💡 Welcome back to DV Chain's Weekly Market Commentary! Over the Thanksgiving break, Hyperliquid launched its highly anticipated $HYPE token, now valued at $7.5B FDV, with one of the largest airdrops to date. Ethereum led the market last week, flipping IBIT in ETF inflows and outperforming BTC and SOL, while XRP surpassed SOL in market cap. Meanwhile, significant announcements like Hong Kong's plan for zero crypto taxes and MicroStrategy's latest $1.5B BTC purchase are shaping the market narrative. Dive in for more insights and key upcoming catalysts.
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Market Recap
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• Hyperliquid released their token $HYPE over thanksgiving break, now trading at $7.5B FDV
  

• One of the largest airdrops, now valued at 2.5B given out to users
  

• ETHA flips IBIT in inflows last Friday for the first timesome text
  • ETHA +250mm inflows vs IBIT +137
  • ETH led majors higher last week, outperforming BTC and SOL
    
    
• XRP flipped SOL in market cap
  
  
• the USG moved $960m of BTC to Coinbase Prime this morning
  
  
• Microstrategy announced they purchased another $1.5B of BTC over the past week
  

• BTC dominance coming off as altcoins rally

• Hong Kong set to announce 0 taxes on crypto
  
  
• Celsius distributes $127mm to creditors
  
  
• World Liberty Financial, the Trump family’s DeFi project, has been taking the stables raised from their sale and purchasing BTC and ETH
  
  
• $JTO $450mm token unlock on 12/7

• CZ calls for rotation from memes to utility
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Upcoming Catalysts
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• $ETH
  • The ETF has been a non factor since the launch and has been a big underperformer this year for that reason, but in the 4 trading days post election we’ve seen that change
  • Future flows aren’t priced in yet, which has been the biggest driver of the cycle
    
    
• $LDO
  • DeFi as a sector is going to benefit from the shift in regulatory environment
  • LDO fundamentally is a very strong project, clipping almost $150m in fees on an annualized basis to its treasury
  • It has maintained majority of market share in the LST/LRT space, despite higher temporary yields in new competitor’s liquidity bootstrapping farms
  • From an institutional standpoint, it is much stronger than competitors in terms of safety and network effects. The Lido Dao’s roadmap prioritizes institutional adoption, which we think is an astute plan, given the recent interest in crypto and tokenization from Wall Street
  • It’s likely a Staked ETH etf will be coming under the Trump admin
  • Fee switch likely incoming
  • Consensys lawsuit thrown out
    
    
• $JTO
  • Along with $LDO, one of the most profitable protocols in the space (see graphic below)
  • Earnings $2-3mm a day in revenue from MEV tips
  • Fee switch likely incoming
  • Benefits from memecoin mania
  • Look towards the upcoming unlock for an entry

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• FTX creditor distributions in Q4 ‘24 - Q1 ‘25

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