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Ripple’s US dollar-backed stablecoin, RLUSD, has surged to a new all-time high, fueled by a series of high-profile partnerships and regulatory milestones that are accelerating its adoption among institutional investors.

Yet, RLUSD appears to be the only token benefiting from Ripple’s advancements and expansion, as XRP bears the weight of market forces.

RLUSD Market Cap Surges Past $1.38 Billion as Ripple Expands Institutional Adoption

DefiLlama data shows that the RLUSD stablecoin’s market capitalization now exceeds $1.38 billion. This makes it one of the fastest-growing digital assets, with $125 million added since late November 2025.

RLUSD Market Cap. Source: DefiLlama

The latest driver of RLUSD growth comes from Ripple’s newly announced partnership with LMAX Group. LMAX Group is a leading global cross-asset marketplace for foreign exchange and digital assets.

As part of a multi-year collaboration, RLUSD will be integrated as a core collateral asset across LMAX’s institutional trading infrastructure.

This integration enables banks, brokers, and buy-side institutions to leverage RLUSD for cross-collateralization and margin efficiency in spot crypto, perpetual futures, and CFD trading.

“Partnering with a leader like Ripple is a milestone for LMAX,” said David Mercer, CEO of LMAX Group. “With greater US and global regulatory clarity, fiat-backed stablecoins will be a key catalyst in driving the convergence of TradFi and digital assets, and RLUSD is positioned at the forefront.”

The LMAX partnership is complemented by a $150 million financing commitment from Ripple. This will support the exchange’s long-term cross-asset growth strategy.

Institutional clients will benefit from enhanced liquidity, secure custody via segregated wallets, and 24/7 access to a cross-asset marketplace. Notably, this feature is not typically available with traditional fiat currencies.

“LMAX has long been a leader in providing the transparent, regulated infrastructure that institutional players require. This partnership will accelerate the utilization of RLUSD—already a top-five USD-backed stablecoin—within one of the largest and most sophisticated trading environments,” added Jack McDonald, SVP of Stablecoins at Ripple.

RLUSD’s growth trajectory is further bolstered by Interactive Brokers’ announcement that eligible clients will soon be able to fund accounts using the stablecoin. With this, it expands its footprint into mainstream brokerage services.

Other notable institutional adopters include DBS, Franklin Templeton, and SBI Holdings. This demonstrates growing confidence in RLUSD as a trusted settlement and collateral asset.

Ethereum Dominates RLUSD Supply, Limiting XRP Utility

Despite these successes, the majority of RLUSD’s supply (nearly 76%) resides on Ethereum rather than Ripple’s native XRP Ledger (XRPL).

Ripple’s RLUSD on Ethereum vs. XRPL. Source: DefiLlama

Therefore, while Ethereum integration unlocks significant DeFi liquidity, it limits XRP’s direct utility. This is because RLUSD transactions on Ethereum do not contribute to XRP burns or holder revenue.

This state of affairs has sparked debate within the XRP and broader crypto communities. Concern comes amid expectations that Ripple’s innovations would directly bolster XRP’s demand.

Notwithstanding, regulatory approvals continue to support RLUSD’s institutional credibility. The Abu Dhabi Financial Services Regulatory Authority (FSRA) greenlighted RLUSD for regulated institutional use.

Meanwhile, preliminary European EMI approval in Luxembourg opens pathways for EU-wide operations. Ripple now stands out as one of the most institutionally compliant crypto firms globally, with 75+ regulatory licenses.

With market capitalization topping $1.38 billion and a growing list of high-profile partnerships, RLUSD is positioned for further expansion.

Its integration into LMAX Group’s trading infrastructure and recognition by global regulators mark a significant step toward mainstream stablecoin adoption, bridging the gap between crypto markets and TradFi ecosystems.

Ripple (XRP) Price Performance. Source: BeInCrypto

As of this writing, XRP was trading for $2.08, down by over 1% in the last 24 hours.

The Russell 2000 index reached a new all-time high in January. This breakout not only reflects the strength of US small-cap stocks but also carries important implications for the cryptocurrency market, especially altcoins.

Meanwhile, other data points indicate improving sentiment among altcoin investors. Market participants are increasingly expecting a recovery during this quarter.

Strong Correlation Between The Russell 2000 And The Crypto Market

The Russell 2000 tracks around 2,000 small-cap US companies. These stocks represent higher-risk assets within traditional financial markets.

When the index leads the market higher, it often signals that capital is rotating toward riskier assets. Investors tend to accept more risk in pursuit of higher returns.

“Russell 2000 hits a new all-time high after the US open. The index is up 7% in the first 15 days of 2026 and has added nearly $220 billion in market value. This shows a clear rotation of capital toward higher-risk assets,” Bull Theory reported.

Hedgeye analysts added that the Russell 2000 has outperformed the S&P 500 for nine consecutive days. This marks the longest such streak since 2017.

Crypto Market Capitalization And The Russell 2000 Index. Source: TradingView

The chart comparing crypto market capitalization with the Russell 2000 highlights a strong alignment over the past two years. Local highs and lows in the index have closely matched peaks and troughs in the crypto market’s total valuation.

As a result, the index reaching a new high raises hopes that the crypto market could also set a new high soon, as investors become more open to risk.

“This is bullish for altcoins,” investor Ash Crypto commented.

Other analysts have relied on this signal to forecast altcoin gains ranging from 20% to 5x.

Altcoin Buy/Sell (Long/Short) Ratios Remain Elevated in January

At the same time, most altcoins currently show Buy/Sell (Long/Short) ratios above 1. Data analytics platform Alphractal views this as a sign that long positions are dominating the market.

Rank vs Long/Short Ratio. Source: Alphractal

The chart shows that higher-ranked altcoins, which typically have smaller market capitalizations, tend to exhibit even higher ratios. This pattern suggests that traders are taking on more risk, reflecting growing confidence in an altcoin recovery.

“A broader pattern emerges: as market cap decreases, long bias increases. This setup often precedes volatility and long-side pressure,” Alphractal noted.

From a psychological perspective, many altcoins have already declined by 80%–90%. Losses of this magnitude reduce the incentive for underwater holders to sell, leading them to continue holding. Meanwhile, well-capitalized investors often view these levels as attractive buying opportunities.

However, even if an altcoin season emerges, not every token is likely to rally. Analyst CW cited Binance altcoin netflow data from CryptoQuant and warned that while some altcoins are being heavily accumulated, others may face selling pressure.

Altcoins that retain holder confidence and continue to leave exchanges tend to have stronger upside potential. In contrast, tokens that holders keep sending to exchanges for liquidity may struggle to perform as well.

According to Chainalysis, Bitcoin (BTC) has emerged as an “element of resistance” in Iran amid deepening unrest, with the overall crypto ecosystem surging to over $7.78 billion in 2025.

With the national currency under pressure and protests continuing across the country, cryptocurrencies have become a vital alternative for many Iranians, as evidenced by rising usage.

Iranians Increase Bitcoin Transfers as Economic Crisis Deepens

BeInCrypto reported that since late December 2025, mass protests began sweeping Iran. The demonstrations erupted due to rising inflation and the sharp devaluation of the local currency against the dollar.

The US-based Human Rights Activists News Agency (HRANA) estimates that more than 2,500 people have been killed. The authorities have also shut down internet access.

Amid this unrest, Chainalysis observed a surge in crypto activity, with a higher average daily dollar amount transacted and more transfers to personal wallets.

