TL;DR

• The Federal Reserve is expected to cut interest rates twice in 2025, falling short of market expectations, causing declines in the crypto market and global stock markets.
• Gate.io ranked fourth globally in 24-hour spot trading volume, up 46.74% from the previous day.
• HYPE surged 40% over the past seven days, leading gains in the DeFi sector.
• The Hong Kong Securities and Futures Commission issued licenses to four virtual asset trading platforms (VATPs) under the fast-track licensing process.
• Clober DEX suffered a contract vulnerability attack, causing a loss of approximately $500,000.
• A significant unlock of 10 million Metars Genesis tokens is scheduled for next week. Investors are advised to monitor closely.

Market Analysis

Review and Insights

• BTC Market— After surpassing $100,000 on December 12, BTC experienced an upward trend during the first half of the week (December 12 to December 17), reaching a new high of $108,231. However, the price failed to maintain its upward momentum and entered a downward channel, erasing all weekly gains. During the decline, trading volumes increased significantly, indicating strong selling pressure. Currently, $99,000 is considered a critical support level.[1]

• ETH Market — Over the past seven days, ETH moved from a consolidation phase at high levels into a downward trend. On the most recent trading day (December 19), ETH experienced a sharp drop to around $3,661.79. This decline was accompanied by significant trading volume, indicating heavy selling pressure. Although there were brief attempts at rebounds during the downtrend, none resulted in a meaningful reversal.[2]

• Altcoins — The altcoin market was heavily influenced by BTC’s performance over the past week. The market decline on December 19 offset gains made earlier in the week, leaving the total cryptocurrency market cap at $3.668 trillion. Despite this, certain sectors—such as Derivatives, AI Agent launchpads, and RWA—outperformed, with several tokens gaining over 30%.[3]
• Option Market — In the options market, December 27 is a pivotal date, with approximately 85,000 call options and 60,000 put options open, representing a peak nominal value of $15 billion. Overall, the market sentiment appears bullish, as call option open interest consistently outpaced put options. While options expiring on January 31 and March 28, 2025, also experienced significant fluctuations, their scale was smaller compared to December 27. Leading up to December 27, market activity has been relatively calm, with lower delivery volumes, reflecting a cautious stance among participants as Christmas approaches.[4]

• Macro Data — On December 19, the Federal Reserve reduced its benchmark interest rate by 25 basis points to a range of 4.25%-4.50%, marking the third consecutive rate cut. This move aligns with market expectations and indicates the Fed’s gradual shift toward looser monetary policy. Fed Chair Jerome Powell’s remarks highlighted a cautious approach to further rate adjustments, signaling that the Fed is nearing a pause in its rate-cutting cycle. The strengthening of the U.S. dollar and Bitcoin’s decline reflect the market’s sensitivity to this decision, as investors recalibrate expectations for risk assets.[5]
• Stablecoins — The total market capitalization of stablecoins rose by 1.26% to $204.2 billion as additional funds entered the market.[6]
• Gas Fees — Over the past seven days, Ethereum’s average gas fee was 14.3 Gwei, down 21% from the previous week. A total of 10,994.13 ETH was burned, indicating a decrease in network activity. Uniswap was the top ETH-consuming protocol this week, burning 1,143 ETH in total. [7]

Trending Concepts

Bitcoin prices showed significant volatility this week, ranging between $99,000 and $108,000. Meanwhile, altcoin sectors delivered mixed results. According to CoinGecko, three sectors achieved notable gains: Perpetuals, AI Agent Launchpads, and RWA (Real-World Assets), rising approximately 27.2%, 19%, and 15.9%, respectively. [8]

Perpetuals — Perpetuals are financial instruments commonly used in trading, offering investors specific opportunities and strategies. This sector experienced significant growth over the past seven days, with a 27.2% increase as of December 19, 12:00 (UTC+8).

Among them, BLUE surged by 77.9% over the past 7 days. $BLUE serves as the utility token of Bluefin, a decentralized spot and derivatives trading platform built on the Sui blockchain. This growth was fueled by Bluefin’s recently disclosed data: cumulative platform trading volume surpassed $40 billion, total deposits exceeded $55 million, and unique depositors crossed 100,000. Currently, Bluefin supports a large portion of trading activity on the Sui network.[9]

AI Agent Launchpads - AI Agent Launchpads are decentralized platforms focused on artificial intelligence, providing tools and resources to enable users to quickly deploy and launch AI tokens (AI Agents). This sector gained 19% over the past seven days and is becoming a new trend in the integration of AI and blockchain.

