Author: Defx Intern

Ethereum experienced significant selling pressure on Monday, dipping below the $2,100 mark as whale wallets liquidated their positions. Two dormant wallets moved a total of $350 million worth of ETH to Bitfinex, triggering a 25% drop from the day’s opening price. The fall also impacted the DeFi lending platform Aave, which saw $200 million in liquidations, primarily in loans secured by Wrapped ETH.

However, this dip is being seen as a healthy market correction, similar to the one in August 2024. Ethereum managed to bounce back and close above its opening price on Monday, as whales bought the dip, accumulating a total of 50,429 ETH. This has kindled hopes of recovery among long-term holders, signaling a bullish path ahead for Ethereum.

Solana Stablecoins Gain Traction

While Ethereum faced a setback, Solana stablecoins have been making significant strides. The market cap of Solana stablecoins doubled in January, rising from $5.1 billion to $11.4 billion. This surge can be attributed to the growing popularity of meme coins on the Solana network, especially after the launch of a Solana-based memecoin by former U.S. President Donald Trump.

Circle’s USDC has emerged as the most sought-after stablecoin on the Solana chain, with a value of $9.25 billion, accounting for over 80% of all stablecoin transactions on the network. In contrast, Tether’s USDT dominates on Ethereum and Tron chains. The growth of stablecoins, coupled with the meme coin boost, suggests a bright future for altcoins on the Solana network.

Market Implications

The recent volatility in Ethereum’s price serves as a reminder of the market’s susceptibility to large whale movements. However, the quick recovery and accumulation by whales indicate a strong support level and bullish sentiment among long-term holders. This suggests that Ethereum may be poised for further growth in the coming weeks and months.

On the other hand, the rapid growth of Solana stablecoins and the increasing adoption of meme coins on the network highlight the potential for alternative blockchain platforms to gain market share. As more users and developers flock to Solana, it could emerge as a serious contender to Ethereum in the DeFi and stablecoin space.

Tags: Ethereum, Solana, Stablecoins, Crypto Market, DeFi

The XRP/BTC ratio is on the verge of breaking out of the upper Bollinger band on the monthly chart, a bullish signal not seen since 2017. This indicates a potential significant bull run for XRP in the near future, despite the grim outlook for alternative cryptocurrencies amidst the looming trade war between the U.S. and its major trading partners.

Key Market Implications

• The break above the upper Bollinger band suggests a bullish imbalance in the market, with prices likely to maintain the lead for several days in a high momentum pattern.
• Traders who track price patterns are expected to enter long positions once prices move past the upper band, further fueling the bullish sentiment.
• The reliability of the breakout is enhanced by the prolonged consolidation between the Bollinger bands prior to the breakout.

Technical Analysis

Bollinger bands are volatility bands placed plus two and minus two standard deviations above the 20-period simple moving average of an asset’s price. The XRP/BTC ratio’s move above the upper band is a significant bullish signal, especially considering the last time this occurred in April 2017, the ratio surged nearly 200%.

Tags: XRP, Ripple, Bollinger Bands, Technical Analysis, Cryptocurrency Market

Source: https://www.coindesk.com/markets/2025/02/04/xrp-teases-a-bollinger-band-breakout-against-bitcoin

TVM Ventures, an institution dedicated to supporting creators on the TON network, has unveiled a $100 million debut fund to invigorate the TON ecosystem. The fund aims to expand the network and help achieve the ambitious goal of onboarding 500 million onchain users by 2028.

The substantial investment from TVM Ventures is expected to attract more developers, entrepreneurs, and users to the TON ecosystem. By providing financial support and resources to promising projects, the fund will foster innovation and drive the growth of decentralized applications (dApps) on the network.

The TON ecosystem has been gaining traction since its launch, with its unique features such as instant hypercube routing, support for micropayments, and scalable infrastructure. The injection of capital from TVM Ventures is likely to accelerate the development of groundbreaking projects and solidify TON’s position as a leading blockchain platform.

As the race for mass adoption intensifies in the blockchain space, TON’s focus on scalability and user experience could give it a competitive edge. With the backing of TVM Ventures and the $100 million fund, the ecosystem is well-positioned to attract a wide range of users and become a significant player in the digital economy.

Tags: TON ecosystem, TVM Ventures, blockchain funding, dApp development, mass adoption

Source: https://news.bitcoin.com/tvm-ventures-unveils-100-million-debut-fund-for-the-ton-ecosystem/

The Commodity Futures Trading Commission (CFTC) has launched inquiries into Crypto.com and Kalshi Inc. regarding their recently introduced event contracts tied to the Super Bowl. The CFTC is reviewing these contracts to ensure they meet regulatory requirements and are not easily manipulable.

Crypto.com has expressed confidence in the legality of its event contracts and is prepared to cooperate with the CFTC’s inquiries. The company believes the CFTC is the appropriate regulator to ensure market integrity and prevent manipulation across all states.

Market Implications

The CFTC’s probe into these event contracts could have significant implications for the emerging market of sports-related derivatives. If the CFTC finds issues with the contracts, it could lead to enforcement actions or new regulations, potentially impacting the growth and adoption of these products.

The entry of major players like Crypto.com and Robinhood into this space highlights the potential for event contracts as a new asset class. However, the regulatory uncertainty surrounding these products may deter some investors and traders from participating until clearer guidelines are established.

Tags: CFTC, Crypto.com, Kalshi, event contracts, sports derivatives, regulation

Source: https://bitcoinist.com/cftcs-inquiry-crypto-com-kalshi-under-scrutiny/

Bitcoin is facing short-term uncertainty following President Trump’s announcement of new tariffs and a lack of retail dip-buying, according to the latest market outlook from Matrixport. Despite this, institutional demand for Bitcoin remains strong, driven by the growth of Bitcoin spot ETFs and the futures market.

