Weekly Wrap Up

Market Overview

The crypto market continues to see dynamic growth, driven by institutional interest, regulatory shifts, and technological advancements. Here's what you need to know this week:

Ethereum Layer 2 Growth:

• Record TVL: Ethereum Layer 2 solutions have reached a Total Value Locked (TVL) of $51 billion, a 205% increase year-over-year.

• Leaders in the Space: Arbitrum and Optimism dominate, holding over $37 billion combined, showcasing the rapid adoption of rollup technologies.

• Key Drivers: Lower transaction fees and the proliferation of decentralized applications (dApps) are fueling the expansion of Layer 2 networks.

Ethereum: Momentum Building for a Breakout

• Last week, we predicted ETH had a high chance of outperforming Bitcoin—and it’s happening in a big way! This week, $ETHBTC has gained significant strength with ETH going up as much as 10% since the previous update. TOTAL3 (altcoin market cap excluding BTC and ETH) is also showing strong performance compared to Bitcoin. This paints a much brighter outlook for $ALTS as we head into December.

• Here’s the kicker: Ethereum ETF data reveals highly bullish trends. From November 25 to November 29, a total of 466.5 ETH was purchased, with 332.9 ETH bought on November 29 alone—an all-time high since ETH ETFs launched!

• This signals that traditional finance (TradFi) is starting to rotate into ETH, marking a major milestone. With momentum building, we could see even more bullish outcomes for ETH, reinforcing what we highlighted last week.

ETH CHART LAST WEEK:

ETH CHART NOW:

Bitcoin

• The Bitcoin ETF appears to have a direct connection to Bitcoin's current price action. As seen in the charts below, BTC remains in a large range, showing no clear signs of breaking out anytime soon.

• What’s next? We’re likely heading into a low-volume December, with Bitcoin holding its range. This scenario often leads to a decline in Bitcoin Dominance, setting the stage for a potential altcoin surge.

• If BTC stays range-bound, keep an eye on alts—this could be their moment to shine as market dynamics shift.

BITCOIN CHART LAST WEEK:

BITCOIN CHART NOW:

Are Dino Coins Leading the Altcoin Cycle?

• November saw standout performances from “Dino Coins” like XLM, XRP, and ALGO, with the AI Agent ACT taking the top gainer spot, followed by several Dino Coins.

• So, what does this tell us? It suggests that we’re likely entering an altcoin cycle, a familiar pattern where momentum typically starts with ETH, moves to Dino Coins, then to mid-cap coins, and so on.

• However, this cycle has a unique twist. TradFi’s heavy involvement and significantly higher liquidity this time around could influence the dynamics. While liquidity is “extra thicc” compared to previous cycles, we may still see the traditional altcoin meta playing out—but with added volatility and opportunities.

Bitcoin Dominance Update:

• Last week, we highlighted on our Bitcoin Dominance (BTC.D) chart that a downtrend was likely, citing multiple technical factors, including the emergence of a 3-drive pattern.

• Since the newsletter, BTC.D has dropped nearly 3.5%, confirming the expected downtrend. However, BTC.D has now reached a key support level, which could lead to either a short-term bounce or a consolidation phase in this range.

• The next moves will depend on incoming price action, and we’re closely watching for signs of continuation or reversal. For now, the chart suggests caution, but this could still be a critical point for the broader crypto market. Stay tuned for updates as the picture becomes clearer!

BITCOIN DOMINANCE CHART LAST WEEK:

BITCOIN DOMINANCE CHART NOW

Curious How We Nailed Our Predictions for BTC, ETH, and More?

Our previous newsletter highlights the key news and predictions that have been spot-on for BTC, ETH, and other assets. Packed with insights, it delivers instant value in just 5 minutes.

Don’t miss out—stay ahead of the market: Read Here

Trump Administration’s Digital Asset Regulation Plans:

• Focus on CFTC Oversight: President-elect Trump’s team is exploring a shift in regulatory authority, moving crypto oversight to the CFTC for a more innovation-friendly approach.

• Clearer Guidance Ahead: The proposed changes aim to streamline regulatory frameworks and provide clarity for businesses and investors in the crypto space.

• Pro-Crypto Leadership: A potential CFTC appointee with pro-crypto leanings signals optimism for industry-friendly policies under the new administration.

Hoskinson Criticizes Wyoming Stablecoin Project Exclusions: 

• Charles Hoskinson questioned why Cardano and Ripple were excluded from Wyoming's stablecoin project, hinting at potential legal action. The project is set to adopt third-party blockchain vendors in 2025, shaping the regulatory landscape for stablecoins.

