gate Research Institute: BTC illiquidity supply hits all-time high, WisdomTree submits XRP ETF application to SEC

Summary

• BTC price fell by 1.75% within 24 hours, oscillating narrowly in the price range of 95,200 to 96,200.
• XYO daily gain exceeds 121%, leading the zone cryptocurrency.
• Yesterday, the amount of XRP that got liquidated reached $85.69 million, making it the cryptocurrency with the highest liquidation amount yesterday.
• BTC non-liquid supply hits a record high, accounting for nearly 75%
• DeBox operation account Private Key leakage, loss exceeded 487 million BOX and 31 ETH.
• WisdomTree submitted XRP ETF application to US SEC.

Market Review

According to gate market data, as of 4:00 on December 3 (UTC+0) [1]:

• BTC - The BTC price has fallen by 1.75% in the past 24 hours, with a high of $98,120.0 and a low of $94,404.8. Today, the BTC price continues to decline, with significant selling pressure in the market. At 12:00 on December 3, there was a brief rebound, showing a small peak, but it failed to sustain the pump momentum, quickly falling back and oscillating narrowly in the price range of 95,200 to 96,200. Currently, the market is in a short-term consolidation phase, as of 9:00 on December 3 (UTC+8), the BTC price is $95,816.8.

• ETH - In the past 24 hours, Ethereum has shown a fluctuation trend synchronized with Bitcoin. The highest price in the past 24 hours was $3,760.30, and the lowest price was $3,557.22. Currently, ETH is oscillating upward but has not been able to break through the short-term resistance level of 3681. As of 10:00 on November 5th, the price of Ethereum was $3,634.06, a decrease of 2.83% in the past 24 hours.

• ETF - According to SoSoValue data, the total net inflow of US BTCSpot ETF on December 1st exceeded USD 353 million [4], and the total net inflow of US ETHSpot ETF was USD 24.23 million [5].
• AltCoin —— Zoo-Themed alts 21.9%, showing strong performance, demonstrating the appeal of animal-themed in the meme market; RWA Protocol zonepump 13.6%, reflecting the sustained demand for real-world assets protocol in the market.【6】
• Three major US stock indexes – S&P 500 index pump 0.24%, Nasdaq index pump 1.12%, Dow Jones index fell 0.29%【7】
• Spot Gold - The spot gold price fell to $2638.58 per ounce, with no significant fall during the day, and the current market has strong support for the gold price, with no significant fluctuation in the short term.【8】
• Fear and Greed Index - The Fear and Greed Index is 76, indicating that the market is in a greedy state.【9】

Popular Token

According to the gate market data【10】, combined with the volume and price performance in the past 24 hours, as of 4:00 on December 3rd (UTC+0), the following popular altcoins (with a significant increase and a market cap greater than 50 million US dollars) are:

HBAR (Hedera) - The single-day increase is about 51.28%, with a fully circulating market capitalization of $11.19 billion. Hedera is a public ledger network that adopts the hashgraph Consensus Mechanism, which has aBFT-level security performance and ensures data integrity by publicly transparent and non-hideable transaction records. Its native cryptocurrency $HBAR not only supports the construction of a peer-to-peer micro-payment business model but also effectively defends against malicious attackers at the network level, demonstrating unique performance advantages in public ledger networks.

HBAR’s rise may be fueled by Hedera’s collaboration with the FedNow Payment Network of the Federal Reserve Bank of the United States, with technical support provided by Dropp, making it a key participant in real-time transactions.

XYO (XYO Network) - the daily increase is about 121.94%, with a fully circulated market capitalization of $245.84 million. XYO is an ecosystem of consumer software, developer tools, Decentralization networks, and digital assets in one DePIN (Decentralization Physical Infrastructure Network). It aims to promote and incentivize the aggregation, validation, and utilization of Decentralization data, involving multiple fields such as artificial intelligence modeling, metaverse scenarios, and data analysis, demonstrating vast technological potential and application prospects.

Yesterday, XYO price saw a significant pump, mainly due to an important news release: XYO’s Chief Operating Officer, Scott.P Scheper, unveiled the first view of a new application designed specifically for TSL car owners. The application was approved for release just two days after meeting with SpaceX and TSL, and its geospatial technology is expected to incorporate TSL and SpaceX into its Decentralization network, enhancing market confidence in the practical application and ecological value of XYO technology.

