So, strap in—here’s the complete analysis of February 2025 and what it holds for the future of digital assets.
Macro & Market Updates
February opened with a major market test: U.S. CPI data came in hotter than expected. Traditionally, inflation surprises tend to send waves through equity and crypto markets, yet this time, markets barely flinched.
Key Highlights:
- Markets absorbed inflation concerns, signaling growing resilience.
- Abu Dhabi’s sovereign wealth fund officially invested in Bitcoin, a move that solidifies institutional confidence in crypto.
- The SEC and Binance settled on a 60-day lawsuit moratorium, suggesting possible settlement talks.
- Argentina President Javier Milei temporarily supported the LIBRA token, causing a price spike before the token imploded in a suspected rug pull.
Bybit Experiences $1.5 Billion Hack
What Went Wrong?
Key Takeaways:
- Bybit CEO Ben Zhou assured that the exchange is solvent and actively collaborating with law enforcement.
- The attacker’s identity and attack vector are still unknown, sparking concerns about centralized exchange security.
- Bybit assured users that no user balances were impacted, but the attack is a reminder of persistent weaknesses in the space.
- Bybit acted quickly, exhibiting world-class crisis management. Learn more about what they did here: How Bybit Handled the Largest Crypto Hack
The Liquidity Lowdown
What’s happening?
- Market depth is back to pre-FTX levels, which means confidence in crypto trading is rising.
- Altcoin spot ETFs are nearer to reality, boosting institutional interest in assets other than Bitcoin and Ethereum.
- Liquidity vs. Market Cap Rankings:
– BTC, ETH, SOL, and XRP are very liquid.
– Tokens such as LEO, WBTC, and HYPE are high market cap ranked but lack liquidity.
Why does this matter?
Most traders continue to use market cap as an indicator of strength for a token, but liquidity paints a very different picture. Some of the biggest market cap tokens just don’t have sufficient liquidity to support their valuation, and so there is extreme price volatility when big trades are made.
AAVE Expands DeFi Lending Services
AAVE, a leading DeFi lending platform, is rolling out new lending and borrowing services, reinforcing its status as one of the most influential DeFi protocols.
What’s New?
- Users can borrow and lend more cryptocurrencies with enhanced risk management tools.
- AAVE is expanding its institutional offerings, drawing in hedge funds and traditional finance players.
- The expansion solidifies DeFi’s growing role as an alternative to traditional banking.
Trading & Market Maker Activity
Market Making & Liquidity Dynamics
- Bid-Ask Spreads & Volume Trends:- XRP, PEPE, and LINK experienced higher-than-normal spreads, which implies that liquidity remains fragmented.- Exchange tokens such as BGB (Bitget) and GT (Gate.io) fared better since they are still drawing in market maker activity.
- Why this is important:- Higher trading activity draws in more market makers who offer liquidity, which is a self-reinforcing cycle.- BTC remains the volume leader, but SOL and XRP are closing the gap.
Robinhood’s Big Crypto Bet: Expansion in the Trump Era
What’s Happening?
- Robinhood is going to increase tokenization and stablecoin offerings, potentially making crypto more mainstream for retail investors.
- The company is navigating a regulatory shift, targeting responsible but fast growth.
- Market commentators believe that Robinhood’s move may further legitimize crypto trading for retail investors community,positioning it as a formidable competitor to exchanges like Coinbase.
The Regulatory Countdown
XRP ETF Approval Window Begins
What does it signify?
- The SEC has initiated a 240 days review period to approve or reject an XRP ETF that will conclude in October 2025.
- A decision could cause huge volatility, just like we experienced when the ETH ETF was approved in May 2024.
- If approved, it would open the door to a new era of institutional investment in XRP.
South Korea’s Institutional Trading Green Light
- South Korea will allow institutional traders—like non-profits, universities, and professional investors—to trade crypto in 2025.
- This is a dramatic shift, as the country’s retail-only system has long meant that the infamous Kimchi Premium (where BTC is more expensive in Korea than anywhere else globally) has ensued.
SEC to Dismiss Coinbase Lawsuit
Why This Matters:
- Regulatory Shift? The SEC under the new government appears to be reversing its tough stance towards crypto.
- Implications for Other Exchanges: If the Coinbase case is dismissed, other exchanges like Binance and Kraken may feel similar relief.
- Crypto Market Response: The ruling would trigger a wave of optimism, potentially leading to a rally in regulation-sensitive tokens.
What’s Next?
While the dismissal of the lawsuit is good news, the SEC’s overall crypto regulation plan is still unclear.
Standard Chartered Supports HKD Stablecoin
Why This Matters:
- The initiative would enhance cross-border crypto payments between China and other markets.
- Traditional bank-backed stablecoins would introduce more institutional confidence into the digital asset ecosystem.
