Opinion: The DAT Bubble has largely burst, and companies need to hold their positions and wait for a rebound.
December 6th: CoinDesk reported that James Butterfill, Research Director at crypto asset management firm CoinShares, noted in a report the Digital Asset Treasury (DAT) bubble has essentially burst.
Companies that once viewed token treasuries as a growth engine—trading at 3 to 10 times their market value net asset value (mNAV) by summer 2025—have now fallen to around 1x or lower, marking a sharp correction in their trading model.
The next trend hinges on market behavior: either price declines spark disorderly selling, or firms hold positions and wait for a rebound. Butterfill leans toward the latter, citing improved macro conditions and a potential December interest rate cut that would support cryptocurrencies.
He highlighted a bigger structural challenge: a group of firms previously amassed large treasury assets in the open market but failed to build sustainable businesses, causing reputational damage.
Today, investors are less tolerant of equity dilution without actual ope
12 minutes ago
September Core PCE Inflation Cools, Setting the Stage for Fed Rate Cut Next Week
On December 5, the Federal Reserve’s preferred inflation measure remained below 3% in September and posted a modest monthly gain— a development that may not block the central bank from considering a rate cut at its meeting next week.
The U.S. Commerce Department reported Friday that the September PCE price index climbed 0.3% month-over-month, nudging the annual rate slightly higher to 2.8% from 2.7% in August. The core PCE index—stripping out volatile food and energy costs—dropped to an annual 2.8% from 2.9% in August.
The monthly gain aligned broadly with Wall Street’s forecasts. Typically, the Fed would have complete data on October inflation and November employment ahead of its final policy meeting of the year.
But a government shutdown delayed the release of this data, forcing the Fed to weigh its next steps using a set of outdated official economic indicators. At next week’s meeting, policymakers will debate how to balance elevated inflation and a cooling labor market— a
12 minutes ago
Yiliahua: Fusaka Upgrade Causes Ethereum Gas Fee Spike, Due to EIP-7918 Introducing Fee Floor
On December 5th, Li Hua, founder of Liquid Capital (formerly LD Capital), posted on social media:
"Since Ethereum’s Fusaka upgrade, the blob base fee has skyrocketed by 15 million times. The core reason is the addition of EIP-7918, which introduces a ‘base fee mechanism’ for blob fees. Previously, blob fees had no minimum limit and stayed stuck at 1 wei (nearly free) for a long time—leaving nodes bearing costs like KZG verification without reasonable returns. Post-upgrade, blob fees must be ≥ 1/15.258 of the L1 execution base fee, directly anchoring to actual network costs.
This design not only ensures prices reflect real resource consumption (stopping L2s from free-riding on network resources) but also regulates blob traffic via price fluctuations to prevent congestion. Plus, PeerDAS technology has boosted blob storage capacity.
Additionally, blob fees are part of the ETH burn mechanism. It’s estimated future burns could be 8x higher, with blob fees potentially contributing 3
12 minutes ago
If Ethereum breaks above $3200, the total open interest liquidation on major CEXs will reach $764 million.
As of December 5th, Coinglass data shows:
- If Ethereum breaks above $3200, cumulative short liquidation intensity across mainstream centralized exchanges (CEXs) will hit $764 million.
- Conversely, a drop below $3000 would trigger $973 million in cumulative long liquidation intensity on the same platforms.
BlockBeats Note: Liquidation charts do not display the exact number of contracts to be liquidated or their precise value. Instead, bars reflect each cluster’s significance relative to adjacent clusters (i.e., "intensity"). Higher bars indicate a more intense reaction from a liquidity cascade when the price hits that level.
12 minutes ago
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