Large withdrawals under $10,000 recorded the strongest growth, with the average dollar value withdrawn rising 236% and the number of transfers increasing 262%. Medium withdrawals under $1,000 climbed 228% in value and 123% in transfers.

Very large withdrawals under $100,000 also rose, with dollar amounts up 32% and transfers up 55%. Even small withdrawals under $100 increased, with average value up 111% and transfers up 78%. Furthermore, withdrawals from Iranian exchanges to unattributed personal Bitcoin wallets rose markedly.

“This behavior represents a rational response to the collapse of the Iranian rial, which has lost nearly all of its value, rendering it effectively worthless against major currencies like the euro,” the report read.

Chainalysis stressed that Bitcoin is serving a broader function during the crisis in Iran than just protecting value. The firm observed that for many Iranians, cryptocurrency has become an “element of resistance.”

Unlike conventional assets, which can be illiquid and vulnerable to state oversight, Bitcoin’s self-custody and resistance to censorship give individuals greater financial mobility.

This flexibility is especially critical in situations where people may need to leave the country or rely on financial systems beyond government control.

“This pattern of increased BTC withdrawals during times of heightened instability reflects a global trend we’ve observed in other regions experiencing war, economic turmoil, or government crackdowns,” Chainalysis wrote.

Iran’s Crypto Ecosystem Reaches $7.78 Billion in 2025

The firm added that Iran’s crypto market grew sharply in 2025 compared with the year before, with the ecosystem exceeding $7.78 billion. Drawing on past patterns, Chainalysis said that crypto activity in the country surges during periods marked by major internal or geopolitical developments.

Notable jumps occurred during the Kerman bombings in January 2024, missile strikes against Israel in October 2024, and the 12-day war in June 2025, which included attacks on the nation’s largest crypto exchange and leading bank.

Iran’s Rising Crypto Activity Amid Major Events. Source: Chainalysis

The Islamic Revolutionary Guard Corps (IRGC) has become a dominant force in Iran’s cryptocurrency sector. IRGC-linked on-chain activity represented roughly half of the total crypto value received in Iran during Q4 2025.

The Chainalysis report estimates IRGC-linked wallets received more than $3 billion in 2025, up from over $2 billion the prior year. The group has increasingly relied on digital assets to bypass sanctions and support its regional financial networks. The team added that,

“We expect this figure will increase as more IRGC-affiliated wallets are publicly disclosed, and larger parts of their laundering network is exposed.”

Thus, it’s clear that cryptocurrency adoption in Iran has a dual nature. State-linked actors have leveraged digital assets to circumvent international sanctions.

At the same time, for ordinary citizens, it has become a way to protect savings from hyperinflation and the risk of asset seizure. Chainalysis suggested that cryptocurrencies are likely to remain a key tool for Iranians seeking greater financial autonomy.

BitMine’s annual shareholder meeting in Las Vegas was billed as a routine governance event, with votes scheduled on board elections, executive compensation, and an increase in authorized shares.

Instead, the session became a strategic coming-out moment, reframing the company from a simple Ethereum staking proxy into something far more ambitious.

Distribution and Retail Onboarding Now Sit at the Core of BitMine’s ETH Strategy

At the heart of that shift is BitMine’s progress toward its long-stated goal of controlling 5% of Ethereum’s total supply.

According to commentary shared around the meeting, the company already controls roughly 75% of the ETH required to reach that threshold. That is, 3.36% of the ETH supply, in the push toward 5%. This is supported by a balance sheet holding close to $1 billion in cash and no debt.

BitMine Ethereum Holdings. Source: strategicethreserve.xyz

Management signaled that the 5% target could now be reached as early as this year. Notably, this alchemy 5% was once framed as a multi-year ambition.

The economics behind that accumulation are no longer theoretical. At current ETH prices, BitMine is already generating an estimated $400 million to $430 million annually from a combination of ETH staking rewards and cash yield.

Once the 5% threshold is reached, those figures rise to roughly $540 million to $580 million in annual pre-tax income, assuming flat prices.

For a company with a relatively small headcount, the result is a cash-generating profile that rivals some of the most profitable firms in the US.

The upside, however, is highly convex. BitMine has modeled scenarios where Ethereum reaches $12,000, a level that would push annual staking income into the $2 billion range.

Crucially for equity holders, that cash flow would be recurring and non-dilutive, giving the company the option to reinvest in:

New platforms

Infrastructure, or

Potential shareholder returns without relying on leverage.

That reinvestment logic helps explain the company’s most controversial move to date. BitMine invested $200 million into Beast Industries, the media company founded by YouTube megastar MrBeast.

The deal initially raised eyebrows. However, management and aligned investors framed it as a distribution strategy rather than a branding exercise.

BitMine Bets on Ethereum and MrBeast to Build the Next Retail Crypto Onramp

In an interview with CNBC ahead of the shareholder meeting, BitMine Chairman Tom Lee said the rationale sits at the intersection of digital platforms and financial infrastructure.

“It’s our view that Ethereum, which is a smart contract platform, is the future of finance, where digitalization of not only dollars but stocks and equities is going to take place,” Lee said. “Over time, that really blurs what is a service versus what’s digital money. And that’s where a collaboration and investment into Beast Industries makes sense.”

Lee emphasized MrBeast’s cultural reach as a strategic asset. He noted that he is “probably the iconic person for Gen Z, Gen Alpha, and arguably millennial.” Indeed, MrBeast’s individual videos draw more monthly viewers than the Super Bowl.

“This isn’t a crypto company buying brand exposure. This is the construction of the largest retail DeFi onramp ever built. 450 million subscribers. 1.4 billion views in 90 days. $473 million revenue in 2025,” wrote analyst Shanaka Anslem.

Beast Industries, Lee added, is planning “a future platform of services which includes digital items and even financial services.” According to the BitMine executive, this creates a natural bridge to Ethereum-based products such as stablecoins and tokenized assets.

For BitMine, the logic is that distribution has become a form of infrastructure. The company is positioning itself for a world where wallets, tokenized assets, and digital ownership are introduced through creator-led platforms with massive global audiences. This is as opposed to relying solely on institutional adoption via ETFs and TradFi rails.

Underlying all of this is a balance sheet built for volatility. With zero debt, high liquidity, and no forced selling risk, BitMine is structured to endure crypto market cycles rather than react to them.

The company’s decision to host an open, live shareholder meeting with real-time Q&A only reinforced that message of confidence and transparency.

Taken together, the meeting suggested that BitMine no longer wants to be valued as a single-factor ETH yield play.

Instead, it is pitching itself as a Berkshire-style holding company for the digital economy. In its model, Ethereum provides the cash-generating base layer and capital allocation that would define the next phase of growth. This is as opposed to relying solely on ETH for staking.

President Trump is reportedly set to announce an emergency power auction that would push tech companies to bankroll new power plants.

This initiative aims to ease rising electricity costs. The plan could impact both the cryptocurrency sector and the broader economy in the lead-up to the 2026 midterms.

What Is Trump’s Emergency Power Auction?

According to Bloomberg, Trump, together with governors from several Northeastern US states, is pushing PJM, the country’s largest electricity grid operator, to hold a power auction. The push from the administration and state leaders is expected to take the form of a non-binding “statement of principles.”

Trump’s National Energy Dominance Council, along with the governors of Pennsylvania, Ohio, Virginia, and several other states, would sign the document.

The initiative would see tech firms bid for 15-year contracts to build new power plants. The contracts could underpin the development of roughly $15 billion worth of new power plants, with technology companies covering the costs regardless of whether they use the electricity produced.

