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$ETH
The CEO of cryptocurrency exchange Bybit, Ben Zhou, has confirmed on X that the company has been hacked. Two hours ago, the X account of Whale Alert highlighted a transfer of more than 401,000 ETH worth $1.1 billion. The hacker transferred the funds to a fresh wallet address, but has since moved the funds to more than 40 other wallets.
Mr Zhou said that only one ETH cold wallet was compromised, and that all other wallets are intact and withdrawals continue as normal. The implication is that Bybit has more than $1 billion in equity. He followed up by saying “Bybit is solvent even if this hack loss is not recovered, all of clients assets are 1 to 1 backed, we can cover the loss.”
Former Binance CEO Changpeng Zhao (CZ) chimed in that the exchange should consider pausing withdrawals as a precaution.
While the hacker might have successfully drained the wallet, it remains to be seen whether they can do much with the funds.
Given that blockchains are public, Etherscan, the popular explorer, marked the wallet addresses as a ‘Bybit exploiter’. The transfers out of the initial exploiter address were in units of ETH 10,000 or $27 million, with each new wallet address also flagged.
Apart from the first wallet which was drained, most of the action was in two wallets (1 2), with the vast majority of funds still sitting in amounts of ETH 10,000 in 40 or so wallets.
Others have pegged the hack figure at $1.4 billion. However, the CEO confirmed the theft of ETH 401,000 or around $1.1 billion at a price of $2,800.
$ETH
The CEO of cryptocurrency exchange Bybit, Ben Zhou, has confirmed on X that the company has been hacked. Two hours ago, the X account of Whale Alert highlighted a transfer of more than 401,000 ETH worth $1.1 billion. The hacker transferred the funds to a fresh wallet address, but has since moved the funds to more than 40 other wallets.
Mr Zhou said that only one ETH cold wallet was compromised, and that all other wallets are intact and withdrawals continue as normal. The implication is that Bybit has more than $1 billion in equity. He followed up by saying “Bybit is solvent even if this hack loss is not recovered, all of clients assets are 1 to 1 backed, we can cover the loss.”
Former Binance CEO Changpeng Zhao (CZ) chimed in that the exchange should consider pausing withdrawals as a precaution.
While the hacker might have successfully drained the wallet, it remains to be seen whether they can do much with the funds.
Given that blockchains are public, Etherscan, the popular explorer, marked the wallet addresses as a ‘Bybit exploiter’. The transfers out of the initial exploiter address were in units of ETH 10,000 or $27 million, with each new wallet address also flagged.
Apart from the first wallet which was drained, most of the action was in two wallets (1 2), with the vast majority of funds still sitting in amounts of ETH 10,000 in 40 or so wallets.
Others have pegged the hack figure at $1.4 billion. However, the CEO confirmed the theft of ETH 401,000 or around $1.1 billion at a price of $2,800.
$ETH
#GasFeeImpact
The concept of incentives for work paid in fees (gas) was introduced to compensate miners for their work on maintaining and securing the blockchain—in addition to receiving block rewards.
After the proof-of-stake algorithm was rolled out in September 2022, a portion of the gas fee became the reward for staking ETH and participating in validation—the more a user has staked, the more they can earn.
Originally, gas fees were a product of a gas limit and the gas price per unit. In August 2021, Ethereum changed its calculations for gas fees to use a base fee (a set fee for the transaction set by the network), units of gas required, and a priority fee. The priority fee is a tip to the validator that chooses a transaction—the more you tip, the higher the chances are that your transaction will be processed faster.1
Gas and the Ethereum Virtual Machine (EVM)
Ethereum, as a platform and system, is designed to be used by others to create more use cases for blockchain and cryptocurrency. For this reason, it is commonly called the Ethereum Virtual Machine, because applications can be created that run on it. The EVM is essentially a large virtual computer, like an application in the cloud, that runs other blockchain-based applications within it.
