Bitcoin dominance reached a four-year high of 62%; Cronos becomes the first blockchain to power direct crypto-to-debit transfers; Trump announced a strategic crypto reserve with BTC, ETH, XRP, SOL, and ADA.
US spotbitcoin ETFs had a net outflow of US$2.6 billion last week, the largest weekly net outflow since the ETFs launched and 440% more than the week before. Spot ether ETFs saw a net outflow of $336 million last week (vs a net inflow of $13 million the week before).
On the macro side, the US core personal consumption expenditures price index increased 0.3% in January and 2.6% annually, lower than the 2.9% annual change in December and in line with Dow Jones estimates. The latest CME FedWatch Tool showed a 93% probabilityof a March rate cut in the US (vs 94% last week). China’s manufacturing purchasing managers’ index (PMI) increased to 50.2 in February, the highest since November 2024.
Notable updates: Ethereum’s Pectra upgrade was activated on the Holesky testnet and experienced issues with finality; the Crypto.com App listed Kaito (KAITO), tokenbot (CLANKER), and Plume (PLUME)
Notable events in the coming week: ECB interest rate decision, US ISM manufacturing and services PMI, US nonfarm payrolls
Weekly Market Index
Price index dropped by -8.53% last week, while volume and volatility indices were up by +65.97% and +246.20%, respectively.
Prices saw a drastic drop at the start of last week. The drop coincided with US President Donald Trump announcing multiple tariff updates on trade tariffs, including plans to impose a 25% tariff on imports from the European Union and proposed tariffs on imports from Canada, Mexico, and China to come into effect on 4 March.
Towards the end of the week, prices recovered amid the White House announcing that Trump will host a crypto summit on 7 March. Additionally, Trump directed the presidential working group to move forward on a strategic crypto reserve that includes BTC, ETH, XRP, SOL, and ADA.
Volatility increase was led by ADA (+293.88%) and XRP (+265.02%), which coincided with news on the strategic crypto reserve.
Chart of the Week
Bitcoin dominance reached 62% on 25 February, the highest level since February 2021, which coincided with the broader crypto market seeing a drastic drop in prices during the day.
Bitcoin fell below $90,000 while some altcoins saw larger percentage declines. During times of volatility and a risk-off environment, investors may prioritise bitcoin for relatively higher stability, contributing to a higher bitcoin dominance.
Weekly Performance
BTC and ETH decreased by -2.7% and -11.7%, respectively, in the past seven days. Prices of other selected top market capitalisation tokens were mixed, with price increases led by ADA (+34.4%) and XRP (+11.2%), which coincided with news on the strategic crypto reserve.
Key categories mostly decreased in market capitalisation in the past seven days. The AI category led the increase while the Meme category led the decrease.
Ethereum’s Pectra upgrade was activated on the Holesky testnet and experienced issues with finality, which was related to configuration issues with execution layer (EL) clients. Client teams are working to restore the Holesky network functionality. In addition, the Ethereum Foundation announced a new leadership structure, welcoming Hsiao-Wei Wang and Tomasz Stańczak as co-Executive Directors, effective 17 March.
As of 2 Mar 2025 Sources: Crypto.com Research, Crypto.com Price, CoinGecko, protocols’ websites
Kaito is an AI-powered distribution platform that facilitates the transfer of information, attention, and capital. It aims to quantify influence based on metrics like engagement and content quality. Kaito’s decentralised model for information sharing and value creation connects creators, users, and brands in a more transparent system. KAITO serves as the native token, focusing on governance, transaction facilitation, and the monetisation of user attention.
Plume is a public blockchain designed and optimised for the integration of real-world assets(RWAs). It aims to bridge the gap between traditional finance and crypto by making RWAs more accessible, liquid, and efficient through DeFi infrastructure. PLUME serves as the native token.
The US state of Oklahoma’sHouse Bill 1203, known as the Strategic Bitcoin Reserve Act, passed the Government Oversight Committee and moved to the House floor for further consideration. Montana’sbitcoin reserve bill was rejected by House lawmakers, citing concerns about speculation with taxpayer money. South Dakota’s lawmakers voted to postpone the bill that will allow the state to invest in bitcoin to a later date. Texas’sSenate Bill 21, which relates to establishing a bitcoin and cryptocurrency strategic reserve, passed the Texas Senate Banking Committee on 27 February and moved to the Senate floor for further consideration.
Investment Vehicles
The Chicago Mercantile Exchange (CME) Group plans to launch Solana futures contracts on 17 March, pending regulatory review. It is expected to launch two contracts, a standard contract size of 500 SOL and another micro contract of 25 SOL.
Two Solana futures ETFs from Volatility Shares, Volatility Shares Solana ETF (SOLZ) and Volatility Shares 2x Solana ETF (SOLT), appeared on Depository Trust and Clearing Corporation (DTCC) for the first time. It should be noted that this does not mean the ETFs are approved for trading.
Nasdaq filed with the US Securities and Exchange Commission to list the Grayscale Polkadot Trust and Canary HBAR ETF, an ETF designed to hold Hedera Network’s native token by Canary Capital, adding to the list of crypto ETFs that are pending the SEC’s review.
US President Donald Trump’sexecutive order on digital assets directed the presidential working group to move forward on a strategic crypto reserve that includes BTC, ETH, XRP, SOL, and ADA.
The Finance Ministry of Pakistan is considering establishing a National Crypto Council to explore the legalisation of crypto, according to local publication Dawn. The council is expected to include key government representatives, regulatory authorities, and industry experts to oversee policy development.
Research Roundup Newsletter [Jan 2025]: We present to you our latest issue of Research Roundup, featuring our deep dives into The Significance of Meme Coins and DeFAI.
Alpha Navigator: Quest for Alpha [January 2025]: Most assets saw an increase, except ETH. BTC and Gold led the rise. Canada, Eurozone, and the UK reduced interest rates; China and the US kept rates unchanged; Japan increased rates.
DeFAI: DeFi x AI: DeFi is witnessing a fresh wave of innovation, with one of the most exciting developments being the fusion of DeFi and AI — often referred to as DeFAI. In this report, we look into the DeFAI landscape and delve into Griffain and HeyAnon as case studies, both of which are notable examples in the abstraction protocol category.
What Is DeFi Lending?: Learn how decentralised finance (DeFi) lending platforms can offer users potential passive income and access to loans without needing intermediaries.
APY vs APR — What Do They Mean?:Learn the differences between annual percentage yield (APY) and annual percentage rate (APR) in the crypto market.
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📈 Bitcoin dominance reached a 4-year high of 62%; Trump announced a strategic crypto reserve with BTC, ETH, XRP, SOL, and ADA
Bitcoin dominance reached a 4-year high of 62%; Cronos becomes the first blockchain to power direct crypto-to-debit transfers; Trump announced a strategic crypto reserve with BTC, ETH, XRP, SOL, and ADA
