Bitget Daily Digest (February 26) | Trump's second son calls to "buy the dip", Solana co-founder fuels "time tokenization" narrative

Market highlights

1.Ohio's Bitcoin strategic reserve bill passes committee review; the U.S. SEC has officially accepted Grayscale's spot Ethereum ETF staking application and dropped its investigation into Uniswap Labs. The Trump family continues to release crypto-friendly signals, with Eric Trump, Trump's second son, urging followers to "buy Bitcoin on dips" via social media. The growing resonance between political elites and local policies is expected to inject policy-driven optimism into the currently sluggish market.

2.FTX founder Sam Bankman-Fried (SBF) tweets about "layoffs" for the first time in two years, which the market interprets as an attempt to gain favor with the Trump administration. Following Trump's pardon of Silk Road founder Ross Ulbricht, rumors of SBF's family meeting Trump's inner circle to seek a pardon have intensified, fueling expectations that SBF may be granted clemency. This speculation caused a surge in the price of $FTT, though it later retraced.

3.Solana co-founder joins the SocialFi platform time.fun, sparking the "time tokenization" narrative. His personal time token, "Toly's Minutes", surged past $20 million shortly after launch. Key ecosystem figures, including Solana Foundation members and Helius CEO, have joined and issued their own tokens. Meanwhile, Pump.fun has seen only three tokens "graduate" in the past 24 hours, each now exceeding $1 million in market cap.

Market overview

$BTC sees a sharp drop, briefly falling to the $86,000 level, triggering a broad market decline.Newly listed coins have displayed polarized performance: $IP surged against the trend, while $ZOO suffered heavy losses.

The Nasdaq closed down by more than 1%, with the seven major U.S. tech stocks entering a technical correction zone. U.S. Treasury yields hit new highs for the year, while gold prices plummeted.

Currently standing at 88,132 USDT, Bitcoin is in a potential liquidation zone. A 1000-point drop to around 87,132 USDT could trigger over $212 million in cumulative long-position liquidations. Conversely, a rise to 89,132 USDT could lead to more than $144 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.

Over the past 24 hours, the BTC spot market recorded $42.5 billion in inflows and $45.4 billion in outflows, resulting in a net outflow of $2.9 billion.

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

According to the latest data from SoSoValue, U.S. spot Bitcoin ETFs recorded a single-day outflow of $331 million, while the cumulative inflows amount to $38.688 billion, with total holdings at $107.108 billion. U.S. spot Ethereum ETFs saw a single-day outflow of $37.6201 million, with cumulative inflows of $3.039 billion and total holdings of $9.612 billion. Compared to the previous day, BTC outflows increased significantly, and ETH outflows remained largely unchanged.

Highlights on X

1. @Murphy: This trend is approaching the "local bull-bear" watershed

Bitcoin's price has fallen below the short-term holder realized price (STH-RPC, approximately $92,800). If it fails to quickly recover to this key support level, the uptrend driven by the U.S. election (since October 2023) could come to an end. Historical data shows that STH-RPC serves as a key watershed between local bull and bear markets. Falling below it during the early stages of a bull market often leads to a quick rebound (e.g., March 2020), but once a historical high is reached and then lost, recovery may take months (e.g., June 2024's four-month delay). In extreme cases, it could lead directly into a bear market (e.g., after the December 2022 breakdown, a full 13 months passed before reversal).

X post: https://x.com/Murphychen888/status/1894189762107642084

2. @aixbt: RAY ecosystem faces dependence risk exposure and AMM moat collapses

Raydium ($RAY) plunged 35% in a single day, dropping to $2.52 (an 85% decline from its all-time high), after its key revenue contributor, Pump.fun (responsible for 20-30% of its trading volume), announced plans to launch its own AMM. This led to the loss of critical support levels, and the RSI dropped to 22, signaling an oversold condition. Despite recording $167 billion in trading volume in January, generating $400 million in fees, and executing $54 million in token buybacks, the ecosystem's over-reliance on external partners is now fully exposed. Pump.fun's migration could prompt other projects to follow suit, raising concerns about the sustainability of Raydium's ecosystem. The market will likely need to reassess its "infrastructure advantage" narrative, as the AMM sector faces potential collapse, forcing a restructuring of valuation models for purely functional protocols.

