🔮Crypto is for Lovers❤️ (Happy Valentine's), Kimchi Premium, (Micro)Strategy's BTC Buying, No BTC Reserve for ECB, Unichain Launch

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South Korea’s Bitcoin “Kimchi Premium” Hits 10-Month High Amid Global Sell-Off

South Korea’s “kimchi premium”—the price gap where Bitcoin trades higher on local exchanges compared to global markets—surged to 9.7%, its highest level in 10 months, as South Korean prices remained steady despite a broader crypto sell-off. The premium often spikes during bull markets when local investors drive up prices but can also rise in times of panic, such as President Trump’s tariff announcements, when selling pressure is lower in South Korea’s closed-off crypto market, analyst Min Jung of Presto Research noted. Jung added that if U.S. selling pressure continues, the premium could remain high, but historically, it has averaged around 5%, suggesting that a market recovery could see it narrow back toward that level.

Uniswap Labs Launches Unichain to Enhance Ethereum Scaling

Uniswap Labs has launched Unichain, a Layer 2 network on mainnet, marking its second major release in two weeks following Uniswap V4. Designed to bolster security, minimize MEV, and accelerate Ethereum’s rollup-centric roadmap, Unichain introduces Rollup-Boost, a new block-building system developed with Flashbots to improve block times and reduce frontrunning. The network also enables UNI token staking and node operation for enhanced transaction verification, with 65% of net chain revenue allocated to validators and stakers. Founder Hayden Adams emphasized Unichain’s role in refining onchain trading experiences, with further UX improvements planned throughout the year.

Bitcoin Network Activity Declines as Speculative Trading Shifts

Bitcoin’s 7-day moving average of transactions has dropped to 330,000, marking a 12-month low and a 55% decline from peak levels. This downturn aligns with reduced activity in Bitcoin-based protocols like Runes and Ordinals, which now account for just 1% of transactions, with fee generation plummeting from $60 million on launch day to under $20,000 in the last month. Meanwhile, traders have shifted focus to other blockchain ecosystems, such as Solana for memecoins and Base for AI agent tokens. With transaction fees stabilizing around $500,000, Bitcoin’s primary use case appears to be reverting to monetary transfers, raising concerns about long-term fee sustainability as block rewards diminish.

Source: The Block

Ondo Coming to Tokenize Your Condo

Ondo Finance's total value locked (TVL) has surged to $650 million, up from $192 million a year ago, following its inaugural Ondo Summit. This growth has contributed to the top 15 real-world asset (RWA) protocols reaching a combined TVL of $7.68 billion, reflecting increasing institutional adoption of blockchain technology. Major asset managers—Franklin Templeton, Wellington Management, and WisdomTree—have joined as advisors for Ondo Chain, a new Layer 1 blockchain focused on tokenizing traditional financial assets. Ondo Finance also launched Ondo Global Markets, aiming to enhance accessibility and transparency in on-chain securities. The growing involvement of traditional financial institutions in blockchain infrastructure signals a broader industry shift, though long-term success will hinge on regulatory clarity and the balance between blockchain’s benefits and institutional compliance needs.

Source: DeFiLlama

Regulation

Strategy’s $12.75 Billion Bitcoin Boost

Following its rebrand from MicroStrategy to "Strategy," the company is set for a $12.75 billion balance sheet boost due to new FASB fair value accounting rules allowing it to recognize unrealized bitcoin gains. Despite reporting a $670.8 million net loss in Q4 2024, largely due to $1.1 billion in operational expenses, Strategy's financials will benefit as bitcoin's market value is now reflected in its earnings. Analysts at Bernstein highlight that starting Q1 2025, this shift will enable the firm to report bitcoin appreciation as net income. However, tax uncertainties under the 2022 Inflation Reduction Act may require an IRS exemption.

Source: Company Filings

Trump’s Truth.Fi to Invest $250M in Bitcoin and Crypto Assets

Trump Media & Technology Group has launched Truth.Fi, a fintech venture that will allocate up to $250 million into Bitcoin, crypto-related securities, ETFs, and other digital assets. The move is part of a strategy to diversify its $700 million cash reserves, as approved by its board. President Donald Trump, who owns over 50% of the company, has been vocal about supporting crypto, including the idea of a U.S. strategic Bitcoin reserve and the launch of DeFi project World Liberty Financial. The Truth.Fi launch follows Elon Musk’s X partnership with Visa for its "X Money" digital payments initiative, though X’s crypto direction remains uncertain.

ECB Rejects Bitcoin Reserves While Czech Republic Explores Allocation

European Central Bank (ECB) President Christine Lagarde ruled out Bitcoin as a reserve asset for the Eurozone, citing liquidity, security, and regulatory risks, emphasizing that reserves must be safe and free from money laundering concerns—a view unanimously shared by ECB policymakers following the bank’s fifth consecutive rate cut. Meanwhile, the Czech National Bank (CNB) is exploring Bitcoin as a reserve asset, with Governor Aleš Michl proposing a 5% allocation of the CNB’s $146 billion reserves, arguing it could have boosted annual returns by 3.5% over the past decade despite increased volatility; however, as a non-Eurozone EU member, the Czech Republic retains the flexibility to make independent monetary decisions.

Berachain’s BERA Airdrop Sparks Controversy Despite Market Surge

Berachain’s native token BERA surged 71% following its highly anticipated airdrop and mainnet launch, reaching a $1.5 billion market cap before settling at $1.3 billion. Despite this growth, skepticism surrounds its tokenomics, with critics calling it a VC insider “grift” due to high allocations for early investors. While Berachain’s Proof of Liquidity (PoL) consensus aims to reward liquidity providers, some traders argue it brings little innovation, branding it an Ethereum fork. Supporters, including Magic Eden and Chainlink, highlight its potential, but questions remain over its strategic timing and long-term viability in the competitive blockchain landscape.

Fed Chair Powell Rejects U.S. CBDC Under His Leadership

Federal Reserve Chair Jerome Powell confirmed during a Senate Banking Committee hearing that the U.S. will not issue a central bank digital currency (CBDC) while he remains in charge. His response aligns with growing opposition from Republican lawmakers who argue that a CBDC could threaten financial privacy and increase government surveillance. Powell’s stance marks a departure from previous Fed discussions on a digital dollar, reinforcing the U.S.’s divergence from global trends as countries like China, Russia, and Japan move forward with CBDC adoption. The announcement follows Donald Trump’s 2024 campaign pledge to halt CBDC development, signaling a firm political stance against government-issued digital currencies.

Other Domestic Regulation Updates

• Robinhood teases bitcoin futures trading
• Gary Gensler returns to MIT
• Tesla reports $600 million in bitcoin paper gains
• SEC scales down crypto enforcement unit
• Trump to nominate a16z's Brian Quintenz as CFTC Chair
• Grayscale and NYSE Arca file for Cardano ETF, boosting ADA's performance

Other International Regulation Updates

• Czech central bank chief proposes allocating up to 5% of reserves to bitcoin
• UK crypto gang jailed for kidnapping and extortion
• Nigeria's attempt to reconcile with crypto faces challenges, unrelated to Binance

Pain & Gain

Pain

• XRP Ledger witnesses hour-long halt
• More Elon Musk-related memecoin dumps
• Crypto Market Stalls as Investors Weigh Macroeconomic Uncertainty
• Dave Portnoy’s Endorsement Sends JAILSTOOL Memecoin Soaring

Gain

• THORChain approves $200 million debt crisis plan
• Dogecoin draws more public company interest