Token Chronicle - Week 2 March 2025

Top cryptos

Meme of the week

Market Sentiment: Indicator of Market Sentiment (scale of 1 to 100)

Market update: A turbulent market, but BTC is stabilizing around $83-84K, while ETH lags below $2K. Despite this, the macroeconomic climate seems to be easing slightly with the truce reached in the Ukraine conflict. However, tariff tensions persist (or even intensify, with announced +200% hikes on EU/US alcohol). Meanwhile, the European Union feels pressured by U.S. crypto regulations and is trying to accelerate its CBDC projects.

The conditions for a new market rebound are as follows:

• Stabilization of the macroeconomic climate, particularly an end to the all-out trade war.

• Most importantly, the Fed needs to move away from its restrictive monetary stance, in place since last December, and reopen the door to rate cuts. It must do so for a healthy reason—disinflation without economic recession. The Fed will reveal its stance and outlook this Wednesday, March 19.

Main points this week:

International News:

1. What to remember from the first-ever Crypto Summit in the United States?
   During the Crypto Summit held at the White House, Donald Trump expressed a clear willingness to support the cryptocurrency sector, though not all market expectations were met. Despite reassuring announcements regarding the end of "Operation Chokepoint" and official support for stablecoins, the lack of actual Bitcoin purchases for a strategic reserve left investors with a sense of incompleteness.

2. Trade war: China retaliates against the United States this Monday
   Another step in the trade war triggered by Donald Trump. China is responding to U.S. tariffs with its own duties, specifically targeting agricultural products such as chicken, wheat, corn, and cotton.

3. "The time for illusions is over" – Ursula von der Leyen calls for a rapid increase in European defense capabilities
   European Commission President Ursula von der Leyen has urged European countries to act quickly to rearm, emphasizing Brussels’ ambitious goal. The European Union is planning to invest hundreds of billions of euros to counter the Russian threat and the potential abandonment of Ukraine by the United States.

4. Trump's crypto push threatens European financial stability
   The U.S. administration under President Donald Trump has recently adopted a pro-crypto stance, raising concerns within the European Union about monetary sovereignty and financial stability in the eurozone. This shift comes as dollar-backed stablecoins account for 97% of the global stablecoin market, valued at $225 billion. The dominance of the dollar in this sector heightens European fears of a potential decline in the euro’s usage. Consequently, discussions about a potential digital euro are intensifying. In response to Trump’s initiatives, the European Union is accelerating its own digital euro development. Since 2020, the European Central Bank (ECB) has been working on this project to maintain citizens' access to central bank money and uphold the central role of European banks in the financial system.

5. The ECB accelerates digital euro plans, aiming for an October 2025 launch
   On March 6, 2025, during a press conference, the European Central Bank (ECB) confirmed its intention to proceed with the digital euro project, with a launch target set for October 2025. However, the project cannot move forward without approval from the European Parliament, the Council, and the European Commission. Not all lawmakers are convinced: four out of eight European Parliament groups have expressed serious concerns about the digital euro, particularly after the recent March 10 outage of the Target 2 system, which allows banks to transfer euros instantly.

6. Bourbon, motorcycles, boats... The European Union fires back with tariffs in response to Donald Trump's duties
   Tariffs for tariffs. The European Union has reinstated a series of measures against the U.S. economy. Additional taxes on agricultural products may follow, which would be even more detrimental to the United States. These tariffs would have two major effects: first, they would affect agricultural products already facing high inflation in the U.S.; second, they would target a key base of Donald Trump's supporters—America’s farming sector.

7. "It doesn't worry me" – Donald Trump dismisses recession and stock market crash concerns
   As stock markets have dropped in recent days, U.S. President Donald Trump commented on the situation, stating that he does not foresee a future recession and downplaying the impact of declining stock prices.

8. De-dollarization: Bolivia plans to use cryptocurrencies for energy imports
   To address its shortage of foreign currency, Bolivia plans to use cryptocurrencies for energy imports. Initially a major gas exporter, Bolivia has seen its reserves decline, forcing it to import increasing amounts of energy. As a result, the country's foreign currency reserves have also plummeted, leading to fuel shortages. In response to this crisis, state-owned energy company YPFB has developed a system to pay for imports using cryptocurrencies, following government approval. According to a company spokesperson, this payment method has not yet been used but is planned.

