Feb 24, 2025: Our weekly Institutional Insights explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

 explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

Weekly Highlight — Mixed Economic Data Leads to Risk-Off Strategies

For the past two months, the strong U.S. economy has given investors confidence to invest in markets, even amidst looming tariffs and a stricter Federal Reserve Board. However, recent data indicates that this support may be weakening.

Last Friday, several reports on consumer sentiment, housing and services contributed to the S&P 500's largest loss of the year as it fell 1.7%, wiping out its weekly gains. In contrast, bonds experienced a rally, driving the yield on 10-year Treasuries down to 4.43%. The VIX {

the Chicago Board Options Exchange's (CBOE) Volatility Index

, known as the "fear gauge"] spiked, but remained below 20, signaling increased market anxiety.

Previously, optimism among investors was fueled by speculation regarding U.S. president Trump’s policies promoting disinflationary growth. However, mixed economic signals are now causing concern, particularly a report showing a decline in consumer sentiment alongside rising long-term inflation expectations — the largest drop since 1995. Additionally, existing U.S. home sales fell for the first time since September 2024, further complicating the outlook.

While January's job growth appeared solid, with 143,000 jobs added and the unemployment rate stable, institutional investors began the year with a pro-risk stance, optimistic about the U.S. economy’s trajectory. Yet, the recent volatility in economic data has prompted a reevaluation of strategies.

Weekly Crypto Highlight — SEC May Drop Lawsuit Against Coinbase

Coinbase announced that the U. S. Securities and Exchange Commission (SEC) has agreed to drop its lawsuit accusing Coinbase of operating an illegal exchange, pending Commissioners’ approval. Following this news, Coinbase shares initially surged in premarket trading, but fell by 4% to $246.30 as of midday in New York. Bitcoin also declined by about 1%, trading at around $97,000.

This decision signals a shift from the aggressive regulatory stance of former SEC Chair Gary Gensler, who faced criticism from the crypto industry for enforcing regulations through lawsuits. Last week, the SEC likewise requested a pause on a similar case against Binance, highlighting ongoing developments regarding a regulatory framework for digital assets.

The SEC's complaint will be unfairly dismissed, meaning it cannot be refiled. Coinbase CEO Brian Armstrong stated that this dismissal will entail no fines or changes in the company’s operations.

Coinbase has actively engaged in Washington, D.C., donating millions to support pro-crypto candidates and recently adding Chris LaCivita, a former Trump campaign manager, to its advisory council. Armstrong has also communicated with Trump directly.

The SEC initially sued Coinbase in June 2023 amidst a broader crackdown on the digital asset industry following the 

. Gensler had claimed that many tokens fell under SEC jurisdiction. 

The dismissal alleviates a significant burden on Coinbase, allowing it to list more tokens and refocus on product development, rather than legal defenses. This outcome removes a key litigation risk, enhancing Coinbase's capacity to innovate. The company recently reported strong fourth-quarter earnings, and now aims to collaborate with Congress and regulators in order to establish clearer rules for the crypto landscape.

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Weekly Institutional Insights: Mixed Economic Data Rattles Market; SEC May Dismiss Lawsuit

As of mid-February 2025, the cryptocurrency market is experiencing movements driven by economic pressures and regulatory movements. 

As of mid-February 2025, the cryptocurrency market is experiencing movements driven by economic pressures and regulatory movements. Recent inflation data has rattled financial markets, leading to a sharp reassessment of expectations for Federal Reserve policy. A higher-than-expected Consumer Price Index (CPI) report has caused Bitcoin to dip below $94.2K before rebounding to approximately $98.1K. This fluctuation illustrates how macroeconomic factors are increasingly influencing digital assets, mirroring trends seen since early 2022 when the Fed began raising interest rates.

Santiment data reveals that discussions around the terms “CPI” and “inflation” surged to 1.75% of all crypto conversations, the highest level since 2022. This heightened sensitivity indicates that when markets are stagnant or declining, economic news is met with increased concern and fear, often leading to sell-offs. Despite the increased uncertainty, Bitcoin has demonstrated resilience, staying above the $98K mark. Nevertheless, continued inflation could lead to further volatility in risk assets such equities and crypto.

The LIBRA scandal has further complicated the crypto landscape. Argentine President Javier Milei's endorsement of the cryptocurrency led to a dramatic rise — and an even more significant fall in value, as it plummeted by 80% within days. Allegations of fraud surrounding Milei have intensified scrutiny of speculative assets, particularly meme coins, leading to a crisis of confidence among investors.

