Most of the crypto market took a tumble while Bitcoin and Ethereum held up relatively well. No major catalysts from traditional markets - such as interest rates, foreign exchange, or commodities - were observed, helped by the long weekend in the U.S. and Canada.  

Solana memecoin plunges are dominating crypto headlines, and it’s showing in SOL’s performance, which is down 10% this week and over 40% from January’s peak. The LIBRA token, which Argentine President Javier Milei touted on X as being a contributor to Argentina’s economic growth, sent shockwaves through the industry when its value suddenly plummeted. Significant community backlash over the management of the event prompted the eventual resignation of Jupiter (a Solana decentralized exchange [DEX]) Co-Founder Ben Chow, due to his involvement with the token and poor judgement surrounding the due diligence and listing of LIBRA on Jupiter. Read more here: 

Hayden Davis, CEO of Kelsier Ventures, Bragged of Influence Over Argentina's Milei 

$LIBRA Crypto Scandal: Argentina President Javier Milei Denies Wrongdoing - Bloomberg 

Raydium, another DEX operating on the Solana blockchain, saw volumes drop by over 45%, due to negative sentiment spilling over into the broader Solana ecosystem. The episode revealed community discontent around pump and dump schemes in a memecoin ecosystem dominated by Solana, contributing to SOL underperformance that might result in a rotation back into Ethereum.  

Solana underperforms ETH, bringing the cross back to levels not seen since the start of the year: 

Source: Trading View

 Crypto Market News

Jupiter’s Co-founder Ben Chow Steps Down Amid Libra Memecoin Fallout - Blockonomi  

Strategy flags profitability risk amid bitcoin volatility, may be exposed to greater tax liabilities than anticipated | The Block 

Proposed US gold reserve audit could spur blockchain adoption for sovereign reserve tracking, analysts say | The Block 

Standard Chartered sees more sovereign wealth funds buying bitcoin | The Block 

Week Ahead

Economic data this week is light, with most of the releases dominated by U.K. inflation, retail sales and PMI reports. Upcoming Federal Open Market Committee minutes will provide insight into discussions at the previous FOMC in the U.S.  

Source: TradingEconomics.com

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