Bitget Daily Digest | $HYPE allegedly targeted by North Korean hackers, $ZEN and $AAVE see positive news (December 24)

Market highlights

1. BIO Protocol, a leading DeSci project, has officially launched. With past endorsements from CZ and Vitalik, an upcoming TGE scheduled for January 3, and the founder highlighting the untapped potential of AI agent pricing, we could see a short-term frenzy in DeSci and AI-related projects.

2. The ETH/BTC exchange rate has rebounded, along with a general rise in altcoins. There have been impressive gains in AI agents and recently launched tokens. $ARC, after a brief consolidation, has skyrocketed. Musk's comment on social media regarding speculation that "Biden may pardon SBF" has stirred the market, propelling $FTT higher. 

3. Security researchers have warned that North Korean hacker-associated wallets have been active on Hyperliquid, potentially probing for platform vulnerabilities. As a result, $HYPE has experienced a short-term pullback, with concerns about $2.3 billion in funds secured by a 3-of-4 multisig. Hyperliquid has responded, reassuring that "user funds are safe."

4. Grayscale has filed an 8-K form with the SEC for its Grayscale Horizen Trust ($ZEN), raising $4.71 million through private placements. Meanwhile, Aave is proposing a partnership with Chainlink to refund MEV fees to users. These developments, combined with improving market sentiment and U.S. market hype, could present trading opportunities.

Market overview

1. The ETH/BTC exchange rate is rising alongside broad market gains. New coins like $USUAL and $PENGU have shown impressive performance, while $ARC and Fartcoin have become key market focuses.

 2. Chip stocks are pushing U.S. equity markets higher, with the Nasdaq gaining 1% and Nvidia up 3.7%. The U.S. Dollar Index has rebounded, hovering near a two-year high.

3. Currently standing at 94,708 USDT, Bitcoin is in a potential liquidation zone. A 1000-point drop to around 93,708 USDT could trigger over $510 million in cumulative long-position liquidations. Conversely, a rise to 95,708 USDT could lead to more than $178 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 24 hours, the BTC spot market recorded $4.1 billion in inflows and $4.3 billion in outflows, resulting in a net outflow of $200 million .

5. In the last 24 hours, $BTC, $XRP, $PNUT, $ONDO, and $ENA led in net outflows in futures trading, signaling potential trading opportunities. 

Highlights on X

1. Prithvir: Hyperliquid—A strong product with high risks

Hyperliquid is a leading player in the decentralized trading space, gaining attention for its exceptional user experience and innovative mechanisms. However, it faces significant challenges, including security risks tied to a North Korean hacker group, regulatory pressure from OFAC and the SEC, market-maker concentration risks, performance limitations in its scalability plans, and a significant gap between its token's circulating market cap (MC) and fully diluted valuation (FDV). Despite its strong execution and community incentive model, the current risk-reward ratio appears insufficient. Observing how the team addresses these risks will be critical. If these obstacles are overcome, the project could have a promising future.

X post: https://x.com/Prithvir12/status/1871141201455497309

2. Haotian: AI agent showdown–Early struggles between capital and communities

The AI agent sector is still in its early stages, with no clear divide between Western and Eastern capital. Both communities and VCs are exploring their paths on equal footing. Community-driven meme thinking dominates the market, while VCs are hindered by uncertainties and unexpected developments, struggling to find an effective entry point. While new projects attempt to balance technology with compelling narratives, legacy infrastructure projects face even greater pressure during their transformation. Segments like single agent, framework standards, and AI memes each encounter their own challenges, unable to attract new capital or break through existing bottlenecks. Unclear direction, lack of consensus, and the early state in the market contribute to frequent volatility, potentially creating opportunities for strategic positioning.

X post: https://x.com/tmel0211/status/1871057170676269197

3. Lam: On-chain wallet gaming: makers, whales, trends, and wild cards

Among different types of on-chain transactions, maker wallets focus on single-project operations, with limited funds making them easier to track. Whale wallets tend to hold assets for longer terms, concentrating large amounts without frequent moves. Trend-following wallets actively capture new narratives, executing quick entries and exits. Wild card wallets, composed of on-chain speculative hot money, act collectively to zero out projects or push trend-driven market movements. By tracking early addresses and collective fund flows, investors can identify quality wallets or even form allies to become an influential force in market competition.

X post: https://x.com/0xCryptoWing/status/1870955008679879165

4. Rui: Vita, star in DeSci's longevity segment

Vita is the first exploratory project launched by Bio's parent company, aiming to incentivize biomedical scientists and turn science and research IPs into assets. Its focus on longevity aligns with market trends, attracting attention from many crypto OGs. Additionally, its hard-to-disprove product features have given it broad appeal.

X post: https://x.com/YeruiZhang/status/1871184055242457120

 

Institutional insights

1.Santiment: When retail traders sell based on panic and emotion, whales and sharks buy the dip and create bounces

X post: https://x.com/santimentfeed/status/1871230111938486428

2.CF Benchmarks: Investment advisers to supplant hedge funds as top BTC ETF holders in 2025

Article: https://www.coindesk.com/markets/2024/12/23/investment-advisers-to-supplant-hedge-funds-as-top-btc-etf-holders-in-2025-cf-benchmarks

3.Real Vision: SOL expected to continue its upward trend—let's see how it plays out

X post: https://x.com/RaoulGMI/status/1871172415151321439

 

News updates

1. The U.S Internal Revenue Service (IRS) claimed crypto staking rewards should be taxable income in a lawsuit.

2. The National Bank of Ethiopia may issue guidelines for the use of cryptocurrency, signaling a potential regulatory shift.

3. Botswana’s central bank said the local crypto market is still underdeveloped but needs stronger regulation.

4. Belarus' Deputy Minister of Energy said that as crypto miners flock to the country, they plan to offer incentive tariffs.

 

Project updates

1. Aerodrome announced that 16 million AERO have been acquired by the Public Goods Fund.

2. Hyperliquid Labs refuted allegations of an exploit linked to DPRK hackers, ensuring all user funds are secure.

3. Justin Sun announced that the AI token issuance feature of SunPump is live.

4. Cosmos announced its Q1 2025 roadmap, preparing the Hub and Interchain Stack for rapid development.

5. Lido launched its Ethereum software development kit (SDK), designed to facilitate the integration of Lido's staking services into off-chain applications.

6. A pump.fun co-founder denied Christmas airdrop rumors.

7. Aave is considering integration with Chainlink to return MEV fees to users.

8. Grayscale submitted Grayscale Horizen Trust (ZEN) 8-K form to the SEC.

9. Sonic SVM will airdrop SONIC tokens to eligible TikTok users.

10. Telegram's total revenue for 2024 has surpassed $1 billion.

 

Recommended reads

Expectations and prospect of PENGU

Thoughts on PENGU's outlook.

Read the full article here: https://www.bitgetapps.com/zh-CN/news/detail/12560604443322

 

Why Solana needs network extensions instead of Layer 2 solutions 

Exploring Solana's commitment to a monolithic ecosystem while recognizing the benefits of customizable environments for diverse use cases.

Read the full article here: https://www.bitgetapps.com/zh-CN/news/detail/12560604442235