Dec 16, 2024: Our weekly Institutional Insights explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

 explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

Weekly Highlight — Europe’s Stagnant Economy Spurs Further Rate Cuts

European Economic Data. Source: Bloomberg

European Central Bank (ECB) policymakers have indicated that further interest rate cuts are forthcoming. France’s François Villeroy de Galhau stated that investors' expectations for over 100 basis points (bps) of easing appear reasonable. He confirmed that there would be multiple rate cuts next year, aligning with market forecasts.

The ECB recently lowered borrowing costs for the fourth time this year, reflecting concerns over the eurozone’s economic outlook. Officials anticipate a quarter-point rate cut in both January and March 2025, adjusting the current rate of 3%.

Data showed stagnant industrial production in October, signaling challenges for the eurozone economy. Villeroy emphasized that the ECB remains above the neutral rate level, and indicated room for further adjustments. Other officials, including those from Estonia, Portugal and Spain, also foresee further borrowing cost reductions as the EU economy struggles to gain momentum.

Weekly Crypto Highlight — MicroStrategy Added to Nasdaq-100

MicroStrategy Inc., known for its significant investments in Bitcoin, is set to join the Nasdaq-100 Index (NDX

, a move announced by Nasdaq Global Indexes. Alongside MicroStrategy, Palantir Technologies and Axon Enterprise will also be added, while Illumina, Supermicro and Moderna will be removed. These changes take effect on Dec 23, 2024.

MicroStrategy's inclusion marks a notable endorsement for its founder, Michael Saylor, whose unconventional approach has led to a 500% surge in the company’s share price this year. Starting as an enterprise analytics software provider, MicroStrategy shifted its focus to accumulating Bitcoin, which has substantially increased its market value to nearly $100 billion. However, this volatility poses potential risks to the Nasdaq-100, as the company's stock has fluctuated significantly compared to the NDX.

The announcement boosted Bitcoin's value by over 1%, indicating that MicroStrategy's Index membership could attract more institutional investment. Despite its stock gains, MicroStrategy reported a third consecutive quarterly loss, due to impairment charges on its Bitcoin holdings, alongside a 10% decline in software revenue.

Palantir, co-founded by billionaire Peter Thiel, is enjoying a 343% increase in stock value this year, driven by demand for its AI-driven data analysis tools. Meanwhile, Axon Enterprise, which produces Tasers and body cameras, has also seen a 150% rise in stock price, aided by its AI software innovations.

Inclusion in the Nasdaq-100 offers these companies increased visibility, liquidity and potentially a boost in stock prices, as significant funds must acquire shares of Index members. This reshuffling reflects broader trends in technology and investment, with the Nasdaq-100 up 30% this year, outperforming other major indices.

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Weekly Institutional Insights: Microstrategy Included in Nasdaq-100, Adding Institutions’ Passive Exposure to Bitcoin

Celebrate our collective journey on Bybit Learn throughout 2024 as we go through the highlights of your crypto learning journey, and look at what’s on the horizon in 2025.

2024 was a landmark year for the cryptocurrency industry, marked by significant events that reshaped the landscape of digital assets.

The year kicked off with a bang as the U.S. Securities and Exchange Commission (SEC) approved spot 

 in early 2024. This approval not only legitimized Bitcoin in the eyes of traditional investors but also paved the way for massive institutional investment into the cryptocurrency market.

Market sentiments turned bullish in March, driven by the successful 

 launch. Bitcoin's price surged and broke its 2021 all-time high (ATH) price of $69,000. This marked the first time Bitcoin made a new ATH before the Bitcoin halving event.

 in April 2024, which reduced the reward for mining new blocks, effectively halving the rate at which new BTC are generated.

Finally, in November 2024, Donald Trump was re-elected as President of the United States, which had a profound impact on the crypto market. His administration's pro-crypto stance included pledges to make the U.S. the "crypto capital of the world." This fueled optimism and drove Bitcoin’s price above the historical 

Throughout this tumultuous and exciting year, 

 was a steadfast companion for crypto enthusiasts and investors, providing educational content, daily market updates, research reports and more.

