Market Updates
Weekly Market Insight: January Week 5
27 Jan 2025

Headline News

  • - After Donald Trump’s inauguration, he pardoned Ross Ulbricht, the founder of the Silk Road website, who had spent over 11 years in prison. Trump also signed an executive order to establish regulations for the crypto industry, including exploring the potential for a national digital asset stockpile. The newly appointed SEC acting chair, Mark Uyeda, has formed a task force to develop a clear regulatory framework for the crypto industry. Meanwhile, Senator Cynthia announced she will chair the Senate Banking Subcommittee on Digital Assets. Eric Trump has reportedly confirmed that U.S.-based crypto projects will benefit from a zero capital gains tax. Additionally, Elon Musk is said to be exploring blockchain solutions within the Department of Government Efficiency (DOGE).
  • - Institutional interest in crypto has reached unprecedented levels. BlackRock CEO Larry Fink has urged the SEC to approve the tokenization of bonds and stocks. The stablecoin market cap increased by approximately $5.7 billion last week, marking the largest weekly growth since November 2024.
  • - Bitcoin's price increased by approximately 3.8% last week, reaching a new all-time high of $109,400 before quickly retracing.
 

Macro-Outlook

  • - The BoJ increased the interest rate by 25bps, in line with market consensus.
  • - The market's direction this week will hinge on key factors, including the anticipated FOMC meeting and earnings reports from major companies such as Microsoft, Tesla, and Apple. Additionally, political statements from President Trump may also influence market sentiment.
 

Upcoming Economic Calendar including,

  • - Tuesday, January 28, 9:30pm: The U.S. Durable Goods Orders in December
  • - Thursday, January 30, 3:00am: The FOMC meeting
  • - Thursday, January 30, 9:30pm: The U.S. Q4 Advance GDP
  • - Friday, January 31, 9:30pm: The U.S. Core PCE, Personal Income and Personal Spending in December
 

Weekly-Cryptos-Overview

  • - The SEC has rescinded SAB 121, which requires banks to treat digital assets as liability in their balance sheet. The repeal of SAB 121 potentially leads to an increasing number of banks providing digital asset services.
  • - The U.S. Court lifted the OFAC sanction against Tornado Cash.
  • - REX Advisers has filed TRUMP, ETH, BTC, SOL, XRP, BONK and DOGE ETF with the SEC.
  • - Microstrategy shareholders voted to increase shares to purchase more Bitcoin.
  • - Circle announced acquisition of Hashnote, the issuer of the $1.3 billion tokenised money market fund. Circle also introduced Paymaster, enabling users to pay for gas with USDC on Arbitrum and Base.
 

  Layer 1 and Layer 2s

  • - Avalanche announced a partnership with Aethir, launching a $100 million ecosystem fund to support infraBUIDL(AI) projects within the Avalanche ecosystem.Avalanche has been widely speculated to be the ideal network for DOGE, with its founder, Emin Gün Sirer, serving on the CFTC's Technology Advisory Committee, further supporting this possibility.
  • - Atoma announced a $100,000 Sui Agent Typhoon Hackathon in collaboration with Sui and ElizaOS.
  • - Sonic announced a $250,000 DeFAI Hackathon in partner with HeyAnon, DoraHacks and Zerebro.
  • - TON Network announced TON's wallet connect as the exclusive wallet link for Telegram mini-app platform to blockchain wallets.
  • - Blast introduced Blast mobile and incentivising users with 50% APY on USD for BLAST holders.
  • - Chintai announced expansion to the U.S. market and pursuing securities licensing from regulators.
  • - Particle Network launched UniversalX V2, a chain-agnostic trading platform.
 

  Dapps

  • - World Liberty Financial (WLFI) announced a strategic purchase of WBTC, ETH, AAVE, LINK, TRX and ENA. The team later staked approximately 19,400 ETH into Lido.
  • - Jupiter announced 50% of the protocol fees will go towards JUP buyback. Jupiter introduced Jupnet, an omnichain network that aims to aggregate all crypto into one single decentralized ledger beyond Solana. Jupiter also acquired a majority stake in the trending Moonshot, as well as Sonar Watch. Jupiter also introduced Spot V2, enabling Ultra Mode where users are able to view real time slippage estimation, dynamic priority fees, optimised transaction landing and more. The team announced the burn of 3 billion JUP, following the proposal to burn 30% of the JUP supply, which was approved in August.
  • - Virtuals announced its expansion to Solana network. 1% of the trading fees will be converted to SOL as Strategic SOL Reserve.
  • - Truth Terminal (TT) creator, Andy announced the foundation has established to give TT autonomy and sold approximately 75% of its FARTCOIN holding to GOAT, and intended to holding indefinitely.
  • - Dracula Labs introduced DRACULA, a TypeScript framework for distributed AI agents with cryptographic consensus, rule-based logic, and collaborative swarms.
  • - REI Network announced a partnership with Arkham for providing onchain insight to its agent and better pattern recognition training.
  • - Kaito introduced Yapper Launchpad, empowering Yaps point holders, influencers with smart followers and its genesis NFT holders to vote on protocols to be selected for Yapper Leaderboard. KOLs will be able to earn Yaps points for gaining mindshare on the respective protocols.
  • - INFINIT launched INFINIT Terminal, a DeFAI agent that allows users to swap, lend and engage in yield trading.
  • - Thorchain announced the protocol is insolvent if there is a large debt redemption from the ThorFi Saver and Lending program.
  • - Fluid protocol introduced Multiply, enabling users to create an easy loop position on Fluid.
  • - Liquity V2 is live on the mainnet, offering customised user-set interest rates and 100% revenue redirect to users.
 

Upcoming Alpha and Governance

  • - Uniswap V4 is expected to launch this week.
  • - Abstract Chain is expected to launch this week.
  • - CoW DAO passed CIP-61, implementing a finalised revenue-sharing model starting on February 1.
  • - Coinbase CEO announced potential integration of DEX support for the customers.
  • - ElizaOS founder, Shaw, announced more details on Eliza V2 which plans to be launched in April 2025. Agent Marketplace, Block Tank (AI version of Shark Tank) and $10 million Magic Fund for developers.
 

Token Unlock

  • - GRASS token unlocked on January 28th, amount representing 1.51% of the token supply.
  • - OP token unlocked on January 31st, amount representing 2.38% of the token supply.
  • - SUI token unlocked on February 1st, amount representing 2.66% of the token supply.
  • - DYDX token unlocked on February 1st, amount representing 2.67% of the token supply.
  • - JTO token unlocked on February 7th, amount representing 3.97% of the token supply.
  • - MOVE token unlocked on February 9th, amount representing 2.17% of the token supply.
  • - IO token unlocked on February 11th, amount representing 2.58% of the token supply.
  • - APT token unlocked on February 12th, amount representing 1.98% of the token supply.
 
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