Bitget Daily Digest (February 6) | PENGU completes massive burning, Raydium buyback hits all-time high 

Market highlights

1. Hot sectors like DeFAI and AI agents lead the decline, with average losses exceeding 10%. Only assets such as $NEUR, $ASI, and $MAX have seen gains, while $TRUMP turns upward after a correction. The CMC Altcoin Season Index hits a recent low, and $ETH's supply surpasses pre-PoS Merge levels, with net supply continuing to expand.

2. PENGU completes a massive 12,164,667,616 token burn following its airdrop claim, reducing the circulating supply by 13.69%. This burn ranks as one of the largest in recent times. Berachain has launched $BERA airdrop eligibility checks, with an initial supply of 500 million tokens and an uncapped inflation model at an annual inflation rate of 10%. On-chain data shows Raydium spent $54 million in January to buy back 8.8 million $RAY tokens, marking its highest-ever monthly buyback.

3. The U.S. banking sector may experience significant changes in its crypto partnerships. The Federal Deposit Insurance Corporation (FDIC) plans to adjust its regulatory framework, allowing banks to offer crypto-related services, such as custody and tokenized deposits, without prior regulatory approval. Meanwhile, White House AI and crypto lead David Sacks suggests that crypto regulations could be finalized within the next six months.

4. Bitget Seed unveils its ninth project: $SSE. As an AI-powered social project on Solana, $SSE reaches a market cap of $50 million within four hours of launch, peaking later at $63 million. By leveraging on-chain address activity tracking, social graph analysis, and AI data processing, $SSE defies broader market liquidity constraints and emerges as a standout performer.

Market overview

1. $BTC remains volatile, while the broader market sees declines. TON ecosystem tokens surge in trading volume, with $X and $MAJOR entering the top 10 by volume. Small-cap tokens like $MCH and $GST are seeing rallies.

2. Earnings reports from tech giants drag the Nasdaq lower at market open. The U.S. services PMI data causes a sharp drop in the U.S. dollar index to a one-week low. Gold surges over 1%, hitting its fifth consecutive intraday all-time high.

3. Currently standing at 96,740 USDT, Bitcoin is in a potential liquidation zone. A 1000-point drop to around 95,740 USDT could trigger over $200 million in cumulative long-position liquidations. Conversely, a rise to 97,740 USDT could lead to more than $80 million in cumulative short-position liquidations. With long liquidation volumes far surpassing short positions, it's advisable to manage leverage carefully to avoid large-scale liquidations. 

4. Over the past 24 hours, the BTC spot market recorded $16.5 billion in inflows and $16.9 billion in outflows, resulting in a net outflow of $400 million.

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

6. According to the latest data from SoSoValue, U.S. spot Bitcoin ETFs recorded a single-day inflow of $35.6551 million, bringing cumulative inflows to $40.301 billion, with total holdings reaching $118.406 billion. Meanwhile, spot Ethereum ETFs saw a single-day inflow of $4.1384 million, bringing cumulative inflows to $2.847 billion, with total holdings at $10.034 billion. Both saw positive inflows compared to the previous day. 

Highlights on X

1. @Haotian: From Trump coin mania to AI agent rebirth – breaking and rebuilding the crypto ecosystem

The Trump coin hype may have briefly attracted new users, but it also exposed the industry's speculative excesses like a magnifying glass. This has accelerated the market's shift toward decentralized exchanges (DEXs), suggesting that on-chain ecosystems will dominate in 2025. Meanwhile, AI agent projects, despite being hit hard by the computing power pricing revolution, are undergoing a necessary phase of bubble cleansing. Their struggles with delayed real-world adoption and lack of a clear valuation framework are forcing an industry-wide restructuring. However, by deeply integrating crypto-economics with artificial intelligence, AI agents could emerge stronger. The current bearish sentiment is driven by an imbalance between excess assets and insufficient new capital inflows. To break free from the zero-sum battle over existing liquidity, the market must embrace a new "product + application" cycle driven by AI agents, leading to a generational upgrade of the on-chain ecosystem through destruction and reconstruction.

X post: https://x.com/tmel0211/status/1887022743469891872

2. @Michael_Liu93: Liquidity recovery and breakthroughs with AI value—a survival guide for the crypto market in a volatile cycle

The crypto market is in the early stages of global liquidity easing, but the cautious pace of rate cuts suggests that the market will face 6–12 months of bottoming and consolidation. However, on-chain ecosystems will continue to present localized opportunities. The AI sector has evolved from a hype-driven concept to actual product deployment, yet it remains bottlenecked due to a lack of real user adoption and value creation. To break through, the next phase must bring killer applications that solve real trading and liquidity challenges. Project teams should focus on building user-centric products. Teams without tokens should wait for liquidity recovery before launching. Projects with existing tokens should accumulate at low levels. Investors should prioritize AI products with strong user retention. Beware of purely speculative hype and look for solid projects that can endure the industry's inevitable "build-validate-eliminate" cycle to survive the bear market.

