Gate Research Institute: ETH Spot ETF open interest surpasses the sum of Layer 2, Magic Eden airdrop promotes Non-fungible Token zone's recovery.

Summary

• BTC price is currently in a short-term downtrend, while ETH is currently below MA5, MA10, and MA30.
• BTC and ETH market sentiment is stable but bearish, with liquidation concentrated on long positions across the entire network.
• The ETH ETF’s Ethereum holdings have exceeded the lock-up volume of Layer 2, reflecting the growth of institutional market influence.
• Magic Eden $ME airdrop launched, with a strong market response. The NFT sector may rise against the trend due to the linkage effect.
• Microsoft shareholders voted down a proposal to invest in Bitcoin.
• El Salvador and Argentina have signed an agreement to cooperate and promote the development of the cryptocurrency industry.

Market Review

According to the market data of Gate.io, as of December 11, 4:00 (UTC+0) [1]:

• BTC - The price of BTC has fallen by 0.72% in the past 24 hours, with a highest price of $98,250 and a lowest price of $94,262. The current price is $97,250. Overall, BTC is currently in a downward trend, indicating a short-term bearish dominance. The short-term support level is at $91,111, and if it breaks below this level, it may further decline below $90,000. The resistance level is at $99,000, and if it breaks above this level, it may attract bulls to enter and push the price higher. In the current market volatility, it is advisable for investors to set strict stop-loss orders and pay attention to the breakout of key technical levels.

• ETH - The ETH price has fallen by 2.26% in the past 24 hours, now at $3,666, with the daily high reaching $3,780 and the low at $3,516. Looking at the 1-hour timeframe, ETH is currently below MA5, MA10, and MA30, under short-term pressure, indicating a dominant bearish sentiment in the market. In the short term, it is crucial to focus on whether ETH can break through MA30 and stabilize above it, which could potentially be an initial signal of a rebound. If the price continues to fluctuate within the range of $3,750 to $3,540, a breakthrough above or below the range may provide clear guidance for the subsequent trend. In the current trend, investors should closely monitor the breakthrough of key price levels and manage risks effectively.

• ETF - According to SoSoValue data, the total net inflow of Bitcoin spot ETF in the United States on December 11 exceeded $4.39 billion【2】, and the total net inflow of Ethereum spot ETF in the United States was $3.06 billion【3】.
• Shanzhaibi ——GameFi sector performed strongly, rising 9.3%, reflecting the market’s continued interest in blockchain games and virtual economies. The RWA sector rose 2.0%, indicating further acceptance of blockchain technology in asset tokenization. The Crypto-backed Stablecoin sector rose slightly by 1.1%, indicating a steady demand for decentralized stablecoins in the market.【4】
• US stock three major indexes - S&P 500 index fell by 0.30%, Nasdaq index fell by 0.25%, Dow Jones index fell by 0.35%.【5】
• Spot Gold - The spot gold price is at $2,695 per ounce, up 0.02% intraday.【6】
• Fear and Greed Index - The Fear and Greed Index dropped from 78 to 74 yesterday, indicating that the market is still in a greedy state, but greed is weakening.【7】

Popular Tokens

According to the market data of Gate.io, combined with the trading volume and price performance in the past 24 hours, as of 4:00 on December 11 (UTC+0), the popular altcoins are as follows: 【8】

TAI (TARS Protocol) - Daily increase of about 27.5%, with a total circulation market value of 1.79 billion US dollars. TARS Protocol is an AI-driven modular Web3 infrastructure platform that provides support and scalability for blockchain projects through cutting-edge AI solutions and a one-stop BaaS (Blockchain-as-a-Service) solution. The core goal of this platform is to improve developer efficiency, reduce the technical threshold of blockchain applications, and promote the rapid development of decentralized ecosystems.

Recently, the TAI token market has shown strong performance. This rise may be closely related to its listing and trading on a certain mainstream trading platform, which has attracted widespread attention and significantly increased trading activity. In addition, the technical advantages of TARS Protocol and its ability to solve the scalability pain points of Web3 applications further consolidate the market’s confidence in its long-term growth potential.