9. Russia seeks to legalize cryptocurrency trading but under strict conditions
   Russia has maintained an ambiguous stance on cryptocurrencies, but the country’s central bank has proposed legalizing crypto trading under a "special legal experimental regime" lasting three years. However, only a small segment of the population would qualify. To obtain the necessary status, individuals would need to have earned over 50 million rubles in the previous year or hold investments worth more than 100 million rubles—equivalent to approximately €52.8 million and €1.05 million, respectively.

10. Will the U.S. buy 1 million Bitcoins under the "Bitcoin Act"?
    The U.S. Congress is currently reviewing an unprecedented bill, the Bitcoin Act. Sponsored by Republican Senator Cynthia Lummis and backed by several party members, this legislation aims to establish a federal Bitcoin reserve. The ambitious goal is to acquire up to 1 million Bitcoins over five years without directly burdening taxpayers. The acquisition would be gradual, inspired by the U.S. gold reserves model. To avoid impacting the federal budget, alternative funding mechanisms are proposed, such as using Federal Reserve surpluses or re-evaluating U.S. Treasury gold certificates. The acquired Bitcoin would be stored in secure cold storage, with a strict ban preventing the Treasury Secretary from selling more than 10% of the reserves within two years. Furthermore, the bill prohibits any federal restrictions on private Bitcoin ownership, ensuring individual investment freedom.

11. Russia reportedly using Bitcoin, Ether, and USDT for oil trade
    Since the internationalization of the Russia-Ukraine conflict, Moscow has repeatedly embraced cryptocurrencies through its representatives and central bank. Reports now indicate that Russia is using Bitcoin, Ether, and USDT to trade oil with China and India.

12. A 200% tariff—Donald Trump escalates the trade war on European products
    The trade war between the U.S. and the European Union has reached a new level. President Donald Trump is threatening a 200% tariff on European wines, champagnes, and other alcoholic beverages. This retaliatory measure comes in response to Brussels imposing a 50% duty on American whiskey, following U.S. tariffs on imported steel and aluminum. The EU exports over €4.5 billion worth of wine annually to the U.S., its largest international market. France is particularly affected, having exported €2.3 billion in wine and €1.5 billion in spirits to the U.S. in 2024. Gabriel Picard, president of the French Federation of Wine and Spirits Exporters, warned that "a 200% tariff would mean a total halt to exports to the United States."

Compliance/Regulation/Justice:

1. Are Banks Really Allowed to Launch Ethereum Nodes? What Actually Changes: On Friday, the Office of the Comptroller of the Currency (OCC) issued a letter reaffirming that several crypto activities were legal for banks, including custody, stablecoins, and network nodes. Under the previous model, OCC interpretations allowed other authorities to arbitrarily veto these activities, even though they were fully legal. While the activities reaffirmed in this letter are not new per se, the ease with which they can now be operated could further democratize blockchain technologies in the banking sector.

2. Coinbase and Ripple (XRP) Criticized for Their Political Contributions: Did Coinbase and Ripple (XRP) show excessive zeal during the U.S. presidential campaign? Yes, according to the Center for Political Transparency, which criticizes both crypto companies. The organization also notes that companies that publicly supported Donald Trump were often those that received exemptions from the SEC just weeks later.

3. OKX Under Investigation for Facilitating Bybit’s Money Laundering: Bybit hackers used a decentralized service of OKX to transfer funds. The exchange platform could be held responsible by European regulators. OKX offers a service called "Web3," which provides its customers with a decentralized exchange (DEX) and a self-hosted wallet. Although the platform operates under OKX, it functions autonomously, and the company does not control the wallets it offers. A total of $100 million in stolen funds passed through OKX’s DEX. In theory, fully decentralized platforms are exempt from MiCA regulations. However, European regulators might make an exception for OKX, pointing to the full integration of its Web3 service into its main website, with a clearly named operator: OKX Singapore.

