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FTX’s $1.2 billion repayment is seen as a significant liquidity event for the industry that may bolster cryptocurrency valuations.
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Cryptocurrency investor optimism is palpable ahead of US President-elect Donald Trump’s inauguration on Jan. 20, which is expected to bring more regulatory clarity to the industry.
Bolstered by the prospect of more industry-friendly regulations, the XRP (XRP) token rose to its highest level since 2018, unfazed by the latest legal appeal of the US Securities and Exchange Commission.
Adding to the positive outlook, the bankrupt FTX exchange is preparing to repay over $1.2 billion to its users after Trump’s inauguration, which is seen as a significant liquidity event for the crypto market.
XRP hits seven-year high as optimism outweighs SEC appeal concerns
XRP rose to its highest level since January 2018 as optimism toward emerging crypto regulations overcame concerns raised by the latest legal appeal filed by the SEC.
The XRP (XRP) price rose to a seven-year high of $3.20 on Jan. 15 before retracing to trade at $3.09 at 8:45 am UTC on Jan. 16. XRP is up over 32% on the weekly chart, CoinMarketCap data shows.
XRP/USDT, all-time chart. Source: CoinMarketCap
The rally came even as the SEC filed an appeal on Jan. 15, challenging a July 2023 ruling by District Judge Analisa Torres that found XRP sales to retail investors did not constitute unregistered securities. The SEC is seeking to have those retail sales classified as such.
Despite the SEC’s appeal, the market has favored the partial legal victories secured by Ripple Labs in the long-standing case, according to Ryan Lee, chief analyst at Bitget Research.
These partial legal victories, paired with investor optimism for more crypto regulatory clarity, are the main drivers of XRP’s price rally, the analyst told Cointelegraph.
FTX to begin distributing $1.2 billion to creditors after Trump inauguration
FTX is preparing to distribute more than $1.2 billion in repayments to the bankrupt former cryptocurrency exchange’s users.
FTX, once the world’s second-largest centralized cryptocurrency exchange (CEX), is set to begin repaying users who have been unable to access their funds for over two years.
Exchange users who are owed up to $50,000 worth of digital assets have until Jan. 20 to fulfill their repayment requirements.
FTX will likely start repaying claims of up to $50,000 after Jan. 20, according to FTX creditor Sunil, who is part of the largest group of more than 1,500 FTX creditors, the FTX Customer Ad-Hoc Committee.
Hyperliquid’s $7.5 billion airdrop marks shift from centralized token listings
The decentralized launch of the Hyperliquid (HYPE) token may usher in a “new era” for onchain fair launch cryptocurrencies following some disappointing token launch events on centralized exchanges.
After staging the most valuable airdrop in crypto history, the Hyperliquid token came into the spotlight for its decentralized distribution, which excluded venture capital (VC) firms and early investors.
During an exclusive interview with Cointelegraph at the Emergence Prague 2024 event, Vitali Dervoed, co-founder and CEO of Composability Labs, said:
“The HYPE token launch marks the beginning of the new era between centralized exchange listings and onchain […] Because HYPE was launched by the protocol on its order book on its own layer 1.”
Composability Labs’ Vitali Dervoed, interview with Cointelegraph’s Zoltan Vardai. Source: Cointelegraph/Zoltan Vardai
AI token market to hit up to $60 billion in 2025 — Bitget CEO
Tokens tied to artificial intelligence agents are poised to soar in value to a total market capitalization of as much as $60 billion in 2025, Gracy Chen, CEO of cryptocurrency exchange Bitget, told Cointelegraph.
Initial use cases for AI agents will include crypto transactions such as trading and wallet management, Chen said. Additionally, crypto exchanges will start launching AI agents to automate operations and improve customer service, she added.
“The technology is not mature enough for large-scale investments due to the need for human control,” Chen cautioned, adding that investors should “opt for tokens backed by practical solutions [such as] those replacing a programmer or automating tasks.”
Agentic AI tokens already command roughly $15 billion in total market capitalization and about $875 million in daily trading volume, according to Chen.
AI agents’ market cap surges 222% in Q4 2024, driven by Solana
The market capitalization of artificial intelligence agents surged by 222% in the fourth quarter of 2024, rising from $4.8 billion in October to $15.5 billion by December.
On Jan. 14, CoinGecko published its “2024 Annual Crypto Industry Report,” which revealed that AI agents took off as a category shortly after the launch of the Goatseus Maximus (GOAT) coin on Solana in October.
AI agents are autonomous software programs that leverage artificial intelligence to perform tasks, often in decentralized finance (DeFi) or as key components of blockchain ecosystems. These agents can range from automated trading bots to decision-making systems that interact with smart contracts.
DeFi market overview
According to data from Cointelegraph Markets Pro and TradingView, most of the 100 largest cryptocurrencies by market capitalization ended the week in the green.
Of the top 100, the Solana-based memecoin Fartcoin (FARTCOIN) rose over 58% as the week’s biggest gainer, followed by the XDC Network (XDC) token, up over 49% on the weekly chart.
Total value locked in DeFi. Source: DefiLlama
Thanks for reading our summary of this week’s most impactful DeFi developments. Join us next Friday for more stories, insights and education regarding this dynamically advancing space.
This article first appeared at Cointelegraph.com News
