Weekly Web3 Research | Market Fluctuated and Fell Significantly; the Release of DeepSeek Caused A Sharp Fluctuation in the AI ​​Sector

Weekly Trend Overview

The overall crypto market continued to fluctuate this week, with many track coins experiencing a relatively obvious decline. The news factor that had a greater impact on the market was the launch of DeepSeek, which had a particularly large impact on the crypto AI sector. Currently, as the market approaches the closing time of the week, the overall market has entered a relatively low price fluctuation range for the week.

Most mainstream cryptocurrencies experienced a round of obvious volatile decline in the mid-week period, followed by a round of small volatile upward movement, and prices basically returned to the opening period of the week. Although external news factors are concentrated on new products and regulatory policy trends, the overall crypto market has no clear trend of change.

This week, the price trend of BTC continued to fluctuate, basically maintaining a range of $100,000-$105,000. The current price is still in this oscillation cycle. The low point of BTC price fell below $100,000, but there was no large-scale rebound. The coin has returned to the opening price range, and it is likely to maintain the current price level in the short term. Overall, the prices of key mainstream coins are mostly in a similar trend state, and the total market value is expected to continue to rise and fall in the short term. The current market sentiment remains around 54. The overall market value of the crypto market has increased slightly compared to the same period last week, reaching around $3.58 trillion, up 3.18% in 24 hours.

Compared with last week, the overall performance of the crypto market this week fluctuated more frequently, and the overall market fluctuated up and down. The price of BTC remained around $100,000 for the week, with small fluctuations for most of the time. The price of ETH is currently recovering, and the current price remains around $3,275.

The overall volatility trend of the crypto market this week is mainly a relatively obvious oscillating ups and downs, and most coins have a certain price decline. The top coin with the largest increase this week is XCN, which has the largest weekly increase, reaching an increase of about 82%.

The probability of a large-scale change in the overall crypto market this weekend is low, and it is likely that the overall market trend will continue to fluctuate.

Crypto Market

🔥Jennifer Rosenthal, former head of communications at Grayscale Investments, will officially join DeFi Education Fund as chief communications officer on January 29.

🔥DeepSeek announced on the service status page: DeepSeek’s online services have recently been subject to large-scale malicious attacks. In order to continue to provide services, registration methods other than +86 mobile phone numbers are temporarily restricted.

🔥According to Lookonchain monitoring, the ten US Bitcoin ETFs had a net inflow of 4,812 BTC (US$489.31 million) on Monday, of which Fidelity had an outflow of 1,769 BTC (US$179.84 million). Fidelity currently holds 214,136 BTC, equivalent to approximately US$21.77 billion.

🔥According to official news, Ripple has obtained remittance licenses in New York and Texas, USA.

🔥Regulated stablecoin provider AllUnity is launching an electronic token pegged to the euro. The asset will be settled on the 21X RWA platform, simplifying market entry for European institutional entities.

🔥 Ethereum staking infrastructure SSV Network posted on the X platform that tomorrow at 2 pm (UTC time), SSV Network DAO expects to see SSV Labs announce a major potential upgrade to SSV Network.

🔥According to the on-chain data tracking service Whale Alert, at around 10:30 pm Beijing time, 500,000,000 USDT were transferred from Aave to HTX.

🔥The U.S. stock market opened, and the three major stock indexes opened lower, with the Dow Jones Industrial Average down 0.8%, the S&P 500 down 2.2%, and the Nasdaq down 3.6%. DeepSeek triggered concerns about the valuation of chip stocks, and semiconductor stocks fell sharply, with Nvidia (NVDA.O) falling 12%, Broadcom (AVGO.O) falling 13%, TSMC (TSM.N) falling 10%, and ASML (ASML.O) falling 7%.

🔥Crypto payment gateway Alchemy Pay announced that it has registered as a digital currency exchange provider with the Australian Transaction Reports and Analysis Centre (AUSTRAC). This approval enables Alchemy Pay to provide fiat-crypto payment services in the Australian market.

🔥Creditcoin, an L1 blockchain focused on the RWA field, announced the launch of a $10 million ecosystem investment program through Credit Labs. The program aims to accelerate innovation within the Creditcoin ecosystem by providing equity investments of $25,000 to $250,000 to entrepreneurs, developers, and companies. Applications will open today.

