Christmas Week Crypto Market Highlights: Stablecoin Market Surges by $30 Billion, Institutions Continue Buying Bitcoin
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Christmas Week Crypto Market Highlights: Stablecoin Market Surges by $30 Billion, Institutions Continue Buying Bitcoin
The持续 increase in institutional investment demand has further intensified the tight supply situation of Bitcoin.
Navigating Web3 tides with focused insightsAuthor: SergeKazachiy
Translation: TechFlow
Key Takeaways:
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Market Sentiment: The stablecoin market has grown by $30 billion since the election, averaging $750 million daily inflows, injecting significant liquidity into markets. Last week, Bitcoin briefly dropped to $92,500, triggering panic selling—a phenomenon often seen as a bullish signal for market rebounds. Meanwhile, sustained institutional demand is tightening Bitcoin supply. Additionally, Pudgy Penguins NFT prices surged 240%, and Ethereum NFT sales hit $304 million, signaling strong momentum in the NFT sector.
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Earning Opportunities: Bitwise launched a Solana-based staking ETP in Europe, while sBTC went live on the Stacks mainnet, offering up to 5% APY on Bitcoin assets.
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New Airdrops: Binance added CAT and PENGU tokens to its HODLer airdrop program, and Fuel Network began distributing 1 billion FUEL tokens to 200,000 users.
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Upcoming Token Generation Events (TGEs) and Token Sales:
- Sony’s Soneium (Ethereum L2, airdrop on Dec 26);
- Azuki’s Animecoin;
- Kraken’s Inkonchain (mainnet launch);
- Uniswap’s Unichain (upcoming);
- ConsenSys’ Linea (active post-mainnet).
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Key Developments:
- Ethena launched a stablecoin backed by BlackRock’s BUIDL token;
- Kraken announced the mainnet launch of its Ink blockchain.
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Special Focus: Recent funding rounds received strong backing from top angel investors.
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This Week’s Research: Exploring the cyclical effect of the “hype machine.”
In-Depth Analysis: Panic or Party?
Two weeks ago, Bitcoin broke its all-time high, reaching $107,000, driven by surging institutional demand and expectations of monetary easing. Stablecoin liquidity played a crucial role in this rally. At the same time, AI agents and meme trends became dominant market narratives.
Last week, stablecoin-fueled liquidity and institutional demand continued to support Bitcoin prices, while the NFT market—especially Pudgy Penguins—showed robust growth.
Stablecoins Driving Market Liquidity
The stablecoin market is experiencing steady expansion, with total supply consistently rising. Since the election, stablecoin market cap has surged by $30 billion, averaging $750 million in daily growth.
This growth is also reflected in exchange activity, where an average of $40 million in USDT has been deposited daily into exchanges over the past eight weeks. These inflows provide critical liquidity, stabilizing prices and boosting market confidence. We discussed this in detail in our latest Substack analysis.
Market Volatility
Last week, Bitcoin briefly plunged to $92,500, sparking panic selling among short-term traders. However, such events are often viewed as positive precursors to market recovery. At the same time, community sentiment around “buying the dip” reached its highest level in nearly eight months—a sign that often correlates with short-term bearishness.
Key metrics reveal nuanced market sentiment: the current realized profit ratio remains below previous cycles, indicating large holders have not begun mass profit-taking. Additionally, 30-day exponential moving average (EMA) analysis shows Bitcoin’s funding rates lack signs of overheating typically seen at cycle peaks.
The market is also witnessing what analysts call the “third Bitcoin supply shock.” Bitcoin balances on exchanges continue to decline sharply, while demand from institutional giants like BlackRock and MicroStrategy soars. This supply-demand dynamic could significantly impact Bitcoin’s price trajectory in the coming months.
NFT Revival: Hype or Signal?
This month, both Bitcoin and Pudgy Penguins NFTs surpassed the $100,000 mark, signaling strong momentum across crypto and NFT markets.
