📉DeepSeek AI Launch Triggers Crypto Market Sell-Off

GM Defiers!

The cryptocurrency market was hit hard on Monday, dropping nearly 7%, with over $1 billion in liquidations following the launch of China’s DeepSeek AI model. On a more positive note, the Ethereum Layer 2 blockchain Abstract, developed by Igloo Inc., has officially launched its mainnet.

Meanwhile, Solana-based DEX aggregator Jupiter saw a 40% spike in its JUP token. Additionally, the pro-crypto Trump administration and a Republican-controlled Congress are expected to bring major regulatory changes that could benefit the crypto industry.

✍️ In today’s newsletter:

• DeepSeek AI launch sparks crypto market sell-off
• Solana-based social-fi protocol Tribe.Run gains momentum
• Cryptocurrency market drops 7% after china launches AI rival to ChatGPT
• Why real estate tokenization hasn't taken off yet
• Jupiter token surges after DEX aggregator reveals buyback plan using half of its fees
• Solana surpasses Ethereum in transaction fees
• Trump's crypto regulatory overhaul begins with SEC task force
• Abstract blockchain unveils mainnet

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🚨DeepSeek AI Debut Sparks Crypto Market Sell-Off Amid Rising Tech Competition

The launch of DeepSeek, a Chinese AI model aimed at competing with OpenAI's ChatGPT, caused a sell-off in U.S. tech stocks and a dip in the crypto market. However, analysts suggest that cheaper AI models like DeepSeek could ultimately benefit both the crypto and AI industries.

⬆️Solana-Based Social-Fi Protocol Tribe.Run Takes Off

Social-Fi gained traction in the crypto markets over the weekend as activity on Tribe.Run surged. Tribe, a Solana-based social media platform incubated by Alliance DAO, allows users to buy and sell tokens for access to exclusive chatrooms, much like FriendTech.

🤨Why Real Estate Tokenization Isn't Working Yet

MANTRA, a Layer-1 blockchain platform, and DAMAC Group, a leading UAE real estate developer, have announced a $1B deal to tokenize DAMAC’s real estate, hospitality, and data center assets by early 2025. However, without direct integration with Dubai’s land registry system, these tokens may remain illiquid.

📈Jupiter Token Spikes as DEX Aggregator Plans to Spend Half its Fees On Buybacks

Jupiter's JUP token spiked 40% on Sunday after the Solana DEX aggregator announced plans to use half of its fees for token buybacks.

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Web3 is often fragmented, with users struggling to manage multiple blockchains, wallets, and bridges. Okto is addressing this by adopting ERC-7683, a proposed Ethereum standard that simplifies cross-chain interactions. Instead of dealing with complex processes, users can express their goals—like swapping tokens—in a single message. Specialized "fillers" then handle the technical details, executing these tasks across chains. This reduces confusion, lowers costs, and improves efficiency. Okto is integrating ERC-7683 into its platform to create a more unified and decentralized Web3. Although still in draft status, ERC-7683 has gained support from major protocols like Across Protocol, Uniswap Labs, and Polygon Labs, aiming to make cross-chain transactions as seamless as browsing the internet.

Read More: Okto is building ERC-7683 on Solana: Way for a Unified Web3 Future

🗣️Trump’s Crypto Regulatory Changes Kick Off With SEC Task Force

With a pro-crypto Trump administration and a Republican-controlled Congress, major changes to crypto regulations are imminent. This includes potentially ending the Securities and Exchange Commission’s classification of all cryptocurrencies, except bitcoin and ether, as securities.

🏃🏻‍♂️‍➡️Solana Widens Lead Over Ethereum in Transaction Fees

Solana surpassed Ethereum in transaction fees by the end of last year, according to new data – but it's still behind Tron. This can be attributed to Ethereum’s March Dencun upgrade, which helped reduce transaction fees.

🆕Abstract Consumer-focused Blockchain Launches Mainnet

Abstract, the highly anticipated Ethereum Layer 2 blockchain developed by Igloo Inc., the parent company of Pudgy Penguins, is now live. This was confirmed in a Jan 27 post on X in which Abstract announced that its mainnet is up and running.

🤖Cryptocurrency Market Tumbles 7% Following Release of Chinese AI Rival to ChatGPT

The global cryptocurrency market dropped nearly 7% on Monday, with nearly $1 billion in liquidations, following the launch of China’s DeepSeek AI model. Bitcoin (BTC) fell 4% to $100,000 while Ethereum (ETH) dropped 6% to $3,100.

🌍 ELSEWHERE

• Chinese New Year may fuel 20% jump in bitcoin's price, report says (The Street)
• Metaplanet Plans $745 Million Fundraise for Bitcoin Investments (CoinMarketCap)
• TRUMP, XRP Surge 12% to Lead Crypto Rebound Ahead of FOMC Meeting (CoinDesk)

🔥TRENDING

• Solana-Based Social-Fi Protocol Tribe.Run Takes Off
• DeepSeek AI Debut Sparks Crypto Market Sell-Off Amid Rising Tech Competition
• Why Real Estate Tokenization Isn't Working Yet
• Jupiter Token Spikes as DEX Aggregator Plans to Spend Half its Fees On Buybacks
• Solana Widens Lead Over Ethereum in Transaction Fees
• Trump’s Crypto Regulatory Changes Kick Off With SEC Task Force