Crypto Scoop: Bitcoin Trades at $96K as ETH Drops to $3,400

This week, Bitcoin rose to $96,000, and Solana surged over 10% as major global regulatory developments took shape. In this edition of Crypto Scoop, we explore:

• Price moves of top cryptocurrencies
• USDC market cap rises
• Global regulatory developments and adoption
• Institutional breakthroughs in blockchain and finance and more

Price Moves of Top Cryptocurrencies

Bitcoin had an interesting week, starting off at $93,000 before rising to $96,000 by week’s end. BlackRock’s iShares Bitcoin Trust ETF, the fastest-growing ETF in history, saw record outflows of $331 million, marking its largest single-day withdrawal since it launched.

Ethereum traded at $3,400 with its price roughly being steady throughout the week. Ethereum whales made headlines after liquidating over $45 million worth of Wrapped Ether (WETH), marking one of the largest movements of the asset in recent weeks.

Solana's price surge was 10%, climbing above the $200 mark. This rebound came on the heels of Pump. fun's $55 million SOL token transfer to Kraken, showcasing the network's resilience and investor confidence. Pump.fun also reported $14 million in daily revenues, approaching $400 million in total for the year.

Discussions around a potential U.S. spot Solana ETF approval are also drawing attention to SOL, with analysts noting the potential impact of regulatory developments on SOL’s market performance.

USDC Market Cap Rises as a Trader Nets $3M 

The stablecoin sector saw a significant boost as USD Coin (USDC) recorded an 80% increase in market capitalisation from its 2023 lows. This rebound signals renewed confidence in its role in providing stability for traders. Analysts suggest that USDC's growth may also be tied to increased adoption of DeFi platforms and cross-border payments.

Meanwhile, the memecoin frenzy continues to dominate headlines, with one trader turning a $66 investment into an astounding $3 million by capitalising on a memecoin inspired by Elon Musk’s brief name change on X. The trader’s profits underscore the high-risk, high-reward allure of the memecoin market.

Meanwhile, Tether joined forces with the Tron network and TRM Labs to freeze $126 million worth of USDT. The move highlights the industry’s proactive efforts to combat illicit activity and uphold transparency in stablecoin transactions.

Global Regulatory Developments and Adoption

In Africa, South African Member of Parliament Mzwanele Manyi has called for Bitcoin adoption as a strategic hedge against the depreciation of gold reserves. Manyi suggested that incorporating Bitcoin into the nation’s financial system could eliminate national debt within two years and unlock funding for industrialisation efforts, highlighting the growing recognition of Bitcoin’s potential as an alternative asset in Africa.

In Asia, Singapore continues to lead as a global crypto hub, with the Monetary Authority of Singapore (MAS) issuing 13 Major Payment Institution Licenses for crypto exchanges in 2024. This significant step demonstrates the nation’s proactive approach to fostering blockchain and Web3 innovation while maintaining a robust regulatory framework.

South Korea has reached a new milestone in crypto adoption, with 30% of its population—approximately 15.59 million people—now owning digital assets. This surge reflects the increasing integration of cryptocurrencies into everyday financial life, solidifying South Korea’s position as a leader in global crypto adoption.

Europe is making strides toward integrating cryptocurrencies into traditional finance as Switzerland debates a proposal to mandate the Swiss National Bank to include Bitcoin in its reserves. If implemented, this initiative could signify a major step in aligning digital assets with national monetary policies, showcasing Bitcoin's growing legitimacy.

Decentralised Finance (DeFi) Developments

On-chain data shows that decentralised exchanges (DEXs) recorded an all-time high trading volume of $478.8 billion during December 2024, highlighting the increasing migration towards decentralised trading platforms.

Bitcoin’s role in DeFi is also expanding, thanks to improvements in Bitcoin staking and the growth of layer-2 solutions. These developments are helping Bitcoin become more useful in decentralised financial services beyond just being a store of value.

Analysts also note that DEXs might soon handle up to 20% of the trading currently done on centralised exchanges. This reflects a shift towards platforms that offer trustless and transparent trading environments.