Crypto’s cold spell may soon thaw

April 16, 2025

Reading time: 5 minutes

DWF Labs invests $25M in Trump-backed WLFI, backs USD1 stablecoin launch

Key points:

  • DWF Labs invested $25 million in WLFI tokens, joining the Trump-linked DeFi ecosystem.

  • The firm will provide liquidity for WLFI’s USD1 stablecoin and opened a New York office to deepen U.S. engagement.

News - DWF Labs has made a bold bet on U.S.-based crypto expansion with a $25 million investment in World Liberty Financial (WLFI), a decentralized finance (DeFi) protocol backed by U.S. President Donald Trump and his family. Announced on April 16, the investment includes the purchase of WLFI tokens in a private transaction and aligns with the firm’s opening of a New York City office.

According to the announcement, DWF Labs’ purchase grants it governance rights in the WLFI ecosystem. The project, launched in September 2024, has already raised over $600 million through token sales and strategic investments from entities like Tron founder Justin Sun and Web3Port.

Backing USD1 and U.S. expansion plans - As part of the partnership, DWF will also supply liquidity for USD1 — a stablecoin launched on Ethereum and BNB Chain that’s pegged to the U.S. dollar and backed by Treasury bills. While USD1 is not yet tradable, it is being positioned as an institutional-grade digital dollar designed to rival existing stablecoins.

DWF Labs Managing Partner Andrei Grachev emphasized that the firm’s physical U.S. expansion signals long-term confidence in the region's institutional crypto potential. The move also aims to foster engagement with American banks, asset managers, and regulators.

Meanwhile, WLFI co-founder Zak Folkman said the partnership would accelerate the buildout of WLFI’s “next-gen DeFi infrastructure.”

Coinbase warns of crypto winter, sees Q3 2025 rebound

Key points:

  • Coinbase says the altcoin market has dropped 41% since December, marking early signs of a new crypto winter.

  • Despite the downturn, the firm expects a sentiment reset and potential rebound by Q3 2025.

News - Coinbase Institutional’s April market outlook paints a bleak picture for crypto in the short term, with signs pointing toward a fresh bear cycle. The altcoin market capitalization has fallen from $1.6 trillion in December 2024 to under $1 trillion by mid-April — a 41% decline. Bitcoin’s dip below its 200-day moving average in March also supports this bear market thesis.

David Duong, Coinbase’s Global Head of Research, attributed the downturn to macroeconomic headwinds, including global tariffs and investor risk aversion. “Several converging signals may be pointing to the start of a new ‘crypto winter,’” Duong wrote.

Market indicators and VC slowdown - Coinbase’s model, which includes the 200-day moving average and risk-adjusted Z-score analysis, confirms the end of the recent bull cycle around late February. Meanwhile, Bitcoin and the top 50 tokens (tracked via Coinbase’s COIN50 index) have since slipped into bear market territory.

Adding to the concern is a reported 50–60% drop in venture capital funding for crypto startups compared to 2021–22 levels, with altcoins hit hardest. Duong noted that traditional 20% correction thresholds don’t apply well to crypto, where regime shifts and shrinking liquidity play a bigger role.

Q3 outlook: A quick sentiment reset? - Despite the grim outlook, Coinbase maintains a cautiously optimistic stance for the second half of the year. The firm expects a market reset by Q3 2025, as structural pressures ease and investor confidence rebounds. Duong emphasized that Bitcoin's evolving role as a store of value means its signals may no longer define the entire market.

Instead, future market cycles may be shaped by sectors like DeFi, DePIN, and AI-driven agents, each with their own dynamics.

Mantra’s OM token surges 25% post-crash as burn plans rekindle investor hope

Key points:

  • OM rebounded 25% after a 90% crash, fueled by rising trading activity and investor optimism following Mantra’s burn announcement.

  • Mantra CEO pledged to burn his team’s tokens and launch a broader supply burn plan to restore community trust.

  • Despite the recovery and bullish on-chain signals, skepticism lingers over the project’s transparency and OTC sales practices.

News - Following a staggering 90% crash that saw OM plummet from over $6 to under $0.50 on April 13, Mantra’s native token has staged a sharp recovery. OM surged by 25% in the last 24 hours, making it the top market gainer, amid renewed optimism driven by CEO John Patrick Mullin’s announcement of a comprehensive token burn initiative.

Token burn hype sparks rally - Mullin pledged on April 15 to burn his entire “Team and Core Contributor” OM allocation, which was set to vest from April 2027. He further confirmed plans for a broader burn program encompassing other supply segments. While exact figures and timelines are pending, Mullin said he would make the burn “as large as [he] can possibly make it.”

This announcement helped revive trader sentiment, sending OM back to $0.78—nearly 30% above its recent low. Open interest in OM jumped 9% to $156.74 million, and the token’s long/short ratio climbed to 1.02, reflecting growing appetite for long positions and a potential short-term rally toward $2.64.

Lingering doubts and transparency gaps - Despite the bullish turn, Mantra’s official April 16 statement did little to address unanswered questions. The team denied orchestrating any sell-offs, attributing the flash crash to forced liquidations by centralized exchanges. They emphasized that only ERC-20 OM—comprising nearly all liquid OM—was affected, not tokens minted on Mantra Chain.

However, critics remain skeptical. CEO Mullin admitted to over-the-counter (OTC) OM sales totaling up to $30 million, used partly for market support. Investigative YouTuber Coffeezilla alleged this was price manipulation, though Mullin argued the buybacks were discretionary and aimed at maintaining liquidity.

Mantra’s reputation remains under scrutiny despite its post-crash recovery. OKX CEO Star Xu called the incident a “big scandal,” and community trust may hinge on how transparently the team executes its burn program and addresses the root causes of the collapse.