This article celebrates our collective journey on Bybit Learn throughout 2024, encapsulating the learning and growth within the everchanging crypto space.

Your Favorite Crypto Page-Turner This Year

You dove headfirst into the deep end of crypto in 2024, embracing our most captivating pieces like they were the last episodes of your favorite Netflix series. From blockchain basics to memecoin trading, you've shown that when it comes to learning, you're all in for the long haul.

Time flies. Not too long ago, we covered a 

, one of your favorite articles. Now, we are celebrating 2024, and what a year it has been. Bybit launched numerous innovative products, with 

 one of the most interesting to our readers. The Ton ecosystem drew 

 the top few articles. Our readers constantly leveled up their crypto knowledge, especially in 

The Topics You Couldn't Stop Learning About

Your curiosity took the wheel this year, navigating through topics like a pro. Your top picks? A ride through this year’s crypto trends that had you on the edge of your seat. 

 topics was our readers' favorite pastime, and it's no surprise given Bybit’s exciting 

 is a hot topic, after all, we are the second-largest crypto exchange by trading volume. 

, the talk of the town for the whole year, is rightfully in the top picks, as is 

, which had a stellar year and also broke ATHs multiple times. Finally, rounding up the top six are 

You joined the ranks of the crypto curious, rallying behind campaigns that not only educated but also inspired action. These were the campaigns that made you feel part of something bigger, turning learning into a community event.

 and generated over $100 billion in trading volume in the competition’s fourth edition. Next is Bybit’s 

, testament to the ever-growing popularity of trading bots. Bybit’s 

 introduced newcomers to the world of trading, while Ton enthusiasts got their hands on over $200,000 in airdrops during the 

Like a true crypto adventurer, you've climbed the ranks of knowledge with our R2E courses. These were your go-to guides, turning you from a rookie to a crypto sage. 

In celebration of a significant milestone, 

 course was one of your top picks. Speaking of milestones, the launch of 

 were popular courses too. You also loved the 

The Bybit Learn Report That Was Your Crypto Bible

Among the sea of reports, one stood out as your beacon of insight. It wasn't just data; it was the story of the year, the one report that had you nodding in agreement and scribbling notes for future reference.

 report took top spot amongst Bybit Learn readers. As the crypto markets heated up, our 

 report offered you the insights to navigate through the volatility. The U.S. election had everyone on edge, and our 

 helped break down the implications for crypto. We also dissected the derivatives market in our 

 report, giving traders the edge. Our recently launched 

 shed light on crypto whales. And let's not forget to celebrate 

 report — a testament to our journey together.

Live and in action, you tuned into the livestream that felt like the live concert of the crypto world. The energy, the insights, the community interaction - this was where you felt most connected.

, giving you the lowdown on their winning strategies. Then, we caught the wave with 

, sharing tips on how to capitalize on those market highs. Our 

 session introduced a fun way to engage with crypto right from your fingertips. For those of you diving deep into charts, 

 levelled up your technical knowledge. We also explored broad strategies in 

As we look forward, the horizon seems bright and buzzing with potential. 2025 is shaping up to be a year where the crypto narrative writes new chapters.

In 2025, many are watching for a significant shift in the regulatory landscape, particularly with Donald Trump set to assume office in January 2025. Trump’s recent 

 of pro-crypto candidates, such as David Sacks as his "White House A.I. & Crypto Czar," could spur a resurgence in innovation in the US. 

Many experts predict that there will be more defined regulations globally, particularly in regions like Europe and the United States. Clearer regulatory frameworks are expected to spur institutional adoption, providing a level of certainty that could attract more traditional investors to the crypto space.

Technological advancements and new use cases for blockchain technology, such as AI integration, could be significant drivers. The integration of AI in cryptocurrency projects, particularly in the recent growth of 

, could see AI and blockchain establish itself as a major trend.

Finally, the broader economic environment, including potential Fed rate adjustments and geopolitical stability, could contribute to a bullish market for cryptocurrencies in 2025.

