Building Blocks #40

Your route to web3 alpha in the MENA region. Whether you’re a seasoned HODLer or just getting into crypto - we’ve got something for everyone to keep you ahead of the curve. By the community, for the community - Building Blocks.

Free merchandise Giveaways every single week ?? - read till the end to participate!

Birds Eye View (vs Last 7 Days)

?? Overall Crypto Market Cap: $3.32 Trillion (-2.6%)

?? BTC Dominance: 54.3% (-0.7 PPT)

?? Price Snapshot:

?? Bitcoin: $94939 (-1.9%)

?? Ethereum: $3308 (-5%)

? XRP: $2.31 (-4.12%)

?? Solana: $191 (-10.3%)

$19 trillion in transactions settled on the Bitcoin network in 2024

Bitcoin network transaction volume surged to $19 trillion in 2024, marking a significant increase from $8.7 trillion in 2023 and ending a two-year downward trend that began after 2021.

Data analysis from Riot Platforms' vice president of research Pierre Rochard reveals that Bitcoin transactions reached their highest point during the 2021 bull run at approximately $47 trillion before experiencing sharp declines in 2022 and 2023. As Rochard stated:

2024 proved transformative for Bitcoin, featuring the launch of a US-based BTC exchange-traded fund (ETF), the scheduled April 2024 halving, and Bitcoin reaching a historic peak of approximately $108,000. Read more here.

The Bitcoin network's hashrate — measuring the total computational power securing the network — achieved a new record of 1,000 exahashes per second (EH/s) on Jan. 3, 2024.

Subsequently, the hashrate decreased to approximately 775 EH/s currently, according to CryptoQuant data.

Bitcoin mining pools based in the United States generated over 40% of the global hashrate in 2024, while discussions continue about hashrate dominance — determining which country commands the most network computing power.

TheMinerMag reports that two American mining pools, Foundry USA and MARA Pool, were responsible for over 38.5% of blocks mined in 2024.

Despite increased hashing power from other regions, Chinese mining pools still maintain majority control of the Bitcoin network's hashrate.

Determining precise hashrate dominance remains challenging due to Bitcoin mining's pseudonymous and geographically dispersed nature.

While mining pools and companies may be based in specific countries, they often receive hashrate contributions from miners worldwide.

Additionally, virtual private networks (VPNs) enable users to hide their IP addresses — making it harder to accurately determine miners' true locations.

Mantra and Damac sign $1B deal to tokenize Middle Eastern assets

Mantra, a specialized blockchain platform designed for real-world asset (RWA) tokenization, has entered into a $1 billion collaboration with investment powerhouse Damac Group to facilitate token-based financial operations in the Middle East.

Damac, which manages investments across real estate development, data center operations, and hospitality ventures, will implement Mantra's technology to digitize its substantial asset holdings.

The collaboration, as detailed in a press statement, seeks to implement blockchain-driven clarity, protection, and accessibility for Damac's portfolio, with assets becoming exclusively accessible on the Mantra blockchain platform in early 2024.

Damac's innovative approach stretches beyond digital asset conversion. Based on CNBC coverage, American President-elect Donald Trump revealed that Damac founder and Emirati business magnate Hussain Sajwani has committed a minimum $20 billion foreign investment toward establishing new data centers throughout the United States.

In an interview, Mantra's co-founder and chief executive John Mullin emphasized that Damac's support "represents significant validation for RWA tokenization's future prospects."

This strategic alliance enables Damac to utilize Mantra's RWA-specialized blockchain for tokenizing its varied investment portfolio, encompassing properties, hospitality venues, manufacturing facilities, financial markets, and fashion enterprises.

Headquartered in the United Arab Emirates, this multibillion-dollar investment group's collaboration with Mantra advances the blockchain platform's mission to establish itself as "the preferred ledger of record" for RWAs.

"The UAE consistently demonstrates leadership in crypto innovation, and partnering to execute this vision alongside them marks a historic achievement for us," Mullin stated.

During an April 2024 episode of the Hashing It Out podcast with Cointelegraph, Mullin predicted tokenization would emerge as a dominant trend, driven by institutional interest and projects seeking regulatory compliance solutions.

