and transfer agent for the trust, overseeing its daily operations. This move marks further progress in the financial productization and institutional adoption of XRP.

The submission of this filing comes amid a significant surge in XRP’s price, as well as market expectations that leadership changes at the SEC will take place after January 20, 2025. While many investors view current SEC Chairman Gary Gensler as a crypto-skeptic regulator, there is a belief that the new leadership may adopt a more lenient regulatory stance, potentially pushing for more altcoins to launch institutional-grade ETFs in the U.S., which could further boost the growth of the crypto market. However, this trend could also result in speculative sell-offs, especially for altcoins, which tend to lack stability. Moreover, the gradual acceptance of crypto assets by institutions does not necessarily equate to market maturity, and risk control and regulation remain potential concerns that must be monitored.

Funding News

According to RootData’s statistics on December 3, there have been 3 public funding rounds in the blockchain and Web3 space over the past 24 hours, raising over $18 million, with investments spanning areas such as DeFi and CeFi. The specific funding details are as follows:

LSP Finance — Announced the completion of a $1 million Pre-Seed round, with the company now valued at $33 million. The round was backed by notable investors including Cryptogram Venture, CatcherVC, WAGMi Ventures, and K24 Ventures.
LSP is a user-centric digital asset management platform aiming to reshape the DeFi landscape by unlocking liquidity. It focuses on PoS network yields, early Alpha opportunities, and high-return project discovery. The platform’s multi-chain architecture supports seamless connections with ecosystems such as Aleo, Arbitrum, and Manta, providing cross-chain users with more opportunities and greater flexibility.

BLIFE Protocol — Announced the completion of a $7 million funding round, led by UTXO Management, with participation from Animoca Brands and other companies.
BLIFE’s vision is to lead the adoption and development of Web3 on Bitcoin, using $BLIFE to fundamentally transform the ordinals and Bitcoin fungible token ecosystem, moving from niche and complex to valuable and accessible. This vision covers areas such as DeFi, gaming, entertainment, and education, with $BLIFE serving as the key governance token.

Brighty — Announced the completion of a $10 million funding round, with Futurecraft Ventures as the investor.
Brighty is an integrated application that combines both digital banking and crypto banking, allowing users to save, send, spend, and earn up to 10% annual returns in stablecoins, with daily payments. Brighty aims to enable individuals to purchase cryptocurrency and securely enter the crypto economy.

Airdrop Opportunity

Magic Eden

Magic Eden is a leading multi-chain NFT and Bitcoin trading platform, committed to building a cross-chain ecosystem super DApp. It offers users a seamless, one-stop multi-chain asset trading experience within its mobile wallet. On December 2, Jack Lu, co-founder and CEO of Magic Eden, announced on social media that the ME token airdrop qualification check would open on December 4, aiming to reward loyal users and accelerate Magic Eden’s vision of popularizing digital ownership[20].

How to Participate:

• Start Time: December 10, 2024 (UTC+0)
• Total Airdrop Amount: 125,000,000 ME (Unlocking Ratio: 12.5%)
• Allocation Method: Based on trading activity, cross-chain participation, and user loyalty
• Participation Requirements: Users must use the Magic Eden wallet to claim and stake $ME tokens
• Participation Steps: Before the TGE, use the qualification check tool to verify wallet status → Connect your wallet to the Magic Eden platform → On the TGE day, log in to the Magic Eden app and claim your airdrop tokens → Stake $ME tokens to receive additional rewards

Notes:
The airdrop plan and participation details may change at any time, so users are advised to follow official channels for the latest information. Participants should exercise caution and conduct thorough research before joining. Gate.io does not guarantee the distribution of future airdrop rewards.


References

1. Gate.io, https://www.gate.io/price
2. Gate.io, https://www.gate.io/trade/BTC_USDT
3. Gate.io, https://www.gate.io/trade/ETH_USDT
4. SoSoValue, https://sosovalue.xyz/assets/etf/us-btc-spot
5. SoSoValue, https://sosovalue.xyz/assets/etf/us-eth-spot
6. CoinGecko, https://www.coingecko.com/en/categories
7. Investing, https://investing.com/indices/usa-indices
8. Investing, https://investing.com/currencies/xau-usd
9. Gate.io, https://www.gate.io/bigdata/homeindex
10. Gate.io, https://www.gate.io/price
11. Glassnode, https://studio.glassnode.com/metrics?a=BTC&m=supply.IlliquidChange
12. Explorer, https://explorer.cloverpool.com/zh-CN/btc/insights-difficulty
13. Coinglass, https://www.coinglass.com/
14. Coingecko, https://www.coingecko.com/
15. Coinglass, https://www.coinglass.com/zh/eth-etf
16. Yahoo Finance, https://finance.yahoo.com/news/feds-williams-eyes-further-cuts-213326390.html
17. DeBox, https://x.com/DeBox_Social/status/1863454873112768864
18. SEC, https://www.sec.gov/Archives/edgar/data/2046791/000121465924019800/wtxrp112224s1.htm#useofproceeds
19. Rootdata，https://www.rootdata.com/zh/Fundraising
20. X, https://x.com/0xLeoInRio/status/1863611388033167730
    
    
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Disclaimer
Investing in the cryptocurrency market involves high risk, and it is recommended that users conduct independent research and fully understand the nature of the assets and products they are purchasing before making any investment decisions. Gate.io is not responsible for any losses or damages caused by such investment decisions.