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- Crypto Saving Expert Newsletter - Issue 132
Crypto Saving Expert Newsletter - Issue 132
Good afternoon! Bitcoin kicked off the new month with a rollercoaster ride, dipping towards $90,000 before making a strong recovery. Volatility remains high, but the bulls aren't backing down just yet! Let’s take a deep dive into what’s happening behind the scenes with bitcoin and the broader Web3 market. 👇
This week's issue will feature technical analysis of bitcoin, Stonksy, Ethereum and Solana, as well as important dates, key news stories and projects to keep an eye on.
Table of Contents
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Top Projects To Keep an Eye On From Flow Bali:
weRate: is the leading recommendation platform in web3, powered by AI and Solana and fueled by the $RATE token.
Website: werate.io
Thanks to CSE you get early access to the Beta mobile app, which gives you an allocation of the $RATE airdrop!
Download the app via the link below, enter the code CSE2025, and start checking in and reviewing businesses!
Every checkin and review will earn you points on the leaderboard. The higher on the leaderboard, the more tokens you will get!
Android: https://cme.sh/werateandroid
You are very early, so if you actively participate you will be rewarded!
In the future even platform profits will be shared with the community! Let's revolutionise reviews together!
FOMO Magazine: Web3 Media Agency
Website: fomo.media
FOMO produces top tier content and owns the No1 physical & digital magazine on Solana. Transform Ideas into reality.
Solana Cooking: Your hub to explore, discover, and experience Solana Products.
Website: solana.cooking
Experience Solana product with clickable interactive demo, removing the process of visiting the app, connect wallet, sign in, or funds deposit.
stories.fun: a SocialFi platform that forms genuine connections based on tokenised true stories/journeys of individuals
Website & Social Link – www.x.com/storiesdotfun
Where authentic stories are tokenised, empowering creators to monetise their journeys and communities to invest in meaningful connections
Catoff Gaming: Catoff is a P2P IRL Challenge & in-Game Wagering dApp
Catoff uses AI agents to give predictive betting odds and AI computer vision to detect fitness activities.
Edubuk: Web3-Powered Global Credential Verification & AI-Driven Job Matching Platform
Website: edubukeseal.com
Twitter: x.com/edubuktrust
Edubuk is revolutionizing credentials verification with blockchain & AI, ensuring tamper-proof, verifiable CVs & certificates on-chain. It leverages multi-chain Web3 infrastructure and Generative AI-driven job matching platform, bringing 1 million+ users from Web2 to Web3.
𝗖𝗿𝗼𝘄𝗱𝗽𝘂𝗻𝗸: Is a synthetic AI influencer you can own through a legally compliant DAO and the $CROWDP token.
Website: crowdpunk.love
Crowdpunk’s $𝗖𝗥𝗢𝗪𝗗𝗣 𝗱𝗿𝗼𝗽 𝘃𝗶𝗿𝗮𝗹 𝗰𝗮𝗺𝗽𝗮𝗶𝗴𝗻 is currently live for a closed alpha group.
𝗦𝗲𝗰𝗿𝗲𝘁 𝗖𝗼𝗱𝗲 valid for 24h for your Newsletter readers to get a 5 $CROWDP special drop is: 𝗦𝗮𝘃𝗶𝗻𝗴𝗘𝘅𝗽𝗲𝗿𝘁
Useless or clone projects and a lack of users are two key challenges facing the space.
Crowdpunk, a relatable AI influencer, creates value for her followers through deep analysis and ratings across Web3—filtering out junk so users can celebrate the gems and gain a market edge through knowledge.
NetSepio: DePIN-Powered Private, Secure & Agentic Internet
Website: netsepio.com
NetSepio delivers private, secure, and censorship-free internet with an AI coordination layer for secure data and inference, shaping an agentic future.
VORLD: An indie game studio building intellectual properties powered by games, comics, and collectables.
Website: thevorld.com
Twitter: https://x.com/thevorld_
At VORLD, our goal is to create one of the most significant intellectual properties of this generation. Rooted in strong IP, VORLD blends storytelling with gameplay to build a dynamic, community-driven ecosystem fueled by our games and comics. We aim to establish a strong presence in consumer markets while fostering a thriving creator economy.
Vaquita: Empowering communities to save without relying upon traditional institutions.
Website: vaquita.fi
Based on a traditional system of savings rounds popular in Latin America and other parts of the world.