Mullin, as Mantra's CEO, expressed his belief that "universal tokenization is inevitable," particularly regarding RWAs, as this enables institutional blockchain investment without exposure to more volatile digital assets.

He detailed his strategic perspective, noting that while tokenization capabilities are broadly available, creating truly transferable tokens requires integrating technology and token development with tangible ownership, corporate operations, and legal frameworks.

Interop Labs CEO and Axelar Network co-founder Sergey Gorbunov forecasted that tokenized asset values "will double in the year" 2025.

Gorbunov's prediction aligns with venture capital firm a16z's yearly industry analysis, which highlighted that "tokenizing unconventional assets could transform digital-era income generation."

Through enabling liquidity for traditionally illiquid assets, RWA tokenization can provide global investors, regardless of location, access to investment opportunities previously limited to larger-scale investors.

Standard Chartered debuts crypto services in Europe with new license

Standard Chartered, a leading global banking institution, is launching its cryptocurrency services in Europe following the acquisition of a digital asset license from Luxembourg authorities.

The bank disclosed on January 9 that it is establishing a new division in Luxembourg, which will serve as its European Union regulatory gateway for providing cryptocurrency and digital asset custody solutions.

This strategic expansion follows the implementation of the Markets in Crypto-Assets (MiCA) Regulation, a comprehensive regulatory framework for cryptocurrencies in the EU.

The Luxembourg operation will be helmed by Laurent Marochini, who previously served as the head of innovation at the prominent French financial institution Société Générale.

Initially, Standard Chartered's European cryptocurrency offerings will be restricted to Bitcoin and Ethereum, with plans to expand to additional digital assets in 2025, according to Waqar Chaudry, the bank's Head of Digital Assets.

The bank's European cryptocurrency services will exclusively focus on digital asset custody, providing secure storage and protection services for clients' digital assets.

"Trading services are not part of our Luxembourg offering, and we currently have no definitive timeline for introducing such services," Chaudry explained.

He emphasized that the custody service is internally managed by Standard Chartered, backed by substantial risk capital and balance sheet strength, positioning it as the sole global bank operating in this sector.

The Luxembourg initiative is part of Standard Chartered's comprehensive digital asset strategy to expand its cryptocurrency custody services worldwide.

This European launch follows the bank's recent introduction of cryptocurrency custody services in the United Arab Emirates in September 2024, where they also provided access to Bitcoin and Ethereum, the market's two leading cryptocurrencies by capitalization.

"We are thrilled to extend our digital asset custody services to the EU market, enabling us to support our clients with a product that is transforming traditional finance," stated Margaret Harwood-Jones, Standard Chartered's global head of financing.

She underscored that these new services will maintain rigorous security standards as a regulated entity within Europe.

Standard Chartered's journey into crypto trading services was initially documented in June 2024, with reports indicating that the bank would integrate the service within its London-based foreign exchange trading division.

The bank's interest in crypto trading services, however, dates back several years, with earlier reports revealing plans to establish a cryptocurrency exchange in Europe as early as 2021.

Further demonstrating its commitment, Standard Chartered became a member of a strategic fintech alliance in September 2021, aimed at promoting crypto industry best practices.

This alliance included prominent industry players such as Coinbase, Huobi, Six Digital Exchange, 100x Group, and other market leaders.

Venture Firm Multicoin Capital predicts Institutional "frenzy" driven by Tokenization and AI Agents in 2025

Multicoin Capital predicts 2025 will be a "transformative period" for Web3 as AI technology advances and tokenization sparks an "institutional investment surge," according to the venture capital firm's Jan. 7 analysis.

The report titled "Frontier Ideas for 2025," forecasts the rise of AI-operated "staff-free organizations" and "rapid acceleration" of institutional participation as security tokens finally "achieve significant market traction."

Additionally, investors will rely on AI-powered "opportunity seekers" to handle the expansion of emerging tokens and blockchain-based financial instruments, the analysis noted.

Market observers anticipate 2025 will rank among crypto's strongest periods, driven by President-elect Donald Trump's win in the US' November elections and increasing institutional investment into Bitcoin and Ether exchange-traded funds (ETFs).

"Following a crypto-friendly administration's rise to power in the US and unprecedented success of BTC ETFs, we anticipate 5 years of institutional hesitation giving way to urgent efforts to integrate crypto capabilities," Multicoin stated.

