Weekly Crypto Recap (Dec 30th - Jan 5th)

Weekly Mindshare Overview

Sector Highlights:

• AI Takes the Lead: The AI sector continues to dominate weekly mindshare, driven by rapid adoption of AI agents, integration across gaming and virtual environments, and community-led innovation. Projects like Virtual Protocol have showcased substantial traction, with thousands of AI agents deployed, groundbreaking tokenomics models, and growing investor confidence.
• DeFi Maintains Stability: The DeFi sector remains a key pillar of the crypto landscape, with platforms like Hyperliquid setting milestones in trading activity and liquidity depth. The project introduced native staking, executed one of the largest airdrops in history, and emphasized a transparent, community-first token distribution model.
• Meme Tokens Stay Relevant: Meme tokens continue to maintain strong visibility, led by projects like PENGU, which executed one of the largest cross-chain airdrops across 7 million wallets on Ethereum and Solana. Whale accumulation and community-driven momentum have solidified its standing as a top-performing meme token.
• Other Emerging Sectors: GameFi, ETFs, and Layer 2 Solutions remain dynamic, with Layer 2 protocols enhancing blockchain scalability and GameFi projects driving deeper engagement through gamified finance models. ETFs continue to pave the way for institutional capital inflows into the crypto space.

Token Highlights:

• SUI: SUI has seen a 30% price rally and significant trading volume, driving speculation and interest. Announcements like the Phantom wallet integration and technological advancements such as the Mysticeti consensus engine have bolstered its position, with analysts highlighting its competitive edge and future growth potential in the digital assets market.
• SOL: Solana attracts attention with price rebounds post-New Year and speculation around a potential ETF approval in 2025. Its ecosystem continues to expand through network developments and partnerships, backed by significant community and institutional support, solidifying its status as a prominent mindshare gainer.
• ETH: Ethereum's mindshare is driven by a record leverage ratio indicating high speculative interest, coupled with robust ETF inflows exceeding $2 billion since July 2024. Price volatility and positive growth projections fuel investor attention, supported by strategic developments in layer 2 solutions and DeFi applications.
• Coinbase: Coinbase's recent license acquisition in Europe for derivative offerings, coupled with proactive legal challenges to U.S. regulatory practices, underscore its strategic positioning. Its compliance adaptations, innovations on the Base platform, and strong financial performance keep it at the forefront of industry discussions.
• UFD: Unicorn Fart Dust (UFD) has gained momentum due to an active community and strategic media presence, resulting in high social media mentions and market speculation. Its cultural appeal as a meme coin and proactive community initiatives drive its growth and influence in crypto conversations.
• RON: Ronin Network highlights growth with 2.9 million active users and successful game/NFT launches. Infrastructure innovations and community-driven marketing efforts, coupled with upcoming audits, enhance its credibility and attractiveness as a leading Web3 gaming platform.
• HYPE: The introduction of staking for HYPE and its position in decentralized derivatives trading have raised its profile. Strong price performance and ecosystem expansions, along with a dedicated community, highlight its strategic importance and market relevance.
• LUNA: LUNA's visibility has increased through strategic partnerships like the one with DJ Wukong and breakthroughs in AI agent technology. Its role in the Virtuals ecosystem, along with active community engagement and financial growth, position it as a leading player in the AI and Web3 space.
• FAI: FAI stands out with its autonomous agent infrastructure and secure technical developments, leading to a 1679% rise in market capitalization. Community engagement and the release of a comprehensive framework contribute to its expanding utility and high investor interest in the AI agent domain.

Market Trends and Performance

Squid Game Tokens Scam Alert 2024

• Scam Tokens Resurface: PeckShield flags Squid Game tokens as potential rug pulls.
• 99% Crash: A token on the Base network plummeted 99% post-launch.
• Suspicious Activity: Top holders linked to a coordinated dump.
• Historical Parallel: Mirrors the 2021 scam, where investors couldn't sell tokens after a 45,000% surge.

Sophon Farming Phase 2 Goes Live

• Fairer Rewards: SP emissions are now based on the USD value of deposits, ensuring balanced distribution across pools.
• Incentives for Liquidity Providers: New LP token pools offer 2x to 3x reward multipliers.
• Gas-Free Farming: Transactions are gasless during the initial phase, with fees fully subsidized.
• Broader Participation: Both new and existing users can start farming immediately on the Sophon Mainnet.