Grey Labs: Beyond the Pixel with Quantum Vaults NFTs (qNFT)
The first ever quantum resistant assets with vaults and hybryd swap protocols to SPL Tokens, providing liquidity to illiquid assets. Incorporating rewards system through generating LSTs (Liquid Stake Tokens) to back up the SPL Tokens and create a thriving ecosystem for Artists and Web3 Games. Incentivising trading through a cashback mechanism and long term holder through staking rewards. Soon on a wallet near you !
Besides the security, it just makes sense!
Nomadz: Community-driven platform for travellers.
Social link : x.com/Nomadz_co
Anyone who wants to travel should do it through Nomadz, with its whole gamified approach and a "strava-like" social aspect
Bitcoin Wobbles But Holds Firm
Bitcoin had another tumultuous start to a new month as it dropped down towards $90,000 before recovering strongly.
Bitcoin
Bitcoin dropped down to its range low during the capitulation event.
As seen on the chart, the daily candle on Monday formed a long lower wick as the move was reversed throughout the day.
Still, bitcoin remains within the range and while the lows holding is good for the market, it must break through $106,000 to provide an uptick to altcoins.
Stonksy
Stonksy caught the drop on bitcoin perfectly, with the price quickly cascading down following the red background.
Stonksy also caught the drop on ETH, SOL, and the rest of the large caps, providing users with the trigger to capture gains in the market meltdown.
Sign up for a Stonksy plan today and begin benefiting from the indicator’s performance: https://www.stonksy.io/signup
Ethereum
Ethereum had the worst drop out of large caps, plummeting 26% on Monday.
It dropped all the way down to the summer lows, creating one of the biggest lower wicks in its history.
However, ETH managed to close above the previous range, which is now being tested again.
The direction for ETH is clear from here, with the range, no man’s land and upside easily identifiable on the chart.
Solana
Solana also came into a key zone. It retested the support zone it formed in late December into early January right before the run to all-time highs occurred.
Like Ethereum, Solana has a clear range for it to trade within while also having the upside level to gain for higher prices to come to fruition.
Fear & Greed Index
The Fear and Greed Index remains within Greed at 71 after a chaotic start to February.
After a blanket of fear covered the market, investor sentiment was covered as bitcoin bounced.
Important Dates
Wednesday 5 February, 13:15 UTC - ADP Employment Change
Automatic Data Processing Inc. (ADP) releases employment change for the US. A higher figure is bullish for the markets due to Solana’s increased employment, which suggests economic strength.
The consensus is set at 150,000, with the previous data coming in at 122,000. Therefore, the ADP expects a slight rise in employment.
Wednesday 5 February, 15:00 UTC - ISM Services PMI
The Institute for Supply Management (ISM) releases this data, with it providing a measure of the US non-manufacturing sector. It is considered positive if the figure is above the 50 mark.
The consensus is set at 54.2, with the previous data at 54.1.
Friday 7 February, 13:30 UTC - Nonfarm Payrolls (NFP)
The US Bureau of Labour Statistics releases the NFP. This form of data represents the number of new jobs created in the previous month, which will be December and is another signal of economic health.
The consensus is set at 170,000, with the previous data at 256,000.
Gainers
Losers
What is Going On? Record Liquidations Amid Trump Tariffs
The cryptocurrency market faced a major meltdown on 3 February, triggered by U.S. President Donald Trump’s newly announced tariffs on imports from China, Canada, and Mexico. The unexpected move sent shockwaves through global markets, leading to a massive sell-off in crypto and a record-breaking $2.24bn in liquidations in just 24 hours.
The tariff announcement sparked a sudden and violent downturn in the crypto market, with Ether (ETH) and major altcoins plunging over 20% in an hour.
Ethereum (ETH) crashed 16% to a low of $2,368, before slightly recovering to $2,521. However, ETH remains 38% below its 2024 high of $4,078 reached in December.
Avalanche (AVAX), XRP, Chainlink (LINK), Dogecoin (DOGE), and Cardano (ADA) suffered similar declines, contributing to a total 11.4% drop in the crypto market cap, which now stands at $3.17tn.
Bitcoin (BTC) also fell 6.8%, dipping to $94,743, although it has held up better than altcoins. As a result, Bitcoin dominance surged from 61.1% to 64%, as traders rotated out of riskier assets.
$2.24bn in Crypto Liquidations
Amid the chaos, a staggering $2.24bn worth of leveraged positions were liquidated across major crypto exchanges, affecting over 730,000 traders.
Ethereum (ETH) led liquidations, with $609.9m wiped out in long and short positions.
According to CoinGlass, the biggest single liquidation order was recorded on Binance, where a $25.6m ETH/BTC trade was forced closed.