Among them, EthernalAI (EAI), Solaris AI (SOLARIS), and Vrituals Protocol (VIRTUAL) achieved 7-day gains of 47%, 112.6%, and 38.5%, respectively. [10]

RWA (Real-World Assets) - RWA refers to the tokenization of real-world assets—such as real estate, bonds, stocks, and commodities—using blockchain technology to enable on-chain circulation. RWA has become a key direction for integrating DeFi with traditional finance, offering enormous market potential. By converting traditionally illiquid assets into tradable tokens, RWAs improve market efficiency and leverage blockchain’s transparency and smart contracts to reduce intermediary costs and enhance transaction security.

A notable performer in this sector is ANZ, which saw a 206% gain over the past 7 days. The project’s TVL (Total Value Locked) exceeded $86 million, and the ANZ/WETH trading pair on Aerodrome achieved an APR of 99%. The growing demand for ANZ tokens has driven its price upward.[11]

Top Performers

According to Gate.io data, the top-performing tokens over the past 7 days are as follows: [12]

HYPE — Weekly increase of approximately 40.0%, with a circulating market cap of $8.186 billion.
Hyperliquid is a high-performance blockchain platform focused on providing a low-latency trading experience. Its decentralized exchange has become one of the largest globally, featuring stable liquidity and an active user base. The platform combines the principles of decentralized finance (DeFi) with the seamless trading experience typically found on centralized exchanges (CEX), driving the development of all-chain finance.

Hyperliquid has shown rapid growth as an emerging protocol. Its total value locked (TVL) surged by $1.87 billion over the past 7 days, reaching $4.401 billion, surpassing the Base network ($4.062 billion) and ranking sixth. With a daily growth of 28.93%, Hyperliquid has delivered outstanding performance, driving its token price upward.[13]

VIRTUAL — Weekly increase of approximately 37.3%, with a circulating market cap of $2.598 billion.
Virtuals Protocol is an AI protocol that creates various AI characters for different virtual worlds (such as games or online spaces) that can respond via text, voice, and actions. The protocol incentivizes the decentralized creation and monetization of AI characters for every virtual interaction (gaming, metaverse, online interactions, or otherwise).

The confirmation of $VIRTUAL’s listing on the Hyperliquid trading platform contributed to its price increase. The decision to list was made in response to community requests, allowing users to trade $VIRTUAL with up to 5x leverage on Hyperliquid’s high-performance Layer 1 blockchain.[14]

ENA — Weekly increase of approximately 5.4%, with a circulating market cap of $3.373 billion.
Ethena (ENA) is an Ethereum-based protocol that creates synthetic US dollars using perpetual contracts and market yields from futures trading, offering a cryptocurrency solution that operates independently of traditional banking systems.

Ethena announced a strategic partnership with Trump-backed financial services company World Liberty Financial (WLF), which plans to implement sUSDe (a USD-pegged synthetic stablecoin) on the Ethena network in its first phase. This collaboration is considered a significant advancement in the DeFi space and has already started to positively impact Ethena’s native token, ENA.[15]

Weekly Spotlights

Hot Topic Review

Fed Cuts Interest Rates by 25 Basis Points, Citing Balanced Risks to Jobs and Inflation
The Federal Reserve lowered the federal funds rate target range by 25 basis points to 4.25%-4.5% as expected, stating that future policy adjustments would depend on updated data and risk assessments. According to the latest dot plot, the Fed anticipates two rate cuts in 2025, down from the previously projected four, suggesting a slower pace of easing. This change reflects a cautiously optimistic outlook on economic growth and confidence in achieving inflation and employment goals. However, the timeline for reaching the inflation target has been extended from 2026 to 2027, signaling greater tolerance for prolonged inflationary pressures. Despite a slight loosening in the labor market, with the unemployment rate rising 0.5% since the beginning of the year, it remains low, and the Fed deems moderate easing necessary to stabilize employment.

The Fed has also revised its U.S. economic growth projections upwards, expecting 2.5% growth in 2024 and 2.1% in 2025, higher than September’s forecasts. Goldman Sachs predicts three rate cuts in 2025, bringing the federal funds rate to 3.65%, though it expects no rate cut in January. Wells Fargo anticipates three cuts next year but emphasizes a slower pace and more cautious adjustments. Deutsche Bank believes the Fed may pause rate adjustments entirely in 2025 to monitor inflation progress. These forecasts highlight diverging views on the Fed’s policy pace amid complex expectations for inflation and economic growth.[16]

Hong Kong SFC Grants Licenses to Four Virtual Asset Trading Platforms Through Expedited Licensing Process
The Hong Kong Securities and Futures Commission (SFC) has taken a more defined and proactive approach to regulating virtual assets. By establishing a clear regulatory framework, Hong Kong provides legitimacy and structure to virtual asset trading platforms, improving industry transparency and trust. The licensing process balances investor protection with ecosystem growth, enhancing platform risk management through measures such as vulnerability assessments and penetration testing to improve security and compliance.

