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The Solana project and the overall cryptocurrency market had a rough week. Intensifying worries about U.S. trade policy and a fresh onslaught of liquidations sent Solana’s price into a sharp, downward trajectory, with a number of observers describing the events as a “flash crash.” Nonetheless, Solana’s ecosystem appears to have a few bright spots, as certain activities—namely, those related to DeFi and NFTs—seem to have continued apace and even intensified during the downturn. Market Overview: A Steep Decline A sharp decline in worth hit Solana, with the project’s assets dropping to as low as $204.62 at one point and even dipping the slightest into the $184 range before seemingly making a little comeback—if you could call the asset resuming its value in the $200s a “comeback.” On the whole, Solana is down around 16% from last week. Solana’s total market capitalization now lies at $99.71 billion, revealing the effect of this downturn on the network. Its total value locked, a critical measurement of DeFi activity, has tumbled to $10.45 billion. Active daily users have fallen to 5.2 million—an off-chain participation measurement that gives pause as we try to make sense of recent events with market traders and investors. Solana’s decentralized exchange trading volume has fallen flat, going down 34%. This drop in trading activity comes on the heels of a more extensive decline in the crypto sector. Increased market uncertainty and volatility have taken a toll on investor sentiment. The Week’s Key Narrative: Liquidations and Trade War Concerns Liquidations worth a staggering $2 billion hit the crypto market in the past week. Liquidation at such a scale typically has a knock-on effect and pushes prices down across various crypto assets. Solana was one of the tokens that took the biggest hit, as the price plunged in the wake of so many forced sales. Market sentiment is influenced by many things, but one of the big macroeconomic factors has been the uncertainty associated with possible trade tariffs—especially those proposed by former President Trump. However, negotiations between the United States and Mexico have been going so well that the U.S. government actually canceled a planned set of meetings in Mexico at the end of May because officials there were too busy preparing for more negotiations. So, this is a way of saying that fears of a full-scale trade war have subsided, and that’s a good thing for the overall crypto market, because it provides some stability in global trade policies. In spite of the market being so turbulent, Coinbase declared its intentions to launch futures trading on Solana. Should this event occur as planned, it could offer a jolt of fresh interest in Solana for a not-so-enthusiastic market and, particularly, may attract institutional investors to the asset through the derivatives trading that futures represent. Solana’s NFT and DeFi Sectors Show Strength The price of Solana was affected by the market downturn, but the blockchain technology behind the digital currency remained strong. Capturing 50% of total NFT user activity, Solana dwarfs its nearest competitor, Ethereum, which has only 17% of total NFT user activity. This shows that Solana is growing in the presence of digital collectibles. Why? Lower fees and faster processing speed make Solana a preferred choice of NFT traders and collectors. The DeFi sector now has 9.5% of its total DeFi TVL locked in Solana. This places it above Tron (TRX) in terms of how much capital is locked up in decentralized applications. That’s a good place to be. It suggests that confidence in Solana’s DeFi sector is on the rise, notwithstanding the ongoing bearish conditions across the crypto market. Nonetheless, not all assets fared well. Though the gold-backed stablecoin PAXG managed to achieve a slight uptick of 2.81%, the AI16Z token took a nosedive of 40.42%, signaling a clear move away from speculative assets in the broader sell-off. Platform Developments: Notable Outperformers Certain projects in the Solana ecosystem made gains, despite the overall downturn. Cropper leaped up 97.58%. Sanctum shot up even more, to 104%. These gains showed that some DeFi protocols still had very strong and very positive upward price movements. In fact, alongside decentralization, the price gains for Cropper and Sanctum still had us asking if Solana DeFi was the place to be. The MUSK token stood out as one of the best performers, soaring 135.8%. The surge happened for reasons that are not exactly clear, but the price movement certainly indicates that some of the old and new narratives surrounding the Solana ecosystem are still managing to grab traders’ attention. It is interesting to note that although Solana’s total market capitalization dropped, the trade volume on the network went up by 50%. This points to the existence of substantial trading and liquidity on the network, even in a market that has otherwise been experiencing downturns. And it raises the question of why, in the midst of a sinking market, Solana appears to be experiencing not only stability but also growth. Week in Solana: Trump Tariff Cataclysm Tanks Crypto. SOL tanks 16% to $204! $2B+ liquidated in 24h! Raydium flips Uniswap! Let`s unpack this brutal week in Solana 1/6 pic.twitter.com/SJdii8sNeE — CoinMarketCap (@CoinMarketCap) February 5, 2025 Looking Ahead This past week’s steep drop in Solana’s price highlights how delicate the crypto market still is. Investors are still not at ease with the current market situation, and that is because there are so many uncertainties going on in the larger macroeconomic picture. Yet, Solana isn’t just sitting obediently at the bottom of the bear market. It has a strong foothold in the NFT and DeFi sectors and is getting ready for the launch of Solana futures on Coinbase. These might not be unfurled in the most favorable market conditions, but unfurl they shall. As anxieties about trade policy begin to settle down, the market might obtain a more stable foundation. In the days ahead, investors will keep a close eye on Solana to see if it can hold down the fort in those key areas while managing through a tough overall crypto market. Although the network just suffered a couple of pretty big losses, one on the price front and another on the hack front, sustained development of the network plus increasing user engagement across the network and its DeFi projects indicate that Solana’s a big-time player in the crypto space. Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services. Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news ! Image Source: valedol / 123RF // Image Effects by Colorcinch
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Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of BitMaden. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.