#gas_fees
The concept of incentives for work paid in fees (gas) was introduced to compensate miners for their work on maintaining and securing the blockchain—in addition to receiving block rewards.
After the proof-of-stake algorithm was rolled out in September 2022, a portion of the gas fee became the reward for staking ETH and participating in validation—the more a user has staked, the more they can earn.
Originally, gas fees were a product of a gas limit and the gas price per unit. In August 2021, Ethereum changed its calculations for gas fees to use a base fee (a set fee for the transaction set by the network), units of gas required, and a priority fee. The priority fee is a tip to the validator that chooses a transaction—the more you tip, the higher the chances are that your transaction will be processed faster.1
Gas and the Ethereum Virtual Machine (EVM)
Ethereum, as a platform and system, is designed to be used by others to create more use cases for blockchain and cryptocurrency. For this reason, it is commonly called the Ethereum Virtual Machine, because applications can be created that run on it. The EVM is essentially a large virtual computer, like an application in the cloud, that runs other blockchain-based applications within it.
#gas_fees
#GasFeeImpact
Gas is the fee required to successfully conduct a transaction or execute a contract on the Ethereum blockchain platform. Fees are priced in tiny fractions of the cryptocurrency ether (ETH)—denominations called gwei (10-9 ETH). Gas is used to pay validators for the resources needed to conduct transactions.
The concept of incentives for work paid in fees (gas) was introduced to compensate miners for their work on maintaining and securing the blockchain—in addition to receiving block rewards.
After the proof-of-stake algorithm was rolled out in September 2022, a portion of the gas fee became the reward for staking ETH and participating in validation—the more a user has staked, the more they can earn.
$ETH
Gas is the fee required to successfully conduct a transaction or execute a contract on the Ethereum blockchain platform. Fees are priced in tiny fractions of the cryptocurrency ether (ETH)—denominations called gwei (10-9 ETH). Gas is used to pay validators for the resources needed to conduct transactions.
The concept of incentives for work paid in fees (gas) was introduced to compensate miners for their work on maintaining and securing the blockchain—in addition to receiving block rewards.
After the proof-of-stake algorithm was rolled out in September 2022, a portion of the gas fee became the reward for staking ETH and participating in validation—the more a user has staked, the more they can earn.
$ETH
#WalletActivityInsights
ETF Flows and Market Impact
With the market in a contraction phase, institutional interest in Bitcoin and Ethereum has slowed based on spot ETF flows. By normalizing net inflows against each asset’s native spot volume, we can gauge the weight and influence of the ETFs on market dynamics.
Bitcoin ETFs saw several outflows exceeding $200M/day last week, however this was followed by a strong rebound in buy-side activity, exceeding 8% of global spot volume, and highlighting institutional demand (akin to ‘buy the dip’ behavior).
Ethereum ETF demand has cooled significantly and remains much smaller in scale compared to Bitcoin. ETF activity for ETH is hovering close to zero in terms of net flows in and out, suggesting a lack of strong traditional investor demand and participation.
This divergence has been a theme of this market cycle thus far and reinforces Bitcoin’s dominant role within the institutional asset mix. Ethereum continues to struggle to attract large, sustained inflows, which further explains its relative underperformance in recent years.
$BTC
ETF Flows and Market Impact
With the market in a contraction phase, institutional interest in Bitcoin and Ethereum has slowed based on spot ETF flows. By normalizing net inflows against each asset’s native spot volume, we can gauge the weight and influence of the ETFs on market dynamics.
Bitcoin ETFs saw several outflows exceeding $200M/day last week, however this was followed by a strong rebound in buy-side activity, exceeding 8% of global spot volume, and highlighting institutional demand (akin to ‘buy the dip’ behavior).
Ethereum ETF demand has cooled significantly and remains much smaller in scale compared to Bitcoin. ETF activity for ETH is hovering close to zero in terms of net flows in and out, suggesting a lack of strong traditional investor demand and participation.