In November, US BTC ETFs surpassed $100 billion in total assets for the first time, Bloomberg Intelligence data revealed.

Multicoin anticipates tokenized private lending and startup investments will gain momentum initially, followed by public equity tokens later. Simultaneously, established financial institutions will "compete to deliver basic crypto-based financial services."

"Blockchain technology ensures all participants can access real-time, unchangeable transaction records. This transparency and security stands in sharp contrast to traditional finance's unclear and potentially vulnerable centralized systems," Multicoin explained.

In 2025, autonomous AI systems — machines independently pursuing sophisticated objectives — began transforming the digital landscape, developing Web3 platforms, issuing tokens and engaging with users independently.

Currently, with emerging "advanced reasoning capabilities, [AI] systems are developing abilities to think, strategize, implement, and adjust their actions," Multicoin noted.

Multicoin anticipates "the next wave of AI agents will be Alpha Hunters — specialized systems designed to identify and automatically trade profitable opportunities in real-time."

Ultimately, Multicoin suggests that "crypto markets will support ambitious launches of Zero-Employee Companies," potentially leading to "revolutionary advancements across business operations."

Experts predict the top crypto adopters in 2025: Institutions, retail, low-income countries

The cryptocurrency sector is set to experience another transformative year in 2025, driven by enhanced regulatory frameworks and unprecedented digital asset valuations.

Market sentiment remains bullish following the exceptional performance of 2024, during which Bitcoin reached its historic peak of $108,300 on Dec. 17, shortly after Donald Trump's triumph in the United States presidential race.

Industry analysts predict that with the anticipated regulatory reforms under Trump's incoming leadership, the cryptocurrency sector is positioned for further achievements, including expanded institutional participation and record-breaking global investor numbers.

The year 2024 witnessed crucial regulatory advancements across major jurisdictions.

In the European Union, the implementation of the Markets in Crypto-Assets Regulation (MiCA) on Dec. 30 marked a historic milestone as the world's first comprehensive crypto regulatory framework, establishing detailed guidelines for service providers.

In the Asian region, Singapore has established itself as an emerging crypto powerhouse through its "risk-adjusted" regulatory approach, successfully doubling its annual digital asset license issuance in 2024.

The city-state boasts impressive statistics with 1,600 blockchain patents, 2,433 industry-related positions, and 81 crypto exchanges - remarkable figures for a nation of under six million people.

These worldwide regulatory developments will catalyze increased participation from both retail and institutional investors, according to Chainalysis CEO Jonathan Levin.

"The coming year is expected to witness heightened adoption rates among institutional and retail investors, particularly as these regulations bring increased clarity to the sector," Levin shared in an interview.

He emphasized that these new regulatory frameworks will strengthen industry confidence, market stability, and user protection, "making the sector more appealing to retail participants."

Levin projected that regulatory clarity would drive daily crypto user numbers to unprecedented levels and accelerate the development of institutional products like exchange-traded funds (ETFs).

According to the 2024 Cryptocurrency Ownership report by Triple-A, approximately 560 million individuals, representing 6.8% of the global population as of July 12, held cryptocurrencies, as reported.

According to Pavlo Denysiuk, CEO of crypto payments firm Lunu, the global cryptocurrency holder base is projected to experience a threefold increase within the next two years, based on current adoption trajectories.

"This expansion signals broader mainstream acceptance, particularly in the payments sector," Denysiuk emphasized during his participation in a panel discussion at NFT Fest 2024.

The introduction of US spot Bitcoin exchange-traded funds has already catalyzed increased institutional participation by providing traditional financial entities with a more accessible avenue for Bitcoin investment.

The Bitcoin ETFs have accumulated nearly $110 billion in assets under management within their first year of operation, lending credence to analyst projections of a $200,000 Bitcoin price target for 2025.

This evolving landscape is expected to further cement Bitcoin's position as a legitimate asset class among institutional investors, as noted by Chainalysis' CEO, Levin:

Bitcoin's evolution as a savings technology is gaining significant momentum in the United States, supported by the Bitcoin Act — spearheaded by Wyoming Senator Cynthia Lummis — which advocates for establishing a strategic Bitcoin reserve.