$WEPE Can Be the Next 100x Altcoin as Tariff Wars and Senator Warren Line Up to Help Crypto
Senator Elizabeth Warren, an anti-crypto skeptic, made a sharp U-turn on her crypto views at a hearing on Wednesday. She said that she wants to work with Trump to end debanking by financial institutions. Debanking is a practice under which banks and other financial institutions cut ties with businesses that have anything to do with crypto. Interestingly, Sen. Warren is considered one of the pioneers of Operation Choke Point 2.0. This is a Biden administration toolkit where banks were pressured into severing ties with crypto businesses. For instance, as per Marc Andreessen, co-founder of Andreessen Horowitz (a venture capital firm), 30 of his clients were deboarded in the last four years . ‘My guess is we’ll find Elizabeth Warren’s fingerprints all over it.’ With Biden out of the White House, though, it seems Sen. Warren has decided to go with the flow. The crypto community wasn’t expecting this massive shift. Nevertheless, it’s certainly a massive positive for the overall crypto business landscape amidst the ongoing tariff war. The Tariff Effect on Crypto Trump’s imposition of tariffs on imports from Canada and China pushed the crypto market into a $2B liquidation . Fear loomed large on the street as Bitcoin dipped below the $92K mark. Following this, China imposed tariffs on certain US goods in a tit-for-tat move. This escalation can lead to a full-fledged global trade war, which can lead to extreme volatility and $BTC mining disruptions in the short run. Tariffs on specialized hardware important for mining can put small miners out of business in the wake of increasing costs. At the same time, a tariff war can lead to sudden dips and rises in the markets, increasing volatility. The situation can also lead to tighter regulations and compliance issues, which may hinder growth. As traditional and crypto markets face the tariff brunt, investors may look to park funds in decentralized finance (DeFi) assets to overcome regulations by resorting to peer-to-peer transactions. One of the major beneficiaries of the DeFi growth will be the best altcoins and meme coins . One such meme coin is Wall Street Pepe ($WEPE) . What Is $WEPE And Why Is It a Top Altcoin? Wall Street Pepe ($WEPE) is the best crypto presale of 2025 . A highly sought-after meme coin carrying forward the legacy of the famous frog meme, $WEPE looks to put small investors right on par with the institutional players as far as crypto profitability is concerned. For too long, the markets have been dominated by a group of whales with exclusive access to insider information. However, $WEPE looks to change this. Every $WEPE token holder will get access to real-time market updates, meme coin trading strategies, and alpha trading calls. This way, retailers like you and me will be able to make informed investment decisions. Even whales can’t stay away from $WEPE. For instance, a crypto whale bought $200K worth of $WEPE in a single transaction on 16th December. Wall Street Pepe calls its token holders the $WEPE army – a private group where investors can share knowledge, collaborate, and brainstorm new investment ideas. Folks can even share their successful trading strategies with the community and get impressive rewards in return. This means there’s enough incentive for the group to flourish as a whole. Speaking of creating and nurturing a community, $WEPE already has 43K followers on X and an active Telegram group. Your Last Chance to Buy $WEPE $WEPE has been among the most successful presales so far. It has already raised a whopping $70M, which is only behind $PEPU right now ($73M). All in all, there’s a very, very good chance that $WEPE goes on to have the highest meme coin presale raise ever. It’s also worth noting that $PEPU made a high of $0.075184, generating a massive 800% return for early investors. Seeing $WEPE’s journey so far, it could easily follow $PEPU’s path and turn out to be the next 100x meme coin . $WEPE is in the last 10 days of its presale, but the tokens may sell out well before the deadline, given that the project is nearing its funding goal. This leaves you with very little time to hop on the $WEPE journey. To buy it, head over to its official $WEPE presale page . Then, connect your crypto wallet (we recommend Best Wallet ) and make sure you have enough ETH, BNB or USDT in your wallet to fund the transaction. Next, choose the number of $WEPE you want to buy and approve the transaction from your wallet. As simple as it gets! For more info, check out our step-by-step guide on how to buy $WEPE . However, despite everything pointing one way, the crypto markets are more than capable of pulling out an Uno reverse. They can be volatile and are subject to market risks. So, it’s important to do your own research before investing your hard-earned money in crypto. Also, this article shouldn’t be considered as a substitute for financial advice. NullTx