PJM supplies power to more than 67 million people across a region stretching from the Mid-Atlantic to the Midwest. The grid operator already hosts the world’s largest concentration of data centers, particularly in northern Virginia.

National Energy Crisis Drives Emergency Intervention

The proposed emergency auction would mark a significant intervention in US energy markets. President Trump has repeatedly highlighted falling oil and gasoline prices since taking office. Yet, electricity costs have moved in the opposite direction as demand continues to rise.

A growing share of that demand is coming from large data centers. The administration and technology companies argue these are essential for economic expansion and for maintaining the US’s competitive edge in artificial intelligence.

However, they are also contributing to higher household electricity costs. In September 2025, the average US retail electricity price rose 7.4% to a record 18.07 cents per kilowatt-hour. Residential electricity prices have increased even more.

According to the National Energy Assistance Directors Association, prices jumped 10.5% between January and August 2025, one of the largest rises in more than ten years.

“The ongoing electricity crisis we are facing due to AI demand will only get worse without intervention,” The Kobeissi Letter wrote.

The Impact on Bitcoin Miners

Additionally, the electricity competition now favors artificial intelligence operations. Bitcoin miners, who once depended on cheap power for a competitive advantage, are being displaced as AI data centers lock in long-term power contracts.

In Texas, large-scale power requests hit 226 gigawatts in 2025. Notably, AI companies now account for about 73% of new applications, overtaking Bitcoin miners. Utilities prefer AI data centers, as they require continuous, reliable power and pay higher rates.

This economic reality has forced major miners, including Galaxy Digital, CleanSpark, and IREN, to adapt. In November, Bitfarms also announced plans to convert its Washington State mining facility to support HPC/AI workloads.

“We believe that the conversion of just our Washington site to GPU-as-a-Service could potentially produce more net operating income than we have ever generated with Bitcoin mining, providing the Company with a strong cashflow foundation that could fund opex, G&A, and debt service and contribute to capex as we wind down our Bitcoin mining business in 2026 and 2027,” Ben Gagnon, Chief Executive Officer of Bitfarms, noted.

Thus, if electricity costs genuinely fall as a result of Trump’s proposed emergency power auction, Bitcoin miners would benefit in straightforward economic terms. Mining profitability is tied to power prices.

Cheaper electricity lowers operating costs and improves margins. Any increase in generation capacity that eases supply constraints could therefore provide indirect relief to miners, particularly in regions experiencing the highest price pressure.

This could also slow the ongoing shift toward AI-focused infrastructure, allowing some mining operations to remain competitive rather than pivoting to HPC workloads. At the same time, the proposal focuses on long-term investment in new power generation. This means its effects would materialize gradually rather than immediately.

CME Group, the world’s largest derivatives marketplace, plans to list futures contracts for Cardano (ADA), Chainlink (LINK), and Stellar (XLM). Trading is scheduled to begin on February 9, pending regulatory approval.

This move brings regulated crypto derivatives to major altcoins, expanding institutional access. Still, the announcement did not have a major impact on the prices of ADA, LINK, or XLM.

CME Group Expands Crypto Product Suite

CME Group announced the development in an official post on X (formerly Twitter). These new products will be available in both standard and micro contract sizes, targeting institutional clients and retail traders alike.

Standard contracts contain 100,000 ADA, 5,000 LINK, or 250,000 XLM. Meanwhile, micro contracts have 10,000 ADA, 250 LINK, or 12,500 XLM. The micro options provide regulated crypto trading with lower financial commitment, increasing access for smaller traders.

“Our Crypto product suite is growing with new Cardano, Chainlink and Stellar futures. Available in both larger and micro sizes, these contracts will offer the capital efficiency and versatility to expand your strategy,” the team posted.

The addition comes amid growing demand for regulated cryptocurrency investments. In 2025, CME Group reported record crypto derivatives activity. The average daily volume increased 139% to 278,000 contracts, representing $12 billion in notional value.

The launch of Cardano, Chainlink, and Stellar futures adds to CME’s roster of regulated options. It already includes Bitcoin (BTC), Ethereum (ETH), XRP (XRP), and Solana (SOL) futures and options. Notably, the contracts remain subject to Commodity Futures Trading Commission (CFTC) approval, reflecting CME’s regulatory focus.

CME Move Brings Institutional Recognition to ADA, LINK, XLM Despite Muted Prices

Cardano, Chainlink, and Stellar prices remained largely unchanged following CME’s January 15 announcement. This matches previous trends. Even as the derivatives marketplace announced options debut for XRP and Solana, immediate price movement remained subdued.

BeInCrypto Markets data showed that ADA dipped 2.2% over the past day, trading at $0.39 at press time. XLM declined 1.1% to $0.22 at the time of writing.

LINK posted a relatively modest 0.49% drop, trading at $13.7. These declines align with broader market performance, as the total market capitalization fell by nearly 1% over the same period.

Despite this, analysts say the move signals growing institutional-grade recognition of these assets while also expanding accessibility for a broader range of market participants.

“What this means for Stellar: • XLM gains institutional-grade recognition and legitimacy • Regulated futures open the door for hedge funds & asset managers • Stronger liquidity, risk management, and market maturity • Another bridge between TradFi and Stellar’s real-world blockchain utility,” Stellar-based DeFi wallet, Scopuly, wrote.

Overall, CME Group’s planned launch of Cardano, Chainlink, and Stellar futures marks another step in the maturation of crypto derivatives markets. While the announcement failed to spark immediate price momentum, it reinforces the growing role of regulated instruments in expanding institutional participation and strengthening market infrastructure for major altcoins.

Nearly $3 billion worth of Bitcoin and Ethereum options are set to expire on January 16. This puts derivatives markets in focus just as crypto prices test the strength of a recent rally.

While Bitcoin has pushed decisively above a key technical resistance level, options positioning and volatility metrics suggest traders remain cautious about declaring the move a confirmed bull breakout.

Options Expiry Puts Bitcoin’s Breakout to the Test

According to Deribit data, the total notional value of options expiring today is roughly $2.84 billion. Bitcoin dominates the expiry, accounting for approximately $2.4 billion, while Ethereum contributes around $437 million.

Bitcoin Expiring Options. Source: Deribit

The imbalance highlights where market attention, as well as risk, is currently concentrated.

Bitcoin is trading near $95,310, notably above its max pain level of $92,000. In options markets, max pain refers to the price at which the most contracts expire worthless, often acting as a gravitational level into expiry.

Trading well above that threshold raises the probability of heightened volatility as positions are closed, rolled, or hedged.

Despite the breakout, Bitcoin’s options positioning remains defensive. Call open interest stands at 11,170 contracts, while put open interest is 14,050, resulting in a put-to-call ratio of 1.26.

This skew suggests that downside protection still outweighs bullish leverage, even after BTC broke out of its nearly two-month consolidation range.

Bitcoin (BTC) Price Performance. Source: TradingView

If the Bitcoin price manages a daily candlestick close above $94,304, this retest would provide the jumping-off point for further upside, bringing $100,000 into focus. However, if this support breaks, the price could fall back into the multi-month consolidation range.

Ethereum Options Signal Caution as ETH Remains Range-Bound

Ethereum, by contrast, continues to show signs of consolidation rather than trend acceleration. ETH is trading around $3,295, only marginally above its $3,200 max pain level.

