With the popularity of DeFi and DePIN, BTC may continue to break upward

RWA and DePIN are becoming more and more popular, and BTC is fluctuating around the 100,000 mark and is about to hit a new high.

Crypto Market Summary

1. BTC continues to bottom out after breaking through the 100,000 US dollar mark and is about to hit a new high;

2. With Trump's statement and BlackRock's endorsement, DeFi and DePIN are beginning to gain popularity;

3. Meme is still the hottest narrative at the moment, and Meme applications in the BSC and Sui sectors are beginning to prosper;

4. European countries have also begun the process of promoting cryptocurrency, and will usher in the most cryptocurrency-friendly market environment in the next few years.

1 Market Overview

1.1 FutureMoney Group DePIN Index

FutureMoney Group DePIN Index is a high-quality DePIN portfolio token index built by FutureMoney, which selects the most representative 24 DePIN projects. Compared with the last report, this Index has a slight correction because the market has begun to re-enter the breakthrough range and the cottage has been absorbed.

1.2 Crypto market data

At present, we can see that the total market value of cryptocurrency is still at a relatively high level. Although it has fallen from 3.69 trillion to 3.64 trillion US dollars, it still shows an upward trend overall.

From the trend changes of Coinglass contract holdings, since December, the open interest of BTC contracts across the entire network has continued to rise, from US$65 billion to US$68.7 billion. This shows that after the market experienced the bearish panic after Bitcoin broke through US$100,000, it began to continue to be bullish on BTC.

At present, the overall BTC trend is still strong. In the past few days, BTC has completely net inflows, which shows that OTC funds are optimistic about the subsequent development of BTC. This trend is consistent with Trump's inauguration on January 20.

1.3 CPI and other data and market reactions to judge the market

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1. Macro level: expectations of interest rate cuts are rising. Expectations for interest rate cuts are rising, and the Nasdaq has broken through 20,000 points for the first time. During the week, the Nasdaq rose 0.3%; the 10Y US Treasury yield rose 25bp to 4.40%;

The number of new non-farm payrolls in November rebounded to 227,000. After the data was released, the market expected the probability of the Federal Reserve cutting interest rates by 25bp in December to rise from 67% to 85%, and the possibility of continuing to cut interest rates in December increased. At the same time, the three major US stock indexes rose more than fell, the US Treasury yields fell, and the US dollar index fell in the short term.

As of December 7, the number of people applying for unemployment benefits in the United States at the beginning of the week was 242,000, slightly higher than market expectations.

The US dollar index rose, and most other currencies depreciated against the US dollar. The US dollar index rose 0.9% to 105.97, the euro depreciated 0.6% against the US dollar, the pound depreciated 0.9% against the US dollar, the yen depreciated 2.4% against the US dollar, and the Canadian dollar depreciated 0.6% against the US dollar.

2. Cryptocurrency: BTC broke through the $100,000 mark on December 5 and completed the test of a new high. It is currently continuing to bottom out near $100,000, and there is a high probability of testing a new high in the future.

3. Sectors worth investing in: The Meme narrative is still strong. There are signs of overflowing from the SOL ecosystem. The BSC ecosystem and the Sui ecosystem are beginning to see a Meme boom. In addition, due to Trump’s friendly statement on DeFi and DePIN, and the good performance of a series of DeFi and DePIN projects invested by BlackRock, the above two tracks have begun to usher in a real sector rotation boom. This also matches the law of capital flow from mainstream coins to ecological coins in each cycle, and then to subdivided tracks.

2. Hot Market News

2.1 Trump promised that Bitcoin and cryptocurrency will flourish in the United States, and said that the DePIN use case will legalize cryptocurrency

US President-elect Trump attended the Blockchain Association’s annual gala and delivered a speech: he affirmed the efforts made by the Blockchain Association for US cryptocurrency legislation; said that real use cases like DePIN legalize cryptocurrency and are on the priority list of legislation; and promised to ensure that Bitcoin and cryptocurrency flourish in the United States.

2.2 Nansen: Institutional interest in crypto products surges in 2025

According to the on-chain analysis platform Nansen, the crypto industry may experience a surge in institutional interest in listed crypto products in 2025, and Bitcoin may become part of the default balanced asset allocation between asset management companies and pension funds. In the short term, what the post-election market sees is a healthy rotation between outperforming cryptocurrencies. The environment in December is generally positive, but volatility may increase by January next year as the new US government takes office.

2.3 Sui sector Meme concept is hot

Meme is still hot, and the animal Memecoin AXOL on Sui has a maximum increase of more than 1034%, and its current market value is about 68 million US dollars. And the AI ​​Memecoin ARC, which came out five days ago, has a maximum increase of more than 612%, and its current market value is about 11 million US dollars. FARTCOIN, which had a strong increase last week, has surpassed GOAT in market value and ranked second in AI Meme sector market value. AI16Z is still the first.

2.4 RWA total market value exceeds 14 billion US dollars

According to the data of RWA monitoring platform RWA.xyz, the total market value of RWA has exceeded 14 billion US dollars, with a 5.56% increase in the past 30 days, setting a record high. The RWA field is definitely one of the most eye-catching in 2024. Recently, the Trump family crypto project World Liberty has bought a large number of non-stablecoin assets, half of which are DeFi head applications and half are RWA assets. RWA decentralized stablecoin USUAL is also very active in pre-market trading on Binance. It has nearly doubled compared to the pre-market trading just now, and the highest price has exceeded US$0.8, which is also worthy of attention.

Three, regulatory environment

The progress of EU countries in promoting cryptocurrencies has also caught up. French member of the European Parliament (MEP) Sarah Knafo urged the EU to establish a strategic Bitcoin reserve. She believes that the current financial strategy of the EU puts member states at a disadvantage in the rapidly developing monetary landscape (especially the crypto-supportive government led by the United States), and criticizes the existing regulatory measures as being too strict. At the same time, Deutsche Bank is trying to solve the compliance barriers of public blockchains, and the pilot project Project Dama 2 incorporates L2.