Bitget Daily Digest (January 18): Litecoin ETF application gains momentum, Solana inflation model set for revision

Market highlights

1. Multicoin Capital has introduced a governance proposal for the Solana network, aiming to revise its inflation model and reduce SOL's inflation rate. The proposal sets a target staking rate of 50%. If more than 50% of SOL is staked, issuance will decrease, thereby reducing yields and discouraging further staking. Conversely, if less than 50% of SOL is staked, issuance will increase to boost yields and incentivize staking. 

2. Virtuals has announced plans to buy back and burn nearly 13 million $VIRTUAL tokens over the next 30 days, driving a revaluation of tokens within its ecosystem. Tokens with high transaction fees and low market caps, such as $GAME, $CANVO, and $AIXBT, emerge as the biggest beneficiaries. Additionally, tokens with liquidity pools not paired with $VIRTUAL benefit from reduced sell pressure, while $VIRTUAL and tokens exclusively paired with $VIRTUAL or with low trading volumes face downward pressure.

3. The Litecoin ETF application gains momentum as Nasdaq submits a 19b-4 form for Canary Funds, initiating a 240-day review period. Analysts highlight that Litecoin, not classified as a security by the SEC, may have a competitive edge in the approval process. The submission of a revised filing and positive SEC signals indicate that a Litecoin ETF could become the next approved cryptocurrency ETF. Market enthusiasm has already driven $LTC to notable single-day gains.  

4. The $AGIXT token, centered on on-chain AI agents, debuted with a rapid surge to a $100 million market cap. Its technology focuses on multitasking, long-term memory, and high compatibility. Despite its strong fundamentals, concerns remain over high token concentration and questionable lockup structure, with early adopters already securing profits. 

Market overview

1. Bitcoin surged near new highs, leading to a broad market uptick. $WOOF and $SPELL posted the largest gains, while $SONIC's trading volume soared to third place, surpassing $ETH and $XRP but trailing $BGB and $BTC.

2. As Trump's inauguration approaches, tech stocks lifted the Nasdaq 100 by as much as 2%, while the U.S. dollar ended a six-week rally. U.S. Treasury yields recorded their largest weekly drop since late November.

3. Currently standing at 104,105 USDT, Bitcoin is in a potential liquidation zone. A 1000-point drop to around 103,105 USDT could trigger over $240 million in cumulative long-position liquidations. Conversely, a rise to 105,105 USDT could lead to more than $20 million in cumulative short-position liquidations. With long liquidation volumes far surpassing short positions, it's advisable to manage leverage carefully to avoid large-scale liquidations. 

4. In the past 24 hours, BTC saw $5.904 billion in spot inflows and $5.82 billion in outflows, resulting in a net inflow of $84 million. 

5. In the last 24 hours, $XRP, $SOL, $HBAR, $DOGE, and $ADA led in net outflows in futures trading, signaling potential trading opportunities. 

6. Latest data from SoSoValue: U.S. spot Bitcoin ETFs recorded a single-day inflow of $251 million, while cumulative inflows are $37.357 billion, with total holdings reaching $116.381 billion. Meanwhile, spot Ethereum ETFs saw a single-day inflow of $2.4986 million, while cumulative inflows are $2.644 billion, with total holdings at $12.396 billion. Both saw substantial inflows compared to the previous day. 

Highlights on X

1. @0xJeff: Tackling AI agent fragmentation with coordination Layers and swarm intelligence

The rapid growth of the AI agent field has led to increasing fragmentation, much like liquidity dispersion in Layer 1/Layer 2 scaling solutions. However, coordination layers and swarm intelligence offer promising solutions to enhance resource integration and collaboration. Platforms like Virtuals, FXN, and Questflow are leveraging agent protocols and real-time response mechanisms to facilitate inter-agent collaboration, enabling decentralized autonomous operations and task automation. This not only boosts the economic efficiency of AI agents but also delivers over a 10x improvement in workflow productivity for users.

X post: https://x.com/Defi0xJeff/status/1880221246002196687

2. @Haotian: A long-term and cautious investment approach to the fast-paced AI agent sector

The AI agent sector is still in its early stages, with immature models and architectures, and many projects are likely to be weeded out. Investors chasing rapid-growth projects should be mindful of high volatility and avoid FOMO. A more prudent approach is to reassess fundamentals after market pullbacks. While memecoin-driven launches can generate community buzz, projects lacking sustained development and key milestones often fail to achieve lasting value. Taking the time to slow down and conduct in-depth research is essential for identifying high-quality projects with real growth potential.

