By Shikha Singh
Bitcoin Price Stalls at $94K, Ethereum Struggles to Maintain $3.2K.
Bitcoin experienced significant volatility this week. After hitting $102,000 earlier, it dropped sharply to $91,200 before rebounding to $96,000. It now trades at $94,000, with a market cap near $1.87 trillion and dominance at 54.5%.
Altcoins struggled, with SOL, ADA, and AVAX losing about 4%. ADA is near $0.9, and SOL is under $190. Ethereum dropped below $3,200 after a 2.3% daily decline, while XRP saw minor gains. The total crypto market cap declined to $3.43 trillion.
Crypto Market Recorded Strong Growth in December.
In a recent insight report published by Binance Research, the cryptocurrency market reached a record-high market cap of $3.91 trillion in 2024, driven by Bitcoin’s performance and regulatory optimism. Bitcoin hit an all-time high of $108,000, achieved 123.4% YTD growth, and became the 7th largest global asset. Key drivers included spot Bitcoin ETF approvals, which attracted $50 billion in investments, and optimism from Donald Trump’s pro-crypto presidential win.
The AI sector also saw explosive growth, with tokens like Truth Terminal and VIRTUAL gaining traction. The top AI token, VIRTUAL, reached a $4.2 billion market cap, positioning AI as a potential driver for further crypto industry growth in 2025.
Trump Victory Spurs More Financial Advisors to Consider Crypto Investments.
A latest Bitwise survey highlights a growing interest in cryptocurrency among U.S. financial advisors following Donald Trump’s return to the White House. Over half of respondents (56%) expressed increased inclination to invest in crypto due to the election results. The survey also revealed that crypto allocations have doubled year-over-year, with 22% of advisors allocating digital assets to client accounts in 2024 compared to 11% in 2023. Client interest is at an all-time high, with 96% of advisors receiving inquiries about crypto investments.
Solana and Base Lead the DePIN Chain Wars Amid Interoperability Push.
Messari predicts a 100-1000x expansion of Decentralized Physical Infrastructure Networks (DePIN) over the next decade, setting the stage for explosive growth. AI’s global prominence drove DePIN to outpace the broader crypto market in 2024. Currently, DePIN accounts for less than 0.1% of its $1 trillion addressable market.
Multi-chain strategies enabled by tools like Wormhole and LayerZero have intensified competition in the sector, with Solana and Base gaining market share. Early-stage venture funding has surged, with standout tokens like Virtuals Protocol growing over 30,000%. Governments are also utilizing DePIN to address infrastructure issues, such as AI sovereignty in Tanzania and digital equity in Mexico.
Shiba Inu Burns Skyrocket by 300% Amid Calls for Larger Burns From SHIB Army.
The Shiba Inu (SHIB) community reported a 300% increase in token burns over the last 24 hours, with 24.6 million SHIB burned. The largest transfers sent 17.2 million and 4.6 million SHIB to unspendable addresses, contributing to a weekly burn total of 89.1 million SHIB—a 60.82% increase from the previous week.
The SHIB Army is advocating for even larger burns, with some suggesting a reduction of 30–90% of the total SHIB supply. However, SHIB’s marketing lead, Lucie, and developer Shytoshi Kusama clarified that they cannot directly accelerate burns. Instead, they emphasized enhancing Shibarium’s utility, where BONE gas fees automatically destroy SHIB tokens, as the key to increasing burn rates and potentially boosting SHIB’s value over time.
Indian Crypto Exchange Mudrex Pauses Withdrawals For Compliance Upgrade.
Indian cryptocurrency exchange Mudrex has temporarily suspended crypto withdrawals while it works on upgrading its compliance suite. The suspension is expected to last until January 28, after which withdrawals will resume. Mudrex claims the upgrade is necessary to prevent malicious actors and ensure the platform’s security. Despite this, the exchange continues to allow INR withdrawals.
Some members of the crypto community have expressed skepticism, suggesting that Mudrex may not have crypto holdings or warning users to withdraw funds immediately. However, Mudrex has defended its decision, emphasizing its commitment to crypto’s core principles and the security of its users. The exchange has over 3 million users and aims to onboard 10 million by the end of 2025.
Jito Flips Ethereum, Uniswap, and Solana on a Crucial Metric.
Jito, a decentralized finance platform, has made impressive strides this year, becoming the 14th largest player in DeFi with a total value locked (TVL) of 14.6 million SOL ($2.7 billion).
It is now the third-largest liquid staking protocol, trailing only Lido and Binance Staked ETH. With almost 150,000 users, Jito has outperformed major players like Solana, Ethereum, and Uniswap in fees generated this year, earning $63 million, surpassing Ethereum’s $55.1 million.
Ethereum Recoils as ETF Outflows, CEX Balances Rise, Staking Yield Falls.
Ethereum faced challenges over the weekend, with notable outflows from its exchange-traded funds (ETFs), rising exchange balances, and a drop in staking yields.
The price of Ethereum has fallen from a high of $4,104 to $3,268, mirroring the retreat of Bitcoin from its all-time high.
Ethereum ETFs lost significant assets, including $68 million on Friday, following larger losses earlier in the week.
Ethereum’s ETF assets now account for 2.96% of its market cap, compared to Bitcoin’s 5.2%. Additionally, Ethereum’s balances on centralized exchanges have risen, indicating a potential shift toward selling.
FTX Creditors to Receive $1.2 Bn Compensation.
FTX has announced a repayment plan, with creditors holding claims under $50,000 set to receive approximately $1.2 billion in compensation. Creditors must meet pre-allocation requirements by January 20 to participate in the preliminary distribution, which will begin around February 25 and may continue until March 4. FTX has also issued a warning about phishing scams targeting customers, urging them to be cautious of fraudulent communications posing as FTX debtor portals.
Mango Markets Considers Future Amid SEC Settlement and Operational Shutdown.
The closure of Mango Markets marks a significant shift in the DeFi sector, highlighting the growing importance of regulatory compliance.
In September 2024, Mango reached a settlement with the SEC over the sale of unregistered securities through its MNGO tokens.
Governance decisions, including changes to interest rates and collateral terms, led to the platform’s shutdown.
A major exploit in October 2022 caused a financial collapse, with the platform’s locked funds dropping drastically from $210 million to $9 million.
This incident raises concerns about security on decentralized exchanges (DEXs) and calls for stronger regulatory frameworks.
The Mango case serves as a cautionary tale for other crypto platforms, emphasizing the need for early regulatory engagement, risk management, and security measures for long-term success in the evolving DeFi space.
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