The Bitcoin reserve initiative has garnered substantial backing following Donald Trump's victory in the November 2024 presidential election and the subsequent Republican Party majority in the Senate, according to Anastasija Plotnikova, co-founder and CEO of Fideum.

Bitcoin could potentially exceed the $1 million threshold if US lawmakers approve the Bitcoin Act, according to Adam Back, co-founder and CEO of Blockstream, Hashcash inventor, and one of the industry's most prominent cryptographers.

Throughout 2024, cryptocurrency activity demonstrated remarkable growth, surpassing the peak levels observed during the 2021 bull market, according to findings from Chainalysis' Geography of Cryptocurrency Report released in October 2024.

The Chainalysis Global Index, measuring worldwide cryptocurrency activity value, reached an unprecedented peak exceeding 0.75 during 2024's first quarter, as detailed in the report.

While 2023's crypto adoption was predominantly driven by lower-middle-income nations, the 2024 surge reflected increased cryptocurrency engagement across all income brackets. However, the report noted that high-income nations experienced a decline in crypto-related activities at the beginning of 2024.

Levin explained in an interview that the expanding global activity was primarily attributed to the growing practical applications of stablecoins and the launch of US Bitcoin ETFs:

“There were many factors driving this, from the launch of the Bitcoin ETF in the US to stablecoins supporting real-world use cases in low and lower-middle income countries and DeFi activity increasing significantly in sub-Saharan Africa, Latin America and Eastern Europe.”

Nations with low and middle-income economies, including India, Nigeria, and Indonesia, spearheaded adoption rates, with India securing the top position on the Chainalysis Global Crypto Adoption Index.

In the Latin American region, El Salvador's pioneering move to adopt Bitcoin as legal tender on Sept. 7, 2021, has generated over $31 million in profits within the initial three-year period.

Despite these profitable returns, President Nayib Bukele faced substantial criticism following Bitcoin's descent from its November 2021 peak of $69,000 after the FTX exchange collapse. El Salvador's Bitcoin investments suffered significant losses when the cryptocurrency plummeted to $16,000 during the market downturn.

According to Anndy Lian, an intergovernmental blockchain expert and author, El Salvador's Bitcoin adoption represented a crucial milestone in Bitcoin's integration into the global financial framework.

Lian shared his insights in an interview regarding how similar government initiatives could enhance Bitcoin adoption:

“As more countries ponder this path, we might see a gradual redefinition of what constitutes a ‘safe’ reserve asset. If Bitcoin becomes a staple in national reserves, it could fundamentally alter the landscape of global finance, pushing for more decentralized and digital approaches to economic stability.”

Bitcoin's potential emergence as a reserve asset alongside gold appears increasingly plausible. Over the past year, Bitcoin demonstrated remarkable performance with a 131% increase, while gold prices rose by approximately 30%, according to TradingView data.

Investor sentiment in the crypto market remains bullish for 2025, particularly after Bitcoin surpassed $100,000 on Jan. 6, a fortnight before Donald Trump's inauguration on Jan. 20 — an event anticipated to boost crypto markets through enhanced regulatory frameworks.

With analysts projecting Bitcoin prices between $160,000 and exceeding $180,000, the cryptocurrency's 2025 surge is expected to draw increased investor focus to the digital asset sector.

Weekly Merchandise Giveaway

?????? This week’s Fuze giveaway is a simple one ?? All you have to do is share this comment on this post with a one-liner on how Building Blocks helped you on your crypto journey.

Best 2?? answers win a special Fuze merch giveaway shipped right to their doorstep? ??

We’d love to hear from you!

Building Blocks ???? is built by the Web3/Crypto community, for the community..

And Fuze is a team of cryptocurrency,finance and security experts, building the future of digital assets in the UAE.

If you’re just a regular reader operating in the crypto space:

What other topics would you like us to cover?

How can we improve your cryptocurrency journey?

If you’re a financial institution looking to take your next step into the realm of crypto and blockchain technology; look no further.

Whether it’s making large trades using our OTC service, or benefiting from our embedded digital asset capabilities to launch tomorrow’s products today - Fuze has got you covered.

Learn more about them by contacting us here, or dropping us an email at [email protected].

See you next week!

Ciao,

The Fuze Team