Bitget Daily Digest | Messari predicts AI agents to peak in Q1 2025, and Layer 2 was the only sector to record a negative return in 2024
Market highlights
1. Elon Musk changed his X avatar to a Pepe the Frog image and his profile name to "Kekius Maximus", sparking a significant increase in $KM and $KEKIUS. This morning, he reverted his name to "Elon Musk," leading to a sharp decline in the related tokens.
2. $ai16z and $VIRTUAL showed impressive performance, leading continuous growth of other tokens in the ecosystem, where $AIXBT, $GAME, $SPORE, and $Swarm stood out. Market interest in AI agents and multi-agent collaboration frameworks remains strong, with a noticeable influx of funds into the sector. This momentum is expected to persist in the short term.
3. Messari released six major predictions for 2025: Hyperliquid’s outstanding performance may have ended. $VIRTUAL FDV is expected to surpass $TAO FDV within three months. Pudgy Penguins will overtake CryptoPunks to become the hottest PFP series. Peaq is predicted to surpass all L2s in 2025. ETH is anticipated to outperform SOL in 2025. The AI agent framework will peak in the first quarter of 2025 but may not recover afterward.
4. According to CoinGecko, the top crypto narratives in 2024 recorded vastly different returns, ranging from -20.7% to an impressive +2939.8%. Among them, Layer 2 was the only narrative to record a negative return this year, with a decline of 20.7%. Despite a growing trend of projects seeking to launch their own Layer 2 solutions, seven out of the ten largest Layer 2 tokens recorded price decreases ranging from 6.3% to 75.3%, diverging significantly from expectations.
Market overview
1. Bitcoin is experiencing significant short-term fluctuations, with an upward trend across the market. The AI agent sector saw impressive gains, with $AGLD and $ALCH leading the rise.
2. U.S. stock markets remain closed.
3. Currently standing at 94,653 USDT, Bitcoin is in a potential liquidation zone. A 1000-point drop to around 93,653 USDT could trigger over $190 million in cumulative long-position liquidations. Conversely, a rise to 95,653 USDT could lead to more than $535 million in cumulative short-position liquidations. With short liquidation volumes far surpassing long positions, it's advisable to manage leverage carefully to avoid large-scale liquidations.
4. Over the past 24 hours, BTC saw $1.549 billion in inflows and $1.538 billion in outflows, resulting in a net inflow of $11 million.
5. Over the past 24 hours, $BTC, $XRP, $XLM, $HBAR, and $VIRTUAL have led in net inflows in futures trading, signaling potential trading opportunities.
6. Latest data shows that U.S. BTC spot ETFs recorded a single-day inflow of $5.3181 million, with total cumulative inflows of $35.246 billion, and total holdings standing at $105.402 billion. In contrast, ETH spot ETFs saw a single-day inflow of $35.9324 million, bringing cumulative inflows to $2.658 billion, with total holdings at $12.117 billion. Both ETFs recorded inflows compared to the previous day.
Highlights on X
1. 0xSun: The Rise and paradigm shift of on-chain tokens in 2025
PumpFun has reshaped the way of tokens are launched with its low barriers and contract security, driving the rise of the AI agent sector. Unlike the fierce competition of traditional memecoins, AI agent tokens are spearheading new narratives, applications, and funding efforts. Projects like Virtuals and ai16z have achieved market caps in the billions without support from top exchanges. This could signal a paradigm shift, with DEX token launches moving away from CEX-backed launches toward an on-chain ecosystem, fostering a bottom-up transformation.
X post: https://x.com/0xSunNFT/status/1874369196022485432
2. Colin Wu: Key market drivers – Trump’s policies and Fed pivot
The first half of 2025 will continue to be bullish, driven by the prospect of Trump's pro-crypto policies and the end of the Federal Reserve's rate cuts. Trump's pro-crypto cabinet, with many members holding crypto assets, could amplify market optimism. Personal involvement by Donald Trump and Elon Musk might position them as top influencers in the crypto space. Key policy highlights include the establishment of Bitcoin reserves, a shift in SEC enforcement, and an exemption for CZ—each with the potential to inject new vitality into the market. However, market trends in the second half of the year may be affected by the Federal Reserve's decision to halt interest rate cuts and concerns over ongoing political and economic tensions. Therefore, it remains essential to stay vigilant.