Its options market appears more balanced, with 65,527 call contracts and 67,207 put contracts outstanding, resulting in a near-neutral put-to-call ratio of 1.03.

Ethereum Expiring Options. Source: Deribit

The data reflects a market that is hedged but undecided, consistent with Ethereum’s ongoing struggle to break cleanly above the $3,400 resistance zone.

Ethereum (ETH) Price Performance. Source: TradingView

Meanwhile, derivatives flow data further highlights Bitcoin’s dominance in the current rally. In a January 14 market note, analysts at Greeks.live highlighted a sharp divergence in block trade activity between the two assets.

“Bitcoin successfully broke through the $95,000 resistance level, breaking out of its nearly two-month consolidation range,” the analysts said. “Ethereum saw a larger percentage gain but its price action was less robust than BTC’s, remaining within its $3,400 consolidation range.”

That divergence was especially evident in institutional-sized trades. According to Greeks.live, Bitcoin block trades reached $1.7 billion, accounting for more than 40% of total daily volume. Meanwhile, Ethereum block trades totaled just $130 million, or about 20% of ETH’s volume.

“The market is clearly more concentrated on Bitcoin’s bullish momentum,” the analysts noted.

However, the broader derivatives backdrop remains less convincing. Greeks.live noted that futures volume failed to expand meaningfully alongside the price surge, and that implied volatility for major expiries did not rebound substantially.

“The derivatives market has not yet entered a structurally bullish phase,” the analysts said, adding that the current setup appears “more like a reactive response to the sudden surge, with the long-term outlook still not shifting toward a bull market.”

As today’s large options expiry clears, spot prices could gravitate toward their max pain levels and investors should brace for possible volatility. However, things tend to cool down afterwards as traders adjust to new trading environments.

Eric Adams, who stepped down as New York City’s mayor two weeks ago, made a high-profile entry into the crypto space with the launch of his own token, NYC.

Less than 24 hours later, more than half of the 4,300 traders who bought the token were left with losses. The project quickly took on the characteristics of a meme coin, with analysts describing the episode as a textbook rug pull scenario.

The Unexpected Comeback of Political Meme Coins

Most people thought that 2025 had marked the end of the meme coin wave. 

After a series of high-profile launches by sitting presidents that ended with hundreds of thousands of dollars in losses, the narrative lost overwhelming support from retail traders.

However, Eric Adams seems to have revived the trend before it was left behind for good. On Monday, the former Mayor of New York announced on social media the launch of the NYC token. 

Adams clarified that it was built to “fight the rapid spread of antisemitism and anti-Americanism.” 

The rollout, however, resulted in significant losses for most traders. NYC quickly surged to a $600 million market cap before crashing below $100,000. 

Having seen these situations repeatedly in the past, the crypto community soon began looking for insiders.

On-Chain Data Fuels Insider Allegations

A follow-up analysis by the blockchain analytics platform Bubblemaps revealed that a wallet linked to the token’s deployer withdrew approximately $2.5 million in USDC from the liquidity pool supporting trading, just as NYC’s price reached its peak.

When the token dropped by 60%, NYC’s creators re-added $1.5 million worth of tokens. 

“The NYC wallet returned some of the money to the liquidity pool and created two large buy orders (one for $200,000 and another for $300,000) to make small purchases every 60 seconds. These movements, besides being suspicious, were not communicated beforehand and generated a lot of distrust,” Blockworks blockchain analyst Fernando Molina told BeInCrypto. 

The maneuver also did little to recover the price. What happened to the other $1 million remains unclear.

In the meantime, investors were left to lick their wounds. 

On Wednesday, Bubblemaps revealed that 60% of the 4,300 traders who invested in the token lost money. More than half lost less than $1,000, while others suffered steeper losses. Fifteen of them lost over $100,000.

Upon analyzing the launch, Molina drew comparisons to notorious rug pulls, such as the LIBRA token, launched by Argentine President Javier Milei last February.

“From a technical perspective, there were many similarities: the way the liquidity pool (the market where NYC or LIBRA can be traded) was generated had particularities that are not so common in these launches (single-sided liquidity pools),” he said. “There is no clear indication that it was the same team, but the similarities are striking.”

Nonetheless, Adams soon received accusations of being an insider. 

Adams Denies Allegations Amid Scrutiny

On Wednesday, Todd Shapiro, a spokesperson for Adams, issued a statement responding to the rug pulls allegations.

“Recent reports alleging that Eric Adams moved money out of the NYC Token are false and unsupported by any evidence,” it read. “At no point was his involvement intended for personal or financial gain.”

The statement added that, like many newly launched tokens, the project experienced significant early volatility.

However, the explanation did little to ease scrutiny of Adams, who has had a unique involvement in the greater crypto scene.

As New York City’s mayor, Adams cultivated a reputation as an outspoken supporter of cryptocurrency, frequently championing Bitcoin and blockchain technology. Even before taking office, he announced plans to receive his first three mayoral paychecks in Bitcoin.

His term, however, proved controversial. It was marked by corruption allegations and historically low approval ratings, leaving Adams with a difficult path toward re-election.

Echoing a strategy employed by US President Donald Trump, who courted crypto lobbyists ahead of his own re-election campaign, Adams continued to position himself as a pro-crypto politician. That approach ultimately failed to secure him a second term.

Even so, the launch of the NYC Token marked the first time Adams personally introduced a cryptocurrency project. So far, it’s off to a rocky start. 

Polymarket is facing fresh scrutiny after a cluster of high-risk geopolitical bets raised fears that prediction markets are being used to launder inside information into public narratives.

The controversy follows the now-infamous Maduro trade earlier this month. 

Polymarket Insider Trader on Venezuela Exposed, Says Trump

Earlier this month, an anonymous wallet turned a $30,000 bet into more than $400,000 by wagering that Venezuela’s president would be removed from office just hours before US forces captured him. 

US President Donald Trump later said a Venezuelan leaker connected to the operation was already in jail.

Blockchain analytics firm Lookonchain now shows that two of the three wallets tied to those Maduro profits have been inactive for 11 days, adding to speculation that law enforcement or exchanges may have intervened. 

The third wallet, however, has re-emerged.

That same wallet placed a new wager two days ago. It predicts that Iran’s Supreme Leader Ayatollah Ali Khamenei would be out of power by January 31, a market that remains open as nationwide protests continue across Iran. 

Polymarket Bets on Iran Protests

Meanwhile, Polymarket traders have already suffered major losses on Iran-related bets.

New Age of Information Laundering?

Earlier this week, one large wallet placed a heavy “Yes” position on whether the United States would strike Iran by January 14. 

As protests escalated and Iran temporarily closed its airspace, Polymarket odds surged to 51%, with nearly $50 million in trading volume flowing into the market.

But the strike never happened.

Iran reopened its airspace after four hours. President Trump said he had been told that protester executions had stopped. 

The market resolved “No,” wiping out 255,817 shares held by the trader and turning a potential $160,000 payout into a total loss of about $40,000.

That failed trade has not calmed concerns. Instead, analysts now argue that some traders may be using Polymarket to shape, not just predict, geopolitical narratives.

This tactic has become known as “information laundering.” It involves placing an early bet, allowing copy-traders and social media to amplify the trade, then reversing position once the market moves.

Because Polymarket odds are widely shared on X and Telegram as real-time signals of geopolitical risk, a single well-timed bet can generate headlines, trigger trading bots, and move sentiment before any public confirmation exists.

Lawmakers are already watching closely. 

