Building Blocks #44
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.
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Birds Eye View (vs Last 7 Days)
?? Overall Crypto Market Cap: $3.22 Trillion (-1.1%)
?? BTC Dominance: 58.1% (+2 PPT)
?? Price Snapshot:
?? Bitcoin: $97948 (-4.5%)
?? Ethereum: $2777 (-11.6%)
? XRP: $2.52 (-18%)
?? Solana: $205 (-11.6%)
'Atypical' Bitcoin bull market can extend beyond March 2025
Bitcoin's network has achieved unprecedented levels of "value stored" as its realized capitalization surpasses $850 billion for the first time.
Bitcoin has seen capital inflows approaching $500 billion since the depths of the 2022 crypto bear market.
Consequently, its realized cap — calculated by using the price at which each coin was last transferred on the blockchain — has reached historic peaks.
Measuring from the cycle bottom in Nov 2022, when the realized cap stood at $400B, Bitcoin has now accumulated an additional capital inflow of approximately +$450B, pushing the Realized Cap to more than double its previous value.
This indicates the total 'value stored' in Bitcoin is now around $850B, with each coin valued at its last on-chain transaction price.
Anaysts say that the Realized Cap and the economic volumes settled by the Bitcoin network offer empirical evidence that Bitcoin both has ‘value’ and ‘utility’, challenging the assumption by critics that it has neither.
Analysis shows that daily settlement volume has maintained roughly $9 billion throughout the past year. During this period, the Bitcoin network has processed over $3 trillion in transactions.
Looking at capital inflow patterns reveals that the present BTC price cycle is "atypical."
Historically, cycle peaks have emerged about one year after seeing an initial maximum in the proportion of wealth contained in coins moved within the previous three months.
Glassnode, a crypto analytics company, noted: "Whilst new demand this cycle is meaningful, the wealth held in 3-month old coins is much lower than it was compared to previous cycles. This suggests that there has not been the same magnitude of new demand inflows, seeming to occur in bursts and peaks, rather than on a sustained basis."
Notably, all prior cycles concluded roughly one year after the initial ATH break, emphasizing the unusual nature of our current cycle, which first achieved a new ATH in March 2024.
Wall Street is betting on $30T RWA tokenization market prospects
Real-world asset (RWA) tokenization emerged as a dominant crypto narrative in 2024. The sector witnessed substantial expansion across various asset categories, with tokenized Treasury securities experiencing a remarkable 179% surge and private credit growing by 40%.
The sector's total market capitalization demonstrated robust growth, expanding by 32% and outpacing the broader cryptocurrency market. Industry leader VanEck projects the RWA market to exceed $50 billion by year-end, highlighting the strong momentum driving this innovative trend.
A significant milestone has been the widespread acceptance of tokenization among established financial institutions. Industry giants including JPMorgan, UBS, BlackRock, Citi, and Goldman Sachs have progressed from exploratory interest to comprehensive implementation of blockchain solutions.
These institutions' initiatives are revolutionizing the management, trading, accessibility, and utilization of real-world assets across sectors and geographical boundaries. The growth in tokenized Treasury securities was particularly noteworthy in 2024, expanding from $769 million in January to an impressive $2.2 billion by September.
The transformation has been remarkable - from tokenizing less than $2 billion in RWAs three years ago, the market has now reached $16.82 billion. This trajectory is further validated by Fidelity's January analysis, which identifies tokenization as the breakthrough application for 2025.
Developing economies stand to benefit significantly, as tokenization provides enterprises and retail investors access to previously inaccessible financial opportunities and liquidity pools.
Institutional interest in tokenization is also driven by its potential to enhance market transparency. Asset-backed securities (ABSs) exemplify this advantage. Tokenized ABSs enhance the securitization process by establishing transparent, permanent ownership and transaction records.
This increased transparency mitigates risks and builds confidence - essential elements often lacking in conventional financial markets. For investment managers, tokenization reduces operational complexity while improving investor accessibility.
A prime example is Franklin Templeton's Franklin OnChain US Government Money Fund (FOBXX), which leverages blockchain for share tokenization. This innovative approach streamlines investment processes and democratizes access, particularly benefiting investors previously restricted by substantial entry requirements.
The blockchain technology landscape has undergone significant maturation in recent years. Initial concerns regarding scalability and security have dissipated as robust solutions demonstrate their effectiveness. JPMorgan's Onyx platform exemplifies enterprise-ready blockchain technology poised for widespread adoption. Similarly, infrastructure providers like Securitize have established reliable frameworks for efficient RWA tokenization and trading.
The market is witnessing escalating institutional demand for liquidity solutions. Investment products such as BlackRock's USD Institutional Digital Liquidity Fund (BUIDL) and Franklin Templeton's Benji are gaining traction by effectively addressing industry-specific funding challenges.
These blockchain-enabled funds maintain the core functionality of traditional money market instruments while delivering enhanced benefits, including accelerated settlement processes and seamless integration with DeFi ecosystems.