- This is a follow-up on an increasing trend of regulated stablecoins, with traditional financial powerhouses entering the space.
Crypto Scandals: The LIBRA Token Crash
No month in crypto goes by without a little high-drama market intrigue, and this month it was courtesy of Argentina President Javier Milei.
- February 14th saw Milei shill for LIBRA token, pushing it through the roof—only for it to immediately crash 80%.
- Reports broke that 82% of the supply of LIBRA was owned by a group of wallets, stoking fears of price manipulation.
- Insiders were reportedly drained of $107M in USDC and SOL prior to the crash.
- Milei then deleted his posts but the damage was done. Lawyers in Argentina have now accused him of fraud and market manipulation.
Does this sound familiar? This is following the same script as the TRUMP and MELANIA token launches. Interestingly, while both Libra and MELANIA peaked within hours of launching, the TRUMP token reached its all-time high a day after its release and has technically remained up since then.
Blockchain & NFT Ecosystem Trends
Ethereum’s Transaction Volume Reaches Multi-Year Low
- The 7-day moving average of ETH fees declined 70% week-over-week, reaching a four-year low.
- Median gas prices also reached their lowest since July 2020.
- Lower fees may increase adoption, but the precipitous decline indicates weak demand instead of network efficiency.
Opensea’s Market Share Blows Up
- The listing of Opensea’s $SEA token drove its Ethereum NFT market share up from 25.5% to 71.5% in only four weeks.
- Daily average NFT trading volume increased from $3.47M to $17.4M after the announcement.
This may re-ignite the NFT marketplace war, with Opensea taking back lost ground from rivals such as Blur.
Immutable X Powers Up NFT Gaming
Immutable X, a leading Ethereum Layer 2 solution, has launched zero-gas NFT transactions and instant minting, simplifying it for gaming platforms to scale.
Why This Matters:
- The platform has gained partnerships with top gaming studios, driving the growth of NFT-based games.
- By removing gas charges, Immutable X reduces barriers to entry for players and creators.
- With NFT gaming remaining a red-hot industry, this step may redefine in-game economies.
Futures & Derivatives
BTC & ETH Futures Volume Plunged Drastically
- BTC futures trading volume decreased 42%, whereas ETH futures traded down 55% from last week.
- BTC remained stable at $96,500, while ETH recorded a modest 2.2% increase this month.
This cooldown is after one of the biggest liquidation events ever, which was caused by Trump’s tariff pronouncements on Mexico and Canada.
Qubetics Disrupts Blockchain Interoperability
Qubetics is innovating with a new blockchain interoperability platform, set to consolidate fractured networks and provide seamless cross-chain transactions.
Key Highlights:
- The project presold $13.6 million, selling more than 484 million tokens.
- The objective? Interconnecting isolated blockchain worlds, resolving one of the industry’s most pressing issues.
- This could push mass adoption into high gear, enabling easy asset transfers between chains.
Current Market Rundown
Bitcoin’s Performance and Market Sentiment
On February 28 (while writing), Bitcoin was trading at $79,327.00, down 8.15% from the last close. The fall has moved the Crypto Fear & Greed Index into the “Extreme Fear” zone, falling to 16.
Major Drivers of Sentiment
Looking Ahead
While near-term sentiment looks bearish, market giants such as ARK Investment’s Cathie Wood continue to remain positive, perceiving Bitcoin’s recent consolidation as the building blocks of future success.
With the market currently facing volatile waters, participants must balance careful optimism with smart caution.
Final Thoughts: What’s Next?
February has taught us that crypto is at crossroads:
- Liquidity is recovering, but altcoins still struggle with stability.
- Regulatory decisions loom large, and XRP’s ETF could be a market game-changer.
- Political interference in crypto is growing, with figures like Milei and Trump influencing token speculation.
As we head into March, the million-dollar question is: Are we headed towards a new era of regulatory and institutional transparency, or are we just in the eye of the storm before the next one comes along?
P.S – 𝗧𝗵𝗶𝘀 𝗰𝗼𝗻𝘁𝗲𝗻𝘁 𝗶𝘀 𝗳𝗼𝗿 𝗶𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗽𝘂𝗿𝗽𝗼𝘀𝗲𝘀 𝗼𝗻𝗹𝘆 𝗮𝗻𝗱 𝗻𝗼𝘁 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗮𝗱𝘃𝗶𝗰𝗲. 𝗔𝗹𝘄𝗮𝘆𝘀 𝗗𝗬𝗢𝗥 𝗯𝗲𝗳𝗼𝗿𝗲 𝗺𝗮𝗸𝗶𝗻𝗴 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗱𝗲𝗰𝗶𝘀𝗶𝗼𝗻𝘀.
