The cryptocurrency market saw a sharp decline on February 4, with total market capitalization dropping 2.4% to $2.67 trillion over 24 hours. Trading volume remained elevated at $188.7 billion. Bitcoin (BTC) fell 3.14% to $76,305.98, while Ethereum (ETH) slipped 3.5% to $2,266.67. Investor sentiment worsened as the Fear & Greed Index fell to 14, firmly in Extreme Fear territory, down from 17 the previous day.
Gainers & Losers: WLFI Up 5.85%, LIT Down 6.56%
Several tokens moved against the broader trend. World Liberty Financial (WLFI) rose 5.85% to $0.1367, Jupiter (JUP) gained 5.02%, and Cosmos (ATOM) climbed 4.76%. On the losing side, Lighter (LIT) dropped 6.56% to $1.51, Solana (SOL) fell 4.45%, and Canton (CC) slipped 4.40%. Tria (TRIA) was the top performer, surging 14.72% to $0.01731.
Key News: Vitalik Declares Rollup Roadmap Outdated, Aave DAO Proposes Freezing V3 Deployments
Ethereum co-founder Vitalik Buterin stated that the rollup-focused roadmap is no longer suitable, citing slow L2 decentralization and faster L1 scaling expected to reduce fees by 2026. Aave DAO proposed freezing Aave V3 deployments on zkSync, Metis, and Soneium, requiring future deployments to generate $2 million annual revenue to optimize multichain efficiency. Arbitrum warned users after its DAO X account was compromised, urging no interaction with posts while confirming protocol and funds are secure.
The U.S. Treasury is investigating crypto platforms facilitating sanctions evasion by Iran, targeting exchanges, stablecoins, and infrastructure. Iranian-related transaction volumes have reached $8-10 billion. In politics, Trump adviser Patrick Witt said the White House rejects crypto legislation targeting Trump or his family, as Senate talks continue with Democratic demands for ethics rules.
Exchange volumes for 2025 showed the top 10 global exchanges recorded $18.7 trillion in spot trading, up 7.6% year-on-year. Binance ranked first, Bybit second, and MEXC gained the most due to zero-fee trading.