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Crypto Potato 2025-02-09 04:33:50

Here’s How the Crypto Market Performed in January, According to Binance Research

The research arm of the world’s largest crypto exchange, Binance, has released a report highlighting insights for the digital asset market in January 2025. It outlined how the crypto market reacted to several factors, including United States policy narratives, in the first few weeks of the year. According to Binance Research, early January saw the crypto market cap recover from a downturn experienced in December 2024, peaking at $3.76 trillion. This recovery was partly fueled by the change in U.S. administration and potential pro-crypto regulations. ETF Filings Rise in Pro-Crypto U.S. Administration After his inauguration, U.S. President Donald Trump signed an executive order that banned the creation of a U.S. Central Bank Digital Currency (CBDC) and explored the establishment of a national crypto reserve. These factors drove positive momentum in the market until late January, when the emergence of an artificial intelligence (AI) model, DeepSeek, shook the stock and crypto markets alike. DeepSeek became the most downloaded AI app, overthrowing OpenAI’s ChatGPT. This development triggered heightened volatility that has rolled into February, fueled even further by concerns about U.S. tariff policies. While the market struggles to recover, there has been a new wave of crypto exchange-traded fund (ETF) filings with the Securities and Exchange Commission (SEC), especially since the departure of the former head, Gary Gensler. Binance Research revealed that there are currently 47 active ETF filings in the United States, spanning 16 crypto asset categories, including meme coins. Meme Coins and AI Narratives Dominate Speaking of meme coins, Binance Research discovered that the emergence of token launchpads fueled a meme coin mania, leading to the creation of more than 37 million assets. Analysts predict that at least 100 million cryptocurrencies will be in circulation by the end of 2025. Unfortunately, this massive rise in the number of cryptocurrencies has divided capital, making it more difficult for tokens to sustain prices or reach high valuations. The influx of new tokens has also fueled speculation, reduced attention spans, and discouraged long-term holding. The top 100 tokens still account for 98% of the total crypto market cap. Regardless, some narratives in the market, like the decentralized finance AI (DeFAI) sector, remain robust and are attracting more capital. Meanwhile, Solana’s decentralized exchange (DEX) volumes have surpassed those of Ethereum monthly since October 2024, with the network leading in the meme coin and AI agent narratives. Last month, the Solana-to-Ethereum DEX volume ratio reached its all-time high of over 300%. The post Here’s How the Crypto Market Performed in January, According to Binance Research appeared first on CryptoPotato .

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