Gate Research: Solana Partners with Kalshi to Fully Tokenize Prediction Markets | FED and FDIC Advance GENIUS Act Implementation

Crypto Market Overview

BTC (-0.91% | Current Price: 86,458 USDT): Over the past 24 hours, market sentiment has turned cautious, with crypto assets experiencing renewed selling pressure. Following Monday’s pullback, Bitcoin fell further below $84,000 on Tuesday, with a single-day decline exceeding 6%. Seasonally, the final month of the year is often weak due to cautious retail investors and institutions engaging in year-end window dressing. Additionally, Japan’s recent off-cycle rate hike signals have raised the potential for a yen carry trade unwind, further pressuring global risk assets, including crypto. In the short term, structural headwinds may persist until an actual rate cut materializes. Technically, $80,000 remains a key support; if BTC can stabilize above $85,000, it may retest the $90,000 resistance level.

ETH (-2.43% | Current Price: 2,794 USDT): Dragged by BTC’s correction, Ethereum fell below $2,800 over the past 24 hours and is once again approaching its key $2,600 support. On the 4-hour chart, Bollinger Bands are widening, price is near 2 standard deviations, MA5/10/30 are in a bearish alignment, RSI is in oversold territory, and capital outflows are evident — all reflecting strong defensive sentiment. Investors are responding to concentrated liquidity and the prevailing downward structure. Both technical patterns and on-chain liquidation data indicate that ETH remains in an adjustment phase. As the market nears a critical decision point, key support levels are especially important: $2,600 is the core short-term support, and if held, ETH could attempt a rebound toward $2,800.

Altcoins: Over the past 24 hours, altcoins broadly declined, with XRP down 7.9% and SOL down 9.0%. The altcoin seasonal index stands at 37, indicating very cautious risk appetite.

Macro: On December 1, the S&P 500 fell 0.53% to 6,812.63; the Dow Jones Industrial Average dropped 0.90% to 47,289.33; and the Nasdaq declined 0.38% to 23,275.92. As of 02:00 AM (UTC) on December 2, spot gold was trading at $4,218 per ounce, down 0.29% over the past 24 hours.

Trending Tokens

A8 Ancient8 (+89.09%, Market Cap: $23.50M)

According to Gate market data, A8 is currently priced at $0.05412, up 89.09% in the past 24 hours. Ancient8, built on OP Stack in collaboration with Celestia Underneath, is developing an Ethereum L2 tailored for gaming, providing a comprehensive suite of Web3 gaming infrastructure tools while serving as a global distribution and marketing channel for games.

A8’s recent surge is mainly driven by ecosystem expansion. On November 26, Ancient8 announced a partnership with the gaming identity layer Dæmons, planning to integrate A8 as a staking reward within its ecosystem. Additionally, the new Web3 game incubator AncientX Studio has launched two games on its chain, injecting more use cases and growth momentum into the ecosystem.

PRIME Echelon Prime (+45.97%, Market Cap: $49.57M)

Gate data shows PRIME is currently trading at $0.8836, up 45.97% in 24 hours. Echelon Prime Foundation is a Web3 ecosystem driving the next generation of gaming. With PRIME support, Echelon promotes innovation in new gaming economies through an open-source, community-led framework.

PRIME’s recent gains are primarily fueled by exchange listings and trading incentives. An exchange listed the PRIME/USDT pair on November 8 and concurrently launched an $8,000 trading competition running until December 1. New listings typically boost liquidity and exposure; although the short-term catalyst is clear, PRIME’s price remains 55.6% below its 90-day average, reflecting a cautious market sentiment.

FIR Fireverse (+44.53%, Market Cap: $9.71M)

Gate data indicates FIR is currently priced at $0.05546, up 44.53% in the past 24 hours. Fireverse is an AI and blockchain-driven decentralized music creation platform, offering AI-generated music, professional promotion, blockchain-based copyright protection, and token incentives. Users can create, trade digital assets, and participate in the Web3 music ecosystem, transforming music creation and monetization.

FIR’s surge is mainly due to its alignment with the AI theme. Fireverse’s AI-powered music platform boasts 16 million users and generates royalty income through NFTs, fitting well with the current AI infrastructure token trend. However, FIR’s 7-day RSI has reached 90.16, indicating a heavily overbought condition. A close below key support levels could trigger profit-taking in the near future.