Market Events Impacting Crypto

Stay focused on these critical events that could influence your yield potential:

• Token Unlock Calendar:

DeFi News Roundup

This week’s top updates for yield-focused investors:

• MetaMask Enables Gasless Swaps: 
  Ethereum swaps just got cheaper. MetaMask introduced gasless swaps, significantly reducing costs for yield farming and liquidity provision.

• Andre Cronje Teases Solidly V2:
  Andre Cronje hinted at the upcoming Solidly V2, a revamped version of the widely used AMM model. Yield farmers and LPs should watch for updates, as Solidly’s v2 could present lucrative farming opportunities.

• Brazil Proposes a National Bitcoin Reserve:
  A Brazilian congressman proposed creating a National Bitcoin Reserve, which could bolster the country’s crypto ecosystem and attract institutional yield investors.

• Sui Partners with Franklin Templeton:
  Sui secured a partnership with $1.5 trillion asset manager Franklin Templeton. This partnership is set to support Sui ecosystem builders, which could lead to new yield farming and staking opportunities.

• Avalanche9000 Goes Live on Testnet:
  Avalanche launched Avalanche9000 on its testnet. This major upgrade simplifies the creation of new Avalanche L1s, potentially opening more avenues for yield generation on custom Avalanche chains.

• Pump.fun Suspends Livestream Feature:
  Solana-based memecoin platform Pump.fun has indefinitely paused its livestream feature following incidents of users broadcasting harmful content. The platform is enhancing its moderation tools to address these issues

• Hong Kong Virtual Bank Introduces Retail Crypto Trading:
  Hong Kong’s ZA Bank has launched a crypto trading service for retail users, enabling direct fiat-to-crypto trading for Bitcoin and Ethereum. This move aligns with Hong Kong’s push for wider retail crypto adoption and regulatory transparency.

THIS WEEKS GUIDE HIGHLIGHT FEATURING SUI ECOSYSTEM!

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Educational Corner: Move Language in Sui Blockchain

The Move programming language is a low-level, resource-oriented language originally developed by Meta (formerly Facebook) for its Diem (Libra) blockchain project. After Diem was discontinued, Move gained adoption in other blockchain ecosystems, including Sui, which uses it as a core component of its architecture.

Key Technical Features of Move:

• Low-level efficiency: Move offers fine-grained control over memory and execution, ideal for optimizing blockchain performance.

• Resource safety: Its type system enforces strict rules to prevent duplication or accidental deletion of digital assets.

• Bytecode-centric design: Move modules and scripts compile into bytecode executed by the Sui VM, enabling robust, predictable on-chain behavior.

• Parallel execution: Move powers Sui's ability to process transactions in parallel, leveraging its object-based dependency model for high throughput.

• Formal verification: Move Prover, a formal verification tool, allows developers to ensure the correctness and security of smart contracts.

Actionable Tip: Study Move’s open-source documentation and Sui's developer tools to experiment with this cutting-edge language. Familiarize yourself with Move's origins in the Diem project to understand its evolution and potential.

Actionable Overview: This Week’s Key Opportunities

Capitalize on the week’s most promising market opportunities, project launches, and strategies to maximize your returns. Here's where to focus:

• Movement Network Airdrop: Registration deadline is December 2, 2024, at 2:00 PM UTC. Be sure to sign up before the cutoff.

• Superform $PIGGY Airdrop: Claim your rewards by December 25, 2025.

• Swell Network Wavedrop 1 and 2: Check your eligibility and claim to maximize potential benefits.

• Hyperliquid Genesis Event: Scheduled for November 29 at 07:30 UTC. To participate, accept the Genesis Terms and Conditions by November 28 at 23:59 UTC.

• Bitcoin Layer 2 Yield Opportunities: Explore the latest strategies to farm airdrops and earn yield from Bitcoin Layer 2 solutions. Check out this guide to potentially earn up to 50% APR.

• Celsius Second Creditor Payout:
  Celsius is set to distribute $127 million to creditors in its second payout. Stay updated to track recovery timelines.

• dYdX MegaVault:
  Deposit USDC into MegaVault to provide liquidity and earn yield from its advanced market-making strategies and dYdX protocol fees. Current yield is 51% APY, though it may vary.

💡 Pro Tip: Subscribe to Yield Quest for more free insights and strategies designed to help you make money in DeFi.

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Disclaimer:
All information provided in The Yield Quest is for educational purposes only and does not constitute financial advice. DeFi investments carry inherent risks and can lead to capital loss. Do your research and assess your risk tolerance before implementing any strategy.

Stay yield-savvy,
TheYield Quest Team