Making Sense of Market Shifts: Navigating Volatility and Decoding The “American Narrative” in Crypto

Week 10 of 2025 began with heightened volatility across the financial markets. U.S. policies not only impacted domestic equities but also sent ripples through global markets, particularly in India and China.

Crypto was no exception. Last week’s Bybit hack triggered a market pullback, but sentiment briefly turned following U.S. President Donald Trump announcement regarding the U.S. Strategic Crypto Reserve.

This sparked an initial 10-20% price surge, but the momentum did not last due to ETF outflows, broader risk-off sentiment, and escalating trade war concerns. Despite the overall market pullback, certain outliers emerged.

In this week’s edition of Crypto Market Monitor, we analyse these standout assets to identify the current market trend.

XRP – “America’s Favorite Crypto” Sees Renewed Interest

XRP, often dubbed “America’s Favorite Crypto”, is gaining bullish momentum following its inclusion in the U.S. Crypto Strategic Reserve, reinforcing its alignment with the “American narrative”. Despite years of regulatory scrutiny XRP, due to its legal battle with the SEC, recent developments signal a favorable shift.

With XRP no longer classified as a security, investor confidence has surged, driving a 10% rally, making it a rare winner in the recent crypto downturn.

Cardano ($ADA) Defies Market Correction

Cardano ($ADA) was another standout performer following the Crypto Strategic Reserve announcement, surging 20% in response. Unlike most tokens that retraced shortly after the news, ($ADA) held its gains, positioning itself as one of the week’s strongest performers. Its resilience amid broader market turbulence underscores growing investor confidence and long-term potential.

Hedera ($HBAR) – The Institutional Favourite

Hedera ($HBAR), governed by a council of 39+ industry giants including Google and IBM, also defied market trends. As one of the earliest crypto projects to engage directly with governments, Hedera’s strong institutional ties and regulatory-friendly positioning have worked in its favor. Adding to the momentum, the announcement of Grayscale’s filing for an HBAR ETF ignited a 30% rally, making it one of the week’s top performers.

Unlike XRP, ADA, and HBAR, which surged following their inclusion in the U.S. Crypto Strategic Reserve, Solana ($SOL) saw muted price action. Several key factors influenced its performance:

FTX’s Unlock

Earlier this month, 11.2 million $SOL ($1.57 billion worth, approximately 2.2% of circulating supply) was unlocked from FTX’s estate earlier this month. These tokens, were previously auctioned at discounted prices, introduced substantial sell pressure:

• Galaxy Digital had purchased 25.5M $SOL at $64
• Pantera Capital had bought 13.6M $ at $95
• Figure Markets had acquired 1.8M $SOL at $102

FTX’s estate still holds additional $SOL scheduled unlocks, including 12,700 $SOL on April 1^st and73,700 $SOL on Mary 1st, keeping short-term selling pressure high.

Solana Improvement Documents (SIMDs): Governance Proposals Spark Debate

Beyond the FTX overhang, two major governance proposals (SIMDs) have sparked debates among validators and the broader Solana community:

• SIMD-0123: Proposes automatic redistribution of priority fees to stakers, reducing direct validator revenue. Currently, validators have discretion over fee sharing, but this change would enforce fairness through on-chain verification. While this enhance equity, it may lower validator rewards, making validating transactions on Solana less attractive.
• SIMD-0228: Introduces dynamic SOL inflation adjustments based on staking participation. If staking activity increases, inflation decreases; if staking drops, inflation rises. This mechanism aims to maintain economic balance, though it could also impact validator incentives.

As these proposals evolve, their implications on Solana’s staking dynamics, validator participation, and overall network health remain key points of contention.

Validator Concerns & Galaxy Digital’s Influence

One of the largest buyers of FTX’s SOL, Galaxy Digital is also one of Solana’s top validators (currently ranked 4th). In 2024 alone, Galaxy has earned approximately $22M from validator fees & MEV (Maximal Extractable Value).

If SIMD-0123 is approved, validators like Galaxy could see their earnings reduced, potentially leading to resistance from major stakeholders.

Despite current volatility, the U.S. remains bullish on crypto for March, with major regulatory and legislative milestones ahead:

1. White House Crypto Summit – March 7, 2025
2. Senate Banking Committee Vote on the Stablecoin Bill – Between March 10-14
3. SEC’s First Crypto Roundtable – March 21

These events could further validate the “American Narrative” coins.

Conclusion: Short-Term Uncertainty, Long-Term Optimism

Solana faces near-term volatility, with FTX-related sell pressure and governance debates acting as headwinds. However, key events in March, including shifts in U.S. crypto policy, could shape broader market sentiment.

The coming weeks will reveal whether the market can absorb new supply or if selling pressure pushes prices lower. Regardless of the immediate outcome, one thing is clear—the American Crypto Narrative is accelerating, and the market must decide whether it’s ready to keep up.

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