The cryptocurrency market began in 2025 with a violent growth, achieving market capitalization worth $ 3.76 trillion on January 7, headed by the American policy Pro-Crypto
However, the sentiment changed rapidly in January after the turn of AI Deepseek, which caused concerns about overstated technological actions in the USA and led to a wider sale on customary and cryptographic markets, according to cryptographic markets, according to cryptographic markets, according to cryptographic markets Crypto Street.
Despite the turbulence, the cryptographic market continued to augment by 4.3%in January, with attention -notes’ profits for XRP (+47.8%), Solana (+24.7%) and Bitcoin (+11.7%). Meanwhile, Ethereum (-8.2%) and Avalanche (-9.3%) recorded a decrease in liquidity when fluidity changed to other assets.
Key narratives to watch in February 2025.
Regulatory and macroeconomic development
- Trade policy in the USA: Potential novel tariffs can affect the appetite on the risk of investors and affect cryptographic prices.
- Decisions on the federal reserve rate: with only two reductions in the rates expected in 2025, cautious monetary policy may sluggish down capital influx to speculative assets.
- Stablecoin provisions: USA legislators discuss compliance measures for Stablecoin issuers that can shape the institutional party.
ETF Expection Crypto
The United States now has 47 vigorous ETF Crypto applications that mean shift outside ETF Bitcoin and Ethereum. The upcoming approval of ETF Altcoin and Memecoin can introduce novel liquidity to the market.
Continuous growth of DEFI and DEX Solana
Solana exceeded Ethereum in the volume of Dex trade for four consecutive months, driven by:
- Memecoin speculation ($ TrumpIN $ Melania)
- Low fees and high transactions
- Increased incentives to accept validation and liquidity
In the January-Ethhereum Dex relationship, achieving the highest level of all time, the key question remains: can Solana maintain her dominance or will the Ethereum regain market share?
You have and you oppose the integration
Artificial intelligence remains the dominant cryptographic narrative, responsible for 44%of market discussions, exceeding memecoins (10%) and DEFs (9.7%).
While AI tokens have recorded a correction at the end of January, interest in DEFI applications and chain trade agents will grow Binance report in February 2025.
Unstable, but affluent in the possibility of the market
With the development of February, the cryptographic market is in the face of regulatory uncertainty as well as growth potential. Key monitoring factors include:
- Approval of ETF Crypto
- USA economic policy
- DEFI activity for salt and ethereum
- The expanding role of AI in cryptographic innovations
Along with the growing institutional market trends and novel market trends, traders and investors should be vigilant to change the narrative and liquidity in the coming weeks.
