Quick Take

• Stablecoin market capitalisation hits an all-time high of US$193 billion; Crypto.com to be the title sponsor for the upcoming Crypto.com Showdown featuring PGA Tour and LIV Golf players; Crypto.com launches Crypto.com Wrapped Bitcoin (CDCBTC) and Crypto.com Staked SOL (CDCSOL)

• US spot Bitcoin ETFs had a weekly net inflow of $355 million last week (past five trading days). Spot Ether ETFs saw a weekly net inflow of $558 million, with the daily net inflow peaking at $333 million on 29 November.

• On the macro side, New Zealand’s RBNZ cuts interest rates by 0.5% to 4.25%, in line with expectations. In the US, the US Personal Consumption Expenditures Price Index increased by 0.2% month-on-month in October and 2.3% year-on-year, both in line with the Dow Jones consensus forecast. FOMC minutes suggested that Fed officials support lowering interest rates “gradually”. The latest CME FedWatch Tool showed a 66% probability of a December rate cut in the US, as opposed to 51% last week.

• Notable updates: Avalanche (AVAX) announced that the Avalanche9000 testnet went live; the proposal for the Cronos (CRO) EVM Pallene Upgrade is now open for discussion on the governance forum; the Crypto.com App listed Big Dog Fink (BINK)

• Notable events in the coming week: US ADP Employment Change, US Michigan Consumer Sentiment Index, ECB President Lagarde Speech

Weekly Market Index

Price and volatility indices were up by +4.78% and +20.44% last week respectively, while volume index decreased by -13.44%. The price increase was led by XRP (+52.2%), which overtook SOL and BNB to become the fourth largest cryptocurrency by market capitalisation.

This coincided with optimism around the prospect of a crypto-friendly administration under the US president-elect Trump and anticipated XRP ETFs. In addition, XRP announced a new strategic partnership with Archax, a UK-regulated digital asset exchange, to launch the first tokenised money market fund on the XRP Ledger.

Check price

Chart of the Week

Stablecoin market capitalisation reached an all-time high of $193 billion on 1 December 2024, exceeding the previous peak of $188 billion on 2 April 2022, according to DefiLlama. This marked the fourteenth month that the stablecoin market capitalisation increased, reflecting a growing demand for stablecoins.

USDT continued to dominate the stablecoin market with 70% share, compared to 44% during the previous peak in April 2022.

Weekly Performance

BTC and ETH increased by +0.5% and +10.7%, respectively in the past seven days. Prices for all other selected top market capitalisation tokens increased except SOL (-5.0%). Solana meme coin launchpad Pump.fun temporarily suspended its livestream feature following considerable community backlash regarding harmful broadcasts on the platform. Pump.fun’s revenue dropped 66% last week compared to the week before.

All key categories increased in market capitalisation in the past seven days, with the gaming category leading the rise.

Notable Token Updates

Newly Listed Tokens in the Crypto.com App

News Highlights

Crypto.com News

• Crypto.com launched Crypto.com Wrapped Bitcoin (CDCBTC) and Crypto.com Staked SOL (CDCSOL). CDCBTC enables holders to participate in DeFi services such as collateralised lending, asset swaps, and yield generation, while CDCSOL provides users with flexibility and liquidity for staked assets.

• Crypto.com secured the title sponsorship of the highly anticipated Crypto.com Showdown, featuring PGA Tour and LIV Golf players who will be playing in Las Vegas on 17 December. This will be the first major golf tournament with a multimillion-dollar purse to be paid in CRO.

Investment Vehicles

• Asset management firm WisdomTree Funds registered for an XRP ETF in the state of Delaware on 25 November, signalling its intent to file with the US SEC. The firm joins Bitwise, Canary Capital, and 21Shares to seek approval for spot XRP ETFs.

• Bitwise filed an application with the US SEC for an ETF based on its existing 10 Crypto Index Fund. The proposed ETF will give investors exposure to cryptocurrencies such as BTC, ETH, SOL, XRP, AVAX, LINK, ADA, BCH, UNI, and DOT. In addition, NYSE Arca filed to list a Bitwise ETP that will hold both spot BTC and ETH, weighted by market capitalisation.

• Ripple launched a tokenised money market fund on the XRP Ledger in partnership with Archax, a UK-regulated digital asset exchange. The tokenised fund comprises part of the US dollar Liquidity Fund managed by UK asset manager abrdn. In addition, Ripple is planning to invest in Bitwise’s XRP ETP, which was previously known as ETC Group Physical XRP and has now been rebranded to Bitwise Physical XRP ETP.

Adoption

• Tether will phase out its Euro stablecoin, EURT, as crypto companies in the EU prepare to comply with the Markets in Crypto-Assets Regulation (MiCA) that will come into effect by the end of 2024 and require stablecoin issuers to be compliant. Users can redeem their EURT tokens until 27 November, 2025.

• MicroStrategy purchased 55,000 more BTC for $5.4 billion, according to a statement on 25 November. The company holds a total of 386,700 BTC (worth ~$37.5 billion at the time of writing) purchased at an average price of $56,671.

Regulation / Policy

• Hong Kong is considering crypto tax exemptions for hedge funds, private equity, and family investment vehicles. The proposal is currently open for a six-week consultation, and aims to boost Hong Kong’s competitiveness among other countries with similar tax incentives.

• Russia approved new crypto tax legislation which recognised digital currencies as property, while imposing a 13% to 15% personal income tax on crypto sales. The bill also exempts Russian crypto miners from value-added tax on mined coins.

• The UK’s Financial Conduct Authority (FCA) unveiled a plan to implement a full regime governing cryptocurrencies by 2026, in response to growing crypto adoption in the country, highlighting the need for clear regulations to ensure safety and sustainability of the sector.

Recent Research Report

• Alpha Navigator: Quest for Alpha [October 2024]: Crypto and Equities had mixed performances in October; Fixed Income was down; BTC led the rise. Canada, China, Eurozone, and New Zealand reduced interest rates; Australia and Japan kept interest rates unchanged.

• Crypto Derivatives Trading - Technical Analysis in Perpectuals and CFDs: In this report, we demonstrate how to use popular technical indicators — MACD and RSI — to build trading strategies, with the consideration of margin and trading fees, within the Crypto.com ecosystem.

• Research Roundup Newsletter [October 2024]: We present to you our latest issue of Research Roundup, featuring our deep dives into Intent-Based Protocols, Solana Staking and Crypto Derivatives Trading – Technical Analysis in Perpetuals and CFDs.

Recent University Articles

• How to Automate Trading on the Crypto.com Exchange: Discover trading bots on the Crypto.com Exchange for DCA, TWAP, and Grid Trading to optimise performance and risk management.

• How to Automate Trading in the Crypto.com App: Automate trades in the Crypto.com App with our trading bots that buy, sell, and DCA at target prices or set intervals. Here’s how they work.

• What Is Crypto.com’s Wrapped Bitcoin (CDCBTC) and How Does It Work?: CDCBTC is Bitcoin wrapped by Crypto.com that allows you to unlock DeFi opportunities with BTC. Here’s how it works.

Catalyst Calendar

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