Web3 AI Daily Review (2024/12/6)

I. Attention Value - Market Highlights

1. Market Trends

(1) Macroeconomic Environment:

l Trump appoints David Sacks as head of White House AI and cryptocurrency affairs

On December 6, Trump announced the appointment of PayPal co-founder David Sacks as the head of White House AI and cryptocurrency affairs. In the statement, Trump indicated that Sacks would work to establish a legal framework to meet the cryptocurrency industry's demand for clarity, thereby promoting its development in the U.S.

David Sacks is a South African-American entrepreneur and investor with over 25 years of successful business experience. He is a general partner at Craft Ventures, a venture capital firm. Public information shows that Craft Ventures has invested in cryptocurrency projects including dYdX, Lightning Labs (the developer of the Lightning Network), Bitcoin financial service provider River Financial, and decentralized domain and certificate authority Handshake.

Sacks' appointment is seen as a continuation of Trump's support for the cryptocurrency industry, suggesting that there may be more policies in the future leaning towards easing regulations on the industry. In this new role, Sacks will be at the forefront of how the federal government adopts and regulates AI technology. With the rapid development of AI technology and its widespread application among consumers, this field brings many benefits but also raises risks concerning national security, privacy, and employment. Sacks' work will significantly influence government policy-making in these critical technology areas.

(2) Web3 Sector:

l BTC experiences violent fluctuations, leading to mass liquidations

Around 6:30 AM Beijing time on December 6, Bitcoin experienced severe volatility after hitting a historical high of nearly $104,000, with prices quickly dropping to around $91,000, resulting in large-scale liquidations in the market. According to Coinglass data, approximately 210,000 investors were liquidated in the past 24 hours, with a total liquidation amount of $720 million across the network, including $615 million in long positions and $104 million in short positions, with liquidations in Bitcoin contract trading alone reaching $447 million. Currently, Bitcoin's price has rebounded to $98,000. This price spike did not affect other altcoins. Additionally, data shows that the funding rate for Binance's Bitcoin USDT contracts reached a record high for this bull market yesterday, peaking at 0.0724%, but recovered to 0.0161% during the rapid decline early this morning.

2. Hot Events

(1) Macroeconomic Environment:

l Investors focus on the potential impact of U.S. non-farm payroll data on the Bitcoin market

Investors are currently closely watching the U.S. non-farm payroll data set to be released on December 6, Eastern Time, which may impact the Federal Reserve's monetary policy and further affect the Bitcoin market. According to analysis by Jag Kooner, head of derivatives at Bitfinex, the market generally expects positive performance from the November non-farm payroll data. If the data is strong, the Federal Reserve may slow down its pace of interest rate cuts, which would strengthen the dollar and exert some pressure on risk assets, including Bitcoin. Nevertheless, market expectations for a rate cut by the Federal Reserve at the December meeting remain tilted towards a cut. Data from the Chicago Mercantile Exchange indicates that the market generally believes there is over a 70% probability of a 25 basis point rate cut in December. Lower interest rates typically stimulate market liquidity, providing support for risk assets, which could have a positive impact on Bitcoin prices.

(2) Web3 Sector:

l Financial Times Alphaville issues apology letter: Reflecting on negative reporting on cryptocurrency

On December 5, the Financial Times' column Alphaville released an "apology letter" in response to its negative reporting on cryptocurrency over the past 14 years. The letter stated that as Bitcoin's price surpassed $100,000, many readers felt they deserved an apology. The letter mentioned:

"Our content may have conveyed that Bitcoin is a negative-sum game, inefficient as a means of value exchange, and that its price is unrelated to any actual utility. We deeply apologize if you missed investment opportunities due to our reporting over the past 14 years, and we are also pleased for your holdings' increase. If you believe our cynical attitude supports traditional finance, we apologize for that as well, as we are equally critical of traditional finance."

Despite this, the apology did not gain recognition from the crypto community, with many considering it a "fake apology." Commentators pointed out that Alphaville still maintains its skeptical stance towards Bitcoin and reiterated its views on Bitcoin's inefficiency as a medium of exchange and its flaws as a store of value in the letter.

3. Hot Narratives

l New trends in the crypto market: AI agents and decentralized science (DeSci) lead the narrative for 2024

On December 6, DWF Labs co-founder Andrei Grachev posted on social media: "AI agents and DeSci seem to be the next hot topics in the market." He emphasized that both are community-driven, scalable, and align with the global enthusiasm for AI and technology. Grachev believes these emerging fields can be launched anywhere without relying on venture capital, making them more flexible and promising.

With the rapid development of AI technology, market attention to its applications is increasing, especially in the cryptocurrency and blockchain sectors. DeSci, as an emerging trend, aims to leverage blockchain technology to improve the transparency and accessibility of scientific research. Grachev's comments reflect an optimistic outlook on the future development of these fields, suggesting they may attract more investors and developers.

Additionally, according to the "Messari Theses 2024" report released by Messari, analysts are also optimistic about the prospects of combining AI with cryptocurrency, believing it will be one of the important investment trends in the future. The report mentions that emerging narratives such as DePIN, DeSoc, and DeSci are gaining increasing attention, indicating that the market is set to welcome new growth points.

II. Attention Value - Hot Projects

1. Project Introduction

l $GOD | AI agent | @god

• GOD has introduced the anti-agent SATAN through Nous Research, significantly increasing participation. This dynamic pairing seems to have rekindled interest among users and investors, and ordinary people are also looking forward to it, so future developments need to be closely monitored.

III. Attention Value - Sector Rotation

1. Hot Sectors

Source: Dune, Dot Labs

Source: Dune, Dot Labs

2. Internal Sector

Source: Dune, Dot Labs