Web3 Dynamics and Market Analysis

Macroeconomic Environment

Goldman's latest report has adjusted its forecast for the Federal Reserve's interest rate cuts, lowering the expectation for cuts this year from 100 basis points to 75 basis points. The report pointed out that claims about a rebound in core inflation have been exaggerated. Data shows that the annualized increase in core Personal Consumption Expenditures ( PCE ) inflation was 2.5% from September to November last year, slightly higher than the 2.3% in the previous three months, but still below the 2.8% year-on-year increase, indicating that inflation continues to decline.

The revised data from the Dallas Fed shows that the annualized PCE inflation for September to November last year was 2.4%, dropping to 1.8% in November. As the labor market tightens, the year-on-year wage growth rate has slowed to 3.9%. If productivity growth in the coming years is between 1.5% and 2%, this will be consistent with the 2% inflation target.

Postponement of Cryptocurrency Tax Rules

The IRS has postponed the implementation of cryptocurrency tax reporting rules until December 31, 2025, to give brokers more time to address legal and regulatory challenges. The new rules require the use of the First-In-First-Out (FIFO) accounting method for crypto assets starting from January 1, 2025, unless other methods such as Highest-In-First-Out (HIFO) or Specific Identification (Spec ID) are chosen. This decision is expected to benefit cryptocurrency holders on centralized finance (CeFi) trading platforms in 2025.

Syria Considers Bitcoin-Based Banking System

The Syrian Economic Research Center ( SCER ) proposed to the new government the establishment of a banking system based on the Bitcoin network and related technologies. This proposal, known as the "Syrian Bitcoin Policy," aims to accelerate national reconstruction and protect the people from the effects of inflation and currency devaluation. SCER recommends that the government establish a comprehensive regulatory framework to legalize the trading and mining of Bitcoin and other digital assets to promote economic recovery. Additionally, the proposal suggests digitizing the Syrian pound and considering backing it with assets including the US dollar and Bitcoin.

Ethereum News Weekly Ceased Operations

Ethereum Weekly News ( WiE ) Founder announced that WiE will officially cease operations on January 1, 2025. This decision stems from communications with the leadership of the Ethereum Foundation ( EF ), indicating that EF's recognition of WiE's value has diminished, and it only provided symbolic financial support in 2024. The founder stated that although there was an opportunity to continue operations through fundraising, he prefers to focus on other meaningful projects. He also pointed out that WiE failed to find a sustainable business model, and advertising and sponsorship revenue was difficult to maintain.

The Elon Musk Renaming Incident Triggers Market Volatility

A few days ago, Elon Musk renamed his social media account to "Kekius Maximus" and used the PEPE frog as his avatar, attracting attention from the online community. This move had a significant impact on the cryptocurrency market, especially for the KEKIUS token, which shares its name with his new title, as its price skyrocketed in a short period. However, after Musk reverted to his original name, the price of the KEKIUS token fell four times from the peak level of the previous day, showing that the market is extremely sensitive to his dynamics.

T3AI Project Introduction

T3AI is a DeFi network protocol that integrates AI, aimed at addressing the issues of excessive collateralization for loans that lead to limited leverage investment and asset utilization in the DeFi ecosystem. The project introduces a dedicated AI agent as a trusted intermediary, ensuring loan repayability through dynamic risk management algorithms, while allowing users to freely invest, trade, or stake on-chain to achieve higher capital returns.

The token allocation for T3 is 90.5% for free circulation and 9.5% for development rewards and community activities. 0.3% of the loan will be used as income, with 80% allocated for buybacks. 10% of the loan will be paid in T3AI tokens, while the remaining 90% will be paid in SOL or USDC. The project experienced a price surge in a short period, and the development team conducted a large-scale sell-off at 4 AM for infrastructure construction.