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Ethereum Layer 2s Surge Past 10M Active Addresses, Transaction Volume Hits 5.19x Mainnet Levels

Abdulkarim Abdulwahab
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Ethereum Layer 2s Surge Past 10M Active Addresses, Transaction Volume Hits 5.19x Mainnet Levels

Ethereum Layer 2 solutions are kicking off 2025 with remarkable momentum, as the number of weekly active addresses climbs to 10.18 million.

The present figure marks a 6.84% increase compared to the previous week. Accordingly, this surge brings Layer 2 engagement close to its all-time high, reflecting the growing adoption of these scaling solutions.

According to data from GrowThePie.xyz, Layer 2 platforms are now handling 5.19 times the transaction volume of the Ethereum mainnet.

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Data from GrowThePie 

Ethereum L2s Leading the Activity Ranking

Among the Ethereum Layer 2 solutions leading this charge are the Base blockchain by Coinbase, Arbitrum, Taiko, and Optimism.

Regarding total value locked (TVL), Arbitrum leads with the highest value, boasting $18.45 billion. Following closely is the Base network with $14.49 billion TVL, while Optimism ranks third with $7.41 billion TVL.

In terms of transaction count, Base leads with 10.84 million transactions, while Arbitrum comes next with 2.2 million yearly transactions. Essentially, Arbitrum trails far behind Base with a margin of around 8 million transactions.

Notably, these massive transaction counts for both networks are reflected in their revenue figures. Arbitrum’s yearly revenue stands at $62,970, while Base boasts a much higher yearly revenue of $603,510.

Furthermore, Base also emerged as the leader in terms of active addresses, with 793,550 active addresses. Arbitrum came second with 334,970 active addresses.

Overall, the consistent rise in Layer 2 activity, especially since mid-2023, points to their critical role in scaling Ethereum to meet growing demand. Users are increasingly leveraging these solutions for DeFi applications, NFT trading, and other on-chain activities without the high costs historically associated with Ethereum’s mainchain.

In terms of transaction fees, Base ranks at position 16 despite its relatively low fee of $0.013, with other platforms offering even lower transaction cost.

Over the last week, the total number of addresses interacting with multiple Layer 2 chains slightly declined by 19.81% compared to the previous week.

Barcelona Partners Cardano to Revolutionize Fan Engagement

Lele Jima
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Barcelona Partners Cardano to Revolutionize Fan Engagement

Popular football club FC Barcelona is moving to revolutionize fan engagement and create global opportunities through its partnership with Cardano. 

This collaboration was first announced last year on LinkedIn. However, the initiative did not gain the publicity it deserves until recently after Frederik Gregaard highlighted the partnership today in an X post. 

According to the post, the partnership is unique as it aims to shape the club’s destiny. Gregaard mentioned that Barcelona stands out as a community-owned club, boasting over 150,000 members (Socis) and more than 1,200 fan clubs (Penyes). Like Barcelona, the Cardano ecosystem is also powered by its community members. 

Details of the Partnership 

Under the partnership, Barcelona will empower its fans through various initiatives. They include creating job opportunities for young supporters, leveraging blockchain tech to educate fans, and distributing rewards to community members through NFTs and ADA tokens. 

The partnership’s primary focus is Barça Vision, a platform that aims to bolster fan experience by integrating Web3 and artificial intelligence (AI).

This will ultimately lead to the creation of BarçaVerse, which helps connect Barcelona fans globally, aligning with Cardano’s core values. According to the announcement, the initiative is powered by Cardano’s Andamio network. 

The network operates on a learn-work-reward model. Specifically, fans must learn valuable skills before applying this knowledge to various tasks and projects, like the recently concluded 125th anniversary. Afterward, these participants will receive NFTs and ADA as rewards. This will transform Barcelona supporters into active contributors from passive fans. 

Furthermore, the partnership also extends to Cardano’s NFT infrastructure provider, NMKR. This initiative simplifies creating and managing NFTs on Cardano, allowing fans to engage with digital collectibles while onboarding new users to the Cardano ecosystem. 

