Market Overview - Crypto markets are stable with Bitcoin trading above $89,000, indicating traders are considering year-end positioning [1] - Bitcoin is priced at approximately $89,441, showing a gain of over 1% for the day, while Ethereum is around $3,032 with modest gains [2] - Major altcoins like BNB, XRP, and Solana are experiencing low-volatility movements, with BNB near $864 and XRP at $1.92 [2] Privacy Coins and Altcoins - Privacy-focused tokens are gaining traction, with Monero trading around $471 after a 2% increase, and Zcash nearing $443, reflecting strong weekly momentum [3] - Niche projects are also attracting speculative inflows, with gaming token BEAT seeing a significant rise in trading volume and market cap, while Hyperliquid's HYPE token is gaining attention due to whale purchases [4] Gold Market Influence - Gold prices have surpassed $4,400 per ounce, setting new records and drawing defensive capital away from risk assets, yet Bitcoin's stability contrasts with previous cycles where gold rallies led to crypto pullbacks [5] Whale Activity and Institutional Positioning - Whale behavior shows mixed sentiment, with one large holder exiting a significant AAVE position at a loss, while others are accumulating sETH and increasing exposure to HYPE, which is trading near $25.48 after a nearly 5% daily gain [6] - Institutional positioning remains stable, with Bitcoin ETFs, particularly BlackRock's IBIT, attracting around $25 billion in inflows in 2025, indicating sustained demand for regulated Bitcoin exposure [7] Market Sentiment - As Christmas approaches, market sentiment is cautious with elevated fear indicators and thinning liquidity, although historical trends suggest potential late-December rebounds [7]

Core Insights - Coinbase's new lending product is generating profits through various channels, including transaction fees and performance fees, although not all profits are clearly visible on-chain [1][2] - The initiative aims to meet the increasing demand for digital asset utilization, promoting financial empowerment among users [2] - The arrangement with Morpho involves a curator named Steakhouse, which is not fully detailed in the product's FAQ, despite claims of no Coinbase fees [2] Group 1 - Users can deposit wrapped Bitcoin and USDC into vaults on Morpho, allowing them to either use Bitcoin as collateral for loans or earn yield on USDC deposits [2] - The lending market on Morpho has surpassed $1 billion in originations, indicating significant user engagement [2] - Performance fees are directed to curators who act as risk managers, with customizable fees based on vault performance [3] Group 2 - The vault with the highest deposits on Morpho is curated by Spark, which takes a 10% cut from the 6% APY generated from approximately $700 million in USDC deposits [4] - Steakhouse curates a vault that offers a 5.6% APY on USDC, with a 25% performance fee, one of the highest on the platform [5] - The selection of Steakhouse as a starting vault is attributed to its liquid collateral exposure and overcollateralization, providing additional security for lenders [6]

3/ The community had earlier approved the use of wrapped Bitcoin, and introduced new governance rules for adding future $BTC wrappers.The staking upgrade is expected to go live in the coming weeks, allowing users to stake and delegate their wrapped BTC to earn network rewards. ...