Crypto Markets Today: Cardano-based NIGHT crashes, ZEC, XMR also drop

• Cardano-based Midnight Network's token NIGHT plummeted 22%, the steepest decline among the top 100 tokens.
• Bitcoin fell below $88,000 after failing to maintain gains above $90,000, with potential volatility expected following the U.S. GDP release.
• A year-end analysis reveals that only 15% of crypto tokens launched in 2025 are trading above their initial valuations, with infrastructure and AI-linked tokens underperforming.

Crypto Markets Today will be on hiatus for a while starting Wednesday. We'll be back Jan. 5 with your regular trading update and market analysis . Wishing you and yours a wonderful holiday season!

It's yet another risk-off day in the crypto market, with Cardano-based Midnight Network's governance token, NIGHT, sliding 22% in 24 hours, the worst performer among the top 100 tokens by market value.

While the reason for the sell-off is unclear, it is not the only one trading in the red. Non-serious token PUMP fell 13% and MNT, XMR and ZEC each dropped as much as 8%.

Bitcoin BTC$87,639.60, the largest cryptocurrency by market value, slipped back below $88,000 after failing to establish a foothold above the $90,000 resistance level on Monday.

Volatility could pick up later Tuesday following the release of the third quarter U.S. GDP, which is likely to show the economy remained strong in the three months to September.

Derivatives Positioning

• Cumulative open interest (OI) in BTC futures listed worldwide has remained unchanged at around 670,000 BTC for over a week. In the past 24 hours, it dipped slightly, indicating continued lack of participation in leveraged markets.
• Participation in SOL futures is increasing as indicated by the uptick in OI to 58.75 million SOL, the highest since Oct. 10.
• OI in XRP futures increased by 1.28% while ETH's dropped by 1.7%.
• Perpetual funding rates for most majors cryptocurrencies remain positive, if only slightly, indicating a slight bias for bullish bets. BCH and LINK stand out with negative rates.
• On the CME, BTC futures open interest continues to slide alongside weak demand for spot ETFs, a sign of waning institutional interest in carry trades.
• On Deribit, put skews in BTC and ETH options strengthened following BTC's failure to keep gains above $90,000.
• Looking beyond December, the positioning looks bearish, with the $80,000 put as the most popular play in January expiry options.
• As for block flows, strangles and straddles cumulatively account for 35% of the total in the past 24 hours. Buyers of these strategies are essentially positioning for volatility.
• In ETH's case, call spreads have dominated block flows.

Token Talk

• Only a small fraction of crypto tokens introduced in 2025 are still worth more than they were at their debuts, an analysis of 118 tokens shows.
• Just 15% are trading above their token generation event (TGE) valuation, according to Memento Research. The median token is down roughly 71% in fully diluted value (FDV) and 66% by market capitalization.
• The steepest losses came from tokens with the highest starting valuations. Among the 28 tokens with a starting FDV of $1 billion or more, none are above water, and the group shows a median decline of 81%.
• Big-name launches dragged down the average. The FDV-weighted performance shows a 61.5% decline, far worse than the 33.3% drop for an equal-weighted basket.
• Infrastructure, decentralized finance, and artificial intelligence-linked tokens dominated TGE counts, and their performance was overall negative. Perpetual DEXs were the rare standout, helped by strong showings from platforms like Hyperliquid and Aster.

2025 was defined by a stark divergence: structural progress collided with stagnant price action. Institutional milestones were reached and TVL increased across most major ecosystems, yet the majority of large-cap Layer-1 tokens finished the year with negative or flat returns.

This report analyzes the structural decoupling between network usage and token performance. We examine 10 major blockchain ecosystems, exploring protocol versus application revenues, key ecosystem narratives, mechanics driving institutional adoption, and the trends to watch as we head into 2026.

• Bitcoin was lower by a bit more than 1% to just below $88,000 on Tuesday.
• Crypto-related stocks were suffering far larger declines.
• Analysts suggest tax-loss harvesting and low liquidity are contributing to the action in crypto markets as the year ends.
• Some analysts remain cautiously optimistic about a potential rally, though significant recovery is not expected until liquidity returns in January.

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