Weekly Crypto Recap (Jan 23d - Jan 26th)

Top Tokens by Inflow This Week

Oversupply of Tokens May End Altcoin Seasons

Background: Analysts are debating the future of altcoin seasons as the market faces an oversupply of tokens. With over 36.4 million tokens now available, the dynamic has shifted significantly from past cycles where altcoins saw explosive rallies.

Key Points:

• In 2017-2018, the altcoin market boomed with fewer than 3,000 tokens. Today, over 36.4 million tokens flood the market, diluting demand.

• Economists argue that oversupply shortens potential alt seasons to just days or weeks and complicates effective coin selection for investors.

• Memecoins and low-quality tokens dominate listings, further diluting market value and eroding retail confidence.

• While many altcoins struggle, analysts predict that utility-driven tokens, like Ethereum, could still gain institutional interest and lead future rallies.

Takeaway: The oversupply of tokens challenges the viability of extended altcoin seasons, shifting the focus to selective, utility-driven projects with strong narratives and institutional backing.

Pump.fun Sets Single-Day Revenue Record of $15.5M

Background: Memecoin platform Pump.fun, launched on Solana in January 2024, has rapidly risen to prominence, capitalizing on viral internet culture and innovative token mechanics. On January 24, 2025, the platform achieved its most profitable day, earning $15.5 million in fees.

Key Points:

• Pump.fun has processed $4 billion in trading volume over the past two weeks and accumulated 2.5 million SOL in fees since launch.

• The record-breaking revenue was fueled by the launch of Vine Coin, a memecoin linked to the potential revival of the Vine brand on Elon Musk’s X platform.

• Vine Coin reached a market cap of $425 million during its peak, contributing to the platform's success.

• Despite its growth, Pump.fun faces legal scrutiny and competition from Solana DEX aggregator Jupiter, which recently acquired memecoin platform Moonshot.

Takeaway: Pump.fun’s record-breaking day underscores the explosive popularity of memecoins, though legal challenges and rising competition could impact its long-term dominance.

Jupiter Acquires Moonshot, Launches 'Jupnet' and $10M AI Fund

Background: At its Catstanbul 2025 event, Solana DEX aggregator Jupiter announced a series of major developments, including the acquisition of memecoin platform Moonshot, the launch of its omnichain network 'Jupnet,' and the creation of a $10 million AI fund in partnership with Eliza Labs.

Key Points:

• Acquisition: Jupiter acquired a majority stake in Moonshot, a competitor to Pump.fun, to strengthen its position in the memecoin market.

• Jupnet: Jupiter unveiled its omnichain network, aiming to unify crypto ecosystems with a single decentralized ledger, currently in early testnet.

• Platform Upgrades: Jupiter launched its V2 beta with features like real-time slippage estimation, smart trigger orders, and Jupiter Shield for asset protection.

• AI Investment: A $10 million 'Magic Fund' was announced to support open-source AI development, alongside Eliza Labs' upcoming ElizaOS v2 platform.

• Virtuals Expansion: AI agent platform Virtuals revealed its Solana expansion, marking a shift from its initial Base Ethereum L2 launch.

Takeaway: Jupiter's aggressive moves across memecoins, AI, and omnichain infrastructure highlight its ambition to dominate multiple crypto sectors and redefine user experiences.

Brian Armstrong Advocates for 11% Bitcoin Reserves

Background: Coinbase CEO Brian Armstrong has called for countries with gold reserves to allocate at least 11% of those holdings to Bitcoin, highlighting its growing role as a superior store of value compared to gold.

Key Points:

• Armstrong’s 11% figure is based on Bitcoin’s $2 trillion market cap, which is 11% of gold’s $18 trillion valuation.

• He argued Bitcoin is more divisible, portable, and fungible than gold, while maintaining similar levels of decentralization and scarcity.

• Armstrong believes Bitcoin’s market cap could surpass gold’s within the next 5-10 years, making it a critical reserve asset.

• While Armstrong pushes for direct reserves, the Trump administration’s crypto policy focuses on a national "stockpile" of seized digital assets instead of strategic Bitcoin reserves.

Takeaway: Armstrong’s proposal underscores Bitcoin’s potential as a modern reserve asset, positioning it as a critical consideration for future economic and monetary strategies.

Grayscale and CoinShares File ETFs for XRP, Litecoin, and Solana

Background: Regulatory filings surged as Grayscale and CoinShares proposed new ETFs tracking major cryptocurrencies like XRP, Litecoin, and Solana. This development follows the inauguration of President Donald Trump, who is expected to implement more crypto-friendly policies.