Regulatory attitudes toward tokenization are evolving positively. Rather than implementing restrictive measures, authorities are developing comprehensive frameworks that balance innovation with investor protection.
A notable shift in blockchain and digital asset development is underway in the United States, while the United Arab Emirates has positioned itself as a global hub for blockchain and tokenization initiatives. This reflects a broader global recognition of tokenization's practical applications in modern asset management.
Market volatility has emerged as another catalyst. Tokenization serves as an effective hedge during uncertain periods, offering enhanced trading flexibility and portfolio management capabilities. The ability to swiftly adjust tokenized portfolios provides an advantage unmatched by conventional financial infrastructure.
Perhaps most significantly, there's growing momentum behind financial democratization. Tokenization reduces entry barriers, enabling retail investors to participate in previously exclusive institutional opportunities. This broader market participation enhances liquidity depth and strengthens financial ecosystem resilience.
The tokenized asset market reached approximately $13.9 billion by late 2024, marking a substantial 67% increase from $8.3 billion at the year's start. Industry analysts project significant growth potential, with market estimates ranging between $4 trillion and $30 trillion by 2030, suggesting a possible fifty-fold expansion within years.
Leading institutions are already demonstrating successful implementation. BlackRock's BUIDL fund showcases tokenization's capacity for rapid scaling. The technology's application is expected to expand into more sophisticated asset classes moving forward. Private credit, characterized by its high-risk, high-reward profile, represents a particularly promising sector for development in 2025.
Tokenization is revolutionizing market dynamics by introducing unprecedented transparency and operational efficiency, making financial markets more inclusive and resistant to manipulation. Industry leaders on Wall Street recognize these transformative signals and are positioning themselves to spearhead this evolution.
AVAXAI builds first Deepseek powered DeFAI product
The evolution of artificial intelligence (AI) has brought remarkable breakthroughs, with swift developments in AI frameworks - particularly Deepseek - catalyzing innovation across sectors, enhancing automation, strategic planning, and predictive capabilities. Simultaneously, Web3 is transforming traditional concepts of ownership and financial systems through decentralization, making the fusion of these technologies inevitable. Yet, the challenge of merging AI with blockchain and decentralized systems remained unsolved—until recently.
AIvalanche DeFAI Agents (AVAXAI) is spearheading this convergence by introducing the first Deepseek-enabled DeFAI solution on the Avalanche blockchain, creating a seamless connection between premium AI models and decentralized ownership. The platform enables users to develop, oversee, deploy, and exchange tokenized AI and DeFAI agents powered by Deepseek while harnessing Avalanche's superior scalability, swift transactions, and environmentally conscious infrastructure. Through the integration of decentralized ownership with the expanding AI and DeFAI agents marketplace, AIvalanche DeFAI Agents creates fresh opportunities for innovation and value generation within the Web3 ecosystem.
Deepseek represents a cutting-edge AI model engineered for decision-making, data interpretation, and autonomous functionality, while AIvalanche DeFAI Agents is crafted to introduce tokenized AI and DeFAI agents to the Avalanche C-Chain. The platform integrates Avalanche's robust scalability, rapid processing, and security features with advanced AI capabilities to establish a fluid environment where users can effortlessly create, manage, and launch tokenized AI and DeFAI agents with minimal complexity.
Through AIvalanche DeFAI Agents, users can harness and monetize the complete potential of Deepseek-powered AI and DeFAI agents in a decentralized, trustless ecosystem, transforming our interaction and ownership of intelligent AI agents.
AIvalanche DeFAI Agents has secured backing from leading entities within the Avalanche ecosystem. The platform receives support from Avalaunch, the leading launchpad for Avalanche-based projects, and AVenturesDAO, a community-driven investment organization.
This robust foundation of support demonstrates how prominent Web3 innovators recognize AIvalanche DeFAI Agents' vision to address the escalating need for decentralized AI and DeFAI agents. With its network of strategic supporters, AIvalanche DeFAI Agents is positioned to enhance platform adoption and development on an unprecedented scale.
AIvalanche DeFAI Agents is generating significant momentum through its ongoing public sale across several prestigious launchpads, including Ape Terminal, Polkastarter, Avalaunch, and Seedify. These established platforms provide extensive reach to retail investors, empowering the community to play an active role in shaping the future of the Web3 AI agent economy.
Post-public sale, AIvalanche DeFAI Agents is set to broaden its horizons with forthcoming listings on major centralized exchanges, including Gate.io and MEXC. These strategic listings are designed to improve accessibility to the AVAXAI token, boost liquidity, and fortify the platform's expanding ecosystem.
Backed by strong institutional support, a continuously evolving platform, and strategic public sales and exchange listings, AIvalanche DeFAI Agents is poised to cement its position at the convergence of AI and DeFi.
Alvalanche DeFAI Agents stands as the pioneering AI and DeFAI agent hub, enabling universal access to create, launch, and trade tokenized AI and DeFAI agents powered by Deepseek and other leading AI models on the Avalanche C-Chain. The platform's groundbreaking approach merges artificial intelligence with blockchain technology, facilitating co-ownership and revenue generation through tokenized AI and DeFAI agents.