This divergence has been a theme of this market cycle thus far and reinforces Bitcoin’s dominant role within the institutional asset mix. Ethereum continues to struggle to attract large, sustained inflows, which further explains its relative underperformance in recent years.
$BTC
#MarketSentimentWatch
As momentum starts to fade in spot markets, we can also see a decline in capital inflows within the perpetual futures market. The cooling of demand on the spot side has led to a sharp drop in perpetual open interest (OI) across all major assets, signalling a reduction in speculative activity and lower cash and carry yields.
Over the last 30 days, the rate of change in open interest highlights a widespread retreat of capital:
Bitcoin OI: -11.1%
Ethereum OI: -23.8%
Solana OI: -6.2%
Memecoins OI: -52.1%
This trend of declining open interest across the board suggests that speculators are reducing their leveraged exposure, likely in response to weaker market momentum and increasing market uncertainty. The most extreme decline is seen in Memecoins, which tend to attract more short-term leveraged bets but lose traction quickly whenever sentiment weakens.
This trend of declining open interest across the board suggests that speculators are reducing their leveraged exposure, likely in response to weaker market momentum and increasing market uncertainty. The most extreme decline is seen in Memecoins, which tend to attract more short-term leveraged bets but lose traction quickly whenever sentiment weakens.
Funding Rates Signal Bearish Sentiment
The weakening in open interest is further reinforced by a decline in perpetual futures funding rates. This reflects a shift toward more bearish sentiment and an unwinding of leveraged positions, particularly in riskier assets.
Bitcoin and Ethereum funding rates remain slightly positive, and their deeper liquidity profile tends to see positive funding rates except during sharp leverage wash-out events.
Solana funding rate have edged lower and have traded negative in recent weeks, signalling a cooling off of demand for long speculative positions.
Memecoins have seen funding rates turn very negative, indicating that shorts now dominate in these highly speculative assets, and many traders are closing their positions (or being liquidated).
$SOL
Funding Rates Signal Bearish Sentiment#
As momentum starts to fade in spot markets, we can also see a decline in capital inflows within the perpetual futures market. The cooling of demand on the spot side has led to a sharp drop in perpetual open interest (OI) across all major assets, signalling a reduction in speculative activity and lower cash and carry yields.
Over the last 30 days, the rate of change in open interest highlights a widespread retreat of capital:
Bitcoin OI: -11.1%
Ethereum OI: -23.8%
Solana OI: -6.2%
Memecoins OI: -52.1%
This trend of declining open interest across the board suggests that speculators are reducing their leveraged exposure, likely in response to weaker market momentum and increasing market uncertainty. The most extreme decline is seen in Memecoins, which tend to attract more short-term leveraged bets but lose traction quickly whenever sentiment weakens.
This trend of declining open interest across the board suggests that speculators are reducing their leveraged exposure, likely in response to weaker market momentum and increasing market uncertainty. The most extreme decline is seen in Memecoins, which tend to attract more short-term leveraged bets but lose traction quickly whenever sentiment weakens.
Funding Rates Signal Bearish Sentiment
The weakening in open interest is further reinforced by a decline in perpetual futures funding rates. This reflects a shift toward more bearish sentiment and an unwinding of leveraged positions, particularly in riskier assets.
Bitcoin and Ethereum funding rates remain slightly positive, and their deeper liquidity profile tends to see positive funding rates except during sharp leverage wash-out events.
Solana funding rate have edged lower and have traded negative in recent weeks, signalling a cooling off of demand for long speculative positions.
Memecoins have seen funding rates turn very negative, indicating that shorts now dominate in these highly speculative assets, and many traders are closing their positions (or being liquidated).
$SOL
Funding Rates Signal Bearish Sentiment#
#MarketSentimentWatch
However, in recent weeks, the momentum of capital inflows has declined for all digital assets. Notably, Ethereum and Top Memecoins have now flipped negative (capital outflows), with Ethereum facing a -0.1% net outflow from the Realized Cap and Memecoins Index seeing an even sharper -5.9% outflow.
