Quick Take

• 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 spot bitcoin 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% probability of 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.

Check price

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.

Notable Token Updates

Newly Listed Tokens in Crypto.com App

News Highlights

Crypto.com / Cronos News

• Cronos partnered with Crypto.com to launch an industry-first service enabling users to withdraw funds to a personal prepaid card. Users can connect their non-custodial wallet on Cronos EVM or Cronos zkEVM to their Crypto.com Crypto Wallet, which can then be used to top up their Crypto.com prepaid Card.

Regulation

• The Dubai Financial Services Authority (DFSA) approved USDC and EURC as the first recognised stablecoins under the regime. This allows companies in the Dubai International Financial Centre (DIFC) to integrate the stablecoins into digital asset applications, including payments.

• The US state of Oklahoma’s House Bill 1203, known as the Strategic Bitcoin Reserve Act, passed the Government Oversight Committee and moved to the House floor for further consideration. Montana’s bitcoin 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’s Senate 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.

• Bitwise registered an Aptos ETF entity in Delaware, a move that potentially suggests a preparation for a S-1 filing with the US SEC.

Adoption

• US President Donald Trump’s executive 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.

• BlackRock added its iShares Bitcoin ETF Trust (IBIT) to its $150 billion model portfolio product, which consists of a range of investment portfolios sold to financial advisers. This will allow target allocation portfolios that include alternative assets to put a 1 to 2% allocation into IBIT.

• 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.

• Boerse Stuttgart Digital, the digital asset arm of a German stock exchange, is assisting German bank Dekabank to provide crypto trading services for institutional clients. This came after Boerse Stuttgart Digital Custody received a full license under the European Union’s Markets in Crypto-Assets (MiCA) framework.

Recent Research Report

• 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.

Recent University Articles

• 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.

• Ethereum vs Polygon: Scaling, Collaboration, and the Future of Blockchain: Explore the symbiotic relationship between Ethereum and Polygon, comparing Ethereum’s robust ecosystem with Polygon’s innovative scaling solutions.

Catalyst Calendar

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