Web3 Weekly Research | The Market Experienced a Volatile Pullback Trend; The Stablecoin Inflows Slowed Down; 109 Million On-chain Wallets Already Hold USDT

Weekly Trend Overview

The crypto market has experienced a slight correction this week, showing a relatively clear volatile trend overall. Most mainstream cryptocurrencies have experienced significant short-term declines due to external news factors, but the subsequent rebound trend is relatively clear. Due to overall market fluctuations, the performance of various track projects has not maintained the optimistic trend as in the past few weeks, and the mainstream sentiment in the market has also decreased. BTC prices experienced two short-term declines, with the lowest point falling below $95,000 within a week and currently rebounding to around $101,500. Overall, the prices of key mainstream coins have entered a relatively frequent oscillation cycle this week, and the overall market value will likely remain within a relatively stable fluctuation range. The market sentiment is around 80, and there are expected to be new market changes during the weekend closing period. The overall market value growth of the crypto market has slightly decreased, reaching around $3.65 trillion, with a 1.74% increase within 24 hours.

The overall performance of the crypto market has declined this week, driven by the rapid short-term decline of BTC, which has led to an overall decline in the market. BTC’s weekly price hit a recent low, with a short-term shrinkage of about 11%. The price of ETH has changed similarly, and has now fallen below $4000 again, with the price remaining around $3,940.

The overall performance of the crypto market has declined compared to recent times this week, and most mainstream coins have not shown a significant upward trend due to external news.

The probability of the overall crypto market further rising this weekend is relatively small, and there is still room for a slight correction, but it will mainly be characterized by volatile fluctuations.

Crypto Market

🔥According to Cointelegraph, Radiant Capital stated in an updated investigation report on December 6 that cybersecurity firm Mandiant has assessed and is highly convinced that the attack was carried out by North Korea (DPRK) affiliated threat actors.

🔥Ripple CEO Brad Garlinghouse In an interview with CBS News, it was stated that without the action of the U.S. Securities and Exchange Commission Chairman Gensler, the crypto-backed super PAC Fairshake may not have existed.

🔥On December 9, according to The Data Nerd report, Tether Treasury transferred 100 million USDT to Abraxas Capital Management’s wallet on the Kraken exchange within the past hour.

🔥According to Polymarket data, the probability of Microsoft shareholders voting in favor of Bitcoin investment is predicted to be 12%. Currently, $2.99 million has been involved in this forecast.

🔥On December 9, 10x Research published an article on X stating that the current market situation of Bitcoin can be likened to the “dead zone” of climbing Mount Everest, a critical stage of increased risk. Although Bitcoin may not have reached its peak, some indicators indicate that market momentum is weakening and high vigilance is needed.

🔥According to Scam Sniffer’s monitoring, the stolen funds from DEXX are currently being transferred to Tornado Cash, with approximately 1,000 ETH already deposited.

🔥According to CoinPost, Japanese listed company Remixpoint has purchased an additional 13.24 BTC (approximately $1.32 million) worth of Bitcoin. This is part of the 1.5 billion yen additional investment approved by the company since November 28, and will be implemented from December 5th to 6th.

🔥The price of Bitcoin plummeted to nearly $94,000 on Monday, causing the total market value of the cryptocurrency to drop by 11% and clearing volume to reach a record high since 2021.

🔥The crypto-themed film “Crypto Man,” directed by South Korean director Hyon Hae ri, will be released on January 15, 2025. The film is adapted from a real crypto crash that caused over 50 trillion Korean won (approximately $34.9 billion) in losses, starring the late actor Song Jae.

🔥Google CEO Sundar Pichai announced the launch of the new generation quantum computing chip Willow, which has 105 qubits and low error rate characteristics. It is reported that Willow can complete calculations that modern supercomputers require 10 trillion trillion years to complete within 5 minutes.

🔥MicroStrategy stated in its filing on October 31 that the significant decline in Bitcoin’s market value could have a significant adverse impact on its financial condition and could pose liquidity and credit risks to its business operations.

🔥Tether’s second insight report shows that as of early Q4 2024, there are 109 million on-chain wallets holding USDT, more than twice the number of holders of Bitcoin and close to Ethereum‘s 128 million wallets.

🔥On December 11, Greeks.live analyst Adam stated on social media that after several days of adjustment, the market has once again entered a state of strong divergence.

🔥According to Crypto Briefing, MicroStrategy is expected to officially join the Nasdaq 100 Index on December 23, with an official announcement released on December 13.

🔥Cardano founder Charles Hoskinson stated in an article on X that Bitcoin DeFi is a key task roadmap that Input Output Global (IOG) will pursue in 2025. For this, he set a goal for the team to create a meaningful demo before the Bitcoin 2025 conference in May 2025.

🔥On December 11, according to the prediction market Polymarket, the probability of Trump being selected as Time’s 2024 Person of the Year has risen to 81%, with Musk ranking second with a probability of 9%.