4. Ripple Obtains a License in Dubai and Aims to Revolutionize Crypto Payments There: Ripple, the blockchain-based payment company, has just received full regulatory approval from the Dubai Financial Services Authority (DFSA). This authorization allows it to officially operate in the Dubai International Financial Centre (DIFC), a special economic zone in the UAE with its own tax and regulatory policies. With this new license, Ripple takes a major step in its international expansion, strengthening its position in a strategic region while benefiting from a regulatory framework favorable to blockchain innovation.

5. Massive Corruption in the European Parliament? A Wave of Raids Across Europe: Belgian authorities conducted a series of raids in multiple countries on Thursday, March 13, 2025, uncovering suspicious practices within the European Parliament benefiting Huawei. Investigations revealed that, since 2021, corruption had been "regularly and discreetly practiced," taking various forms such as "payments for political positions" and "extravagant gifts," including fine dining, travel, and frequent invitations to football matches. Investigators suspect Huawei of using illegal means to influence political decisions in its favor. Documents and objects seized during the raids are currently undergoing thorough analysis to determine the extent of these practices.

6. Telegram Founder Leaves France for Dubai; TON Surges 18%: Under conditional release since his arrest last August, Pavel Durov, the founder of Telegram, was allowed to leave France on Saturday. Following this announcement, the price of The Open Network (TON) skyrocketed. This week, the investigating judge overseeing the case eased his judicial control, granting him permission to leave France for "several weeks" to travel to Dubai, according to a source close to the matter.

7. D. Trump has set an ambitious timeline for crypto regulation, urging lawmakers to deliver stablecoin legislation before the August recess. At a high-profile summit featuring Coinbase CEO Brian Armstrong and Kraken co-CEO Arjun Sethi, discussions covered Bitcoin mining, federal crypto reserves, and the US’s role in the evolving financial system. Chainlink co-founder Sergey Nazarov highlighted the focus on maintaining dollar dominance. Trump also pledged to end "Operation Choke Point 2.0," which crypto firms claim has hindered banking access.

8. Taiwan’s Financial Supervisory Commission (FSC) has mandated new cold wallet storage requirements for crypto custodians, effective immediately. Custodians must store at least 70% of customer assets in cold wallets if their systems meet international security standards like ISO 27001 or SOC2 Type 2; otherwise, the requirement increases to 80%. The move aims to enhance security amid growing cyber threats. However, after North Korea’s recent hack of Bybit’s cold wallet, regulators are reassessing the effectiveness of such measures.

9. The Cayman Islands has announced stricter crypto regulations, requiring custody and trading firms to obtain licenses under the updated Virtual Asset (Service Providers) (Amendment) Regulations. The law takes effect on April 1, 2025, with existing firms required to apply by June 29, 2025. Applicants must disclose digital asset holdings, security measures, expected revenues, and infrastructure locations. While the Cayman Islands has been a crypto-friendly hub, this move signals a push for greater oversight, aligning with global transparency and security efforts.

10. The U.S. Senate Banking Committee voted 18-6 to advance the GENIUS Act, a bipartisan bill creating a regulatory framework for stablecoins. The bill clarifies when issuers fall under state or federal oversight and has broad political support, though Sen. Elizabeth Warren and others opposed it, citing concerns over financial stability. Lawmakers signaled openness to refining the bill as it moves through Congress. The committee also advanced a debanking bill to limit regulators' use of reputational risk in supervision.

Traditional Finance:

1. Bitcoin: BBVA Becomes the First European Bank to Offer Buying, Selling, and Custody Services to Clients: BBVA, Spain’s second-largest bank and one of the world’s top 50 banks, has just received legal approval to offer its clients Bitcoin and Ethereum trading and custody services. The launch of this service in Europe is groundbreaking. Before launching a MiCA-compliant custodial service within the EU, the bank had already tested similar services in Switzerland since 2021 and in Turkey since 2023.