MOODENG （Moo Deng） - The single-day increase is about 54.73%, with a fully circulating Market Cap of 543.91 million US dollars. Moo Deng is a community-driven Meme coin based on the Solana blockchain, inspired by a famous baby hippo born in Thailand, which has quickly gained popularity on the internet since September due to its cute and relaxed image. The project emphasizes inclusivity and community spirit, encouraging users to adopt its unique culture, further fueling the popularity of related Meme coins.

The main driving force of this market is MOODENG coin’s listing on a large Centralized Exchange, which has led to a follow and influx of funds in the spot trading market, providing momentum for the price pump.

Highlights Data

BTC illiquidity supply hits a record high, accounting for nearly 75% The non-Liquidity supply of BTC refers to the amount of BTC held for a long time and rarely transferred or traded. This type of supply is usually stored in cold wallets or held by long-term investors, and is considered as ‘non-Liquidity’ due to its low Liquidity. This rise in supply is usually interpreted as an enhancement of long-term bullish sentiment towards BTC in the market, while also exacerbating the scarcity of BTC, potentially generating support for prices.

As of early December, the illiquid supply of BTC hit a record high, while the exchange balance hit a multi-year low. The new high in the illiquid supply of BTC indicates that more BTC is being locked up by long-term holders, exiting the market circulation. This portion of the supply has approached 75% of the total, reflecting the continued strengthening of market confidence in BTC as a long-term store of value tool. At the same time, exchange balances have dropped to historic lows, accounting for less than 14%. This trend shows that the available circulating supply of BTC on exchanges continues to decline, further tightening the market supply circulation.

This supply pattern has a profound impact on market dynamics. The rise of illiquidity supply may amplify price volatility, especially when demand surges, bringing more risks to traders. However, for long-term investors, the scarcity of supply often reinforces its store of value function and investment attractiveness. The future performance of the market will still be constrained by macroeconomic trends and changes in investor sentiment, and the deepening scarcity of supply may gradually enhance the position of BTC in asset allocation.

BTC Mining Difficulty Increased by 1.59%, Reaching Another All-Time High According to Cloverpool data, the mining difficulty of BTC reached a historical high of 103.92 T, an increase of 1.59%, at Block Height 872,928 (December 2, 2024, 23:34, UTC+8). The average computing power of the entire network is currently 726.57 EH/s. Generally speaking, the upgrade of mining difficulty is closely related to the increase of network computing power. It is speculated that a large number of miners have entered the BTC mining activity recently, and this change also helps to maintain the stability of block time. However, when the mining difficulty increases, the computational load faced by the machines also increases, limiting the profitability of some marginal miners, especially in areas with high electricity costs. Miners will face challenges of longer investment return periods.

For investors, the current round of difficulty adjustment may affect the overall profitability of the industry, while balancing the Mining efficiency and energy cost management has always been the focus of market competition. In the future, in the foreseeable background of continuous rise in difficulty, Mining companies will continue to innovate and adapt to this trend, while investors should prioritize choosing partners with efficient equipment and cost control capabilities in order to achieve more stable returns. [12]

XRP Get Liquidated amount reached $9,584,000 yesterday According to the latest data from Coinglass, as of December 2nd, 18:00 (UTC+8), the total Get Liquidated amount in the past 24 hours across the entire network was $623 million, with $404 million from long orders and $220 million from short orders. Among them, the Get Liquidated amount of BTC was $75.9695 million, the Get Liquidated amount of ETH was $62.0888 million, and the most notable was the Get Liquidated amount of XRP, which reached $95.8462 million. [13]

The current XRP Market Cap is approximately $154.22 billion, surpassing USDT and Solana, ranking third on the Cryptocurrency Market Cap list, and rising to 117th among global mainstream assets, surpassing Uber and Siemens Market Cap at one point. As an established project in the cryptocurrency field, the recent performance of XRP has been driven by longerFavourable Information such as policies, sparking market expectations for its future performance. However, it should be noted that since November 16th, there has been an inverse correlation between XRP price and volume, indicating that XRP may be entering a distribution phase, and speculative traders may start seeking dumping.