Source: Pudgy Penguins NFT floor price exceeds Bitcoin price
Bitcoin rose from approximately $88,000 to over $100,000 in the past 30 days—an increase of about 14%.
Pudgy Penguins surged from 9.45 ETH (~$30,000) to 26.15 ETH (~$103,000), a staggering 240% gain.
The surge in Pudgy Penguins is fueled by anticipation around the upcoming $PENGU token launch, which will expand the ecosystem onto Solana. Additionally, rising Ethereum prices and strong community support have contributed to this momentum.
NFT activity on Ethereum has significantly increased over the past seven days.
While it's still unclear whether this uptick signals a broader market recovery, one thing is certain: NFTs are capturing growing attention.
According to Galaxy Research, the NFT market is gradually recovering, with transaction volumes showing rapid growth. Data from DefiLlama indicates that Ethereum NFT sales reached $304 million in just one week, highlighting explosive momentum in the space.
Passive Income Opportunities: This Week’s Highlights
This week, DeFi and related sectors offer several attractive passive income opportunities. Here are some key highlights:
Restaking Trends in 2024
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Rise of EigenLayer: As the leader in restaking, EigenLayer started the year with $1.3 billion in TVL, peaking at $20 billion in June. Despite a Q3 pullback, it now holds steady at $16 billion.
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Emergence of New Protocols: Projects like Babylon (focused on Bitcoin, $2.3B TVL) and Symbiotic (focused on Ethereum, $2.4B TVL) are gaining increasing traction.
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Dominance of Ether.fi: As the top liquid restaking protocol in 2024, Ether.fi has accumulated $7.3 billion in TVL, making it the fourth-largest DeFi application globally.
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Deep Dive: For more details, see “Restaking Trends in 2024”.
Latest on Crypto Staking ETPs
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Bitwise Expands into Europe: Bitwise launched a Solana staking ETP in Europe, giving European investors exposure to Solana with staking rewards.
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Hedera HBAR Joins Euronext: A new ETP for Hedera HBAR has listed on Euronext, expanding staking options for institutional and retail investors.
sBTC Launches on Stacks Mainnet
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sBTC Goes Live: The highly anticipated sBTC has launched on the Stacks mainnet, becoming one of the most decentralized Bitcoin derivatives on Layer 2.
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Decentralized Governance: Secured by a network of signers including major institutions, ensuring transparency and security in operations.
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Attractive Yields: Holders can earn up to 5% APY by staking sBTC. This launch marks a major step forward in Bitcoin cross-chain interoperability and the Stacks ecosystem’s role in decentralized finance (DeFi).
Latest Airdrop Updates
If you’re hunting for airdrops, this week brought exciting developments:
Pudgy Penguins Launches PENGU Token on Solana
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PENGU Token Live: Pudgy Penguins officially launched the PENGU token on the Solana blockchain, enabling new forms of community engagement.
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Claim Deadline: Token holders must claim their PENGU within 88 days; unclaimed tokens will be permanently burned. This move expands the Pudgy Penguins ecosystem and strengthens its presence on Solana, rewarding loyal supporters.
Binance Adds CAT and PENGU to HODLer Airdrop Program
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New Airdrop Listings: Binance has added Simon's Cat (CAT) and Pudgy Penguins (PENGU) to its HODLer airdrop program, offering additional incentives to token holders.
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Reward Mechanism: Eligible users holding CAT or PENGU can participate in airdrops, further boosting these tokens’ market appeal.
Fuel Network Announces 1 Billion FUEL Genesis Airdrop
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Massive Distribution: Fuel Network will distribute 1 billion FUEL tokens to 200,000 users, rewarding early adopters and driving adoption of its modular blockchain.
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Timeline: The airdrop began on December 19, offering users a chance to engage with the Fuel Network ecosystem.