Policymakers Show Concerns

After the Maduro trade, Representative Ritchie Torres introduced the Public Integrity in Financial Prediction Markets Act of 2026, which would ban US officials from trading on markets tied to government actions when they hold nonpublic information. 

The bill has dozens of House co-sponsors but has not yet moved to a vote and has no Senate companion.

So far, no evidence links the Iran trades to US insiders. But the pattern of sudden large bets, viral odds shifts, and rapid reversals is pushing prediction markets into a new and more dangerous spotlight.

The risk now is not just who is betting, but how those bets themselves may be shaping what the world believes is about to happen.

The Senate Banking Committee delayed a vote on cryptocurrency market structure legislation amid growing industry resistance.

The long-anticipated bill was postponed Wednesday night after a late policy debate, following prominent industry figures’ withdrawal of support for the CLARITY Act, prompting the committee to halt proceedings.

Crypto Pushback Stalls Vote

The road to getting the CLARITY Act to the Senate has been one of great turbulence. Set for a vote by the Senate Banking Committee on Thursday, the bill has been delayed once again. 

After an initial release of the 278-page bipartisan proposal on Monday, the bill has received significant pushback. On Wednesday, Coinbase CEO Brian Armstrong announced that the company could no longer support the bill’s current version.

Armstrong argued that the draft “breaks key parts of market structure” and creates risks for tokenized equities, DeFi, stablecoins, and open crypto markets.

In light of these setbacks, many began to wonder whether the CLARITY Act would even reach the President’s desk before the end of the year. 

Looking past these complications, Senate Banking Committee Chair Tim Scott maintained optimism over the bill’s passage. 

“I’ve spoken with leaders across the crypto industry, the financial sector, and my Democratic and Republican colleagues, and everyone remains at the table working in good faith,” Scott said in a social media post. 

So far, Coinbase has been the only major crypto player to oppose the current version of the bill. Nonetheless, it continues to face generalized friction.

Political Friction Threatens Crypto Bill Timeline

Despite broad opposition to the market structure legislation, the bill retained support from several major crypto stakeholders.

According to journalist Eleanor Terrett, the proposal has received backing from firms including Circle, Ripple, Kraken, and a16z. Non-profit organizations such as The Digital Chamber and Coin Center also supported the bill.

Even so, the legislation faces a difficult path forward. 

Industry frustration has intensified amid concerns that recent amendments concede too much ground to banks and traditional finance, particularly around stablecoin yield and tokenization.

At the same time, some Democrats have raised objections over the absence of ethics provisions for senior government officials, including the President. Sources familiar with the discussions say Democrats are also seeking to close loopholes related to tokenization and national security.

Although early expectations suggested the bill could get passed by March, ongoing political and industry disputes may significantly delay that timeline.

XRP has experienced heightened volatility over the past several days, reflecting a clash between selling pressure and long-term accumulation. 

Price swings have remained contained, but recovery remains uncertain as investors react differently to shifting market conditions. Despite these challenges, XRP has managed to preserve its broader uptrend since the start of 2026.

XRP Holders Exhibit Mixed Sentiment

Selling pressure has been a clear headwind for XRP this month. Exchange balance data shows that XRP holdings on centralized platforms have increased by roughly 206 million tokens since January began. Total exchange balances now stand near 1.66 billion XRP, signaling sustained distribution.

At current prices, this movement represents approximately $430 million worth of XRP being positioned for sale in less than two weeks. Such consistent inflows to exchanges often reflect waning confidence among short-term participants. If this behavior persists, it could weigh on price by increasing near-term supply.

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XRP Balance On Exchanges. Source: Glassnode

This pattern suggests many investors are opting to de-risk rather than hold through uncertainty. Elevated exchange balances typically coincide with profit-taking or defensive positioning. For XRP, this selling has so far capped upside momentum, even as the price avoids deeper declines.

While short-term selling remains evident, longer-term metrics paint a more balanced picture. The HODLer Net Position Change has been printing stronger green bars since early January. This indicates that long-term holders are accumulating or holding rather than distributing.

This behavioral shift among older wallets has helped absorb a portion of the sell-side pressure. Long-term holders often act as stabilizers during volatile phases, limiting downside moves. Their conviction has increased since 2026 began, counteracting the impact of exchange inflows.

XRP HODLer Position Change. Source: Glassnode XRP Price Uptrend Continues

XRP trades near $2.11 at the time of writing, holding above the key $2.10 support level. Price action has respected an upward structure since the beginning of the month. Maintaining this level remains critical for preserving the current trend.

Mixed signals suggest XRP could continue forming higher lows over time. However, if selling pressure intensifies, the token may enter a consolidation phase. In that scenario, the price would likely range between $2.10 support and $2.20 resistance.

XRP Price Analysis. Source: TradingView

A more bullish outcome depends on sellers stepping back. If exchange inflows slow and demand improves, XRP could bounce from $2.10 and reclaim $2.20. A confirmed break would open the path toward $2.31. Recovering losses from November 2025 near $2.50 remains possible, though it may require patience and sustained accumulation.

Polygon has carried out a large internal round of layoffs, according to multiple people familiar with the matter. Industry insiders told BeInCrypto that roughly 30% of staff were dismissed this week, although the company has not made any public announcement.

Meanwhile, reports have begun circulating on social media, with several Polygon-linked employees and ecosystem figures posting about abrupt exits and team changes. Polygon Labs has not yet responded to requests for comment. 

Major Strategic Shift for Polygon?

This is not the first time the layer-2 network executed a mass layoff. Back in 2024, the company fired nearly 20% of its workforce.

The timing fits a broader restructuring that Polygon already signaled in recent weeks. Earlier this month, Polygon Labs said it was realigning its workforce around a new payments-first strategy, after a major pivot away from pure scaling and DeFi narratives.

That shift followed Polygon’s $250 million-plus acquisition spree, which included Coinme, a US-regulated fiat-to-crypto on-ramp, and Sequence, a wallet and cross-chain payments infrastructure provider. 

Together, those assets form the backbone of what Polygon now calls its Open Money Stack, a vertically integrated system for regulated stablecoin payments and on-chain money movement.

POL Price Chart Over the Past Month. Source: CoinGecko

At the same time, Polygon has continued to push network upgrades. Its Madhugiri upgrade recently increased throughput and prepared the chain for higher transaction volumes. 

These changes have also played out in the market. Polygon’s native POL token rallied sharply in recent weeks. 

Yet internally, the transition appears to have come at a cost. 

For now, Polygon has not confirmed the reported layoffs. But with staff departures now visible across social platforms.

X has revoked API access for apps that reward users for posting on the platform, effectively banning so-called “InfoFi” projects that paid users to generate engagement. 

Product lead Nikita Bier said the model created “a tremendous amount of AI slop and reply spam,” adding that the changes should quickly improve the quality of content once automated bots stop getting paid.

InfoFi Crypto Projects Collapse

The decision triggered an immediate sell-off across InfoFi tokens. Kaito, Cookie DAO, BubbledMaps, Loud, Arbus and several others fell sharply within hours as traders priced in the loss of their core distribution and growth engine.

In response, Kaito founder Yu Hu confirmed the company will sunset Yaps and its incentivized leaderboards and pivot to a new product called Kaito Studio. 

InfoFi Tokens Collapse. Source: CoinGecko

Cookie, another InfoFi platform, also announced it would shut down Snaps, its creator campaign system, after discussions with X about API and usage policies. 

The company said it remains an Enterprise API customer but could not operate reward-based posting programs under the new rules.