🔥Starknet announced that the second phase of the STRK staking plan will be launched in the second quarter of 2025. Data shows that the first phase has attracted more than 60,000 representatives to participate, with a total staking amount of 150 million STRK, and a total of 100 validators connected to the network.

🔥According to the on-chain data tracking service Whale Alert, at around 9:42 pm Beijing time, 1,023 BTC (US$103,506,867) was transferred from an unknown wallet to Cumberland.

🔥On January 27, World officially issued a statement to clarify the continued misinformation shared on social media. World stated that they comply with all Brazilian laws and regulations, have not purchased or exchanged tokens for personal data (including iris data); do not collect, store or sell personal data (including iris data), and provide useful services to network participants.

🔥On January 27, Michael Saylor announced on the X platform that MicroStrategy announced the launch of a new convertible preferred stock Proposed Strike Preferred Stock Offering (STRK), which can be purchased by institutional investors and some retail investors.

🔥Greeks.live analyst Adam posted on social media that “after the price of Bitcoin fell sharply to $98,000, group members generally held a bearish attitude in the short term, and most traders expected the price to fall further to the $94,000-96,000 range. This trend is generally believed to be related to macro factors, and the overall sell-off of Nvidia and US technology stocks is seen as a trigger.

🔥On January 27, Ethereum Layer2 project Mode announced the launch of a subnet called Synth on Bittensor, aiming to develop an AI-based crypto asset price prediction system. As a member of the Optimism Superchain ecosystem, Mode will provide infrastructure for AI-driven financial modeling through this subnet.

🔥According to the Form S-3 registration statement submitted by MicroStrategy to the U.S. Securities and Exchange Commission (SEC), it has submitted a hybrid securities registration application, and the potential proceeds are intended to be used to purchase more Bitcoin and general corporate purposes.

🔥Bitcoin Magazine CEO David Bailey said on the X platform that US President Trump said in a conversation with him, “He will 100% support the crypto industry and will push Bitcoin to a new height.” David Bailey also thanked Trump for fulfilling his promise to the crypto industry in the post.

🔥On January 27, the decentralized AI platform Nodepay released its 2025 roadmap. According to the roadmap, Nodepay will launch a number of important products.

🔥Golden Finance reported that Glassnode data showed that the hourly funding rates of the market’s mainstream crypto assets (BTC, ETH, SOL, XRP, DOGE) have not yet recovered to the level during the bull market from November to early December last year, indicating a lack of strong buying demand in the market.

🔥 Identity verification blockchain company Humanity Protocol announced on Monday that it has reached a fully diluted valuation of $1.1 billion after raising $20 million in a round co-led by Pantera Capital and Jump Crypto.

🔥Just as China is about to usher in the Lunar New Year, the “phenomenal” rise of Chinese artificial intelligence startup DeepSeek has “overturned” US technology stocks and raised market questions about the dominance of US technology.

🔥According to MicroStrategy’s latest 8-K filing, the company issued and sold 2.765 million shares between January 21 and 26, raising a net amount of approximately US$1.1 billion. All the proceeds have been used to purchase 10,107 bitcoins at an average price of approximately US$105,600.

🔥Poland added 10 new Bitcoin ATMs on January 27, bringing its total number of active machines to 219, surpassing El Salvador to become the world’s fifth largest crypto ATM network after the United States, Canada, Australia and Spain.

🔥On January 27, QCP Capital’s latest analysis pointed out that Bitcoin and other risky assets fell back below $100,000, mainly due to the continued fermentation of Deepseek-related news since the weekend.

🔥Monday’s crypto market downturn came after Chinese artificial intelligence lab DeepSeek released DeepSeek R1, which had a notable impact on the prices of AI-related tokens.

🔥Nvidia’s stock price plummeted due to investor concerns about Chinese artificial intelligence startup DeepSeek, with the world’s largest company seeing a record amount of market value evaporate.

🔥OpenSea announced on the X platform that the snapshot has been completed, the number of eligible wallets is 49,785, and if you hold Gemesis NFT at 7:38 pm EST on January 26, 2025, you can now access the OS2 private beta version.

🔥Hugging Face, an artificial intelligence community, shows that DeepSeek has just released an open source multimodal artificial intelligence (AI) model Janus-Pro. Among them, Janus-Pro-7B beat OpenAI’s DALL-E 3 and Stable Diffusion in the GenEval and DPG-Bench benchmarks.

