Bitget Daily Digest (January 7) | DWF ventures into AI DeFi, industry experts predict a Q1 market peak

Market highlights

1. AI agent's innovative multi-agent collaboration protocol $SWARMS has surged several-fold over the past week, crossing a $450 million market cap. ai16z founder Shaw repeatedly voiced skepticism ("FUD"), fueling market speculation that $SWARMS could pose a threat to ai16z's market dominance. Key tokens within the ecosystem, such as $MCS, $SPORES, and $CREATE, are attracting significant investor interest. 

2. The DeFAI (DeFi + AI) narrative is gaining traction across social media, spotlighting innovations like abstraction layers, autonomous trading agents, and AI-powered DApps. Projects such as $GRIFFAIN, $ORBIT/$GRIFT, Almanak, and ARMA are leading the charge with their pioneering potential.

3. Market maker DWF Labs has announced a $20 million investment in the AI DeFi protocol HeyAnon. Previously, they backed Bittensor's TAO Cat, the first self-improving AI agent, which saw a notable price surge. The market is closely watching for the "DWF effect." 

4. ACT is set to release key updates today, including news on its development team, a new CTO, ACT DAO, token framework, and funding progress for new initiatives. Meanwhile, Arthur Hayes has reiterated his forecast for a short-term market peak by the end of Q1. 

 

Market overview

1. Bitcoin has surged past the $100,000 mark, gaining thousands of dollars in a short time. Tokens like $ARC and $XELS led the rally, though overall market sentiment remains mixed, with more decliners than gainers.

2. The SP 500 and NASDAQ rebounded for the second consecutive day, buoyed by U.S. December Services PMI reaching its highest level since March 2022. The job market contraction has also ended, fueling positive sentiment. 

3. Currently standing at 102,081 USDT, Bitcoin is in a potential liquidation zone. A 1000-point drop to around 101,081 USDT could trigger over $530 million in cumulative long-position liquidations. Conversely, a rise to 103,081 USDT could lead to more than $546 million in cumulative short-position liquidations. Both long and short positions should exercise caution and manage leverage prudently to avoid large-scale liquidations. 

4. Over the past 24 hours, BTC saw $4.042 billion in inflows and $3.943 billion in outflows, resulting in a net inflow of $99 million. 

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

6. Latest data from SoSoValue: U.S. BTC spot ETFs recorded a single-day inflow of $230 million, bringing cumulative inflows to $36.141 billion, with total holdings reaching $112.824 billion. Both saw substantial inflows compared to the previous day. 

 

Highlights on X

1. Evan: Five key areas shaping the "crypto × AI Agent" trend

AI agents are emerging as a new growth engine within the crypto ecosystem, driving innovation across frameworks, DeFi, and consumer applications. Framework-based projects like Virtuals and ai16z are accelerating agent development and value capture. Meanwhile, DeFAI agents are transforming on-chain financial experiences by efficiently executing complex transactions. These agents are also extending into metaverse and gaming applications, providing immersive consumer experiences with 3D interactivity and dynamic personalities. Autonomous agents' verifiability will usher in self-evolution driven by economic accountability. Combined with decentralized organizations’ intelligent collaboration, crypto × AI agents are poised to lead the next revolution in on-chain economics.

X post: https://x.com/0x3van/status/1876142580737487188

2. Daniele: DeFAI — The deep integration of AI and DeFi

DeFAI not only simplifies trading interfaces but also propels DeFi into an era of intelligence through autonomous trading agents and AI-driven DApps. Projects like Griffain and Orbit are enhancing compatibility and efficiency at the abstraction layer. Autonomous trading agents such as Almanak and Axal can execute multi-step complex strategies intelligently, while AI-powered DApps like Mode Network and Amplifi Lending Agents elevate user experiences. Additionally, projects like Phala Network and HeyAnonAI are offering robust technical support, strengthening the DeFAI ecosystem.