GIGA（Giga Chad）—— Single-day increase of approximately 16.0%, fully diluted market value of 5.99 billion US dollars. GIGA (Giga Chad) is an innovative Meme project based on Solana, aiming to create a unique position in the cryptocurrency field through humor and community collaboration. The project is inspired by widely popular internet culture, focusing not only on digital assets themselves, but also on promoting personal growth and positive influence.

Recently, Meme crypto KOL Murad publicly stated that GIGA is expected to become the largest Memecoin on Solana by the end of 2025. At the same time, a well-known centralized exchange announced that it is about to launch GIGA. Possibly boosted by this news, the market’s attention to GIGA has significantly increased, driving the token price up by over 16.0% in a single day.

IO (io.net) - with a daily increase of about 8.1%, the fully circulating market value is 4.16 billion US dollars. IO is a decentralized computing platform that focuses on providing efficient GPU computing power to support high-performance computing applications such as artificial intelligence (AI) and blockchain. The platform reduces computing latency through a globally distributed node network, achieves real-time data processing, and provides developers with a secure and scalable decentralized environment.

Recently, IO announced a partnership agreement with Mira Network. The two parties plan to reduce the error rate in artificial intelligence tasks by combining Mira Network’s consensus technology with IO’s computing infrastructure, thereby rebuilding market trust in AI systems. This collaboration indicates that IO is actively expanding its technological ecosystem, especially in the context of rapid growth in AI demand, and the market is full of expectations for its potential application scenarios and commercial prospects. In response to this news, $IO has risen by 8.1% in the past 24 hours, demonstrating investors’ optimistic expectations for the value of this partnership.

Highlight Data

Contract funding rate and liquidation data reveal changes in market risk preference As of 4:00 on December 11 (UTC+0), according to Coinglass data, the funding rates of Bitcoin and Ethereum weighted by holdings are 0.0090% and 0.0076% respectively, indicating relatively stable market sentiment for the two major cryptocurrencies. The long/short ratio data shows that both BTC and ETH are dominated by short positions, indicating that investors expect further price corrections in the short term. The positive funding rates reflect the continued demand for mainstream assets in the market, but the conservative preference for short positions indicates overall lower risk appetite.

In the past 24 hours, the liquidation amount of long positions has reached $483 million. The liquidation volume of altcoins reached $120 million USDT, while ETH liquidated $104 million USDT. These data reflect the significant volatility and speculative nature of altcoins, with some altcoins (such as MOVE and ME) showing a predominance of short position liquidation. Investors need to pay attention to the potential risks in the altcoin market and should reasonably control their positions to avoid significant losses caused by excessive leverage. The market’s sensitivity to short-term fluctuations indicates that risk management is still an important issue for current market participants.

ETH ETF holdings exceed Layer 2, with institutional preference and technological potential coexisting According to Dune data, the ETH ETF position has reached 3.1795 million coins, accounting for 2.64% of the total Ethereum supply, surpassing the 2.57% position of Layer 2 networks for the first time. This phenomenon reflects the market’s recognition of ETH ETF products, whose compliance and convenience make it the preferred investment channel for traditional institutional investors. In the current macro environment, institutions have a strong demand for low complexity, high transparency investment tools, which further highlights the strategic significance of ETH ETF to the Ethereum ecosystem. [11]

The cryptocurrency market is showing significant differentiation, with the RWA and NFT sectors leading the way Based on the market data of the past 24 hours, the overall cryptocurrency market sector is showing a trend of differentiation. The RWA sector has increased by 8.38%, and the NFT sector is leading the market with a 14.22% increase. PayFi and AI sectors have risen by 6.67% and 3.73% respectively, indicating the market’s continuous attention to innovative and practical tracks. In contrast, the Layer 2 sector has fallen by 1.01%, becoming one of the few underperforming sectors, reflecting the fluctuation of market enthusiasm for scaling technology tracks in the short term.

