Binance Research, the research arm of Binance, released its January 2025 crypto market performance report, which covered how the market reacted to variables, including US politics, in the first weeks of the year.
The crypto market cap rebounded in early January after a December 2024 decline, reaching $3.76 trillion, driven in part by changes in the US administration and new pro-crypto trends.
After the inauguration, US President Donald Trump signed an executive order banning the development of a US central bank digital currency (CBDC) and explored the possibility of creating a national cryptocurrency reserve.
This boosted market momentum until late in the month, when the launch of the DeepSeek AI model caused strong volatility that affected the stock market and cryptocurrencies.
DeepSeek has become the most downloaded app, overtaking OpenAI’s ChatGPT, fueling volatility that extended into February amid concerns over U.S. trade policy.
Meanwhile, the U.S. Securities and Exchange Commission (SEC) has seen a fresh wave of cryptocurrency-related ETF applications, especially after the departure of former chair Gary Gensler.
According to Binance Research, there are currently 47 active crypto ETF applications in the U.S., covering 16 categories of cryptocurrencies, including meme coins.
On the other hand, the proliferation of cryptocurrency launch platforms and their facilitation has led to a boom in meme coins, with more than 37 million tokens created, with 100 million expected to be in circulation by the end of 2025.
But this rapid growth has led to capital being distributed, making it difficult for most cryptocurrencies to maintain their value.
However, the top 100 coins still account for 98% of the total market cap, while some trends, such as the decentralized financial artificial intelligence (DeFAI) sector, continue to attract more investment.
On the other hand, trading volumes on Solana-based DEXs have outpaced Ethereum-based DEXs every month since October 2024, driven by the momentum of meme coins and AI agents.
In January, the ratio of trading volume between Solana and Ethereum reached an all-time high, exceeding 300%.