Interested in Sui airdrops? If you have time this weekend, explore these six promising projects:
Stay tuned for more airdrop opportunities and updates in our weekly series!
Upcoming Token Generation Events (TGEs), Listings, and Product Launches
Major Crypto Events: Dec 23–29
This Week in Crypto: Key Highlights
Here are the major events in crypto this week:
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December 23:
- Migrate and stake Lisk to claim up to 25,000 $LSK
- GIP-119 Proposal: Should Gnosis Chain fund DeSciWorld?
- AITECH DAO voting opens
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December 24:
- $2.33M WELL token unlock
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December 25:
- aelf blockchain to undergo V1.12.0 upgrade
- Spherex Tech Token listing on BitMart and MEXC
- Abstract’s Galxe quest ends
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December 26:
- AlchemyPay community AMA at 9 AM UTC
- Hacken token listing on WhiteBIT
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December 27:
- SunDog to distribute tokens to Trust Wallet-connected users
- Sophon to conduct mainnet liquidity migration
- LayerZero proposal voting deadline
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December 28:
- $4.24M $FET token unlock
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December 29:
- JustLendDAO to launch Phase 3 of $USDD supply mining
Top Blockchains Hosting Upcoming TGEs
Top Blockchains to Host Major TGEs Backed by Big Names
Here are notable blockchain projects with upcoming token generation events, backed by well-known companies:
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Soneium by Sony Group: Sony Group announced Soneium, an Ethereum Layer-2 blockchain. While the mainnet launch date is unconfirmed, an airdrop is confirmed for December 26, 2024.
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Animecoin by Azuki: Azuki teased the upcoming Animecoin token. On December 22, the official Azuki account retweeted a video about Animecoin, hinting at imminent developments.
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Inkonchain by Kraken: Kraken announced its Ink Layer-2 blockchain has gone live on mainnet, ahead of its originally planned early 2025 launch. The network offers 1-second block times, optimized for high-frequency trading.
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Unichain by Uniswap: Uniswap unveiled Unichain, a Layer-2 network designed specifically for DeFi. Mainnet is expected early next year, with the Sepolia testnet already active.
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LineaBuild by ConsenSys: ConsenSys launched Linea, a Layer-2 blockchain solution. The mainnet went live during EthCC in Paris and has shown strong on-chain activity since launch.
Major Events & Progress in Watchlisted Protocols
This Week’s Crypto Watchlist
This week, multiple projects in crypto and tech made significant progress:
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$BTC – MicroStrategy Added to Nasdaq-100 Index
- Date: December 23
- MicroStrategy becomes the first Bitcoin-focused company added to the Nasdaq-100 Index.
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$HYPE – Hyperliquid Token Shows Strong Performance
- Status: Ongoing
- The Hyperliquid token demonstrated resilience during Bitcoin’s downturn, showcasing market strength.
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$FTM – Sonic Gateway Launch Imminent
- Date: Next week
- The native bridge between Sonic and Ethereum L1, Sonic Gateway, is set to launch.
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$PENDLE – Airdrop Snapshot Approaching
- Date: December 31
- An airdrop snapshot for PENDLE is即将 conducted for stakers.
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FLUID (formerly INST) – Fluid DEX Proposal
- Status: Live
- A proposal to deploy Fluid DEX on Arbitrum L2 is now open for voting.
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$ZRO – LayerZero Fee Switch Proposal
- Date: December 27
- Voting on LayerZero’s fee switch proposal concludes. If passed, it will activate ZRO buyback and burn mechanisms.
