BlockBeats News: On February 1st, Andrei Grachev, a partner at DWF Labs, stated on social media that "this AI market correction can be seen as a rebalancing of its narrative, but it is definitely not the end. Think back to the BTC crash from 2017 to 2018. AI, AI agents, and DeFAI are currently at a very good entry point and have enormous potential. Not financial advice (NFA)
It's deja vu all over again in crypto after a hopeful report on a tariff delay was refuted by the White House.To review, President Trump on Thursday promised to impose 25% tariffs on Mexico and Canada beginning Saturday Feb. 1. Having rallied over $106,000 prior to that news, bitcoin (BTC) quickly reversed 2% lower to around the $104,000 level. U.S. stocks gave up a chunk of earlier gains, though still finished the session in the green.See all newslettersFriday then brought a report from Reuters suggesting the tariffs would be delayed until March 1 as a process was put in place to allow countries to seek exemptions for certain exports.The White House, though, called that report "false," with Trump's Press Secretary Karoline Leavitt minutes ago telling reporters the tariffs — including a 10% levy on China — will go into effect tomorrow.Similar to Thursday, bitcoin earlier had climbed above $106,000 and seemed set on a challenge of a new record above $109,000. The tariff news, however, once again sent prices careening lower, with bitcoin trading just below $103,000 at press time, down 2.3% over the past 24 hours. The broader CoinDesk 20 Index was off 1.3% over the same time frame, outperforming mostly due to ether's (ETH) 1.2% advance.A check of traditional markets find U.S. stocks still modestly higher, but well off their best levels of the session.
OKX-BTC/USDT is currently trading at $103092.00, with a 24-hour decline of 2.27%. Please pay attention to market fluctuations.
In the wake of President Donald Trump and First Lady Melania Trump’s recent official token launches, Elon Musk’s father, Errol Musk, is the latest to jump on the memecoin bandwagon.A UK gang of seven has been jailed after kidnapping, torturing and extorting a vulnerable man for £100,000 ($125,000) in cryptocurrency over several months before a police rescue, according to local media.
It was another busy week at CoinDesk as the new Trump Administration continued to roll out a pro-crypto agenda and the industry laid the groundwork for growth in the new cycle.Ripple was at the center of the news. Ondo Finance announced it would offer tokenized treasuries on Ripple’s XRP Ledger, Kris Sandor reported. The San Francisco company also said XRP Ledger would offer clawback features, enhancing liquidity for Ripple’s dollar-pegged stablecoin RLUSD, Shaurya Malwa reported. Meanwhile, CEO Brad Garlinghouse lobbied for XRP to be included in any national crypto reserve, riling Bitcoiners who say the reserve should be bitcoin-only. Omkar Godbole had that news, along with several incisive market analyses (his Daybook daily update is a must-read).In other protocol news, Cardano rolled out a hard fork (“Plomin”), enabling decentralized governance. And Avalanche said its December upgrade resulted in a 75% drop in transaction costs for users, a big win for that project. Meanwhile, Movement Labs unveiled a developer mainnet ahead of a much-anticipated L1 launch in February. Stablecoins, the most traded form of crypto, surged past a $200 million market cap. And Tether, issuer of the leading stablecoin, USDT, announced that it made $13 billion in profit for 2024, a healthy stockpile for further investments, Sandor also reported. At the same time, Howard Lutnick, the administration’s pick for Commerce Secretary, defended Cantor Fitzgerald’s custodial relationship with Tether during a Senate hearing.MicroStrategy, which pioneered the idea of corporate bitcoin treasuries, added further to its bags and outlined plans to raise more capital, James Van Straten reported. In ETFs, Bitwise won SEC approval for a combined bitcoin-ether ETF, and filed an application for a dogecoin ETF, Helene Braun reported. Grayscale opened a new closed-end fund trust offering exposure to dogecoin, saying the memecoin, which was started as a joke in 2013, had become a tool for global financial inclusion.There was also plenty of regulatory and policy news. Solana’s memecoin powerhouse, Pump.fun, was hit with a class-action lawsuit alleging securities violations. Cheyenne Ligon reported that story, as well as news that French authorities are expanding a money laundering and tax probe against Binance. Robinhood CEO Vlad Tenev joined BlackRock’s Larry Fink in calling for tokenized equity. And Jesse Hamilton, deputy managing editor for regulatory, reported on the continuing success of Fairshake, an industry SuperPAC. Meanwhile, Friday saw the parents of disgraced FTX founder Sam Bankman-Fried explore seeking a presidential pardon for their son. They are taking inspiration from the recent pardon Trump handed to Silk Road founder Ross Ulbricht. But, as Shaurya Malwa noted, the cases are very different and Joseph Bankman and Barbara Fried likely face an uphill task. It’s been an interesting few days in crypto and we’ll have plenty more for CoinDesk readers next week. As they say, stay tuned.
The supply of stablecoins on Solana jumped by 112% in January to a record high of $11.1 billion, CCData (a subsidiary of CoinDesk) said in a research report on Friday.The surge coincided with the launch of Donald Trump's memecoin $TRUMP, which caused a wave of inflows to the network, according to the report. Stablecoin supply has risen by 73.6% since $TRUMP launched on Jan. 18.See all newslettersTrading activity around $TRUMP resulted in record activity on decentralized exchanges (DEXs) and contributed to stablecoin supply on Solana, surpassing its previous record set in 2022 and becoming the third largest network behind Ethereum and Tron, based on this metric.The report also said that the market capitalization of all stablecoins has passed $200 billion, having grown by $37 billion since Trump won the U.S. election in November.The increase in supply has also coincided with a decrease in the domination of Tether's USDT, the largest stablecoin with a market cap of around $140 billion. According to CCData, its share of the sector dipped from 67.5% to 64.9% in January, the lowest since May 2023.One such beneficiary of this trend appears to be Ripple's USD, which became the fourth-largest stablecoin by trading volume on centralized exchanges in January, the report said. Ripple spent much of the last few years locked in a legal battle with the U.S. Securities and Exchange Commission (SEC). The "Trump effect" has helped native token XRP jump by 33% to trade at over $3.10 this month, and CEO Brad Garlinghouse has spoken of a bump in U.S.-based deals and hiring as well.Grayscale Files SEC Proposal to Convert XRP Trust Into ETF