AI16z Surpasses $1.5B Market Cap and Plans Major Expansion

• Market Milestone: AI16z, a blockchain-powered AI agent platform, achieved a $1.5 billion market cap, marking over a tenfold growth in two months.
• Tokenomics Overhaul: Plans are underway to revamp tokenomics for enhanced scalability and sustainability.
• Layer-1 Blockchain Launch: AI16z is considering launching its own Layer-1 blockchain to improve network efficiency.
• Industry Impact: The platform continues to lead in AI-powered blockchain innovation, attracting significant investor interest.

Monthly DEX Volume Hits All-Time High in December

• Record Volume: Decentralized Exchange (DEX) volume reached an all-time high in December, surpassing previous monthly records.
• Market Momentum: Growth driven by increased activity in on-chain trading and token launches.
• Key Contributors: Leading DEX platforms like Uniswap and PancakeSwap played a significant role in the surge.
• Trend Continuation: Analysts predict sustained on-chain trading growth into early 2024.

Hyper Liquid Launches Native Staking Amid HYPE Token Rally

• Native Staking Introduced: Hyper Liquid has launched a native staking feature, allowing users to earn rewards directly on the platform.
• HYPE Token Surge: Following the staking launch, the platform's HYPE token has experienced a significant rally, reflecting increased investor interest.
• Enhanced User Engagement: The new staking feature aims to boost user participation and strengthen the platform's ecosystem.
• Competitive Positioning: By offering native staking, Hyper Liquid positions itself competitively within the decentralized finance (DeFi) landscape.

Binance Launches Solv Protocol (SOLV) via Megadrop

• Airdrop Opportunity: Users can lock BNB and complete Web3 quests to earn SOLV tokens via Binance Megadrop.
• Token Utility: SOLV aims to revolutionize on-chain asset management and structured financial products.
• Enhanced Engagement: The initiative incentivizes active participation in Binance's ecosystem.

MoonPay Secures MiCA Approval in the Netherlands

• Regulatory Milestone: MoonPay received MiCA approval from Dutch authorities, ensuring compliance with EU crypto regulations.
• Market Expansion: Approval enables legal operation across EU markets.
• Trust and Transparency: Strengthens customer confidence in MoonPay’s services.

Jito Surpasses $400M in Q4 Revenue on Solana

• Revenue Milestone: Jito, a Solana-based liquid staking platform, generated over $400 million in revenue in Q4.
• Increased Activity: Driven by high staking demand and Solana’s strong network performance.
• Ecosystem Growth: Solidifies Jito's position as a key player in Solana DeFi infrastructure.

MiCA's Impact on USDT and EU Crypto Landscape

• Regulatory Pressure: MiCA implementation raises concerns over USDT compliance in the EU.
• Market Shift: Potential adjustments in stablecoin operations within European markets.
• Tether Response: Ongoing dialogue with regulators to address compliance challenges.

Bitget Launches Pre-Market Trading for Cat Gold Miner (CATGOLD)

• Early Trading Access: Users can trade CATGOLD before its official spot listing on January 9, 2025.
• Flexible Settlement: Offers both Coin Settlement and USDT Settlement options for enhanced trading flexibility.
• Reward Potential: Participants can secure early positions and benefit from price movements ahead of the public listing.
• Engagement Boost: CATGOLD integrates Telegram-based mining mechanics for interactive user engagement.

Celsius Appeals Dismissal of $444M Claim Against FTX

• Initial Claim: Celsius sought $2 billion in damages, alleging disparaging statements by FTX accelerated its collapse.
• Amended Claim: Later revised to $444 million, focusing on preferential transfers favoring certain creditors.
• Court Ruling: Judge John T. Dorsey dismissed both claims, citing insufficient initial proofs and procedural issues.
• Appeal Filed: On December 31, Celsius filed a notice of appeal against the dismissal, seeking reconsideration.

Jupiter and Sonic Announce January Airdrops

• Jupiter's 'JUPuary' Airdrop: 700 million JUP tokens (~$625 million) to be distributed to ~2.3 million eligible users based on trading activity.
• Sonic's Airdrop: 7% of SONIC token supply to be airdropped on January 7; eligibility required prior registration via TikTok.
• Solana Ecosystem Growth: These airdrops mark significant events, following recent large-scale distributions like Pudgy Penguins' $1 billion PENGU token airdrop.

