Bitget Daily Digest | ETH rises strongly, new token $THE surpasses 300% after listing (November 28)
Market highlights
1. On-chain trends are showing divergence. $UBC has emerged as a standout in the AI meme sector after AI entrepreneur Lester Paints launched the token on pump.fun, briefly pushing its market cap past $100 million. Meanwhile, memecoins like $1 and TikTok-driven favorites such as $CHILLGUY are gaining significant traction.
2. A U.S. court ruled that the U.S. Treasury Department's sanctions on Tornado Cash smart contracts were unlawful, causing $TORN to spike tenfold at one point. Meanwhile, $THE, a newly listed coin on Bitget, surged over 300%, showcasing its strong wealth-effect potential.
3. Bitwise has submitted an application for a cryptocurrency index ETF to the U.S. SEC, consisting of $SOL, $XRP, $ADA, and seven other tokens. Valour launched the first Dogecoin ETP in the Nordic region, while Chinese firm SOS announced a $50 million Bitcoin purchase, driving its stock price up by 98%.
4. The U.S. real GDP grew at an annual rate of 2.8% in Q3 2024, in line with expectations and unchanged from previous estimates. The data had a neutral impact on the market. The core PCE price index for Q3 has been adjusted to 2.1%, lower than the expected 2.2%, indicating easing inflationary pressures, which supports increased risk-taking in the market.
Market overview
1. BTC experienced a short-term rebound, ETH surged strongly, and the overall market rallied. The newly listed token $THE performed impressively.
2. U.S. PCE inflation data supports cautious rate cuts, halting the recent streak of gains in U.S. stocks. Tech stocks led the decline, with Nvidia dropping over 3% at one point.
3. Currently priced at 96,237 USDT, BTC faces significant liquidation risks. A 1000-point drop to around 95,237 USDT could result in over $226 million in cumulative long position liquidations. Conversely, a rise to 97,237 USDT could trigger more than $59 million in cumulative short position liquidations. With long liquidation volumes far surpassing short positions, it's advisable to manage leverage carefully to avoid large-scale liquidations.
4. Over the past day, BTC experienced $5.09 billion in spot inflows and $5.12 billion in outflows, resulting in a net outflow of $30 million.
5. Over the last 24 hours, $DOGE, $XRP, $SUI, $ADA, and $AVAX led in futures trading net outflows, signaling potential trading opportunities.
Highlights on X
@YesX: Deep dive into the ve33 model and market potential of $THE
@YesX provides an in-depth analysis of $THE and the ve33 model, exploring their unique mechanisms, market performance, and future potential. They believe $THE represents a disruptive innovation in the crypto market, surpassing traditional DEX models.
Core mechanism of $THE
Revenue sharing for ve33 lockers
Unlike "useless" tokens like $UNI and $CAKE, the key feature of the ve33 model is that all DEX revenues are channeled directly to ve33 lockers, creating real value for token holders.
Innovative liquidity incentives
Users providing liquidity for $THE earn rewards directly in $THE, rather than LP tokens offered by traditional decentralized exchanges This mechanism avoids the risks of impermanent loss.
The APY of LP rewards is determined through votes by lockers. Project teams can "bribe" lockers to increase LP rewards, enhancing liquidity attraction.
Stable lock-up and returns
The average lock-up period for $THE lockers is 1.78 years, with a maximum lock-up duration of 2 years. Approximately 80% of $THE supply is locked, effectively functioning as a permanent lock-up.
Even during bear markets with minimal trading volumes, lockers can still maintain an APY of 35-40%, providing stable returns for large-scale funds engaging in hedging and locking.
Comparison with $AERO and future potential
Market performance of $THE
Since launch, $THE has generated nearly $20 million in cumulative revenue, with weekly revenue peaking at $1.2 million.
It currently has a circulating market cap of $50 million and generated $400,000 in revenue last week. If $THE reaches a market cap comparable to $AERO's (circulating market cap of $800 million and a total market cap of $1.7 billion), it has the potential for 15–20x growth.
The flywheel effect
$THE's ve33 model integrates liquidity across the entire chain. As the flywheel effect accelerates, $THE can attract the majority of liquidity on the BNB Chain, similar to $AERO's 80% TVL dominance on the Base chain.
Projects can lock $THE tokens to vote for their own liquidity pools, further boosting LP rewards and creating a positive feedback loop where token demand and lock-up volume grow together.
Strategic support from Binance
$THE has secured investment from the BNB Chain Foundation, signaling that Binance views it as key infrastructure for reshaping the trading model within the BNB Chain ecosystem. By leveraging the ve33 model, $THE aims to become the liquidity hub of BNB Chain, akin to $AERO's role on Base chain.
