Daily News | The Fed's Interest Rate Cut Next Week is Almost Certain; DeFi Activity Rebounded, Stimulating ETH and AAVE to Rise

Crypto Daily Digest: BTC and ETH spot ETFs both experienced large inflows, and the Fed is likely to cut interest rates next week

According to Farside Investor data, the US Bitcoin spot ETF had a net inflow of $604 million yesterday. BlackRock’s ETHA inflow was $430 million, and Fidelity’s FBTC net inflow was $30.5 million.

The US Ethereum spot ETF had a net inflow of $277 million yesterday. BlackRock’s ETHA inflow was $202 million, and Grayscale’s ETH net inflow was $73.2 million.

The probability of the Fed cutting interest rates by 25 basis points in December is 96.7%

According to CME’s “FedWatch”, the probability of the Fed keeping current interest rates unchanged until December is 3.3%, and the probability of a 25 basis point rate cut is 96.7%.

CryptoQuant： The average resale price of Ethereum soared and may exceed $5,000

According to TheBlock, CryptoQuant analysts have stated that based on valuation indicators, if the current supply and demand situation continues, Ethereum may break through $5,000.

CryptoQuant analysts emphasize that the realized price band of Ethereum is a key indicator they uate. The implemented price represents the average resale price of Ethereum. The current upper limit of the price band is $5,200. As new buyers purchase Ethereum at higher prices, this price cap will continue to rise, indicating the potential for further increases in the current market cycle.

AAVE rose above $380, with recent surge in deposit interest rates and TVL reaching new highs

According to Gate.io market information, the lending protocol Aave token AAVE once broke through $380 within the day, touching $388.52, and is now priced at $368, with a 24-hour increase of 19.9%.

Previously, multiple indicators of the Aave protocol have reached new highs, but the current coin price is only about 60% of the ATH period price. Compared to 2021, the total supply of stablecoins is significantly higher, which also provides momentum for DeFi, and AAVE price is expected to push higher. According to DeFiLlama data, the TVL of Aave has reached a new historical high of $38.6 billion, surpassing the previous bull market period in October 2021. The estimated annual revenue for this protocol is $117 million.

Market Trends: AVA rose by over 350% during the day, while AAVE TVL reached a historic high

Market Hotspots

AVA has risen by over 350% within the day, but the current increase has slightly declined, still maintaining a growth rate of around 250%; AVA is the utility token of Travala, a travel platform that supports crypto payment methods. It is reported that the platform’s annual revenue has exceeded $100 million. Yesterday, CZ announced that it had already invested in the platform, stimulating the rise of AVA token; AVA’s current circulating market cap is $137 million, ranking 424th in the entire market, and there is still considerable room for speculation;

AAVE surged by over 30% within the day, and the market rebounded, stimulating DeFi activity; As a leading DeFi lending protocol, Aave’s TVL has reached a historic high of $38.6 billion, surpassing the previous bull market period in October 2021. The estimated annual revenue for this protocol is $117 million.

Mainstream Coins

BTC rebounded and broke through $102,500 before slightly falling back. It may be in a period of volatile adjustment in the short term, but it is still optimistic in the medium to long term;

ETH showed relatively strong performance, with the rise of DeFi tokens and the growth of DeFi activities stimulating demand for ETH;

Altcoins generally experienced a pullback, and there is currently no concentrated sector in the market. In November, most Altcoins rose several times, and short-term adjustments are inevitable.

Macro news: US stocks collectively close lower, traders expect interest rate cuts to slow down next year

The three major indexes of the US stock market collectively closed down, with the S&P 500 index falling 0.54% to 6,051.25 points; The Dow Jones Industrial Average fell 0.53% to 43,914.12 points; The Nasdaq index fell 0.66% to 19,902.84 points. The benchmark 10-year Treasury yield is 4.32%, while the 2-year Treasury yield, which is most sensitive to the Federal Reserve policy rate, is 4.18%.

According to a report released by the US Bureau of Labor Statistics on Thursday, the Producer Price Index (PPI), which measures end demand, rose 0.4% month on month from the previous month, marking the largest increase since June. The market expects a 0.2% month on month growth. PPI has risen significantly by 3% year-on-year, which is the largest increase since March 2023 and higher than the market expectation of 2.6%.

After the release of economic data, interest rate futures traders generally expect that the Federal Reserve will lower the benchmark interest rate by 25 basis points next week. Forecasters generally believe that after three consecutive interest rate cuts, the pace of interest rate cuts next year will significantly slow down.