Pump.fun's Daily Revenue Hits $14 Million Amid Memecoin Surge

• Record Earnings: On January 1, 2025, Solana-based memecoin platform Pump.fun achieved a daily revenue of $14 million, marking its highest earnings since inception.
• SOL Token Fees: The platform generated over 72,000 SOL tokens in fees, reflecting increased user activity.
• Memecoin Momentum: The surge aligns with a broader uptick in memecoin interest, contributing to Pump.fun's financial success.
• Regulatory Scrutiny: Despite revenue growth, Pump.fun faces challenges, including a ban by the UK's Financial Conduct Authority (FCA) due to operating without authorization.

Kekius Maximus Memecoin Surges After Elon Musk's X Profile Update

• Profile Change: Elon Musk briefly changed his X profile name to "Kekius Maximus", featuring a Pepe the Frog-inspired avatar.
• Market Reaction: The Kekius Maximus memecoin surged by over 900% following the update.
• Sharp Decline: After Musk reverted his profile, the token’s value plummeted sharply.
• Volatility Highlight: The event underscores the influence of celebrity activity on memecoin markets.

Tether's USDT Sees Largest Market Cap Drop Since FTX Collapse

• Significant Decline: USDT's market cap fell by $1.8 billion, marking its largest weekly drop since the FTX collapse.
• MiCA Impact: Uncertainty surrounding MiCA regulations raised compliance concerns for stablecoin issuers.
• Exchange Delistings: Some European exchanges delisted USDT, contributing to the decline.
• Regulatory Scrutiny: Tether continues to engage with regulators to address compliance challenges.

KuCoin Introduces New Crypto Payment System

• KuCoin Pay Launch: A new crypto point-of-sale system enables purchases directly from exchange balances.
• QR Code Payments: Transactions can be completed via QR code scans or through the KuCoin app.
• Wide Asset Support: Supports over 50 cryptocurrencies, including BTC, ETH, USDT, and USDC.
• Merchant Integration: Simplifies crypto payment adoption for merchants globally.

XRP Surpasses Tether as the 3rd Largest Cryptocurrency

• Market Cap Surge: XRP's market cap reached $138.4 billion, surpassing Tether (USDT).
• Price Rally: XRP surged by 15%, hitting a peak price of $2.42.
• Investor Optimism: Growth driven by positive regulatory outlook and increased market confidence.
• Market Position: XRP now holds the third-largest spot in the cryptocurrency market by capitalization.

Terraform Co-Founder Do Kwon Pleads Not Guilty in U.S. Court

• Court Appearance: Do Kwon appeared before a U.S. judge and pleaded not guilty to fraud charges.
• Extradition: He was extradited from Montenegro to face trial in the United States.
• Charges: Accused of securities fraud, wire fraud, and money laundering related to Terraform Labs' collapse.
• Next Steps: A status hearing is scheduled for January 8, 2025 to outline further proceedings.

Solana Restaking Protocol Solayer Introduces Governance Token and Foundation

• Solayer Foundation Launch: A new non-profit organization established to support the restaking ecosystem on Solana.
• LAYER Governance Token: Introduced to drive ecosystem growth and protocol development.
• Scalability Focus: Enhances Solana's scalability and supports actively validated services (AVSs).
• Community Participation: Eligible users will be notified for token claim processes via the Solayer dashboard.

Drift Protocol Announces Season 2 Airdrop for May 2025

• Airdrop Date: Scheduled for May 2025, targeting active Drift Protocol users.
• Eligibility Criteria: Rewards will be based on trading activity, staking participation, and ecosystem engagement.
• Community Incentives: Airdrop aims to reward loyal users and drive continued platform activity.
• Strategic Growth: Part of Drift's strategy to expand its user base and strengthen community ties.

Fartcoin Surges to $1.5 Billion Market Cap

• Market Cap Milestone: Fartcoin reached a $1.5 billion market cap, securing its position as the 77th largest cryptocurrency.
• Community Hype: The surge was driven by viral social media campaigns and memecoin enthusiasm.
• Trading Volume: Daily trading volumes spiked, reflecting high retail investor participation.
• Market Position: Fartcoin's growth highlights the continued strength of memecoin culture in the crypto space.