As regulatory clarity increases, blockchain applications are expected to expand beyond finance into areas like supply chain management and digital identity verification, fostering diversified growth. With well-established regulation and infrastructure, Hong Kong is laying a solid foundation for broader blockchain adoption. This strategic shift from a cautious to a proactive regulatory stance reflects Hong Kong’s alignment with global virtual asset market trends.[17]

Deutsche Bank Builds Layer 2 Blockchain on Ethereum
Deutsche Bank is developing a Layer 2 blockchain based on ZKsync technology to address compliance challenges for public blockchains in regulated financial environments. Named “Project Dama 2,” this initiative is part of Singapore’s Monetary Authority-led “Project Guardian,” which involves 24 global financial institutions exploring blockchain’s potential for asset tokenization. Deutsche Bank’s Layer 2 solution integrates trusted validators and grants regulatory bodies special oversight capabilities, enhancing transaction efficiency while ensuring compliance and security. If successful, this project could become a model for blockchain adoption by other financial institutions, particularly in combining asset services with decentralized networks.

According to the plan, the Minimum Viable Product (MVP) is expected to launch in 2025, though it still needs to pass through key regulatory approval processes. The L2 blockchain strikes a balance between transparency and financial compliance by offering faster, lower-cost transactions and regulatory tools (such as “super admin privileges”). This initiative demonstrates that Deutsche Bank is driving the further application of blockchain technology in regulated environments, injecting new possibilities for industry innovation while also providing new breakthrough directions for the integration of blockchain technology in traditional finance.[18]

Security Incident

Clober DEX Suffers $500,000 Loss from Contract Vulnerability Attack
Clober DEX lost $500,000 in a hack, highlighting ongoing security risks in the DeFi sector. The attack exploited an incomplete state update in a smart contract, allowing the attacker to repeatedly trigger callbacks using a malicious token contract and withdraw 133 ETH from the liquidity pool. The issue arose from an unreviewed code change rather than the contract’s original design, emphasizing the importance of thorough code audits. While the core protocol was unaffected, the liquidity pool vulnerability significantly damaged Clober’s reputation.

In response, Clober has offered a 20% bounty to incentivize the hacker to return the funds and pledged to enhance audits and security measures. This incident underscores systemic issues in DeFi projects, where rapid deployment often overlooks critical security considerations. Clober’s case serves as a reminder that security is not a one-time task but a continuous, long-term commitment.[19]

Project Highlights

Sonic Labs Announces Official Launch of Its Mainnet
Layer 1 blockchain project Sonic Labs (formerly Fantom) has officially launched its mainnet. Sonic Labs is a high-throughput, EVM-compatible Layer 1 blockchain platform designed to provide developers with incentives and robust infrastructure. The platform can process up to 10,000 transactions per second, offers sub-second finality, and includes a native decentralized gateway to Ethereum. FTM holders can now use the upgrade portal to convert their tokens to S on Sonic at a 1:1 ratio, unlocking access to various applications on the Sonic platform.[20]

Data Highlights

Gate.io Ranks Fourth Globally in 24-Hour Spot Trading Volume
Gate.io ranked fourth in the global centralized exchange 24-hour spot trading volume rankings, with a trading volume of $82.74 billion, a 46.74% increase from the previous day. This performance highlights Gate.io’s strong competitive edge in the global cryptocurrency market. As a leading global trading platform, Gate.io attracts a large user base and enhances market liquidity with its diverse trading pairs, market services, and robust security measures.

The significant growth in trading volume reflects not only increased market activity but also users’ trust in Gate.io’s technological stability and service transparency. This performance also mirrors the recent rise in overall crypto market activity, especially amidst heightened trading in hot assets and increased market volatility. As a pioneer in launching innovative markets, this data underscores Gate.io’s achievements in technological innovation, user experience optimization, and sustained investments in emerging markets.[21]

Riot Platforms Increases Bitcoin Holdings by 667 BTC, Total Holdings Reach $1.8 Billion
U.S.-based Bitcoin mining company Riot Platforms announced the acquisition of 667 BTC at an average price of $101,135 per Bitcoin, using funds raised from its recent $594 million convertible bond issuance at a low 0.75% interest rate. The purchase cost approximately $67.457 million, bringing Riot’s total Bitcoin holdings to 17,429 BTC, with a current market value of approximately $1.8 billion.

