Bitcoin and Fantom Lead Significant Developments in Crypto Ecosystem
The crypto ecosystem is poised for significant developments this week, particularly for Bitcoin, Fantom, Avalanche, Stacks, and LayerZero. The upcoming Federal Open Market Committee (FOMC) interest-rate decision on December 18 in the U.S. adds crucial context to these events.
#1 Bitcoin And Crypto Await The FOMC Decision
Bitcoin investors are focused on the FOMC policy meeting scheduled for December 18 at 2:00 pm ET, followed by Fed Chair Jerome Powell’s press conference at 2:30 pm ET. Saxo Bank anticipates a 25 basis-point rate cut, lowering the federal funds rate target to 4.25-4.50%. Futures data suggests a 95% probability of this rate cut, following a similar reduction in November. Analysts will closely monitor the Fed’s Summary of Economic Projections and its "dot plot," which outlines future policy rate expectations.
Signals indicating a slower pace of future cuts, especially if the Fed revises its projections downward from four cuts in 2025, could negatively impact risk assets like Bitcoin. Current labor market trends and easing shelter inflation support additional cuts, while potential inflationary pressures from renewed trade tariffs under a new administration could lead to a more cautious Fed stance.
The projected dot plot for 2025 currently indicates around 3.625%, with speculation it may rise to 3.875% if caution prevails. The tone of the FOMC meeting could introduce volatility in Bitcoin prices.
#2 Fantom (FTM)
Fantom is set to launch the Sonic L1 mainnet, enhancing network throughput and cost efficiency. Sonic can reportedly process about 10,000 transactions per second with near-instant finality, significantly improving current capabilities. Operational costs for validator nodes will decrease by 66%, and compatibility with the Ethereum Virtual Machine will facilitate easy migration for EVM-based applications.
A new token, S, will replace the existing FTM token at a one-to-one ratio. Trader Jacob Canfield noted that FTM is approaching a critical price discovery phase, coinciding with the SONIC launch.
#3 Avalanche (AVAX)
The Avalanche9000 upgrade is set to launch on the mainnet on December 16, following its testnet debut on November 25. This upgrade is considered the most significant in Avalanche's history, coinciding with a $250 million private token sale led by Galaxy Digital and others, enhancing Avalanche’s treasury valued at approximately $3 billion in AVAX tokens.
Avalanche9000 includes the Etna Upgrade and community proposals ACP-77 and ACP-125, transforming how subnets function into layer-1s and shifting from a costly validator model to a subscription-like structure. This upgrade aims to improve cross-chain connectivity within Avalanche's ecosystem.
#4 Stacks (STX)
Stacks is preparing to launch sBTC on December 17 at 11:00 am ET. This BTC-backed asset will integrate Bitcoin’s liquidity into DeFi on Stacks, featuring a rewards program without staking requirements. The sBTC Rewards Program offers a 5% annual Bitcoin reward, distributed bi-weekly in actual Bitcoin.
The first phase focuses on deposit functionality, while a second phase planned for March 2025 will introduce advanced DeFi features and reward structures.
#5 LayerZero (ZRO)
LayerZero will hold its first governance referendum on December 20, allowing ZRO token holders to vote on activating a protocol fee for each LayerZero message. A majority “Yes” vote would implement a fee matching underlying costs for cross-chain transmissions, with proceeds used to buy back and burn ZRO tokens, potentially affecting token economics.
The referendum will last seven days, requiring a 60% quorum for validity. If unmet, the outcome defaults to “No.” Future referendums will occur every six months, reducing the quorum requirement by 5% if necessary, down to a minimum of 20%.
At press time, Bitcoin traded at $104,748.
