Here’s How the Crypto Market Performed in January, According to Binance Research

The analysis arm of the world’s largest crypto alternate, Binance, has launched a report highlighting insights for the digital asset market in January 2025. It outlined how the crypto market reacted to a number of components, together with United States coverage narratives, within the first few weeks of the 12 months.

In keeping with Binance Analysis, early January saw the crypto market cap get well from a downturn skilled in December 2024, peaking at $3.76 trillion. This restoration was partly fueled by the change in U.S. administration and potential pro-crypto laws.

ETF Filings Rise in Professional-Crypto U.S. Administration

After his inauguration, U.S. President Donald Trump signed an government order that banned the creation of a U.S. Central Financial institution Digital Foreign money (CBDC) and explored the institution of a nationwide crypto reserve. These components drove constructive momentum out there till late January, when the emergence of a man-made intelligence (AI) mannequin, DeepSeek, shook the inventory and crypto markets alike.

DeepSeek turned probably the most downloaded AI app, overthrowing OpenAI’s ChatGPT. This growth triggered heightened volatility that has rolled into February, fueled even additional by considerations about U.S. tariff insurance policies.

Whereas the market struggles to get well, there was a brand new wave of crypto exchange-traded fund (ETF) filings with the Securities and Alternate Fee (SEC), particularly because the departure of the previous head, Gary Gensler. Binance Analysis revealed that there are at the moment 47 lively ETF filings in the US, spanning 16 crypto asset classes, together with meme cash.

Meme Cash and AI Narratives Dominate

Talking of meme cash, Binance Analysis found that the emergence of token launchpads fueled a meme coin mania, resulting in the creation of greater than 37 million belongings. Analysts predict that no less than 100 million cryptocurrencies shall be in circulation by the tip of 2025.

Sadly, this large rise within the variety of cryptocurrencies has divided capital, making it harder for tokens to maintain costs or attain excessive valuations. The inflow of latest tokens has additionally fueled hypothesis, lowered consideration spans, and discouraged long-term holding. The highest 100 tokens nonetheless account for 98% of the full crypto market cap. Regardless, some narratives out there, just like the decentralized finance AI (DeFAI) sector, stay sturdy and are attracting extra capital.

In the meantime, Solana’s decentralized alternate (DEX) volumes have surpassed these of Ethereum month-to-month since October 2024, with the community main within the meme coin and AI agent narratives. Final month, the Solana-to-Ethereum DEX quantity ratio reached its all-time excessive of over 300%.