Overview

This report focuses on blockchain industry developments from December 2nd to December 6th, 2024. XRP’s market cap surged 380%, surpassing USDT to become the third-largest cryptocurrency, influenced by expectations of the SEC Chairman’s departure and Ripple’s ecosystem expansion. WisdomTree filed for an XRP ETF, advancing institutional market penetration. Bitcoin community faces growing division over the CTV functionality proposal, highlighting decentralized governance challenges. Wormhole launched the W token staking program, with an initial distribution of 50 million tokens and plans for multi-chain governance. Tether minted 1 billion USDT, bringing total circulation to 72.9 billion, injecting more liquidity into the market.

Projects

XRP Market Cap Surpasses USDT and SOL to Become Third-Largest Token, Surging 380% in a Month

Recently, the veteran cryptocurrency XRP has shown remarkable performance, continuously rising and surpassing USDT to become the third largest cryptocurrency by market cap. According to CMC data, XRP’s price skyrocketed from $0.51 to $2.47 over the past month, representing a 380% increase, with an additional 32% gain in the last 24 hours alone. Its market capitalization has now reached $141.6 billion, exceeding USDT’s $134.2 billion. The market widely attributes this strong performance to SEC Chairman Gary Gensler’s announcement of his departure in January 2024. Additionally, Trump’s election prospects and Ripple’s off-chain ecosystem development are considered key drivers of XRP’s significant price surge, marking a celebratory rally following years of litigation with the SEC. [1]

WisdomTree Files XRP ETF Application with SEC

According to an S-1 filing with the Securities and Exchange Commission (SEC), WisdomTree has applied to launch the WisdomTree XRP Fund, an exchange-traded fund designed to track XRP prices. The fund plans to list on Cboe BZX Exchange, Inc. under the ticker “TICKER,” with The Bank of New York Mellon serving as administrator, fund accountant, and transfer agent. This development represents another step forward in XRP’s institutional adoption and financial product innovation.

The timing of this filing aligns with XRP’s notable price surge and market expectations of the SEC leadership transition after January 20, 2025. While many investors consider current Chairman Gary Gensler crypto-skeptical, markets anticipate that new leadership could take a more accommodating regulatory approach—potentially paving the way for more institutional-grade altcoin ETFs in the US and broader crypto market growth. Yet investors should remain cautious, as this trend could still involve speculative selling, particularly for volatile altcoins. Furthermore, while institutional acceptance is promising, it doesn’t guarantee market maturity—regulatory oversight and risk management remain crucial considerations.[2]

Bitcoin to Face New UASF Proposal, Community Division Emerges

Bitcoin.org domain maintainer Cobra recently alerted the community that some Bitcoin users plan to introduce the Check Template Verify (CTV) functionality through a User Activated Soft Fork (UASF) in 2025. CTV, proposed by Jeremy Lubin, aims to improve Bitcoin’s contract mechanism by introducing spending conditions for transactions, such as vault functionality and scheduled transaction cancellation. While this mechanism could enhance Bitcoin transaction security, it also presents challenges like reduced fungibility and potential security risks from new code implementation. Cobra noted that the proposal might come from anonymous developers outside the Bitcoin Core project, and the community hasn’t paid sufficient attention to it. The community is divided on whether to adopt this functionality, with some believing the contract mechanism brings substantial improvements while others question its necessity.

The controversy surrounding this proposal highlights the polarization in Bitcoin’s development direction - a conflict between “conservatives” who want to maintain the status quo and “innovators” pushing for improvements. This division could impact Bitcoin’s future development path, while the UASF mechanism once again demonstrates Bitcoin’s decentralized governance nature, requiring the community to find a balance between innovation and stability. [3]

Wormhole Launches W Token Staking Program with 50 Million Token Minimum Reward

Cross-chain protocol Wormhole announces the official launch of its W token Staking Rewards Program (SRP). Wormhole is a decentralized universal messaging protocol designed to help developers and users build cross-chain applications, maximizing the advantages of multiple ecosystems. Users can now stake W tokens on Solana and EVM chains, including Ethereum, Arbitrum, Optimism, and Base. The first reward period, retroactive to June 6, 2024, when EVM chain staking began, will distribute no less than 50 million W tokens as rewards.

The program operates through the newly launched W Dashboard, where users can manage staking, view detailed metrics, and track rewards. Wormhole plans to launch its multi-chain governance system MultiGov in Q1 2025, enabling stakers to participate in voting and executing cross-chain governance proposals. Currently, the community has access to approximately 858 million W tokens, representing 50.5% of the original supply of 1.7 billion tokens. [4]

Tether Treasury Mints 1 Billion USDT on Ethereum Network

On December 6th, Tether Treasury minted 1 billion USDT on the Ethereum network, further increasing the total USDT circulation in the market to 72.9 billion tokens. As one of the world’s largest stablecoins, changes in USDT minting volume significantly impact cryptocurrency market liquidity and stability. This new minting by Tether may be related to changes in market demand, increased liquidity needs, or other relevant factors, further reflecting USDT’s role as a crucial medium in digital asset trading. [5]

Notice
Users should exercise caution when participating, be mindful of risks, and conduct thorough research before involvement. Gate.io does not guarantee the future development of projects.


References:

1. Gate.io, https://www.gate.io/price/XRP
2. SEC, https://www.sec.gov/Archives/edgar/data/2046791/000121465924019800/wtxrp112224s1.htm#useofproceeds
3. X，https://x.com/CobraBitcoin/status/1863006822048669961
4. Wormhole, https://wormhole.com/blog/w-staking-rewards-program
5. Tether, https://studio.glassnode.com/metrics?a=USDT

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Disclaimer
Investing in the cryptocurrency market involves high risk, and it is recommended that users conduct independent research and fully understand the nature of the assets and products they are purchasing before making any investment decisions. Gate.io is not responsible for any losses or damages caused by such investment decisions.