X post: https://x.com/WutalkWu/status/1874314986883039432
3. @0x_JBCat: Preliminary review of meme agent projects in the Solana AI Hackathon
The author evaluated a group of projects in the meme agent segment of the Solana AI Hackathon, summarizing each project in one sentence and providing subjective ratings based on a scoring system (with a maximum of 5 stars). The projects demonstrate the Solana ecosystem's keen grasp of the AI narrative.
X post: https://x.com/0x_JBCat/status/1874272681140658224
4. @HaywarZhu: The essential difference between AI and DeFi bull markets
The AI bull market of 2024–2025 differs significantly from the DeFi bull market of 2020–2021. In the AI sector, winners change with each round, while holders of leading DeFi coins can benefit from long-term investments. Unlike DeFi, which relies on crypto adoption, the AI bull market is driven by technological advancements and capital inflow, making future winners unpredictable. While the outlook is positive, AI innovation is less complex than DeFi, so dynamic adjustment strategies and profit-taking will be more important than simply holding long-term.
X post: https://x.com/HaywarZhu/status/1874283502482710936
Institutional insights
1.Galaxy Ventures: The crypto MA market is expected to recover this year, with a focus on stablecoins and payments.
Read the full article here: https://www.theblock.co/post/331775/crypto-ma-deals-2025-outlook-vcs
2.Matrixport: Ethereum may need a more attractive narrative from ETF issuers to boost prices in 2025
X post: https://x.com/Matrixport_CN/status/1874349843281289500
3.Messari: Hyperliquid's exceptional performance may have peaked, and the AI agent framework is expected to reach its peak in Q1
X post: https://x.com/MessariCrypto/status/1874160121724752022
News updates
1. Australian Treasurer: Cryptocurrencies will help drive the modernization of Australia's financial system.
2. Africa supports 3% of global Bitcoin mining power through renewable energy.
3. Syria proposes legalizing Bitcoin to promote economic recovery.
4. Russia bans crypto mining in ten regions of the country.
Project updates
1. Drift, the Solana-based on-chain trading platform, plans to offer its Season 2 airdrop in May this year.
2. ai16z founder: Twitter Spaces has been fully integrated into Eliza.
3. Cardano founder: Will push for the transition to the Age of Voltaire and seek Foundation approval for the budget and charter.
4. Usual: Responds to USD0 depeg incident; the peg was caused by a large-scale sell-off by a whale and has since been restored.
5. OpenSea CEO: OS2 beta enters final stage.
6. SHIB developer: Reveals final details of the ecosystem token TREAT—to incentivize users to support "Network State".
7. Robinhood hints at offering crypto rewards to eligible users.
8. Magic Eden co-founder: Releases annual recap, noting that token trading now accounts for 30% of revenue and they are ready for 2025.
9. Sonic SVM: Announces tokenomics, with 57% allocated to the community.
10. SPACE ID: Unveils its 2025 roadmap, focusing on simplifying the on-chain transaction process.
Recommended reads
With the New Year approaching, will three key catalysts drive a strong market rebound in January?
Is the bull market really over? What can we expect from the market in January, and why is this month promising?
Read the full article here: https://www.bitgetapps.com/zh-CN/news/detail/12560604464034
2024 performance of 22 mainstream public chains: Half decline, with Hyperliquid ranking first in several metrics
Which public chains experienced a rise in 2024? Which ones saw declines that should not be mistaken for undervaluation, but rather genuine downturns?
Read the full article here: https://www.bitgetapps.com/zh-CN/news/detail/12560604463668
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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