✨ A Happy New Crypto Year

Happy Monday dear subscribers! The whole team wishes you an excellent 2025! May the cryptosphere be with you, and may profits pile up like never before!

In today's bulletin, we are covering:

• Surfing the Market, with analysis about the Big Caps Index and SOL

• Don't miss the News about Bitcoin and A New Crypto Year

• POWERLOOM is under the spotlight.

• A short article about Tokens Launch Timing

The Big Caps Index started the year with a strong reversal, breaching up the local downtrend resistance and recovering the $1,000 range

SOL tested the previous resistance at $185 as new support, building a new higher low. Bounced from there also breaching the main downtrend resistance. Breakout which is now consolidating. Absolutely primed setup:

Bitcoin's Record-Breaking Year: $19 Trillion in Transactions and Unprecedented Hashrate Milestones

The Bitcoin network settled over $19 trillion in transactions in 2024, more than doubling 2023’s $8.7 trillion. This resurgence followed two years of decline and was fueled by key events, including a Bitcoin ETF launch, the April halving, and Bitcoin hitting a new all-time high of $108,000.

• Bitcoin demonstrated its strength as both a store of value and a medium of exchange in 2024, evidenced by the surge in transaction volume.

• The hashrate record and dominance of US-based mining pools signify a shifting landscape in Bitcoin mining.

• Bitcoin network settled $19 trillion in 2024, reversing declines from 2022 and 2023.

• Major factors driving 2024 success: Bitcoin ETF approval, halving event, and a new all-time price high of $108,000.

• Bitcoin hashrate reached 1,000 EH/s in January 2025, the highest ever.

Additionally, the Bitcoin hashrate hit a record 1,000 EH/s in January 2025, driven in part by US-based mining pools, which accounted for over 40% of the global hashrate in 2024, despite China's continued dominance.

Crypto Legislation in 2025: Challenges, Momentum, and Key Priorities

The U.S. Congress is poised to tackle crypto legislation in 2025, with a more pro-crypto stance under new leadership. Key legislative efforts include stablecoin regulation, the FIT21 market structure bill, and a renewed push for tax clarity regarding staking rewards.

• Congress is increasingly pro-crypto, with significant attention on stablecoins and market structure reforms like FIT21.

• The “Tax Super Bowl” in 2025 may shape crypto tax policies, including taxing staking rewards only at the time of sale.

• Federal-level discussions include a potential strategic Bitcoin reserve, though it faces bipartisan and legislative hurdles.

• Senator Warren’s role as ranking Democrat on the Senate Banking Committee could pose obstacles for crypto-friendly legislation.

• Stablecoin regulation remains a priority, with possible revisions to address federal vs. state authority disputes.

• FIT21 aims to define decentralization and grant more regulatory power to the Commodity Futures Trading Commission (CFTC).

• Renewed focus on crypto taxation policies, especially regarding staking rewards, amid broader tax reform debates.

• Legislative progress may face resistance due to competing priorities and influential anti-crypto lawmakers like Senator Warren.

However, challenges like competing legislative priorities, potential resistance from Senator Warren, and unresolved issues of federal versus state authority could impact progress.

POWERLOOM

The Origins

Powerloom is a data layer for on-chain applications founded in 2020, it has been specifically designed for decentralized finance (DeFi), GameFi, and non-fungible tokens (NFTs).

Its decentralized architecture, consensus-based approach, and incentivized ecosystem aim to create a robust and scalable infrastructure for Web3 data applications.

The Operative:

The primary objective is to provide real-time decentralized, secure, and scalable data for on-chain applications in a trustless and permissionless manner.

For that it utilizes a network of over 5,300 independent nodes in a process that would go like this:

1. Nodes collect on-chain and off-chain data from various sources.

2. The collected data is aggregated and processed to create a unified dataset.

3. Generate snapshots as cryptographic proofs of the data at a particular point in time.

4. Snapshots are stored on a decentralized system, such as InterPlanetary File System (IPFS).

5. On-chain applications retrieve snapshots by querying the Powerloom network using a unique identifier.

6. Snapshots are verified and validated by nodes to ensure accuracy and integrity.

7. Nodes are rewarded with tokens for contributing to the network, ensuring decentralization and security.

Summary & Competitors

The project raised $3.1 millions in a founding round with 11 investors lead by Blockchain Capital and Filecoin.

After running a successful incentivized testnet, Powerloom has scheduled its mainnet launch on January 9th 2025.

Projects like The Graph, Chainlink, Ceramic Network, Subquery or Golden share similarities with Powerloom by working in decentralized data management, scalability, and interoperability, and are vying for market share and adoption in the Web3 ecosystem. 

Tokens Launch Timing

With every bull run, new projects are launched as the influx of money creates greater funding opportunities. This leads to the birth of new initiatives or the realization of existing ones that previously lacked sufficient capital to develop. However, the timing of these launches is crucial, here's why.

What is it?

There are two main methods: IDOs and ICOs 👇

• IDOs (Initial Dex Offerings) allow a project to launch a token to raise funds through a decentralized exchange.

• ICOs (Initial Coin Offerings) are the cryptocurrency equivalent of IPOs in traditional stocks.

Another option is IEOs, similar to ICOs but conducted directly on an exchange platform. The key difference between IEOs and ICOs is that an IEO ensures the token will be listed on an exchange, like Binance, whereas ICOs don’t provide that guarantee.

Timing

During a bull run, when everything is rising, a new project generates significant expectations, translating into high demand for its tokens and often resulting in exorbitant returns, sometimes even on the first day of trading 🚀 Many argue that the biggest profits come from participating in these IDOs 💰

However, the timing of a token launch is critical, even within a bull market.

A clear example from the past year is NATIX and PEAQ. When NATIX issued its tokens on Coinlist mid-year, BTC was near its ATH, but the trend was sideways, and altcoins were in freefall 📉 This led to a good first day but a subsequent sharp drop of over 30%.

Not only did it fail to deliver exceptional performance in its initial weeks, but it also lost value, this despite being a solid project with incredible long-term prospects in the DePIN world.

Conversely, PEAQ, one of the most anticipated launches of 2024, delayed its planned June issuance until November. This allowed it to capitalize on a hot crypto market with BTC approaching 100K 🔥

In this case, the token achieved a 6x return on its first day and has since reached 8x, with ambitious projections for both the product and its price 🔝

Conclusion

Launching a great project isn’t always enough, the timing of its release is key to properly valuing the token and generating demand proportional to its importance. This is similar to what happens on Wall Street, although the stock market operates at a slower pace due to its lower volatility compared to crypto.

In traditional markets, many new stocks debut at high prices and then correct sharply until the market assigns them a fair value. From there, they may recover if the business is solid.

In crypto, not all launches are successful, especially during a bull run when many low-value projects are rushed to market solely to raise money for their creators, often with nothing substantial behind them. This typically results in losses for investors.

For this reason, conducting thorough research on a project and the industry it targets is crucial to understanding where you’re placing your money 🧐

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