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Crypto markets are poised for a strong start to the new year, with a series of key events set to reshape sentiment and trading volumes. From macroeconomic decisions made by the Federal Reserve to protocol updates and legal procedures, here are the key developments that demand the most attention from investors:
#1 Crypto Awaits Release of FOMC Minutes (January 8)
On Wednesday, the minutes of the Federal Open Market Committee’s (FOMC) December meeting are scheduled to be released, providing details on policymakers’ discussions and possible hints at future rate decisions. The minutes will outline 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 annual rate cuts this year from four to two. Investors also remember Fed Chairman Jerome Powell’s statement that “the decision to cut rates was a close call.” This underscores the importance of the coming minutes for anyone looking to gauge how hawkish or dovish the central bank might be in mid-2025.
#2 THORChain’s Base Integration
Cross-chain liquidity platform THORChain has confirmed that it will start supporting Base—currently the largest Layer 2 by volume—next week. According to THORChain development updates, this integration facilitates the ETH-BTC exchange by avoiding congestion on the Ethereum mainnet and opening up new ways to monetize cbBTC. Market watchers are expecting a significant increase in trading volume as the public uses the cheaper ETH-BTC swaps and the expanded linking capability.
#3 Jupiter’s Airdrop Checker
Jupiter, the leading Solana-based decentralized exchange (DEX) aggregator is expected to release its airdrop validity tester this week. The event is part of “Jupuary,” a multi-year airdrop initiative scheduled for January 2025 and 2026, where the protocol will distribute a total of $700 million in JUP tokens to its user base.
The project has announced that this airdrop aims to “grow the pie,” expand the Jupiter community and encourage participation in one of the world’s largest independent organizations. Additionally, the Jupiter conference in Castanbul in late January will have a live burn of 30% of the token offering.
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#4 COMMON Payment Change (January 7)
For decentralized finance (DeFi) platforms, the USUAL ecosystem is set to launch a payment transition on January 7, 2025. This marks an important change: USUAL holders who deposit their tokens will start receiving a portion of the protocol’s revenue. By directly rewarding stakeholders with transaction fees, the protocol hopes to develop a strong and engaged user base.
#5 Second Do Kwon Audition in the US (January 8)
Terra founder Do Kwon is at a critical stage in his legal battle with US authorities, as his second trial is scheduled for January 8. Having been extradited to the United States, Kwon now faces a maximum sentence of 130 years in prison if convicted of fraud. the cases are detailed in a 79-page Justice Department case file.
The DOJ’s lawsuit adds new layers of allegations beyond those considered in the SEC’s civil proceedings, including allegations that Kwon acted with clear criminal intent to mislead investors. As prosecutors build their case around five alleged fraud schemes, among others, falsely advertising Terra’s stability, deceiving the Luna Foundation Guard and falsifying Terra’s use by Chai.
#6 Reduction in GMX Trading Fees (January 6)
Derivatives-focused GMX is taking a significant step to encourage higher trading rates by lowering fees across 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 said on X: “To kick off 2025 in style, GMX is lowering trading costs across all markets! Effective this Monday, January 6, open and closed costs for all positions will decrease from 5 bps / 7 bps to 4 bps / 6 bps.”
However, instead of a sleeping 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 fee of 4 bps, while those who increase the imbalance pay 6 bps. According to GMX, “This adjustment ensures a balanced open interest rate, which keeps financial payments and price impact low.”
At the same time, GMX revised the closing charges to 20 bps in asset-backed markets and 30 bps in synthetic markets. The developers of GMX believe that, together, these measures will reduce trading costs, encourage limited market participation, and improve the overall user experience.
At the time of publication, the total crypto market is at $3.45 trillion.
The featured image was created with DALL.E, a chart from TradingView.com