gate Research Institute: BTC pulled back more than 5% from its high, while ETH showed strong performance, with MicroStrategy increasing its holdings by 55,500 BTC

Abstract

• BTC has seen a significant pullback from its high point, dropping below $92,000 at one point and experiencing a 4.98% decline in the past 24 hours.
• ETH is showing strength, repeatedly hitting the resistance level of $3,500, with a 24-hour pump of 1.60%.
• PUFFER single-day increase exceeded 37%, leading the zone of altcoins.
• The supply of USDT on the Ethereum network has surpassed that of the Tron network for the first time since June 2022.
• The UK Financial Conduct Authority plans to implement a Cryptocurrency regulatory framework by 2026.
• MicroStrategy invested $5.4 billion to increase its holdings of 55,500 BTC, and the total holdings exceeded 380,000 coins.

Market Commentary

According to gate market data, as of 4:00 on November 26th (UTC+0)【1】:

• BTC - The BTC price has fallen by 4.98% in the past 24 hours, with the current price at $93,023 and the highest price in the past 24 hours at $98,855, and the lowest price at $92,607. Starting from 14:00 on November 26th (UTC+0), the BTC price has been declining, breaking through the key support level of $95,000 and the rising trend since November 12th, presenting a short positions trend. The strong support level below is at $85,000, with the short-term support level at $92,500. If the price continues to decline, it may test this key support area; otherwise, if there is a Rebound, the price may once again attempt to challenge the resistance level of $95,000.

• ETH - ETH price pumped 1.60% in the past 24 hours, currently at $3,415 with a 24-hour high of $3,546 and a low of $3,301. Despite the downward pressure from BTC, ETH has remained relatively strong, repeatedly testing the resistance level at $3,500 but has not yet broken through. If it can surpass this resistance level, further upward movement may occur. If BTC continues to decline, it may impact the trend of ETH, however, ETH itself also has potential for a rebound, especially when reaching strong support levels such as the range of $3,260 and $3,030.

• ETF - On November 25th, the net outflow of BTC ETF in the United States exceeded $438 million, while ETH ETF had a net inflow of $2.83 million.【2】
• AltCoin - Liquid Staking Governance Tokens, Lending/Borrowing, Restaking, etc. pumped 4.1%, 3.9%, 3.8% respectively in different zones.【3】
• US Stock Market Three Major Indexes - S&P 500 Index pump 0.30%, Nasdaq Index pump 0.27%, Dow Jones Index pump 0.99%.【4】
• Spot Gold - Spot gold prices fell 0.51% to $2,612 per ounce. [5]
• Fear and Greed Index - The Fear and Greed Index dropped from 82 yesterday to 79, indicating that the market is still extremely greedy, but the greed sentiment has weakened. [6]

Popular Token

According to gate market data【7】, combined with the volume and price performance in the past 24 hours, the following popular altcoins are:

**PUFFER - The daily increase is about 37.2%, with a circulating market value of $41.55 million. Puffer is a Decentralization platform aimed at enhancing the scalability and security of the ETH network through innovative re-collateralization and roll-up solutions. Puffer’s collaborative product suite includes Liquidity Re-collateralization (LRT), roll-up and re-collateralization validators, AVS, and UniFi-supported pre-confirmation AVS. Based on the aggregation stack, it solves the liquidity fragmentation problem on the ETH network while providing instant Settlement and 100 millisecond transactions.

Recently, the news of PUFFER listing on a new centralized exchange has attracted widespread attention or follow, which has led to the pump of PUFFER Token. 【8】

**MORPHO - The single-day increase is about 36.3%, with a market capitalization of $118 million. Morpho is an open, efficient, and flexible platform that allows anyone to earn income and borrow assets. Lenders can use Morpho Vaults to earn money on Morpho, which is an easy-to-use non-custodial lending pool that optimizes the returns for depositors. Borrowers can borrow any asset directly from Morpho Markets.

Recently, Morpho integrated with the Superlend platform, adding the Morpho Markets feature. Users can easily compare the Intrerest Rates of Morpho, Aave, Compound, and Fluid Vaults, and track Morpho Holdings in the investment portfolio section. This update improves platform accessibility and may drive market demand and price pump. [9]

**ZRC - The single-day increase is about 35.3%, with a fully circulating market value of $6.85 billion.

Zircuit ($ZRC) is an Ethereum Virtual Machine (EVM) compatible zero-knowledge aggregation aimed at providing a faster and more secure blockchain transaction processing method.

Recently, ZRC has opened trading and equity staking pools for $ZRC Token on Gate.io, and the encryption community has also participated on a large scale. Many other well-known trading platforms have also joined. The Token price has pumped over 34% in the past 24 hours, and the current trading price is approximately $0.06725, with a capital inflow of $6.51M.

