Phantom, a popular non-custodial crypto wallet, has dismissed rumors of an upcoming token airdrop linked to its new social discovery feature. The company clarified that there are no plans for a token launch despite speculation. The social discovery feature, announced in December, will let users create profiles, add friends, and choose privacy settings.

Phantom is also set to integrate the Sui blockchain by early 2025, expanding its support beyond Bitcoin, Ethereum, and Solana. Despite recent challenges, including an emergency update for iPhone users, Phantom remains a leading wallet with 7 million monthly active users.

**Crypto News Flash**

- **Solana ETF Odds Soar:** VanEck's Matthew Sigel is bullish on a Solana ETF listing in the US by 2025, surpassing Polymarket's 77% odds. Sigel sees this as part of a broader trend towards more crypto ETFs in the US.

- **Do Kwon Pleads Not Guilty:** Terraform Labs' co-founder Do Kwon faced a US judge, pleading not guilty to multiple fraud charges. A status conference is set for January 8, 2025.

- **AI Tokens vs. Memecoins:** Dragonfly Capital's Haseeb Qureshi predicts AI agent tokens will continue to outshine memecoins in 2025, though their appeal may wane by 2026.

- **China's Crypto Crackdown:** New forex rules in China demand banks to monitor risky crypto trades, signaling tighter regulations.

- **IRS Crypto Relief:** The IRS offers temporary relief on crypto cost-basis methods, allowing investors to avoid the default FIFO method, which could have increased tax burdens.

Elon Musk is stirring debate with plans to tweak the X social media algorithm, aiming to highlight educational content over negativity. Musk claims the shift is to boost "un-regretted user-seconds," but users argue it borders on censorship, questioning who decides what's negative. This move follows a spat over H-1B visas, where Musk's call for immigration reform sparked backlash from right-wing influencers. They claim Musk retaliated by cutting their premium features. Ethereum's Vitalik Buterin urged Musk to uphold free speech, warning against silencing dissenting voices.

Bitcoin had a blockbuster 2024, settling over $19 trillion in transactions, more than doubling from 2023's $8.7 trillion. This surge marks a rebound from two years of declining volumes since the 2021 bull market peak of $47 trillion. Key events like the launch of a Bitcoin ETF in the U.S., the April halving, and a new all-time high price of around $108,000 fueled this growth.

Meanwhile, Bitcoin's hashrate hit a record 1,000 exahashes per second in early 2025, though it later settled at 775 EH/s. U.S. mining pools, like Foundry USA and MARA Pool, dominated with over 38.5% of blocks mined in 2024, yet China-based pools still hold a majority. The decentralized nature of mining makes pinpointing exact hashrate dominance challenging.

Crypto traders are increasingly targeted in kidnappings and extortion schemes as the crypto market booms. Recent incidents highlight this alarming trend:

- In France, police rescued a man from a car trunk after his kidnappers demanded a ransom from his son, a crypto influencer. The investigation continues.

- In Pakistan, a crypto trader was abducted and forced to transfer $340,000 via Binance. Seven suspects, including a Counter-Terrorism officer, were arrested.

- In Australia, a Saudi royal was kidnapped in a Bitcoin extortion plot. The perpetrator received a community corrections order.

- In Canada, WonderFi CEO Dean Skurka was released after a $1 million ransom was paid.

Ransomware payments in 2023 exceeded $1.1 billion, underscoring the growing threat in the crypto space.

Bitcoin kicked off 2025 with a bang, holding steady at $97,000 as Wall Street's first trading week saw it reclaim a crucial support level. Despite a 6% year-to-date gain, traders remain cautious, eyeing key levels like $99,000 for bullish confirmation. Some predict a dip to $90,000 if resistance isn't flipped.

In a twist, U.S. Bitcoin ETFs saw a $900 million inflow on January 3, reversing recent outflows. Fidelity's Bitcoin Fund led with $357 million. The Coinbase Premium Index also bounced back, hinting at stronger U.S. buyer influence. As always, investors should do their own research before diving in.