2. U.S. Recession Risk Rises to 40% According to JPMorgan: Fears of a U.S. recession are intensifying as JPMorgan raises its recession probability from 30% to 40%. This revision is primarily due to "extreme" economic policies and a climate of financial market uncertainty. JPMorgan economists attribute this increased recession risk to protectionist policies, including tariffs on imports from Canada, Mexico, and China. These measures have led to heightened trade tensions and retaliatory actions, further exacerbating economic uncertainty.

3. XRP Spot ETF: A $1.58 Trillion Giant Joins the Race: Traditional finance giant Franklin Templeton has unveiled its ambitions for XRP by filing for an ETF with the Securities and Exchange Commission (SEC). With $1.58 trillion in assets under management as of January 31, Franklin Templeton is the 15th largest fund manager in the world. The company already offers the EZBC Bitcoin (BTC) ETF, with $448 million in assets, and the EZET Ethereum (ETH) ETF, with $23.27 million.

4. Stablecoins: The Banking Sector Fears Losing Market Share: As a U.S. bill on stablecoins is under review, banking industry advocates have expressed concerns.

5. A New ETF Allows Investment in Companies Holding Large Bitcoin Reserves: Digital asset manager Bitwise has launched a new ETF, the Bitcoin Standard Corporations ETF, enabling investors to gain exposure to companies holding significant Bitcoin reserves (+1,000 BTC). With over 70 companies meeting this criterion, this ETF presents a new opportunity for investors seeking to capitalize on institutional Bitcoin adoption.

6. Rex Shares and Osprey Funds have filed to list the first ETF tracking MOVE, the native token of the Movement network, following the project's public mainnet beta launch. The ETF would allocate 80% of its assets to MOVE tokens or related derivatives, making it a rare bid for SEC approval of a newer altcoin. Rex Shares and Osprey have previously sought ETFs for BONK, DOGE, and TRUMP. Despite using Ethereum for security, Movement is not a Layer 2 but more of a fast finality rollup or sidechain. The SEC, now under Acting Chair Mark T. Uyeda, has yet to approve ETFs beyond bitcoin and ether.

7. Cboe BZX Exchange has filed a 19b-4 form with the SEC to enable staking in Fidelity's spot Ethereum ETF (FETH), aiming to boost investor returns. While issuers initially included staking in filings, they later removed it at the SEC’s request under former Chair Gary Gensler. If approved, Fidelity could stake all or part of its ETH holdings through staking providers, with rewards treated as income. Franklin Templeton, Grayscale, and 21Shares are also seeking to add staking to their Ethereum ETFs under the more pro-crypto administration.

8. BlackRock's BUIDL surpassed $1 billion in AUM, becoming the first tokenized fund to reach this milestone. Launched in 2024, BUIDL is pegged to the U.S. dollar and earns yields from short-term U.S. Treasuries. It now holds about 25% of the $4.2 billion tokenized Treasury market. BUIDL has outpaced rivals like BENJI and USYC. Initially on Ethereum, it expanded to Aptos, Arbitrum, Avalanche, Optimism, and Polygon via Wormhole.

Tech News:

1. Ondo Surpasses $1 Billion TVL – The Leader to Watch in RWAs?
   Ondo Finance continues to establish itself as a leader in Real World Assets (RWA) by surpassing $1 billion in total value locked (TVL). Despite a correction in its token price, the project is accelerating its expansion and preparing to launch Ondo Global Markets, a platform that could revolutionize access to traditional financial assets. Unlike the original cypherpunk ethos, Ondo is not trying to reinvent the traditional financial system but rather improve it by making it accessible on the blockchain. This ambitious project, Ondo Global Markets, is expected to allow trading of over 1,000 U.S. securities (stocks, ETFs, bonds...) directly on the blockchain at any time. Although no release date has been announced, Ondo’s official site states that the launch is planned "for later in 2025."

2. Solana Blockchain Revenues Plummet – A No-Return Situation?
   Once fueled by memecoin hype, the Solana blockchain is facing a tough period. For over three consecutive weeks, Solana’s blockchain revenues have remained low—less than $500,000 per week. Between March 3 and March 10, revenues dropped further, reaching only $58,000 in a week. Despite this decline in revenues and trading volumes, on-chain data suggests resilience. Solana’s TVL remains above its 2024 average, and stablecoin supply on the network has surged to $11.5 billion. Additionally, over the past 30 days, capital inflows into Solana have exceeded outflows, with a net gain of nearly $132 million.