You asked and we listened. Bybit Learn is set to launch a community hub for you, our readers! Comment, like, share and engage in interesting conversations with fellow readers on the hottest topics in crypto.

Love our livestreams? Get ready to tune in to even more engaging and interesting content from our team, from helping you understand markets to master Bybit products.

Finally, look forward to more partnerships and reports from esteemed partners to help you navigate the choppy waters of crypto.

Next year promises to be a blockbuster, with new courses, exciting campaigns and groundbreaking reports. Like waiting for the next season of your favorite show, you're in for more learning adventures that will redefine your crypto journey.

Beginner

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Bybit Learn Wrapped 2024

Suilend is a decentralized lending protocol built on Sui that enables users to borrow and lend crypto assets. Learn more about how it works here.

 (DeFi), complex lending protocols and high fees create barriers for users seeking to borrow and lend. Suilend was built by the team behind the successful 

 lending protocol with over $400 million in 

 with a clear mission to make DeFi lending simple, secure and accessible.

This article explores Suilend's innovative features, its native SEND token and its reshaping of DeFi on Sui’s blockchain. We'll delve into Suilend's history, examine its unique offerings and analyze its potential as an investment opportunity in the growing Sui ecosystem.

 is a decentralized lending protocol built on Sui that enables users to borrow and lend crypto assets, with features including multi-asset collateral support, dynamic interest rates, risk-isolated lending pools and 

Launched in March 2024, Suilend represents Solend's strategic expansion from Solana to Sui. The Suilend team brings proven expertise to Sui's growing ecosystem from Solend, the tenth-largest protocol on Solana, with $432 million in TVL and over 170,000 users across 70 assets (as of December 2024).

The project is led by pseudonymous Solend founder Rooter, and combines expertise from 15 team members (including 11 developers from Morgan Stanley, Bell Labs and IBM). The move to Sui was driven by the blockchain's advanced capabilities and the Move programming language's superior tooling.

Suilend's vision has attracted $6 million across two funding rounds, with Robot Ventures leading the latest $4 million investment. Suilend has already become the largest DeFi protocol on Sui, with a 

Suilend aims to transform DeFi lending by removing traditional barriers to entry. The protocol tackles the key challenges of high transaction costs that eat into profits, complex interfaces that deter adoption and the depegging risks common in liquid staking.

Leveraging Sui's architecture, Suilend achieves unprecedented performance with 297,000 

 and 480-millisecond finality. The protocol combines this speed with comprehensive features, such as isolated lending pools, a points system and its innovative 

With a strong focus on security, Suilend has undergone thorough audits by leading blockchain security firms Zellic and OtterSec. This commitment to security and user-focused features establishes a trusted foundation for DeFi innovation.

Suilend operates through distinct categories of lending pools: main assets, which undergo rigorous due diligence, and isolated assets for newer or more volatile tokens. Users can lend their assets to earn interest or borrow against collateral, with all transactions automated through 

For main assets, users can freely combine different tokens as collateral. However, isolated assets require dedicated collateral that can't be shared across positions, protecting the protocol from risk spillover. Borrowing limits for isolated assets are more conservative and require closer monitoring, due to potential price volatility.

The platform employs a dynamic interest rate model that adjusts based on pool utilization. Rates typically fluctuate more for isolated assets, depending upon market demand and availability. Suilend implements a simple one-time borrowing fee structure with no hidden charges in order to keep costs predictable.

Beyond traditional lending, Suilend integrates the SpringSui liquid staking solution for instant unstaking of SUI tokens. Users can stake SUI to receive sSUI tokens, which maintain their peg through SIP-33 implementation and can be used as collateral within the protocol.

Robust security measures and automated risk management systems protect user assets at every step. The protocol monitors positions continuously, adjusting requirements based on market conditions, and ensuring users maintain adequate collateral to prevent liquidation.

Suilend offers a comprehensive suite of features to enhance efficiency and user benefits.

