January 2025

In December 2024, crypto market capitalization hit $3.91 trillion, fueled by regulatory optimism and institutional investment. As of January 31, 2025, the total market cap stands at $3.59 trillion.

Election Results and Crypto Industry Support:

President Donald Trump’s stance on cryptocurrency has contributed to a shifting regulatory landscape. That momentum continued on November 5th, when all Senate candidates backed by crypto-related groups won their races, marking a significant moment for crypto’s presence in U.S. politics.

Introduction of MiCA:

The European Union’s Markets in Crypto-Assets (MiCA) regulation fully took effect, offering much-needed clarity and guidelines for digital asset businesses across the region.

Bitcoin ETFs approved:

The SEC’s approval of multiple spot Bitcoin ETFs in January 2024 introduced new ways for investors to gain exposure to Bitcoin through regulated financial products, though investors should be aware of associated risks. As a result, prominent financial institutions such as BlackRock and Fidelity launched their own Bitcoin ETFs, further bridging the gap between traditional markets and digital assets.

January saw heightened volatility across the crypto market, with sharp moves in both directions.

Top Gainers

• Onyxcoin (XCN) soared on January 16th, jumping over 500% and marking one of the strongest single-day gains of the month.
• Nest Protocol (NEST) surged 51.2% on January 15, making it one of the month’s top performing assets.
• Horizen (ZEN) climbed 25.4%, rounding out the month’s standout performers.

Top Losers

• Goatseus Maximus (GOAT) tumbled 74.6% by January 31, hit by negative sentiment surrounding the on-chain AI agent sector.
• Simon’s Cat (CAT) fell 68.5%, struggling with weak market support for the broader meme coin ecosystem.
• GAME by Virtuals (GAME) dropped 55.0%, weighed down by broader market trends and project-related concerns.

Between institutional momentum, evolving regulations, and the ever-present meme coin frenzy, January was anything but dull.

XRP made waves in January, overtaking USDT to reclaim its spot as the third-largest cryptocurrency by market cap. The rally was fueled by growing institutional adoption, and the launch of Ripple’s stablecoin, RLUSD—a move that reinforced confidence in XRP’s long-term role in digital payments.

Meanwhile, the crypto market saw its share of controversy. KuCoin was hit with a $297 million penalty for operating without a U.S. license, forcing a two-year market exit and the resignation of its founders. Over in France, Binance came under investigation for alleged money laundering and tax fraud dating back to 2019.

And in true crypto fashion, meme coin mania continued with the launch of $TRUMP and $MELANIA tokens, both capitalizing on political hype before experiencing sharp price swings. At the same time, U.S. asset managers filed proposals for memecoin ETFs, sparking debate over whether this signals a new chapter for crypto investing or just another speculative cycle.

New on Uphold: January Listings

Four new assets landed on Uphold this month: TRUMP, TAI, PRIME, and VVV. Want to know what they’re all about? Check out the quick summaries below, and follow the links to explore their latest prices! 

TRUMP: The meme that won’t quit

Official Trump ($TRUMP) is a community-driven memecoin that celebrates a leader who “never backs down.” It has no real utility or intrinsic value, thriving purely on cultural relevance and community enthusiasm—just like many others in the meme token space.

TAI: AI-powered tools for Solana

TARS AI ($TAI) is an AI infrastructure protocol built for the Solana blockchain. Backed by a grant from the Solana Foundation, it’s designed to help onboard Web2 users into Web3 by integrating AI with Solana’s high-speed, scalable network. With over a million Solana users, TARS AI aims to make Web3 adoption more seamless.

PRIME: Web3 gaming token 

Echelon Prime ($PRIME) is a blockchain-based gaming ecosystem developing new game models and digital economies. Running on Ethereum and Base, it enables secure player engagement and in-game asset management, giving users more control over their gaming experience

VVV: An unfiltered AI alternative

Venice Private and Uncensored AI ($VVV) is an AI platform that claims to offer unrestricted interactions, positioning itself as an alternative to mainstream AI models like ChatGPT. By avoiding censorship, it aims to provide users with a completely unfiltered AI experience.

