Crypto for Advisors: Crypto Market - A Week in Review

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Sarah Morton is Chief Strategy Officer and Co-founder of MeetAmi Innovations Inc.

Recently, the digital asset market saw little movement after cryptocurrencies were not discussed during the highly anticipated X space between Elon Musk and Donald Trump. BTC hovered around $58,750, down just over 1% from the previous day. The broader crypto market, represented by the CoinDesk 20 Index, experienced a similar decline.

Ethereum saw the most significant benefit from the market correction, drawing $155 million in inflows, bringing its year-to-date total to $862 million.ETH staking new validator activation takes 10 hours and 13 minutes, while the ETH exit queue is very short at 1 minute, showing that there is more interest in staking now.

Over the past year, crypto returns have exhibited notable dispersion, with assets like Bitcoin and Solana outperforming many others. This divergence marks a departure from previous cycles where gains were more evenly spread across the market. Key factors contributing to this trend include macroeconomic conditions such as tightening liquidity and rising interest rates, which have generally suppressed performance in riskier and less established assets.

This is where tokenized money market funds have started to play a crucial role. These assets offer investors a way to earn stable, risk-mitigated returns by directly passing on the yields from short-term U.S. Treasury Bills. Tokenized money market funds bring the benefits of blockchain technology—such as transaction speed, transparency, and composability—while minimizing the protocol, custody, regulatory, and credit risks often associated with other token projects.

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