Suilend operates two types of lending pools: main assets and isolated assets. Main assets undergo rigorous due diligence, and support combined collateral positions, while isolated assets operate in separate pools to contain potential risks from newer or more volatile tokens.

Each pool features specific risk parameters and collateralization ratios, allowing users to earn yields while maintaining security. Through this dual-pool system, Suilend balances high-yield opportunities with robust 

Suilend incorporates an efficient swap mechanism, allowing users to exchange tokens directly within the platform. This integration reduces the need for external DEXs and minimizes transaction fees to enhance the overall user experience.

Suilend facilitates asset transfers between different blockchain networks through its 

 functionality. The system ensures secure cross-chain transactions to expand accessibility while maintaining robust security measures.

 system distributes 10 million points daily to active users, based on deposit amount and duration. These nontransferable points unlock benefits, such as reduced borrowing rates and future governance participation, to incentivize long-term platform engagement.

SpringSui represents Suilend's open-source standard for liquid staking on Sui. Users who stake SUI receive sSUI tokens, which can be traded, used in DeFi or instantly converted back to SUI, thus eliminating the traditional multi-day waiting period for unstaking.

Built on protocol upgrades SIP-31 and SIP-33, SpringSui solves the depegging risks common in liquid staking. The platform will soon enable other teams to create their own liquid staking tokens, driving LST adoption and promoting liquidity across the Sui ecosystem.

Suilend has achieved significant milestones since its inception by following a strategic development plan. The protocol launched on Sui's mainnet in March 2024, quickly establishing itself as the chain's largest lending protocol.

Key achievements include securing $6 million in funding across two rounds, reaching nearly $470 million in TVL and generating monthly revenues of $820,000. The platform has also successfully integrated multiple assets and launched innovative features such as the SpringSui LST standard.

, a capital-efficient AMM that lends idle assets for additional yield, in Q1 2025. The protocol also aims to expand its ecosystem through enhanced governance mechanisms, additional asset support and deeper integration with other Sui protocols.

SEND, Suilend's native token, has a total supply of 100 million tokens distributed with a community-first approach. The allocation 

 65% for the community, 20% for investors and 15% for the team.

A significant portion (40%) of SEND will be distributed through the Mdrop mechanism, with 20% going to points holders and early users, 5% to ecosystem communities and 15% to SAVE holders on Solana. When users redeem their SEND allocation, they receive mSEND tokens, which they can use to claim SEND.

Mdrop maturities vary by allocation type: three months for Points and Ecosystem holders, six months for Team and Investors, and 12 months for SAVE holders. After these periods, users can claim their full SEND allocation without penalty. To ensure sustainable token distribution, investor tokens unlock over two years and team tokens over four years.

Given Suilend’s recent market entry, prominent crypto analysts haven’t yet published detailed price forecasts for the SEND token. Several key factors will likely influence its value: Suilend's continued platform growth, broader Sui ecosystem participation and overall cryptocurrency market conditions.

 token is currently trading at $1.20, with a fully diluted valuation of $138 million and $456 million in TVL (as of Dec 12, 2024). Since Suilend has already achieved a larger TVL of $470 million, its protocol could potentially support a similar or higher market capitalization.

Looking to trade Suilend tokens? Bybit now offers the SEND/USDT Spot trading pair. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the 

While Suilend has demonstrated impressive growth and strong fundamentals in the DeFi lending space, investors should carefully consider both its strengths and risk factors before making investment decisions.

With its institutional backing, proven team experience and innovative approach to DeFi lending, Suilend (SEND) shows significant potential. However, potential investors should 

 and consider their own risk tolerance before investing.

Suilend tackles key challenges in DeFi — namely, high costs and complexity — by leveraging Sui's technology to create a more accessible platform. With innovations like the SpringSui LST and dynamic interest rates, Suilend could mark a turning point for DeFi adoption by making lending and borrowing accessible to users previously deterred by technical barriers.

Intermediate

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Suilend (SEND): Lending and Borrowing Made Easy on Sui

Avalanche has secured a $250 million locked-token sale led by Galaxy Digital, Dragonfly, and ParaFi Capital, with over 40 top investment firms participating.