🔥According to Lookonchain monitoring, in the past 7 days, 2.06 billion stablecoins (USDT&USDC) on the Ethereum mainnet were issued, and 2.04 billion stablecoins (USDT&USDC) on the Solana chain were issued.

🔥According to Arkham monitoring data, in the past half hour, Trump’s crypto project World Liberty Financial has accumulated 3,247 ETH, equivalent to approximately $10 million.

🔥Monochrome has submitted an application to Cboe Australia for the third spot crypto asset ETF - Monochrome Litecoin ETF (ticker: $LTCC).

🔥Cboe filed a 19b-4 application with the U.S. SEC, seeking to allow in-kind creations and redemptions for ARK’s 21Shares Bitcoin ETF and 21Shares Core Ethereum ETF.

🔥The Venice AI project, which provides private access to DeepSeek, said that there was no pre-sale to “external investors” and that no governance mechanism has been established yet.

🔥Matthew Sigel, director of digital asset research at VanEck, said Bitcoin is the only cryptocurrency suitable for U.S. government reserves because it is fundamentally different from all other digital assets.

🔥Metaplanet, a Japanese listed company, officially announced its Bitcoin strategic plan from 2025 to 2026, aiming to hoard 10,000 Bitcoins by the end of 2025 and further increase it to 21,000 Bitcoins by the end of 2026.

🔥QCPCapital released its daily market observation, saying that DeepSeek is still at the top of the App Store rankings. Its latest AI version caused a huge response on Wall Street and risk asset markets yesterday, with the Nasdaq index falling 3% and NVIDIA plummeting by a staggering 17%.

🔥The 2024 Ecosystem Report released by dYdX shows that the platform’s annual trading volume reached US$270 billion, and the cumulative trading volume exceeded US$1.46 trillion.

🔥Vanda Research: Retail investors bought a record $562.18 million of Nvidia stock during Monday’s deep sell-off.

🔥Short-term Bitcoin holders exited their positions at losses as prices fell on Monday, while derivatives traders also cut losses, leading to a sharp drop in open futures contracts on the Chicago Mercantile Exchange.

🔥According to the on-chain data tracking service Whale Alert, at around 20:47 Beijing time, USDC Treasury minted 250 million new USDC on the Solana chain, worth approximately US$250 million.

🔥On January 28, Layer 1 network developer Pod announced the completion of a $10 million seed round of financing, planning to build a “consensus-free” Layer 1 network with transaction speeds comparable to the response time of Google searches.

🔥According to sources, several companies are discussing the potential application of blockchain technology with Musk’s DOGE team. Bloomberg reported that Musk’s DOGE team is evaluating blockchain technology to promote efforts to improve government efficiency. Earlier news, Musk was exploring the use of blockchain technology to improve the efficiency of the US government.

🔥Ripple CEO Garlinghouse confirmed that he had discussed with Trump the possibility of using XRP as a strategic reserve asset for the United States, and emphasized that reserves should be diversified, while refuting the claim of trying to suppress Bitcoin. He pointed out that the crypto industry has huge opportunities and there will be multiple winners in the future.

🔥Base ecosystem DEX protocol Aerodrome issued an announcement stating that around the launch of VVV, a small portion of trading activity was flagged by internal monitoring in less than 30 minutes - triggering an internal investigation.

🔥Fed Mouthpiece Nick Timiraos wrote that as Trump considers using tariffs more boldly, a key question hangs over the Fed: To what extent will any price increases stimulate public expectations of higher inflation? When or whether the Fed resumes rate cuts will depend largely on the inflation outlook, which in turn may depend on whether Trump makes good on his threat to raise tariffs.

🔥Robinhood CEO Vlad Tenev advocates for updating SEC investor rules to facilitate tokenization.

🔥Tether issued an additional 1 billion USDT on the Tron network. Tether CEO Paolo Ardoino said that the additional 1 billion USDT was for inventory replenishment.

🔥Market news: CME will launch options contracts based on Bitcoin futures expiring on Friday.

🔥Sei Foundation has launched a $65 million venture fund focused on decentralized science (DeSci).

🔥According to Dune data, the total on-chain holdings of the U.S. spot Bitcoin ETF have exceeded 1.19 million BTC, and now reach about 1.196 million BTC, accounting for 6.04% of the current BTC supply. The on-chain holding value has reached approximately US$122.1 billion.

