By Frank Martin (MoneyAmped.com)
The first week of the year was marked by numerous crypto stories. Here are some that made headlines.
77% of Bettors Believe Solana ETF Approval is Imminent, Polymarket Data Shows
The chances of a Solana ETF (Exchange-Traded Funds) entering the US market in 2025 have increased significantly in the past few weeks. Data from decentralized prediction protocol PolyMarket shows the odds that the US SEC (Securities and Exchange Commission) will approve this type of ETF have surged to 77%.
Similarly, VenEck’s head of crypto research, Matthew Sigel, is optimistic that US investors will have access to a Solana spot ETF this year. He adds that more crypto-based ETFs will be approved by Donald Trump’s government as part of the Republican’s mission to make the United States ‘the World’s cryptocurrency hub.’
Terraform Founder Do Kwon Pleads Not Guilty
On January 2, Terraform founder Do Kwon was presented to the court, where he pleaded not guilty to the many charges brought against him. The fallen crypto mogul submitted his plea to Manhattan-based Judge Robert Lehrburger, who ordered law enforcement to hold him without bail.
As mentioned, Do Kwon is facing several charges, including wire fraud, commodities fraud, money laundering, and securities fraud. He is accused of playing a critical role in the downfall of the Terra ecosystem, which caused investors to lose billions of dollars.
This recent legal hearing marks a massive milestone in Do Kwon’s case, which has faced numerous challenges in the past two years as Montenegrin prosecutors attempted to block the extradition of the former crypto billionaire to the US.
The next hearing happens on January 8. That day, US prosecutors will share evidence that led to the arrest of Do Kwon.
Dragonfly VC expects AI Agent Coins to Outperform Meme Coins in 2025
Venture capitalist Dragonfly VC predicts that AI agent tokens will post higher gains than meme coins in 2025. However, the firm doesn’t see the trend continuing to 2026, arguing that more advanced AI products will be launched in the coming months, making people lose interest in the current social media chatbots.
Over the past few months, AI agent chatbots, especially those on X, have risen in popularity among crypto users thanks to their ability to offer market insights and price predictions.
It is worth mentioning that AI Agent tokens have seen their total market cap rise 1.23% to $14.053 billion, while that of meme coins has declined 0.69% to $114.92 billion in the past 24 hours, according to data from CoinMarketCap.
China Introduces New Rules, Limits Access to Digital Assets
Chinese State Admistration of Foreign Exchange announced new rules last week requiring all banks to block risky crypto trades, making it more challenging for citizens to purchase digital currencies.
Under the new regulations, financial institutions must track and report the crypto trading activities of their customers, along with their sources of funds.
According to Chinese lawyer Liu Zhengyao, these rules are a punishment for crypto users and hinder adoption in the country.
IRS Postpones Its FIFO Rule
American tax agency IRS announced at the start of the year that its FIFO (First IN, First Out) automatic rule will take effect in 2027, not this year, as revealed earlier. When centralized exchanges begin implementing this rule, users who fail to choose their preferred accounting method will see their capital gains calculated using the FIFO method, which assumes that the oldest crypto purchased is sold first. This method usually causes crypto holders to pay a higher capital gain tax.
Winners and Losers
Bitcoin, the leading cryptocurrency by market cap, has been in a recovery mode for the past seven days. It has rallied 6.1% to $99,302 as of this writing.
Notable gainers since the start of 2025 include DEXE, which is up 58%, and Fartcoin, which has surged 39%. Regarding top losers, Hyperliquid and Bitget Token lead the way with 16% and 15.32% losses, respectively.