Key Points:

• CoinShares filed for "CoinShares Litecoin ETF" and "CoinShares XRP ETF," while Grayscale submitted 19b-4 filings for "Grayscale Litecoin Trust" and "Grayscale Solana Trust."

• Both Grayscale filings include provisions for converting the trusts into spot ETFs.

• The filings come amid a regulatory shift with the SEC under new leadership, potentially favoring clearer rules and streamlined registration for crypto assets.

• The SEC has already approved Bitcoin and Ethereum spot ETFs, paving the way for broader crypto ETF adoption.

Takeaway: Grayscale and CoinShares' push for crypto ETFs reflects growing confidence in a friendlier regulatory environment under Trump’s administration, signaling a potential expansion of crypto-based investment products.

TRUMP Token Fuels Solana Stablecoin Supply to $10B

Background: Solana's stablecoin supply has doubled to a record $10 billion this month, driven by massive on-chain trading activity following the launch of the TRUMP memecoin. This surge has cemented Solana as a hub for memecoin trading and decentralized finance (DeFi) growth.

Key Points:

• Solana’s stablecoin liquidity is led by USDC, which surpassed $8 billion in circulation, and USDT, which grew to $2 billion.

• The TRUMP token launched on January 17, driving high demand for USDC on Solana-based DEXs like Meteora, where TRUMP was first traded.

• Solana hit record daily DEX volumes of $25 billion, accounting for 74% of all DEX trading across blockchains.

• Solana's native token, SOL, gained 20% this week, outperforming Bitcoin’s 2% growth, reflecting heightened activity on the network.

• New stablecoins like FDUSD and USDS are expanding to Solana, adding further liquidity to the ecosystem.

Takeaway: The TRUMP token frenzy has propelled Solana’s ecosystem to new heights, driving liquidity, trading volumes, and solidifying its role as a key player in the memecoin and DeFi space.

VINE Memecoin Hits $500M Valuation in Hours

Background: The VINE memecoin, inspired by the defunct short-form video platform Vine, skyrocketed to a $500 million market cap within hours of its launch on January 22, following an endorsement from Vine founder Rus Yusupov.

Key Points:

• VINE launched on PumpFun, quickly reaching a $500 million valuation before dropping 65%, settling at $150 million.

• The memecoin sparked a wave of nostalgia-driven token launches, though most failed to maintain momentum.

• Yusupov teased upcoming developments tied to Vine’s 12th anniversary, hinting at potential surprises for token holders.

• Vine, a precursor to TikTok, debuted in January 2013 and was acquired by Twitter for $30 million before its shutdown in 2017.

Takeaway: VINE’s rapid rise highlights the power of nostalgia in the memecoin market, as well as the potential for further developments tied to the iconic Vine brand.

RUNE Falls 30% as THORChain Halts THORFi Amid Restructuring

Background: THORChain, a decentralized liquidity protocol, suspended its THORFi services, including Savers and Lending programs, as part of a 90-day financial restructuring plan. The move comes amid concerns over $200 million in liabilities, leading to a sharp sell-off of its native token, RUNE.

Key Points:

• THORChain’s insolvency is attributed to $97 million in lending obligations and $102 million tied to savers and synthetic assets.

• RUNE’s price dropped 30% in 24 hours and 46% over the past week, now trading at $2.10.

• THORFi’s risky lending and leverage features have been halted to stabilize the platform and protect liquidity providers.

• Swaps remain operational, and the pause aims to prevent further destabilization akin to a “bankruptcy freeze.”

Takeaway: THORChain’s suspension of THORFi highlights the financial vulnerabilities within DeFi protocols, emphasizing the challenges of managing complex systems amidst market volatility.

Ledger Co-Founder Rescued After Ransom Kidnapping in France

Background: David Balland, co-founder of crypto wallet developer Ledger, and his wife were rescued in a police operation after being kidnapped in central France. The attack, which involved demands for cryptocurrency ransom, highlights the growing threats faced by prominent figures in the crypto industry.

Key Points:

• Balland and his wife were kidnapped on Tuesday, held at separate locations, and rescued by French elite police units (GIGN) on Wednesday and Thursday.

• The kidnappers severed one of Balland’s fingers to extort ransom, sending it to associates. Balland is recovering in the hospital.

• The incident follows a rising trend of targeted crimes against crypto traders and executives, with several similar cases reported across Europe and North America.

• Ledger CEO Pascal Gauthier confirmed the safety of Balland and his wife, commending law enforcement for their efforts.

Takeaway: The kidnapping underscores the escalating risks for crypto industry figures as wealth in the sector grows, emphasizing the need for heightened personal security and caution.

