We bring you the latest in the Web3 and AI industry, structured in bite-sized news that you can read in a minute!
Here’s what’s happening in Web3 and AI in 1 minute.
Web3
El Salvador Adds to Bitcoin Treasury
1️⃣ El Salvador has increased its BTC holdings to 6,000 BTC, valued at approximately $569 million. As the sixth-largest national Bitcoin holder, the country continues accumulating Bitcoin despite IMF warnings. The National Bitcoin Office maintains that Bitcoin remains central to its economic strategy.
Ethereum ETFs See Record Inflows
2️⃣ Ethereum ETFs recorded US$2 billion in inflows this month, nearly doubling that of November’s. While ETH’s price remains below its all-time high, analysts predict a potential rally in early 2025. However, significant resistance levels persist, and a market correction is still possible.
Memecoins Experience December Slump
3️⃣ The market capitalisation of memecoins dropped nearly 30% in December, falling from US$137 billion to under $93 billion. This decline followed a surge driven by Pepe’s listing on major exchanges. Despite short-term profits for some traders, the broader memecoin market has lost momentum.
Trump’s Bitcoin Policy Remains Unclear
4️⃣ Donald Trump’s position on BTC is uncertain, with some suggesting it hinges on the strength of the US dollar. A strong dollar makes it unlikely the US will buy Bitcoin in 2025. Analysts believe countries facing economic challenges are more likely to adopt BTC as a reserve asset.
Blockchain Association Sues IRS
5️⃣ The Blockchain Association and Texas Blockchain Council are suing the IRS over new broker reporting rules for digital assets. They argue the regulations exceed the IRS’s authority, violate administrative law, and place undue burdens on developers while threatening DeFi user privacy.
Vitalik Buterin Adopts Pygmy Hippo
6️⃣ Ethereum co-founder Vitalik Buterin has adopted Moo Deng in Thailand, donating 88 ETH which is worth US$292,000 at the point of writing. The pygmy hippo was the focus of a memecoin of the same name, which saw high-volume trading previously.
Volatility Shares Files for Solana ETF
7️⃣ Volatility Shares has filed for three ETFs tracking Solana futures contracts, despite no such contracts being available at the moment. This signals the potential launch of Solana futures, and possibly a spot ETF.
AI
AI Tokens See Market Cap Drop
1️⃣ AI cryptocurrencies have seen a significant decline, losing nearly a third of their value since early December. The market cap now stands at $50 billion, down from a peak of $70 billion. Trading volumes have also fallen, mirroring a broader crypto market downturn.
OpenAI Considers Restructuring
2️⃣ Amid criticism and legal challenges, OpenAI is exploring restructuring its for-profit division into a Public Benefit Corporation (PBC). This shift would prioritise shareholder and public interests while making it easier to raise capital.
Hugging Face Named Project of the Year
3️⃣ Hugging Face, an open-source AI platform, has been named Decrypt’s Project of the Year for 2024. It offers over one million AI models, thousands of datasets, and demo apps. Hugging Face promotes collaboration and open access to AI.
AI Experiences Adoption, Unlike Blockchain
4️⃣ Artificial intelligence finally saw mass utility and adoption after decades of evolution, training, and breakthroughs, with the launch of AI platforms and the emerging frontier of Generative AI. On the other hand, blockchain is still lagging behind in mass adoption.
AI Agents Enhance Smart Contracts
5️⃣ AI agents are revolutionising blockchain, automating tasks like trading, investing, and interacting with users. These bots improve decision-making through continuous updates and are gaining traction in gaming and DeFi.
Story Protocol Navigates AI and IP Rights
6️⃣ Story Protocol aims to enable creators to register and license their work programmatically with smart contracts to automate licensing and payments, ensuring fair compensation. Backed by major investors, the platform is set to launch its mainnet in 2025.
