Market dynamics on December 2nd: BTC fluctuates at high levels, BTC dominance breaks through the weekly line, old coins and ETH series tokens lead the rise, US stocks continue to hit new highs

Market Dynamics

1. BTC is experiencing high volatility. The BTC dominance rate has broken on the weekly chart, signaling the arrival of "altcoin season," with 2017 vintage coins and ETH-based tokens leading the rally. The best performers this round have been 2017 vintage coins and this year's new MEMEs, both of which have the least supply pressure.

2. U.S. stocks are on the rise, continuing to set new highs.

Market Focus

1. Veteran coins like XRP, HBAR, ADA, ALGO, EOS, and IOTA are on the rise, generally increasing by 4-5 times this month. The U.S. is set to eliminate capital gains tax on token issuances by U.S. companies, with those listed in the COINBASE50 index seeing the best performance. XRP has reached a new market cap high, returning to the top three, and plans to issue a new stablecoin; MEMEs on the XRPL chain have seen significant increases.

2. ETH-based tokens such as CVX, ZRO, USUAL, and ENS have seen significant gains; ETH-based NFTs have risen by 30%. Inflows into ETH ETFs have surpassed those into BTC ETFs. USUAL, following a Ponzi-like model similar to LUNA, sees decreasing emissions as the TVL increases. ZRO will face no selling pressure in the first half of 2025.

3. On-chain MEME AI.FUN has surged tenfold in three days, reaching a market cap of $40 million. AI.FUN is a competitor to VIRTUAL on the BASE chain and serves as a launch platform for AI tokens. Last month, AI infrastructure, led by VIRTUAL, performed better than AI MEMEs, similar to how public chain Layer 1s performed better than DeFi applications due to higher certainty.