24-hour Spot Funding Inflow/Outflow List: ETH Net Outflow of $126 million, ZEC Net Outflow of $18.2 million

On December 2nd, Alliance DAO co-founder QwQiao posted on social media, stating: “If an L1 token has the potential to become a non-sovereign store of value, that means its price isn’t severely overvalued—and it can also act as an effective hedge against Bitcoin. Bitcoin will face at least two key risks over the next few decades: security budget constraints and quantum resistance.” The core takeaway is that Bitcoin is relatively inflexible and may not adapt quickly enough to these challenges. QwQiao still maintains Bitcoin is undoubtedly the best non-sovereign currency and the asset most likely to replace gold—but if you’re looking for a solid reason to hold an L1 token, this is it. Earlier, QwQiao noted it’s hard to justify holding L1 tokens long-term because they lack a “moat.”

December 2 – The cryptocurrency market selloff is intensifying, with Bitcoin and other digital tokens seeing a broader downturn spanning all high-risk trade markets, per a *The Wall Street Journal* report. In recent months, unprofitable tech firms, speculative shell companies, and "meme" assets have fallen out of favor. Patrick Horsman, Chief Investment Officer at crypto asset manager BNB Plus, noted investors are cutting risk exposure as they grow more pessimistic about the market and economic outlook. “I think Bitcoin could fall all the way back to $60,000,” Horsman said. “We don’t think the pain is over yet.” Boom-and-bust volatility has defined the crypto industry since its early days. In past “crypto winters,” Bitcoin and other top digital assets shed up to 80% of their value before rebounding. Each prior cycle—including the 2022 downturn—was partly driven by investor fears of widespread fraud. The current selloff, which has calmed some and confused others, stands out

**Dec 2 (Bloomberg) — Federal Reserve officials are debating where to pause after cutting interest rates by more than one percentage point, with internal dissent now at its highest level on record.** Over the past year, policymakers have shown the biggest divergence since at least 2012 (when the Fed began publishing its rate projections) on where rates should ultimately land. That rift has spilled into an unusually public debate: whether to cut again at next week’s meeting, and what actions to take afterward.

On December 2nd, Tron founder Justin Sun announced on X that Tron has completed a HKD 10 million donation to the Tai Po Welfare Fund—supported by the Hong Kong SAR Government in partnership with HTX—to back rescue efforts related to Hong Kong’s Tai Po fire.

On December 2, Reuters reported that the European Stablecoin Association (ESA) has named Jan-Oliver Sell—formerly with Coinbase Germany—as its CEO. Floris Lugt, ING’s Head of Digital Assets, will serve as CFO, while Howard Davies, ex-Chairman of the UK’s NatWest Bank, has been tapped as Chairman. French lender BNP Paribas has also joined the alliance. Earlier this September, nine major European banks—including ING, Banca Sella, and KBC—announced plans to launch a euro stablecoin project regulated under MiCA, aiming to counter U.S. dominance in digital payments.

On December 2nd, data from DefiLlama reveals most perpetual DEXs (Perp DEXs) recorded a sharp rebound in 24-hour trading volume over the past day. Lighter, Aster, and Hyperliquid all saw volumes surge above $10 billion—marking their first such levels in nearly 10 days. Below are key metrics for select Perp DEXs: - **Lighter**: 24h volume ~$118.8B | TVL ~$12.2B | Open interest ~$16.1B - **Aster**: 24h volume ~$110.5B | TVL ~$14.1B | Open interest ~$26.5B (ref: https://www.asterdex.com/en-US/referral/aboter) - **Hyperliquid**: 24h volume ~$102.2B | TVL ~$42.8B | Open interest ~$59.2B (ref: https://app.hyperliquid.xyz/join/NTOD) - **EdgeX**: 24h volume ~$65.2B | TVL ~$4.2B | Open interest ~$7.56B - **ApeX**: 24h volume ~$27.5B | TVL ~$47.06M | Open interest ~$29.24M - **Variational**: 24h volume ~$14.7B | TVL ~$72.86M | Open interest ~$3.31B - **Backpack**: 24h volume ~$12.2B | TVL (not disclosed) | Open interest ~$1.96B - **Pacifica**: 24h volume ~$5.75B | TVL ~$41.28M |