1. Market Trends and Focus

1. Market Trends

macro environment

The US released the November CPI data, tech stocks surged, and the Nasdaq hit a new high.

On December 12, the U.S. Bureau of Labor Statistics released the Consumer Price Index (CPI) data for November. The data shows that the CPI increased by 2.7% year-on-year in November, slightly higher than the 2.6% in October, aligning with market expectations. On a month-on-month basis, the CPI rose by 0.3%, higher than last month's 0.2%, marking the largest increase since April of this year. The core CPI remained at 3.3% year-on-year, and also grew by 0.3% month-on-month, unchanged from the previous value.

This data has boosted market expectations for the Federal Reserve to cut interest rates at next week's meeting, with the probability of a rate cut exceeding 96%. Analysts point out that although inflationary pressures have eased, economic growth continues to show resilience, which has led policymakers to adopt a more open attitude towards stimulating economic growth.

As a result, major U.S. stock indices generally rose. By the close on Wednesday, the Dow Jones Industrial Average fell slightly by 0.2%, the S&P 500 rose by 0.8%, and the Nasdaq surged by 1.77%, breaking through the 20,000 point mark for the first time. Tesla's stock price rose nearly 6%, driving tech giants like Google, Meta, and Amazon to new highs. At the same time, cryptocurrency-related stocks also performed strongly.

Web3 field

The crypto market is warming up, and Bitcoin has returned to $100,000.

Affected by the US CPI data, the overall cryptocurrency market has warmed up. Bitcoin has risen by 4.5%, breaking through the $100,000 mark again, while the price of Ethereum has also surpassed $3,800. Altcoins have generally rebounded, returning to the levels prior to the previous day's decline. Data shows that the net inflow of the US Bitcoin spot ETF reached $223 million that day, with over 970 million USDT flowing from Tether to centralized exchanges within 24 hours. Market trading is active, and bullish sentiment is strong.

In the meme coin sector, cryptocurrencies such as Dogecoin (DOGE), Shiba Inu (SHIB), WIF, BONK, and FLOKI have all risen by over double digits. Additionally, AI concept tokens like NEAR, ICP, and Render have also achieved gains of over 10%, indicating the market's ongoing interest in emerging sectors.

2. Hot Events

Macroeconomic Environment

Brian Quintenz may become a candidate for CFTC chairman, potentially impacting future cryptocurrency regulatory policies.

Former Republican CFTC Commissioner Brian Quintenz is expected to become a leading candidate for the chairmanship of the Commodity Futures Trading Commission (CFTC), which could signal a significant shift in future cryptocurrency regulatory policy. Reportedly, Quintenz has interviewed for the position, and he is currently responsible for policy affairs in the digital assets division of a venture capital firm. Although the relevant parties have not yet officially responded to this news, it has already attracted widespread attention in the market.

Web3 field

Nature reported: Scientists earn substantial income from cryptocurrency peer review of papers.

The globally renowned scientific journal Nature recently reported on the innovative model of the decentralized science (DeSci) project ResearchHub. The platform incentivizes academic peer review through its native token RSC, with each paper review earning approximately $150 worth of tokens as a reward. The report mentioned that this model provides additional economic opportunities for some researchers. For example, a molecular biology consultant stated that the income he earned by reviewing papers for ResearchHub has already exceeded his salary when he was a professor at an academic institution.

After the announcement of the news, the price of the RSC token surged significantly. Data shows that RSC skyrocketed by 22.7% within 24 hours, reaching a high of $1.04.

3. Hot Topics

Decentralized Science (DeSci) has once again attracted attention: opportunities and challenges coexist.

Recently, decentralized science (DeSci) has become a hot topic in the crypto industry. Search data shows that this keyword reached its peak search popularity in five years at the end of November. DeSci is actively addressing fundamental challenges faced by the traditional scientific field, such as funding shortages, data sharing, and collaboration. Its application scope has expanded to various specific areas, including advancing research, reducing the cost of genetic testing, and treating hair loss.

With the rise of related tokens, DeSci has attracted significant attention and investment from numerous investors, but it also faces some skepticism. However, with the report by Nature on ResearchHub, this field has once again captured people's attention. Currently, the total market capitalization of industry-leading DeSci tokens has exceeded $1.2 billion, demonstrating the enormous development potential and market recognition of this sector.

II. Focus on Hot Projects

$arc Project Introduction

• Building Rig, a Rust library for creating scalable, modular, and ergonomically designed LLM-driven applications.
• $arc is the token of the founder of the rig framework.
• Built on Rust, natively from a public blockchain, it has very suitable speed, scalability, and security.
• Roadmap:

1. Multi-Agent System
2. Agents for specific platforms (such as discord, tg, notion, slack, etc.)
3. Agents with on-chain operational capabilities
4. Proxy used for reading on-chain data
5. Integration with other proxy (depin) networks
6. Educational content to help developers better understand their platform.

3. Sector Rotation Analysis

Due to the inability to directly display the image, the following is a textual description of sector rotation:

According to the data, the various sectors of the cryptocurrency market have shown mixed performance recently. Among them, the DeFi, Layer 1, and Layer 2 sectors have performed relatively well, showing an upward trend. The GameFi and NFT sectors have remained relatively stable. In terms of specific projects, certain tokens in the DeFi sector have increased significantly, while mainstream projects in Layer 1 and Layer 2 have also performed well.

Overall, the market shows certain rotation characteristics, with investors' attention shifting to different sectors. It is recommended that investors closely monitor market trends and adjust their investment strategies accordingly.