XRP Surpasses Goldman Sachs – Should We Have Gone All In?

PLUS: Tether Relocates to El Salvador and Dubai Announces the Construction of 17-Storey Crypto Tower!

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Desert Echo, Atomist, 0x_Vlad, CJ CJ & MarketsAlpha
January 17, 2025 • Est. Reading Time: 14 minutes

Soon, you'll be able to unlock your esGMX — no reserved $GMX or $GLP required.

GM. This is The Castle Chronicle, your front-row seat to the crypto show - the good, the bad and the ugly.

Here’s what’s happening this week:

  • 📈 Price Action – BTC and the re-accumulation phase: bullish or bear trap?

  • 🗳️ Arbitrum Corner – $25M ETH on the table for yield protocols

  • 🔍️ Market Watch – AI tokens surge on the market’s rebound

  • 🔑 Key News – We read the news so you don’t have to

🔍️ MARKET WATCH

Here’s the low down on the wider market straight from our quant 👇

SECTOR PERFORMANCE

Since the consumer price index (CPI) numbers were released this week, crypto has seen a rebound after a correction over the previous week. After this pressure was released, the strongest gainers were seen in the AI Agents sector, gaining 20.30%, with tokens like VIRTUAL, AIXBT, GAME, and LUNA rising between 26–42%.

Fartcoin and GRIFFAIN also climbed over 27%, while the Hyperliquid ecosystem saw HFUN up 34.93% and PURR up 15.46%. XRP, XDC Network, and Lido DAO also posted notable gains, with Meme coins, Layer 1 and Layer 2 tokens showing steady growth.

Headline CPI rose 2.9% year-over-year in December, up from 2.7%, with a monthly increase of 0.4%, exceeding the expected 0.3%. This slight acceleration in inflation was largely anticipated but still surprised markets.

It looks like companies aren’t as concerned about inflation as they once were.

Maybe they’re just as degen as we are these days due to the incoming stock market happy government.

Mentions of inflation during S&P 500 earnings calls have significantly decreased compared to the 2022 peak and much of 2023, indicating that inflation is no longer a major focus for many sectors.

Based on CME's data, after last night’s U.S. CPI release, the probability of a 25-basis-point Fed rate cut in March rose slightly to 28.2% from 23.2% the previous day, while the probability of no rate cut remains high at 71%.

Remember: rate cuts = more risk on = bullish for stocks and crypto (generally)

KAITO PRE-TGE ARENA

Here’s a list of the most discussed Pre-TGE airdrops, based on Twitter attention.

Kaito itself tops the list, as it recently announced a campaign to earn Yap points.

OTHER INTERESTING EVENTS

XRP's market value surpasses Goldman Sachs.

Tether recently blocked an address holding $50M USDT.

BNB Chain announced an AI Agent Competition to boost AI innovation, running from February 11 to April 7, 2025. The competition includes 8 rounds, selecting top AI agents based on market growth, community impact, and participation. Winners receive $10,000 in tokens via airdrops and access to the AI Fast Track Program. The leaderboard goes live on February 6.

Courtesy of @MarketsAlpha - Telegram channel for sharing crypto market research and Intel Alpha

📈 PRICE ACTION

Gm frens!

It was another sideways week for BTC, so there isn’t a whole load to comment on but here;s what I”ve got for you.

The weekly momentum cycle is still intact, so there’s no reason not to be bullish. I expect this sideways price action to result in yet another re-accumulation and continuation higher.

  • Healthy uptrend

  • Ongoing momentum cycle

  • Expecting another re-accumulation

A clear break below the 10/20 EMA tunnel would invalidate my bullish bias. At that point, I would sit on the sidelines and wait for a new momentum cycle to the upside. By no means would I be bearish, that’s currently long off.

One last thing I’d like to mention - when BTC dumps, everything else dumps too, and usually harder. So keep that in mind when structuring your portfolio. The best time to be exposed to the overall crypto market is when the leader (BTC) is bullish.