3. Starknet on Bitcoin: A Layer 2 on the Most Decentralized Blockchain Thanks to BitVM
   Starknet could soon operate on Bitcoin via BitVM, opening a new era for Bitcoin’s scalability. However, crucial verifications must be completed before deployment. This innovation introduces a new computational paradigm that allows "Turing Complete" contracts on Bitcoin, which was previously impossible. It could enable rollups similar to those on Ethereum but on Bitcoin. This week, Starknet announced its move towards Bitcoin through two bridges: one managed by a federation (likely similar to Liquid) and another, more secure, enabled by BitVM.

4. Ethereum Transaction Fees Drop 95% in the Last 12 Months
   With the Dencun update deployed on Ethereum in March 2024, transaction fees have dropped by 95%, with an average swap now costing just $0.39 compared to $86 previously. However, ETH's price has declined by 53% over the past year. Ethereum Layer 2 users now enjoy a competitive network compared to rival blockchains, albeit at the expense of Layer 1 activity. Ethereum is gearing up for its next major upgrade, Pectra, aimed at doubling data availability for Layer 2s and improving network efficiency.

5. Coinbase Reshapes Crypto Trading in the U.S.
   Coinbase, one of the leading cryptocurrency exchanges, has announced the upcoming launch of a 24/7 Bitcoin and Ethereum futures trading service. This marks a major shift for U.S. investors, who were previously limited by fixed market hours and expiring contracts. With this launch, Coinbase is not just meeting demand but reshaping the U.S. crypto trading landscape, positioning itself to compete with international platforms like Binance and Bybit.

6. Ethereum's Holesky testnet achieved finality nearly two weeks after the Pectra upgrade, overcoming a client-software configuration bug that had prevented finality since Feb. 24. The achievement comes as Ethereum developers held off on deciding when Pectra would go live on the mainnet blockchain, thus delaying the big upgrade.

7. Avalanche is rolling out the "Octane" upgrade, designed to significantly lower gas fees on its C-Chain and dynamically adjust gas limits based on validator preferences. This upgrade addresses longstanding spikes in fees caused by Avalanche's previous static gas model, which often struggled during network surges. Validators now have direct input, adjusting gas targets to suit network conditions, ensuring smoother, cheaper, and more predictable transactions.

8. Solana's SIMD-228 proposal to reduce SOL inflation failed, receiving 61.4% support—short of the 66.67% required. The proposal aimed to replace the fixed inflation schedule with a dynamic model, potentially lowering inflation below 1% annually. Supporters saw it as a way to increase token scarcity, while critics worried about its impact on smaller stakers and validators. A record 74% of staked SOL participated, making it the largest crypto governance vote ever. SOL emissions remain unchanged at 4.6% annually, decreasing 15% per year until stabilizing at 1.5%.

Adoption:

1. The "French MicroStrategy" Raises 600 Bitcoins
   In the publicly traded company Blockchain Group (listed on Euronext), Alexandre Laizet is in charge of Bitcoin acquisitions. Only a handful of companies globally operate as Bitcoin Treasury Companies, and Blockchain Group is the only one to have raised funds directly in Bitcoin. The company follows a Bitcoin Treasury strategy similar to Michael Saylor’s former MicroStrategy (now Strategy), accumulating Bitcoin as a treasury reserve.

2. Utah Passes Blockchain Law but Drops Strategic Bitcoin Reserve
   Utah has passed the "Blockchain and Digital Innovation Amendments" (HB230), securing new rights for cryptocurrency users. However, the provision to create a strategic Bitcoin reserve was removed from the final bill. This law fosters innovation around Bitcoin while strengthening user rights and providing greater security for businesses in Utah’s blockchain sector.

