Foresight Ventures: Market sees brief pullback as inscriptions flourish
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Foresight Ventures: Market sees brief pullback as inscriptions flourish
This week, market attention centers on the BTC ecosystem, Solana ecosystem, Cosmos ecosystem, and gaming.
Navigating Web3 tides with focused insightsWritten by: Mike, Foresight Ventures
Market Outlook
Macro Liquidity
Monetary liquidity has improved. The Fed delivered dovish signals, as expected, holding rates steady for the third consecutive meeting. The dot plot indicates at least three rate cuts next year, totaling approximately 75 basis points. U.S. Treasury yields plunged to a six-month low, gold surged, and U.S. equities reached a two-year high. The crypto market followed equities, correcting before posting a modest rebound.
Overall Market Performance
Top 100 gainers by market cap:
BTC traded with volatility this week amid sector rotation. Market interest focused on BTC ecosystem, Solana ecosystem, Cosmos ecosystem, and gaming. The wealth-generation effect from Bitcoin inscriptions resembles DeFi Summer during the last bull run.
1. SATS: A BRC20 inscription and the platform token of Unisat wallet, potentially adopting an economic model similar to Blast. Recently listed on BN exchange, reigniting enthusiasm for inscriptions.
2. MOBILE: A DePIN project in the Solana ecosystem, a sub-token launched by Helium, primarily offering decentralized telecom services. Backed by Multicoin Capital, it surged tenfold this month.
3. INJ: A DeFi-focused blockchain within the Cosmos ecosystem, reaching a new all-time high since the previous bull market, backed by Jump Trading.
BTC Market Analysis
On-Chain Data
BTC’s current price action bears striking resemblance to patterns observed during 2013–2017 and 2017–2021 periods. The current trading price is clearly above the true market average of $31,000, meaning most BTC holders are now in profit.
Stablecoin market cap remained flat. This week's market pullback somewhat dampened investor sentiment.
The long-term MVRV-ZScore indicator, based on total market cost, reflects overall profitability. A reading above 6 suggests a top zone; below 2 indicates a bottom zone. When MVRV falls below 1, holders are generally underwater. The current value is 1.54, signaling entry into a recovery phase.
Institutional crypto investment products saw continued net inflows, though the pace slowed significantly.
Futures Market
Funding rates: Rates were positive this week, indicating normal market sentiment. The market began adjusting after BTC funding fees hit their highest level this year on November 12. Funding rates between 0.05% and 0.1% suggest excessive long leverage and a potential short-term top; rates between -0.1% and 0% indicate dominant short leverage and a possible short-term bottom.
Open Interest: Total BTC futures open interest declined sharply this week, closely tracking price movements.
Long/Short Ratio: 0.9. Retail sentiment remains bearish. Retail sentiment often acts as a contrarian indicator—below 0.7 indicates fear, above 2.0 indicates greed. However, due to high volatility, the reliability of this metric is limited.
Spot Market
BTC’s rally appears to be encountering resistance, but the overall trend remains healthy. Around January 10—the period surrounding the spot ETF news—is likely to mark a near-term peak in market sentiment. Recently, innovation in the inscription space has shown significant vitality, driving gas fees higher, peaking at the highest level in three years.
Market Data
Total Value Locked (TVL) Across Blockchains
TVL Distribution by Chain
This week, total TVL increased by approximately $150 million, or about 3%. After a broad market correction, the rebound was strong. Nearly all chains posted gains, with the top 10 blockchains seeing notable increases. ETH rose 4%, BSC up 2%, ARB up 3%, OP up 5%, while Cardano and Solana surged around 45%. BASE chain continued its explosive growth, up 23%, with protocol count nearing 200. Notably, the top 20 blockchains all recorded TVL gains over the past month, clearly indicating that the market has recovered from over a year of prolonged lows.
Protocol-Level TVL by Chain
Ethereum TVL Overview
BSC TVL Overview
Polygon TVL Overview
Arbitrum TVL Overview
Optimism TVL Overview
Base TVL Overview
Solana TVL Overview
NFT Market Data Trends
NFT-500 Index
NFT Market Overview
NFT Marketplace Share
NFT Buyer Analysis
This week, floor prices of top-tier blue-chip NFT projects saw minor corrections: MAYC and BAYC both dropped ~7%, Pudgy Penguins rose 2%, DeGods fell 9%, CloneX down 7%, while Azuki and Milady gained ~1%. NFT trading volume declined slightly over the past week. As the broader market corrected healthily, the NFT market moved in tandem. Recently, early-stage NFT startups have gradually become more active, focusing on building on-chain identities. There is growing anticipation that the NFT market may experience a breakout as the bull market progresses.
Latest Project Fundraising Updates
Portfolio Updates
Space and Time – Decentralized Data Platform
Space and Time released version 0.22 of the SxT testnet:
Key upgrades include:
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Enhanced table partitioning
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Improved query performance
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Bug fixes
Join the SxT community for updates: discord.gg/spaceandtimemedb
Space Nation – GameFi
Space Nation Alpha 3.0 is now available for download!
Time: December 13–20, 00:00–02:00 UTC and 11:00–13:00 UTC
Exciting gameplay, new spaceships, novel mining mechanics, and enhanced PVP combat.
More rewards await unlocking:
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OIK
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WLs for the Enforcer NFTs
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ORBs
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Points
MYX.Finance – Perpetual DEX
MYX announced the deployment of narrative-based BRC20 inscriptions, which will play a key role in future Treasure Hunting Events and be linked to platform revenue sharing, airdrops, and other community initiatives.
Polyhedra Network – ZK Cross-Chain Communication Protocol
Polyhedra Network launched a Bitcoin cross-chain messaging protocol powered by zkBridge, enhancing interoperability with the Bitcoin network. zkBridge enables lightweight client smart contracts on any blockchain to directly verify Bitcoin’s PoW consensus and Merkle proofs for each transaction. It allows all current and historical data from Bitcoin to be transferred securely to any Layer 1 or Layer 2 blockchain (e.g., Ethereum, BNB Chain, Arbitrum) and integrated with on-chain applications. The system is compatible with emerging Bitcoin protocols such as Ordinals, BRC-20, and Atomicals.
Additionally, by introducing a decentralized cryptoeconomic model based on staking/re-staking and leveraging Multi-Party Computation (MPC), zkBridge enables other blockchains to securely verify and write data back to the Bitcoin network. Security is ensured through staking and slashing mechanisms, addressing the challenge of cross-chain message verification in the absence of native smart contract support on Bitcoin.
DappOS – Web3 Operating System
As of December 12, BENQI, a lending protocol in the Avalanche ecosystem, reported significant growth two months after integrating DappOS: 4,848 new users, 28,571 transactions. New deposits via DappOS totaled $12,877,782, accounting for 18.17% and 16.62% of total USDT and USDC deposits on BENQI, respectively. Loan volume from new DappOS users reached $7,199,765, with WBTC and WETH borrowings representing 80.57% and 45.75% of BENQI’s total, respectively.
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