The usdt meaningcryptocurrency market capitalization soared to $3.5 trillion on Wednesday, adding $152 billion in just 24 hours
This 4.8% surge represents the largest single-day crypto market growth in 35 days, dating back to December 11.
Bitcoin price climbed as high as $100,600, marking a 3.3% daily increase.
While BTC gained 3%, the broader crypto sector outperformed with 5% growth, indicating stronger investor interest in altcoins.
Bitcoin Market Watch: BTC Breaks $100K Barrier Amid Lingering Volatility
Bitcoin price increased 3.6% on Wednesday, reaching $100,681 on Binance.
Despite the price increase, BTC on-chain transactions dropped 37% from last week's peak, signaling potential market turbulence ahead.
Bitcoin ETFs Performance, January 15 2025 | Source: SosoValue
Bitcoin ETFs recorded over $209 million in outflows on Wednesday, tempering the bullish momentum.
Altcoin Market Highlights: Stellar (XLM) Tracks XRP's Upward Trajectory
The altcoin market outperformed Bitcoin on Wednesday with an 8.61% gain compared to BTC's 3.6% increase, as ETF outflows and reduced retail participation limited Bitcoin's growth.
Solana Price jumps 9% as ecosystem activity accelerates
Solana (SOL) posted an impressive 9% gain, reaching $205. The surge appears driven by robust on-chain activity and increasing integration of AI-focused projects within its ecosystem.
Stellar (XLM) follows XRP's lead amid growing market optimism
Stellar (XLM) and Ripple (XRP) continued their upward movement, with XLM gaining 14% and XRP rising 12% on Wednesday. The correlation between these assets stems from their shared origins, as both were co-founded by Jed McCaleb.
Both projects focus on transforming cross-border payments and financial inclusion through decentralized networks, creating natural price correlation.
Market analysts suggest XLM could target $0.60 in the near term, while XRP may challenge the $3 level if current momentum persists.
Polygon (POL) Gains 5% as Layer-2 Adoption Expands
Polygon (MATIC) recorded a 5% gain, trading at $0.48 as demand for scalable solutions grows. With strong fundamentals supporting its position, MATIC could test the $0.50 resistance level before encountering significant selling pressure.
Market Spotlight: Layer-2 Solutions Gain Traction Amid Network Congestion
With increasing market activity, Ethereum and other Layer-1 networks have experienced congestion, driving interest toward Layer-2 scaling solutions that offer cost-efficient alternatives.
Data shows the Layer-2 sector's market capitalization grew 4.1% on Wednesday to $29.1 billion, with $2.7 billion in trading volume underscoring sustained demand.
Notable performers included Mode (+10.1%), Arbitrum (+5.6%), and Optimism (+4.8%), while Mantle showed more modest growth at 2.2%.
The Layer-2 ecosystem continues to demonstrate its value in managing blockchain congestion during periods of high volatility, positioning these protocols for continued adoption.
Industry Developments:
VanEck Files for Onchain Economy ETF with SEC
Investment firm VanEck has submitted an application to the SEC for an Onchain Economy ETF, which would invest in companies operating within the cryptocurrency sector, including developers, exchanges, and infrastructure providers.
JPMorgan CEO Reiterates Bitcoin Criticism
Jamie Dimon, CEO of JPMorgan Chase, repeated his skepticism toward Bitcoin while acknowledging blockchain technology's potential. The executive highlighted JPMorgan's existing use of blockchain for data and money transfers.
New York AG Reports $2M Crypto Job Scam
The New York Attorney General's office disclosed a cryptocurrency scam that stole over $2 million through fake job offers. Victims were contacted via text messages and instructed to maintain balances in crypto accounts that were ultimately drained.
BitMEX Fined $100M for Compliance Failures
Cryptocurrency exchange BitMEX received a $100 million penalty for anti-money laundering violations between 2015 and 2020. The company has stated it has since strengthened its compliance measures.