Crypto Twitter Can Breathe Again

The market reaction was swift because InfoFi tokens were built around monetizing attention on X. These platforms tracked posts, replies, and engagement, then distributed tokens or points to users who generated visibility for projects. 

Kaito’s Yaps system became the largest version of this model in crypto, driving hundreds of thousands of users, particularly in South Korea, according to the company.

However, the model had already come under strain. Kaito’s KAITO token launch in early 2025 sparked heavy backlash after users found that Yaps points converted into much smaller token allocations than expected. 

Critics also pointed to insider-heavy tokenomics and fast post-airdrop selling, which pushed the token lower and damaged trust in the incentive structure.

Those problems intensified as AI-generated content flooded X. Because Yaps rewarded volume and engagement at scale, bot networks and low-quality farms increasingly dominated leaderboards. This diluted genuine research and commentary.

X’s API crackdown now forces a hard reset. Many traders and creators welcomed the move, arguing that incentive farming had hollowed out organic crypto discourse.

The broader InfoFi sector now faces an existential shift as the attention economy on X moves from open tokenized rewards to curated, platform-compliant partnerships.

Dash has posted one of its strongest rallies in months, surging from $37 to nearly $80 in a short span. The move reflects renewed interest in privacy-focused cryptocurrencies and recent ecosystem developments. 

While the momentum appears strong, emerging indicators suggest the rally may be entering a vulnerable phase.

Dash Is Fated For A Reversal 

Momentum indicators are flashing caution. Dash’s Money Flow Index is firmly in the overbought zone, signaling that buying pressure may be stretched. MFI evaluates price and volume together, and extreme readings often precede short-term pullbacks. This condition suggests demand could be nearing exhaustion.

A similar setup emerged in November 2025 after a sharp Dash rally. At that time, overbought conditions were followed by a swift correction as traders locked in gains. History does not guarantee repetition, but it highlights elevated downside risk when enthusiasm peaks too quickly.

Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.

DASH MFI. Source: TradingView

Overbought readings also reflect heightened speculation. When price acceleration outpaces sustainable demand, reversals tend to follow. For Dash, sentiment remains optimistic, but technical signals imply caution is warranted.

Dash Is Already Registering Outflows

Broader capital flow trends add to the cautious outlook. The Chaikin Money Flow indicator is forming a bearish divergence against price. While Dash continues printing higher highs, CMF is failing to confirm the move with stronger inflows, forming higher lows.

This divergence suggests that underlying capital support is weakening. Money appears to be leaving the asset even as price rises, a pattern often driven by hype rather than sustained accumulation. Such conditions usually break down once momentum fades.

DASH CMF. Source: TradingView

When price advances without matching inflows, rallies become fragile. For Dash, this imbalance raises the likelihood of a corrective phase as speculative interest cools. Without renewed capital commitment, upside continuation becomes harder to sustain.

DASH Price May Face Some Difficulties

Dash trades near $79 at the time of writing, marking a 114% gain over the past 72 hours. The rally has been supported by positive headlines, including its integration with Alchemy Pay. However, catalysts often lose impact once priced in.

Given the current indicators, Dash may struggle to extend toward $100 immediately. A pullback below the $71 support appears likely if selling accelerates. In that scenario, price could retrace toward $63 or even $59, erasing part of the recent surge.

DASH Price Analysis. Source: TradingView

A bullish alternative remains possible but requires sustained volume. If buyers maintain control and Dash pushes above $82, momentum could carry the price higher. A decisive break beyond that level would open a path toward $100, invalidating the bearish outlook and signaling renewed strength.

Welcome to the US Crypto News Morning Briefing—your essential rundown of the most important developments in crypto for the day ahead.

Grab a coffee as Ethereum, crypto capital, and one of the world’s biggest creators collide in a deal that has everyone talking.

Crypto News of the Day: Tom Lee’s BitMine Backs MrBeast

YouTube star Jimmy Donaldson, better known as MrBeast, may have claimed he has “negative money,” but his company, Beast Industries, just received a massive boost.

In a Thursday announcement, BitMine Immersion Technologies revealed a $200 million equity investment.

The deal was announced during BitMine’s Annual Stockholder Meeting at the Wynn Las Vegas. The firm has positioned itself as a global leader in Ethereum liquidity, with a goal to acquire 5% of ETH. Data on StrategicETHreserve.xyz shows BitMine already holds 3.36% of ETH supply.

While the investment is made in USD-equivalent equity, BitMine’s Ethereum treasury serves as the capital source, making the deal crypto-relevant.

It is increasingly deploying capital into high-profile ventures outside traditional blockchain projects.

“MrBeast and Beast Industries, in our view, are the leading content creators of our generation, with a reach and engagement unmatched by GenZ, GenAlpha, and Millennials,” read an excerpt in the announcement, citing Tom Lee, Chairman of BitMine.

Lee acknowledged Beast Industries as the largest and most innovative creator-based platform in the world, noting that their corporate and personal values are strongly aligned.”

Beast Industries, valued at $5 billion, operates across multiple verticals. However, despite this valuation, Donaldson has previously admitted that his personal liquidity is extremely limited.

BitMine and DeFi Integration: A New Era for Creator Finance

The $200 million investment is more than a celebrity headline. It reflects a broader trend of Ethereum liquidity flowing into the creator economy.

CEO Jeff Housenbold highlighted that the deal validates Beast Industries’ growth trajectory and opens opportunities for future innovation, particularly in DeFi.

“We are excited to welcome Tom Lee and BitMine as new investors in Beast Industries, joining our current top-tier venture investors… We look forward to exploring ways to collaborate further and incorporate DeFi into our upcoming financial services platform,” Housenbold said.

The deal is expected to close on or about January 19, 2026, giving Beast Industries additional runway.

The announcement offers a glimpse of a potential tokenized creator economy, where Ethereum-backed capital supports fractionalized fan ownership models.

With BitMine’s involvement, the deal could serve as a blueprint for bridging Web2 content empires and DeFi-enabled finance. This demonstrates how Ethereum liquidity is extending far beyond traditional blockchain projects.

Meanwhile, Beast Industries has previously discussed the possibility of an IPO, aiming to give fans a chance to become owners.

Chart of the Day

Bitmine ETH Holdings. Source: strategicethreserve.xyz Byte-Sized Alpha

Here’s a summary of more US crypto news to follow today:

Robinhood listing sparks Lighter rally: LIT price recovers after 15% dip.

Ethereum staking activity sets multiple records — Is ETH price ready for a breakout?

Dash outpaces Monero with 100% weekly gain in privacy coin rally.

Base App goes trading-first, but what happens to mini apps and creator coins?

Four red flags that make NYC token’s crash look like a rug pull

Why 86% of all crypto token failures happened in 2025.

Senate and crypto heavyweights signal CLARITY Act is still alive despite Coinbase revolt.

Crypto Equities Pre-Market Overview

CompanyClose As of January 14Pre-Market OverviewStrategy (MSTR)$179.33$178.70 (-0.35%)Coinbase (COIN)$255.86$252.00 (-1.51%)Galaxy Digital Holdings (GLXY)$28.19$28.07 (-0.43%)MARA Holdings (MARA)$11.11$11.05 (-0.54%)Riot Platforms (RIOT)$17.31$17.26 (-0.29%)Core Scientific (CORZ)$17.92$18.10 (+1.00%)

Crypto equities market open race: Google Finance

Ethereum has entered a pivotal phase after breaking out of a bullish pattern that constrained price action for nearly two months. ETH pushed decisively above a key resistance zone, confirming renewed upside momentum. 