The fallout from this scandal reflects a broader trend of growing impatience with high-risk assets. Retail sentiment has turned bearish, as evidenced by increased mentions of selling across social media platforms. This shift highlights the need for thorough research before investing in speculative projects. The LIBRA incident serves as a stark reminder of the risks associated with relying solely on endorsements for investment decisions, prompting many traders to seek more stable and established cryptocurrencies.

Emerging Opportunities and Investor Behavior

Litecoin is gaining traction, driven by the possibility of a spot ETF approval that could pave the way for broader access to altcoins, further maturing the crypto market. As discussions around the term “Litecoin ETF” spike, market analysts are optimistic about the likelihood of approval, which could enhance investor interest in Litecoin and similar assets.

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Bybit x Santiment: LIBRA Scandal Gives Rise to Meme Coin Crisis; Litecoin ETF Anticipations Build Up

KAITO is the core currency of Kaito AI’s InfoFi ecosystem, enabling transactions, governance, staking, and community engagement.

The S&P 500 fell 0.43% amid Walmart’s weak outlook, with investors eyeing PMI and home sales data next. Gold rose 0.23% to $2,939 on safe-haven demand but retreated from a $2,954 high. Traders await S&P Global Flash PMIs. Coindesk Indices, an index measuring broader cryptocurrency market performance was up by 0.02%, with Bitcoin and Ether rising by 2.46% and 0.69%, respectively in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today’s top performer is BERA, which surged nearly 15.8% after The Graph integrated Berachain Mainnet on day one, enabling seamless onchain data access.

Berachain (BERA), founded in 2021, is a Layer 1 blockchain with Proof-of-Liquidity consensus, ensuring security and liquidity while maintaining full Ethereum compatibility. The Graph has 

 support for the newly launched Berachain mainnet from day one. Developers can now query Berachain data using Subgraph Studio, making it easier to organize and access onchain data. This integration enables the creation of fast and efficient frontends for Berachain-powered dapps.

Check Out the Latest Prices, Charts, and Data of 

 is the core currency of Kaito AI’s InfoFi ecosystem, enabling transactions, governance, staking, and community engagement. The total supply is allocated as follows: 56.67% to community and ecosystem initiatives (including ecosystem growth, creator incentives, and liquidity rewards), 25% to core contributors, 10% to the foundation, and 8.3% to early backers. Distribution is merit-based, using AI-driven assessments of engagement, governance participation, and long-term alignment with Kaito’s vision. Staking provides rewards and voting rights, ensuring active participation. A claim process for KAITO will be announced soon.

Yesterday, BTC Spot ETFs recorded a net outflow of $252.8M, including $33.5M from GBTC and $219.3M from non-GBTC funds.

. With $43 million in funding, this presents a valuable opportunity. To maximize your points, complete the "Generate at least one transaction on Sahara Testnet" task by sending a small amount of SAHARA via Metamask. This earns 20 points, a significant amount compared to other tasks. Ensure you take full advantage of this opportunity.

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KAITO Powers the InfoFi Ecosystem with Governance Staking and Community Rewards

Kaito is an AI-powered information indexer specifically designed to deliver actionable insights for cryptocurrency traders and investors. Find out more now!

Within a year of its launch, Kaito has already established itself as a key player in the web3 industry. Its innovative approach combines artificial intelligence with publicly available crypto conversation data, creating a tool that can present an up-to-date picture of the events affecting the cryptocurrency space at any given time.

 is an AI-powered search engine specifically designed for the cryptocurrency space. It’s a premium service with a monthly subscription of $1,099. The platform indexes thousands of 

 sources that aren’t accessible through traditional search engines, and gathers data from Twitter, Discord, governance forums, research papers, news articles, podcasts and even conference transcripts. 

Kaito uses advanced AI algorithms and natural language processing to better understand context and gauge sentiment about topics. Its use of AI and an internal algorithm allows Kaito to filter out the noise, presenting a more accurate picture of community sentiment. 

. Before moving to web3, Hu worked in the traditional finance space for over eight years, including the management of a $500 million equities portfolio at Citadel. His aim with Kaito is to democratize web3 information by giving users access to tools and insights they need to navigate this ever-changing industry. 

Kaito has quickly attracted significant investment from major 

 in the industry. The project has already raised $10.8 million across two funding rounds.

The seed round in August 2023 was led by Dragonfly Capital, with participation from Sequoia Capital China, Jane Street and others, as Kaito secured $5.3 million. This was followed by a Series A round in June 2023, led by Superscrypt and Spartan, raising an additional $5.5 million with a valuation of $87.5 million. Other notable investors include Mirana Ventures, Folius Ventures and Alpha Lab Capital. 

Kaito offers a range of features designed to provide users with comprehensive and actionable insights. They include the following:

: Kaito’s platform uses a custom-built large language model (LLM) in combination with real-time data gathered from various sources to provide users with actionable insights on developments in the web3 space. 