Ethereum’s Network Activity and Institutional Demand Surge Amid Market Growth
Remarkable network activity and institutional investment have transformed Ethereum into a truly vibrant and renewable force. The surge is so pronounced that nearly all the incoming elements—from new projects to institutional investments—are creating an estimated 80–90% deflationary pressure on Ethereum. Under normal circumstances, this would be an excellent time to buy Ethereum, as the price is bound to go up with inflating demand and deflationary supply. Explosive Growth in Ethereum Transactions and Active Addresses The exponential growth of Ethereum’s scaling solutions—Arbitrum, Optimism, and Base—has been nothing short of stunning. Over the past few months, these networks’ transaction volumes have surged by more than 300%. Increased user adoption and increased protocol activity across these networks are the primary drivers of that growth. This is all super bullish for Layer 2 Ethereum solutions, and consequently—or, more accurately, synchronously—it’s bullish for the Ethereum network itself. The truth? Yes. Data from @intotheblock shows that the number of transactions on ETH; Arbitrum, Optimism and Base have been on a ridiculous uptrend, over 300% Also, active addresses on @coinbase since July 2024, has gone from 500k to a high of over 2M There is potential pic.twitter.com/QIVow06mvN — Mijosh.₿ (@Mijosh_) February 4, 2025 A notable trend is the increase in active addresses on Coinbase. Since July 2024, the number of active addresses on the exchange has surged from 500,000 to more than 2 million. This isn’t just growth for Coin base; it suggests that the Ethereum ecosystem is seeing robust user engagement. Reasons for this growth could include: improved network efficiency, the broader adoption of decentralized applications (dApps), and, last but not least, institutional investment in the Ethereum space. The most important support level for #Ethereum is between $2,238 and $2,614, where 12.18 million wallets acquired 63.07 million $ETH . pic.twitter.com/HggTaqfE4y — Ali (@ali_charts) February 5, 2025 Key Support Levels and Institutional Investment in Ethereum From an on-chain perspective, Ethereum’s most critical support level is between $2,238 and $2,614. At this price range, a total of 12.18 million wallets hold 63.07 million ETH, amounting to a strong concentration of on-chain holdings. Roughly 5.33 percent of all Ethereum that exists is concentrated in this top price support level. A dip into this range would likely be met with a wave of buying, as these holders likely see themselves as “in the money.” Thus, this price concentration provides a solid buffer against further declines for Ethereum’s price, should it reach this region, making it a sort of price floor for the asset. Ethereum’s institutional demand has been building consistent momentum. On February 4, Ethereum spot ETFs recorded a net inflow of $308 million, marking the fourth consecutive day of seeing positive inflows. The sustained interest in Ethereum ETFs seems to indicate that large financial players are increasingly valuing ETH as a valuable asset. This is not much different from the institutional adoption narrative that Bitcoin has seen play out over the last couple of years through similar vehicles. On February 4, Bitcoin spot ETF had a total net inflow of $341 million yesterday, and BlackRock ETF IBIT had an inflow of $249 million. Ethereum spot ETF had a total net inflow of $308 million, continuing its net inflow for 4 consecutive days. https://t.co/59u0BnDSW8 — Wu Blockchain (@WuBlockchain) February 5, 2025 Conclusion The network of Ethereum is expanding like never before. The number of transactions occurring on Ethereum, as well as on its Layer 2 networks, has never been higher. Meanwhile, Ethereum has been enjoying a resplendent price range of between $2,238 and $2,614. It appears that investors have long seen the Layer 1 protocol and Layer 2 solutions as being worth their salt for a long time to come. As demand from institutions continues to surge and Ethereum ETFs bring in new investment, the future of Ethereum looks promising. The network has not only continued to scale but also seems to be much closer to achieving status as a “world computer” that can handle anything thrown at it, with adoption expanding at a steady pace. Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency. Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news ! Image Source: dusanzidar/ 123RF NullTx
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