Impact and Roadmap of the Collaboration 

The strategic impact of the partnership on Cardano cannot be overemphasized. The ecosystem could leverage Barcelona’s fan base to drive the adoption of its network, with over 1 million new transactions expected to be recorded. 

This influx of users is expected to boost the overall network activity and showcase Cardano’s potential for real-world applications. 

Unlike most partnerships, the collaboration between FC Barcelona and Cardano has a precise roadmap with milestones. These include developing and launching the platform, creating content, onboarding community members, and evaluating users’ feedback. 

Crypto Leaders Lobby Donald Trump to Approve US Bitcoin Reserve in First 100 Days: Reuters Report

Elendu Benedict
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Crypto Leaders Lobby Donald Trump to Approve US Bitcoin Reserve in First 100 Days: Reuters Report

Crypto industry leaders are lobbying Donald Trump to implement promised regulatory changes in the digital asset sector in his first 100 days in office.

Donald Trump’s inauguration date is January 20, and the digital asset industrial leaders want an immediate swing to action.

According to a Reuters report citing people familiar with the issue, the ongoing lobby could result in a flurry of executive orders on crypto regulation in the first 100 days in office, with at least one on inauguration day.

“Given the tenor of the campaign, it would be imperative for executive orders to really set out what the actual priorities will be on day one and provide some kind of roadmap.” Polygon Labs’ chief legal officer, Rebecca Rettig, stated.

Crypto Industry Expects Bitcoin Stockpile in First 100 Days

For context, Donald Trump made several promises to the crypto community while vying for its support in pre-elections. Some of these included a friendlier environment for the nascent industry and the creation of a US Bitcoin strategic reserve.

On crypto policies, Trump assured the sector it would clamp down on regulations restricting interactions with the traditional banking system and allow the industry to operate freely.

Meanwhile, the industry expects an executive order on the establishment of a US Bitcoin stockpile in the first 100 days. While Trump cannot entirely persuade Congress to approve the Lummis Bitcoin Act bill, an alternative means—the United States Treasury’s ESF—exists.

The Bitcoin Policy Industry has already drafted the bill, with an endorsement from Trump and the Treasury Secretary remaining. The bill would allow the United States to create a Bitcoin reserve through the Exchange Stabilization Fund (ESF), allocating $521 billion to the course.

Trump is particularly fond of the Bitcoin reserve idea. During the 2024 Nashville Bitcoin Conference, he promised never to sell America’s Bitcoin but would ensure the country owns more of the asset teased to help pay off their national debt.

Trump to Lift Banking Restrictions

The crypto industry has also seen discrimination from the banking sector, sponsored by fears of regulatory scrutiny. Ripple’s CEO Brad Garlinghouse once disclosed how he and other crypto leaders were debanked due to ties with the digital asset industry.

Trump looks to shift this trend by encouraging the financial sector to lobby more with the crypto industry. However, this could be tricky since the regulators of the federal banking system are independent.

Meanwhile, Trump has made significant progress with his promises to the crypto industry. He has appointed pro-crypto Paul Atkins to head the US Securities and Exchange Commission (SEC) and tapped David Sacks as the White House crypto czar.

The Trump transition team has also progressed in forming a crypto advisory team for the White House. With several crypto industry leaders on the radar, the team will advise the president on issues related to the digital sector.

Analyst Says Ethereum Will Explode to $7K if This Happens

Okoya David
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Analyst Says Ethereum Will Explode to $7K if This Happens

Prominent crypto analyst Ali Martinez suggests that Ethereum could be set to kick off an explosive rally.

Like most crypto assets, Ethereum, the second largest crypto by market capitalization, has had a wild start to the year. After an initial rally in the first week, the asset is back in the red, trading just below its 2025 opening price of $3,330.52.

However, one analyst has now suggested that Ethereum’s recent price action could be fulfilling a pattern that might lead to an explosive price rally.