🔥Tesla reported a $600 million gain on its Bitcoin holdings in the fourth quarter as it adopted new accounting rules that allow companies to value digital assets at market prices every quarter.

🔥Texas Lieutenant Governor Dan Patrick announced the state’s legislative priorities for 2025, which included a proposal to establish the Texas Bitcoin Reserve.

🔥Web3 domain name infrastructure company D3 Global announced the completion of a $25 million Series A financing round led by Paradigm.

🔥According to the Financial Times: SoftBank is in talks with OpenAI to invest $15 billion to $25 billion directly. The company has previously pledged to invest more than $15 billion in the Stargate project.

🔥Cynthia Lummis, the proposer of the “Bitcoin Strategic Reserve Act” and chairperson of the U.S. Senate Banking Digital Assets Subcommittee, wrote on X that one of the top priorities will be to hold a public hearing on strategic Bitcoin reserves.

🔥10x Research analysis shows that Bitcoin may face a supply crunch, although the market still lacks key market structure data support.

🔥Bitwise Investment Director Matt Hougan said cryptocurrencies won’t “fully overcome” the four-year cycle, but he said market corrections will be “shorter and shallower” than before.

🔥Multiple Trump-themed online retailers have begun accepting Trump as a payment method. In addition, blockchain-based travel booking platform Travala has also supported the use of Trump to pay for vacations, hotels and air tickets.

🔥David Sacks, Trump’s crypto adviser, was asked on a Fox News TV interview when the United States would announce a strategic Bitcoin reserve. David Sacks said: “Trump has asked us to study this issue, and this is one of the things we are currently investigating.”

🔥Ethereum community members have overwhelmingly supported Danny Ryan as the next leader of the Ethereum Foundation (EF) in an unofficial on-chain vote. Currently, 99% of the 296 wallets holding more than 50,000 ETH (worth about $160 million) voted for Ryan, but the vote has no official effect.

🔥JPMorgan analysts found that Bitcoin (BTC) has the highest correlation with small-cap technology stocks, especially in the Russell 2000 technology sector. This correlation peaks when the technology market performs strongly or sells off.

🔥Nasdaq-listed Thumzup Media Corporation released a shareholder letter outlining the company’s achievements in 2024 and its future strategic vision. It disclosed that it had purchased $2 million worth of Bitcoin and currently holds 19.106 BTC. It also stated that it will allocate up to 90% of its liquid assets to Bitcoin in accordance with the strategy approved by the board of directors. In addition, Thumzup Media Corporation stated that it has conducted an additional public offering of $8.2 million through a listing.

🔥Canadian technology company Matador announced that it had increased its holdings of 3.38 BTC at a price of 500,000 Canadian dollars ($347,022), with an average price of $102,703.

🔥Geoff Kendrick of Standard Chartered Bank said that Bitcoin could climb to $130,000 in the next two months as institutional money inflows accelerate and market sentiment turns risk-on.

🔥K33 Research says Norway’s Norges Bank Investment Management (NBIM) has accumulated $356.7 million in indirect Bitcoin (BTC) exposure.

🔥Decentralized infrastructure provider Elastos said it has raised $20 million from private investment firm Rollman Management as it plans to expand its merged-mined ELA token into a Bitcoin reserve asset.

🔥Apollo, an investment company with over $730 billion in assets under management globally, has launched a tokenized private credit fund and is working with Securitize, Solana and Ink blockchains.

Regulatory & Macro Policies

🔥 Spanish law enforcement has partnered with blockchain firms Tron, Tether, and TRM Labs to freeze $26.4 million in cryptocurrency tied to a pan-European money laundering operation.

🔥The U.S. federal court in California made a partial ruling on the SEC v. Kraken case. The court rejected Kraken’s core defense that “Congress did not authorize the SEC to regulate cryptocurrencies” and supported the SEC’s regulatory authority over crypto assets.

🔥According to an official announcement, Caroline D. Pham, Acting Chair of the U.S. Commodity Futures Trading Commission (CFTC), is launching a series of public roundtables to discuss changing trends and innovations in market structure, covering topics such as affiliated entities and conflicts of interest, prediction markets, and digital assets.

🔥David Sacks, White House artificial intelligence and crypto chief, said that the emergence of DeepSeek R1 shows that the competition in artificial intelligence will be very fierce, and Trump was right to revoke Biden’s executive order because Biden’s executive order constrained American artificial intelligence companies.

