šŸ¤© 12 Things That Excite Us in Web3 in 2025

Top 20 crypto assets for Q1/2025

In partnership with

the-crypto-fire-banner

If youā€™re worried that quantum computers could destroy Bitcoin, donā€™t be. Itā€™s unlikely for several reasons I mentioned before. Plus, itā€™s even safer nowā€”Solana just became quantum-resistant!

Hereā€™s what we got for you today:

crypto-chart

šŸš€ Quantum Computing vs. Blockchain Security: Should You Be Freaking Out?

Quantum computing is making waves, and with Google introducing its new "Willow" quantum chip, the crypto world is buzzing with questions about what this means for blockchain and Bitcoin. Add in Solana's recent quantum-resistant move, and it's clear the race to secure crypto is heating up. Letā€™s unpack it all.

quantum-computer

Quantum Computing 101: Why It Matters

Quantum computers are next-level machines. Instead of the basic 0s and 1s of traditional computing, they use qubits, which can represent both at the same time. This makes quantum computers ridiculously fast for certain tasks, including cracking cryptographic algorithms.

Why does this matter? Well, cryptography is the backbone of Bitcoin and most blockchains. If quantum computing levels up enough, it could potentially break Bitcoinā€™s SHA-256 encryption. Thatā€™s got some people sweating.

So... Is Bitcoin Doomed?

Not yet. While Googleā€™s 105-qubit quantum chip is impressive, researchers estimate youā€™d need 13 million qubits to crack Bitcoinā€™s encryption in a single day. Spoiler alert: Weā€™re nowhere near that. Even if quantum computers get there, crypto devs arenā€™t sitting still. Quantum-resistant cryptography is already in the works to keep blockchains secure.

Enter Solana: A Quantum-Resistant Blockchain

Solana just stepped up its game. Developers have launched the Solana Winternitz Vault, a quantum-resistant feature designed to protect user funds from quantum threats. Hereā€™s how it works: The vault generates new keys for every transaction using a hash-based signature system, making it harder for quantum computers to target exposed public keys. The vault isnā€™t a default feature. Users have to actively choose to store their funds in these quantum-proof vaults instead of regular wallets. This isnā€™t a network-wide upgrade (yet), but itā€™s a huge step toward quantum-proofing blockchain systems.

The Bigger Picture: Beyond Bitcoin

Quantum computingā€™s impact isnā€™t limited to Bitcoin. If this tech goes mainstream, it could shake up global cybersecurityā€”from governments to financial systems. But before you panic, know this: These risks are still theoretical and decades away. The tech world is already on it, working on solutions like Solanaā€™s vault and Ethereumā€™s planned quantum-resistant upgrades.

Quantum Computing: Friend or Foe?

Sure, itā€™s scary to think about quantum computers as cryptoā€™s kryptonite. But this tech isnā€™t just a threatā€”itā€™s also an opportunity. From revolutionizing healthcare to tackling climate change, quantum computing has world-changing potential. The challenge? Advancing safeguards as quickly as the technology itself.

The Bottom Line

Quantum computing is advancing, but Bitcoin and blockchains arenā€™t on the chopping block just yet. Solanaā€™s quantum-resistant Winternitz Vault shows that crypto projects are already prepping for the quantum era.

The key takeaway? Donā€™t panic. The crypto world is adaptable, and quantum computing doesnā€™t have to be the villain of this story. Itā€™s more like a frenemyā€”a challenge weā€™ll tackle while unlocking its full potential. Stay informed, stay curious, and watch how this tech showdown unfolds. šŸš€

PRESENTED BY 1440 MEDIA

Looking for unbiased, fact-based news? Join 1440 today.

Upgrade your news intake with 1440! Dive into a daily newsletter trusted by millions for its comprehensive, 5-minute snapshot of the world's happenings. We navigate through over 100 sources to bring you fact-based news on politics, business, and cultureā€”minus the bias and absolutely free.

šŸ’„ Why Did Bitcoin and Altcoins Crash on January 8, 2025?

(All data mentioned is accurate as of the time of writing.)

The crypto market turned red on January 8, 2025, with Bitcoin dropping nearly 5% and altcoins following suit, despite no major macroeconomic news. Letā€™s break it down:

Weak Capital Flows into Spot BTC ETFs šŸ“‰

bitcoin-etf-flow

Capital withdrawals from U.S. Spot BTC ETFs have been massive. On January 7, $543.7M flowed outā€”making it the second-largest net withdrawal in history. Big players like Fidelity, Bitwise, ARK Invest, and Grayscale saw significant outflows, with ARK Invest setting a record $212.6M withdrawal.

The sell-off seems tied to profit-taking after Bitcoin hit $100K. Historically, sharp ETF outflows align with corrections in BTC prices, and this trend is holding true.

Rising 10-Year Bond Yields Trigger Sell-Off šŸšØ

today-market-cap

BTC dipped to $95,9 after briefly topping $100K. But itā€™s not just cryptoā€”stocks and gold are also in the red as the 10-year Treasury yield climbs toward 4.6%.

Why does this matter? Rising yields suggest the Fed might be losing control of the bond market, which has spooked investors. Typically, bond yields drop after rate cuts, but this time theyā€™re risingā€”up 1.1% since September.

This unusual pattern echoes 1998, just before the Dotcom bubble burst, raising concerns about inflation and market instability.

