The Cryptocurrency market started in 2025 with an increase and reached a market value of $ 3.76 trillion on January 7, driven by Pro-Crypto US Policies
However, sentiment shifted sharply later in January after Deepseek’s AI breakthrough, which triggered concerns about overvalued US technical shares and led to a broader sale of traditional and crypto markets, according to Crypt street.
Despite the turbulence, the crypto market still increased by 4.3%in January, with remarkable gains for XRP (+47.8%), Solana (+24.7%) and Bitcoin (+11.7%). At the same time, Ethereum (-8.2%) and Avalanche (-9.3%) saw reductions when liquidity was moved to other assets.
Important stories to look at in February 2025
Regulatory and macroeconomic developments
- US Trade Policy: Potential new tariffs can affect investors’ risk appetite and affect crypto prices.
- Federal Reserve Rate Decision: With only two interest rate cuts expected for 2025, cautious monetary policy can slow down capital inflow to speculative assets.
- Stablecoin regulations: The US legislature discusses compliance with StableCoin issuers, which can form institutional adoption.
Crypto ETF expansion
The United States now has 47 active crypto ETF applications, which marks a shift in addition to Bitcoin and Ethereum ETFS. Upcoming approvals for Altcoin and Memocoin ETFS can drive new liquidity in the market.
Solana’s continued defi- and dex growth
Soana has surpassed Ethereum in Dex’s volume for four months in a row, run by:
- Memecoin speculation ($ TrumpThe $ Melania)
- Low fees and high transaction speeds
- Increased validation of valids and liquidity incentives
With January Sola-to-Ethereum Dex ratio that reaches a maximum time, the most important question remains: Can Solana maintain its dominance, or will Ethereum regain the market share?
You have and defy integration
Artificial intelligence is still the dominant crypt toThe and accounts for 44%of the market discussions and exceeds Memecoins (10%) and Defi (9.7%).
While AI-related tokens saw a correction at the end of January, interest in AI-driven defi applications and trading in the chain is expected to grow, according to Binans’s report in February 2025.
A fleeting but possibility
As February develops, the crypto market faces both regulatory uncertainty and growth potential. Key factors to monitor include:
- Crypto ETF approval
- US economic policy
- Defi activity at Solana and Ethereum
- AI’s expanding role in cryptoinnovation
When institutional adoption and new market trends emerge, traders and investors should keep attention to changing stories and liquidity movements in the coming weeks.