Through acquisitions and mining activities, Riot achieved a 36.7% return on Bitcoin holdings for the quarter and a 37.2% year-to-date return. Recently, U.S. Bitcoin mining companies have been leveraging financing to increase Bitcoin holdings, reflecting their strong confidence in the long-term value of crypto assets and strategic positioning. This trend not only reinforces the critical role of mining companies in the Bitcoin ecosystem but also highlights the growing appeal of cryptocurrencies as an asset class. Riot’s actions demonstrate its sharp market acumen and commitment to long-term growth in the industry.[22]

MicroStrategy’s Bitcoin Strategy Yields $14.6B in Shareholder Gains This Year
MicroStrategy’s co-founder and executive chairman Michael Saylor announced on X that the company’s Bitcoin-related financial operations have achieved a 72.4% return, generating a net gain of 136,965 BTC for shareholders, valued at approximately $14.66 billion (based on a Bitcoin price of $107,000).

This achievement underscores the success of MicroStrategy’s strategy of adopting Bitcoin as a core asset and highlights Bitcoin’s potential as a powerful investment tool. The high returns have delivered significant value to both the company and its shareholders, solidifying MicroStrategy’s leadership in the Bitcoin ecosystem. Saylor’s statement further validates Bitcoin’s appeal as a strategic asset and sets a benchmark for traditional financial firms in crypto asset management. The impressive results demonstrate MicroStrategy’s foresight in digital asset management and provide inspiration and confidence for other companies exploring the cryptocurrency market.[23]

Market Opportunities

Project Airdrops

Airdrop Project to Watch This Week: GoPlus

GoPlus is dedicated to addressing challenges in blockchain security by building a comprehensive decentralized user safety network. With its innovative architecture and product suite, GoPlus ensures that users can utilize blockchain technology safely and securely. GoPlus offers a range of products aimed at enhancing blockchain security, including SecWareX, Security API, Security SDK, and SecNet. By promoting transparency, inclusivity, and collaboration, GoPlus empowers the community. Its security detection API is integrated with numerous leading Web3 dApps, achieving 21 million daily calls. Meanwhile, its personal user security platform, SecWareX, garnered 1.8 million unique IP users within two months of launch. In June 2024, Goplus successfully raised $10 million to advance its Web3 security solutions.[24]

How to Participate:

1. Visit the website: https://app.gopluslabs.io/
2. Connect your personal Ethereum or Solana wallet.
3. Complete emergency security tasks and daily missions on the webpage interface.

Note:
The airdrop program and participation methods are subject to change. Users are advised to follow GoPlus’ official channels for the latest updates. Additionally, users should exercise caution, be aware of potential risks, and conduct thorough research before participating. Gate.io does not guarantee the distribution of future airdrop rewards.

Weekly Fundraising Report

Several projects successfully completed fundraising rounds this week, spanning infrastructure, DeFi, gaming, and other areas of broad application. According to RootData, between December 14 and December 20, 17 projects secured funding totaling $137.5 million.[25]

Here are the top three fundraising projects by scale:

BVNK - On December 17, BVNK completed a $50 million Series B funding round led by crypto-focused fund Haun Ventures, with participation from Coinbase Ventures and existing investor Tiger Global. The Series B valuation of the project is $7.5 billion. BVNK provides banking services and payments for crypto-native enterprises. Companies using BVNK can accept payments in fiat and cryptocurrency, hold hundreds of different currencies and crypto assets, and transfer funds globally.

Lens Protocol - On December 18, Lens Protocol successfully raised $31 million. The round was led by Faction and IDEO CoLab Ventures, with participation from Foresight Ventures and others. Lens Protocol is a decentralized open social graph that any application can integrate with. It enables creators to own the links between themselves and their communities, forming a fully composable, user-owned social graph. The protocol is built from the ground up with modularity in mind, allowing for new features and fixes to be added while ensuring that users retain ownership of their content and social connections.

Plume Network - On December 18, Plume Network announced the completion of a $20 million Series A funding round led by Haun Ventures. Plume is a fully integrated modular chain focused on RWAfi (Real World Asset Finance). The project has built the first modular, composable EVM-compatible chain focused on RWAs, aiming to simplify onboarding for all asset types and streamline capital onboarding with native infrastructure and unified RWAfi-specific features. Plume is creating a composable DeFi ecosystem around RWAfi, featuring an integrated end-to-end tokenization engine and a financial infrastructure partner network for builders to plug and play.