This signals a meaningful cooling down in speculative appetite and alludes to a potential for capital rotation out of riskier assets on the road ahead.
As momentum starts to fade in spot markets, we can also see a decline in capital inflows within the perpetual futures market. The cooling of demand on the spot side has led to a sharp drop in perpetual open interest (OI) across all major assets, signalling a reduction in speculative activity and lower cash and carry yields.
Over the last 30 days, the rate of change in open interest highlights a widespread retreat of capital:
Bitcoin OI: -11.1%
Ethereum OI: -23.8%
Solana OI: -6.2%
Memecoins OI: -52.1%
This trend of declining open interest across the board suggests that speculators are reducing their leveraged exposure, likely in response to weaker market momentum and increasing market uncertainty. The most extreme decline is seen in Memecoins, which tend to attract more short-term leveraged bets but lose traction quickly whenever sentiment weakens.
$ETH
However, in recent weeks, the momentum of capital inflows has declined for all digital assets. Notably, Ethereum and Top Memecoins have now flipped negative (capital outflows), with Ethereum facing a -0.1% net outflow from the Realized Cap and Memecoins Index seeing an even sharper -5.9% outflow.
This signals a meaningful cooling down in speculative appetite and alludes to a potential for capital rotation out of riskier assets on the road ahead.
As momentum starts to fade in spot markets, we can also see a decline in capital inflows within the perpetual futures market. The cooling of demand on the spot side has led to a sharp drop in perpetual open interest (OI) across all major assets, signalling a reduction in speculative activity and lower cash and carry yields.
Over the last 30 days, the rate of change in open interest highlights a widespread retreat of capital:
Bitcoin OI: -11.1%
Ethereum OI: -23.8%
Solana OI: -6.2%
Memecoins OI: -52.1%
This trend of declining open interest across the board suggests that speculators are reducing their leveraged exposure, likely in response to weaker market momentum and increasing market uncertainty. The most extreme decline is seen in Memecoins, which tend to attract more short-term leveraged bets but lose traction quickly whenever sentiment weakens.
$ETH
#TokenMovementSignals
The strong out-performance of Solana over the last two years aligns with a persistent capital inflow from investor demand. Looking at the monthly change in the realized cap, we can see clear patterns in capital movement across various digital assets:
Solana: Has consistently attracted higher relative capital inflows, supporting its strong price appreciation.
Ethereum: Has seen the weakest capital net inflow out of the majors, explaining its relative underperformance.
Memecoins: Experienced several abrupt but unsustainable surges in capital inflow, reflecting speculative bursts, but without sustained momentum.
$XRP
The strong out-performance of Solana over the last two years aligns with a persistent capital inflow from investor demand. Looking at the monthly change in the realized cap, we can see clear patterns in capital movement across various digital assets:
Solana: Has consistently attracted higher relative capital inflows, supporting its strong price appreciation.
Ethereum: Has seen the weakest capital net inflow out of the majors, explaining its relative underperformance.
Memecoins: Experienced several abrupt but unsustainable surges in capital inflow, reflecting speculative bursts, but without sustained momentum.
$XRP
#ActiveUserImpact
The recent slowdown comes after an extended period of strong gains across the major digital assets. Looking at the performance since early 2023, we can see clear differentiation in how each asset has navigated the cycle so far:
Bitcoin is trading within a range approximately 3.4x higher than April 2023, providing a benchmark return profile.
Ethereum has struggled compared to its peers, ranging between 1.3X and 2.0X relative to April 2023.
Solana's returns since 2023 peaked at 11.8x in early January 2025, but have since dropped sharply to around 7.6x as the current correction took hold.
Memecoins Index: Saw an explosive uptick in prices in mid-2024, largely aligned with Solana’s out-performance, and peaking 5.2X since 2023. However, recent weeks have seen this sector get hit quite severely, with total performance now being the worst out of the four assets.
