Summary of the last 24 hours of social chatter.

Crypto Market Report: February 7-8, 2025

Summary

The crypto market experienced a volatile period marked by significant price swings and a general bearish sentiment. While positive news emerged, including institutional interest in Bitcoin and Ethereum, regulatory developments, and new project launches, the market remained under pressure.

The most notable event was the announcement of reciprocal tariffs by President Trump, which triggered a sharp decline in the market. This highlights the ongoing sensitivity of crypto to macroeconomic factors and geopolitical events.

Despite the bearish trend, several new projects and tokens gained attention, particularly in the AI and DeFi sectors. The launch of new Layer 1 blockchains like Ondo Chain and Solayer, along with the growing popularity of AI agents, suggests continued innovation and development within the crypto space.

News and Developments

Layer 1 Blockchain Launches

• Ondo Finance launched Ondo Chain, a new Layer 1 blockchain designed to combine the security and compliance features of permissioned blockchains with the openness of public chains like Ethereum. Several institutions, including Franklin Templeton, Wellington Management, and WisdomTree, are joining the Ondo Ecosystem. theblock.co/post/339113/ondo-finance-expands-onchain-offerings-with-new-layer-1-blockchain

• Solayer unveiled its LAYER tokenomics ahead of its Token Generation Event (TGE) on February 11th. The project is developing InfiniSVM, a next-generation blockchain architecture. Solayer raised $10.5M during its public sale round in January. x.com/solayer_labs/status/1887533566676115532

Project Updates and Partnerships

• Story Protocol introduced its IP tokenomics ahead of its Mainnet launch. The project is an open-source repository for intellectual property owners. Story raised $140M in three funding rounds backed by a16z, Samsung Next, Hashed Fund, and others. story.foundation/blog/introducing-ip

• Sui partnered with Libre Capital. t.me/top7ico/9287

• Orbit partnered with io.net to make AI actions on the blockchain more transparent. x.com/ionet/status/1887535479811092605

• Mantle proposed an enhanced index fund targeting $1B AUM for institutional investors, with a launch planned for H1 2025. snapshot.box/#/s:bitdao.eth/proposal/0x48366a1fb033cc4cd9e50912a595c978f85ab3089faf3008c9439c3f22a88efc

• Fragmetric raised $7M in a Seed funding round co-led by Finality Capital Partners and Hashed. x.com/fragmetric/status/1887864059212775506

• Superlogic closed a $13.7M Series A funding round. finance.yahoo.com/news/superlogic-completes-13-7-million-174700490.html

• Uniswap hit another monthly all-time high in swap volume on Base. x.com/Uniswap/status/1885019427046883358

Regulatory News

• The SEC acknowledged Grayscale's filing for a Solana-based ETF, marking a potential shift in the agency's stance on crypto regulation. coindesk.com/policy/2025/02/07/u-s-regulator-pursuing-tokenization-pilot-to-tap-stablecoins-as-collateral

• The SEC delayed its decision on BlackRock's iShares Ethereum Trust Options. sec.gov/files/rules/sro/ise/2025/34-10237.pdf

• The CFTC is planning a digital assets CEO forum to discuss a pilot program for tokenization involving stablecoins and distributed ledger technology. coindesk.com/policy/2025/02/07/u-s-regulator-pursuing-tokenization-pilot-to-tap-stablecoins-as-collateral

• Japan asked Apple and Google to remove unregistered crypto exchange apps, including Bybit, MEXC, LBank, Kucoin, and Bitget. cointelegraph.com/news/japan-removes-unregistered-crypto-exchange-apps

Institutional Activities

• BlackRock increased its stake in MicroStrategy (MSTR) to 5%. coindesk.com/markets/2025/02/07/blackrock-increases-ownership-of-strategy-to-5

• MicroStrategy announced plans for a 15% BTC yield in 2025, which could result in at least $10bn additional buying pressure on BTC.

• Fidelity outflows 1,070 BTC ($105.42M) and currently holds 210,883 BTC ($20.78B). x.com/lookonchain/status/1887533484362899663

• BlackRock (iShares) inflows 3,748 ETH ($10.28M) and currently holds 1,356,682 ETH ($3.72B). x.com/lookonchain/status/1887533484362899663

Market Trends and Price Movements

• The crypto market experienced a significant decline, with BTC dropping below $95k and ETH falling below$2,700.

• USDC supply hit a new all-time high of $56 billion. x.com/coinbase/status/1887870139602702562

• Ethereum raised its gas limit, which could potentially lead to increased demand for blockspace. share.pandaterminal.com/s/CjT6S503

• Bitcoin ETFs saw $171.3M net inflows, while Ethereum ETFs saw$0.0M net outflows.

• Solana experienced a slight bounce, with $SOL trading above$190.

• Memecoins continued to struggle, with $PEPE and$TRUMP experiencing significant losses.

Degen Alpha

New Token Launches

• Fireframe launched on Solana. dexscreener.com/solana/jcjtckc4yaskpspjt34isws5ffmpzzrmls1j88ofvh7g

• $IP (Story Protocol) listed on Bybit pre-market. bybit.com/en/trade/spot/pre-market/detail?token=IP

• $IP (Story Protocol) listed on Aevo pre-market. twitter.com/aevoxyz/status/1888093293478822009

• $TON (TON Network) airdrop for users. TONDROPCbot

Upcoming Events

• Solayer TGE and claiming: February 11th. discord.com/channels/1205402870858649640/1205402871407972384/1337255468829245484

• MetaWin "Millionaire" raffle draws. metawin.com/competition/27974/

• **$SOON** ecosystem exploration on OKX Cryptopedia with$500,000 worth of $SOON rewards. x.com/soon_svm/status/1887864650022498322

Patterns and Insights

• Institutional interest in Bitcoin and Ethereum continues to grow. BlackRock's increased stake in MicroStrategy and the SEC's acknowledgment of Grayscale's Solana ETF filing suggest a growing appetite for crypto among institutional investors.

• The market remains sensitive to macroeconomic factors and geopolitical events. President Trump's announcement of reciprocal tariffs triggered a sharp decline in the market, highlighting the need for investors to consider these factors when making investment decisions.

• The AI and DeFi sectors are experiencing significant innovation and development. The launch of new Layer 1 blockchains like Ondo Chain and Solayer, along with the growing popularity of AI agents, suggests continued growth in these areas.

• The market is becoming more complex and sophisticated. Real alpha now comes from research that requires technical understanding and assessing the downstream implications of design decisions on consumers.

• The use of pump and dump schemes remains prevalent. The popularity of pump and dump bots like PumpFun highlights the need for investors to be cautious and conduct thorough research before investing in any project.

• The market is experiencing a bifurcation between retail investors and institutions. Retail investors are generally more bearish, while institutions and builders remain optimistic about the long-term potential of crypto.

• The use of OTC markets is increasing. The booming OTC market suggests that some investors are seeking to avoid the volatility of public exchanges.

• The market is still in a state of flux. The lack of a clear regulatory framework and the ongoing development of new technologies create uncertainty and volatility.

Disclaimer: This report is for informational purposes only and should not be considered investment advice. Always conduct your own research (DYOR) before making any investment decisions.