Janover doubles Solana holdings to $21M, embraces DeFi treasury strategy

Key points:

  • Real estate fintech Janover acquired 80,567 SOL for $10.5 million, bringing total holdings to over $21 million.

  • The company plans to stake SOL immediately and may launch its own validator nodes.

  • Janover’s pivot mirrors Strategy’s treasury playbook, but with a focus on altcoins over Bitcoin.

News - Janover, a U.S.-based real estate fintech firm, announced it has purchased an additional 80,567 Solana (SOL) tokens worth $10.5 million, doubling down on its digital asset treasury strategy. This move brings the firm's total SOL holdings to 163,651.7 tokens—valued at approximately $21.2 million, including staking rewards.

The purchase is Janover’s third since its board approved a new digital asset strategy on April 4, shifting the company’s treasury model to embrace decentralized finance (DeFi). Notably, the firm is one of the first publicly traded U.S. companies to allocate a substantial portion of its reserves to Solana instead of Bitcoin.

DeFi ambitions & staking plans - Janover will begin staking its newly acquired SOL immediately to earn yield. It also plans to operate one or more validator nodes on the Solana network in the future—allowing it to secure the blockchain while generating revenue.

CEO Joseph Onorati, a former Kraken executive who recently took over leadership, emphasized the firm’s commitment to DeFi adoption: “We’re proud to be the first to introduce a digital asset treasury strategy in the U.S. public markets.”

Strategy-style, but with a twist - Janover’s approach mirrors that of Strategy (formerly MicroStrategy), which holds over $44 billion worth of Bitcoin. But instead of BTC, Janover is banking on altcoin upside—positioning itself as a rare example of a publicly traded firm with deep Solana exposure.

Did you know?

  • Ethereum’s Dencun upgrade boosted Layer-2 adoption: Activated in March 2024, Ethereum’s Dencun hard fork introduced “proto-danksharding,” significantly reducing transaction fees on Layer-2s like Arbitrum and Optimism, and paving the way for scalable dApps.

  • The Philippines leads in crypto usage in Southeast Asia: As of 2024, the Philippines ranked among the top global adopters of cryptocurrency, driven by remittances, play-to-earn games, and favorable fintech regulation. Over 11 million Filipinos are estimated to have engaged with digital assets.

  • More Americans are exploring crypto in retirement portfolios: As of early 2025, interest in adding crypto to retirement accounts is steadily rising in the U.S. While exact figures remain unclear, surveys from 2023–2024 indicated that over 40% of U.S. adults with retirement savings had considered or already allocated funds to crypto assets like Bitcoin or Ethereum, using services from firms like Fidelity, BitIRA, and iTrustCapital.

Top 3 coins of the day

Core (CORE)

Key points:

  • At press time, CORE was trading at $0.58, reflecting a 16.23% increase over the last 24 hours.

  • The token surged past its 9-day SMA and flipped the Awesome Oscillator (AO) back into green.

What you should know:

CORE saw a sharp intraday rally that pushed its price above the 9-day Simple Moving Average for the first time since its early-April correction. The breakout coincided with a strong uptick in volume, hinting at renewed buyer interest after a prolonged period of sideways consolidation. The Awesome Oscillator also flashed a bullish crossover as it climbed into positive territory—its highest level since mid-March—indicating that momentum had shifted in favor of the bulls. If the upward pressure continues, CORE could eye the psychological resistance near $0.60, followed by the February range around $0.66. On the downside, traders should monitor the $0.51 zone—currently aligned with the 9-day SMA—as the immediate support in case of a pullback. Sustained green bars on the AO and expanding volume would be critical to validating further upside.

Curve DAO (CRV)

Key points:

  • At press time, CRV was trading at $0.63, reflecting an 8.24% increase over the last 24 hours.

  • The price held firmly above the midline of the Bollinger Bands, with the Awesome Oscillator building bullish momentum.

What you should know:

CRV continued its recovery trend, posting a strong green candle after consolidating near the $0.59 level. The token maintained its position above the Bollinger Bands’ midline, signaling sustained bullish control. Meanwhile, the Awesome Oscillator printed consecutive green bars and edged further into positive territory, reinforcing upward momentum after a brief pause earlier this week. Notably, volume showed a moderate uptick alongside price gains, suggesting solid trader conviction. If CRV maintains its pace, it could attempt a retest of the upper Bollinger Band near $0.65, followed by the $0.70 resistance zone. On the downside, immediate support rests around the $0.59 mark. A loss of this level may invite short-term corrections. Traders should watch for potential AO weakening or narrowing Bollinger Bands, which could signal cooling momentum.

Onyxcoin (XCN)

Key points:

  • At press time, XCN was trading at $0.016, marking a sharp 15.31% drop in the last 24 hours.

  • Despite recent hype, price retreated below the midline of the Bollinger Bands amid bearish volume.

What you should know:

XCN pulled back sharply following its recent vertical rally, which saw prices soar over 120% in just a week. The surge was driven by renewed retail interest and speculative momentum following reports positioning Onyxcoin as a potential Top 100 cryptocurrency. However, the latest red candle indicated profit-taking, with price slipping below the Bollinger Bands’ midline. Meanwhile, the Chaikin Money Flow dropped into negative territory (-0.07), signaling weakening buying pressure. Volume remained elevated but skewed bearish, reinforcing the idea that early buyers may be exiting. If XCN fails to regain footing above $0.018 soon, downside risks toward the $0.014 support zone may intensify. Conversely, a bounce back above the midline could revive the bullish momentum and potentially set the stage for another move toward $0.022.

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