Chain Reaction - 10th February 2025

Welcome back to another big week in blockchain. First up, our very own co-founder Arturo R. (aka Numbers DeFi) penned this piece on dark markets and how RWA tokenisation unlocks them which Redbelly Network shared last week to much popularity. Check it out here?

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Also, I was lucky enough to get down to see the Novatti Group (ASX: NOV) crew for their summit. They're working on their AUDD stablecoin which you'll see more of below.

https://www.dhirubhai.net/feed/update/urn:li:activity:7293396254510698496/

Also in local news, check out the work from Lucas Cullen here as he helped a client recover $1.5m of BTC. He shared some lessons here

Great news for XDC Network launching on Layer Zero

https://x.com/carbonneutralx/status/1887592323284148446?t=vV7wZ1kcVZGjrdTcXkYyVw&s=19?

And getting AUDD to launch on their network

https://x.com/AUDD_digital/status/1887624057836933496?t=vjEsB_mpXM0uSXoEVuManw&s=19?

No(r)way! The world's biggest pension fund just backed Bitcoin!?

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A little room for stepping back if folks are concerned about prices. Perspective can help here thanks to Ben Simpson ?

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Interesting thread from the CEO of Wintermute here

https://x.com/EvgenyGaevoy/status/1886254961576579487?t=VKYNXsPMj_j_QuyMyghYAw&s=19?

Joint submission here on crypto tax in Australia with Damian Lloyd and Cadena Legal and others

https://www.dhirubhai.net/feed/update/urn:li:activity:7292118344940302336/??

A reminder here about volatility from Tommy Honan of Swyftx

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Elon out here wanting the US treasury on Blockchain?

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Did you see that the father of modern finance (Eugene Fama) called Bitcoin valueless in 10 years

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Interesting to see a comparison of the so-called valueless product versus the standard measure of traditional finance in the S&P 500

New article here from a web3 supporter over in Perth, Jacek Korneluk, M.Sc. of Spektrumlab Pty Ltd , this time diving into the topic of AI and natural versus artificial intelligence

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Leaving you here with the Alpha Node Global monthly report that we got in our mailboxes. They’ve been great supporters of ours from over in Perth so check out their insights below?(and thanks to Ben Ritchie for sharing)

Alpha Node Global - Market Overview

January 2025 saw significant developments in the cryptocurrency market, driven by a combination of regulatory shifts, institutional accumulation, and broader macroeconomic factors. Bitcoin, starting the month at $95,301.81, surged to a high of $109,225 before closing at $105,508.46, marking a 10.71% net gain. The rally was fueled by expectations surrounding Donald Trump’s pro-crypto administration and the lifting of restrictive regulatory measures. Ethereum had a more stable performance, opening at $3,408.97 and closing at $3,431.62, reflecting a modest 0.66% gain. Institutional players continued to drive market activity, as Bitcoin ETF holdings soared to 1,167,762 BTC ($122.4B), led by BlackRock’s iShares Bitcoin Trust. This backdrop of institutional growth set the tone for January’s market movements, linking to regulatory decisions and key policy changes that signaled long-term bullish potential.

Stablecoin Liquidity

• Total stablecoin market capitalization grew to $204B, an increase of $37B since November 2024.
• USDT’s market cap reached $139B, and USDC’s market cap hit $53.4B.
• Rising stablecoin issuance mirrored Bitcoin’s price surge and provided liquidity during periods of market volatility.

DeepSeek Effect

• On January 27, Chinese AI startup DeepSeek unveiled its R1 model, creating disruptions in the tech sector.
• Nvidia’s stock fell by 17%, wiping $465B in market value.
• The crypto market mirrored this downturn, with Bitcoin temporarily falling below $100K and $850M in leveraged positions liquidated within 24 hours.

Macroeconomic Indicators

• December 2024 inflation: 2.9% YoY, with Core CPI at 3.2%.
• Personal Consumption Expenditures (PCE) core inflation: 2.8% YoY.
• Q4 2024 GDP growth was 2.3%, reflecting slowing momentum.
• The December 2024 jobs report showed 256K jobs added, with the unemployment rate steady at 4.1%.
• The Federal Reserve held rates steady on January 29, citing inflationary pressures.

Where Are We Currently in This Cycle

• On-chain data shows an early distribution phase:
• Ki Young Ju (CryptoQuant) predicted that Trump’s pro-crypto policies could extend the accumulation phase into mid-to-late 2025.

Ethereum

• Ethereum’s price exhibited modest gains, closing January at $3,431 (+0.7%).
• Vitalik Buterin announced scaling plans for both Layer 1 and Layer 2, raising mixed reactions from investors.

DOGE

• Elon Musk and Vivek Ramaswamy were appointed to lead the Department of Government Efficiency (DOGE) in November 2024.
• Dogecoin experienced notable price volatility due to Musk’s involvement and media attention.

Sector Performance

• Top Performing Sectors:
• Declining Sectors:

Other News

• World Liberty Financial (WLF) Accumulation:
• FTX Bankruptcy Repayments:

Wrap-Up

January 2025 set the stage for a transformative year in the crypto markets, driven by regulatory reforms and growing institutional interest. Bitcoin’s continued integration into investment portfolios, Ethereum’s technical development, and favorable liquidity conditions suggest sustained growth potential. However, the market’s trajectory remains dependent on broader economic trends, capital flows, and regulatory clarity, making the coming months critical for long-term market dynamics.

Read the full report and deeper analysis on their website https://alphanode.global/

That's it for this week folks, see you next time!

About Aus DeFi Association

The Australian DeFi Association (Aus DeFi) is a non-profit community organisation dedicated to increasing education and awareness of blockchain technology, specifically decentralised finance (DeFi) and web3-based projects. Their goal is to empower the Australian community with the knowledge and tools to participate in the decentralised economy, and to promote the adoption and growth of blockchain technology in Australia. They strive to provide a more grassroots approach to promoting blockchain technology compared to other industry-focused organisations in Australia, and to provide a platform for community members to learn about and engage with this emerging technology.

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