Virtuals Protocol Fixes Bug, Plans Researcher Bounty

• Bug Discovery: A pseudonymous security researcher, Jinu, identified a critical vulnerability in Virtuals Protocol's audited smart contract.
• Immediate Fix: Upon public disclosure, Virtuals Protocol promptly addressed and patched the issue.
• Bug Bounty Program: The protocol has pledged to reward Jinu and plans to relaunch its bug bounty program to enhance security measures.
• Community Engagement: This incident underscores the importance of collaboration between developers and security researchers in maintaining blockchain ecosystem integrity.

Base Network Considers Tokenized COIN Stock Offering

• Exploratory Phase: Base, Coinbase's Ethereum layer-2 network, is exploring the possibility of offering tokenized shares of Coinbase (COIN) stock to U.S. users.
• Regulatory Considerations: The initiative is in its early stages, with Coinbase seeking regulatory clarity on securities tokenization before proceeding.
• Global Availability: Currently, tokenized COIN shares are accessible to non-U.S. users through platforms like Backed.
• Future Vision: Base aims to eventually enable on-chain access to a wide range of assets, aligning with its goal to bring "every asset in the world" onto its platform.

Unmarshal Integrates with Movement Network for Enhanced Data Infrastructure

• Seamless Integration: Unmarshal now supports Movement Network, enabling advanced data infrastructure solutions for developers.
• Comprehensive APIs: Offers APIs for wallet transactions, contract history, token details, and price data.
• Smart Notifications: Real-time alerts for smart contract events across multiple devices via Firebase integration.
• Developer Tools: Enhanced tools for data indexing, analytics dashboards, and custom API creation to support scalable dApp development.

Top Recent Crypto Fundraising Events
 

• DataDance: Raised in a Seed round with backing from Hash Global.
  Focused on Networks, the platform offers an Ethereum Layer 2 solution designed for secure data exchange, privacy protection, and EVM compatibility.

• Fold: Raised $20M in an Undisclosed funding round, backed by ATW Partners.
  Focused on Payments and Financial Services, Fold offers a Bitcoin rewards card and mobile app, allowing users to earn Bitcoin cashback on purchases and access exclusive offers and boosts at select retailers.

• Pentagon Games: Raised in a Strategic funding round, backed by 071labs.
  Focused on Gaming and Metaverse and Gaming, the company specializes in video game development, leveraging Web3, AI, and XR Metaverse technologies to deliver immersive gaming experiences, token economy advisory, and GameFi adoption solutions. 

• Gaxos: Raised $4M in a Post IPO funding round.
  Focused on Gaming and Metaverse and Gaming, Gaxos develops AI applications for mental and physical health, coaching, and gaming, addressing challenges like health, loneliness, and longevity issues through innovative AI solutions.

• Accountable: Raised $2.3M in a Seed funding round, backed by Maven 11 Capital, Zee Prime Capital, dcbuilder.eth, CMCC Global, Summer Ventures, Aquanow, Moonhill Capital, Miton C, and Darius Rugys.
  Focused on Identity, Reputation, and Credentialing and Consumer Infrastructure, the platform leverages Zero-Knowledge Proofs and zkTLS for financial transparency, asset monitoring, and proof of solvency across multiple blockchain networks.

• THENA: Raised in a Strategic funding round, backed by Binance Labs.
  Focused on Exchange and Marketplaces, THENA operates as a decentralized exchange (DEX) on the BNB Chain, offering up to 60x leverage, staking opportunities, and a community-driven liquidity management model with plans for cross-chain expansion.

• Hyperfluid: Raised in a Pre-Seed funding round, backed by Ankaa and BlockBooster.
  Focused on Exchange and Marketplaces, Hyperfluid operates as a decentralized exchange (DEX), enabling direct digital asset trading from user wallets without intermediaries, while offering token swaps, liquidity pools, and staking opportunities.

• Silencio Network: Raised $1.3M in a Public Token Sale funding round.
  Focused on Other and Networks, Silencio Network aims to combat noise pollution through the mining of Noise Coins via a mobile app, incentivizing users to record noise data, which can then be commercialized across industries like real estate, gastronomy, and hospitality.

• Haedal Protocol: Raised in a Seed funding round, backed by Animoca Brands, HASHED, OKX Ventures, Flow Traders, Comma3 Ventures, Dewhales Capital, Sui Foundation, Arthur Cheong, Cetus Protocol, Evans Huangfu, Aycp, and Scallop.
  Focused on Liquid Staking and Mining and Validation, Haedal enables users to stake SUI tokens, earn haSUI rewards, and participate in DeFi activities with yield-bearing liquidity on the Sui blockchain.