Ethereum Surpasses Bitcoin in Long-Term Investor Retention in 2024
In 2024, Ethereum overtook Bitcoin in long-term investor retention at 75.06%, surpassing Bitcoin’s 62%, indicating growing market confidence in Ethereum. Although ETH’s 48% growth fell short of BTC’s 122%, developments such as the Dencun upgrade, proto-danksharding, and approvals for Ether ETFs have increased Ethereum’s appeal. Despite falling 12% to $93,000 in the past two weeks, Bitcoin is now considered to be back in accumulation territory, with the potential to reach $131,500 or more in the first quarter of 2025. The Crypto Fear & Greed Index also fell, reflecting the cautious approach in market sentiment as both assets prepare for 2025.
December Record Trading Volume on DEXs: Solana Maintains Lead
Decentralized exchanges (DEXs) saw record-breaking trading volumes in December, with on-chain spot trading reaching $451.5 billion and derivatives trading reaching $325.3 billion, according to DefiLlama. Solana maintained its lead in spot trading for the third month in a row, recording $112 billion in volume, surpassing Binance Smart Chain (BSC) and Ethereum. However, it was down 15.7% from its November peak of $132.3 billion. On-chain derivatives trading also saw a big increase, with Hyperliquid maintaining its leading position with $152.4 billion. Solana came in second, down 21%, with $34.1 billion. These trends are driven by evolving crypto narratives that reflect increased activity and liquidity rotation across blockchains.
Floki Delays Valhalla’s Mainnet Launch to Q1 2025
Floki has delayed the mainnet launch of its metaverse game Valhalla to Q1 2025, following recommendations from blockchain auditors such as Hacken and OpenZeppelin to improve security. Three years in development and with a treasury of $60 million, Valhalla aims to revolutionize the blockchain gaming industry and increase metaverse adoption. The delay provides developers with the opportunity to address audit feedback, improve smart contract security, and protect user assets. Floki positions Valhalla as a cornerstone of its ecosystem, while emphasizing its commitment to providing a secure and sustainable product, and calling on the community to be patient.
MicroStrategy Purchases Another 2,138 BTC
MicroStrategy purchased an additional 2,138 BTC in Q4 2024, bringing its total Bitcoin holdings to 446,400 BTC. The company made this purchase for approximately $209 million, at an average cost of $97,837 per Bitcoin. It has spent a total of $27.9 billion to date, at an average cost of $62,428 per Bitcoin. Looking at its performance in 2024, the company’s Bitcoin return was recorded as 47.8% quarterly and 74.1% since the beginning of the year.
Tether Adds 7,629 More Bitcoin to Its Strategic Reserve
Tether, the issuer of the largest fiat-backed stablecoin USDT, transferred another 7,629 BTC (approximately $700 million) to its strategic Bitcoin reserve. The transaction was made from sister platform Bitfinex’s hot wallet on December 30, 2024. This was the largest transfer since March 2024. Tether currently holds more than 82,000 Bitcoins (worth $7.6 billion) as part of its strategy to allocate up to 15% of its profits to Bitcoin, which it announced in 2023. The company diversifies its reserves from U.S. Treasury bonds and cash equivalents, investing in emerging sectors like artificial intelligence, Bitcoin mining, and decentralized communications.
A16z and the Blockchain Industry’s Legal Battle Against the IRS
The blockchain arm of Andreessen Horowitz (A16z) has launched a legal battle against the U.S. Internal Revenue Service (IRS) and the U.S. Treasury Department’s new DeFi regulations. A16z, in a lawsuit filed alongside the Blockchain Association, DeFi Education Fund, and Texas Blockchain Council, called the new “broker” rules for digital asset service providers unconstitutional and a threat to the industry. A16z’s regulatory lead, Michele Korver, argued that these rules undermine the U.S. DeFi ecosystem and exceed the Treasury’s authority. The company said DeFi has the potential to create a more inclusive and consumer-centric financial system, and that it will continue to defend the technology in court and on the legal front. Uniswap founder Hayden Adams also criticized the regulations, stating that this initiative was deliberately aimed at hindering DeFi.