X post: https://x.com/Michael_Liu93/status/1885939576939986959

3. Holdings: Market stalemate – capital struggles, narrative breakdowns, and the old vs. new cycle tug-of-war

Despite Bitcoin hitting a new high driven by ETF inflows, Ethereum, Solana, and other major assets have yet to reclaim their previous peaks, exposing the market's weak capital inflows outside of BTC. At the same time, memecoin rotations create an illusion of prosperity, but in reality, speculative capital is caught in a zero-sum game of "mutual slaughter" within a fixed market. The scale of capital is even smaller than what a single altcoin project attracted in the previous cycle. The oversupply of projects, combined with the retreat of risk capital, is exerting dual pressure on the market. The market is currently trapped in a 'liquidity dam' scenario: BTC’s financialization via ETFs is absorbing external capital, on-chain ecosystems are relying on internal liquidity recycling to stay active, and sectors like AI are draining VC, further exacerbating the funding shortage. This capital crunch is both a lingering aftershock from the 2021 bubble burst and a signal that the industry needs a structural reset — either by eliminating excess projects or creating a breakthrough narrative, such as mass adoption of Real-World Assets (RWA), to unlock a new market cycle.

X post: https://x.com/cmsholdings/status/1887220298476388567

4. hitesh.eth's insights of the dilemma of Berachain's tokenomics

Berachain allocated 34% of its tokens to institutional investors at a low price of $1.20, raising $142 million and reaching a valuation of $414 million. Based on the institutional returns of similar projects like SUI (15x) and Sei (10x), the BERA token would need to reach $10 – $15 upon listing to meet the VC expectations. However, the current market faces three major obstacles: 1. Liquidity constraints due to 34% of tokens being held by institutions. 2. Retail investor interest is diverted by memecoin speculation. 3. The narrative momentum of new public blockchains is fading. Additionally, the continuous decline of SUI/Sei post-listing has created a valuation anchor trap. Even with bullish market sentiment, BERA might struggle to reach $10, while in a bearish market, it could potentially drop to the $5 range, becoming a prime example of testing the "VC premium bubble."

X post: https://x.com/hmalviya9/status/1887190929620226139

Institutional insights

1.CryptoQuant: 31,226 BTC flowed into whale addresses today

Article: https://x.com/cryptoquant_com/status/1887119392762196392

2.Greeks.live: Whales are aggressively buying call options during the dip, signaling continued market optimism

Article: https://x.com/BTC__options/status/1887083812699746808

3.Citi: In the long run, the correlation between the crypto and stock market may weaken

Article: https://www.coindesk.com/markets/2025/02/05/equities-crypto-relationship-is-likely-to-weaken-in-the-long-term-citi-says

4.Kaiko: Short-term funding rates for BTC and ETH remain low, as investors try to find a clear direction

Article: https://research.kaiko.com/insights/tariff-driven-tumult

News updates

1. New Mexico Senator proposes a Bitcoin strategic reserve bill, suggesting allocating 5% of public funds to BTC.

2. The U.S. FDIC plans to revise crypto guidelines, allowing banks to engage in certain crypto-related activities.

3. European Central Bank official supports a gradual rate cut of 25 basis points.

4. Hong Kong legislator Johnny Ng urges a faster feasibility study on adding Bitcoin to Hong Kong’s strategic reserves.

5. Korea Financial Investment Association president pledges active support for securitization of tokenized assets and crypto ETF approval.

Project updates

1. Messari report: Galxe ecosystem expands rapidly, recording 287% user growth.

2. Berachain airdrop eligibility check is now live, with 500 million $BERA allocated for Genesis distribution.

3. Berachain to reveal tokenomics, with TGE set for February 6.

4. PENGU airdrop claim period ends – 13.69% of unclaimed supply has been burned.

5. Aerodrome Public Goods Fund has repurchased $1.5 million worth of AERO tokens.

6. Memecoin project PAIN raised 185,976 SOL in its presale but will refund 80% of the raised funds.

7. AVAX network activity surged in late January, reaching its highest level since May 2023.

8. Ondo Finance launches Ondo GM, providing global investors on-chain access to U.S. public securities.

9. Ethereum's supply has surpassed pre-Merge PoS levels.

10. Phantom wallet generated over $29 million in revenue in January, marking a new all-time high.

Recommended reads

1.From VC coins to the memecoin craze – the crypto market is exhausted

Since early 2024, the market has shifted from VC-driven investments to memecoin hype. While memecoins initially offered retail traders a fairer playing field, they ultimately became overly speculative, worsening market conditions.

Read the full article here: https://www.bitgetapps.com/zh-CN/news/detail/12560604549768

2.Lightspark co-founder: Should the U.S. establish a Bitcoin strategic reserve? 

Bitcoin reserve advocates aren't wrong about its long-term strategic significance —the issue lies in timing.

Read the full article here: https://www.bitgetapps.com/zh-CN/news/detail/12560604549122