Key market implications:

• Trump’s tariffs announcement has caused unexpected market reaction and short-term uncertainty for Bitcoin
• Lack of retail dip-buying contributing to Bitcoin’s price correction
• Strong institutional demand continues, supported by growth in Bitcoin spot ETFs and futures
• Bitcoin’s post-halving price action may be evolving in unexpected ways

Matrixport suggests that while short-term challenges persist, the underlying institutional interest in Bitcoin remains a positive long-term factor.

Tags: Bitcoin, market correction, Trump tariffs, liquidity, institutional demand

Original Article

Ethereum (ETH) has surged nearly 20% and reclaimed the $2,900 level after Eric Trump, son of former US President Donald Trump, endorsed the cryptocurrency on social media. Trump tweeted that now is “a great time to add $ETH,” fueling optimism among crypto investors.

The rally comes on the heels of a brief market downturn earlier this week sparked by concerns over potential US tariffs on Canada and Mexico. Trump’s temporary suspension of the tariffs boosted confidence in risk assets like crypto.

The Trump family has shown increasing involvement in digital assets through ventures like World Liberty Financial. The company recently transferred over $300M to Coinbase custody and acquired 1,826 ETH for $5M, in apparent preparation for launching a new DeFi lending protocol.

As institutional interest rises and Ethereum’s price rebounds, the second-largest cryptocurrency remains a focal point of the crypto market. The confluence of macroeconomic shifts, strategic investments, and political influence paint a dynamic picture for ETH’s future trajectory.

Tags: Ethereum, ETH, Donald Trump, Eric Trump, World Liberty Financial, DeFi, Coinbase

Bitcoin has recovered above the $98,000 level as the Coinbase Premium Gap flipped positive, signaling a resurgence of buying pressure from US-based investors on the exchange. The premium gap, which tracks the difference in BTC price between Coinbase and Binance, turned green after intensified selling from American whales drove prices down to $92,000.

The US institutional investors were the primary drivers of the Bitcoin market throughout 2024, and this trend appears to be continuing in 2025. The positive Coinbase Premium Gap suggests a bullish outlook for BTC, as long as it remains in the green territory. However, a dip below zero could reignite bearish sentiment.

Meanwhile, the Bitcoin Korea Premium Index hit a three-year high of around 12% following the recent crash, indicating heavy accumulation by South Korean investors during the dip.

Tags: Bitcoin, Coinbase Premium Gap, US Investors, Institutional Buyers, Bullish Sentiment

Backlink: Bitcoinist

Decentralized lending giant Aave successfully weathered extreme market volatility on Monday, efficiently processing over $200 million in liquidations without accruing any new bad debt. The protocol’s robust risk management and liquidation mechanisms were put to the test as crypto markets plummeted early in the day before recovering.

Aave’s strong performance highlights the resilience and maturity of top DeFi protocols. Effective liquidation of undercollateralized positions, combined with ample liquidity, allowed Aave to avoid realizing losses despite the turbulent conditions. This successful stress test demonstrates the soundness of Aave’s risk controls and collateral management.

Upcoming upgrades like Aave v3.3 and v4 with the Umbrella debt management system promise to further enhance Aave’s ability to handle market volatility and minimize bad debt. These developments underscore the ongoing evolution and strengthening foundations of open finance.

Tags: Aave, DeFi, lending, liquidations, risk management

Original reporting by Omkar Godbole on CoinDesk.

Eric Trump, son of Donald Trump, recently expressed bullish sentiment on Ethereum ($ETH), saying ‘it’s a great time to add $ETH’ as the price dipped over 20%. His endorsement sparked a rebound, with $ETH rising from $2.3K to $2.7K.

This price action likely benefits his father’s crypto venture, World Liberty Financial (WLFI), which holds over $200M in $ETH and $WBTC and is currently sitting on a $31M loss. Regardless of motive, Eric Trump’s bullish stance is a positive signal for the entire Ethereum ecosystem, including top Ethereum-based meme coins and presales such as:

• Solaxy ($SOLX) – Layer-2 bridging solution for Ethereum and Solana
• MIND of Pepe ($MIND) – AI-powered crypto trading insights
• Best Wallet Token ($BEST) – Native token of fast-growing crypto wallet with presale access

With renewed interest in $ETH, these meme coin projects could see a surge in adoption and value. However, always conduct thorough research and maintain a diversified portfolio to manage risk in the dynamic crypto market.

Bitcoinist

President Donald Trump’s recent executive order establishing a government-run sovereign wealth fund could have significant implications for Bitcoin and the broader crypto market. The move aligns with Trump’s campaign promise to leverage digital assets as part of the country’s economic strategy.

While the executive order does not explicitly mention cryptocurrencies, it aims to promote fiscal sustainability, reduce tax burdens, and enhance US economic influence globally. The fund’s potential to invest in a range of liquid assets and domestic resources suggests a shift in how the US manages its financial assets, potentially opening the door for Bitcoin and other digital currencies.

Norway’s sovereign wealth fund, the world’s largest, serves as a model for integrating Bitcoin exposure into institutional investment strategies. The fund’s indirect Bitcoin exposure rose by 153% in 2024, reflecting growing acceptance of the cryptocurrency among major players.

As the Trump administration develops its strategy for the sovereign wealth fund, the role of the newly appointed White House Crypto Czar will be closely watched. The potential inclusion of Bitcoin and other digital assets in the fund could mark a transformative moment for the crypto market.

Bitcoin, US Sovereign Wealth Fund, Donald Trump, Crypto Regulation, Institutional Adoption

https://bitcoinist.com/bitcoin-in-the-mix-trumps-executive-order/