SAB 121 Rescinded: What It Means for Crypto Custody and Regulation

Background: The SEC officially rescinded SAB 121 on January 23, 2025, replacing it with SAB 122. This decision eliminates the controversial rule that required crypto assets held by financial institutions for clients to be listed as liabilities, which many argued hindered crypto custody adoption.

Key Points:

• SAB 122 Changes: Instead of listing full custody assets as liabilities, institutions now assess and report only the estimated risk of loss, aligning with standard accounting practices.

• Simplified Custody: Financial institutions can streamline processes, making crypto custody less burdensome and more compatible with existing systems.

• Bank Adoption: Removing this barrier encourages banks to enter the crypto custody market, potentially driving greater institutional involvement.

• Industry Reactions: SEC Commissioner Hester Peirce and other financial leaders welcomed the change, emphasizing its importance in fostering innovation and balanced regulation.

Takeaway: The repeal of SAB 121 signals a more balanced regulatory approach, paving the way for traditional financial institutions to embrace crypto custody and bridging the gap between traditional finance and the crypto sector.

OKX Secures Pre-Authorization for MiCA Compliance

Background: OKX has become the first global exchange to achieve pre-authorization for compliance with the EU’s Markets in Crypto-Assets (MiCA) regulation. This milestone positions the exchange to expand its services across Europe under the MiCA framework, which aims to unify crypto regulations across the EU.

Key Points:

• The MiCA license will allow OKX to offer over 260 trading pairs to a market of 400 million users in Europe.

• OKX’s European hub in Malta was chosen for its strong regulatory environment, aligning with MiCA's progressive approach.

• MiCA replaces the fragmented regulatory landscape in the EU, providing a single, standardized framework for crypto operations.

• OKX executives highlighted the importance of MiCA in setting global standards for crypto regulation and prioritizing customer safety.

Takeaway: OKX’s MiCA pre-authorization signals a significant step in its European expansion, underscoring the exchange’s commitment to regulatory compliance and leadership in the global crypto market.

Jump Trading Sues Ex-Engineer Over Alleged IP Theft

Background: Jump Trading has filed a lawsuit against former software engineer Liam Heeger, accusing him of stealing intellectual property and violating a non-compete agreement to establish a rival blockchain startup, Unto Labs.

Key Points:

• Heeger worked on Firedancer, a major blockchain project at Jump, and allegedly accessed sensitive proprietary information before resigning in November 2024.

• Jump claims Heeger used this confidential information to secure $3 million in funding for Unto Labs, valued at $50 million, within a month of his departure.

• The lawsuit alleges Heeger breached his non-compete obligations by engaging with venture capital firms and developing a competing business while still employed.

• Jump seeks to enforce a two-year non-compete clause, prevent further collaboration on the new venture, and recover any proprietary information Heeger may have retained.

Takeaway: The case underscores the high stakes in blockchain innovation, where intellectual property disputes and compliance with contractual obligations are becoming increasingly critical.

Elizabeth Warren Urges Musk to Pay More Taxes for Government Efficiency

Background: Senator Elizabeth Warren called on Elon Musk, Chair of the Department of Government Efficiency (DOGE), to address inefficiencies in federal spending by proposing full IRS funding, closing tax loopholes, and increasing taxes on estates.

Key Points:

• Warren emphasized closing the carried interest loophole and ending the stepped-up basis on inherited assets, which could save over $60 billion annually.

• She criticized DOGE’s leadership for potential conflicts of interest and called for stronger ethics standards.

• Warren argued that fully funding the IRS could yield a 12:1 return on investment by targeting wealthy tax evaders like Musk, whose net worth exceeds $426 billion.

• Musk and Trump have proposed aggressive government spending cuts, conflicting with Warren’s call for increased funding for IRS operations.

Takeaway: Warren’s proposals highlight tensions between her push for tax reform and DOGE’s focus on spending cuts, underscoring diverging views on achieving government efficiency.

Solana TVL Soars 600% Following TRUMP Token Launch

Background: Solana’s total value locked (TVL) has skyrocketed from $1.4 billion to $9.77 billion in just 12 months, marking a 600% increase. The surge is largely driven by the success of the TRUMP memecoin, which has fueled significant activity across the network.

Key Points:

• Solana’s TVL growth coincides with the launch of the TRUMP token on January 17, which generated over $11 billion in trading volume.

• Raydium, Solana’s leading DEX, holds $2.59 billion of the total TVL, reflecting rising demand for decentralized trading infrastructure.

• Daily transaction fees reached a record $33.3 million, with over 300 million transactions processed daily and active addresses surpassing 4 million.

