🚀 Weekly Crypto Market Wrap: Jan 25, 2025

Market Overview

This week, the cryptocurrency market experienced heightened volatility amid anticipation of Donald Trump’s inauguration and his initial days in office. Bitcoin (BTC) reached an all-time high of $109,500 before retracing midweek. By the end of the week, BTC gained 3.40%, reflecting growing investor interest as the market digested pro-crypto announcements from the U.S. government. Ethereum (ETH), however, lagged behind, posting a 0.88% decline.

Total crypto market capitalization increased by 2%, rising from $3.658T to $3.732T. While long liquidations spiked early in the week - $800M on Sunday and $555M on Monday - short liquidations remained subdued, averaging just $100M daily. Despite early excitement driving funding rates higher, they reset by week’s end, reflecting a cooling of speculative fervor.

Impact & Significance:
Bitcoin’s dominance surged by 1.85%, driven by a pro-Bitcoin policy shift, including a "national digital asset stockpile" and executive orders promoting dollar-backed stablecoins. This underscores the increasing concentration of market activity in Bitcoin, raising questions about the future role of altcoins.

This Week’s Narrative Plotline

• Donald Trump unveiled the TRUMP memecoin on Solana just before his inauguration, igniting a frenzy in the memecoin market. TRUMP soared to a fully diluted valuation of $73B before competition arose.
• Melania Trump launched the MELANIA memecoin days later, triggering liquidity shifts and speculation over additional Trump Family coins.
• Community-driven projects emerged to capitalize on the hype, with new tokens tied to family members and other public figures flooding the market.

Impact & Significance:
The sudden influx of politically-themed tokens highlights the speculative nature of the memecoin sector. This phenomenon reflects how cultural and political narratives can influence market trends, driving both volatility and participation.

‍Major Project Updates

• Vitalik Buterin announced restructuring within the Ethereum Foundation, aiming to enhance technical expertise and ecosystem support for developers.
• Lido Finance founder Konstantin Lomashuk launched the Second Foundation to address internal Ethereum community disputes.
• Hyperliquid added PURR to its Assistance Fund, acquiring 3M tokens (~0.5% of the fund’s allocation).
• Consumer crypto L2 Abstract announced its rewards program, set to coincide with its mainnet launch later this month.
• EigenLayer Rewards V2 went live, enabling custom operator-directed rewards and fee adjustments.

Impact & Significance:
Ethereum faces increasing pressure as it struggles to keep pace with Bitcoin and Solana. Leadership changes and new initiatives aim to revitalize the ecosystem, but internal disagreements and skepticism among long-term supporters could hinder progress.

‍DeFi Highlights

• Donald Trump’s World Liberty Finance (WLFI) completed the sale of 20% of its token supply, with another 5% added at $0.05 per token to meet demand.
• WLFI acquired $4.7M in Ethereum-based assets, including AAVE and LINK, in a symbolic gesture commemorating Trump’s inauguration.
• Uniswap announced the upcoming release of Uniswap V4, introducing advanced features like hooks and gas optimizations.
• Origin Protocol unveiled Origin Sonic (OS), an S-pegged staking token eligible for point-based rewards in their ecosystem.
• CoWSwap proposed governance changes, including revenue-sharing models, price improvement adjustments, and platform fees.

Impact & Significance:
Trump’s endorsement of DeFi projects has reignited enthusiasm within the sector, particularly for Ethereum-based protocols. Innovations like Uniswap V4 signal continued development in the DeFi ecosystem, while governance changes point to evolving user expectations.

‍Meme Coins

• The Department of Government Efficiency (D.O.G.E) launched an official website prominently featuring the Dogecoin logo, sparking renewed interest.
• A memecoin supporting ZachXBT, a prominent crypto investigator, raised millions, with 50% of the supply sent as a donation to his public wallet.
• Andy Ayrey announced plans to establish a foundation for the Terminal of Truths project, funded by progressive token sales.

Impact & Significance:
The memecoin market continues to thrive on high-profile narratives, with projects like TRUMP, MELANIA, and DOGE reinforcing the cultural significance of meme-based assets in the crypto ecosystem.

‍Fundraises

• Merit Systems secured $10M in a seed round led by a16z Crypto and Blockchain Capital, signaling strong interest in attribution technology.
• TON blockchain’s EVAA Protocol raised $2.5M in a private sale, while Soon, a Solana-based Ethereum Layer 2, raised $22M via an NFT sale.
• Cosmos wallet Keplr completed its first funding round, raising $5M to enhance user experience and scalability.
• Corn, an Ethereum Layer 2 focused on Bitcoin DeFi, raised $8.3M in a community-driven funding round.

Impact & Significance:
Strong investor backing for innovative Layer 2 solutions and DeFi infrastructure highlights continued confidence in blockchain scalability and interoperability.

‍Airdrop Buzz

• Solana DEX Jupiter distributed tokens to over 2M wallets during its annual "January" airdrop, rewarding active users.
• Ethereum NFT collection Azuki launched its ANIME token, extending eligibility to stakers and Web3 anime community members.
• Nillion Network announced the NIL token airdrop for early adopters, with registration closing by February 3.
• Orbiter Finance rewarded users for bridging activity with its OBT token airdrop.

Impact & Significance:
Airdrops remain a critical tool for user engagement and loyalty, fostering activity across multiple blockchain ecosystems while driving excitement for new projects.Your Trusted Crypto Research Team
Crypto Research Australia (CRA)
"Decoding trends for informed investments."