Bitcoin trades with high volatility as Trump launches memecoin
Weekly Market Update #57
Before diving into this week’s update, be sure to check out some of our recently released research content:
Major developments for the week:
Spot Bitcoin and Ethereum ETFs: Net flows were $1.8 billion for Bitcoin ETFs and $212 million for Ethereum ETFs
Donald Trump plans to issue executive orders on cryptocurrency policy on his first day in office
Virtuals_io unveils a refreshed value accrual mechanism
Solv Protocol reveals plans to launch a new token
Trump open to establishing a reserve backed by US-founded coins
Multicoin Capital puts forward a proposal to adjust SOL’s emission rates
Animecoin sets the date for its token generation event
President Trump introduces a Trump-themed memecoin
VitalikButerin changes his profile picture to a Milady and discusses adjustments to the Ethereum Foundation’s leadership structure
Moonshot breaks into the top 10 in the US Apple App Store
WorldLibertyFi announces ETH purchases
Hyperliquid Assistance Fund adds $PURR
Melaniatrump releases her own memecoin
WorldLibertyFi multisig acquires ETH, TRX, AAVE and LINK
The Ethereum Foundation considers new staking options
Trump Mulls U.S.-Based Crypto Reserve
President-elect Donald Trump is said to be considering the creation of a strategic reserve featuring U.S.-origin cryptocurrencies such as Solana, USDC and XRP. This marks a notable departure from his 2019 remarks, when he dismissed cryptocurrencies as highly volatile and rooted in “thin air.” The proposed plan has fuelled debate within the crypto community, with some sceptics cautioning that favouring U.S.-based altcoins over Bitcoin could undermine the initiative’s credibility. Even so, many remain optimistic that these developments could ultimately prove beneficial for the broader crypto landscape.
Trump Introduces the $TRUMP Meme Coin
On 17 January 2025, President-elect Donald Trump introduced a new cryptocurrency meme coin called $TRUMP. Initially met with scepticism, its legitimacy was established when Trump announced it through his official X and Truth Social accounts. The Solana-based $TRUMP saw a rapid increase in value, reaching a market capitalisation of nearly $13 billion within two days. Around 80% of its total supply is held by Trump-owned businesses, CIC Digital LLC and Fight Fight Fight LLC, with a plan to release these tokens gradually over three years.
Melania’s $MELANIA Memecoin and Market Volatility
Two days later, on 19 January 2025, Melania Trump unveiled her own cryptocurrency, the $MELANIA memecoin. Priced initially at about $12.03, it quickly climbed to a market capitalisation of $1.9 billion. Its launch caused substantial volatility in the $TRUMP market, triggering a temporary 40% dip before rebounding to around $11.7 billion. Both $TRUMP and $MELANIA are marketed as digital collectibles for entertainment, rather than standard investments. Yet their sudden emergence has spurred debate on potential conflicts of interest and ethical ramifications, especially in light of the Trumps’ imminent return to the White House.
WLFI’s Multi-Million-Dollar Crypto Buys
World Liberty Financial (WLFI), a decentralised finance project connected to Donald Trump, recently made substantial cryptocurrency acquisitions. On 12 December 2024, WLFI deployed $12 million in USDC from its multisig wallet to acquire 2,631 ETH ($10 million), 41,335 LINK ($1 million), and 3,357 AAVE ($1 million). These purchases triggered significant price surges: ETH climbed by 6%, LINK rose by over 20%, and AAVE jumped more than 30%. Then, on 19 January 2025, WLFI expanded its holdings further, adding 14,403 ETH, valued at $48 million, at an average price of $3,333.
Over the five trading days ending 17 January 2025, spot Bitcoin ETF flows totalled approximately $1.86 billion, despite pronounced outflows on the first two days. On 13 January, the market recorded a net outflow of $284 million, led by significant redemptions in FBTC and ARKB. The outflow continued on 14 January at $210 million, chiefly driven by a steep drop in IBIT. From there, inflows surged: on 15 January, more than $755 million poured in as FBTC and ARKB led the way, and IBIT registered a substantial gain. The momentum persisted on 16 January with $626 million flowing in, underpinned by a large contribution from IBIT (over $500 million). The final day’s $976 million inflow capped off a rebound, leaving IBIT and FBTC as the dominant contributors overall, while GBTC posted the most notable net outflow.
Over the five trading days ending 17 January 2025, aggregate spot Ethereum ETF flows totalled approximately $212 million, despite starting with a net outflow of $39 million on the first day. After a modest positive flow of $1.2 million on 14 January, inflows accelerated on the 15th to almost $60 million, led principally by ETHA ($19.8m) and FETH ($29.3m). The 16th of January then registered the largest single-day inflow of $166.6 million, driven by strong subscriptions into ETHA ($111.2m) and FETH ($70m), although ETHE posted a substantial outflow of nearly $19 million. The final trading day added another USD 24 million in net inflows, bringing the five-day picture to a firmly positive total, with ETHA and FETH together accounting for the lion’s share of the gains, while ETHE and Grayscale ETH struggled with net outflows over the period.
A New Era for Ethereum: Milady NFT Endorsement and Foundation Leadership Revamp
In other Ethereum related news, Vitalik Buterin recently updated his X profile picture to Milady NFT #9286, generating significant interest and boosting the NFT’s market value. Many interpret this gesture as a personal endorsement of Milady, a project celebrated for its distinctive artwork and vibrant community. Meanwhile, Buterin announced forthcoming leadership changes at the Ethereum Foundation, designed to improve communication, provide greater support to developers, and reinforce the Foundation’s commitment to decentralisation. Among the proposals is the replacement of Executive Director Aya Miyaguchi with Danny Ryan and Jerome de Tychey, placing a strong emphasis on transparency and deeper community engagement.
In parallel, the Ethereum Foundation is contemplating staking its ETH holdings rather than selling tokens to finance operations. Prominent community voices, including Anthony Sassano and DCinvestor, have suggested staking or employing DeFi solutions on platforms such as Aave to generate stablecoins. Although regulatory risks have eased, Buterin remains cautious, highlighting that staking may force the Foundation to take sides in contentious chain splits. Consequently, the Foundation is actively exploring ways to mitigate these challenges while preserving Ethereum’s long-term vision.
Hyperliquid Experiences New ATHs Across Several Metrics
New all-time highs were achieved on 20 January for Hyperliquid, including a 24-hour trading volume of $21 billion, an open interest of $4.7 billion, and 24-hour protocol revenue (covering fees and HLP ) totalling $9.5 million.
In other Hyperliquid related news, Animecoin has announced that holders who stake Hyperliquid’s HYPE token will receive ANIME tokens via a special airdrop at the time of its Token Generation Event. This move is part of a wider approach to allocate 50.5% of the entire ANIME token supply to the community, including Kaito yappers, Arbitrum users, and anime enthusiasts. Scheduled for release on both the Ethereum and Arbitrum blockchains, the ANIME token aims to reshape the anime landscape by cultivating a community-owned creative economy.
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