Web3 AI Daily Review (2025/1/2)

I. Attention Value - Market Highlights

1. Market Conditions

(1) Macroeconomic Environment:
l Goldman Sachs lowers Fed rate cut forecast; significant trend of falling inflation
Goldman Sachs has adjusted its forecast for Federal Reserve rate cuts, lowering the expectation for cuts this year from 100 basis points to 75 basis points, and noted that reports about a rebound in core inflation have been exaggerated. According to the report, the annualized increase in core Personal Consumption Expenditures (PCE) inflation from September to November last year was 2.5%, slightly higher than the previous three months' 2.3%, but still below the year-on-year increase of 2.8%, indicating a continued trend of falling inflation. Additionally, the revised average PCE inflation data from the Dallas Fed shows that the annualized PCE inflation from September to November last year was 2.4%, while the inflation rate in November last year was 1.8%. As the labor market gradually tightens, the annual wage growth rate has slowed to 3.9%, within the range of 3.5% to 4%. If productivity growth in the coming years is between 1.5% and 2%, this would align with the 2% inflation target.
(2) Web3 Sector:
l IRS delays cryptocurrency tax reporting rules until the end of 2025
The IRS has postponed the implementation of cryptocurrency tax reporting rules until December 31, 2025, to provide brokers with more time to adapt amid legal and regulatory challenges. According to reports, the IRS has also issued a temporary relief measure expected to benefit cryptocurrency holders on centralized finance (CeFi) trading platforms in 2025. The new rules require the use of a first-in, first-out (FIFO) accounting method for crypto assets starting January 1, 2025, unless other methods such as highest-in, first-out (HIFO) or specific identification (Spec ID) are chosen.

2. Hot Events

(1) Macroeconomic Environment:
l Syrian NGO proposes a Bitcoin-based banking system to promote economic reconstruction
A Syrian NGO has called on the new government to consider establishing a banking system based on the Bitcoin network and related technologies. The Syrian Center for Economic Research (SCER) stated in its policy proposal that such a system is crucial for accelerating national reconstruction and protecting the public from the impacts of inflation and currency devaluation. This proposal, referred to as the "Syrian Bitcoin Policy," aims to provide new solutions for the economically distressed country. Since taking office in December 2024, newly elected President Ahmed al-Sharaa has been seeking international recognition to secure reconstruction funding. SCER emphasized that the government should establish a comprehensive regulatory framework to legitimize the trading and mining of Bitcoin and other digital assets, thereby promoting Syria's economic recovery. Additionally, the proposal suggests digitizing the Syrian pound and considering backing it with assets including the US dollar and Bitcoin.
(2) Web3 Sector:
l Ethereum News Weekly announces shutdown, citing lack of support and sustainable business model
Evan Van Ness, founder of Ethereum News Weekly (WiE), announced on social media that WiE will officially cease operations on January 1, 2025. He stated that this decision stemmed from a conversation with the leadership of the Ethereum Foundation (EF), which indicated that EF's perception of WiE's value had significantly diminished, providing only symbolic financial support in 2024. With EF choosing to completely cut off this negligible support, WiE's operations will also come to an end. Van Ness mentioned that although there was an opportunity to continue operations through fundraising, he preferred to focus on other meaningful projects. He also pointed out that WiE failed to find a sustainable business model, as advertising and sponsorship revenues were insufficient. Furthermore, he highlighted issues within the Ethereum ecosystem, noting an excessive focus on code development and research while neglecting other important contributions.

3. Hot Narratives
l Elon Musk renames himself "Kekius Maximus," causing fluctuations in the cryptocurrency market; KEKIUS token price soars and plummets
A few days ago, billionaire Elon Musk changed his account name on social media platform X to "Kekius Maximus" and used a PEPE frog as his avatar, drawing attention from the online community. However, he has recently reverted the account name back to "Elon Musk" and changed the avatar back to his personal photo. On December 31, Musk's action surprised many, especially his choice of the name "Kekius Maximus," which is closely related to internet culture and the popular PEPE frog image, and contains the Latin word "Maximus," meaning "the greatest," reflecting the exaggerated style common in meme culture. Musk's renaming had a significant impact on the cryptocurrency market, particularly on the KEKIUS token, which saw its price skyrocket in a short period. Although Musk did not directly mention any relationship with the KEKIUS token, his social media activities often have a strong influence on the cryptocurrency market. After his name change, the price of the KEKIUS token dropped to a quarter of its peak level from the previous day, indicating that the market is highly sensitive to his movements.

II. Attention Value - Hot Projects

1. Project Introduction
l $T3AI | AI | @trustInWeb3
- A DeFi network protocol integrated with AI, built using @sendaifun's Solana Agent tool.
- Narrative: To address the issue of over-collateralization in loans within the DeFi ecosystem, which limits leveraged investments and asset utilization, the T3 project introduces a dedicated AI agent as a trusted intermediary. Through dynamic risk management algorithms, it ensures the repayability of loans while allowing users to freely invest, trade, or stake on-chain, achieving higher capital returns.
- T3's token distribution allocates 90.5% for free circulation and 9.5% for development rewards and community activities, of which 0.175% has been sold to cover infrastructure costs as of January 1, 2025. Additionally, 0.3% of the loans will be treated as revenue, with 80% of the revenue used for buybacks, and 10% of the loans paid in $T3AI tokens, with the remaining 90% paid in SOL or USDC.
- The project experienced a price surge in a short period, with the development team conducting a large-scale sell-off at 4 AM (0.175% of holdings used for infrastructure development).

III. Attention Value - Sector Rotation

1. Hot Sectors

Source: Dune, Dot Labs

Source: Dune, Dot Labs
2. Internal Sector

Source: Dune, Dot Labs