As we step into the new year, the cryptocurrency market has experienced a noteworthy surge, delivering mixed signals that warrant attention from investors and enthusiasts alike. Staying informed about these developments is essential for making sound investment decisions. Here’s a closer look at the latest trends and key performers in the crypto space this week.
Market Overview
The cryptocurrency market has made impressive strides this week, with the total market capitalization rising from $3.19 trillion to $3.41 trillion, reflecting a growth of 6.89%. The altcoin market has outperformed expectations as well, jumping from $1.34 trillion to $1.47 trillion—a remarkable increase of approximately 9.7%. Notably, the total crypto market cap, excluding the top ten cryptocurrencies, recorded a rise of 11.59%.
US Market Update
In the broader financial landscape, the US Standard and Poor’s 500 index faced a downturn of 0.88% over the past week. However, the global market displayed a more varied performance: Europe saw growth of 0.67%, Japan increased by 1.91%, while India and Australia rose by 0.85% and 0.16%, respectively. Conversely, China and South Africa experienced declines of 5.48% and 0.34%.
This week has also been pivotal for the US economy with several key index releases. In November, the Pending Home Sales year-over-year surged from 5.4% to 6.9%. This positive news was somewhat offset by a drop in the Chicago PMI from 40.2 to 36.9 points in December. The Dallas Fed Manufacturing Index, however, showed improvement, rising from -2.7 to 3.4 points.
Currency Trends
The US dollar has exhibited strength against major currencies, with the Euro appreciating by 1.08%, the Chinese Yuan by 0.3%, and the Indian Rupee by 0.43% against the dollar. In contrast, the Japanese Yen weakened by 0.31%. The outlook for the US economy in 2025 remains optimistic, driven by robust consumer spending, increasing real incomes, and a stable labor market.
Bitcoin and Ethereum Highlights
Bitcoin Performance
Bitcoin has also shown resilience, with a growth rate of 5.87% this past week. On December 30, its price dipped to $92,802.93, but by January 3, 2025, it reached a peak of $98,980.05. Currently, Bitcoin is trading at approximately $98,023.99, just 0.96% below its weekly high.
Ethereum Growth
Ethereum has posted even stronger gains, increasing by nearly 7.05%. The price was $3,361.95 on December 30, but after a brief dip to $3,337.65 on December 31, it rebounded to a weekly high of $3,630.09 on January 3. Currently, Ethereum is valued at $3,591.11, about 1.07% off its peak.
Top Cryptocurrencies of the Week
The first week of January has been largely favorable for the crypto sector, with almost all top ten cryptocurrencies recording gains. Apart from Bitcoin and Ethereum, notable performers include:
- XRP: +14.5%
- BNB: +3.4%
- Solana: +17.6%
- Dogecoin: +24.5%
- Cardano: +25%
Trending Categories and Cryptocurrencies
This week has also seen a rise in interest in specific categories and cryptocurrencies. The top five trending categories include:
- PolitiFIi
- The Boy’s Club
- Frog-Themed
- Elon Musk-Inspired
- AI Agents
Among cryptocurrencies, the following have emerged as top performers:
- Bio Protocol
- ai16z
- Sui
- Virtuals Protocol
- Hyperliquid
Of these, ai16z has shown the highest weekly growth at 75.8%.
Market Categories Overview
In terms of market cap growth across various categories over the last week:
- Currency: +4.36%
- Chain: +9.32%
- Stablecoins: +0.31%
- Meme Coins: +21.7%
- DeFi: +6.96%
- Blockchain Infrastructure: +8.98%
- Blockchain Services: +11.4%
- GameFi: +11%
- NFT: +5.67%
- Social: +2.12%
However, the CeFi market cap has seen a decline of approximately 5.82% during the same period.
As the cryptocurrency landscape continues to evolve, it’s crucial to stay informed and adapt to the latest trends and market dynamics.