Former German Finance Minister Calls for Bitcoin
Germany’s former Finance Minister Christian Lindner argued that the European Central Bank (ECB) and the Bundesbank should include crypto assets such as Bitcoin in their reserves. Lindner stated that the US was considering adding crypto assets to its reserves, emphasizing that Germany and Europe risked falling behind in this regard. The Free Democratic Party (FDP), led by Lindner, has long been pushing for crypto adoption. However, Germany’s approach to crypto is still cautious. The government is being criticized for selling the 50,000 BTC seized and refusing to consider Bitcoin as a strategic reserve.
Hong Kong’s Bitcoin Move
Hong Kong MP Wu Jiexhuang has proposed that Bitcoin be included in national reserves within the framework of China’s “one country, two systems” policy. Jiexhuang stated that Bitcoin could strengthen financial stability, reduce market volatility and provide an advantage in attracting investment to Hong Kong. Reminding that small countries such as El Salvador and Bhutan use Bitcoin as strategic reserves, Jiexhuang stated that the market impact of spot Bitcoin ETFs in the US should be examined. He also noted that US President-elect Donald Trump’s plan to make Bitcoin a strategic reserve asset would affect traditional markets.
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BITCOIN (BTC)
BTC is priced at $ 92,530 as of the morning hours with a 0.28% loss in value. BTC, which decreased by 1% yesterday, showed volatile movement between the $ 95,000 and $ 91,500 bands. For BTC, which started the new day in the support zone of 93,070 – 91,790, if the negative trend continues, the support level where buyers are concentrated at $ 91,790 can be expected to work first. If this level is broken and maintained below, a pullback may continue to the $ 90,810 levels. In a possible positive scenario, candle closings above $93,070 will be important. Then, the $94,500 and $96,280 levels, where selling pressure is intense, can be expected to act as resistance. Therefore, it will be important for investors to carefully monitor the identified critical support and resistance levels.
ETHEREUM (ETH)
ETH is priced at $ 3,341 as of the morning hours with a 0.60% loss in value. ETH, which closed yesterday with a horizontal positive of 0.16%, broke the $ 3,373 resistance but could not maintain permanence above it and is showing movement in the support zone in the morning hours. For ETH, which is currently supported by $ 3,334, the middle band of the support zone, it will be important for it to first break $ 3,373 and maintain permanence above it in order to move positively. Afterwards, the $3,467 – $3,525 band can be expected to work as a resistance zone. In case of possible negative movement, the $3,292 and $3,260 levels are in the support position, respectively. If these levels are broken, the $3,025 level appears as a major support. Therefore, it is important for investors to carefully monitor the identified critical support and resistance levels.
RIPPLE (XRP)
XRP is traded at $ 2.0264 with a loss of 1.65% as of the morning hours. Having closed the past two days negatively and falling below the support zone, XRP seems to have broken the $2.0740 support level downwards by starting the new day negatively. If the possible negative movement continues, the $2 psychological support level can be expected to work first, followed by the $1.9580 level. If these levels are broken, the $1.8171 major support level can be expected to work. In a possible positive movement, it will be important to break the $2.0740 level first and maintain it above. Then, the $2.16 – $2.23 band can be met as an intermediate resistance zone. Therefore, it is important for investors to pay attention to the support and resistance zones determined by taking into account volume and momentum.
AVALANCHE (AVAX)
AVAX is trading at $ 35.21 levels with a 2.20% loss as of the morning hours. The price is moving just below the support zone of $ 35.50 – $ 37.29. In a possible negative scenario, if it cannot hold on to these levels and candles close below a critical support position of $ 35.50, the levels of $ 33.01 and $ 30.66, respectively, stand out as support zones with intense buyers. In the event of a possible positive trend, it will be important to first overcome the $35.50 and then the $37.29 level and maintain it above this level. In this case, the $40.06 and $42.50 levels, respectively, stand out as resistance zones where sellers are concentrated. It will be important for investors to follow these critical support and resistance levels carefully.
SOLANA (SOL)
SOL is priced at $ 189 levels with a 1.18% loss in value as of the morning hours. SOL, which broke the critical $ 191 level in the morning hours, is showing movement just below this level. It is of critical importance for candles to close above the $ 191 level for a possible positive trend. If candles close above this level, the $ 200.13 and $ 205.11 levels may appear as resistance. Above, $214.72 stands out as a resistance level where sellers are concentrated. In case of movement and persistence below the $191.26 level, the $183.60 and $177.10 levels stand out as support zones where buyers are concentrated. It is important for investors to closely monitor these critical support and resistance levels.