DeFi and Layer 1 sectors rose by 2.84% and 1.81%, respectively, showing signs of recovery in the core race track. Overall, the market’s attention is tilting towards more application prospects and ecological expansion potential in segmented fields, but the pullback in local sectors such as Layer 2 also indicates investment risks in the technical race track. [12]

Hot Point Comments

El Salvador and Argentina sign agreement to promote the development of the cryptocurrency industry El Salvador and Argentina’s regulatory agencies recently signed an agreement aimed at promoting the development of the cryptocurrency industry in both countries. According to the agreement, El Salvador’s National Digital Assets Directorate (CNAD) and Argentina’s National Securities Commission (CNV) will share their experiences and knowledge in cryptocurrency regulation. El Salvador has taken the lead in the cryptocurrency industry by designating Bitcoin as legal tender, while Argentina has been favored by cryptocurrency developers for its open attitude towards emerging technologies and policies to tackle inflation. This collaboration will provide more opportunities for the development of the cryptocurrency industry in Latin America and promote innovation and cooperation within the region.

This agreement has profound implications for the future development of the cryptocurrency industry in both countries. Through cooperation with Argentina, El Salvador can not only expand its influence in the international market, but also benefit from Argentina’s advantages in cryptocurrency innovation, promoting broader policy exchanges. As the global cryptocurrency market continues to expand, Latin America is gradually becoming an important market for cryptocurrency technology and digital assets. This cooperation may encourage other Latin American countries to follow suit and promote the rise of the region in the global cryptocurrency industry. However, balancing innovation and risk management in the face of changing regulatory policies will be the key to the future development of this cooperation.

Microsoft shareholders vote down Bitcoin investment proposal On December 10, Microsoft shareholders rejected a proposal called ‘Bitcoin Investment Evaluation.’ The proposal, put forward by the National Public Policy Research Center, suggested that Microsoft invest 1% of its total assets in Bitcoin as a hedge against inflation. Microsoft currently holds $78.4 billion in cash and securities on its balance sheet. Despite detailed presentations prepared by MicroStrategy CEO Michael Saylor for the board, emphasizing the potential advantages of Bitcoin, the opposing votes among shareholders still held sway.

The veto of this proposal shows that Microsoft still adopts a more conservative attitude in investment strategy, especially when it comes to volatile assets such as Bitcoin. Although Bitcoin is regarded by some companies as a tool to fight inflation and diversify investments, its market risks and uncertainties have obviously become the focus of Microsoft shareholders’ concerns. This event also reflects the divergence of mainstream technology companies’ acceptance of crypto assets. In the future, with the changes in the market environment and the expansion of Bitcoin’s application scenarios, similar proposals may continue to appear on corporate agendas, but gaining support will still take time and opportunities. [14]

Circle partners with LuLu Financial to expand into the Middle East market On December 10th, Circle announced the establishment of a new entity in the Abu Dhabi Global Market (ADGM) and a strategic partnership with LuLu Financial Holdings, one of the leading financial services groups in the Middle East. This partnership will leverage Circle’s USDC stablecoin to optimize remittance and cross-border payment services between the Middle East and regions such as Asia and Europe. LuLuFin processes over 10 billion US dollars in transactions annually, and this collaboration aims to achieve fast, transparent, and cost-effective payment processes through blockchain technology. Circle stated that this is an important step in expanding its presence in the Middle East and Africa markets, committed to providing efficient solutions in the high-demand field of cross-border payments, while promoting financial inclusivity.

