Leading projects driving increased whale activity this week, according to Santiment.

Dan Romero, co-founder of Farcaster, confirmed that the protocol will remain operational, dismissing reports of a shutdown. In December, Farcaster reported 250,000 active monthly users and over 100,000 funded wallets. Neynar, a venture-backed startup, has acquired the platform with plans to refocus development efforts. Merkle has stated its intention to return the full $180 million raised to investors.

Coinbase vice president cited "critical issues" in the Senate cryptocurrency bill as the reason for the company's unexpected withdrawal of support. coindesk #regulation

Ark Invest believes that Bitcoin (BTC) and tokenization will serve as primary drivers for the next phase of growth in digital assets.

The number of daily active addresses on the Ethereum main network exceeds those on all Layer 2 networks. cointelegraph

ETH daily active addresses on the Ethereum mainnet exceed those on all Layer 2 networks. cointelegraph

Capital One has acquired Brex, a provider of credit card and stablecoin payment solutions. coindesk

Ledger is in talks with Goldman Sachs, Jefferies, and Barclays regarding a potential U.S. IPO, potentially as soon as this year, that could value the company at over $4 billion, according to the Financial Times.

Crypto ETFs Experience $74.2 Million in Outflows as BTC and ETH Funds Face Capital Exodus

Bitmine has staked an additional 171,264 ETH, bringing its total to $503.2 million. OTC Kit has purchased a further 20,013 ETH, valued at $59.07 million. A whale has withdrawn 10 million ENA from Bybit and subsequently staked it. A new wallet acquired 4.02 million Fartcoin for $1.22 million, 400.23 million PUMP for $1 million, and 38,504 META for $234,000.

Coinbase has formed a board to assess potential risks that quantum computing may pose to blockchain technology. cointelegraph

Most cryptocurrencies aside from Bitcoin have been in a bear market since December 2024, according to Pantera Capital. The market capitalization of non-Bitcoin assets, including Ether and stablecoins, has dropped approximately 44% from its late-2024 peak. The firm attributes the decline primarily to macroeconomic instability, decreased leverage, and fundamental concerns about token value accumulation. Nonetheless, Pantera notes that the length of this downturn aligns with previous crypto bear markets, potentially setting the stage for a more positive environment in 2026 if macro fundamentals improve. coindesk

GameStop wallets transferred their Bitcoin holdings to Coinbase Prime, likely for liquidation. Between May 14 and May 23, 2025, the wallets acquired 4,710 BTC at an average price of $107,900, amounting to approximately $504 million. Currently, the assets are being sold at around $90,800, generating an estimated loss of $76 million.

Binance has applied for a MiCA license in Greece. cointelegraph

The Sharpe ratio for Bitcoin has fallen to levels only seen four times since 2018, signaling heightened risk-adjusted returns concerns. This decline suggests either a prevailing bearish trend or that a market bottom may be near. Investor sentiment remains highly negative, with weaker holders exiting positions.

While the Sharpe ratio does not directly identify exact lows, it does mark points where risk and reward dynamics improve, often preceding significant market movements. Currently, the market appears oversold, indicating potential formation of local lows.

A rise in the Sharpe ratio above 0 would indicate a transition from decline to recovery. Until then, prolonged declines, increased uncertainty, and bearish outlooks are expected as market stability remains elusive.

Binance Futures to Launch USDⓈ-Margined Perpetual Contracts for SPACEUSDT and FIGHTUSDT on January 23, 2026

Most Active Investors Driving Cryptocurrency Funding Rounds in 2025

UBS plans to offer cryptocurrency trading services to clients through its Swiss banking division.

The Prosecutor General’s Office of Russia has declared the operations of the WhiteBit cryptocurrency exchange undesirable. source

The European Union has agreed to suspend its €93 billion retaliatory trade measures against the United States for six months. EU lawmakers are also expected to vote on ratifying the bloc’s trade agreement with the U.S., as the legislative process has resumed after former President Trump withdrew his threat to impose tariffs on European allies opposing his Greenland annexation plans.

Grayscale files application with SEC for BNB ETF. more details available in this tweet: here.