Trade responsibly and I’ll see y’all next time!

Courtesy of 0x_Vlad - trend-based trader and MentFX student

💙 $25M UP FOR GRABS - WHERE SHOULD THE DAO PARK THEIR ETH?

Listen up 🔔

Your favourite protocol could be stacking some extra TVL, so pay attention.

The Arbitrum DAO is actively seeking DeFi protocols to deploy 7,500 ETH ($25M) into yield-generating strategies.

This is a rare opportunity to secure significant TVL whilst enhancing efficiency, driving user activity, and earning a vote of confidence from the DAO.

With evaluations conducted by Entropy Advisors, Llama Risk, and Wintermute, getting approved is a seal of approval from top-tier experts in the space.

Here’s how protocols can seize this opportunity.

WHAT’S ON OFFER?

The DAO plans to deploy $25M worth of ETH into low-risk, ETH-focused strategies that support both yield generation and ecosystem growth.

Key attraction for protocols is:

  • Driving TVL: Bring new liquidity to your protocol while amplifying its visibility and credibility.

  • Ecosystem Synergy: Showcase how your protocol can boost activity and liquidity across the Arbitrum ecosystem.

  • Strengthening Trust: Approval from a panel of respected evaluators signals trust and positions your protocol as a key player in DeFi.

WHO SHOULD APPLY?

If you’re part of a protocol team or community, this is your moment to act. The DAO is particularly interested in protocols from these categories:

  • Liquid Staking Tokens (LSTs): LST protocols provide liquid representations of staked ETH, unlocking additional capital efficiency.

  • Borrowing and Lending Protocols: Borrowing and lending platforms can leverage ETH to deepen liquidity pools and enhance capital efficiency.

  • Bridging Protocols: Bridges enhance interoperability, enabling smooth asset transfers across chains.

  • Innovative ETH Strategies: Protocols that think outside the box and offer unique ETH-based opportunities.

COMMUNITY MATTERS

This opportunity isn’t just for protocol teams—it’s also for you, the community.

The backing of engaged and vocal communities can make a massive difference in encouraging protocol teams to apply.

Your support could be the key to winning this allocation.

Here’s how you can help:

  • Push Your Protocol Teams: Reach out to your favourite protocol’s leadership and ask them to submit a proposal. Let them know this is a game-changing opportunity!

  • Amplify the Call: Share this news across your socials and let everyone in your network know about the $25M ETH RFP.

  • Engage and Collaborate: Discuss this opportunity in your protocol’s Discord or Telegram and rally the community behind the idea.

We’re counting on the communities behind these great protocols to make their voices heard. Your passion and advocacy can make all the difference.

APPLY NOW!

This is a perfect chance to:

  • Secure a share of $25M ETH for your protocol that will continually grow with sequencer revenue on Arbitrum.

  • Boost your protocol’s TVL, visibility, and activity.

  • Build your reputation with the Arbitrum DAO and its partners.

📥 Submit Your Proposal: Apply Here

📢 Spread the Word: Tag your protocol’s team on social media, start discussions, and rally support to make this a reality — amplify and engage with our thread here.

With $25M ETH on the table, this is your chance to make a lasting impact on Arbitrum and the wider DeFi ecosystem.

Courtesy of Atomist - Founder at Castle

🔑 KEY NEWS

MAJOR HEADLINES

PROJECT UPDATES

THREADS/READS

INTERESTING PROJECTS

Courtesy of CJ - check out his telegram channel for daily news, project updates and new releases

That’s all for this week. Stay sharp, stay curious, and keep building.

Working Blue Cat GIF by Cool Cats

In our newsletter, we may discuss projects or tokens in which we hold positions. While we aim to provide informative content, our views are not financial advice. Please conduct your research and consult professionals before making investment decisions. Crypto markets are volatile, and past performance doesn't guarantee future results. Invest responsibly, and be aware of the risks. Your capital is at risk, and we do not accept liability for any losses.

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