This partnership demonstrates the potential application of blockchain technology in the traditional financial sector and reflects the advantages of stablecoins in cross-border payments. Circle’s strategy not only helps to enhance its influence in the Middle East market, but also may provide support for financial innovation and digital transformation in the region. However, the regulatory compliance and market acceptance of stablecoins are still the key factors determining the success or failure of the project. In the future, with the growing demand for crypto assets in the Middle East, Circle’s cooperation with LuLuFin may become a benchmark for the industry’s development, further promoting the upgrade of the global payment ecosystem. [15]

Magic Eden $ME airdrop launched, market response enthusiastic On December 10th, Magic Eden officially launched the $ME token airdrop, releasing 12.5% of the total supply (approximately 125 million tokens), which will be distributed to eligible users through the action app for claiming. Users can continue to bind more wallets and claim $ME before February 1, 2025. Unclaimed $ME tokens will be distributed to stakers. Prior to the airdrop, the pre-trading price of $ME surged to over $7, and opened at a high of $13. However, it quickly dropped to around $4. After $ME tokens were listed on a Korean exchange at 1:30 (UTC+0), it sparked another trading frenzy, with the price surging to $10 before adjusting to around $6. The enthusiastic market response highlights the token’s popularity, while the intense fluctuations reflect the level of speculative trading activity. Users need to stay updated on project developments to adjust strategies in a timely manner and ensure the safety and maximization of their assets and returns.

As of December 11th, approximately 108,000 airdrop claims have been completed, with a total of 85.67 million $ME claimed, accounting for 68.53% of the total airdrop. Among them, there are over 900 addresses with a single airdrop of over 10,000 $ME, while the majority of users received 100 to 500 $ME, accounting for about 35.11%, indicating a relatively dispersed distribution structure. This airdrop not only stimulated market participation enthusiasm but also highlighted the influence of Magic Eden. However, the future challenge lies in how to use the $ME token to enhance ecological stickiness and stabilize the market. [16]

Financing Information

According to RootData, 6 projects publicly announced funding in the past 24 hours, with the highest amount being 25 million US dollars, totaling over 41.5 million US dollars in funding, involving CeFi, DeFi, and AI sectors. Here are the top three funding amounts:

Klickl completed a $25 million Series A financing with a valuation of $125 million. The round was jointly led by Web3Port Foundation and Aptos Labs, with participation from several institutions including Summer Ventures and Heritage Horizon Capital. Klickl is a global virtual asset service provider offering spot and futures trading, fiat OTC, B2B institutional solutions, payments, wallets, custody, and wealth management services.

Hyperbolic - Hyperbolic has completed a $12 million Series A financing round, led by Variant and Polychain Capital, with participation from Chapter One, Lightspeed Faction, and others. The new funds will be used to expand the engineering and strategic teams and enter the market. Hyperbolic plans to integrate global GPU computing resources with blockchain technology to provide the market with verifiable, secure, and reliable AI services, effectively alleviating the industry pain points of high computing costs and uneven distribution.

SmarDex - SmarDex completed a $4.5 million seed round of financing, and the investors have not been disclosed. SmarDex is an automated market maker (AMM) that solves the problem of impermanent loss (IL) and in some cases converts it into impermanent gain (IG). It is a decentralized software that runs on compatible Ethereum virtual machine blockchains (such as Ethereum, Binance Smart Chain, Avalanche, Polygon, etc.).

Airdrop Opportunity

Vana

Vana is an AI data star project led by Coinbase, Paradigm, and Polychain, with a total financing of 25 million US dollars. The project is committed to enabling users to control their own data and profit from it. Its track involves the personal data market worth billions of dollars, and it plans to airdrop tokens in December. Users can get tokens for free by completing interactive tasks. [18]

Participation Method:

1. Login to the official website and complete basic tasks (such as receiving test coins, connecting to Twitter). [19]
2. Connect the wallet and use your phone’s Little Fox to scan the code to complete the authorization.
3. Enter 13 DataDAO tasks and complete any one to qualify.
4. Example tasks: dlplabs, upload LinkedIn data verification; Scrolldao, upload Instagram data verification.

Reminder: The airdrop plan and participation methods may be updated at any time. It is recommended that users follow Vana’s official channels for the latest information. At the same time, users should participate with caution, pay attention to the risks, and conduct thorough research before participating. Gate.io does not guarantee the distribution of subsequent airdrop rewards.
Reference materials:

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13. Coindesk,
14. X,
15. Circle,
16. Dune,
17. Rootdata,
18. X,
19. News,

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