February 2025: SEC’s ETF Push, AI Breakthroughs, and Market Turmoil

Get up-to-date with the latest trends in crypto, Bitcoin, AI, and beyond. Oraichain's "Market Insights'' series delivers a monthly snapshot of the hottest narratives shaping the blockchain space. Dive into February's market news and discover what's driving innovation.

Major News

SEC Takes First Steps Toward XRP, Solana, and Litecoin ETFs

The SEC has acknowledged ETF applications for XRP, Solana, and Litecoin, forcing a decision deadline and signaling a potential policy shift. This is the first time the agency has considered an ETF for a crypto asset it once classified as a security. While approval isn’t certain, the move reflects growing confidence in expanding crypto ETFs beyond Bitcoin and Ethereum. (Source: CoinDesk)

Trump’s Executive Order Reshapes U.S. Crypto Policy

President Trump signed an executive order promoting digital assets while banning Central Bank Digital Currencies (CBDCs), citing risks to privacy and financial stability. The order establishes a federal working group to develop a regulatory framework for crypto, stablecoins, and blockchain innovation. 

It also revokes Biden-era policies, signaling a shift toward a more crypto-friendly approach. The directive marks a major step in shaping the future of digital finance in the U.S. (Source: Reed Smith)

Argentina’s $4.5B LIBRA Memecoin Scandal

Argentina’s President Javier Milei is at the center of a $4.5B crypto scandal after promoting the LIBRA memecoin, which crashed 97% within hours. Investigations point to insider trading, with key figures cashing out nearly $100M. The fallout includes a federal probe, impeachment threats, and a stock market drop. 

Milei backtracked, deleted tweets, and denied involvement, while leaked messages suggest deeper political ties. As lawsuits mount and investors demand accountability, the LIBRA incident shakes Argentina’s economy and Milei’s presidency. (Source: DLNews)

Bybit Loses $1.5B in Cold Wallet Exploit

Bybit lost $1.5B in a targeted exploit after attackers compromised a Safe developer’s machine, injecting malicious code into Safe(Wallet)'s AWS infrastructure. The altered JavaScript manipulated Bybit’s transaction signing process, allowing attackers to seize funds. While Bybit’s infrastructure wasn’t directly breached, its signers were unknowingly tricked. 

Bybit is working to recover funds, offering bounties, while experts warn this breach signals a new level of crypto cyber threats. (Source: The Block)

Unichain Mainnet Launches

Unichain Mainnet is officially live, offering 1-second block times, 95% lower fees than Ethereum L1, and seamless cross-chain transactions. Already, nearly 100 top crypto projects, including Uniswap, Circle, and Coinbase, are building on it. Designed for DeFi, Unichain launches as a decentralized Stage 1 rollup with fault proofs, with plans for full interoperability and faster finality. Users can fund wallets, launch tokens, and swap on Uniswap, while devs can deploy apps and integrate stablecoins. (Source: Uniswap)

Berachain Becomes 6th Largest DeFi Chain

Berachain's total value locked (TVL) has surged past $3.26 billion, overtaking Base and Arbitrum to become the sixth-largest DeFi blockchain, per DefiLlama. Infrared Finance leads the network with $1.52B TVL, followed by Kodiak ($1.12B) and Concrete ($800M). 

Berachain’s proof-of-liquidity model is fueling rapid growth, with experts eyeing its potential to challenge larger chains. A recent 80M $BERA token airdrop, worth $632M, adds to its momentum. (Source: Cointelegraph)

BTC in February

February 2025 was a turbulent month for crypto, with Bitcoin plunging 17.4%—its worst February performance since 2014. A key trigger was President Trump’s aggressive tariff policies on imports from Canada, Mexico, and China, fueling fears of a global trade war. As a result, investors fled to safer assets, leading to a broader market downturn. (Source: Various)

AI in February

Grok 3 & Perplexity Take AI Research to the Next Level

Grok 3’s beta release introduces powerful upgrades in reasoning, math, coding, and knowledge, with standout features like DeepSearch for rapid information processing and Think for enhanced problem-solving. 

Meanwhile, Perplexity AI enters the deep research arena by offering a free tool that delivers fast, web-driven reports in minutes. While OpenAI’s Deep Research remains more thorough, Perplexity’s efficiency and accessibility make it a strong contender. While OpenAI leads in accuracy (26.6%), Perplexity follows closely (21.1%), outperforming other alternatives like DeepSeek R1 and Gemini. (Source: Grok, Lifehacker)

BNB Chain's Competition Sparks AI Innovation

BNB Chain has launched an AI Agents competition to attract top developers and drive adoption. Running from February to April 2025, the contest features eight rounds where AI Agents compete based on trading volume, market cap growth, and engagement. Winners receive a $10,000 USDT token purchase from BNB Chain, with tokens airdropped to 1,000 holders. This initiative aims to boost AI-powered crypto projects and community participation.. (Source: Binance)

Kaito AI Drops $KAITO

Kaito AI’s much-anticipated airdrop went live, sparking a wave of excitement. The project aims to create a more balanced attention economy by ensuring users, creators, and brands receive fair rewards instead of centralized platforms capturing most of the value. 

With its AI-driven InfoFi model, $KAITO acts as the economic layer powering this shift. (Source: Kaito AI)

Oraichain in February

Oraichain’s 2025 Vision: The Parallel

Oraichain Foundation is launching The Parallel, an AI-powered ecosystem where AI Agents integrate into blockchain-driven economies. 

Built on four years of development, this initiative focuses on scaling data infrastructure into a Memory Layer for AI Agents, launching an AI Agent marketplace on Oraichain, and establishing AI Agent benchmarking for transparency and performance tracking.

With these advancements, Oraichain is driving decentralized AI adoption and unlocking new opportunities for AI-powered innovation. Learn more.

DeepSeek Now Available on Distilled AI

DeepSeek is now available on Distilled AI, allowing users to build AI agents with next-level intelligence, efficiency, and adaptability. Hosted on Oraichain’s GPU infrastructure, it enhances AI performance while generating yield for ORAI delegators. 

DeepSeek’s "Thinking" mode improves complex question-answering, and its web search integration refines responses with real-time data. Users can get started at mesh.distilled.ai by setting up an AI agent and selecting DeepSeek under "LLM Model." 

Learn more about GPU staking at hub.orai.io/gpu-staking.

Oraichain DAO Ecosystem Growth Fund – February 2025 Update

The Oraichain Foundation continues to fuel ecosystem expansion through its Growth Fund, allocating $50,000 in early 2025 to support two standout projects—HonOrais and Metimmerse. Approved by the Oraichain DAO, these initiatives highlight the network’s commitment to fostering AI-integrated blockchain solutions.

Developers and visionaries are encouraged to explore funding opportunities through the Oraichain DAO. Learn more.

Wrapping up

February brought key shifts in crypto and AI. The SEC’s ETF move hints at evolving regulations, while Trump’s order reshapes U.S. crypto policy. Oraichain’s The Parallel launch drives AI-agent innovation, and Bybit’s $1.5B breach raises fresh security concerns. It’s another wild month, but the trend is clear: AI and crypto aren’t just surviving—they’re evolving, expanding, and proving they’re here to stay.

Explore these advancements and join Oraichain’s thriving ecosystem today! Don’t forget to stay tuned for more exciting updates!