Monumental Moves, But Alt Season Remains Elusive

GM Anon!

Despite a wave of positive regulatory and industry developments, the market seems stuck in limbo—hovering around the same levels without much reaction. But make no mistake—unprecedented action is on the horizon. The stage is set for what will be one of the most parabolic, full-throttle bull markets we’ve ever seen.

Let’s dive in!

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TLDR

• BlackRock’s CEO predicts BTC could hit $700K with a small portfolio allocation, while Trump’s executive order to create a U.S. digital asset stockpile sparks speculation

• Institutional interest is growing as CME plans XRP and SOL futures, and major banks like Morgan Stanley and Bank of America prepare to enter crypto

• ETH leadership is shifting towards enterprise solutions, raising questions about whether it’s a response to Solana's rapid growth

• The TRUMP meme coin launch has fueled retail demand, but recent pullbacks suggest market uncertainty and profit-taking

• NFTs are making a comeback with Yuga Labs rewarding BAYC holders and the launch of ANIME token on ETH and Arbitrum

• BTC ETFs now manage over $102B, with BlackRock leading. New filings for SOL, XRP, and meme coin ETFs like TRUMP and DOGE are in the works

• MicroStrategy continues buying BTC, now holding 461K BTC, reinforcing institutional confidence in BTC as a reserve asset

• Solana’s user base has surged to 28.6M weekly users, dominating trading bot volume and leading DeFi growth with Raydium

• Altcoins are gaining traction, with the top 50 altcoins now holding a 71% trading volume dominance, signaling a potential alt season

Major Developments

The crypto market has been moving fast lately, with some major developments shaping up. BlackRock’s CEO, Larry Fink, recently predicted that BTC could reach $700K if investors allocate just 2-5% of their portfolios, pointing to BTC’s growing appeal as a global asset. 

At the same time, President Trump pardoned crypto legend Ross Ulbricht, and signed an executive order to create a U.S. digital asset stockpile is making waves. The choice of the word “stockpile” instead of “reserve” has people speculating that the government may not be planning to buy more BTC, but rather hold onto what they already have for now. 

While Senator Cynthia Lummis is stepping up as the new chair of the Senate Banking Subcommittee on Digital Assets and is pushing for legislation to establish a strategic BTC reserve. Japan has raised interest rates by 25 basis points, which could drive more investors toward crypto as they look for better returns. 

Institutional adoption is also moving forward, with CME quietly adding XRP and SOL futures to their staging page, possibly setting the stage for a launch on February 10, pending regulatory approval. If this goes through, it could be a significant step in bringing these assets further into the mainstream. 

Traditional finance is also paying closer attention—Morgan Stanley’s CEO has expressed interest in working with regulators to introduce crypto products, and Bank of America says it’s ready to get involved with crypto payments as soon as regulations allow.

ETH is also making headlines, with leadership announcing plans to shift towards enterprise-focused solutions. There’s been some debate in the community about whether this is a natural evolution or a defensive move in response to Solana’s rapid growth. Regardless, the competition between these networks is heating up.

Retail interest in crypto is picking up again, largely thanks to the launch of the TRUMP meme coin, which has fueled demand across the market. 

Moonshot—an app that simplifies buying meme coins—has quickly become one of the most downloaded crypto platforms.

NFTs are also making a comeback, with Yuga Labs announcing upcoming rewards for BAYC and Otherdeed holders, which could spark renewed interest in blue-chip collections. Additionally, the AnimeCoin Foundation launched the ANIME token on Ethereum and Arbitrum on January 23, adding to the growing excitement in the NFT space.

In another major shift, Binance Labs has rebranded to YZi Labs, with a fresh leadership team and a renewed focus on pushing blockchain innovation. Even though the market has been hovering around the same levels, it feels like everything is being set up for a big move. With institutions, retail, and regulatory players all getting involved, things could take off sooner rather than later.

There’s a lot happening right now, and it’s starting to feel like the market is getting ready for something big.

ETFs

Spot BTC ETF assets under management have now crossed the $102B mark, showing just how much interest and confidence investors have in BTC. The steady rise in AUM highlights the growing demand for spot Bitcoin ETFs, with major players like BlackRock’s IBIT and Fidelity’s FBTC leading the pack.

BTC spot ETFs have experienced a strong wave of inflows, bringing in nearly $3.3B over the past four days and pushing their total net asset value close to $124B. BlackRock’s IBIT led the charge, adding almost $662M in a single day—far surpassing other funds like Fidelity and Grayscale. Meanwhile, Bitwise’s BITB was the only fund to see outflows, with around $17M leaving the fund.

ETH ETFs also saw steady inflows, adding just over $74M over the same period. BlackRock’s ETHA led with $56M, contributing to a total net asset value of $12.07B across all ETH ETFs, representing 3% of Ethereum’s market cap.

The consistent demand for both BTC and ETH ETFs signals growing institutional interest and confidence in crypto as an investable asset class.

Another major development is asset managers REX Shares and Osprey have submitted filings for a range of new crypto ETFs, including major assets like BTC, ETH, SOL, and XRP, as well as popular meme coins such as TRUMP, BONK, and DOGE. 