Ethereum to $7K?

Prominent crypto analyst Ali Martinez has suggested that Ethereum could be set to kick off an explosive rally. In an X post on Thursday, January 9, he asserted that the asset could rally to the $7,000 price point if it dips to $2,900.

For context, Ethereum is trading just below $3,300 at the time of writing. A surge to $7,000 would represent an over 110% increase from current prices.

ETHUSDT 12 hour candle chart showing inverted head and shoulders formation
ETHUSDT 12 hour candle chart showing inverted head and shoulders formation. Source: Ali Martinez

Martinez based his analysis on a potentially bullish inverted head-and-shoulders chart pattern formation on Ethereum’s 12-hour candle chart.

The analyst believes that a drop to $2,900 could mark the completion of the right shoulder of this pattern, kicking off a rally first to the neckline around $4,000 and then to the $7,000 target.

Interestingly, this target aligns with Bitwise’s Ethereum prediction for 2025. The firm’s CIO, Matt Hougan, has long argued that the asset could be a “contrarian play” for 2025, citing its dominance in sectors like DeFi and tokenization.

If the rally plays out, it would be a big relief to Ethereum holders, who have become a meme in recent times amid the asset’s price struggles. These struggles have seen it underperform Bitcoin and Solana for two consecutive years.

Cardano Founder Says Ripple Paid $5M to Have Dinner with Donald Trump

Abdulkarim Abdulwahab
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Cardano Founder Says Ripple Paid $5M to Have Dinner with Donald Trump

Charles Hoskinson, the founder of Cardano, recently claimed that Ripple spent a significant amount to secure a private dinner with President Donald Trump ahead of his inauguration.

The conversation unfolded on X after Jillian Plomin, CEO of Cardano’s stablecoin USDM, joked about attending a Cardano Las Vegas event, asking if it was a “Cardano dress occasion.” 

Specifically, she polled community members about attending the Hydra Doom tournament. Hoskinson humorously responded that he would even skip Trump’s inauguration so that he could attend the event instead.

When an X user suggested he might not have been invited, Hoskinson clarified that this was not the case. In fact, he said he would be sending a team of 10 to Trump’s inauguration.

Further explaining his disinterest in the event, he stated that he would make time for private dinners with the Trump administration when appropriate. Hoskinson emphasized that he was not in a hurry to engage in lobbying activities with policymakers.

In this context, he mentioned that Ripple executives secured their private meeting with Trump by pledging a significant sum. “Ripple paid $5 million for their dinner with Trump,” he said.

At the same time, the Cardano founder expressed that he wasn’t interested in the paparazzi but in making meaningful policy changes.

Clarification About Ripple’s $5M “Payment”

It is worth noting that the $5 million Hoskinson referred to likely pertains to the monetary contribution Ripple made to Trump’s inaugural committee in December 2024.

As reported earlier, Ripple pledged $5 million worth of XRP to support the inauguration celebrations of Donald Trump. The donation was to fund the three-day event, including dinners, parades, and galas, around Trump’s inauguration on January 20, 2025.

Interestingly, a few weeks after the pledge, specifically on the night of January 7, Ripple’s top executives—CEO Brad Garlinghouse and CLO Stuart Alderoty—had a dinner with Trump.

Ripple’s CEO posted a photo of the meeting on X, captioning it as a “strong start to 2025.” 

Commenting on the development, Hoskinson shared his disinterest in such photo opportunities. He stressed the importance of influencing crypto regulations through policy rather than high-profile events.

“I’m not looking for a photo. I’m looking for meaningful, bipartisan policy change,” he said.

Overall, the dinner and Ripple’s significant financial contributions are part of a broader strategy to influence crypto policy under Trump’s administration. The crypto industry, in total, donated over $200 million to Trump’s campaign and inauguration.

Why Ethereum is the Contrarian Play for 2025 According to Bitwise CIO

Okoya David
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Bitwise CIO Matt Hougan contends that Ethereum remains promising despite 2024 price struggles.

