Coin Metrics Week in Review | March 3 - March 9, 2025

Happy Monday!?Here’s a look at the latest industry updates for the week ending March 9th.In State of the Market, Bitcoin briefly hit $95K after Trump’s Strategic Crypto Reserve announcement, but gains faded amid skepticism. Meanwhile, the SEC eased its crackdown, and BlackRock , CME Group , and Bitwise Asset Management signaled growing institutional adoption.?In State of the Network, our Analyst Spotlight: Solana Overview examines Solana’s resurgence, exploring its technical strengths, tokenomics, and adoption trends as it cements its role in DeFi and beyond.?Also, check out our latest video on predicted market funding rates, where we analyze volatility trends in crypto futures using the Coin Metrics API.

Connect with Coin Metrics this Month

The Coin Metrics team will be at the following events this month, and we’d love to connect with you.?

• Blockworks Digital Asset Summit 2025 (NYC) – March 18-20
• Exchange ETF (Las Vegas) – March 23-26

If you’re attending, let’s set up a time to meet.

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In our 211th issue of State of the Market, we saw crypto seesaw?as Bitcoin surged past $95K and Cardano spiked 70% following President Trump’s announcement of a Strategic Crypto Reserve. However, enthusiasm faded amid doubts over feasibility and approval. Trump’s tariffs on Canada, Mexico, and China added macroeconomic pressure, while the SEC eased its crackdown, dropping cases against Kraken Digital Asset Exchange and Cumberland DRW and clarifying that most memecoins aren’t securities. Institutional adoption remained strong, with BlackRock adding BTC to its model portfolio, CME Group announcing Solana futures, and Bitwise Asset Management allocating to on-chain credit protocol Maple Finance, leveraging BTC-backed lending for institutional yield opportunities.

Here are the top takeaways:

• Trump’s Strategic Crypto Reserve: The proposed government-held portfolio caused a brief market rally before fading.
• SEC Softens Stance: Cases against Kraken and Cumberland DRW were dropped, adding to recent crypto enforcement rollbacks.
• BlackRock’s Bitcoin Allocation: The firm added 1-2% BTC exposure to its model portfolio, influencing institutional flows.
• Solana Futures & ETF Speculation: CME plans to launch SOL futures on March 17, boosting prospects for a Solana spot ETF.
• Bitwise & Maple Finance: Bitwise made a strategic allocation to BTC-backed lending on Maple Finance, highlighting the growth of institutional DeFi.
• Ethereum’s Pectra Upgrade Delay: Testnet issues on Sepolia and Holesky could push back the mainnet timeline.

Read the State of the Market

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In the 301st issue of State of the Network,? we?dive into Solana (SOL) as part of our Asset Spotlight series, examining its technical strengths, tokenomics, and growing role in DeFi and institutional adoption. Once affected by the FTX collapse, Solana has rebounded, now ranking as the 6th largest digital asset with a ~$90B market cap.?Meanwhile, crypto markets remain volatile. Bitcoin briefly fell below $78K before rebounding on news of Trump’s proposed “Crypto Strategic Reserve.” The announcement triggered a short-lived rally, but skepticism quickly set in.

Here are the top takeaways:

• Solana’s Performance Edge: Fast block times and parallel transaction execution support high throughput and low fees.
• Economic and Tokenomic Changes: Staking dynamics and new validator incentives, including SIMD-0096 adoption.
• Stablecoins & Institutional Adoption: PayPal and USDC are integrating with Solana’s network.
• Market Volatility: BTC dropped over 20% to $78K, highlighting patterns seen in previous bull market cycles.
• Trump’s Crypto Reserve: The announcement fueled a brief market rally before skepticism set in.
• Key Market Risks: Validator costs, MEV extraction, and whale-driven volatility continue to shape Solana’s outlook.

Source: Coin Metrics Network Data Pro

Read the State of the Network

Analyst Spotlight: Solana Overview

With the new administration adding SOL to the US crypto strategic reserve, Solana is positioned to challenge Ethereum as the premier smart contract platform. Known for its low fees, fast transaction speeds, and growing adoption, Solana continues to show resilience and potential for growth. Recent validator upgrades, increased institutional interest, and the rise of meme coins have all contributed to a surge in SOL's price. What’s driving Solana’s momentum?

• Tokenomics Shift: New incentives enhance validator rewards and alter SOL’s burn rate.
• Technical Upgrades: QUIC protocol and SWQoS improve transaction efficiency and reliability.
• Expanding Adoption: Retail and institutional investors increasingly turn to Solana’s high-speed ecosystem.

In our latest Analyst Spotlight, we break down SOL’s economic structure, validator network, and on-chain trends—all powered by Coin Metrics data.

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Exploring Predicted Market Funding Rates

Understanding predicted market funding rates is key to navigating the crypto futures market. In our latest video, Senior Solutions Engineer Matthias Funke demonstrates how to analyze volatility trends and market behavior using the Coin Metrics API.

This in-depth walkthrough covers:

• How to filter and analyze predicted funding rates across futures markets
• Identifying the most volatile funding rates using real data
• Recognizing patterns in funding rate timing and market anomalies
• Spotting outliers like ALGO USD perpetual futures on Deribit

Watch the full demo to learn how funding rate predictions can provide valuable trading insights.

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Get in Touch

As always, we'd love to hear your questions or feedback. If you are interested in getting more details, please don't hesitate to get in touch.

Thank you,

The Coin Metrics Team