3. 25% of BTC Controlled by the U.S. & $81 Trillion in Wealth – Michael Saylor’s Grand Plan
   At the Crypto Summit at the White House, Michael Saylor unveiled ambitious plans for a U.S. Bitcoin Reserve, alongside calls for digital asset deregulation. He suggested that the U.S. should acquire between 5% and 25% of the Bitcoin network through daily purchases until 2035, by which time 99% of BTC will have been issued. Without detailing his calculations, Saylor estimated that such a reserve could generate between $16 trillion and $81 trillion for the U.S. Treasury by 2045, potentially offsetting national debt. He also projected that by then, the reserve could produce $10 trillion in annual revenue. Alongside these optimistic forecasts, Saylor provided recommendations to regulatory authorities to promote digital asset adoption.

4. Strategy (formerly MicroStrategy) is looking to raise up to $21 billion through STRK perpetual strike preferred stock offerings to acquire more bitcoin, per an SEC filing. The STRK stock carries an 8% annual dividend and a $100 per share liquidation preference. Holders can convert shares into class A stock under certain conditions, while Strategy retains repurchase rights under specific triggers. This move aligns with its broader "21/21 plan" to raise $42 billion for bitcoin acquisitions. Strategy currently holds 499,096 BTC, valued at about $40 billion, acquired at an average price of $66,357 per bitcoin.

5. StarkWare has launched a "Strategic Bitcoin Reserve," committing to holding a growing portion of its treasury in BTC. CEO Eli Ben-Sasson emphasized that blockchain companies should lead by example in holding bitcoin but did not disclose specific holdings. Valued at $8 billion, StarkWare is the core contributor to Ethereum Layer 2 Starknet but has increasingly focused on Bitcoin research. Starknet aims to be among the first Layer 2s to settle on both Bitcoin and Ethereum, with StarkWare supporting scaling solutions like OP_CAT for trustless BTC-to-Starknet transfers.

Partnerships / Funding:

1. Kraken Aims for IPO in 2026
   As investors seek new opportunities in the growing cryptocurrency market, Kraken—one of the sector’s major players—is preparing for a public listing in Q1 2026. This announcement follows years of speculation and anticipation. Since 2021, Kraken has expressed its desire to go public alongside Coinbase, but regulatory uncertainties delayed its plans. Now, under a more favorable U.S. administration, the company appears ready to take the leap.

2. $2 Billion Investment: Binance Secures the Largest Funding in Crypto History
   Binance has reached a historic milestone with a $2 billion investment from MGX, an investment firm based in Abu Dhabi. This transaction not only marks the first institutional investment in Binance but also the largest single investment ever made in a crypto company. MGX, which specializes in emerging technologies such as artificial intelligence, data centers, and clean energy, is making its first foray into the cryptocurrency sector with this investment.

3. Sony’s Soneium blockchain is partnering with LINE to bring its mini-apps onchain, starting with four games in the coming months. The collaboration will offer community-building, marketing, and IP support to LINE’s mini-app developers while enhancing user experience. LINE, a major messaging platform in Japan, Taiwan, and Thailand, has been expanding into web3. Soneium’s Ethereum Layer 2 mainnet launched in January, alongside LINE’s decentralized app portal.

4. MoonPay has acquired stablecoin infrastructure firm Iron in a deal worth at least $100 million, expanding its enterprise-grade financial services. The acquisition enables businesses using Iron’s API through MoonPay to process cross-border stablecoin payments, manage multi-currency treasuries, and access yield-bearing assets like U.S. Treasury bills. This follows MoonPay’s $175 million purchase of Solana-based payments firm Helio in January, aimed at streamlining BTC, ETH, and SOL settlements.

5. The Trump family-backed DeFi project, World Liberty Financial (WLF), has raised $550 million by selling 25% of its 100 billion WLFI token supply. The project initially sold 20 billion WLFI in January at $0.015 per token, raising $300 million. A second sale of 5 billion tokens at $0.05 each brought in an additional $250 million. With private rounds included, WLF has now raised $590 million. Co-founder Zak Folkman stated that 63% of the total supply will be sold publicly, suggesting future token sales.

Disclaimer: The information disclosed here does not constitute an investment advice ; it is for informational purposes only and does not constitute investment advice. You should do your own research while investing in crypto and only invest money you are ready to lose.