Weekly Market Insight: December Week 3

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Market Updates

16 Dec 2024

Headline News

- Despite the largest daily liquidation event since 2021, resulting in over $1.7 billion liquidated across all perpetual contracts. Bitcoin demonstrated remarkable resilience. The price swiftly recovered, posting a 3.16% gain over the past week.
- Ethereum ETFs continued to exhibit strong demand, with net inflows reaching another record of $854.85 million last week. This resilience persisted despite a 1.22% price decline, driven by the broader market liquidation event. Currently, Ethereum ETFs hold 2.92% of the ETH total supply, while approximately 16% ETH is held on centralized exchanges and 28.1% is staked.

- The U.S. inflation rate and core inflation rate in November rose to 2.7% and 3.3% respectively, aligning with market expectations. The PPI increased by 0.4%, surpassing the anticipated 0.2%. Despite persistent inflationary pressures, this is unlikely to alter the Fed's trajectory to implement a 25bps rate cut in December, as reflected by a 97% market consensus. However, combined with the potential introduction of tariffs by the Trump administration, the probability of a rate cut exceeding 50bps in 2025 dropped from 50% to 32% over the past week.

- Tuesday, December 17, 9:30am: U.S. Retail Sales in November
- Thursday, December 19, 3:00am: FOMC Meeting
- Thursday, December 19, 11:00am: BoJ Interest Rate Decision
- Thursday, December 19, 9:30pm: U.S. Q3 Final GDP
- Friday, December 20, 9:30pm: U.S. PCE Price Index, Personal Income and Personal Spending in November

- Binance and Circle entered into a strategic partnership to adopt USDC in their corporate treasury and make USDC more extensively available across Binance's products and services.
- Nasdaq announced they will be adding MicroStrategy into Nasdaq-100 Index.
- World Liberty Finance has brought ETH, AAVE, LINK, ENA and ONDO via CoW Swap in the past week.
- Grayscale announced two new single asset crypto investments for LDO and OP.

- Avalanche raised $250 million from Galaxy Digital, Dragonfly and ParaFi Capital.
- Frax Finance announced rebranding of FRAX stablecoin to frxUSD and FXS to FRAX as part of their latest Vision Roadmap. In the second part of the roadmap, Frax announced AIVM, a parallelised VM designed for AI agents on Fraxtal.
- Vana introduced its VANA tokenomics. 25.07% is expected at TGE and 66.9% is allocated to ecosystem and community. The token is used for network security, governance, gas fees, DataDAO participation and Data payment. Vana empowers users to monetise their data to preferred DataDAOs with privacy in place.
- ZKsync introduced Roadmap 2025, aiming to simplify developer experience, enable web2-like experience and interconnect public and private chains in Elastic Network.
- Celestia has completed Ginger upgrade on the mainnet, increasing 2x data throughput by reducing the slot to finality from 12 seconds to 6 seconds.
- Galxe announced a $50 million fund for building a new EVM for its Gravity network.
- Kernel DAO, restaking protocol in BNB Chain, went live on mainnet.

- Balancer launched V3, introducing hooks framework, new AMM designs, custom pools, boosted pools which earn external yield with existing liquidity and more.
- Pendle launched PendleSwap. Users are able to swap up to 3 coins at once with no extra fees embedded.
- Curve passed the proposal to increase scrvUSD fee share to 50%.
- Beam Foundation announced its plan to launch $150 million Beam Ventures to accelerate gaming protocols in Abu Dhabi.
- Kaito AI launched the Yaps points program, enabling content creators to collect points for contributing crypto mindshare.
- Moonwell introduced Moonwell Visa Card, enabling borrowing with users' deposited assets in Moonwell Core Markets for spending.
- Boyaa Interactive, a Hong Kong listed company, has made a strategic investment in BounceBit. Boyaa acquired 4.5 million BB (1.1% of circulating supply) via this investment to develop the CeDeFi ecosystem.

- After announcing PENGU release, Pudgy Penguin also announced Abstract mainnet launch in January 2025.
- EigenLayer proposed slashing upgrade in its ELIP-002, empowering AVSs to penalize Operators for failing to meet commitments.
- Beam introducing Beam Nodes, transforming Beam Network into permissionless PoS Layer 1 with "Horizon" upgrade, after Avalanche9000 upgrade. Horizon upgrade is expected at the end of January 2025, or not later than the end of Q1 2025.

- WELL token unlocked on December 23rd, amount representing 1.21% of the token supply.
- IMX token unlocked on December 27th, amount representing 1.44% of the token supply.
- GRASS token unlocked on December 28th, amount representing 1.52% of the token supply.
- PRIME token unlocked on December 31st, amount representing 1.47% of the token supply.
- OP token unlocked on December 31st, amount representing 2.55% of the token supply.
- SUI token unlocked on January 1st, amount representing 2.8% of the token supply.

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