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NFT Market Shifts Strategy as Trading Declines and Token Launches Gain Momentum

As the NFT market continues its decline—dropping to just $190 million in monthly trading volume on OpenSea, down from a $5 billion peak in 2021—major platforms are pivoting toward token launches to revive engagement and liquidity. The trend began with Pudgy Penguins’ PENGU airdrop in December, followed by Doodles announcing its Solana-based DOOD token as part of its expansion into animation, music, and partnerships like McDonald's. OpenSea is also evolving, unveiling OS2, a multi-chain platform combining NFT and crypto trading, with plans for a native token, SEA, aimed at fostering long-term engagement. As memecoins lose traction, the industry is shifting toward more sustainable ecosystems, blending NFTs with token-driven communities. This shift is underscored by a renewed focus on serious digital art, highlighted by the recent $3 million sale of X.Masquerade, the largest NFT art transaction in three years. See similar: OpenSea to Modify Points Program Amid Community Backlash

Ethereum Transaction Fees Plunge to Four-Year Lows Amid Declining Activity

The 7-day moving average (7DMA) of Ethereum transaction fees fell to $0.77 on February 15, 2025, marking a 70% drop from $2.57 the previous week—its lowest level since July 2020. The median gas price also hit record lows, averaging 1.61 GWEI over the past week, with a historic low of 1.19 GWEI on February 15. Despite typically spurring user activity, the dramatic decline signals weak demand rather than improved network efficiency, as reflected by a 46% drop in on-chain volume to $4.19 billion, the lowest since November 7, 2024, post-U.S. presidential election. These persistent declines highlight ongoing challenges for Ethereum's network utilization.

Source: The Block

Crypto Scams Surge in 2024 as Pig Butchering Cases Rise 33%

In 2024, crypto scams caused losses exceeding $9.9 billion, with pig butchering scams—a form of romance scam—rising by 33.2%, according to a Chainalysis report. These scams, primarily originating from Southeast Asia, involve fraudsters establishing emotional connections with victims before persuading them to invest in fake crypto schemes. Scammers have also diversified their tactics, increasingly turning to employment and work-from-home scams, such as fraudulent job sites impersonating major brands. Although these newer scams accounted for less than 1% of total scam-related inflows, they affected thousands, prompting an FBI warning in 2024. Chainalysis warns that the total losses could rise as additional fraudulent addresses are uncovered.

Coinbase Q4 2024 Earnings: Growth Overshadowed by Market Reaction

Coinbase delivered a blockbuster Q4 2024 earnings report, achieving a staggering 27x increase in net income for the year, jumping from $95 million in 2023 to $2.6 billion in 2024. Despite generating half of its annual net income in Q4 alone and an 88% quarter-over-quarter revenue surge to $2.3 billion, the stock dropped 6%. Key drivers included Coinbase’s Layer 2 platform Base dominating on-chain activity and $USDC revenue hitting $910.5 million for the year. Regulatory wins, including expanded token listing potential and renewed M&A opportunities, further fueled optimism. Institutional adoption soared, with assets on the platform totaling $404 billion, representing 12% of the total crypto market cap. Looking ahead, Coinbase is eyeing growth in real-world assets (RWAs), derivatives trading, and even launching its own decentralized exchange (DEX). Despite the market’s reaction, Coinbase’s fundamentals and expansion strategies suggest a strong long-term outlook. See similar: Robinhood shares surge as Q4 crypto revenue jumps 700%

Source: Coinbase

Regulation

Binance.US Resumes Fiat Services Amid Ongoing SEC Legal Battle

Binance.US has reinstated fiat deposits and withdrawals for the first time in nearly two years, gradually rolling out zero-fee ACH bank transfers for eligible U.S. customers starting Wednesday. The platform had suspended fiat functionality in June 2023 after the Securities and Exchange Commission (SEC) filed a lawsuit against Binance, Binance.US, and co-founder Changpeng Zhao over alleged securities violations. Although the legal case remains unresolved, a U.S. judge granted a 60-day pause on proceedings as the SEC's new crypto task force works on establishing clearer regulatory guidelines. Binance.US, which had operated as a crypto-only exchange during the suspension, aims to recover market share while providing access to over 160 cryptocurrencies.