This technical breakout coincided with a historic surge in network participation, marking a significant moment for Ethereum’s recovery narrative.

Ethereum Breaks 7 Year Record

Ethereum recorded an unprecedented 447,000 new investors onboarding within a single 24-hour period. New addresses represent wallets interacting with ETH for the first time. This milestone reflects a sharp acceleration from recent trends, where daily new addresses had already surpassed 300,000 during the past week.

The steady rise in first-time participants throughout the last month highlights expanding organic demand. More than 300,000 new addresses have been transacting daily, and the latest spike marked the end of a 7-year record of 351,000. This influx typically aligns with improving price structure, reinforcing Ethereum’s breakout, and supporting sustained recovery.

Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.

Ethereum New Addresses. Source: Glassnode

Rising address growth also suggests broader adoption beyond speculative trading. Increased participation strengthens network utility, which historically supports price stability during rallies. As fresh capital enters the ecosystem, Ethereum gains resilience against short-term volatility.

Why Are Young ETH Holders Unlikely To Sell?

From a macro perspective, the Short-Term Holder Net Unrealized Profit and Loss metric is beginning to trend higher. This indicator tracks profitability among recent buyers and offers insight into selling pressure. While STH NUPL is rising, it remains firmly within the capitulation zone.

This positioning is constructive for price continuation. Average short-term Ethereum holders are still underwater, reducing incentives to sell into strength. As long as losses persist, most STHs are likely to hold positions, limiting distribution during the early stages of a rally.

Ethereum NUPL. Source: Glassnode

Historically, Ethereum rallies gain traction while STH NUPL remains negative but improving. Once the metric exits capitulation and turns positive, selling pressure often increases. Until that shift occurs, ETH retains room to climb without facing aggressive profit-taking.

ETH Price Breaks Out

Ethereum trades near $3,317 at the time of writing, holding firmly above the $3,287 support level. This zone marked the upper boundary of the triangle pattern that ETH escaped in the past 24 hours. The breakout projects a potential 29.4% upside move, targeting approximately $4,240.

Strengthening fundamentals supports this outlook. Rising address growth and restrained selling suggest fresh capital is driving momentum. A sustained move above $3,441 would reinforce the breakout. Clearing that level could carry ETH toward $3,607, confirming trend continuation and improving medium-term confidence.

ETH Price Analysis. Source: TradingView

However, downside risk remains if sentiment shifts abruptly. Should short-term holders sell prematurely to offset losses, Ethereum could slip back below $3,287. A return inside the triangle would weaken the bullish structure. In that case, ETH could retrace toward $3,131 or $3,000, invalidating the breakout thesis.

Litecoin (LTC) holders have yet to see profits in 2026, as the price remains weighed down by the sharp sell-off in October last year. However, when zooming out to the broader trading picture, Litecoin exhibits several signs that indicate a potential reversal.

Positive signals supporting a reversal thesis include sustained whale trading activity and a renewed interest in Litecoin.

How Have Whales Dominated Litecoin (LTC) Trading For More Than a Year?

Data from Coinglass shows that the LTC Whale vs. Retail Delta has remained mostly positive from Q4 2024 to the present.

Whale vs. Retail Delta measures the difference between trading activity by whales and retail investors. When this indicator remains above zero and is elevated relative to historical levels, it indicates strong participation from whales.

This behavior can signal the accumulation of positions at low prices. It can also warn of heavy selling pressure if prices move higher.

For Litecoin, the chart highlights two distinct phases, marked in red and green.

LTC Whale vs Retail Delta. Source: Coinglass

Before Q4 2024, the delta stayed negative. Retail traders dominated activity during this period, while LTC traded mostly below $100. After Q4 2024, whales took control of trading activity. The delta turned positive, even though LTC remained stuck in a multi-year sideways range.

This pattern suggests that retail investors may have capitulated, while whales actively prepared positions.

Additionally, short-term data from Santiment, an on-chain analytics platform, indicates a surge in Litecoin network activity. Whale transactions have reached a five-week high.

“Historically, an asset has a significantly higher likelihood of reversal on whale spikes,” Santiment reported.

Litecoin Whale Transactions vs. Price. Source: Santiment.

This data strengthens the case that LTC could recover or reverse at any time, even if the price experiences a deeper decline.

Derivative market data adds another layer. Open interest in LTC has recently spiked. On the negative side, elevated open interest increases the risk of liquidation when traders use high leverage.

Litecoin Total Open Interest in USD. Source: Santiment.

On the positive side, it signals that more traders are increasing exposure to Litecoin than before. This shift may indicate that retail interest in LTC is returning.

In summary, the combination of long-term and short-term whale activity, along with renewed momentum in derivatives markets, may indicate a potential recovery for LTC.

However, any rebound is unlikely to be easy or rapid, as the price still trades roughly 46% below last year’s peak.

Robinhood will reportedly list Lighter DEX’s LIT token today, despite the altcoin’s 15% dump on Thursday. The listing rumors have inspired recovery for the DEX token, which now trades at $2.09.

The move comes only hours after Lighter announced the roll-out of its much-awaited LIT staking, with details about how holders can now earn rewards and access additional features across the platform.

Lighter Price Recovers From 15% Crash After Robinhood Listing Rumors

BeInCrypto reported Lighter’s 15% crash following the network’s staking feature roll-out. However, while the token was still underwater by double-digits, reports revealed Robinhood’s planned listing of Lighter’s native token, LIT, causing a speedy recovery.

As of this writing, Lighter’s LIT token was trading for $2.09 on MEXC exchange, with the token expected to be available for trading on Robinhood soon.

Lighter (LIT) Price Performance. Source: TradingView

Notably, neither Lighter nor Robinhood has publicly confirmed the listing plans, but the LIT token appears to be already live on the exchange.

Lighter (LIT) on Robinhood. Source: Robinhood

Notably, Lighter has strong ties to Robinhood, as Robinhood Ventures participated in its $68 million funding round in November 2025.

Furthermore, the project is often described as an “on-chain Robinhood model” with plans for a mobile app aimed at retail traders, bridging DeFi and TradFi.

LIT has already secured listings on various centralized exchanges, including Bybit, Bitget, KuCoin, Gate, MEXC, and others.

Meanwhile, reports indicate that market makers and wallets have begun withdrawing LIT from Lighter DEX, suggesting that the token could soon be available for transfers on centralized exchanges.

The crypto market experienced an unprecedented wave of project collapses in 2025, with more than 11.6 million tokens failing in a single year, according to new data from CoinGecko.

The figure represents 86.3% of all cryptocurrency failures recorded since 2021, making 2025 the most destructive year for token survivability in the industry’s history.

Token Creation Exploded—Survivability Collapsed, CoinGecko Report Shows

CoinGecko’s findings highlight a structural breakdown in the token economy, driven by the explosive creation of projects, meme coin saturation, and heightened market turbulence.

In total, 53.2% of all cryptocurrencies tracked on GeckoTerminal are now inactive. The vast majority of failures have clustered in the past two years.

53.2% Cryptocurrencies Have Died Since 2021. Source: CoinGecko

Between 2021 and 2025, the number of listed cryptocurrency projects surged from 428,383 to nearly 20.2 million. While the rapid growth reflected increasing accessibility to token creation tools, it also led to severe market saturation.