🔥According to a report released by Messari, October was the first time that Raydium became the DEX with the highest trading volume of all chains. In November, this trend further accelerated, with Raydium’s monthly DEX trading volume surpassing Uniswap by about 30% ($124.6 billion vs $90.5 billion). The success of this platform is largely attributed to its dominant position in the Solana ecosystem.

🔥Only 0.55% of Microsoft shareholders support the proposal to purchase and hold Bitcoin. According to Microsoft’s annual investor relations report, Microsoft shareholders voted 28.234 million in favor of the proposal, 5.148 billion against it, and 22.6 million abstentions. The Microsoft board of directors has urged shareholders to reject the proposal before voting, citing the volatility of Bitcoin.

🔥According to Coin Metrics and its analyst Victor Ramirez, crypto trading exhibits clear regional and seasonal patterns influenced by regulatory environment, user preferences, and market dynamics.

🔥IntoTheBlock has released data revealing that the top three USDT addresses held on major chains are: The total number of USDT holders on the TRON chain is 49.88 million; There are 5.99 million USDT holders on Ethereum; The total number of USDT holders on the Polygon chain is 4.6 million.

🔥DEXX platform founder Roy stated in a recent interview that the suspect in this case has been locked in China, but the investigation process is very complex and involves a lot of time and resource costs.

🔥DeFiance Capital founder and CIOArthur_0x stated in an article on the X platform that multiple indicators of the Aave protocol have reached new highs, but the coin price is currently only 50% of the ATH period price.

🔥According to community users, recently, some mainland users of Alipay received a promotional advertisement for crypto funds on their homepage, which reads “global investment, crypto soaring, starting at 10 yuan and getting on the bus immediately”. After verification, the fund is Huabao Overseas Technology C (QDII-FOF-LOF), a compliant investment model for overseas assets, indirectly holding Coinbase stocks and ARK Invest Bitcoin spot ETFs. Currently, each person is limited to purchasing 1,000 RMB per day.

🔥The Treasure DAO, a Web3 gaming ecosystem, announced its launch on the mainnet on Wednesday. A statement stated, “This release marks one of the largest ecosystem migrations in the crypto industry. Treasure is transferring over 15 games and important assets (including MAGIC, ERC-20 tokens, and hundreds of thousands of NFTs) from its existing ecosystem on Arbitrarum to ZKsync, coinciding with several upcoming major TGEs and game releases planned for the network.”

Regulatory & Macro Policies

🔥On December 10, the South Korean National Assembly passed an amendment to the income tax law, which includes “abolishing the financial investment income tax (gold investment tax)” and “delaying the taxation of virtual assets for 2 years”. According to the amendment, the virtual asset income tax effective date will be extended from January 1, 2025, to January 1, 2027.

Crypto Market Highlights

⭐️Last week, the crypto market entered a relatively obvious correction phase, and the overall market entered a relatively clear period of oscillation and volatility. This week’s market trend is due to the influence of external news, especially the behavior of traders on a certain exchange. As the weekend closing period approaches, the overall market has entered a relatively stable state, with a further upward trend, but there is a high possibility of a slight correction in the future.

⭐️Due to fluctuations in the crypto market this week, the rise of top-growing coins is relatively limited and cannot be compared to the past few weeks.

BTC & ETH Weekly Performance

Bitcoin (BTC)

(Data Courtesy Of TradingView)

The price of BTC reached a one-week low during the mid week period this week, showing an overall volatile downward trend. After falling below the one-week low of $95,000, the price began to fluctuate upward and rose above $100,000. The high point of the one-week price was around $102,500, and the low point was around $94,500. The market changes of BTC this week were mainly influenced by external news factors, which led to further correction of long positions due to liquidation.

Analysis suggests that the price fluctuations of BTC this week are mainly due to the overall changes in the market, coupled with external news factors. Although BTC has experienced its largest recent decline, the subsequent rebound is relatively rapid and clear. In the long run, the BTC price trend is likely to be relatively firm.

Ethereum (ETH)

(Data Courtesy Of TradingView)

The price trend of ETH this week is similar to BTC, but the price correction is more severe. Compared to the prices of the past two weeks, ETH has broken through the $4,000 mark, but after falling below $4,000 in the short term, it immediately fluctuated and fell to around $3,520. Subsequently, there was a volatile upward trend, reaching above $3,900. ETH has adjusted with the market trend, and the current price remains around $3,930. ETH’s weekly increase is around 0.95%. The coin is in a phase of sustained small fluctuations, and it is expected that there will be a new round of price changes over the weekend, but the magnitude should remain within a small range.

Web3 Project Trend

The total market value of seven categories of projects this week has fluctuated due to changes in the overall market, and the overall market performance is in line with the expected market adjustment. The market is expected to have a certain probability of recovering near the weekend closing period, and a new round of price rebound is expected.