• High-profile launches, such as Pudgy Penguins’ PENGU token, and Solana’s reputation for successful memecoin releases continue to attract projects.

• Despite the growth, Solana’s TVL remains significantly smaller than Ethereum’s $68 billion, leaving room for further expansion.

Takeaway: Solana’s explosive TVL growth underscores the network’s potential as a maturing DeFi hub, fueled by memecoin launches and increasing developer confidence in its infrastructure.

Cardano Research Highlights Blockchain's Growing Role in Identity and Sustainability

Background: The Cardano Foundation released findings from its research on 582 projects built on the Cardano blockchain, revealing a significant shift in blockchain applications toward solving real-world enterprise challenges.

Key Points:

• Focus Areas: Over half (54.6%) of the projects emphasize authenticity, leveraging secure verification for identity and legitimacy. Traceability accounts for 30%, enabling transparent and immutable records, while 15.4% focus on sustainability to support ecological and social initiatives.

• Global Reach: About 70% of Cardano-based projects target international markets, showcasing the platform's scalability and global appeal.

• Industry Applications: Authenticity addresses data security in finance and healthcare, traceability enhances transparency in supply chains, and sustainability aligns with global environmental goals.

• CEO’s Statement: Frederik Gregaard emphasized that these pillars—traceability, authenticity, and sustainability—highlight blockchain’s ability to drive innovation and solve global challenges responsibly.

Takeaway: Cardano’s ecosystem demonstrates how blockchain technology is evolving to tackle critical issues like identity verification, supply chain transparency, and sustainability, paving the way for broader adoption across industries.

WazirX Approved to Repay Users After $230M Hack

Background: Indian crypto exchange WazirX has received approval from the Singapore High Court to proceed with a restructuring plan following a $230 million hack in July 2024. The approval is a significant step toward compensating users affected by the attack.

Key Points:

• The Singapore High Court found no evidence of wrongdoing by WazirX or its parent company, Zettai, in the hack attributed to North Korea's Lazarus Group.

• WazirX has been authorized to convene a scheme meeting with users to finalize the restructuring plan.

• If the plan is approved, funds will be distributed to creditors within 10 business days.

• The attack saw over 45% of WazirX's $500 million in holdings stolen, with funds laundered through Tornado Cash.

Takeaway: The court's decision marks progress in restoring user trust and operational stability for WazirX, signaling accountability and recovery efforts in the face of a significant security breach.

CZ Joins Rebranded YZi Labs, Expands Focus Beyond Crypto

Background: Changpeng “CZ” Zhao, Binance founder and former CEO, will take an active role at YZi Labs, the newly rebranded investment arm previously known as Binance Labs. This comes after CZ served four months in U.S. prison following charges related to money laundering and compliance violations.

Key Points:

• Rebranding: YZi Labs moves away from the Binance brand to focus not only on Web3 and crypto but also on AI and biotechnology investments.

• CZ’s Role: Zhao is listed as an "intern" on YZi Labs’ site but will offer strategic investment advice and guidance to startups.

• Leadership Return: Ella Zhang, co-founder of Binance Labs, returns as the head of YZi Labs to continue the firm's legacy.

• Binance Labs Legacy: The venture arm was a major player in crypto investments, backing notable projects like CertiK, Polygon, and Dune Analytics.

• Binance’s Legal Settlement: In 2023, Binance paid over $4 billion to settle U.S. investigations, leading to CZ’s resignation and a $50 million personal fine.

Takeaway: YZi Labs’ rebranding and expanded focus signal a strategic pivot from its crypto origins, with CZ leveraging his experience to guide broader tech investments in emerging sectors.

TRUMP, DOGE, BONK ETFs Likely Under New SEC Leadership

Background: The approval of the first memecoin-based exchange-traded funds (ETFs) has become more probable following the departure of former SEC Chair Gary Gensler and the appointment of Mark Uyeda as acting chair. Recent filings include ETFs based on TRUMP, Dogecoin (DOGE), and Bonk (BONK).

Key Points:

• The new SEC leadership, perceived as more crypto-friendly, increases the chances of memecoin ETF approvals.

• The TRUMP and MELANIA tokens launched in mid-January, drawing over 200,000 new users to the blockchain.

• Analysts warn of the inherent risks and volatility of memecoin-based investments, likening them to speculative retail trends such as the GameStop stock surge of 2021.

• Despite gaining traction, TRUMP token’s price has fallen 52% from its all-time high, reflecting memecoins' dependence on cultural momentum.

Takeaway: The memecoin ETF proposals represent a bold move toward institutionalizing speculative crypto assets, but their volatility and reliance on cultural trends pose significant risks for investors.