Crypto markets are poised for a dynamic start to the new year, a series Major events set to reshape sentiment and trading volume. From macroeconomic decisions by the Federal Reserve to protocol updates and legal actions, here are the key developments demanding close attention from investors:
#1 Crypto Awaits FOMC Minute Release (Jan 8)
On Wednesday, minutes of the December Federal Open Market Committee (FOMC) meeting are scheduled to be released, offering possible clues on policymakers’ deliberations and upcoming rate decisions. The minutes highlight the Federal Reserve’s latest approach to controlling inflation while supporting economic stability.
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The Fed cut US interest rates three times in a row after a heated debate in late 2024, although it Lowered its forecast For a total annual rate cut this year, down from four to two. Investors also recall Fed Chair Jerome Powell’s statement that “the decision to cut rates was a close call.” This underscores the importance of the coming minutes for anyone trying to predict how hawkish or hawkish the central bank might become during 2025.
#2 Base integration of THORChain
Cross-chain liquidity platform THORChain has confirmed that it will begin supporting Base – currently the largest by volume in Layer 2 – next week. According to THORChain’s development updates, this integration enables more efficient ETH-BTC swaps by preventing Ethereum’s mainnet congestion and unlocking new liquidity avenues through CBBTC. Market observers expect a significant increase in trading volume as the community takes advantage of cheap ETH-BTC swaps and expanded cross-chain capabilities.
#3 Jupiter’s Airdrop Checker
Jupiter, a leading Solana-based decentralized exchange (DEX) aggregator, is expected to release its airdrop eligibility checker this week. The event is part of “Jupuary,” a multi-year airdrop initiative scheduled for January 2025 and 2026, during which the protocol will distribute a total of $700 million worth of JUP tokens to its user base.
The project announced that the aim of this airdrop is to “enlarge the pie”, broadening the Jupiter community and increasing participation in one of the world’s most important decentralized autonomous organizations. Additionally, 30% of the token supply will be burned live at Jupiter’s Constantinople conference in late January.
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#4 General Fee Switch Activation (Jan 7)
In the decentralized finance (DeFi) space, the USUAL ecosystem is set to activate its fee switch on January 7, 2025. This marks an important change: USUAL holders who stake their tokens will begin receiving a share of the protocol’s revenue. By directly rewarding stakers with transaction fees, the protocol hopes to foster a more robust and engaged user base.
#5 Du Kwon’s Second US Trial (January 8)
Do Kwon, the founder of Terra, faced a Critical turning point in his legal battle His second hearing with US authorities is scheduled for January 8. After being extradited to the United States, Kwon now faces a maximum of 130 years in prison if convicted of fraud charges detailed in the Justice Department’s 79-page indictment.
The DOJ’s case adds new layers of allegations beyond those examined in the SEC’s civil actions, including allegations that Kwon acted with apparent criminal intent to mislead investors. As prosecutors present their case around the five alleged fraud schemes, among others, falsely advertising Terra’s stability, manipulating Luna Foundation guards and falsifying Chai’s use of Terra.
#6 GMX Trading Fees Cut (January 6)
Derivatives-focused exchange GMX is taking an important step to encourage higher trading volumes by reducing fees in all markets. Effective January 6, 2025, GMX will reduce open and close fees from 5 basis points (bps) and 7 bps to 4 bps and 6 bps respectively. The team via X said: “To kick off 2025 in style, GMX is slashing trading fees across all markets! Starting this Monday, January 6, open and close fees for all positions will drop from 5 bps / 7 bps to 4 bps / will be 6 bps.”
However, instead of a blanket rate of 4.5 bps, the new structure introduces a sliding scale: traders who enter positions that improve the balance between longs and shorts pay a lower 4 bps fee, while those who create an imbalance Increases pay 6 bps. According to GMX, “This adjustment ensures balanced open interest, which in turn keeps funding fees and price impact low.”
Also, GMX has updated the liquidation fee to 20 bps for asset-backed markets and 30 bps for synthetic markets. GMX developers believe that, together, these measures will reduce business costs, promote balanced market participation, and enhance the overall user experience.
At press time, the total crypto market cap was $3.45 trillion.
Featured image created with DALL.E, chart from TradingView.com