Evolution and impact of the ve33 model
Historical development
The first generation of ve33 was launched by the CTO on the FTM chain. However, the flywheel effect failed to gain momentum due to the short lock periods of only six months.
The second generation of ve33 was launched by $VELO on the OP chain). Four-year locks by whales led to ecosystem centralization, demotivating project teams.
The third generation of ve33 was launched by $AERO on the Base chain. Its improved design successfully sparked the flywheel effect, consolidating liquidity across the entire chain.
The current generation ($THE), with optimized locking mechanisms and liquidity distribution strategies, positions $THE as the most promising ve33 implementation to date.
Reshaping trading models
ve33 fosters a tri-party dynamic among lockers, liquidity providers, and project teams, reducing bad actor risks while underpinning token value. By locking $THE, projects stabilize liquidity, giving ve33 tokens attributes akin to "base currency."
Cross-chain liquidity integration
The flywheel effect of ve33 drives liquidity concentration toward leading projects. On the Base chain, $AERO has become indispensable for project teams, and $THE is gaining similar traction on BNB Chain.
The "vampire effect" of ve33 not only reshapes on-chain trading models but challenges the traditional DEX liquidity paradigm.
@YesX asserts that $THE and the ve33 model are reshaping the fundamental logic of blockchain ecosystems. By attracting liquidity, promoting stable locking, and leveraging incentive-driven flywheel effects, $THE is poised to become the liquidity center of BNB Chain. Its impact could extend to transforming trading models across the blockchain industry. With Binance's strategic backing and the ongoing refinement of ve33 models, $THE's growth potential warrants close attention.
X post: https://x.com/Yes_X_/status/1861547620088594873
Institutional insights
1.Galaxy Research anticipates that Bitcoin will retest the $100,000 level in the near term.
2.Greeks.live: Options data reveals that bullish sentiment for ETH far surpasses bearish sentiment.
Article: https://x.com/BTC__options/status/1861791622339702933
3.QCP Capital: Changes in the ETH/BTC exchange rate suggest a market shift towards ETH, driven by news of the U.S. Treasury Secretary appointment and the subsequent market rebound.
Article: t.me/QCPbroadcast/1370
4.CryptoQuant Analyst: Ethereum's "second bull market" has begun
Article: https://x.com/cryptoquant_com/status/1861840366669877742
News updates
1. Tether will halt support for EURt due to European regulatory challenges, and shift its focus to Hadron.
2. Former CFTC Chair states crypto was a "key priority" for the Trump administration.
3. European Parliament approves a new commissioner lineup, including those who may oversee cryptocurrency regulations.
4. Vancouver Mayor plans to launch a "Bitcoin-Friendly City" initiative.
5. The Trump administration has announced cabinet nominees, including more than five strong cryptocurrency advocates.
Project updates
1. Coinbase opens PEPE trading to users in New York.
2. UniSat clarifies that unisats on Fractal and FBmainchain are not issued by UniSat.
3. Fractal disclaims association with any "Potato"-related assets.
4. Ripple announces investment in Bitwise Physical XRP ETP.
5. Starknet: Version 0.13.3 is now live on mainnet.
6. Polyhedra and Coinbase partner to migrate a significant volume of ZKJ tokens to Coinbase custody.
7. Clanker co-founder states that they are upgrading the Clanker contract to enable users to claim 40% revenue sharing.
8. Anoncast on Base chain launches an anonymous token issuance feature called "anonfun."
9. World rolls out World ID verification services in Panama.
10. GMGN releases GMGN VIP update, supporting 500 monitored addresses and 0 latency TG wallet address monitoring.
Token unlocks
Fetch.ai (FET): Unlocking 4.47 million tokens, valued at $6.35 million, accounting for 0.2% of circulating supply.
Celo (CELO): Unlocking 2.85 million tokens, valued at $2.29 million, accounting for 0.5% of circulating supply.
Recommended reads
How long can Bitcoin keep burning bright?
Following an overnight rally and quick pullback, this article explores the interplay of macro policies, market dynamics, liquidity, and institutional demand. How long can Bitcoin burn? This article helps you understand the logic behind it.
Link: https://www.bitgetapp.com/zh-CN/news/detail/12560604377620
From beginner to gold-digger: How memecoin newbies use GMGN for on-chain scanning
On-chain PVP is a game of both opportunity and risk. How to follow "smart money" to uncover promising memecoins? How to avoid being outplayed? Can you master the art of on-chain wealth discovery with GMGN's tools? This article takes you from beginner basics to advanced strategies.
Link: https://www.bitgetapp.com/zh-CN/news/detail/12560604377126
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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