Source: The Block

SEC Shifts Crypto Strategy, Reduces Enforcement Unit Amid Leadership Transition

As Paul Atkins awaits confirmation as the new head of the U.S. Securities and Exchange Commission (SEC), Acting Chair Mark T. Uyeda has initiated a significant shift away from the agency’s previous regulation-by-enforcement approach to digital assets. Over 50 staff members, including high-profile litigators like Jorge Tenreiro, have been reassigned from the Crypto Assets and Cyber Unit, which had expanded to 50 members in 2022. Uyeda has also established a Crypto Task Force led by Commissioner Hester Peirce, rescinded Staff Accounting Bulletin 121 to ease crypto custody restrictions for banks, and introduced a dedicated crypto@SEC.gov contact for industry engagement. In her statement, “The Journey Begins,” Peirce outlined goals such as clarifying the securities status of tokens, providing temporary regulatory relief, and enhancing transparency on issues like custody, lending, and staking—signaling a more collaborative and innovation-friendly regulatory approach.

Tether Faces Regulatory Pressure Amid Potential Stablecoin Reforms

JPMorgan analysts estimate that only 66% to 83% of Tether's reserves would comply with proposed U.S. stablecoin regulations under the STABLE Act and the GENIUS Act, which aim to enforce stricter reserve requirements and oversight. If passed, Tether may need to divest from assets like bitcoin, precious metals, corporate debt, and secured loans, shifting toward U.S. Treasuries and liquid reserves. Currently, Tether holds over 83,758 BTC (worth more than $8 billion), allocating up to 15% of quarterly profits to bitcoin acquisitions. CEO Paolo Ardoino dismissed the concerns, highlighting Tether’s $20 billion group equity and asserting that adapting to the new regulations would be "straightforward" amid ongoing engagement with U.S. regulators.

Source: JP Morgan

Argentine President Javier Milei Faces Fraud Charges Over LIBRA Memecoin Scandal

Argentine President Javier Milei is facing fraud charges following the collapse of LIBRA, a Solana-based memecoin that plummeted 95% from its peak after briefly reaching a $5 billion market cap. Milei initially promoted the token on X but later deleted the post, prompting accusations of fraud from plaintiff Jonatan Baldiviezo and calls for impeachment from political opponents. While Milei denies any involvement and has called for an anti-corruption investigation, blockchain analysts at Bubblemaps linked LIBRA to the same entity behind Melania Trump’s memecoin, alleging insider trading and token sniping. LIBRA advisor Hayden Davis admitted to profiting from launch-day sniping and revealed ties to both projects. As the scandal deepens, on-chain data indicates insiders extracted millions of dollars, with Davis claiming control over $100 million in sniped funds.

Brian Quintenz Nominated as CFTC Chairman, Signaling Pro-Crypto Regulatory Shift

President Trump has nominated Brian Quintenz, a former CFTC Commissioner and digital asset advocate, as the agency’s next Chairman, drawing praise from industry leaders. Quintenz, who previously oversaw the launch of regulated Bitcoin and Ether futures and chaired the Technology Advisory Committee, brings a balanced background in government and finance. Since leaving the CFTC, he has served as Global Head of Policy at a16z and held advisory roles at Crypto.com and Kalshi. His appointment fuels hopes that the CFTC could take a more prominent role in crypto regulation, pending congressional clarification of the regulatory divide between the CFTC and the SEC. While regulatory uncertainty persists, Quintenz’s nomination signals a potential shift toward more constructive engagement with the digital asset industry.

Other Domestic Regulation Updates

• SEC weighs proposals for Grayscale's XRP and Dogecoin ETFs
• Binance, SEC, File Motion to Pause Case for 60 Days 
• North Carolina Becomes 20th State to Explore Bitcoin Reserve
• Crypto-Stealing Apps Found in Apple App Store for the First Time

Other International Regulation Updates

• Abu Dhabi sovereign wealth fund declares $437 million BlackRock Bitcoin ETF investment
• Hong Kong Confirms BTC, ETH Can be Used to Prove Wealth for Investment Visa

Pain & Gain

Pain

• User burns and donates ether to spread 'brain control' warnings onchain
• Meteora co-founder Ben Chow resigns amid memecoin scandal
• AI Agent Tokens Down 50% for the Year
• DeFi Lending Platform zkLend Drained of $9.5 Million in Exploit

Gain

• OpenSea unveils plans for SEA token airdrop
• Curve Finance founder raises $5 million for new project
• Custody Firm BitGo Said to Weigh IPO Q2 2025
• Bitcoin HODLer Metaplanet was Best Performing Equity of 2024
• Goldman Sachs Doubles Down on Bitcoin ETFs, Increases Holdings by 120% in Q4