Alpha Insights

Solana Partners with Kalshi to Fully Tokenize Prediction Markets

Kalshi announced it will tokenize thousands of its existing prediction market contracts on Solana, converting them into on-chain tradable SPL tokens. This tokenization is powered by the DFlow Prediction Markets API, providing 100% market coverage, native on-chain ownership, composability with DeFi applications, and stablecoin settlement. At the same time, Kalshi launched a developer grant program exceeding $2 million to encourage integration of this on-chain functionality. According to CNBC, the initiative aims to attract high-frequency crypto traders, enhance platform liquidity and pricing accuracy, enable third-party front-end development, and strengthen trading privacy. Axiom Exchange will be the next integrated platform, with additional blockchain projects to follow.

The partnership with Solana means Kalshi’s prediction markets will be more deeply integrated into Solana’s DeFi ecosystem, granting composability, liquidity, and on-chain asset properties to prediction contracts. Tokenizing traditional prediction market contracts can improve transparency, lower entry barriers, and potentially attract more institutional and retail participants, enhancing connections between DeFi and traditional finance. However, it may also introduce new risks and regulatory scrutiny, as prediction markets may intersect with gambling, derivatives, and compliance regulations; stricter regulatory attitudes could pose challenges to on-chain tokenization.

FED and FDIC Advance GENIUS Act Implementation, Stablecoin Rules Expected in December

Travis Hill, Acting Chairman of the FDIC, testified before the House Financial Services Committee that the FDIC expects to release its first regulatory proposal for stablecoin issuers in December to implement the GENIUS Act. The initial rules will clarify the federal oversight application process for stablecoin issuers, followed by prudential requirements early next year for FDIC-regulated payment stablecoins, including capital standards, liquidity requirements, and reserve asset quality oversight. FED Vice Chair Michelle Bowman also confirmed that the FED is developing regulatory frameworks for capital, liquidity, and risk diversification for stablecoin issuers as required under the GENIUS Act.

This marks the regulatory framework for payment stablecoin issuers entering implementation—stablecoins will be subject to federal oversight with defined capital, liquidity, reserve, and compliance standards. For the crypto industry, this improves transparency and compliance, potentially attracting institutional and mainstream financial participants, while also raising issuance costs and limiting high-risk, unbacked stablecoin projects.

Strategy Establishes $1.44 Billion Dividend Reserve Fund

Strategy announced the creation of a $1.44 billion dividend reserve fund, sourced from proceeds of its Class A common stock market offerings. The fund aims to maintain enough reserves to cover at least 12 months of dividends, with plans to gradually increase coverage to 24 months or more. The company retains full discretion over the maintenance, amount, terms, and conditions of the reserve, adjusting it according to market conditions, liquidity needs, and other factors. Between November 17 and 30, Strategy also purchased 130 BTC totaling $11.7 million, bringing its total BTC holdings to 650,000 coins at an average purchase price of $74,436.

The $1.44 billion reserve reflects Strategy’s effort to ensure sustainable dividend and debt interest payments amid market volatility and declining Bitcoin prices, signaling robust cash flow and liquidity management to investors. This reduces the risk of failing to pay dividends due to BTC price fluctuations and may enhance the attractiveness of its stock as a “yield + Bitcoin exposure” asset, appealing to institutions and conservative investors seeking stable returns.


References

• Gate, https://www.gate.com/trade/BTC_USDT
• Farside Investors, https://farside.co.uk/btc/
• Gate, https://www.gate.com/trade/ETH\_USDT
• X, https://x.com/solana/status/1995585928300232796
• CoinDesk, https://www.coindesk.com/policy/2025/12/01/u-s-fdic-chief-says-first-genius-act-regulations-heading-for-proposal-this-month
• Strategy, https://www.strategy.com/press/strategy-announces-establishment-of-1-44-billion-usd-reserve-and-updates-fy-2025-guidance\_12-1-2025

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Disclaimer
Investing in cryptocurrency markets involves high risk. Users are advised to conduct their own research and fully understand the nature of the assets and products before making any investment decisions. Gate is not responsible for any losses or damages arising from such decisions.