X post: https://x.com/danielesesta/status/1875512495856619548

3. Oar.bit: Crypto × AI agents – niche sectors and project evaluation

AI agent projects are currently divided into categories such as infrastructure, technical frameworks, applications, and memes. Investors should evaluate potential based on factors like code quality, market traction, platform revenue, and smart money movements. Tools that track real-time social media discussions, on-chain revenue, along with hackathon projects and KOL recommendations, can help identify high-quality and potential projects. Although the market is in its early stages with strong speculative sentiment, the technology and applications of AI agents are maturing. They are set to play a pivotal role in on-chain ecosystem services and automation, offering investors fresh blue-ocean opportunities.

X post: https://x.com/0xOar/status/1876237728033185953

4. Haotian: The new AI agent-driven metaverse standard and the logic behind Hyperfy's explosive popularity

Hyperfy, an AI-agent-powered 3D modeling framework, addresses the high costs and inefficiencies of traditional metaverse content production by generating 3D content through AI. It creates a personalized, open-world narrative for the metaverse. Built on Three.js technology, Hyperfy allows users to generate 3D scenes via text descriptions and adjust layouts in real time. This not only lowers the entry barrier but also significantly boosts development efficiency. Shaw has championed Hyperfy's integration into the ai16z ecosystem, positioning it as a direct competitor to Virtual's GAME framework, further strengthening its strategic development. While current user experiences may be limited, Hyperfy's AI agent-driven metaverse potential — spanning 3D education, gaming, and virtual meetings — has left room for imagination and captured immense market interest.

X post: https://x.com/tmel0211/status/1876140766822855129

 

Institutional insights

1.CryptoQuant: The current Bitcoin bull market could become the longest in history.

X post: https://x.com/ki_young_ju/status/1876370242408239405

2.JP Morgan: Inflation and geopolitical risks may support  long-term demand for gold and Bitcoin.

Article: https://cointelegraph.com/news/bitcoin-debasement-trade-jpmorgan

3.Messari: DePIN sector may achieve 100 – 1000x growth in emerging markets by 2025.

Original link: https://messari.io/report/state-of-depin-2024?utm_source=twitterutm_medium=organic_socialutm_campaign=State_of_DePINdestination=State_of_DePIN

4.Bitfinex report: Miner selling pressure eases, and BTC is expected to rise further in the medium term.

Original link: https://blog.bitfinex.com/bitfinex-alpha/bitfinex-alpha-btc-sell-side-liquidity-drying-up/

 

News updates

1. The Federal Reserve's Michael Barr announces that he will resign as Vice Chairman of Supervision on February 28, 2025.

2. Fed Governor Lisa Cook: The U.S. Federal Reserve can adopt a cautious approach toward further interest rate cuts.

3. Do Kwon may face up to 130 years in prison; the U.S. Department of Justice must prove criminal intent.

 

Project updates

1. Babylon to launch its Phase-2 testnet on January 8.

2. Eliza Labs to partner with EigenLayer to host an AI agent hackathon. Registrations are now open.

3. DWF Labs invests $20 million through its AI agent fund to support HeyAnon.

4. Sanctum announces that the CLOUD's staking service will be launched this month.

5. DIN plans to launch an AI agent blockchain to address challenges with data and execution environments.

6. ai16z co-founder: Currently collaborating with Orca to develop DeFi agents, and the widespread adoption of AI agents may lead to a new DeFi Summer.

7. ZKsync Ignite incentive program launches tonight, with 325 million ZK tokens to be distributed over nine months.

8. Arbitrum unveils a 225 million ARB Gaming Catalyst Program, aiming to fund 100 projects over three years.

9. UXLINK ecosystem fund UFLY Labs invests in Sonic SVM and establishes a strategic partnership.

10. DeFi protocol revenue returns to 2021 levels. Newcomer pump.fun reported $313 million in fees.

 

Recommended reads

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Read the full article here: https://www.bitgetapps.com/zh-CN/news/detail/12560604474240

 

a16z's 2025 seven core crypto trends and key developments to watch

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