Bitcoin analysts are predicting a recovery rally despite recent holiday-driven market illiquidity. Currently, Bitcoin is down over 10% from its all-time high of $108,300 on Dec. 17, trading below $100,000 since Dec. 19. Bitfinex analysts foresee Bitcoin ranging between $95,000 and $110,000 by the end of January. The upcoming inauguration of US President-elect Donald Trump on Jan. 20 could influence crypto prices, with expectations for more crypto-friendly regulations. However, analysts caution that significant price increases may require more trading volume post-holiday season. Looking ahead to 2025, predictions suggest Bitcoin could reach $160,000 to $200,000.

**Crypto Market Buzz: Insider Trading Concerns in Memecoin Surge**

- A recent investigation reveals that 15 blockchain wallets have turned a modest $14,600 investment into over $20 million by trading FOCAI, a memecoin on Solana's Pump.fun platform.

- These wallets, suspected of insider trading, controlled over 60% of FOCAI's supply, raising alarms about market fairness and decentralization.

- One wallet, "9DtTb," notably made $3.47 million in just three hours, showcasing the potential for massive gains.

- Despite these successes, over 99% of traders on Pump.fun remain unprofitable, highlighting the risky nature of memecoin investments.

**Aave Proposal Sparks Debate Over USDe Price Peg**

A new proposal on Aave suggests pegging Ethena’s USDe stablecoin to Tether’s USDt to shield users from market volatility. Co-authored by Chaos Labs and LlamaRisk, the proposal aims to align USDe’s value with USDt, ensuring stability in Aave’s pricing feeds. However, the idea has faced skepticism from the Aave community, with concerns about potential risks and the proposal's effectiveness. The discussion is ongoing, with no vote scheduled yet. Meanwhile, Aave continues to expand, eyeing new integrations in 2025, while Ethena plans to launch a savings product and integrate with Telegram.

Solana developers have unveiled a new quantum-resistant vault, the "Solana Winternitz Vault," designed to protect user funds from potential quantum computer threats. This vault uses a hash-based signature system, generating new keys for each transaction to thwart attacks on public keys. However, it's an optional feature, so users must opt in to secure their assets. While Ethereum also plans to implement quantum-resistant solutions, co-founder Vitalik Buterin believes quantum computers won't pose a significant threat for at least a decade.

MicroStrategy, the top corporate Bitcoin holder, is planning to raise $2 billion through a perpetual preferred stock offering to buy more Bitcoin. This move is part of their ongoing strategy to bolster their Bitcoin reserves. The offering allows conversion from class A common stock, cash dividends, or share redemption. While this plan aims to strengthen their balance sheet, MicroStrategy may decide not to proceed based on market conditions. Currently, they own 446,400 Bitcoin, valued at $43.9 billion, with a significant increase in their stock price following the announcement.

Coinbase is exploring the idea of offering tokenized shares of its stock, COIN, to U.S. users on its Ethereum layer-2 network, Base. Currently, these tokenized shares are available to non-U.S. users via platforms like Backed. Jesse Pollak, a Base developer, mentioned that while there are no concrete plans yet, Coinbase is in an exploratory phase, focusing on navigating U.S. regulations. The global market for tokenized real-world assets is a $30 trillion opportunity. Analysts emphasize the need for clearer U.S. regulations to boost crypto adoption, especially for tokenized securities like COIN.

**Solana's Memecoin Surge and AI Skepticism**

Solana's ecosystem is buzzing with activity as memecoins drive significant growth. In 2024, Solana's total value locked skyrocketed from $1.5 billion to $8.5 billion, largely fueled by retail traders and platforms like Pump.fun, which has seen volumes surpass $8.5 billion.

Despite this memecoin boom, Solana founders remain skeptical about AI agents, labeling them as overrated. Concerns also mount over maximum extractable value (MEV) issues, with Solana's validators earning more from MEV than Ethereum's for the first time, leading to increased transaction fees.

**Crypto Moves in Congress: Rep. Collins Discloses Investment**

As the 119th session of Congress kicks off, Georgia Rep. Mike Collins has disclosed a cryptocurrency investment. On January 1, Collins reported purchasing between $1,001 and $15,000 in Ski Mask Dog (SKI), a token that saw a price surge post-election.

