This Week’s Top Crypto Catalysts: What Investors Need To Watch

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2022 is expected to bring an exciting kickoff for the cryptocurrency market, as several significant occurrences are on the horizon that could influence investor sentiment and trading activity. These events range from economic policies by the Federal Reserve to protocol modifications and court cases. Here’s a look at the crucial updates that investors should keep tabs on:

1. Fed’s Monetary Policy Decisions
2. Updates in Cryptocurrency Protocols
3. Legal Proceedings Affecting Cryptocurrencies

#1 Crypto Awaits The FOMC Minutes Release (January 8)

On this coming Wednesday, we can expect the transcript from the December FOMC meeting to be made public. This document will provide valuable insights into the discussions among policymakers and potentially give us clues about future rate adjustments. The disclosure will also reveal the Federal Reserve’s current strategy for managing inflation while maintaining a balanced economy.

In late 2024, the Federal Reserve lowered U.S interest rates three times in a row following a contentious discussion, even though it scaled back its prediction for the total number of rate reductions this year from four to two. This decision was a tight call, as stated by Fed Chair Jerome Powell. As such, the upcoming meeting minutes will be significant for anyone trying to determine whether the central bank will lean more towards aggressive action or cautious approach throughout 2025.

#2 THORChain’s Base Integration

As a crypto investor, I’m excited to share that next week, THORChain, a cross-chain liquidity platform, is set to support Base, currently the largest Layer 2 by volume. This integration, as per THORChain’s development updates, promises more efficient ETH–BTC swaps by bypassing Ethereum‘s mainnet congestion and opening up new liquidity paths through cbBTC. Market watchers are predicting a significant increase in trading volume as the community capitalizes on cheaper ETH-BTC swaps and expanded cross-chain functionalities.

#3 Jupiter’s Airdrop Checker

It’s anticipated that this week will see the release of an eligibility checker for an upcoming airdrop by Jupiter, a prominent Solana-based decentralized exchange (DEX) aggregator. This event is part of “Jupuary,” a multi-year airdrop program starting in January 2025 and 2026, during which the platform plans to distribute approximately $700 million in JUP tokens to its users over the course of this initiative.

The project states that the airdrop intends to expand the size of the Jupiter community and increase engagement within one of the world’s largest decentralized autonomous organizations, colloquially known as “growing the pie.” Furthermore, during its Castanbul conference in late January, 30% of the token’s supply will be burned live.

#4 USUAL Fee Switch Activation (January 7)

In the world of Decentralized Finance (DeFi), the USUAL system is preparing for a significant change that will take effect on January 7, 2025. This transformation involves activating a fee switch. Once activated, those who hold USUAL tokens and choose to stake them will begin earning a portion of the system’s income generated from transactions. The protocol aims to encourage a more active and involved user community by directly compensating stakers with transaction fees.

#5 Do Kwon’s Second US Hearing (January 8)

In the legal battle between Terra founder Do Kwon and U.S. authorities, his second court appearance is set for January 8. Having been transferred to the United States, Kwon now faces a potential sentence of up to 130 years in prison if found guilty on the extensive fraud allegations outlined in the Department of Justice’s 79-page indictment.

In a fresh development, the Department of Justice’s case against Kwon introduces additional charges not previously explored in the SEC’s civil trials. These new allegations suggest that Kwon knowingly deceived investors with clear criminal intent. As the prosecutors construct their case around five suspected fraudulent activities, they claim Kwon falsely marketed Terra as stable, manipulated the Luna Foundation Guard, and fabricated Terra’s usage by Chai.

#6 GMX Trading Fees Reduction (January 6)

In a move aimed at boosting trading activity, derivatives-centric exchange GMX is planning a significant stride by reducing fees across all markets starting January 6, 2025. As of this date, the open and close fees will be lowered from 5 basis points (bps) to 4 bps for opening positions and from 7 bps to 6 bps for closing positions. The team announced the change via X, saying: “Welcome 2025 with lower trading fees! Starting on Monday, January 6, all markets will see a reduction in open and close fees to 4 bps / 6 bps.

Instead of a fixed rate of 4.5 basis points (bps), the revised structure introduces a tiered system: traders who establish positions that enhance the equilibrium between long and short positions will be charged a lower fee of 4 bps, while those who exacerbate imbalances will incur a higher fee of 6 bps. As explained by GMX, this adjustment maintains a balanced open interest, resulting in reduced funding fees and minimal price impact.

At the same time, GMX has increased liquidation fees to 20 basis points in asset-backed markets and 30 basis points in synthetic markets. The creators of GMX are confident that these changes will lower trading expenses, encourage a balanced market participation, and improve the overall user experience.

At press time, the total crypto market cap stood at $3.45 trillion.

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2025-01-07 01:34