TLDR CRYPTO 2024-11-28

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BITCOIN BULLS LOSE STEAM, AUSSIE-YEN DIPS, HINTING AT BROAD-BASED RISK AVERSION AHEAD

Bitcoin's momentum has stalled near $100,000 as traditional market risk indicators flash warning signals, particularly visible in the weakening AUD/JPY pair amid growing speculation of a December Bank of Japan rate hike. The market setup bears striking similarities to the July-August period when the yen strengthening triggered widespread deleveraging, pushing Bitcoin from $70,000 to $50,000. The combination of potential BOJ tightening, Federal Reserve policy uncertainty, and resurging trade war concerns suggest increased downside risk of Bitcoin in the short term.

BRAZILIAN LAWMAKER PROPOSES NATIONAL BITCOIN RESERVE TO HEDGE ECONOMIC RISKS

A Brazilian lawmaker has proposed a bill to create a national bitcoin reserve. It will allocate up to 5% of Brazil's international reserves to hedge against economic and geopolitical risks. The bill marks another step in the growing trend of nation-states embracing Bitcoin.

GAME - ENABLING AGENT-TO-AGENT INTERACTIONS

Virtuals Protocol's GAME framework enables autonomous agent interactions and sophisticated actions. The initial demo was shown in a Roblox game, but the architecture extends far beyond gaming environments. GAME aims to become the open communication standard for the Agentverse. Virtuals plans for the standard to allow for agent-to-agent interactions, transactions, and coordination at scale by combining working and long-term memory components with high and low-level planners to enable complex behaviors.

VECTOR LAUNCH

Meme trading app VECTOR has officially launched on Apple and Google Play, offering an exclusive, invite-only experience through access codes. The platform is generating buzz with ongoing code drops, fueling excitement among traders eager to participate in its unique trading ecosystem.

DAVID AND GOLIATH: HOW WEB3 CAN COMPETE IN AI

Web3 protocols are positioning themselves to compete in AI by targeting specific niches rather than challenging web2 giants head-on in foundation model development, with a focus on providing compute resources for mid-tier and bespoke models. The strategy leverages Web3's strengths in censorship resistance, transparency, and social verifiability, particularly in areas where decentralized networks offer value. Centralized giants dominate cutting-edge hardware and foundation models, but Web3 protocols can still provide unique value in overlooked areas and pave the way for a more diverse and open AI ecosystem.

WHY DECENTRALISED COMPUTE MATTERS

The AI infrastructure landscape has grown exponentially as the race to artificial superintelligence heats up, with major players investing billions in specialized data centers. Though centralized training is more efficient, decentralized compute networks are well-positioned to serve three key market segments: training of smaller specialized models, fine-tuning existing models, and inference workloads requiring distribution and redundancy. Going forward, permissionless alternatives may become essential infrastructure for ensuring open access to AI capabilities as the technology becomes increasingly fundamental to society.

FLUID: THE NEXT ZERO-TO-ONE INNOVATION IN DEFI

By combining smart collateral, which allows users to earn lending interest and trading fees on deposited assets, and smart debt, which transforms borrowed assets into productive liquidity, Fluid has become a legitimate competitor to blue-chip DeFi protocols. It is able to achieve unprecedented capital efficiency on its DEX, generating up to $39 in liquidity for every $1 deposited, while offering high loan-to-value ratios of 95%. Fluid has rapidly grown to be a top-5 DEX on Ethereum by volume with organic yields up to 51% APY without incentives.

DEEP DIVING INTO BASE STABLECOIN VOLUMES

Base's daily stablecoin transfer volume has skyrocketed to $15B, driven largely by sophisticated market-making strategies on the Aerodrome DEX, with some addresses generating billions in daily transfer volume through advanced liquidity management and leverage techniques. This activity boosts liquidity and reduces slippage for traders, signaling growth across Base's stablecoin ecosystem and driving broader adoption beyond isolated DEX activity.

EXPLAINING THE PANTERA BITCOIN FUND

In 2013, Pantera CEO Dan Morehead launched the Bitcoin Fund based on the belief that Bitcoin's price was poised for significant long-term growth, acquiring 2% of the global supply. He remains similarly optimistic today about its future returns.

TETHER DISCONTINUES SUPPORT FOR EURO-PEGGED STABLECOIN EURT

Tether has announced it will discontinue support for its euro-pegged stablecoin EURt, citing evolving European regulatory frameworks like MiCA.

CRYPTO ENTERING ITS CONVENIENCE ERA

The crypto industry is entering a convenience-driven phase where successful apps must offer native mobile access via app stores, seamless wallet creation during sign-in, and diverse funding options like Apple Pay, Coinbase, and credit cards.

LOOKING FOR GOOD TRADES

Identify good trades by focusing on novelty, trade type, catalysts, risk/reward management, holder distribution, relative strength, and leveraging tools and smart followers.

BITWISE FILES FOR 10-CRYPTO ETF WITH SEC

Bitwise has filed a 10-crypto index ETF with the SEC, including assets like Bitcoin, Ethereum, Solana, Uniswap and Avalanche.