Preface
Bitcoin and Ethereum have dropped by 0.56% and 4.75% respectively in the past 24 hours, with current prices at $94,462 and $3,408. The ETH/BTC exchange rate stands at 0.036. The Fear & Greed Index for the crypto market is at 73, indicating greed.

Market Trending

Yesterday, the market showed signs of an unusual rebound. Bitcoin has been in a downtrend since last Friday, briefly dipping below $93,000 yesterday, but altcoins displayed an unusual lack of follow-through on the downturn. Ethereum rebounded above $3,400, leading the altcoin market to a slight recovery. The prior hawkish Fed interest rate cut caused a significant decline in rate-cut expectations, and currently, the market lacks short-term enthusiasm. However, long-term buying pressure and Bitcoin’s high market capitalization may trigger a stronger altcoin rally. Investors should closely monitor the volatility of major coins in the short term.
DeFi Sector: DeFi projects, which showed strong performance in the previous market cycle, continue to maintain a strong recovery, with AAVE, LINK, and ENA leading the recovery, though the leader UNI has yet to show significant recovery.
DeSci Sector: The DeSci sector has exploded due to the impact of BIO, with RIF, URO, and other mainstream tokens seeing gains of over 20%.
Meme Sector: Virtuals Protocol’s ecosystem tokens are experiencing widespread gains, and AI-based meme projects on the Base chain are gaining traction. However, mainstream high-market-cap meme coins have not shown significant movement.

Spot Bitcoin ETF Flows

Yesterday, the U.S. Bitcoin spot ETF saw a net outflow of $226.42 million, with IBIT showing a net inflow of $31.78 million, FBTC experiencing a net outflow of $146 million, and GBTC having a net outflow of $35.94 million.
Check Out the Latest Prices, Charts, and Data of BTC/USDT Spot and BTCUSDT Perp!

Daily Spotlight

Today’s spotlight is VIRTUAL, with a 24-hour price increase of 30.02%.
Virtuals Protocol (VIRTUAL), founded in 2021, is a decentralized AI agent generation platform based on the Base chain. It creates various AI characters for different virtual worlds (such as games or online spaces) that can react through text, voice, and actions. AI agents on the protocol can move and speak in 3D spaces, perform on-chain transactions, learn, make decisions, and interact with the environment virtually. Virtual Protocol also incentivizes the decentralized creation and monetization of AI characters for every virtual interaction (gaming, metaverse, online interactions, etc.).
With the AI Agent concept gaining popularity, VIRTUAL has seen its token price rise sharply since October, reaching a new high of $3.05 yesterday, with a 24-hour increase of 30.02%.
Check Out the Latest Prices, Charts, and Data of VIRTUAL/USDT Spot and VIRTUALUSDT Perp!

The Word on the Street

Crypto-Friendly Senator Bernie Moreno Appointed to Senate Banking Committee It is reported that crypto-friendly Senator-elect Bernie Moreno (R-Ohio) has been appointed to the Senate Banking Committee. The Senate Banking Committee may become a key player in the introduction of crypto-related legislation in 2025, as it oversees two crucial agencies: the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Other pro-crypto legislators, including Senator Cynthia Lummis (R-Wyo), have also been assigned to stay on the committee. It is expected that the Senate will confirm these appointments during the next Congress. According to the announcement, Moreno has also been appointed to serve on the Senate Commerce Committee, Senate Budget Committee, and Senate Homeland Security and Government Affairs Committee.

Project Upgrades

According to a proposal on Aave’s governance forum, Aave is considering integrating a new Chainlink oracle aimed at redistributing transaction frontrunning profits back to decentralized finance (DeFi) protocol users.
On December 23rd, decentralized oracle provider Chainlink launched a new service called Smart Value Recovery (SVR), which is designed to capture profits from Maximal Extractable Value (MEV) for the benefit of DeFi protocols. On the same day, Aave proposed to integrate SVR, “to recover MEV from Aave liquidations and return it to the Aave ecosystem.”