$SOL
The recent slowdown comes after an extended period of strong gains across the major digital assets. Looking at the performance since early 2023, we can see clear differentiation in how each asset has navigated the cycle so far:
Bitcoin is trading within a range approximately 3.4x higher than April 2023, providing a benchmark return profile.
Ethereum has struggled compared to its peers, ranging between 1.3X and 2.0X relative to April 2023.
Solana's returns since 2023 peaked at 11.8x in early January 2025, but have since dropped sharply to around 7.6x as the current correction took hold.
Memecoins Index: Saw an explosive uptick in prices in mid-2024, largely aligned with Solana’s out-performance, and peaking 5.2X since 2023. However, recent weeks have seen this sector get hit quite severely, with total performance now being the worst out of the four assets.
$SOL
#PriceTrendAnalysis
The Bitcoin market attempted to rally above the ATH, and back into price discovery in late January 2025. This rally, however, could not achieve the necessary momentum, and the market has entered into a period of contraction and consolidation since then, with price momentum sharply declining across major assets.
Bitcoin: +48.4% (Nov 2024) → -5.9% (Feb 2025)
Ethereum: +60.3% (Dec 2024) → -16.9% (Feb 2025)
Solana: +53.2% (Nov 2024) → -33.1% (Feb 2025)
Meme Coins Index: +90.2% (Dec 2024) → -37.4% (Feb 2025)
Notably, Memecoins and Solana have thrived during strongly trending market conditions but also tend to correct sharply during downturns. Ethereum has remained one of the weakest performers throughout this cycle, and whilst it has outperformed Solana this week, a robust trend of out-performance has not yet been established.
$BNB
The Bitcoin market attempted to rally above the ATH, and back into price discovery in late January 2025. This rally, however, could not achieve the necessary momentum, and the market has entered into a period of contraction and consolidation since then, with price momentum sharply declining across major assets.
Bitcoin: +48.4% (Nov 2024) → -5.9% (Feb 2025)
Ethereum: +60.3% (Dec 2024) → -16.9% (Feb 2025)
Solana: +53.2% (Nov 2024) → -33.1% (Feb 2025)
Meme Coins Index: +90.2% (Dec 2024) → -37.4% (Feb 2025)
Notably, Memecoins and Solana have thrived during strongly trending market conditions but also tend to correct sharply during downturns. Ethereum has remained one of the weakest performers throughout this cycle, and whilst it has outperformed Solana this week, a robust trend of out-performance has not yet been established.
$BNB
#OnChainInsights
Executive Summary
After Bitcoin’s second attempt to break above $105k in late January, the market has entered a contraction phase, with monthly price momentum sharply declining across major assets.
Bitcoin has held relatively steady, while Ethereum, Solana, and Memecoins have faced much deeper corrections, reflecting a shifting appetite for risk.
Solana has emerged as a market leader in capital inflows over the past two years, in contrast to Ethereum, which has comparatively struggled to attract sustained demand.
However, this week, all digital assets aside from Bitcoin have seen a dramatic decline in capital flows, with Solana, and its associated memecoin ecosystem taking a relatively large hit.
Perpetual futures open interest has declined across Bitcoin (-11.1%), Ethereum (-23.8%), Solana (-6.2%), and Memecoins Index (-52.1%), reflecting a diminished appetite for leveraged speculation.
$BTC
Executive Summary
After Bitcoin’s second attempt to break above $105k in late January, the market has entered a contraction phase, with monthly price momentum sharply declining across major assets.
Bitcoin has held relatively steady, while Ethereum, Solana, and Memecoins have faced much deeper corrections, reflecting a shifting appetite for risk.
Solana has emerged as a market leader in capital inflows over the past two years, in contrast to Ethereum, which has comparatively struggled to attract sustained demand.