X post: https://x.com/tmel0211/status/1880165102760129103

3. @jason_chen998: An analysis of ETH price targets based on BTC at $150,000

Using BTC at $150,000 as a target, Jason examines the ETH/BTC exchange rate, which currently stands at 0.03 (below the previous consensus of 0.05): - If ETH maintains a 0.03 rate, its price would range between $4500 and $5000 when BTC reaches $150,000.

- If ETH rebounds to a 0.05 rate, its price could rise to $7500–$8000. At present, Ethereum shows no signs of structural changes in its fundamentals, indicating a short-term ceiling of $5000–$8000. Monitoring fundamental shifts will be essential for assessing its long-term potential.

X post: https://x.com/jason_chen998/status/1880186262621155510

4. Aylo: $LINK's most impactful marketing

Since the release of this now-viral image, $LINK's performance has outperformed the broader market—and it's no coincidence. The image has arguably become one of $LINK's best marketing images, sparking an instant "I need to buy $LINK" instinct among viewers. The undeniable power of visual marketing has made this image a key catalyst for $LINK's recent success.

X post: https://x.com/alpha_pls/status/1880321489897242940

Institutional insights

1.Matrixport: Bitcoin may face downward pressure; it is recommended to wait for a contrarian buy signal

X post: https://x.com/Matrixport_CN/status/1880163175729123430

2.Grayscale: 2025 could bring "dozens of smaller victories" for the crypto industry

Article: https://cointelegraph.com/news/crypto-industry-dozens-smaller-victories-2025-grayscale

3.Lekker Capital: U.S. buying altcoins as strategic reserves is a ridiculous idea and will never happen

Article: https://www.coindesk.com/markets/2025/01/16/solana-xrp-jump-as-trump-reportedly-mulls-america-first-strategic-crypto-reserve-but-experts-suggest-otherwise

4.Galaxy Digital: Crypto venture funding remained difficult in 2024

Article: https://www.coindesk.com/markets/2025/01/17/crypto-venture-capital-market-remained-difficult-in-2024-galaxy-digital-says

News updates

1. Wyoming legislator proposes bill for strategic Bitcoin reserve.

2. Bloomberg: Trump to designate cryptocurrency a "national priority."

3. DCG was fined $38 million due to Genesis lending fraud.

4. Overly relaxed U.S. regulations could undermine financial safeguards and increase vulnerabilities.

Project updates

1. USDC Treasury mints an additional 250 million USDC on Solana.

2. Base announces strategic goals for 2025: attract 25 million users and secure $100 billion in platform assets.

3. Wormhole announces that its first staking reward program is now live.

4. Berachain's incentivized pre-deposit vault has exceeded $1.8 billion in TVL.

5. Multicoin introduces a Solana improvement proposal, recommending a market-based adjustment to SOL's issuance rate.

6. Ether.fi reported $3.6 million in revenue last December, with a portion of its revenue distributed to ETHFI stakers.

7. DWF Labs announces joining DeXe Network's DEXE staking program.

8. Orbiter Finance, a cross-chain protocol, to conduct TGE on January 20.

9. Messari releases Aethir annual report: serving over 100 million users, with annual revenue of $90.68 million.

10. FTX claims distribution update: creditors from countries like Saudi Arabia are currently ineligible to receive distributions from BitGo and Kraken.

Recommended reads

1.Messari analyst:  Why XRP may surpass ETH

The article explores XRP's potential to surpass ETH in the market, highlighting its strong growth indicators, unified community consensus, and potential catalysts, including Trump's inauguration, ETF applications, and favorable tax policies. In contrast, ETH faces challenges from internal divisions within its L2 ecosystem, growing competition, and diminishing market enthusiasm. Despite the existing risks, the analysis predicts a 35–50% price increase for XRP in the short term, especially after Trump's inauguration.

Read the full article here: https://www.bitgetapps.com/news/detail/12560604505282

2.Veteran trader Peter Brandt predicts Bitcoin could rally to $150,000 this year – but there's a catch.

Veteran trader Peter Brandt predicts Bitcoin could surge to $150,000 this year but warns of a potential 50%+ drop if bearish signals, such as the head-and-shoulders pattern, emerge. While his Bayesian analysis suggests a bullish recovery following a potential dip to $84,000, Brandt highlights the risks of market volatility. Additionally, he sees Cardano (ADA) at a pivotal moment, suggesting it has likely bottomed at $0.81 and is poised for a strong bull run, with $1.09 potentially acting as robust support.

Read the full article here: https://www.bitgetapps.com/news/detail/12560604504043