Highlights Data

Last week, net inflows into Cryptocurrency investment products reached $31.3 billion, hitting a record high. According to the latest report from CoinShares, the encryption asset investment products saw a record inflow of funds last week, totaling $3.13 billion, pushing the total inflow of funds to $37 billion since 2024, reaching a historical high. BTC investment products had the highest inflow, reaching $3 billion. In addition, despite the new high of BTC price, shortsBTC products also saw an inflow of $10 million. Solana outperformed Ethereum, attracting $16 million in funds, while Ethereum only had an inflow of $2.8 million. Although there was a significant inflow of funds in the US market, there was an outflow of funds in Germany, Sweden, Switzerland, and other regions, reflecting investors’ profit-taking during the price hike.

This data reflects that BTC and some mainstream Cryptocurrency are still the focus of investors’ follow. Altcoins such as Solana have shown strong market demand, but still lag behind Ethereum. Although profit-taking in some markets has led to outflows, the overall market sentiment indicates that encryption assets are still in a favorable position to attract funds. [10]

Today’s on-chain fund flows: Solana net inflow of $15 million, Ether net outflow of $18.4 million According to Artemis data, Solana saw a net inflow of $15 million today, while Base saw a net inflow of $3.7 million and Starknet saw a net inflow of $1.6 million. In contrast, Ethereum experienced a net outflow of $18.4 million. This phenomenon reflects the changing investment preferences in the market for different blockchains. Solana has recently attracted a large amount of capital, partly due to the surge in demand for stablecoins, especially USDC and USDT, which has made its ecosystem more active. In addition, Solana has seen a significant increase in volume in the field of Decentralized Finance (DeFi), with record-breaking weekly volume, demonstrating its competitiveness in the market. Meanwhile, the outflow from Ethereum may be related to increased investor interest in Layer 2 solutions, which has led some funds to shift towards other more attractive on-chain projects. [11]

Taiko TVL breaks through $370 million, reaching a new all-time high According to DefiLlama data, Taiko’s total Lock-up Position value (TVL) exceeded USD 370 million on November 25, reaching a historical high with a rise of over 4200% within the month. This significant rise is mainly attributed to the strong performance of its Decentralized Finance (DeFi) protocol, especially TakoTako and iZiSwap, both of which have a TVL of over USD 50 million with a monthly rise of nearly 3000%. In addition, the daily trading volume on the Taiko network has reached USD 1.65 million, demonstrating the widespread adoption of its infrastructure. With the increasing demand for Ethereum’s scalability, Taiko has attracted a large number of investors and developers with its efficient and low-cost trading advantages.

The supply of USDT on the Ethereum network exceeds that of the Tron network for the first time since June 2022 As of November 26th, the USDT supply on the Ethereum network has reached 66.936 billion, surpassing Tron’s 61.77 billion for the first time since June 2022. This year, the USDT supply on the Ethereum network has risen by nearly 62%, while that on the Tron network has increased by 24.4%.

The rapid rise in the supply of USDT on the Ethereum network is mainly driven by the market sentiment warming up. BTC is approaching historical highs recently, and the strong expectations of the market for the approval of the SpotBTC ETF have attracted a large influx of institutional funds. In addition, Ethereum, as the leading chain of Decentralized Finance, has significant advantages in institutional adoption and stablecoin liquidity. On the other hand, the Tron network maintains its competitiveness in the field of cross-border payments with low money laundering and high transaction speed. Both have their own strengths, reflecting market preferences in different application scenarios. [13]

Hotspot Comments

The UK Financial Conduct Authority plans to implement a cryptocurrency regulatory framework in 2026. On November 26, the Financial Conduct Authority (FCA) of the United Kingdom recently released the regulatory roadmap for Crypto Assets, planning to officially implement a comprehensive regulatory framework for Crypto Assets in 2026. Earlier, FCA announced that it will issue a discussion paper on market abuse and disclosure issues by the end of this year, and plans to introduce policy papers covering key areas such as stablecoins, trading platforms, stake, encryption asset exposure, and lending in early 2024.

In recent years, the encryption asset market in the UK has continued to expand. Data shows that there are approximately 7 million adults in the UK holding encryption assets, accounting for a considerable proportion of the adult population. Compared to two years ago, this number has risen by 4%, indicating a continuous rise in public interest in encryption assets. UK Economic Secretary to the Treasury Tulip Sidiq has also confirmed earlier that the government will propose a regulatory draft on cryptocurrencies and stablecoins early next year to further improve the policy framework.

The FCA’s roadmap shows that the UK is accelerating its regulatory layout for the encryption industry. This move aims not only to standardize market behavior and protect investor interests, but also to set a benchmark for global encryption regulation in the UK. With the gradual introduction of policies, the industry may face higher transparency and compliance requirements. This is both a challenge and an opportunity for trading platforms and related projects to enhance trust and market position. However, how to balance the relationship between regulation and innovation will be a key test of the success of the policy.

MicroStrategy invests $5.4 billion to increase holdings by 55,500 BTC, total holdings exceed 380,000 coins MicroStrategy recently announced that between November 18th and 24th, it acquired about 55,500 BTC at a price of about 5.4 billion US dollars, with an average price of 97,862 US dollars per BTC. This acquisition increased MicroStrategy’s BTC holdings to 386,700, with a total value of about 21.9 billion US dollars, and an average purchase price of 56,761 US dollars per BTC. This transaction took place after MicroStrategy successfully issued 3 billion US dollars of convertible bonds last week. The nominal Intrerest Rate of this issuance was 0, with a conversion price of 672.4 US dollars, raising a net amount of 2.97 billion US dollars.

