Weekly Market Insight: December week 2

English

Market Updates

11 Dec 2023

Headline News

Ordinal inscription has gained massive attraction over the week, multiple BRC20 tokens were performed handsomely and increasing protocols to announce service support for Bitcoin Inscription. The activities cause severe congested Bitcoin network, unconfirmed transactions in mempool hit record level high since 2017. Anti-ordinal Bitcoin Core developer, Luke Dashjr described Ordinal as an attack to Bitcoin network and it has been assigned an identifier CVE-2023-50428 to potentially be fixed in the v27 upgrade. The community has expressed different views regarding Ordinal protocol. Meanwhile, transactions filtered by one miner will be picked up by another.

Macro-Outlook

The US Treasury experienced small increase in yield as the result of job report on last Friday. Unemployment rate is lower than expected, but Non Farm Payrolls was higher than expected in November, reviving inflationary concern from high wages. However, unit labour cost in Q3 decreased 1.2%, even lower than expectation of a 0.9% drop. CPI and PPI data will be released before the FOMC interest rate decision on Thursday.The market expects 98% interest rate to remain unchanged.

Upcoming Economic Calendar including,

- Tuesday, 12th December 9:30pm: US Inflation Rate in November

- Wednesday, 13th December 9:30pm: US PPI in November

- Thursday, 14th December 3:00am: FOMC meeting

Cryptos-Outlook

- Fidelity’s spot Bitcoin ETF is now listed on the Depository Trust and Clearing Corporation (DTCC) website under the ticker FBTC.

- SEC postponed Grayscale Ethereum spot ETF application, extending the deadline to 25th January 2024.

- BlackRock submitted a second revised Bitcoin spot ETF S-1 document to the US SEC.

- The Swiss city Lugano announced acceptance of BTC and USDT for tax payment and other fees.

- Société Générale, France’s third-largest bank, launched its EUR stablecoin on Bitstamp.

- Brazil’s largest bank Itau Unibanco announced the launch of BTC and ETH trading service.

- Ethereum developers set the Goerli fork date at the start of 2024 and aim to activate Dencun on Goerli in January in the latest ACDE meeting.

- Deloitte announced the integration of KILT Protocol for creating new markets with reusable KYC and KYB digital credentials.

Trending Protocols

Layer 1 and Layer 2

- Celestia introduced Ethereum Fallback, allowing rollups to fall back to Ethereum calldata for data availability when Celestia is unavailable.

- Mantle announced Mantle LSP, its ETH liquid staking protocol.

- Starknet released more information about token distribution. 1.8 billion STRK to be distributed among users and 50 million STRK for DeFi incentive.

- Polygon announced a partnership with Flipkart, the largest e-commerce in India, to scale its web3 loyalty program.

- Polygon, Immutable X and Beam join forces to extend Immutable zkEVM Orderbook support on Sphere and Immutable Passport with Beam SDK and all companion apps.

Dapps

- Synthetix has ended its inflation. Buyback and burn SNX will be introduced in the upcoming Andromeda upgrade.

- Helium launched Helium Mobile with unlimited data in the US for $20 per month.

- Goldfinch announced it will launch on Base.

- Aevo introduced aeUSD with 4.75% yield generated from Dai Saving Rate on users trading margin.

- Hashflow announced Hashflow 2.0, featuring smart order routing, better UI design and deployment on Solana.

- Pudgy Penguin announced to launch Pudgy World, an open-world game on zkSync in Q1 2024.

- BadgerDAO introduced eBTC, a zero fee synthetic BTC backed by overcollateralised ETH.

- Jito token has officially launched in multiple exchanges, its peak fully diluted valuation surged over $4 billion.

- Liquity introduced IApps to their v2, allowing users to easily run their own private frontend locally.

- Inspect Protocol, a web3 functionality platform for X’s users, has launched its governance token.

Upcoming Alpha: Token Unlock, Governance

- EigenLayer will add 6 new LSTs (osETH, swETH, oETH, EthX, wBETH, ankrETH) and increase restaking cap on 18th December.

- Arbitrum proposed to the Apecoin community to build ApeChain with Arbitrum Orbit.

- OP voted to launch Canyon to mainnet on 11th January 2024.

- Stacks updated Nakamoto upgrade and sBTC release plan. The team is confident Nakamoto upgrade will be released before Bitcoin halving, and sBTC will be released approximately 2 months after Nakamoto.

- APT Token Unlocked on 12th December, amount representing 8.9% of the token supply.

- CYBER Token Unlocked on 15th December, amount representing 8.51% of the token supply.

- APE Token Unlocked on 17th December, amount representing 4.23% of the token supply.

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