However, this week, all digital assets aside from Bitcoin have seen a dramatic decline in capital flows, with Solana, and its associated memecoin ecosystem taking a relatively large hit.
Perpetual futures open interest has declined across Bitcoin (-11.1%), Ethereum (-23.8%), Solana (-6.2%), and Memecoins Index (-52.1%), reflecting a diminished appetite for leveraged speculation.
$BTC
#OnChainInsights
Bitcoin is trading in the $93k-$97k range, leading to a wider digital asset market cooldown. Capital inflows are weakening, and derivatives activity is declining. Short-term holder accumulation patterns somewhat resemble May 2021, which was a relatively challenging set of market conditions.
Executive Summary
After Bitcoin’s second attempt to break above $105k in late January, the market has entered a contraction phase, with monthly price momentum sharply declining across major assets.
Bitcoin has held relatively steady, while Ethereum, Solana, and Memecoins have faced much deeper corrections, reflecting a shifting appetite for risk.
Solana has emerged as a market leader in capital inflows over the past two years, in contrast to Ethereum, which has comparatively struggled to attract sustained demand.
However, this week, all digital assets aside from Bitcoin have seen a dramatic decline in capital flows, with Solana, and its associated memecoin ecosystem taking a relatively large hit.
Perpetual futures open interest has declined across Bitcoin (-11.1%), Ethereum (-23.8%), Solana (-6.2%), and Memecoins Index (-52.1%), reflecting a diminished appetite for leveraged speculation.
$BTC $ETH
Bitcoin is trading in the $93k-$97k range, leading to a wider digital asset market cooldown. Capital inflows are weakening, and derivatives activity is declining. Short-term holder accumulation patterns somewhat resemble May 2021, which was a relatively challenging set of market conditions.
Executive Summary
After Bitcoin’s second attempt to break above $105k in late January, the market has entered a contraction phase, with monthly price momentum sharply declining across major assets.
Bitcoin has held relatively steady, while Ethereum, Solana, and Memecoins have faced much deeper corrections, reflecting a shifting appetite for risk.
Solana has emerged as a market leader in capital inflows over the past two years, in contrast to Ethereum, which has comparatively struggled to attract sustained demand.
However, this week, all digital assets aside from Bitcoin have seen a dramatic decline in capital flows, with Solana, and its associated memecoin ecosystem taking a relatively large hit.
Perpetual futures open interest has declined across Bitcoin (-11.1%), Ethereum (-23.8%), Solana (-6.2%), and Memecoins Index (-52.1%), reflecting a diminished appetite for leveraged speculation.
$BTC $ETH
#VIRTUALWhale
A cryptocurrency whale — an investor with a large amount of capital — gained more than $11.5 million in unrealized profit on a recent crypto investment.
The unknown crypto whale bought over $10 million worth of the Virtuals Protocol (VIRTUAL) cryptocurrency, which serves as the utility token of the artificial intelligence agent launch platform.
The purchase generated more than $11.5 million worth of unrealized profit during the past 19 days, according to the onchain intelligence platform Lookonchain.
“A whale spent 10M $USDC to buy 4.25M $VIRTUAL 19 days ago, which is now worth $21.5M, with an unrealized profit of $11.5M,” Lookonchain said in a Jan. 2 post on X.
$BTC
A cryptocurrency whale — an investor with a large amount of capital — gained more than $11.5 million in unrealized profit on a recent crypto investment.
The unknown crypto whale bought over $10 million worth of the Virtuals Protocol (VIRTUAL) cryptocurrency, which serves as the utility token of the artificial intelligence agent launch platform.
The purchase generated more than $11.5 million worth of unrealized profit during the past 19 days, according to the onchain intelligence platform Lookonchain.
“A whale spent 10M $USDC to buy 4.25M $VIRTUAL 19 days ago, which is now worth $21.5M, with an unrealized profit of $11.5M,” Lookonchain said in a Jan. 2 post on X.
$BTC
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