The annual breakdown of failures illustrates the scale of the shift. In 2021, just 2,584 tokens failed. That number jumped to 213,075 in 2022 and 245,049 in 2023.

The situation escalated sharply in 2024, when 1,382,010 tokens collapsed. However, 2025 dwarfed all previous years, with 11,564,909 failed tokens.

Together, 2024 and 2025 accounted for more than 96% of all crypto token failures since 2021, reflecting how recent market conditions fundamentally altered token survivability.

CoinGecko’s methodology focused exclusively on cryptocurrencies that had recorded at least one trade and were listed on GeckoTerminal before becoming inactive.

Tokens with zero trading activity were excluded, while only graduated Pump.fun tokens were included, reinforcing the credibility of the dataset.

Q4 2025 Marked the Breaking Point Amid Meme Coin Saturation and “Crime Szn” Woes

The collapse accelerated dramatically in the final months of the year. Q4 2025 alone saw 7.7 million token failures, representing 34.9% of all recorded collapses over the five years.

This surge coincided with the October 10 liquidation cascade, during which $19 billion in leveraged positions were wiped out within 24 hours, marking the largest single-day deleveraging event in crypto history.

The shock exposed vulnerabilities across thinly traded tokens, many of which:

Lacked sufficient liquidity or

Committed market participants to survive extreme volatility.

CoinGecko noted that the sharp decline in survivability was particularly pronounced within the meme coin sector, which had expanded quickly throughout the year.

The rise of easy-to-use launchpads played a central role in the wave of failures. Platforms like Pump.fun have significantly reduced technical barriers, allowing nearly anyone to launch a token within minutes.

While this democratized experimentation, it also flooded the market with low-effort projects lacking long-term viability.

DWF Labs executive Andrei Grachev described the environment as a crime season, pointing to systemic pressures facing both founders and investors.

His comments reflect a broader consolidation underway in the crypto markets, where capital is increasingly gravitating toward Bitcoin, established assets, and short-term speculative trades. This leaves newer projects struggling to attract sustainable liquidity.

The concentration of failures in 2025 has intensified concerns about the long-term health of token creation practices.

While innovation remains a cornerstone of the crypto market, the data suggest that the market’s capacity to absorb new projects has been severely overstretched.

As millions of tokens vanish, retail confidence continues to erode, reducing available liquidity and raising the bar for future launches.

Why the Token Failure Cycle May Extend Into 2026

Meanwhile, the forces that drove crypto’s collapse in 2025 show little sign of reversing. Token creation remains frictionless, retail liquidity is fragmented, and market attention continues to concentrate around Bitcoin, blue-chip assets, and short-term speculative trades.

CoinGecko’s data shows that token supply has grown far faster than the market’s capacity to absorb it. With nearly 20.2 million projects listed by the end of 2025, even a modest continuation of launchpad-driven issuance risks pushing failure rates higher in 2026. This is especially true if demand and liquidity fail to recover.

Market stress events also remain a key vulnerability. The October 10 liquidation cascade, which wiped out $19 billion in leveraged positions within 24 hours, demonstrated how quickly systemic shocks can cascade through thinly traded assets.

Tokens lacking deep liquidity or committed user bases were disproportionately affected, suggesting similar volatility episodes could trigger additional mass failures.

DWF Labs managing partner Andrei Grachev warned that the current environment is structurally hostile to new projects, describing ongoing “liquidity wars” across crypto markets.

As retail capital thins and competition intensifies, newer tokens face rising barriers to survival. Without changes to launch incentives, disclosure standards, or investor education, the market risks repeating the same cycle: rapid issuance, brief speculation, and eventual collapse.

While industry participants argue that this purge may ultimately strengthen crypto by eliminating weak projects, the data suggest the adjustment is far from complete.

If token creation continues to outpace liquidity growth, 2026 may see fewer launches, but not necessarily fewer failures.

Former New York City Mayor Eric Adams’ NYC meme coin has drawn heavy criticism from the crypto community after plunging more than 80%, pushing its market capitalization below $100 million.

While both Adams and the project’s team deny any wrongdoing, unusual liquidity movements raised red flags, prompting some analysts to characterize the token as a potential rug pull. In an exclusive interview with BeInCrypto, a Nansen analyst outlined 4 reasons why NYC token appears to fit the broader definition of “rug pulls.”

Around 60% of Traders Suffer Losses Following NYC Token Meltdown

Earlier this week, BeInCrypto reported that Adams revealed the token at Times Square. It surged shortly after its launch, but the rally was unsustainable.

“FORMER NYC MAYOR JUST RUGPULLED. The coin immediately hit $500 million in the market cap before Eric withdrew liquidity from the coin. This caused a massive 80% crash, and the token went below $100 million,” Ash Crypto posted.

Blockchain analysts identified unusual liquidity behavior. Rune Crypto alleged that Adams removed $3.4 million from the token’s liquidity pool. Bubblemaps also identified suspicious liquidity activity.

In a separate post, Bubblemaps highlighted the fallout from the NYC token. Around 4,300 traders interacted with the NYC token, with roughly 60% recording losses.

2,300 traders lost less than $1,000.

200 traders incurred losses ranging from $1,000 to $10,000.

40 traders lost between $10,000 and $100,000.

15 traders incurred losses exceeding $100,000.

Was NYC Token Rug Pulled?

Nicolai Sondergaard, Research Analyst at Nansen, told BeInCrypto that the reason the NYC token can be grouped with other rug pulls is due to how liquidity was removed. The analyst outlined 4 key reasons:

The team did not make a prior announcement regarding a planned liquidity “rebalance.”

A large amount of liquidity was removed in a very short period rather than gradually.

The liquidity that was withdrawn was not fully added back.

Liquidity was removed only after the token had already reached high levels.

“If it was a legitimate move I would have expected to see small changes as well as an advance mention that things would be shifted around. This likely would not have had a negative impact on the token,” Sondergaard remarked.

He explained that removing liquidity, even partially, significantly increases the impact of a single sell order. A sell order that would not have significantly affected the price under normal liquidity conditions can suddenly move the market much more, often triggering panic, cascades of sell-offs, and even forcing traders with limit orders out of their positions.

“What they did effectively trapped traders, forcing many to sell at a loss in a lower liquidity environment, and adding liquidity back in does not undo the damage done. Neither does setting up DCA orders undo the damages, but rather, it’s a bandaid solution,” the analyst said.

Sondergaard emphasized that, from a market integrity standpoint, clear and transparent communication around liquidity is essential. Why? Because traders cannot accurately assess risk if liquidity can disappear without warning.

He mentioned that incidents like this undermine trust across the broader ecosystem. The analyst added that better transparency standards, combined with analytics-driven oversight, could help distinguish legitimate projects from bad actors. Sondergaard suggested that,

“It’d be prudent for investors to in any case exercise caution whenever they trade memecoins. It is always worthwhile to look at holder distributions, does it seem like buy volume heavily outweighs sell volume, was one-sided liquidity provided (e.g., only in the token or was usdc also added?”

Adams Denies Rug Pull Allegations 

Amid this backlash, the former mayor’s spokesperson, Todd Shapiro, shared a statement, pushing back against the claims. He denied reports that Adams moved investor funds or profited from the NYC token’s launch, stating the allegations are false and unsupported by evidence. 

The spokesperson noted that NYC Token experienced price volatility typical of newly launched digital assets. He reiterated Adams’ commitment to transparency, accountability, and responsible innovation.

Previously, the NYC Token team attributed the liquidity movements to a rebalancing process following strong demand at launch.