Long traders suffered the most, losing $1.88bn, or 84% of total liquidations, highlighting the market’s overconfidence in a continued bull run.
Which exchanges were hit hardest?
● Binance facilitated 36.8% of all liquidations, owing to its massive user base.
● OKX, Bybit, Gate.io, and HTX were among the most affected platforms.
Why Did This Market Crash Happen?
Experts say the market underestimated the potential impact of Trump’s tariffs. While investors were aware of the risk, many had been distracted by recent DeepSeek developments, according to Markus Thielen, founder of 10x Research.
“The sharp drop in altcoins reflects a wave of stop-loss triggers combined with a buyer’s strike from retail investors.” – Markus Thielen, 10x Research
Crypto market sentiment has turned fearful, as shown by the Crypto Fear & Greed Index, which dropped 16 points into the ‘Fear’ zone, hitting a low of 44—a level not seen since October 2023.
The panic extended to traditional financial markets, where:
● Nasdaq 100 futures dropped 2.7%
● S&P 500 futures fell 2%
● Dow Jones Industrial Average futures declined 1.5%
This suggests that investors are reacting to broader economic uncertainty, not just crypto-specific factors.
Bigger Than COVID and FTX?
According to Theya’s Bitcoin head of growth, Joe Consorti, the $2.24bn liquidation event is larger than liquidations during the COVID-19 pandemic and the FTX collapse.
While some traders see “extreme fear” as a buying opportunity, Thielen warns that the market could face prolonged uncertainty rather than a one-day shock. The next major test for crypto will be how US equities perform in the coming days.
What’s Next?
With crypto sentiment rattled and geopolitical uncertainty rising, the market’s next move will depend on:
● Whether Trump escalates trade tensions further
● The performance of US stocks and Bitcoin dominance
● Whether investors regain confidence or continue risk-off rotations
For now, traders should brace for more volatility as the crypto market digests the implications of Trump’s latest economic policies.
21Shares has filed with the SEC to launch a Polkadot (DOT) spot ETF on Cboe BZX. Will investors embrace this new crypto ETF?
Asset management firm 21Shares has filed with the US Securities and Exchange Commission (SEC) to launch a spot Polkadot (DOT) exchange-traded fund (ETF).
According to a 31 January SEC filing, the 21Shares Polkadot Trust aims to be listed on the Cboe BZX exchange, with Coinbase acting as the custodian for DOT holdings.
This move follows 21Shares’ successful launch of the world’s first Polkadot ETP on the Swiss SIX exchange in February 2021.
First US Spot Polkadot ETF – 21Shares has submitted an SEC filing to list its Polkadot Trust on Cboe BZX.
● Coinbase as Custodian – The leading crypto exchange will hold the ETF’s Polkadot (DOT) reserves.
● Polkadot’s Market Struggles – DOT’s price is down roughly 5% in the past year and 10% in the last month.
● No Guarantee of Performance – The ETF filing warns of uncertain price stability for DOT in the short and long term.
● Potential Regulatory Risks – The SEC may classify DOT as a security, affecting its regulatory status.
Market Uncertainty: Will a Polkadot ETF Gain Traction?
Polkadot, currently the 18th largest cryptocurrency by market cap, has seen lacklustre price performance over the past year.
Despite this, Bloomberg ETF analyst James Seyffart believes the market will ultimately determine if a Polkadot ETF has value.
“The market will decide where value lies and if there’s demand for a Polkadot ETF. If no one puts money into it, it will close.” – James Seyffart, Bloomberg ETF Analyst.
The SEC filing cautions that DOT’s price could face downward pressure, warning:
“There is no assurance that DOT will maintain its value in the long or intermediate term.”
Polkadot Security Concerns Addressed
One key risk outlined in the ETF filing is the possibility of Polkadot being classified as a security under US law.
However, the Web3 Foundation, which oversees the Polkadot protocol, has argued against this classification.
● In February 2023, the foundation stated that it had taken steps to:
● Limit individual ownership concentration to prevent centralisation.
● Turn down venture capital investments from firms focused solely on speculation.
● Prioritize the development of Polkadot’s technology over the DOT token itself.
These measures aim to separate Polkadot’s governance and functionality from traditional security definitions.
Crypto ETF Filings Surge After Gensler’s Resignation
The 21Shares Polkadot ETF filing follows the resignation of SEC Chair Gary Gensler on 20 January, the chairperson famed for his hard-line, regulation-through-enforcement approach to crypto.
Since Gensler’s departure, there has been a wave of new crypto ETF filings, including:
● Memecoin ETFs – Osprey Funds and REX Shares have applied for ETFs tracking Dogecoin (DOGE), Official Trump (TRUMP), and Bonk (BONK).