Ether ETF sees net outflows for the first time in seven days According to Coinglass data, the US BTCSpot ETF had a net inflow of USD 408 million and a total transaction volume of USD 4.238 billion on December 2. The total value of BTC managed by the ETF is USD 10.607 billion, accounting for 5.47% of the total market capitalization of BTC. [15]

On December 2, the net outflow of ETH Spot ETF was $44.4 million, with a total daily turnover of $645 million. The total value of ETH managed by ETF is $11.04 billion, accounting for 2.54% of the total market capitalization of ETH. After a week of continuous net inflows, ETH ETF saw net outflows for the first time, possibly due to investors taking profits from short-term consolidation, which may indicate a turning point in market sentiment.

Hot Comment

Fed’s Williams: Expects Fed to Further Cut Interest Rates New York Fed President Williams said on Monday that as inflation pressures continue to ease, the Fed may further lower the Intrerest Rate target. Williams said in a speech at a meeting of the Queens Chamber of Commerce in New York, “monetary policy remains in a restrictive range to support sustainable return to the 2% inflation target.” Looking ahead, “I expect that over time, continuing to move to a more neutral policy setting will be appropriate,” Williams said, adding that the policy path will depend on the data.

Williams did not give a clear guidance on the timing of interest rate cuts or whether he thinks the Fed will drop the Interest Rate target at this month’s FOMC meeting. If the Fed decides to further reduce interest rates, it will boost market sentiment in the short term or drive up global asset prices.

DeBox operation account Private Key leaked, loss exceeded 487 million BOX and 31 ETH On December 2, 2024, DeBox officially announced that the EOA Wallet Private Key of its operating account was leaked, resulting in the theft of 4.879 million BOX and 31.03 ETH. The official stated that this incident will not affect the asset security of platform users, and the community can rest assured. In response to this theft, DeBox has formulated a series of response plans, including repurchasing the stolen tokens through a stable fund and injecting the repurchased tokens into the DAO asset pool for the community to decide on specific use. In addition, the operating account will be migrated to a multi-signature wallet in the future to enhance account security. At the same time, the team has also entrusted a security company to investigate, and the recovered assets will be decided on the handling method through community voting.

The direct impact of this incident is a blow to the market trust of the DeBox project, with the Token price experiencing a big dump of over 30% in a short period of time. Liquidity on Uniswap V2 has plummeted to only $2,900, with the total on-chain Liquidity being around $10,000. The significant loss of funds not only weakens the market support for the Token but also challenges the confidence of the community. The platform needs to face the market’s questioning of its security management capabilities, especially the fundamental issue of Private Key leakage, which has made users adopt a wait-and-see attitude towards future security upgrades.

From the measures taken by DeBox, the team is attempting to recover some of the losses by utilizing the stability fund and advancing the multi-signature mechanism. This approach demonstrates the team’s attention to the current situation, but it may not fully restore market confidence in the short term. Furthermore, despite the efforts to stabilize the market through repurchases and injections, the long-term impact on platform ecosystem construction remains to be observed. DeBox needs to invest more proof of time in the stability of its platform to ensure that similar incidents do not occur again.

WisdomTree files XRP ETF application with the US SEC According to the S-1 document disclosed by the US Securities and Exchange Commission (SEC), WisdomTree has submitted an application for the WisdomTree XRP Fund to the SEC. This is an exchange-traded fund (ETF) that provides investors with exposure to XRP prices and plans to be listed on Cboe BZX Exchange, Inc. with the ticker symbol ‘TICKER’. The Bank of New York Mellon will serve as the fund’s manager, fund accountant, and transfer agent for the trust, ensuring the trust’s daily operations. This move represents further advancement in the financial productization and institutional penetration of XRP.