For more information about Avalanche DeFAI Agents, visit Avalanche DeFAI Agents.
Cboe Global Markets learns from crypto and launches 24-hour stock trading to meet growing customer demand
Cboe Global Markets, a leading global exchange operator specializing in derivatives and securities, has unveiled its intention to implement round-the-clock trading during weekdays, as announced on February 3.
According to the exchange's official statement, this strategic expansion is designed to "address increasing worldwide customer demand for enhanced accessibility to U.S. equities markets." This development coincides with the rising prominence of real-world asset (RWA) tokenization platforms, which already provide continuous 24/7 trading capabilities as an alternative to conventional securities markets.
"We consistently receive feedback from global market participants, especially those operating in Asia Pacific markets including Hong Kong, Japan, Korea, Singapore, and Australia, expressing their desire for increased access to U.S. equities trading," explained Oliver Sung, who heads North American equities at Cboe.
Sung emphasized that Cboe's extensive experience in managing around-the-clock exchanges across various markets positions them well to "effectively support a 24x5 trading framework for U.S. equities." The planned schedule will maintain continuous trading Monday through Friday, excluding weekends.
The trend toward continuous trading is gaining momentum among traditional U.S. equities exchanges. In August, 24X National Exchange submitted a revised application to American regulators, proposing a securities exchange platform that could potentially enable non-stop trading for cryptocurrency exchange-traded funds (ETFs).
Within the United States, while cryptocurrency platforms like Coinbase operate without interruption, traditional securities exchanges - where crypto ETFs are traded - limit their operations to between 9:30 am and 4:00 pm Eastern Time.
Simultaneously, RWAs - digital tokens representing ownership rights to traditional assets such as stocks, bonds, or real estate - have experienced significant growth following Donald Trump's November electoral victory, which has fostered a more accommodating regulatory environment for cryptocurrency activities.
These RWA tokens can be traded continuously through decentralized exchanges (DEXs) operating on blockchain networks.
As of February 3, RWA markets achieved a significant milestone, reaching a cumulative all-time high exceeding $17.1 billion, distributed among more than 82,000 asset holders, excluding stablecoin valuations, as reported by RWA.xyz.
According to a Tren Financial report consolidating predictions from various financial institutions and consulting firms, RWAs could experience exponential growth, potentially expanding more than 50-fold by 2030. In a conversation with Cointelegraph, Colin Butler, Polygon's global head of institutional capital, highlighted that RWAs represent a global market opportunity worth $30 trillion.
Among the most prominent RWA funds are tokenized money market instruments including Hashnote Short Duration Yield Coin (USDY), BlackRock USD Institutional Digital Liquidity Fund (BUIDL), and Franklin OnChain US Government Money Fund (FOBXX). As of February 3, RWA.xyz reports that tokenized money market funds collectively manage over $3 billion.
Additionally, Apollo Global Management, a private equity firm, announced its collaboration with Securitize on January 30 to introduce a tokenized private credit fund.
US Bitcoin ETFs could pull in over $50B in 2025 - Bitwise
Spot Bitcoin exchange-traded funds (ETFs) in the US accumulated nearly $5 billion in inflows during January, suggesting potential annual inflows exceeding $50 billion this year, according to Bitwise investment leader Matt Hougan.
"The initial results are promising: Spot Bitcoin ETFs attracted $4.94 billion in January, projecting to ~$59 billion annually," Hougan stated in a Feb. 1 X post. "For perspective: Throughout 2024, they accumulated $35.2 billion."
He noted that while "flow patterns show considerable monthly variations," he expects Bitcoin ETFs to "conclude the year exceeding $50b."
Last December, Hougan and Bitwise's research director, Ryan Rasmussen, anticipated that Bitcoin ETF inflows in 2025 would exceed 2024 levels. They reported 2024 inflows reached $33.6 billion, surpassing initial analyst expectations of $15 billion at their January 2024 launch.
BlackRock's iShares Bitcoin Trust ETF (IBIT) dominated January inflows, securing $3.2 billion, with Fidelity Wise Origin Bitcoin Fund (FBTC) following at nearly $1.3 billion during the same timeframe, based on Farside Investors data.
Among the 11 ETFs, Bitwise's fund, the Bitwise Bitcoin ETF (BITB), ranked fifth in January net inflows, gathering over $125 million, trailing the Grayscale Bitcoin Mini Trust ETF (BTC), which collected approximately $398.5 million.
In their December analysis, Hougan and Rasmussen projected higher Bitcoin ETF inflows for 2025, expecting institutional investors to "intensify" and increase their fund allocations.
The analysts emphasized that an ETF's initial year is "traditionally the slowest," citing gold ETFs' performance, which saw $2.6 billion in first-year flows in 2004, more than doubling to $5.5 billion in 2005.
Hougan and Rasmussen mentioned that major wirehouses "haven't yet deployed their wealth management teams," who've largely been restricted from accessing Bitcoin ETFs and predicted this would change this year, potentially exposing the funds to trillion-dollar investments.
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