US-10-year-treasury

ā­ Top Highlight in Crypto Today

  • āœØ Grayscale Research released a list of the top 20 crypto assets for Q1/2025. The Top 20 showcases a diverse mix of assets across Crypto Sectors that, in Grayscale's view, hold strong potential for the upcoming quarter.

  • šŸ¦ The Czech National Bankā€™s governor, AleÅ” Michl, showed heā€™s considering Bitcoin as part of the bankā€™s diversification strategy. While no plans are confirmed yet, Michl believes Bitcoin could complement traditional assets like gold.

  • šŸŒ 12 things that excite us in Web3 in 2025:

  1. BTC becomes a reserve asset for the US Federal Reserve

  2. Web3 businesses consolidate as industry giants expand

  3. Apps drive faster adoption of DeFi, AI, and stablecoins

  4. Crypto enables shared economies for humans and AIs

  5. DeSci revolutionizes research and funding

  6. NFTs make a comeback

  7. DePIN solutions transform telecom, AI, energy, and compute infrastructure

  8. Intent-based solutions simplify cross-chain interactions

  9. AI lowers barriers for non-technical builders to create apps

  10. Open-source AI models evolve, handling increasingly complex tasks beyond simple automation

  11. Swarms of AI domain experts replace traditional specialists

  12. AI agents redefine community management

  • šŸšØ Judge Hits Pause on SECā€™s Case Against Coinbase. Judge Katherine Failla sided with Coinbase, saying the confusion around crypto laws needs a higher courtā€™s attention. With courts all over the map on defining crypto, sheā€™s called this a ā€œnew legal issueā€ for appeals to sort out.

    For the SEC, itā€™s a tough loss. Theyā€™ve spent years under the Biden administration arguing that most crypto sales break securities laws. But for now? The case is on ice.

  • šŸ’ø Bitcoin transaction fees fell to $1.40, down from $3 last month. Ethereum fees stayed steady at $1.10, though complex actions like NFT trades still cost $9-$47.

šŸ”‘ The Story of XRP: From Humble Beginnings to 2025 Projections

Letā€™s talk about XRPā€”a coin thatā€™s seen it all, from wild price swings to courtroom drama. Whether youā€™re a seasoned XRP holder or just XRP-curious, hereā€™s the full scoop.

A Quick History Lesson

XRP was born in 2012, but its roots trace back to 2004 when Ryan Fugger founded RipplePay. The vision? A secure global money transfer system. After rebranding to OpenCoin and later Ripple Labs, the company launched the XRP Ledger (XRPL)ā€”a distributed ledger built for ultra-fast, low-cost financial transactions.

Unlike Bitcoin, XRP didnā€™t involve mining. All 100 billion tokens were pre-mined, with Ripple Labs getting 80 billion to fund operations and development. The co-founders split the remaining 20 billion. To keep the supply in check, Ripple locked most of its XRP in escrow, releasing 1 billion tokens monthly.

Ripple cannot create more XRP. The supply is capped at 100 billion tokens, making it a deflationary asset similar to Bitcoin, albeit with a much larger total supply.

XRP has had its share of highs and lows. In 2018, it hit an all-time high of over $3.00. But the party slowed in 2020 when the SEC filed a lawsuit accusing Ripple of unregistered securities sales.

XRP vs. Bitcoin: Key Differences

XRP and Bitcoin may both be cryptocurrencies, but they couldnā€™t be more different under the hood:

  • Supply Cap: XRP is capped at 100 billion tokens, while Bitcoinā€™s limit is 21 million.

  • Transaction Speed: XRP transactions average 4 seconds, compared to Bitcoinā€™s 10 minutes.

  • Scalability: XRP Ledger handles 1,500 transactions per second (TPS), blowing Bitcoinā€™s average 2.5 TPS out of the water.

  • Fees: XRP fees are incredibly low at 0.00001 XRP (roughly $0.000001), while Bitcoin fees hover around $0.50ā€“$1.00 per transaction.

  • Consensus Mechanism: XRP uses trusted validators, making it faster but less secure than Bitcoinā€™s decentralized proof-of-work system powered by miners.

XRPā€™s speed and cost advantages make it ideal for financial institutions, but its consensus mechanism means it doesnā€™t offer the same level of security as Bitcoin.

xrp-vs-btc

The Ripple Ecosystem: More Than Just XRP

The XRP Ledger does more than just move tokens. Itā€™s a powerhouse for real-time settlement, currency exchange, and remittances. Ripple Labs has rolled out game-changing products, including:

  • xCurrent: Lets banks settle cross-border payments with full tracking.

  • xRapid: Uses XRP for liquidity during international transactions.

  • xVia: Helps businesses send payments via RippleNet, Rippleā€™s financial network.

In May 2023, Ripple dropped $250 million to acquire Metaco, a Swiss crypto custody firm. This move bolsters Rippleā€™s offerings in digital asset custody - a big win for its ecosystem.

XRP-ecosystem

šŸ¤” Meme Of The Day

crypto-meme

We read your emails, comments, and poll replies daily

Rate us today!

Your feedback helps us improve and deliver better content!

Login or Subscribe to participate in polls.

Hit reply and say Hello ā€“ we'd love to hear from you!

Like what you're reading? Forward it to friends, and they can sign up here.

Cheers,
The Crypto Fire Team

Reply

or to participate.