● Dual Crypto ETFs – The SEC has given initial approval to Bitwise’s bitcoin and Ethereum ETF, which would track BTC and ETH in a single fund.
As regulatory sentiment shifts, more crypto-based ETFs could enter the market, further expanding investment opportunities.
The SEC will now review the application, but approval remains uncertain given the current regulatory climate.
Key questions moving forward:
● Will the SEC classify DOT as a security?
● Is there enough market demand for a Polkadot ETF?
How will DOT’s price volatility impact investor interest?
If approved, the 21Shares Polkadot Trust would provide US investors with an easier way to gain exposure to DOT without directly holding the asset.
Stablecoins Surpass Visa and Mastercard in 2024 Transfer Volume: A Crypto Roundup
Stablecoins processed $27.6tn in 2024, exceeding Visa and Mastercard’s combined volume. Discover the key drivers behind this surge.
Stablecoins dominated the global cryptocurrency market in 2024, surpassing traditional payment giants Visa and Mastercard in total transfer volume.
According to a 31 January report by CEX.io, stablecoin transfer volume reached a staggering $27.6 trillion last year, outpacing Visa and Mastercard’s combined volume by 7.7%.
This surge was fueled by rising bot activity, increased adoption for remittances and savings, and the continued dominance of Tether’s USDT.
Key Highlights From the 2024 Stablecoin Report
● $27.6tn in Transfers – Stablecoins surpassed Visa and Mastercard’s combined transaction volume.
● Tether Dominance – USDT accounted for 79.7% of stablecoin trading volume.
● Market Share Decline – Despite record transfer volumes, stablecoins lost 13.5% market cap share due to broader crypto market trends.
● Bot Activity Boom – Automated trading bots contributed to 70% of stablecoin transfers, reaching 98% on Solana and Base.
● Ethereum and Tron Lead – The two blockchains held 83% of the stablecoin market, though Solana, Arbitrum, and Base gained ground.
Stablecoins Beat Visa and Mastercard but Lose Market Share
Despite beating Visa and Mastercard in transaction volume, stablecoins lost 13.5% of their total market cap share in 2024.
This decline mainly occurred in Q3 2024, amid a broader crypto market slowdown. However, stablecoin supply still grew 59%, now accounting for 1% of the U.S. dollar supply.
“Stablecoins saw explosive growth following the post-election crypto rally, surpassing Visa and Mastercard in Q4 alone by two and three times, respectively,” said Illia Otychenko, lead analyst at CEX.io.
The growing use of stablecoins for remittances and savings also contributed to the surge, as users sought a cost-efficient alternative to traditional payment networks.
However, DeFi trading and crypto arbitrage remain the primary use cases for stablecoins today.
Bot Activity Drove 70% of Stablecoin Transactions
One of the most significant contributors to stablecoin transfer volume in 2024 was automated bot trading, which accounted for 70% of transactions.
On networks like Solana and Base, bot-driven activity made up 98% of stablecoin volume.
“High bot activity doesn’t necessarily indicate worse transfer volume,” Otychenko noted.
“Bots are often used for arbitrage, market efficiency, and gas fee coverage.”
While bots enhance liquidity, they can also be used for predatory trading practices like:
● Frontrunning
● Pump-and-dump schemes
● Liquidity pool sniping
● Sandwich attacks
Despite these risks, the rise of trading bots reflects the maturation of blockchain networks, Otychenko added.
Ethereum and Tron Still Dominate, but New Players Emerge
Ethereum and Tron continued to dominate stablecoin transactions, holding 83% of the market by the end of 2024.
However, their combined share fell from 90%, signalling increasing competition from networks like:
● Solana
● Arbitrum
● Base
● Aptos
Tron, in particular, saw a sharp decline in market share, dropping from 38% to 29%.
Meanwhile, Ethereum’s stablecoin market cap surged 65%, hitting an all-time high, driven by:
● Lower transaction fees from Ethereum’s Dencun upgrade (March 2024).
● Post-election crypto optimism in the United States.
The Future of Stablecoins in 2025
With stablecoins now processing trillions in transactions, their role in the global financial system is undeniable.
However, key questions remain:
● Will regulatory clarity support further adoption?
● Can new blockchain networks challenge Ethereum and Tron’s dominance?
● Will bot-driven transactions become a long-term risk for stablecoin markets?
As stablecoins continue to evolve, 2025 could see even greater integration with traditional finance—and perhaps another record-breaking year for transfer volumes.
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