What to Watch Next Week

Token Unlock

According to Token Unlocks data, several significant token unlock events are scheduled for next week (December 21–27, 2024), with a total value exceeding $127 million.[26]

Here are the top 3 upcoming unlocks for next week:

MRS - On December 23 at 12:00 AM UTC, approximately 10 million MRS tokens will be unlocked, accounting for 11.87% of its circulating supply and valued at approximately $50.2 million. The average daily trading volume of MRS has been volatile, with recent volumes significantly lower than the amount to be unlocked. This event could lead to price fluctuations for MRS tokens, and investors holding MRS should monitor the situation closely.

IMX - On December 27 at 12:00 AM UTC, around 24.52 million IMX tokens will be unlocked, representing 1.45% of its circulating supply and valued at approximately $36.78 million. With IMX’s recent average daily trading volume around $100 million, the impact of this unlock on token prices is expected to be relatively minor.

ADA - On December 21 at 12:00 AM UTC, about 18.53 million ADA tokens will be unlocked, accounting for 0.05% of its circulating supply and valued at approximately $17.18 million. Given ADA’s recent average daily trading volume of around $1 billion, this unlock is unlikely to have a significant impact on its price.

Crypto Calendar

Several significant events next week (2024.12.21-12.27) will impact the cryptocurrency market and global economy [27]. The Avalanche Ambassador DAO will convene on December 21, 2024, at InnoSpace in Yangpu District. Participants will gain insights into Avalanche’s latest developments, with registered attendees eligible for AVAX airdrops [28]. On December 23, the Conference Board will release its latest Consumer Confidence Index [29]. This key economic indicator measures U.S. consumers’ sentiment about current and future economic conditions. Through surveys of thousands of American households, it tracks views on job markets, income, and prices, reflecting potential consumer spending behavior. A higher index typically signals increased consumer spending, which can stimulate economic growth.

References:

1. Gate.io, https://www.gate.io/price/bitcoin-btc
2. Gate.io, https://www.gate.io/price/eth-btc
3. Cryptoquant, https://cryptoquant.com/asset/btc/chart/derivatives/taker-buy-sell-ratio?exchange=all_exchange&window=DAY&sma=0&ema=0&priceScale=log&metricScale=linear&chartStyle=line
4. Coinglass, https://www.coinglass.com/zh/pro/options/OIExpiry
5. Federal, https://www.federalreserve.gov/newsevents/pressreleases/monetary20241218a.htm
6. Defillama, https://defillama.com/stablecoins
7. Etherscan, https://etherscan.io/gastracker#chart_gasprice
8. Coingecko, https://www.coingecko.com/en/categories
9. X, https://x.com/bluefinapp/status/1867641439301116351
10. CoinGecko, https://www.coingecko.com/en/categories/ai-agent-launchpad
11. X, https://x.com/AnzenFinance/status/1868710000904093894
12. CoinGecko, https://www.coingecko.com/
13. DefiLlama, https://defillama.com/top-protocols
14. X, https://x.com/HyperliquidX/status/1868513228743188731
15. X, https://x.com/worldlibertyfi/status/1869454093015760977
16. TheBlock，https://www.theblock.co/post/327518/sec-delays-making-a-decision-on-franklin-crypto-index-etf-dubbed-ezpz
17. SFC，https://apps.sfc.hk/edistributionWeb/gateway/TC/news-and-announcements/news/doc?refNo=24PR211
18. Cointelegraph，https://cointelegraph.com/news/deutsche-bank-layer-2-blockchain-ethereum-zksync
19. X，https://x.com/CloberDEX/status/1866426442294469033
20. Sonic Labs，https://blog.soniclabs.com/sonic-mainnet-launch-evm-compatible-verifiable-10-000-tps-and-sub-second-finality/
21. Coingecko，https://www.coingecko.com/en/exchanges
22. RiotPlatform，https://www.riotplatforms.com/overview/sec-filings/all-sec-filings/
23. X，https://x.com/saylor/status/1869001572862378428
24. Goplus Network，https://app.gopluslabs.io/
25. Rootdata，https://www.rootdata.com/Fundraising
26. Tokenomist，https://tokenomist.ai/unlocks
27. Gate.io, https://www.gate.io/zh/calendar
28. PANews，https://www.panewslab.com/zh/calendar/index.html
29. Jin10，https://rili.jin10.com/day/2024-11-14

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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.