For most crypto assets, especially market leaders Bitcoin and Solana, 2024 was an extremely positive year that led to rallies to new highs. However, with Ethereum, most investors were left feeling underwhelmed as it failed to spark a rally to new highs and managed only a 46% gain.

Nonetheless, Ethereum still looks promising and could have some goodies in store for investors, at least according to Bitwise CIO Matt Hougan.

The “Contrarian” Play for 2025

Ethereum may offer a great “contrarian play” for 2025, according to Bitwise CIO Matt Hougan. The market analyst expressed this view in a clip shared by Altcoin Daily on Wednesday, January 8. This clip notably originates from an October 2024 interview with the platform.

Hougan explains that there is always the temptation to write off Ethereum as it is not the OG blockchain Bitcoin or new and shiny like some of its supposed “killers” such as Solana, Aptos, and SUI. However, he notes that this may be foolhardy.

Hougan highlights that Ethereum remains promising despite its price struggles as it continues to dominate every blockchain use case, from DeFi to stablecoins to tokenization.

He also points out that Ethereum has a strong appeal among traditional finance institutions. 

Despite Hougan’s views, Ethereum, like most other crypto assets, has not had the best start to the year.

Macroeconomic Headwinds 

After an initial rally in the first week of January 2025, Ethereum is back in the red, trading at $3,319.65, just below its 2025 opening price of $3,330.52. The muted price action comes amid macroeconomic headwinds. Specifically, stronger-than-anticipated U.S. economic data have dampened interest rate cut hopes.

Despite these initial struggles, most researchers expect the asset to at least nearly double in price in 2025. Bitwise, for example, has predicted Ethereum will trade for $7,000 this year.

Here is Ripple Potential Valuation After IPO

Sam Wisdom Raphael
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Here is Ripple Potential Valuation After IPO

XRP community commentators, including top U.S. attorney John Deaton, discuss the potential valuation for Ripple following its IPO.

Notably, Ripple is again at the center of growing speculation about its potential valuation if it goes public. This speculation follows Donald Trump’s victory in the November 2024 U.S. presidential election and the anticipated resignation of SEC Chair Gary Gensler, known for his aggressive stance on crypto. 

Ripple’s CEO, Brad Garlinghouse, has hinted that the company could reconsider an IPO, a prospect previously dismissed due to regulatory pressures.

Ripple Valuation Speculation  

Nietzbux, a prominent XRP community commentator, recently presented a valuation model for Ripple if it IPOs. According to Nietzbux, Ripple could potentially trade at three times the value of its XRP holdings, similar to how MicroStrategy trades in respect to its net asset value.

Ripple’s massive XRP holdings alongside its intrinsic business value could set it up as a major public company. Nietzbux suggested that this structure could also reduce Ripple’s need to sell XRP. Notably, this would align the company’s incentives with XRP’s broader market performance.

Meanwhile, pro-crypto attorney and 2024 Massachusetts Senate candidate John Deaton expanded on these ideas, citing specific figures. The attorney referenced a previous analysis from market veteran Peter Brandt. 

As reported by The Crypto Basic, the market analyst suggested that if XRP breaks out of its current consolidation pattern, its market capitalization could potentially hit $500 billion. 

While Brandt emphasized this scenario as possible rather than probable, such a market cap places XRP’s price at $8.72. Interestingly, Deaton pointed out that this valuation would elevate XRP above Ethereum’s current market cap of $444 billion, making it the second-largest crypto after Bitcoin.

Ripple’s XRP Holdings and Potential Impact  

The U.S. attorney then highlighted that Ripple currently holds about 40 billion XRP in escrow. Specifically, this figure has dropped to 37 billion XRP following recent escrow releases, including the one for January 2025.

Deaton pointed out that these XRP tokens are not on Ripple’s balance sheet, differentiating it from companies like MicroStrategy that directly account for their crypto assets. At an XRP price of $8.72, the attorney suggests the value of Ripple’s holdings would grow to $348.8 billion. 

