The cryptocurrency markets are gearing up for an eventful beginning to the new year, characterized by several significant events that are likely to influence investor sentiment and trading volumes. From crucial macroeconomic decisions by the Federal Reserve to vital protocol updates and ongoing legal proceedings, here are the major developments that investors should closely monitor:
Crypto Awaits The FOMC Minutes Release (January 8)
On the horizon is the release of the minutes from December’s Federal Open Market Committee (FOMC) meeting. Scheduled for January 8, these minutes will provide valuable insights into the deliberations of policymakers, potentially offering clues about future rate decisions. This release is significant as it will illuminate the Federal Reserve’s latest strategies for managing inflation while maintaining economic stability.
In 2024, the Fed cut U.S. interest rates three times consecutively, following intense debate, though it revised its forecast for total annual rate cuts this year from four to two. Investors will recall Federal Reserve Chair Jerome Powell’s remark that the rate cut decision was a “close call.” This highlights the importance of the upcoming minutes for those trying to assess whether the central bank may adopt a hawkish or dovish stance throughout 2025.
THORChain’s Base Integration
THORChain, a prominent cross-chain liquidity platform, is set to integrate with Base, the largest Layer 2 by volume, which will commence next week. This strategic move is anticipated to facilitate more efficient ETH-BTC swaps, bypassing Ethereum’s mainnet congestion and unlocking new liquidity pathways through cbBTC. Market analysts expect a significant increase in trading volume as the community capitalizes on cheaper ETH-BTC swaps and enhanced cross-chain functionalities.
Jupiter’s Airdrop Checker
Jupiter, a leading decentralized exchange (DEX) aggregator on the Solana blockchain, is poised to release its airdrop eligibility checker this week. This development is part of “Jupuary,” an ambitious multi-year airdrop initiative scheduled for January 2025 and 2026, during which the protocol aims to distribute $700 million worth of JUP tokens to its users.
This airdrop is designed to “grow the pie,” expanding the Jupiter community and boosting engagement within one of the world’s most influential decentralized autonomous organizations. Additionally, Jupiter’s Castanbul conference, set for late January, will feature the live burning of 30% of the token’s supply, adding another layer of intrigue to the event.
USUAL Fee Switch Activation (January 7)
In the decentralized finance (DeFi) sector, the USUAL ecosystem is preparing to activate its fee switch on January 7, 2025. This marks a significant transition, where holders of USUAL tokens who stake them will begin to receive a share of the protocol’s revenue. By directly rewarding stakers with transaction fees, the protocol aims to cultivate a more engaged and resilient user base.
Do Kwon’s Second US Hearing (January 8)
The legal saga of Terra’s founder, Do Kwon, reaches a critical stage with his second hearing in the United States scheduled for January 8. Following his extradition, Kwon faces a potential maximum sentence of 130 years in prison if convicted on the extensive fraud charges detailed in the Department of Justice’s comprehensive indictment.
The DOJ’s case introduces new allegations beyond those examined in the SEC’s civil proceedings, including claims that Kwon acted with explicit criminal intent to deceive investors. Prosecutors are building their case around five alleged fraud schemes, which include falsely promoting Terra’s stability, manipulating the Luna Foundation Guard, and falsifying Terra’s usage by Chai.
GMX Trading Fees Reduction (January 6)
GMX, a derivatives-focused exchange, is taking a strategic step to boost trading volumes by reducing fees across all markets. Effective January 6, 2025, GMX will lower open and close fees from 5 and 7 basis points (bps) to 4 and 6 bps, respectively. The GMX team announced via social media: “To kick off 2025 in style, GMX is reducing trading fees across all markets! Starting this Monday, January 6, the open and close fees for all positions will decrease from 5 bps / 7 bps to 4 bps / 6 bps.”
This new fee structure incorporates a sliding scale: traders who initiate positions that enhance the balance between longs and shorts will pay the lower 4 bps fee, while those increasing imbalances will incur a 6 bps fee. GMX explains that this adjustment encourages balanced open interest, which helps keep funding fees and price impact low.
In tandem, GMX has revised liquidation fees to 20 bps for asset-backed markets and 30 bps for synthetic markets. The GMX developers believe these measures will collectively reduce trading costs, incentivize balanced market participation, and improve the user experience.
At the time of writing, the total crypto market capitalization stands at $3.45 trillion, showcasing the vibrant and evolving nature of the digital asset landscape.