🔥The French Senate has passed a 2025 budget that includes a tax on “unproductive wealth” in Bitcoin and other cryptocurrencies. The tax will be levied annually on unrealized gains on crypto assets, meaning that even if crypto holders do not sell their assets, they will be taxed. The proposal currently awaits a vote in the National Assembly.

🔥Bloomberg analyst James Seyffart posted on the X platform that Tuttle Capital has just applied to the U.S. Securities and Exchange Commission (SEC) for 10 different leveraged crypto asset ETFs. These include a bunch of memecoin products and assets that don’t have ETPs yet. This is the first ETP application in the U.S. to track Chainlink, Cardano, Polkadot, etc.

🔥Crypto supporter and Republican Senator Cynthia Lummis accused the U.S. Securities and Exchange Commission under former Chairman Gary Gensler of undermining lawmakers’ efforts to regulate cryptocurrencies.

🔥The Federal Reserve is expected to keep interest rates unchanged this week, giving itself more time to reduce inflation and assess the impact of President Trump’s policies on the economy.

🔥According to Cointelegraph, Utah’s Bitcoin bill has been approved by the House Economic Development and Workforce Services Committee. The bill has now been submitted to the House for deliberation. The bill will pave the way for Utah to invest in Bitcoin and other digital assets.

🔥The Federal Reserve’s first move of the new year kept the benchmark interest rate unchanged at 4.25%-4.50%, in line with market expectations.

🔥Federal Reserve Chairman Powell said that the current policy is significantly looser than when we started to cut interest rates, and that substantial progress in inflation or a weak job market is needed before we can consider cutting interest rates.

🔥Federal Reserve Chairman Powell said at a press conference after the Fed decided to keep interest rates unchanged that he had not been in contact with President Donald Trump so far, and declined to comment on Trump’s remarks last week that he would ask the Fed to lower interest rates.

🔥The U.S. Securities and Exchange Commission has approved the 19b-4 filing submitted by Canary Capital for its spot Litecoin ETF.

🔥Thailand’s finance minister said the government supports asset-backed crypto tokens and suggested setting up a digital asset “sandbox” in Phuket.

🔥Illinois Congressman John Cabello introduced HB1844, proposing to establish a strategic Bitcoin reserve fund in the state treasury.

🔥The Czech National Bank (CNB) will vote today on a $7 billion Bitcoin reserve proposal, but Czech Finance Minister Zbynek Stanjura warned of Bitcoin’s high volatility, arguing that it does not meet the requirements for central bank stability.

Crypto Market Highlights

⭐️Last week, the overall trend of the crypto market was mainly characterized by frequent fluctuations. Although the prices of most mainstream coins in the crypto market have rebounded as the market recovers, the market is still in a relatively clear fluctuation cycle as it approaches the weekend closing time, and the probability of maintaining a small range of fluctuations is relatively high.

⭐️This week, the XCN crypto market has seen a clear upward trend, greatly affected by the dynamics of exchanges. XCN has risen by about 82% in a week, and the current price remains around $0.03395. The coin is still in a relatively frequent fluctuation range.

BTC & ETH Weekly Performance

Bitcoin (BTC)

(Data Courtesy Of TradingView)

This week, the price changes of BTC were concentrated in a certain price range. There was a round of price decline at the opening of the week, and it once fell below the price of $100,000. It showed a fluctuating recovery trend afterwards, but the coin price basically maintained a small range of fluctuations as last week, and basically lacked support for price increases. The coin price basically maintains in the range of US dollars around 105,000, which is in the same range as the closing period of last week.

Ethereum (ETH)

(Data Courtesy Of TradingView)

The price trend of ETH this week is mainly volatile and downward. Most of the time, the trend is similar to BTC, but the recovery trend is relatively small near the weekend closing. The ETH price is currently maintained below $3,300, and the coin price is basically maintained above $3,000. The high point of the ETH price in the week is around $3,360, which is in the same range as the opening price period. The coin is in a continuous small fluctuation channel. It is expected that there will be a new round of price changes during the weekend, and the probability of a small increase is relatively high.

Web3 Project Trend

The total market value of the seven types of projects fluctuated this week. Although the overall market changes this week were relatively complicated, there were still track projects with more obvious growth. It is expected that short-term shocks will still be the mainstream trend.