Applying the valuation multiple used by MicroStrategy (3x its net asset value), Ripple could theoretically be worth over $1 trillion. Notably, this projection includes its XRP holdings and overall business value.

Deaton also called attention to Ripple’s recent buyback of $285 million in Series C shares at a valuation of $11-12 billion. He believes this buyback provided a 50% return on investment for Series C investors. According to Deaton, if XRP does reach $8, this move would demonstrate Ripple’s foresight.

However, the attorney confirmed that these are mere speculations based on available data, and there is no guarantee that XRP would even reach $8 or that Ripple’s valuation could hit $1 trillion. He also speculates that Ripple may consider an IPO by late 2025 or early 2026.

Bitcoin Bears Target $90K as BTC ETFs See $582M Outflow

Albert Brown
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Bitcoin Bears Target $90K as BTC ETFs See $582M Outflow

Amid a crypto market downturn, Bitcoin bulls are holding support at $92K. Will this lead to a recovery run this weekend?

The total market cap has dropped to $3.28 trillion as the crypto market continues to slide. With increasing bearish sentiment, Bitcoin has fallen below the $94,000 mark.

After a 2.28% drop in the past 24 hours, will Bitcoin continue its descent to retest the $90,000 level?

Bitcoin Price Analysis

On the 4-hour Bitcoin price chart, the bearish reversal from the $102,557 supply zone continues to gather momentum. Bitcoin has broken below the $95,119 support level and is now testing the $92,654 support level.

Bitcoin Price Chart
Bitcoin Price Chart

After a minor 0.35% recovery over the past 4 hours, the lower price rejection offers a glimmer of hope. However, the ongoing correction has triggered bearish crossovers between the 50 and 100 EMA lines, as well as the 20 and 200 EMA lines.

These crossovers are signaling a bearish trend, indicating a potential sell-off.

However, the RSI is showing a bullish divergence as it moves sideways, slightly above the oversold boundary. This suggests that a reversal could be in the cards despite the falling BTC price.

Bitcoin ETFs Outflow Hits $582 Million

As Bitcoin fails to maintain dominance above $94K, US Bitcoin spot ETFs have experienced the second-largest outflow ever recorded.

On January 8, Bitcoin ETFs saw a massive outflow of $582.90 million. Specifically, the negative flow was led by Fidelity’s FBTC, which saw an outflow of $258.69 million. Meanwhile, Ark Invest followed with a $148.3 million drain, while BlackRock saw a $124 million outflow.

Other Bitcoin ETFs like WisdomTree, VanEck, and Coinshares Valkyrie recorded zero flow from Wednesday trading.

Bitcoin ETFs
Bitcoin ETFs

BTC Price Targets

Based on the current price action, a bullish recovery could retest the $95,119 support and resistance level, followed by the $99,514 resistance.

On the other hand, a breakdown below the $92,654 support level could push Bitcoin toward the psychological $90,742 mark.

Shiba Inu Holds Support at $0.000020: Will Bulls Reclaim Control?

Albert Brown
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Shiba Inu Holds Support at $0.000020: Will Bulls Reclaim Control?

Will Shiba Inu (SHIB) prices rebound to the $0.00002332 resistance as RSI divergence sparks bullish optimism?

With Dogecoin dropping 3% over the past 24 hours, Shiba Inu has experienced a similar decline. Shiba Inu’s seven-day return now stands at negative 7% amid the bearish market, pushing its market price closer to the psychological level of $0.000020.

With a market cap of $12.51 billion, Shiba Inu remains the second-largest meme coin. However, broader market conditions continue to create uncertainty for the SHIB price trend.

Shiba Inu Price Analysis

On the 4-hour chart, Shiba Inu’s price action shows a failed attempt to break through a resistance trendline. This also highlighted a strong supply zone near the 50% Fibonacci level at $0.00002489.

