Weekly Crypto Recap (March 3d - March 9th)

Bitcoin Price Action Outlook

Trump’s Crypto Summit Signals Major Policy Shift

Background
President Donald Trump hosted a landmark crypto summit at the White House, signaling a policy shift toward pro-crypto regulation. He pledged to end Operation Chokepoint 2.0, voiced support for stablecoin legislation, and confirmed his executive order to establish a Bitcoin reserve.

Key Points

• Regulatory Shift: Trump criticized past regulations that restricted crypto businesses and promised an end to government resistance against digital assets.

• Bitcoin Reserve: His executive order formalized a U.S. Bitcoin stockpile, emphasizing that America will hold, not sell, its Bitcoin.

• Stablecoin Legislation: He expressed strong support for regulatory clarity on dollar-backed stablecoins, aiming to sign legislation before August.

• Industry Representation: CEOs from Coinbase, Ripple, Kraken, Gemini, Chainlink, and Robinhood attended, marking one of the most formalized crypto gatherings in U.S. government history.

Key Takeaway
Trump’s summit marks a turning point in U.S. crypto policy, aligning the government with industry leaders and prioritizing Bitcoin adoption, stablecoin regulation, and a friendlier environment for digital assets.

ADA, XRP, SOL Drop as White House Clarifies Trump's Crypto Reserve Plan

Background
Cardano’s ADA, Solana’s SOL, and XRP saw sharp declines after a White House official clarified that Trump's mention of a crypto reserve including ADA, XRP, and SOL was only an example, not a definitive list. This clarification led to a market correction as investors reassessed the scope of the government's crypto strategy.

Key Points

• Official Walkback: A White House official stated that Trump’s mention of five cryptocurrencies was illustrative, not a confirmed selection.

• Market Reaction:

  • ADA fell over 5% to $0.82.

  • XRP dropped 3.5% to $2.41.

  • SOL declined 2%, aligning with broader crypto market weakness.

• Reserve Plans Split: Trump’s administration is separating Bitcoin holdings into a strategic reserve, while the crypto stockpile for altcoins will be a separate entity.

• Industry Pushback: Critics argue that including altcoins in a government-controlled reserve raises concerns about potential manipulation.

Key Takeaway
The White House's backpedal on Trump’s crypto reserve announcement led to sharp declines in ADA, XRP, and SOL, highlighting market sensitivity to government policy shifts in the digital asset space.

Trump-Linked World Liberty Acquired $20M in Crypto Before White House Summit

Background
World Liberty Financial, a DeFi project backed by President Trump’s family, purchased over $20 million in crypto just days before the March 7 White House crypto summit. The move raised speculation about potential policy shifts and strategic crypto holdings by the U.S. government.

Key Points

• Crypto Purchases: A wallet tied to World Liberty acquired $10.1M in ETH, $9.9M in WBTC, and $1.68M in MOVE tokens before the summit.

• Trump Family Ties: World Liberty was launched by Trump’s family in September 2024, aiming to provide non-custodial DeFi services.

• Regulatory Speculation: The purchases coincided with rumors of a U.S. strategic crypto reserve, particularly favoring Bitcoin.

• Controversy: The project previously faced scrutiny over alleged token swaps, but denied selling tokens, stating that asset reallocation was for business purposes.

Key Takeaway
The timing of World Liberty’s crypto acquisitions suggests alignment with Trump’s broader crypto policy shift, fueling speculation about U.S. government involvement in digital asset markets.

Solana Down 29% in 2025 Despite Liquidity Surge and U.S. Crypto Stockpile Inclusion

Background
Solana (SOL) has dropped 29% year-to-date, despite $10 billion in new liquidity inflows and its inclusion in President Trump’s Digital Asset Stockpile alongside Cardano (ADA) and XRP. Analysts point to capital outflows, memecoin speculation, and broader market weakness as contributing factors.

Key Points

• Liquidity Surge Unused for SOL: Over $9.5 billion in newly minted USDC since January hasn’t boosted SOL’s price, with liquidity instead flowing into memecoins.

• Trump Token Impact: Since the launch of Trump’s Official TRUMP token, SOL has fallen 49% from $261 to $133, as liquidity shifted to speculative assets.

• Investor Flight to Safety:

  • Solana saw $485M in capital outflows in February, moving toward Ethereum, Arbitrum, and BNB Chain.

