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"Crypto Market Turmoil: Aave Survives, Ethereum Plunges, Bitcoin Dominates"

Coin WorldTuesday, Feb 4, 2025 6:09 am ET

1min read

Aave, a leading decentralized finance (DeFi) platform, has faced significant liquidations amidst recent market volatility. Despite these challenges, the platform has demonstrated resilience, with a notable decrease in bad debt. This news comes as the crypto market grapples with the impact of the US-China trade war, leading to massive liquidations and substantial losses across various cryptocurrencies.

The crypto market has witnessed a significant downturn, with the largest liquidations ever recorded, totaling $2.3 billion. Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has fallen by 35%, leading the losses among major cryptocurrencies. Bitcoin (BTC) dominance has neared a four-year high, reflecting investors' preference for the leading cryptocurrency during market uncertainty.

As the market braces for $3 billion worth of unlocks in February, led by Solana (SOL), stablecoin total value locked (TVL) has hit a new record of $218 billion. Despite the market downturn, some altcoins, such as HYPE, have seen buybacks from liquidations, indicating potential opportunities for investors. Asian crypto stocks have also plunged, with Metaplanet leading the decline.

Analysts, such as JPMorgan's Nikolaos Panigirtzoglou, have warned that the crypto market bubble is likely to collapse. However, Bitwise Asset Management predicts that Bitcoin ETFs could attract over $50 billion in investments by 2025. Meanwhile, MicroStrategy has raised $563 million to purchase more Bitcoin, demonstrating the company's commitment to the cryptocurrency.

Regulatory developments have also been in the spotlight. India is reviewing its stance on cryptocurrencies, while South Korea's Bitcoin Kimchi premium has reached a three-year high. Tether, the issuer of the USDT stablecoin, has reported $13 billion in profit. Utah is considering becoming the first state to pass a Bitcoin reserve bill, while Hong Kong has omitted XRP from its list of approved cryptocurrencies.

In the realm of DeFi, Coinbase has acquired the ads platform Spindl, and UBS is testing blockchain technology for digital gold investments. Thailand plans to launch a new token trading platform, while stablecoins are finding 'product-market fit' in emerging markets. Uniswap has launched its

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