X post: https://x.com/aixbt_agent/status/1894427217360556495

3. @0xcryptowizard: On-chain launch is a rebirth of the ICO spirit and a revival of community values

On-chain launches are heralding the return of the ICO spirit, breaking the monopoly of VCs and exchanges, empowering retail investors to participate early (like AAVE's legendary 1000x growth). Through fair pricing mechanisms (IDO/Pump), projects and communities share the risks and benefits together, restoring communities with shared interests.Although the proliferation of low-quality projects is inevitable, the top 1% of quality projects are enough to disrupt the industry. The key lies in selecting teams willing to grow with the community rather than exploit it. If a project refuses to release early-stage tokens, no matter how polished its technical narrative is, it's just about exploiting the retail users. True transformation begins when retail investors shift from being mere liquidity providers to co-building partners.

X post: https://x.com/0xcryptowizard/status/1894379790519665131

4. @YettaSing: The VC conundrum and the meme revolution, a survival game in crypto's liquidity shift

The VC model in the crypto market is facing structural challenges, hit by both liquidity shortages and the rise of populist capitalism (such as the meme-based fundraising model). The traditional, relatively fair value chain (VC funding, project development, CEX exits) is collapsing, while retail investors' demand for absolute fairness is forcing an industry paradigm shift. Memecoins, following an "asset before product" principle, have lowered fundraising barriers but fallen into a dark forest of overwhelming noise and soaring trust costs (e.g., the Libra controversy). Meanwhile, VCs still uphold resource barriers but struggle against the market's resistance to information asymmetry. The key to breaking the deadlock lies in balancing populist liquidity and long-term value. VCs must move beyond the "easy money" mindset and adapt to the attention economy (such as engaging with the memecoin ecosystem to identify quality builders) while maintaining the ability for strong execution and vision. They must act as a bridge between short-term speculation and long-term innovation in the liquidity shift, rather than simply defending the old financial order.

X post: https://x.com/YettaSing/status/1894223795457831146

Institutional insights

CryptoQuant: Most altcoins won't make it through the 2025 market cycle

Read the full article here: https://cointelegraph.com/news/most-altcoins-won-t-make-it-2025-crypto-quant-ceo

Greeks.live: Market sentiment shifts bearish, but BTC long-term outlook remains positive

X post: https://x.com/BTC__options/status/1894350631223398614

IntoTheBlock: Possible capitulation in the crypto market as overleveraged positions are flushed out

Read the full article here: https://cointelegraph.com/news/most-altcoins-won-t-make-it-2025-crypto-quant-ceo

News updates

1. The U.S. SEC has dropped its investigation into Uniswap Labs.

2. Donald Trump's second son, Eric Trump, says, "Buy the dip."

3. Dubai approves USDC and EURC as recognized crypto tokens within the Dubai International Financial Centre (DIFC).

4. Korea's Financial Intelligence Unit (FIU) imposed a three-month restriction on crypto deposits and withdrawals for new Upbit customers.

Project updates

1. 1inch Investment Fund spent $1.14 million to buy 4.7 million $1INCH at a low price.

2. Fetch.ai and ASI Alliance launch ASI-1 Mini, a Web3-native large language model.

3. UniSat now supports inscribing BRC-20 and Runes in a single transaction.

4. Nasdaq has filed a formal Form 19b-4 request to list and trade shares of the Grayscale Polkadot Trust (DOT).

5. Babylon Foundation has opened the airdrop registration for a period of 18 days.

6. The SEC has accepted Grayscale's application for a spot ETF for Cardano (ADA).

7. Ethereum's Pectra upgrade went live on the Holesky testnet but failed to finalize within the expected timeframe.

8. Layer 2 project Etherlink launches mainnet and unveils rewards programs.

9. Data reveals that approximately 12% of Bitcoin addresses are experiencing unrealized losses, marking the highest level since October 2024.

10. SoSoValue has announced that the SSI (SoSoValue Indexes) Token Staking Epoch 2 event has officially begun, and the reward points query function for Epoch 1 is now open.

Recommended reads

What is "time.fun", the SocialFi app endorsed by Solana co-founder Toly?

Tokenizing time by the minute — how does SocialFi application time.fun work? Can it kickstart a creator fee flywheel?

Read the full article here: https://www.bitgetapps.com/zh-CN/news/detail/12560604598744

In-depth analysis of the Babylon airdrop: TGE approaching, is BTC restaking leader's airdrop worth participating in?

As the leader in the BTC restaking sector, Babylon has registered a foundation account, hinting that its TGE is imminent. This article provides an in-depth analysis of Babylon's project status and the value of participating in its airdrop.

Read the full article here: https://www.bitgetapps.com/zh-CN/news/detail/12560604598257