Upcoming Token Unlocks
Top 7 Token Unlocks: Dec 23–29
Next Week’s Top 7 Token Unlocks
Here are the largest token unlocks by value next week:
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IDEX (ID) ◦ Unlock Value: $35.32M
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Immutable X (IMX) ◦ Unlock Value: $32.43M
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Grass (GRASS) ◦ Unlock Value: $9.49M
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Yield Guild Games (YGG) ◦ Unlock Value: $55.57M
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NFPrompt (NFP) ◦ Unlock Value: $3.85M
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GT Protocol (GTAI) ◦ Unlock Value: $2.52M
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Moonwell (WELL) ◦ Unlock Value: $2.33M
Protocols in Focus
Top Gainers Over the Past 7 Days
Top 10 Gaining Tokens (Past 7 Days)
Despite overall market weakness, newly launched tokens like $USUAL, $MOVE, and $HYPE maintained strong upward momentum. Stablecoins showed high resistance during volatility. Meanwhile, tokens like $Fartcoin and $BGB posted gains contrary to broader market trends.
Latest on the Hyperliquid Ecosystem
- Hyperliquid, powered by the $HYPE token, is rapidly emerging in the DeFi space.
- Its airdrop was one of the largest in crypto, drawing massive attention and user growth.
- With a focus on decentralized liquidity, Hyperliquid is expected to keep innovating and growing in DeFi.
World Liberty Financial Partners with Ethena to Launch sUSDe
- Background: World Liberty Financial, backed by Donald Trump, is collaborating with Ethena, launching sUSDe as their first joint product.
- Impact: This partnership could have profound implications for both traditional finance and DeFi.
- Innovation: Through sUSDe, Ethena is redefining the concept of “internet bonds,” aiming to challenge traditional government bonds in usability and adoption.
Exploring XProtocol’s Blockchain Solution
- Technical Edge: XProtocol is an advanced blockchain protocol focused on solving scalability and interoperability challenges.
- Goal: It aims to connect disparate blockchain ecosystems, laying the foundation for a more integrated decentralized future.
- Positioning: By optimizing blockchain infrastructure, XProtocol is becoming a vital component of decentralized technology’s evolution.
Chainbase: Revolutionizing Blockchain Data Analytics
- Innovative Tech: Chainbase leverages AI-powered tools to enhance on-chain data processing, transforming how blockchain analytics are conducted.
- Practical Use: This enables dApps to make smarter, data-driven decisions.
- Future Vision: Focused on delivering high-quality on-chain data for the emerging AI economy, Chainbase is becoming an essential tool for DeFi apps and the broader blockchain ecosystem.
This Week’s Product Updates
Key developments this week related to stablecoins:
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Ethena Launches Stablecoin Backed by BlackRock’s BUIDL Token
- Ethena launched a stablecoin backed by BlackRock’s BUIDL token, enhancing its DeFi capabilities.
- This integration of traditional finance and blockchain technology is expected to boost trust and long-term potential.
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Kraken Announces Mainnet Launch of Ink Blockchain
- Kraken launched its Ink blockchain, expanding beyond its traditional exchange offerings.
- This strengthens Kraken’s decentralized services and paves the way for new blockchain solutions.
- The move signals Kraken’s commitment to sustained growth in Web3.
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Solana Network Sets New Transaction Volume Record
- Solana set a new daily transaction volume record, reinforcing its position as a leading blockchain.
- In November, 55% of global crypto users were active on Solana.
- This growth reflects Solana’s rising adoption and market influence.
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Nexus Testnet Attracts 1.5 Million Nodes
- Nexus’s decentralized supercomputer testnet attracted 1.5 million nodes, indicating strong potential.
- The project aims to redefine decentralized computing and improve blockchain scalability.
This Week’s Major VC Funding Rounds
Projects raising over $100 million this week:
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0G Labs
- Total Raise: $250 million in token purchase commitments.
- Additional Funding: $40 million for decentralized AI OS development; raised $35 million earlier this year.
- Focus: Preventing large entities from monopolizing vast datasets via decentralized tech, especially in fast-growing AI.
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Monad
- Total Raise: $225 million led by Paradigm.
- Goal: Build a Layer-1 blockchain competing with Ethereum and Solana, featuring a new parallel-processing EVM with instant finality.