:As a web3-native company, Kaito can analyze and understand the nuances of 

 and concepts. This gives it an edge when compared to Web 2.0 search engines that struggle to understand this space. 

: Kaito tracks market sentiment at various levels, including general market sentiment, sector-specific sentiment and sentiment toward specific tokens and projects, providing investors and traders with an important metric in assessing a project’s value.

Kaito uses a custom LLM to enhance its data processing capabilities. The platform aggregates data continuously from various sources, including social media, forums and news websites. This data is then processed using Kaito’s natural language processing capability to identify relevant information, extract key insights and analyze market sentiment. 

In addition, its platform uses a reputation system to give weightage to different posts based on the reputation of each poster. It also employs sophisticated algorithms to filter out spam and bots that often try to shape public opinion on social media platforms, especially on X. 

In December 2024, Kaito AI introduced two new elements to its ecosystem: 

 collection. Yaps is a scoring system that measures user contribution and engagement within the web3 community. Users earn 

 by creating valuable content, engaging with others in the crypto space and participating in discussions on 

. Kaito uses four main attributes in allotting these points:

The system also automatically filters out spam posts, making sure only real posters and useful posts can earn Yap points. While Kaito hasn’t officially confirmed a token airdrop associated with Yaps, the program allows participants to accumulate points that might play a role in future rewards, or initiatives within the Kaito AI ecosystem.

Participation in the Yaps program is completely free. Users just need to log in with their Crypto Twitter accounts and Kaito will start tracking their Yaps scores automatically. 

Genesis NFTis a limited-edition collection of 1,500 

 launched by Kaito AI. Priced at 0.1 ETH each, these NFTs have been minted in three phases:

As of Dec 26, 2024, NFTs in the collection are tradable on OpenSea, with a floor price of approximately 3.69 ETH. 

Kaito is a new and innovative service in the web3 space. Its use of AI to cut through the noise and fragmentation presents a great opportunity for the entire ecosystem. Kaito’s 

 suggests that it’s likely to roll out new features and/or services in the future. While the high subscription fee may be an obstacle for large-scale adoption, Kaito is still likely to become an important tool in the hands of institutions and 

 Perpetual Contract with up to 75x leverage now!

Intermediate

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Kaito: AI-Powered Web3 Information Platform

Bybit Learn

web3

Explainers

Altcoins

LumiWave is a content ecosystem centered on web3 gaming. It aims to provide a system for converting global intellectual property into blockchain technology.

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 has been one of the most lucrative fields in the blockchain industry, so it's no surprise to hear that more and more companies want to get involved. LumiWave hopes to ease the transition by providing a convenient and reliable way for companies to turn their intellectual property (IP) into web3 games. Can this blockchain ecosystem provide critical infrastructure for web3 gamers? Keep reading to learn more details about LumiWave's features and future plans.

 is a content ecosystem centered on web3 gaming. It aims to provide a system for converting global intellectual property into 

. Gamers can access blockchain games and earn rewards, while developers can get help managing their digital assets.

LumiWave was initially founded by Sai Vardhan and Charan Teja under the name of ONBUFF. Vardhan has a background in economics, while Teja studied sociology and business administration. The two founders began working together in 2020 to help companies with digital marketing. They realized there was a real need for services that could help established businesses turn their IP into web3 content.

The project was initially launched under the name of ONBUFF, and ran on the Ethereum chain. However, in 2023, the company began plans to 

 instead. This decision was meant to improve scalability and to lower costs for using the company's services. As part of the migration, the project chose to rebrand as LumiWave and convert all of its existing ONIT tokens into LWA tokens. 

LumiWave was born out of the founders’ experiences working in digital marketing. They noticed that many businesses wanted to get involved in the web3 space, but were struggling to do so. LumiWave hopes to be a helpful transition between the world of Web 2.0 and web3 design. 

It plans to create a quick and convenient way for people to add blockchain technology to existing IP. While LumiWave’s primary goal is web3 marketing, the company has found that the most effective way to achieve this objective is to focus on gaming and 

. The platform hopes that by offering these in-demand services, it can make it easier for companies to reach out to people in crypto spaces.

LumiWave's architecture is designed around a semi-modular blockchain concept. The entire ecosystem is based on the Sui platform, and the 

 (DPoS) system keeps track of new transactions and records made on LumiWave. Its validation system requires users to stake tokens instead of solve computer algorithms, and is thus both more eco-friendly and scalable than 

LumiWave then conceptualizes the blockchain 

. While all projects on LumiWave follow the same inherent set of guidelines, each company is its own "planet." This allows every new IP provider to design its own approach to things like web3 gaming design and NFT values. However, users can still easily travel between planets, so they can move assets like NFTs or ecosystem tokens between different IP projects they interact with.

