Main Takeaways
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This blog explores key Web3 developments in January 2025 to provide an overview of the ecosystem’s current state. We analyze the performance of crypto, DeFi, and NFT markets before previewing major events to look out for in February.
Crypto Market Performance in January 2025
The cryptocurrency market surged to $3.76T on January 7, rebounding from December’s slump after the Federal Reserve signaled only two rate cuts for the year. The recovery was fueled by President Trump’s executive orders, including one creating a working group to explore the potential for establishing a national crypto reserve and a regulatory framework for digital assets, while banning a U.S. Central Bank Digital Currency (CBDC). The president’s son, Eric Trump, further proposed eliminating capital gains taxes on U.S.-issued cryptocurrencies.
However, momentum faltered in late January when the emergence of DeepSeek’s low-cost AI model raised concerns about U.S. tech overvaluations, triggering a sharp market sell-off. By early February, volatility intensified amid fears of new U.S. tariff policies, weighing on risk assets, including crypto.
Monthly crypto market capitalization increased by 4.3% in January
Source: CoinGeckoAs of January 31, 2025
Monthly price performance of the top 10 coins by market capitalization
Source: CoinMarketCapAs of January 31, 2025
January had notable winners and losers in the cryptocurrency market, with XRP leading the gains as it surged 47.8% due to the explosive growth of its native DEX, which surpassed $400M in monthly swap volume. While short-term holders engaged in profit-taking, long-term investors continued accumulating, signaling confidence in future valuation. Solana (SOL) also posted a strong 24.7% rise, driven by a surge in speculative activity around newly launched memecoins. The influx of liquidity significantly boosted DEX trading and cemented Solana’s role as a key player in DeFi.
Bitcoin (BTC) climbed 11.7%, bolstered by Trump’s pro-crypto policies and speculation over its potential inclusion in the Czech National Bank’s reserves. Other notable gainers included Chainlink (LINK) (+9.6%), boosted by adoption of its Scale and Build initiatives, while Cardano (ADA) (+7.2%) and Dogecoin (DOGE) (+2.2%) benefited from a broader bullish sentiment around crypto regulation.
On the losing end, Ether (ETH) declined 8.2%, struggling under the weight of rising competition from Solana’s and the memecoin-driven boom in decentralized exchanges. Avalanche (AVAX) fell 9.3% as short-selling pressure overwhelmed long positions, creating a bearish outlook. BNB and Tron (TRX) also posted declines of 3.57% and 6.26%, respectively, as liquidity shifted towards higher-risk speculative assets, particularly within the Solana ecosystem. The trend reflects an ongoing reallocation of capital away from traditionally dominant platforms toward emerging high-growth ecosystems, particularly in sectors benefiting from low fees, high throughput, and memecoin mania.
Decentralized Finance (DeFi)
In January 2025, total value locked (TVL) in DeFi saw a modest 0.4% increase, but regulatory developments took center stage as the U.S. Treasury finalized rules expanding reporting requirements to certain DeFi platforms. Platforms providing trading front-end services are now classified as brokers if they can determine transaction details, with custodial brokers required to report by 2025 and DeFi providers given until 2027.
Meanwhile, the stablecoin market cap grew 6% to $217B, suggesting a shift toward lower-risk assets amid macroeconomic uncertainty, intensified by DeepSeek AI’s disruptive efficiency gains. Solana’s TVL surged 35% to a record $12.1B, largely driven by the launch of $TRUMP and $MELANIA memecoins, which triggered a 320% spike in weekly DEX volume. Jito, Raydium, and Kamino saw significant gains, with Jito’s validator adoption reaching 93%. Since the $TRUMP token’s debut, Solana has processed over $11B in trading volume, 300M daily transactions, and exceeded 4M active addresses, underscoring its growing dominance in DeFi.
TVL share of top blockchains
Non-Fungible Tokens (NFTs)
Monthly NFT trading volume
Source: CryptoSlam As of January 31, 2025
In January, the NFT market experienced a significant downturn, with total sales volume declining across the top 10 chains except for Base, which surged 344.8%. Monthly NFT transactions fell to 5.1 million – the lowest since March 2021. Reflecting market struggles, the art-focused NFT marketplace MakersPlace shut down on January 15 after six years in operation. Ethereum NFT sales dropped 39.1%, with Bored Ape Yacht Club (-18.5%) and Cryptopunks (-8.4%) seeing declines, while newer projects like Courtyard surged 53%. Bitcoin NFT volume declined 39.2%, with Quantum Cats and Bitcoin Puppets plummeting 65.3% and 29.7%, respectively. Other chains also saw sharp declines: Solana (-26.6%), Polygon (-70.6%), and BNB Chain (-84.5%), indicating a broad market retreat despite isolated growth in emerging NFT sectors.
Upcoming Events and Token Unlocks
To help users stay updated on the latest Web3 news, the Binance Research team has summarized notable events and token unlocks for the month to come. Keep an eye on these upcoming developments in the blockchain space.
Notable Events in February 2025
Source: Itez, Binance Research
Largest token unlocks in US$ terms
Source: CryptoRank, Binance Research
Binance Research
The Binance Research team is committed to delivering objective, independent, and comprehensive analyses of the crypto space. We publish insightful takes on Web3 topics, including but not limited to the crypto ecosystem, blockchain applications, and the latest market developments.
This article is only a snapshot of the full report, which contains further analyses of the most important charts from the past month. The full report also dives into explaining the surge in crypto ETF filings, the steep growth rate of new token creation, how Solana DEX solidly outperforms Ethereum’s, and the continuing trend of AI application in the crypto sector.
Read the full version of this Binance Research report here.
Further Reading
Disclaimer: This material is prepared by Binance Research and is not intended to be relied upon as a forecast or investment advice and is not a recommendation, offer, or solicitation to buy or sell any securities or cryptocurrencies or to adopt any investment strategy. The use of terminology and the views expressed are intended to promote understanding and the responsible development of the sector and should not be interpreted as definitive legal views or those of Binance. The opinions expressed are as of the date shown above and are the opinions of the writer; they may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and non-proprietary sources deemed by Binance Research to be reliable, are not necessarily all-inclusive, and are not guaranteed as to accuracy. As such, no warranty of accuracy or reliability is given, and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by Binance. This material may contain ‘forward-looking’ information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the reader. This material is intended for information purposes only and does not constitute investment advice or an offer or solicitation to purchase or sell in any securities, cryptocurrencies, or any investment strategy, nor shall any securities or cryptocurrency be offered or sold to any person in any jurisdiction in which an offer, solicitation, purchase, or sale would be unlawful under the laws of such jurisdiction. Investment involves risks.