  • Bitcoin dominance rose to 59.6%, as investors sought less volatile assets.

• Memecoin Scams Hurting Sentiment: The Libra rug pull wiped out $4B in investor capital, further dampening trust in Solana-based projects.

Key Takeaway
Despite Solana’s inclusion in the U.S. Digital Asset Stockpile, market trends suggest investors are favoring safer assets, while memecoin speculation and capital outflows continue to weigh on SOL’s price performance.

Binance to Introduce Community Voting for Listings as Coinbase Explores Crowdsourced Reviews

Background
Binance and Coinbase are both revamping their token listing processes to address growing concerns over transparency and efficiency. Binance will introduce community-driven voting on listings and delistings, while Coinbase is exploring a blocklist model to filter out scams without pre-approving tokens.

Key Points

• Binance’s New Listing Model:

  • Users will vote on which tokens get listed or removed.

  • Tokens with the most support must pass due diligence before listing.

  • The move follows CZ’s criticism of current listing practices, citing short notice periods and post-listing volatility.

• Coinbase’s Crowdsourced Approach:

  • CEO Brian Armstrong proposed a blocklist model, allowing users and automated scans to filter out scams instead of manually approving each token.

  • Armstrong noted that nearly one million tokens emerge weekly, making traditional reviews unsustainable.

  • The system would function similarly to Twitter’s Community Notes but for crypto listings.

• Regulatory Landscape Shifting:

  • With Paul Atkins poised to become SEC Chair under Trump, speculation is rising that crypto exchanges could face more favorable regulations.

Key Takeaway
Binance’s community-driven listing model and Coinbase’s crowdsourced review approach signal a major shift toward decentralized decision-making in token listings, reflecting the challenges of managing an ever-growing crypto ecosystem.

Michael Saylor Urges U.S. Government to Acquire 25% of Bitcoin Supply

Background
MicroStrategy founder Michael Saylor has proposed that the U.S. government acquire up to 25% of Bitcoin’s total supply by 2035 as part of a Strategic Bitcoin Reserve. The proposal was presented at the March 7 White House Crypto Summit, emphasizing Bitcoin’s long-term financial benefits for the nation.

Key Points

• Strategic Accumulation Plan: Saylor suggests the U.S. acquire 5–25% of all BTC through daily purchases until 2035, when 99% of Bitcoin’s supply will be issued.

• Never Sell Policy: He argues the U.S. should adopt a “Never sell your Bitcoin” strategy, predicting that by 2045, the reserve could generate over $10 trillion annually.

• Economic Impact: If implemented, the reserve could contribute $16T–$81T to the U.S. Treasury, potentially reducing national debt.

• Comparison to Past Proposals: Saylor’s 25% target far exceeds Senator Cynthia Lummis’ 2024 Bitcoin Act, which proposed a 5% BTC allocation for the U.S.

Key Takeaway
Saylor’s aggressive Bitcoin accumulation strategy seeks to position the U.S. as the dominant force in the global digital economy, reinforcing the nation’s long-term financial strength through BTC holdings.

Arkham Introduces Crypto Influencer Wallet Tracking Tag

Background
Blockchain analytics firm Arkham Intelligence has launched a new tagging system to track cryptocurrency transactions of Key Opinion Leaders (KOLs) with over 100,000 followers. The initiative aims to enhance transparency in the crypto space by identifying and monitoring influential figures’ wallets.

Key Points

• Tracking Crypto KOLs: The system currently tracks 950 addresses linked to high-profile figures, including Vitalik Buterin, Justin Sun, and Donald Trump.

• Influencer Wallet Insights: Users can monitor crypto transactions of major industry leaders, offering a new layer of market visibility and transparency.

• Enhanced On-Chain Transparency: By tagging influencers’ wallets, Arkham provides insights into trading behaviors, asset movements, and potential market trends.

Key Takeaway
Arkham’s KOL wallet tracking feature introduces a new level of on-chain transparency, allowing users to follow the financial activities of key crypto influencers and assess their market moves in real time.

SBF Placed in Solitary Confinement After Unauthorized Tucker Carlson Interview

Background
Former FTX CEO Sam Bankman-Fried (SBF) has reportedly been sent to solitary confinement at Brooklyn’s Metropolitan Detention Center after participating in an unauthorized interview with Tucker Carlson. The U.S. Bureau of Prisons stated that the interview was not approved by prison authorities.

