Bitget Daily Digest (February 20) | Trump-linked crypto project WLFI acquires $SEI, "Broccoli" narrative hype returns 

Market highlights

1. The AI sector had a mixed performance, with on-chain tokens $ANON and $SNAI surging while other projects continued their steady progress. $VIRTUAL released a paper on "autonomous commerce," showcasing AI agent collaboration. $AI16Z introduced new privacy features, $GAME integrated with DeepSeek, and $ANON optimized cross-chain trading. $VVV launched a USD-based API, and $COOKIE hit another user growth milestone, with v1.0 expected to go live by the end of the quarter.

2. The U.S. SEC accepted 21Shares' application for staking with its spot ETH ETF, unlocking potential new yield opportunities. Montana's Strategic Bitcoin Reserve bill passed committee review and is now set for a House vote, potentially establishing the first state-level BTC reserve plan. Hashdex gained approval to launch the world's first spot XRP ETF in Brazil, which could bring fresh capital inflows.

3. WLFI, a Trump-linked crypto project, acquired $SEI, briefly boosting its price. Meanwhile, ETH gas fees dropped 70% month-over-month, hitting their lowest level since July 2020, which could revive DApp activity. The trending AI project Kaito AI announced that $KAITO claims will open tomorrow, with its tokenomics model set to be released before the claim event.

4. The rise of $LIBRA (the presidential coin) and charity-related initiatives have fueled speculation around the new token, $BROCCOLI, reigniting the "Broccoli" narrative. Top wallet Alpha, associated with contract addresses ending in f2b, 714, and f3b, has further stoked the hype surrounding "Broccoli" tokens.

Market overview

1. $BTC fluctuates upwards, driving the market up slightly. All but $APT, $SOL, and $S from the top 50 tokens turned green. Farcaster AI's token issuance platform, $CLANKER, surged to the top, followed by $SUNDOG.

2. European stocks retraced with renewed tariff threats, while the SP 500 hit new highs. U.S. Treasury bonds rebounded, and quantum computing concept stocks rose .

3. Currently standing at 96,436 USDT, Bitcoin is in a potential liquidation zone. A 1000-point drop to around 95,436 USDT could trigger over $126 million in cumulative long-position liquidations. Conversely, a rise to 97,436 USDT could lead to more than $338 million in cumulative short-position liquidations. With short liquidation volumes far surpassing long positions, it's advisable to manage leverage carefully to avoid large-scale liquidations. 

4. Over the past 24 hours, the BTC spot market recorded $13.7 billion in inflows and $13.4 billion in outflows, resulting in a net outflow of $300 million. 

5. In the last 24 hours, $ETH, $SOL, $BNB, $PEPE, and $WLD 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 outflow of $8.6504 million, while the cumulative inflows amount to $40.048 billion, with total holdings at $110.763 billion. U.S. spot Ethereum ETFs saw a single-day outflow of $5.4518 million, with cumulative inflows of $3.152 billion and total holdings of $10.117 billion. This represents a decrease in outflow compared to the previous day.  

Highlights on X

1. 0x Jeff: AI takes center stage at Consensus Hong Kong – Practical transformation and decentralized infrastructure reshape the Industry

The Consensus Hong Kong event highlighted the shift in AI from conversational agents to real-world applications, with trading, prediction markets, and DeFAI emerging as key areas. Projects are integrating machine learning models to overcome the limitations of LLM chatbot. Discussions on decentralized AI infrastructure centered around data sovereignty, compute validation, and privacy protection. Users are increasingly opting for local fine-tuned model deployments for a strategic edge. Current AI agents are evolving through skill upgrades, and fast-moving teams are well-positioned to lead during a market recovery. Despite weak token performance, builders remain highly motivated, offering a stark contrast to the broader market sentiment. The focus has shifted from hype-driven speculation to delivering real utility and empowering user sovereignty.

X post: https://x.com/Defi0xJeff/status/1892205647539925290

2. Yuyue: Public chain battles – fragmented narratives and survival strategies

The public chain sector is in a narrative vacuum, with leading projects struggling to maintain momentum: Solana (SOL) experienced a brief revival through memecoin and legacy project activity following PAI refund liquidity injections but still lacks a cohesive narrative. Meanwhile, BNB Chain's chaotic "CZ-style" operations have highlighted execution gaps in on-chain events and token promotions, resulting in a subpar retail user experience. On the other hand, Sonic (formerly FTM) gained momentum thanks to Andre Cronje's Shadow mining incentives, although its long-term sustainability remains uncertain. Avalanche (AVAX) suffers from scattered narratives and occasional token speculation. APT rebounded after a deep drop, fueled by a new CEO's initiatives, but skepticism remains. This "Warring States" era of public chains shows no clear leader, and competition will intensify following SOL's brief cooldown. The fragmented ecosystem recovery struggles to break free from the "narrative vacuum," with capital focused on short-term hotspots in a flat market. The sector awaits a breakthrough narrative to restore confidence.