Shiba Inu price chart
Shiba Inu price chart

Additionally, the bearish reversal from this local resistance caused the price to drop below the 38.20% Fibonacci level at $0.00002322. Currently, Shiba Inu is testing the bullish support at the 23.60% level at $0.00002130, as well as the critical psychological level at $0.000020.

With several lower price rejections, Shiba Inu has entered a short-term lateral phase. The bearish pressure has also pushed the 20-EMA line below the 50-EMA, confirming a bearish alignment between the moving averages.

However, the 4-hour RSI has entered the oversold zone and has since leveled off. This shows a minor bullish divergence, which increases the possibility of a potential reversal.

SHIB Price Targets

Based on previous price action in late December, Shiba Inu could begin a new consolidation range, expected to fluctuate between the 23.60% and 38.20% Fibonacci levels.

Currently, Shiba Inu’s market price stands at $0.00002121, close to the 23.60% Fibonacci level. If the price retests these levels, it could challenge the upper boundary of the potential consolidation range at the 38.20% Fibonacci level.

On the other hand, a bearish close below the psychological $0.000020 zone could lead to a further decline toward $0.00001853.

Two More US Public Firms Add Bitcoin to Balance Sheets with Massive BTC Stockpile

Albert Brown
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A growing number of publicly traded companies are incorporating Bitcoin into their financial strategies in the U.S.

Recent announcements from firms like Thumzup Media and KULR Technology Group reflect this trend. These moves underscore Bitcoin’s increasing role as a treasury asset for businesses worldwide.

Bitcoin Acquisitions by Thumzup and KULR

Thumzup Media, a Los Angeles-based social media marketing firm, revealed its first Bitcoin purchase this week, totaling approximately $1 million. The company intended to hold up to 90% of its liquid assets in Bitcoin. Moreover, Thumzup plans to implement Bitcoin payments for contractors in the coming weeks.

Similarly, San Diego-based KULR Technology Group, an energy storage solutions provider for aerospace and defense, announced a $21 million Bitcoin purchase. This latest acquisition doubles the firm’s holdings, bringing its Bitcoin treasury to $42 million.

KULR made its initial Bitcoin investment less than two weeks ago and aims to allocate up to 90% of its liquid assets to Bitcoin. 

Other US Companies Holding Bitcoin

With this latest move, Thumzup Media and KULR have joined the growing list of major U.S. companies investing in Bitcoin. Data from Bitcointreasuries.net highlights over 152 public U.S. corporations holding Bitcoin. Remarkably, they boast a corrective holding of 2.95 million BTC tokens.

MicroStrategy leads the pack with its most recent acquisition of 1,070 BTC at a cost of $101 million. This addition brings the company’s total Bitcoin holdings to an impressive 447,470 BTC as of January 6, 2025.

Industry Experts Speak

Beyond these U.S.-based firms, Bitcoin adoption continues to grow globally. Galaxy Digital CEO Michael Novogratz highlighted the increasing global attention Bitcoin is receiving in a statement. He attributed much of the interest to U.S. President-elect Donald Trump’s endorsement of the cryptocurrency.

He observed that while Trump’s praise for Bitcoin has brought it into the spotlight, other nations are closely monitoring its potential and implications. According to Novogratz, Trump’s proposal to establish a strategic Bitcoin reserve has prompted other countries to consider similar measures.

Bhutan’s New Reserve Asset with Bitcoin

Furthermore, in South Asia, Bhutan’s newly established Gelephu Mindfulness City (GMC) became one of the first regions to integrate digital assets into its strategic reserves.

In its financial strategy, GMC plans to prioritize high-liquidity digital assets, including Bitcoin, Ethereum, and Binance Coin. The move follows the enactment of the Application of Laws Act 2024, which introduced a regulatory framework for digital assets within the region.

The strategy emphasizes selecting digital assets with substantial market capitalization and strong liquidity. These attributes are crucial to ensure the assets can be traded efficiently with minimal influence on market prices.

Furthermore, the region has outlined its commitment to exclusively utilizing assets originating from secure and well-established blockchain networks.

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