The S&P 500 fell 0.54%, pressured by a hotter-than-expected inflation report and declines in major stocks such as UnitedHealth and Adobe. Coindesk Indices, an index measuring broader cryptocurrency market performance was down by 0.24%, with Bitcoin dropping by 1.45% and Ether rising by 1.00%, in the past 24 hours.

Today's top performer is AAVE, which surged 17.1% following the anticipation of Aave V4, a modular hub-spoke design for enhanced scalability and yield.

Aave (AAVE), founded in 2017, is a decentralized lending platform on Ethereum, allowing users to lend, borrow, and earn interest on 17 cryptocurrencies without intermediaries. It uses smart contracts, requires collateral for loans, and issues interest-accruing aTokens. Aave also offers features like instant loans. 

 introduces a modular "hub-spoke" design, with a central Liquidity Hub and flexible Spokes for diverse collateral types. This streamlines the protocol, enhances scalability, and allows interconnected hubs, enabling higher yields and risk-adjusted borrowing. It’s a leap forward for efficiency and adaptability in DeFi.

Check Out the Latest Prices, Charts, and Data of 

 led by Galaxy Digital, Dragonfly, and ParaFi Capital, with over 40 top investment firms participating. This funding follows the launch of the Avalanche9000 testnet, which marks a major milestone ahead of the upcoming mainnet upgrade. The Avalanche9000 upgrade will reduce Layer 1 blockchain deployment costs by 99.9% and transaction costs on the C-Chain by 25X. Additionally, it introduces the $40 million Retro9000 grant program to support developers. The upgrade aims to enhance scalability and innovation, positioning Avalanche as a leader in decentralized finance and blockchain scalability.

Yesterday, Bitcoin Spot ETFs recorded a net inflow of $165.9M, driven by $214.3M from non-GBTC sources, partially offset by a $48.4M outflow from GBTC.

 has launched and runs for under 4 months, culminating in a points-to-airdrop conversion event. Participants from Season 1 receive a 1.25x boost in trading and liquidity activity. Top 250 Diamond League players can apply for the exclusive "Chad Traders" Discord role.

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Avalanche Secures $250M Investment to Drive Avalanche9000 Upgrade and Enhance Blockchain Scalability

Crypto Insights

Our weekly Institutional Insights explore the latest market developments, including market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks, aiming to supercharge your crypto trading.

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: Our weekly Institutional Insights explore the latest market developments, including market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks, aiming to supercharge your crypto trading.

Macro Overview — U.S. Inflation’s Unexpected Drop Supports Risky Assets

U.S. inflation cooled broadly in June 2024, reaching the slowest pace since 2021 due to a long-awaited slowdown in housing costs. This sends a strong signal that the Federal Reserve may soon be able to cut interest rates.

According to Bureau of Labor Statistics data, the core consumer price index, which excludes food and energy, rose just 0.1% from May — the smallest increase in three years. The overall CPI measure even fell for the first time since the Covid-19 pandemic began, driven by cheaper gasoline prices.

This deceleration in inflation boosts the odds of a Federal Reserve rate cut in September. The June CPI reading, along with the "really good" 

 that Fed Chair Jerome Powell described, should give the central bank the confidence needed to start cutting rates soon. Policymakers may signal this possibility when they meet in July, especially as unemployment has risen for three straight months.

While in recent testimony Powell avoided signaling the timing of rate cuts, economists believe the path is now open for the Fed to cut them in September. Treasury yields rallied, and traders priced in September and December rate cuts after the CPI report.

The data also provided encouraging news for President Biden, as he faces calls from Democrats to step aside. Shelter prices, the largest CPI category, had their smallest gain since 2021, and services inflation more broadly cooled. Goods prices have also been declining for most of the past year, providing relief to consumers.

However, the June CPI data still showed inflation running above the Fed's 2% target, with the core CPI up 3.3% year-over-year. However, the broad-based slowdown, particularly in housing, suggests that the path to the Fed's goal is becoming clearer.