Key Points

• Violation of Prison Rules: The Bureau of Prisons enforces strict rules on inmate communications, and SBF’s interview was not authorized.

• Carlson Interview Topics: The interview, published on March 6, covered prison life, crypto regulation, and SBF’s claim that he is "not a criminal".

• Speculation on Trump Pardon: Following the interview, Polymarket data suggests that odds of a Trump pardon for SBF have nearly doubled.

• Ongoing Legal Appeal: SBF is currently appealing his 25-year sentence, arguing that he was unfairly treated by prosecutors and the media.

Key Takeaway
SBF’s solitary confinement highlights the strict control over inmate communications, while his interview has fueled speculation about a possible Trump pardon for the disgraced FTX founder.

a16z Crypto Leads $7M Funding Round for Encrypted Blockchain Developer Seismic

Background
Venture firm a16z Crypto has led a $7 million funding round for Seismic, a developer focused on encrypted blockchain technology. Seismic aims to enhance onchain privacy at the application level, moving beyond traditional wallet-level encryption.

Key Points

• Funding Details: The round included participation from Polychain, 1kx, dao5, and NGC, alongside a16z Crypto as the lead investor.

• Seismic’s Innovation: The project is developing app-level encryption, allowing private onchain interactions for finance, social apps, and more.

• New Privacy Model: Instead of relying on zero-knowledge proofs, Seismic’s approach enables better composability for smart contracts, according to a16z GP Ali Yahya.

• Development Progress: Seismic is already live in devnet, with prototype applications being tested.

Key Takeaway
Seismic’s encrypted blockchain infrastructure represents a new approach to onchain privacy, and a16z Crypto’s backing highlights growing VC interest in privacy-focused Web3 solutions.

Sam Altman’s World Network Launches World Chat, a Blockchain Messaging App

Background
Sam Altman’s World Network has introduced World Chat, a blockchain-based messaging app that enables free global payments and verified user interactions within the ecosystem. The app, currently in beta, aims to combine private messaging and crypto transactions in a seamless experience.

Key Points

• Messaging Meets Payments: World Chat integrates secure messaging with instant cryptocurrency payments, similar to a super app.

• Privacy-Focused: The app emphasizes user privacy and secure transactions through blockchain verification.

• Inspired by iMessage: The design draws from Apple’s iMessage, offering a familiar interface with crypto-native features.

• Beta Launch Available: Users can now test the beta version, with broader adoption expected as the platform expands.

Key Takeaway
World Chat merges blockchain technology with secure messaging and crypto payments, positioning World Network as a key player in Web3 communication and financial services.

Garantex Warns of USDT Risks as Tether Freezes $27M in Russian Wallets

Background
Russian crypto exchange Garantex has warned users that USDT holdings in Russian wallets are at risk after Tether froze $27 million linked to the platform. The move follows EU and U.S. sanctions targeting Garantex over alleged ties to sanctioned Russian banks.

Key Points

• Tether Freezes Funds: Tether blocked $27M in USDT held by Garantex, citing compliance measures.

• Garantex Operations Halted: The exchange has suspended trading, and its website is offline for "technical work."

• Sanctioned by EU & U.S.: The EU blacklisted Garantex in February, calling it a key player in Russia’s financial network. The U.S. sanctioned the platform in 2022 via OFAC.

• Exchange Responds: Garantex accused Tether of “declaring war on the Russian crypto market”, stating it will fight back.

Key Takeaway
The Tether freeze on Garantex wallets marks an escalation in enforcement against Russian-linked crypto platforms, raising concerns over USDT accessibility for Russian users amid increasing sanctions.

Canary Capital Files for Axelar (AXL) ETF as Project Gains Institutional Momentum

Background
Canary Capital, led by former Valkyrie Funds co-founder Steven McClurg, has filed with the SEC to launch an ETF tracking Axelar’s AXL token. The move reflects growing institutional interest in cross-chain interoperability solutions, with Axelar already integrated by major players like J.P. Morgan, Microsoft, Uniswap, and MetaMask.

Key Points

• ETF Filing: Canary Capital submitted an S-1 filing to the SEC for an AXL-tracking ETF, aiming to bring institutional exposure to Axelar’s cross-chain ecosystem.