X post: https://x.com/yuyue_chris/status/1892268778626699657

3. @AltcoinSherpa: Short-term opportunities driven by technical factors and ecosystem narratives

The market is focusing on high-volatility assets for short-term opportunities: $BERA is gaining attention due to a technical breakout from key support/resistance levels and undervalued on-chain activity. $S (formerly FTM) benefits from a strong rally driven by Andre Cronje's ecosystem development and rebranding. $OM maintains low volatility but investors should be cautious about possible long-term consolidation risks. $ARC's extreme volatility makes it excellent for trading in both directions as its price remains near its historical point of control (PoC). $HYPE faces some pressure after the launch of HyperEVM, but its valuation should remain stable. $IP has been added to the watchlist due to unusual price action and low attention. Mainstream tokens like AAVE, LINK, and XRP are resilient but lack volatility, causing capital to flow into mid- and small-cap projects. Current strategies focus on technical breakouts (e.g., BERA), ecosystem-driven narratives (e.g., S), and sentiment cycles (e.g., ARC), aiming to capture strong opportunities while managing risks.

X post: https://x.com/AltcoinSherpa/status/1892226607936397514

4. @kiki520_eth: An analysis of HyperEVM

HyperEVM's mainnet remains immature, with poor user experience due to a lack of features, a chaotic early-stage ecosystem (the community-driven HyperSwap pool remains small with rampant scam projects), and minimal wealth effect (3 out of 8 projects have devalued to zero, and the rest have suffered significant losses). Despite these short-term struggles, HyperEVM has long-term potential due to two main factors: (1) Billions are locked in HyperLiquid, and the ecosystem could see a capital influx once staking and release mechanisms improved. (2) Early-stage chaos is part of the growth cycle, and a more mature ecosystem could emerge over time.

X post: https://x.com/kiki520_eth/status/1892001312092704951

Institutional insights

1.Bernstein: U.S. regulators are expected to increase scrutiny over past "debanking" practices within the crypto industry

Read the full article here: https://www.theblock.co/post/342060/bernstein-analysts-see-perfect-storm-that-could-propel-us-stablecoin-regulation-in-2025

2.Matrixport: Overall market leverage remains low, with attention shifting to BTC's downward potential

X post: https://x.com/Matrixport_CN/status/1892106847093653724

3.Glassnode: Futures open interest across the memecoin sector has dropped significantly since their peaks

X post: https://x.com/glassnode/status/1892167279460114624

News updates

1. Trump: We want to stay at the forefront of everything, and one of them is crypto.

2. Binance sued in Nigeria for $81 billion in economic losses and back taxes.

3. Montana Strategic Bitcoin Reserve: Legislation has passed out of committee and is headed for a House floor vote.

4. Japan's Financial Services Agency has approved a new regulatory framework for crypto assets and stablecoins.

5. The CEO of the Hong Kong Securities Regulatory Commission mentions the upcoming virtual asset roadmap could permit staking and margin lending.

Project updates

1. Ethereum transaction fees dropped by 70% week-over-week, reaching their lowest levels in over four years.

2. WLFI spent approximately $250,000 in USDC to purchase nearly 1.1 million SEI.

3. The U.S. SEC is processing 21Shares' proposal to offer staking for its Ethereum ETF.

4. Brazil has approved the first-ever spot XRP ETF, launched by Hashdex.

5. Trump shared an article about XRP on Truth Social.

6. $CATI enters a deflationary phase, with 9 million tokens burned in Q4 2024, and is expected to surpass 100 million in 2025.

7. UniSat has launched Hexa, a Bitcoin hybrid trading engine.

8. On-chain weekly trading volumes have been declining since mid-January, with a significant drop on the Solana network.

9. Talus joins forces with Sui to support next-generation AI agents and utilizes Walrus for on-chain storage.

10. Bitget Wallet now integrates the Monad testnet, allowing users to easily add and interact with the network.

Recommended reads

Solana down 40% in January – Is the "King of Retail Investors" collapsing? 

After Ethereum, Solana is now facing market-wide FUD.

Read the full article here: https://www.bitgetapps.com/zh-CN/news/detail/12560604585345

BTC on-chain data analysis: Has this cycle peaked? 

A deep dive into Bitcoin's on-chain data and key indicators.

Read the full article here: https://www.bitgetapps.com/zh-CN/news/detail/12560604585397