MicroStrategy’s continued increase in BTC holdings reflects its strong confidence in the long-term value of BTC, especially in the context of further expanding cryptocurrency investments through convertible bond financing. According to MicroStrategy’s founder Michael Saylor’s tweet, the company has achieved a quarterly return rate of approximately 35.2% and a year-to-date return rate of 59.3% in BTC in 2024, demonstrating positive returns on BTC investments. However, MicroStrategy’s high leverage operations have also attracted market attention to its financial risks, especially in the volatile cryptocurrency market. Overall, MicroStrategy’s strategy of expanding BTC holdings helps enhance its market position in the cryptocurrency field, but it also increases the company’s financial risks, which investors should follow.

Avalanche 9000 Testnet launched, providing developers with $40 million in rewards According to the announcement on November 25th, Avalanche9000 is now live on the Fuji testnet and is expected to launch on the Mainnet in the coming months. This upgrade will drop deployment costs by 99.9%, enable cross-chain communication, and unlock over $40 million in incentives for developers. The upgrade is based on technical improvements from the Etna upgrade and community proposals ACP-77 and ACP-125. One of the main changes is the renaming of Avalanche subnet, now referred to as Layer 1.

According to Avalanche, this transformation does not change the operation of its subnet, which still allows horizontal scalability instead of creating complex dependencies on custom blockchains. Avalanche’s L1 network will operate as a permissionless or permissioned network, with each network providing different levels of validator participation and reward control. In addition, validators of the subnet no longer need to stake 2,000 Avalanche AVAX Tokens and synchronize with the Avalanche main network. Instead, they will now be paid ongoing fees based on the number of validators. According to the network, this fixed fee per second will bring significant cost savings to validators.

Financing Information

According to RootData, there were 3 projects that announced funding in the past 24 hours, with the highest funding amount of $10 million. The total funding exceeded $14 million, involving Decentralized Finance and gaming zones. The following are the top three funding sizes: [17]

**Kernel **—— Kernel has completed a $10 million financing round, with participation from SCB Limited, Laser Digital, Bankless Ventures, Hypersphere, and other companies. Kernel has a comprehensive Decentralized Finance product portfolio, including cross-chain interaction trap infrastructure Kernel for staking, Liquidity trap protocol Kelp on the Ethereum network, and RWA Tokenization Yield protocol Gain. The KERNEL Token will serve as the core governance token for these products, connecting different protocols to achieve ecosystem synergy.

OpenTrade - OpenTrade has completed a $4 million expansion seed round of financing, led by AlbionVC with participation from a16z Crypto and CMCC Global. Built on Circle’s payment and Decentralized Finance infrastructure, OpenTrade enables regulated asset management companies to create on-chain lending products with sustainable returns. They can deposit USDC or EURC into on-chain treasuries with certain investment criteria and target returns.

Qooverse - Qooverse has completed a Pre-seed financing round with an undisclosed amount, with participation from Paper Ventures, Animoca Brands, and others. Qooverse is a Web3 game studio founded by senior professionals from Tencent and Goldman Sachs. Qooverse’s mission is to redefine the interaction between the world and social games, bringing gamified social experiences through the power of blockchain and integration with social media Depth. Qoomon is a fast-paced card game where players can earn rewards through victories.

Airdrop opportunity

WORLD3 —— WORLD3 is an AI-driven multichain metaverse connecting Bitcoin and Turing-complete blockchains, offering immersive 2D and 3D gaming experiences, with a funding of $5.5 million. Recently launched activities allow players to earn points and USDC through Mining mini-games. The event will end on December 11, 2024, and participants also have the opportunity to receive Airdrop rewards expected to be distributed in Q1 2025.【18】

Participation Method:

1. Click the link to bind Wallet and email. 【19】
2. Find the BASE Miner Campaign and click to enter.
3. Complete the social task according to the prompts and claim the Pass.
4. Click on the last task to enter the Mining page, double-click on the block to start Mining, click ‘Roll Up’ after completing 10 blocks to synchronize progress and confirm Wallet transactions, and the reward window will display the rewards obtained (points, USDC, etc.).
5. Click the dragon icon at the bottom right of the page to access the task page, check rankings, extract invitation links, and invite friends to earn extra points.

Note: The Airdrop plan and participation methods may be updated at any time. It is recommended that users follow WORLD3’s official channels to get the latest information. At the same time, users should participate with caution, pay attention to the risks, and conduct sufficient research before participating. Gate does not guarantee the subsequent Airdrop rewards distribution.
Reference materials:

1. Gate.io,
2. Soso Value,
3. CoinGecko,
4. Investing,
5. Investing,
6. Gate.io,
7. Gate.io,
8. X,
9. X,
10. CoinShares,
11. Artemis,
12. DefiLlama,
13. Artemis,
14. FCA,
15. X,
16. Cointelegraph,
17. Rootdata,
18. X,
19. World3 AI,

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