- EVM Compatibility: Enables easy migration of existing Ethereum apps.
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Celestia
- Total Raise: $100 million led by Bain Capital Crypto.
- Goal: Achieve higher throughput with 1GB blocks, matching Visa-level capacity.
- Competitors: Ethereum (50 TPS), Solana (up to 65,000 TPS, ~400 avg).
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Berachain
- Total Raise: $100 million Series B.
- Coleads: Framework Ventures and Brevan Howard Digital.
- Use of Funds: Economic growth, global expansion, engineering resources.
- Target Regions: Hong Kong, Singapore, Southeast Asia, Latin America.
Recent Fundings Backed by Top Angel Investors
This week, several crypto and tech projects secured significant venture funding:
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Yei Finance
- Funding: $2 million
- About: A non-custodial money market protocol building secure, decentralized financial services.
- Significance: Reflects strong market demand for innovative DeFi tools that empower users to control their assets.
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Uranium Digital
- Funding: $1.7 million
- About: A blockchain project modernizing uranium trading by streamlining processes and increasing transparency in commodity markets.
- Significance: Shows blockchain’s growing application in niche but critical sectors like energy trading.
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Lens Protocol
- Funding: $31 million
- About: A blockchain-based social network protocol supporting decentralized platforms, aiming to build a user-owned, intermediary-free social ecosystem.
- Significance: Lens Protocol’s raise signals growing interest in decentralized social media, potentially challenging traditional platforms.
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Plume Network
- Funding: $20 million
- About: An L1 blockchain platform bringing real-world assets (RWAs) on-chain, bridging traditional and digital economies.
- Significance: Will redefine how RWAs are tokenized and traded, improving global market accessibility.
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Hexagate
- Type: M&A round led by Chainalysis.
- About: A Web3 security platform focused on securing dApps and blockchain systems against vulnerabilities.
- Significance: Highlights the critical role of security in Web3’s evolution, essential for user trust and platform stability.
These funding rounds reflect diverse investment directions in crypto and tech, revealing strategic moves shaping the industry’s future.
This Week in Crypto News: Long-Term Market Impact
Fed Rate Cut and Implications
The Federal Reserve recently cut its benchmark rate by 25 basis points to 4.25%-4.5%. In its statement, Fed Chair Jerome Powell emphasized that the Fed does not hold Bitcoin nor plans to legislate any Bitcoin purchases, reaffirming its traditionally conservative stance toward crypto.
Economic Outlook and Market Impact
According to the Fed’s latest projections, the economy will see mild adjustments in 2025:
- Unemployment: Expected to dip slightly from 4.4% to 4.3%.
- PCE Inflation: Forecast at 2.5%, up from a prior 2.1%.
- GDP Growth: Projected to rise from 2.0% to 2.1%, with long-term growth stable at 1.8%.
Despite last week’s market correction and ETFs recording their largest outflows ever, global crypto investment products saw $308 million in net inflows this week—extending an 11-week streak of gains. However, the Fed’s rate cut triggered nearly $1 billion in withdrawals from crypto funds, showing investor sensitivity to macro policy shifts.
This complex situation underscores the deepening link between monetary policy and digital asset markets.
RWA Market Surpasses $14 Billion
The global tokenized real-world asset (RWA) market has surpassed $14 billion in value, a 66% year-over-year increase. This milestone signals growing market recognition and adoption of blockchain-based tokenization.
According to Bitwise, the RWA market is projected to grow rapidly, potentially reaching $50 billion by 2025. This growth highlights the transformative potential of linking traditional finance with blockchain, offering greater liquidity and access to real-world assets.
El Salvador Reaches IMF Deal: Bitcoin Policy Shift
El Salvador’s Bitcoin Wallet Balance
El Salvador has reached a historic agreement with the International Monetary Fund (IMF), securing a $1.4 billion loan to support economic development. As part of the deal, El Salvador will implement key policy changes, including removing the mandatory requirement for businesses to accept Bitcoin as payment.