This document submission coincides with a significant pump in XRP prices and the general expectation that the leadership of the SEC will change after January 20, 2025. Unlike many investors who believe that current Chairman Gary Gensler is anti-encryption regulation, the market believes that the new leadership may take a more lenient regulatory stance, such as promoting the introduction of institutional-level ETFs for more altcoins in the United States, thereby promoting the thriving development of the crypto market. However, this trend does not rule out speculative dumping, especially for assets like altcoins that lack stability. In addition, the gradual acceptance of encryption assets by institutions does not mean comprehensive market maturity; risk control and regulation are still potential hidden dangers that need to be vigilant. [18]

Financing Information

According to the statistics of RootData on December 3, three public financing transactions occurred in the blockchain and Web3 fields in the past 24 hours, totaling over $18 million. The layout areas include Decentralized Finance and CeFi zone. The specific financing situations are as follows: [19]

LSP Finance - announced the completion of a $1 million Pre-Seed financing round, with a valuation of $33 million. The participating institutions in this round of financing include well-known investment firms such as Cryptogram Venture, CatcherVC, WAGMi Ventures, and K24 Ventures.

As a user-centric digital asset management platform, LSP aims to reshape the landscape of Decentralized Finance by unleashing liquidity and focusing on PoS network yields, early alpha opportunities, and high-return projects. The platform’s multi-chain architecture supports seamless integration with ecosystems such as Aleo, Arbitrum, and MANTA, providing cross-chain interaction users with more opportunities and greater flexibility.

BLIFE Protocol - Announced the completion of $7 million financing led by UTXO Management, with participation from companies such as Animoca Brands. BLIFE’s vision is to lead the adoption and development of Web3 on Bitcoin, using $BLIFE to completely change the ordinals and BTC fungible token ecosystem from niche and complex to valuable and accessible. This vision covers DEFI, gaming, entertainment, and education, with $BLIFE as a key governance token.

**Brighty **—— Announced the completion of a $10 million financing, with Futurecraft Ventures as the investor. Brighty is an integrated application that combines Digital Bank and encryption banking. Users can use stable coins for savings, sending, consumption, and earn annual returns of up to 10% with daily payments. Brighty is committed to enabling individuals to purchase Crypto Assets and enter the encryption economy more securely.

Airdrop Opportunity

Magic Eden

Magic Eden is a leading multi-chain Non-fungible Token and BTC trading platform, dedicated to building a Cross-Chain Interaction ecosystem super DApp, providing users with a seamless trading experience for multi-chain assets in their mobile Wallet. On December 2nd, Magic Eden co-founder and CEO Jack Lu announced on social media that the ME Token Airdrop eligibility check will be open on December 4th, aiming to reward loyal users and accelerate the realization of Magic Eden’s vision of universal digital ownership.【20】

Participation Method: (1) Opening time: December 10, 2024 (UTC+0) (2) Airdrop total supply: 125,000,000 ME (unlocking ratio 12.5%) (3) Distribution method: based on trading activity, Cross-Chain Interaction participation and user loyalty (4) Participation Requirements: Users need to use the Magic Eden Wallet to claim and stake $ME Token (5) How to operate: Use the eligibility verification tool before TGE to verify Wallet status→ Connect Wallet to the Magic Eden platform→ Log in to the Magic Eden application on the TGE day, and claim AirdropToken→ Stake $ME Token to receive additional rewards

Reminder: Airdrop plans and participation methods may be updated at any time. It is recommended that users follow the official channels of Magic Eden to get the latest information. At the same time, users should participate cautiously, pay attention to risks, and conduct sufficient research before participating. gate does not guarantee the subsequent Airdrop rewards.
Reference:

1. Gate.io,
2. Gate.io,
3. Gate.io,
4. SoSoValue,
5. SoSoValue,
6. CoinGecko,
7. Investing,
8. Investing,
9. Gate.io,
10. Gate.io,
11. Glassnode,
12. Explorer,
13. Coinglass,
14. Coingecko,
15. Coinglass, zh/eth-ETF
16. Yahoo Finance,
17. DeBox,
18. SEC,
19. Rootdata，
20. X,

**gate Research Institute** Gate Research Institute is a comprehensive blockchain and cryptocurrency research platform that provides readers with Depth content, including Technical Analysis, Hotspot Insights, Market Reviews, Industry Research, Trend Forecasting, and Macro Economic Policy Analysis.

Click link to go now

Disclaimer Investing in the cryptocurrency market involves high risks. Users are advised to conduct independent research and fully understand the nature of the assets and products they purchase before making any investment decisions. Gate.io is not responsible for any losses or damages caused by such investment decisions.