• Institutional Adoption: Axelar has been adopted by major firms, including J.P. Morgan, Microsoft Azure, Uniswap, and MetaMask, for secure cross-chain transactions.

• Regulatory Expertise: Brian Brooks, former Coinbase legal chief and Acting Comptroller of the Currency, has joined Axelar’s Institutional Advisory Board to enhance regulatory alignment.

• Market Position: AXL currently trades at $0.36 with a $340M market cap, down from its March 2024 all-time high of $2.69.

Key Takeaway
The proposed AXL ETF and Axelar’s expanding institutional partnerships underscore the growing demand for decentralized cross-chain solutions, positioning Axelar as a key player in blockchain interoperability.

Animoca Brands Revenue Rises 12% as AI Cuts Costs

Background
Animoca Brands reported $314 million in 2024 bookings, a 12% year-over-year increase, with growth fueled by expansion in advisory services, real-world asset (RWA) projects, and stablecoin initiatives. The company also cut operating expenses by 12% through AI-driven cost optimization.

Key Points

• Revenue Growth: Bookings rose from $280M in 2023 to $314M in 2024, with its Digital Asset Advisory (DAA) division seeing a 116% increase.

• AI-Driven Efficiency: Operational costs fell from $246M to $217M as AI optimized investment decisions, game development, and internal processes.

• U.S. Market Outlook: Co-founder Yat Siu expects continued growth, citing a more crypto-friendly U.S. political climate.

• Strategic Expansion: Animoca is deepening its presence in Web3 finance, stablecoins, and RWA projects.

Key Takeaway
AI-driven optimizations and strategic Web3 expansion have bolstered Animoca’s revenue and efficiency, positioning the company for continued growth in a shifting regulatory landscape.

Do Kwon’s U.S. Court Hearing Delayed as Prosecutors Review New Evidence

Background
A U.S. federal judge has postponed Do Kwon’s hearing to April 10 after prosecutors submitted four terabytes of new evidence related to the Terraform Labs fraud case. Kwon, the former CEO of Terraform Labs, is facing nine felony charges linked to the collapse of the Terra ecosystem.

Key Points

• New Evidence Submission: Prosecutors cited data from Kwon’s electronic accounts, crypto transactions, and communications.

• Past Data Disclosure: Authorities have already provided 600GB of data from Kwon’s phones, emails, and trading records.

• Legal Battle Continues: Kwon remains in U.S. custody after his extradition from Montenegro, with a trial set for January 2026.

Key Takeaway
The delay in Kwon’s case reflects the complexity of the Terra collapse investigation, with prosecutors gathering extensive evidence to build their fraud case.

Solana DEXs Lead Crypto Market Despite Memecoin Downturn

Background
Despite a major decline in Solana’s memecoin sector, Solana DEXs dominated trading volume for the fifth consecutive month, processing $109 billion in transactions, surpassing Ethereum’s $88 billion.

Key Points

• Solana DEX Leadership: Raydium, Meteora, and Orca drove record-breaking volumes, with Raydium alone processing $41B.

• Memecoin Market Decline: A series of scam token launches led to a 30% drop in SOL’s price and a sharp decline in Pump.fun token launches.

• Stablecoin & DeFi Resilience: While memecoin activity slowed, Solana’s overall ecosystem remained strong, buoyed by stablecoins and DeFi protocols.

Key Takeaway
Solana’s DeFi ecosystem remains dominant, with strong DEX volume and stablecoin adoption offsetting the memecoin sector’s collapse.

Trump's Tariffs Trigger ‘Trump Slump’ as Crypto Prices Drop

Background
The crypto market plunged after the Trump administration’s new tariffs took effect, with Bitcoin and Ether both losing over 10%. Investors are now reassessing their risk exposure as uncertainty grows over the broader economic impact.

Key Points

• BTC & ETH Decline: Both Bitcoin and Ether fell over 10%, erasing billions in market value within hours.

• Tariff Shock: The new U.S. tariffs introduced volatility, impacting crypto and broader financial markets.

• Investor Sentiment: Market participants are recalibrating risk exposure, leading to a pullback from crypto assets.

Key Takeaway
The "Trump Slump" signals that geopolitical and economic policies are increasingly shaping crypto market trends, with tariff-related uncertainty weighing on investor confidence.