Additionally, the IMF has imposed restrictions on public-sector Bitcoin activities, prohibiting government departments from buying or transacting in Bitcoin. However, the government retains the ability to purchase one Bitcoin per day—a policy that drew widespread attention last week when it bought 22 BTC during a market dip.
These changes mark a significant shift in El Salvador’s pioneering Bitcoin adoption strategy, reflecting efforts to balance fiscal policy with international cooperation.
Binance Survey Reveals 2024 Crypto Trends
A recent Binance survey uncovered key trends in the 2024 crypto market:
- 23.89% of respondents believe AI tokens have the greatest growth potential.
- 19% favor meme tokens as the second-most promising category.
- 12% prioritize DeFi projects.
Notably, 45% of respondents entered crypto in 2024, indicating a surge in new participants. This reflects growing investor interest in AI- and meme-driven markets.
For full results, see the complete report [link].
Research Focus
You’re Not Bullish Enough on Stablecoins
The article “You’re Not Bullish Enough on Stablecoins” explores the growing importance of stablecoins in the crypto market. It argues that these price-stable digital assets are vital to the global financial ecosystem, especially as DeFi expands. The author suggests that as stablecoin adoption grows, they will unlock significant market opportunities and challenge the dominance of more volatile cryptocurrencies.
2025 Market Outlook: Key Predictions
Delphi Digital’s “2025 Market Outlook: Key Predictions” outlines forecasts for the crypto market, covering trends likely to shape the industry. It highlights regulation, market adoption, and emerging technologies, predicting these factors will drive innovation and growth. Experts believe these shifts will create new opportunities and challenges, setting the foundation for the future.
Delphi Digital’s report “The Year Ahead for DeFi 2025” forecasts the state of decentralized finance in 2025. It examines potential trends in DeFi protocols, evolving regulatory frameworks, and technological advancements. The report emphasizes the growing popularity of DeFi platforms and new solutions addressing scalability, security, and user experience. Investors and industry players should monitor transformative changes reshaping the DeFi landscape.
Tokenized AI Agents: Foundational Innovation or Flashy Hype?
“Tokenized AI Agents: Foundational Innovation or Flashy Hype?” analyzes the rise of AI-driven tokens and their potential impact on decentralized networks. It questions whether these AI agents represent a revolutionary convergence of blockchain and AI or merely another marketing gimmick. The report dives into how tokenized AI agents might affect various domains—from DeFi to governance.
“AI + DePIN in 2025” discusses the anticipated role of decentralized physical infrastructure networks (DePIN) in the AI space. It explores how combining AI with blockchain can transform industries and accelerate decentralized solutions. The article predicts that AI’s evolution will drive future developments in blockchain networks and DeFi.
DePIN’s Role in the Next Wave of Crypto
“DePIN’s Role in the Next Wave of Crypto” examines how decentralized physical infrastructure networks (DePIN) may shape the future of blockchain and crypto. As these networks evolve, they’re expected to bring major innovations in managing and accessing physical assets and data. DePIN represents the next phase of crypto, promising breakthroughs in both technology and economics.
The Hype Machine’s Flywheel Effect
“The Hype Machine’s Flywheel Effect” explores how cycles of hype and speculation drive rapid adoption and volatility in crypto and tech. It analyzes the psychological mechanisms behind this phenomenon and its impact on investors and the industry. Understanding this “hype machine” helps market participants better navigate volatility in emerging markets.
Mastering Airdrops: Using Psychology to Build and Identify Winners
“Mastering Airdrops: Using Psychology to Build and Identify Winners” explores strategies for launching and identifying successful airdrops. It emphasizes understanding psychological triggers in investor behavior and leveraging them to maximize impact. By applying behavioral psychology, companies and crypto projects can design more effective airdrops and boost user engagement.
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