Collins, who won reelection in Georgia's 10th district, has previously invested in Ether and other digital assets. While he supports crypto-friendly legislation, he hasn't made it a key policy focus.

The STOCK Act mandates such disclosures, but some lawmakers push for stricter rules to avoid conflicts of interest. Will Congress address this in 2025? Stay tuned.

Crypto projects are set to attract more venture capital in 2025, according to HashKey Capital CEO Deng Chao. Venture capitalists are eyeing stablecoins, real-world asset tokenization, AI, and infrastructure. Chao predicts increased digital asset valuations and supportive US policies will drive investments, but warns of potential macro risks like geopolitical tensions.

Stablecoins are gaining traction, especially in emerging markets, as they offer banking solutions without traditional infrastructure. The real-world asset tokenization sector could hit $30 trillion by 2030. Despite growth, 2025 VC investments are expected to fall short of the 2021 peak.

Bitcoin's hashrate hit a record high on January 3, surpassing 1,000 exahashes per second, nearly doubling from last year. This surge indicates that miners are boosting computational power, enhancing network security despite reduced rewards from April's halving.

Mining companies like Riot Platforms and CleanSpark are expanding operations, acquiring facilities to increase hashrate. JPMorgan noted miners are also focusing on accumulating Bitcoin, raising stock price targets for mining firms due to their power assets and BTC holdings.

Institutional interest is rising, with Bitcoin ETFs surpassing $100 billion in assets. Sygnum predicts increased institutional participation by 2025, driven by regulatory clarity and potential recognition of Bitcoin as a central bank reserve asset.

Bitcoin is testing key resistance levels as the new year kicks off, with BTC/USD reaching $97,000 during the US market open. After a rapid start, Bitcoin is eyeing a reclaim of the 50-day simple moving average (SMA) at $96,740. Traders are cautious, noting a low-volume pump and overbought conditions on the stochastic RSI. Analysts suggest a potential price dip could be a buying opportunity, with some predicting a short-term floor near $80,000. While optimism remains, traders are advised to watch resistance levels closely as Bitcoin seeks to continue its bull run.

Ethena is gearing up to launch a new crypto product, iUSDe, in February, targeting traditional finance (TradFi) institutions. Built on its synthetic dollar, sUSDe, iUSDe features a "simple wrapper contract" with transfer restrictions. Ethena aims to partner with TradFi distribution channels by the end of January to make iUSDe accessible to asset managers, private credit funds, and more.

Ethena's sUSDe offers a 10% APY, attracting over 368,000 investors with $5.85 billion invested. The synthetic dollar could significantly impact TradFi markets, given their $190 trillion size. Ethena quickly reached $100 million in revenue, highlighting its rapid growth.

Bitcoin closed 2024 with a bang, soaring past $100,000, marking a landmark year for the crypto world. Key highlights included the approval of spot Bitcoin ETFs, which set the stage for this price surge. The year was also filled with regulatory changes, high-profile arrests, and the ever-evolving crypto landscape.

Cointelegraph's editorial team reflected on the year, dubbing it "Bitcoin summer," as the cryptocurrency took center stage. Looking ahead to 2025, they anticipate broader crypto recognition, AI integration, and a potential NFT resurgence. For more insights, catch their full discussion on the Decentralize podcast.

XRP has overtaken Tether's USDT to become the third-largest cryptocurrency by market cap, now trailing only Bitcoin and Ether. XRP's market cap surged to nearly $141 billion, while USDT saw a $1.6 billion drop, coinciding with the EU's new MiCA regulations for stablecoins. These rules demand full reserves and licenses for issuers, affecting USDT's market share.

XRP's rise is fueled by ETF speculation and Ripple's new stablecoin, RLUSD. Despite the shift, Tether remains the dominant stablecoin, holding 67.21% of the market. Meanwhile, USDC, Coinbase's stablecoin, follows with a $44 billion market cap.