Trump’s Executive Order

On January 23, President Trump banned a U.S. central bank digital currency (CBDC), and ordered the development of a cryptocurrency working group who’ll work to establish a new digital asset regulatory framework and look into the creation of a national digital asset reserve.

💡 Why it matters: The U.S. lacks clear crypto regulations. A federal framework could bring clarity but may also introduce stricter controls. The CBDC ban reinforces the administration’s stance that the private sector, not a government-issued digital dollar, will drive the future of digital assets in the U.S.

0% Capital Gains Tax? 

Speculation has emerged around discussions of a potential 0% capital gains tax for U.S. crypto firms, though no official policy has been introduced or confirmed.

💡 Why it matters: If enacted, it could make the U.S. more competitive with crypto hubs like Dubai and Singapore—but for now, it’s just speculation. While discussions around a potential 0% capital gains tax have surfaced, no formal policy has been proposed or implemented.

Europe’s MiCA regulations tighten rules 

In Europe, the Markets in Crypto-Assets Regulation (MiCA) came into effect on December 30, 2024, introducing stricter rules for the crypto sector, including new prudential requirements and licensing mandates for firms operating within the EU. These developments reflect a global trend toward more structured and comprehensive regulatory frameworks in the cryptocurrency industry.

💡 Why it matters: Some believe it boosts trust, while others worry it could drive businesses elsewhere.

Fed Rate Cut and Bitcoin’s Response

The Federal Reserve cut interest rates by 25 basis points, a move that typically boosts investor confidence. This time, however, expectations of fewer cuts ahead kept sentiment cautious. Bitcoin reacted with a 4.6% drop to $101,300, reflecting broader uncertainty.

Inflation Data Fuels Speculation

A 2.9% annual increase in inflation briefly sent Bitcoin up 2.9% to $99,032, as traders speculated that persistent inflation might push the Fed toward further easing.

Bitcoin and Tech Stocks Move in Sync

Bitcoin continued to mirror the performance of tech stocks, showing a 0.5 correlation coefficient with the Nasdaq Composite. This link became even clearer when China’s DeepSeek AI launch triggered a selloff in AI stocks, dragging Bitcoin down alongside them.

Gold vs. Bitcoin: Different Safe Haven Stories

Gold maintained its perception as a steady hedge against inflation, supported by fears of slowing global growth and central bank accumulation. Bitcoin, however, seemed to show little correlation with gold, responding more to rate changes and shifts in tech markets.

💡 Takeaway

Bitcoin has historically shown correlation with interest rate movements and tech stock trends, though market conditions and investor behavior can shift over time.

Adoption & Innovation: What’s Next for Crypto?

In January 2025, the cryptocurrency landscape saw several significant blockchain developments.

Cardano's Plomin Hard Fork:

On January 29, Cardano executed the Plomin hard fork, transitioning to fully decentralized governance, giving ADA holders direct voting power and enhancing community participation in decision-making.

Ethereum’s Pectra upgrade announced:

The Ethereum Pectra upgrade is scheduled for completion this year, bringing significant enhancements to the network's scalability, security, and user experience. This upgrade introduces improvements in account abstraction, validator operations, and overall network performance.

Notably, Ethereum Improvement Proposal (EIP) 3074 will enable standard crypto wallets to function like smart contracts, simplifying transactions and broadening accessibility. Additionally, Pectra lays the groundwork for future scalability solutions, such as Verkle trees, which aim to optimize data storage and retrieval. Key updates include increased validator stake limits, flexible staking withdrawals, and streamlined smart contract deployment, all contributing to enhanced network efficiency and security.

💡 Takeaway

These upgrades highlight crypto’s ongoing evolution, focusing on decentralization, user experience, and scalability.

As January comes to a close, the crypto market continues to evolve with new regulations, macro shifts, and blockchain innovation. Stay tuned as we track how these trends shape February’s market moves.