The LumiWave platform has a comprehensive suite of products designed to bridge the gap between users and IP companies. Following are the key benefits you can enjoy via the LumiWave website.

The INNO platform is the main ecosystem that runs all of LumiWave's IP features. It includes multiple components, which users can enjoy and companies can use to market their IP.

INNO ID is the user identification code that each person on LumiWave has. INNO IDs are the blockchain version of the accounts used on traditional Web 2.0 sites. They include an individual identifier that’s linked to a person's account activity and assets. 

INNO SWAP is an exchange in which players can manage their assets. Users can convert LumiWave tokens to planet tokens that can be used for individual IPs. The swap also allows users to exchange their in-game points for cryptos that are tradable on other exchanges.

Instead of having a built-in wallet that LumiWave manages, the INNO Platform lets you link your user ID to external wallets. It currently supports 

, the Sui Wallet and the Polygon mainnet wallet. This wallet structure provides players with extra flexibility and customization.

To support all of the various IP-related NFTs in its ecosystem, the INNO platform includes a full NFT marketplace. Users can buy and sell NFTs and sort through a vast collection of NFTs based on their rarity, use and other parameters. 

The INNO Games ecosystem creates an exciting way for users to interact with their favorite IP. It includes a variety of game styles, ranging from puzzle games to MMORPGs. The gaming system uses both software and technology to run its games, with the main goal to entertain users. Instead of focusing on investing, each game focuses on creating engaging mechanics that introduce players to the company's IP.

In addition to NFTs gained through interacting with IPs, LumiWave also has its own standalone NFT collection, 

, which consists of a set of cat-themed NFTs with various accessories and appearances. People who hold one of these NFTs have access to additional perks. Not only do they get priority for various transactions, but NFT holders also have membership in exclusive LumiWave communities. 

 has included details such as launching gaming infrastructure and designing wallets for its users to work with. Now that the basic system is all set up, LumiWave has been prioritizing its migration from Ethereum to Sui. The ecosystem is still in the middle of merging all of its assets and rebranding its marketing to reflect the changes. 

LumiWave hasn't released its 2025 road map yet. Presumably, the system's developers are still focused on finishing up the final stages of the 2024 road map, such as putting the finishing touches on its DeFi system. This year (2025) is also likely to include more partnerships for LumiWave. As the system onboards new IP, users can expect to see more games, more NFT launches and other exciting releases.

Initially called ONIT, LWA tokens are the native utility tokens of LumiWave. While individual IPs can have their own tokens, the LumiWave token is used as a universal currency to buy items in the marketplace and regulate token exchange rates. LWA has a total supply of just over 770 million tokens, distributed according to the following plan:

The LumiWave token debuted with a price of $0.19 back in 2020, and quickly shot up to an all-time high (ATH) of $0.7781 by Sep 8, 2020. It then declined to a low of $0.02 by the start of 2021, before rallying again to approximately $0.22. LWA experienced its next crash in mid-June 2021, with prices as low as $0.03. It then recovered once again to a high of $0.39 in December 2021. Since then, its price dropped below $0.10 and hasn’t recovered since. The coin reached an ATL of $0.017 on Feb 3, 2025. Since that time, its price has mostly fluctuated between $0.01 and $0.03.

CoinMarketCap's community sentiment tracker reports an 

 on this token. The coin has lost some momentum following its rebranding, and is struggling to regain its former audience. However, token pricing analysts predict some slow yet steady growth for this token. Though LWA might not perform as well as other coins on the market, CoinCheckup says it may end the year at a 

The main benefit of investing in the LWA token is that it has a lot of utility. Since LumiWave users need LWA for marketplace transactions, the tokens retain some of their value, regardless of how the market fluctuates. Furthermore, this token has had some occasional price jumps that provide potential for investors to profit. 

However, even though the LWA token might have some promise, it's important for investors to remain cautious. The LumiWave project has been somewhat vague as to the precise benefits it’s providing, and it hasn't really explained how it plans to stand out in a web3 space saturated with gaming content. To achieve long-term success, this project needs to partner with a lot of reputable IP providers and provide more clarity regarding its road map. Until then, investors need to 

 and avoid putting too much of their funds into LWA.

LumiWave's mission to help companies better monetize their IP is exciting. As more projects move into the web3 space, the infrastructure to ease this transition will be highly useful. However, LumiWave has a lot of competitors in the web3 gaming and IP market, and it will need to work hard if it wants to distinguish itself. 

LumiWave (LWA): Illuminating the Path to Web3 Gaming Innovation

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