Weekly Crypto Highlight — SOL ETF Boosts Market Sentiment; Bitcoin Climbs Back to $59K Ahead of CPI Data

It’s reasonable to expect that the unexpected drop in June’s U.S. CPI print was priced in before its actual release, as both the cryptocurrency market and broader equity markets had experienced a strong rally prior to Thursday's data announcement.

The highly anticipated approval of ETH Spot ETFs in July hasn’t led to a noticeable outperformance of Ether against Bitcoin. The market believes that Ether will only attract around one-third as much capital as Bitcoin following the official ETF approval.

However, the potential approval of a Solana Spot ETF is still worthy of anticipation due to Solana's long-standing status as an "altcoin." Bitcoin and Ether have always been regarded as commodities by major regulators, including the Commodity Futures Trading Commission (CFTC). Even Gary Gensler, the current Chair of the Securities and Exchange Commission (SEC), didn’t object to such a classification earlier in his career. Furthermore, ETH Spot ETFs have already been approved in regions such as Hong Kong and Canada. As such, the prospect of Solana Spot ETFs is seen as more "unexpected" than ETH Spot ETFs.

The potential impact of a Solana Spot ETF listing could be profound, as it could potentially pave the way for the approval of Spot ETFs for many other altcoins.

Yet, it’s still too early to reach any definitive conclusions. 

Currently, only two issuers have filed for a Solana (SOL) Spot ETF — VanEck on June 27, 2024, and 21Shares on June 28. 

There hasn’t been any clear indication or hint from the regulator on a potential green light for these filings. When reflecting on the past, the approval process for ETH Spot ETFs experienced a notable U-turn when an abrupt change in attitude from the regulator transformed the seemingly impossible event into a solid approval. Given this precedent, it would be premature to make any firm predictions about the outcome of the pending Solana Spot ETF applications. The final decision by the SEC remains uncertain at this stage.

Why would the market still dare to dream about this prospect? According to Polymarket's betting ratios, Donald Trump was perceived to be the likely winner of the upcoming November presidential election. Trump is considered a pro-crypto candidate who accepts cryptocurrency donations for his political campaigns. With Trump potentially taking over the White House, the market believes that more crypto-friendly policies might emerge from the administration.

However, behind the hype, Solana remains significantly different not only from the Bitcoin blockchain but also from that of Ethereum. In terms of the number of stakeholders, Solana is perceived to have a much higher degree of centralization risk than Ethereum. Solana's development and network activities are largely driven by the Solana Foundation, which is believed to exert a more powerful influence over the network than the Ethereum Foundation does on the Ethereum network.

Regulators are primarily concerned about potential market manipulation risks. The token concentration of SOL is clearly higher than that of Ether. Although the top token holders of ETH are mostly exchanges and the Beacon Deposit contract, in our assessment, Solana has seen a much more concentrated pattern of token holdings, based on the current distribution and its relatively shorter history.

This heightened concentration in Solana's token distribution is likely to be a key consideration for regulators when evaluating the potential approval of a Solana Spot ETF. The concern over market manipulation stemming from such concentrated token holdings could pose a significant challenge for the Solana ETF applications.

Bitcoin Spot ETF Inflows Support Bitcoin’s Rebound; $54K Might Be a Short-Term Floor

Continuous inflows have supported Bitcoin's rebound to $59,000 from a bottom of approximately $54,000. In mid-August, we’ll see whether such 

 behavior is driven by institutional investors.

Nevertheless, the imminent selling of Bitcoin from the Mt. Gox distribution, as well as the Bitcoin 

 and U.S. governments, will continue to put a strain on Bitcoin’s price trend, which may lead to a lower chance of another record-high in the medium term. However, strong inflows during Bitcoin's first correction below $50K in 2024 might indicate that the $54K level is very strong support, and any upcoming corrections down to this level could present a good entry opportunity for those who missed the early 2024 rally.

Weekly Institutional Insights — Bitcoin Climbs Back to $58K, Solana ETF Excitement Might Be Next Catalyst for Another Rally

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