The TRUMP ETF, which aims to track the value of President Donald Trump’s newly introduced meme coin, has generated significant attention following its launch just days before his inauguration. These ETF applications were filed shortly after Trump took office and appointed Mark Uyeda as the interim SEC Chair.

Other asset managers such as VanEck and Grayscale have already submitted applications for Solana and XRP ETFs but have yet to receive regulatory clearance.

Lastly, Bitwise has registered the Bitwise Dogecoin ETF with the Delaware Department of State, with the formation date set for January 22, 2025, and CSC Delaware Trust Company listed as the official agent. For now, it remains an early-stage development, but it highlights further increasing institutional interest in ETF offerings across crypto.

Microstrategy 

MicroStrategy has expanded its BTC holdings with the acquisition of an additional 11K BTC, bringing its total stash to an impressive 461K BTC. With a year-to-date BTC yield of 1.69% in 2025, the company continues to solidify its position as one of the largest corporate holders of BTC.  

This latest purchase continues to highlight their unwavering commitment to BTC as a strategic reserve asset and highlights the growing trend of institutions seeking yield opportunities within the crypto space.

Data Points

BTC and ETH inflows to exchanges have declined sharply throughout January, while USDT inflows have surged significantly. This shift indicates a potential change in market dynamics, with investors possibly moving into stablecoins as a hedge against volatility or preparing for strategic redeployment into other assets. 

BTC transaction activity has dropped significantly since October, despite the recent price surge and heightened volatility in January. While there has been a slight uptick this month, overall transaction volumes remain well below previous highs.

Mining difficulty has reached an all-time high, signalling increased competition for block rewards. As difficulty rises, it becomes tougher for smaller or less efficient miners to stay profitable, often forcing them out of the market. The landscape is becoming increasingly cutthroat, with only the most efficient operations able to withstand the pressure.

Base reached an all-time high of $2.9B in DEX trading volume this week, with the surge primarily driven by $1.3B in ETH-USD transactions. This milestone highlights the growing adoption and activity on the Base network, reflecting increased liquidity and trader interest in its ecosystem.

As Base continues to gain traction, it solidifies its position as a key player in the DEX landscape, attracting more users and capital to its platform.

Majors & Memes

This week, the crypto market experienced some weakness as BTC continued to chop within a range, while major assets like SOL, ETH, and the recently surging XRP struggled to maintain momentum. Despite this slowdown, AI-related projects continued to dominate attention, while RWA protocols showed resilience. Meme coins also had their moments, with TOSHI standing out as one of the stronger performers.

On the downside, RUNE saw a significant drop following news that THORFi has paused its services amid financial uncertainties and growing concerns over potential insolvency.

In regulatory developments, the reversal of Tornado Cash sanctions led to a sharp spike in its token price, as the market reacted positively to the unexpected news. Meanwhile, Elon Musk's newly launched Department of Government Efficiency (DOGE) website, featuring Dogecoin’s logo, sent DOGE soaring by 11%, highlighting the continued influence of meme culture in the space.

However, not all meme coins had a good week. The TRUMP and MELANIA tokens faced heavy sell-offs, dropping 26% and 54%, respectively. The pullback was largely driven by profit-taking, market uncertainty, and a lack of pro-crypto policies in Trump’s recent public statements, which left investors questioning the long-term viability of these tokens.

Overall, the market remains in a consolidation phase, with pockets of strength in specific narratives, but broader momentum still lacks conviction. Traders are keeping a close eye on regulatory shifts, key asset movements, and potential catalysts that could drive the next significant market move.

Altcoin Strength

Trading volume dominance of the top 50 altcoins has risen to 71% against BTC, signalling a significant shift in market dynamics. This suggests that investor interest and trading activity are increasingly flowing into altcoins, potentially driven by new narratives, innovations, and speculative opportunities.

If this trend continues, it may signal the beginning of an altcoin-driven phase in the market cycle, with broader implications for liquidity distribution and market sentiment.

Solana Activity Dominates

Solana's active user base has surged to 28.6M weekly users, significantly outpacing other blockchain networks. This growth highlights Solana’s increasing adoption and user engagement, positioning it as a leader in the space. With a substantial lead over competitors such as BNB Chain, Tron, and Ethereum.

Over the past 14 days, Solana has completely dominated trading bot volume, with over $700M in trades executed by user-operated bots. Currently, Solana accounts for approximately 87% of total bot trading volume.

Solana's ecosystem is thriving, with Raydium leading the charge thanks to the surge in trading activity driven by TRUMP. Over the past 24 hours, Raydium generated $10.32M in fees, contributing to a seven-day total of $123.2M and an impressive $238.73M over the past month.

Other key Solana protocols are also performing well. Jito brought in $14.78M in daily fees, while Solana itself recorded $11.72M, with both showing strong weekly and monthly growth. Meteora, another rising protocol, pulled in $10.19M in daily fees and nearly $90M for the month.

With Raydium at the forefront, Solana's DeFi landscape continues to attract significant trading volumes and liquidity, reinforcing its position as a major player in the space.

That wraps up this post—we hope you found the insights valuable. See you next week, anon! 🚀