Crypto and TradFi markets had a strong opening today, as Bitcoin briefly jumped 5% due to optimism about a tariff deal. China and institutional investors in the US wish to avoid a trade war if possible.
Despite these encouraging signs, no deal has actually been reached, and Bitcoin also suffered subsequent losses. The whole market is in a state of flux until the situation becomes more clear.
Today, the Dow Jones Industrial Average surged 1,285 points, or 3.4%, while the S&P 500 and Nasdaq Composite both jumped 3.4% and 3.3%, respectively. Nonetheless, hundreds of stocks have fallen 20% or more.
Meanwhile, Bitcoin has a few advantages that can protect it from tariff volatility. For example, a recent report from Binance Research claims that the least risky cryptoassets are the most insulated from drops.
This includes RWAs and centralized exchanges, but Bitcoin is a close third.
Furthermore, the markets are very optimistic about a deal to avoid the tariffs. Yesterday, rumors of a pause triggered a trillion-dollar rally, highlighting traders’ desperation for good news.
Despite the retaliatory tariffs, China is similarly eager to avoid a full-blown trade war with the US. Trump claimed that he is making progress with China and South Korea, fueling optimism.
I just had a great call with the Acting President of South Korea. We talked about their tremendous and unsustainable Surplus, Tariffs, Shipbuilding, large scale purchase of U.S. LNG, their joint venture in an Alaska Pipeline, and payment for the big time Military Protection we…
— Donald J. Trump Posts From His Truth Social (@TrumpDailyPosts) April 8, 2025
Nonetheless, it’s important not to overstate Bitcoin’s chances of success under tariffs. Despite the hopes on both sides of the Pacific, China confirmed that it’s prepared to fight a trade war if Trump forces its hand.
This might explain Bitcoin’s price drops despite its strong performance since yesterday. Ultimately, all we can do is wait and hope.
XRP is emerging as a strong contender to overtake Ethereum (ETH) in market capitalization. The 2025 market outlook reveals several factors that support the scenario where XRP becomes the second-largest altcoin by market cap.
Recent data highlights three main reasons why XRP has the potential to reach this milestone shortly: XRP’s Fully Diluted Valuation (FDV) has surpassed ETH’s, capital is shifting from ETH to XRP, and investor sentiment is increasingly positive toward XRP.
XRP’s Fully Diluted Valuation Has Surpassed ETH’s
According to the latest data from CoinMarketCap, XRP has officially surpassed Ethereum in terms of Fully Diluted Valuation (FDV). Specifically, XRP’s FDV is $210 billion, while ETH’s is $196 billion.
FDV is a key metric. It reflects the potential value of all tokens in the total supply, including those not yet in circulation. This suggests that XRP is valued higher than ETH when considering their maximum supply.
Investors like John Squire and Edoardo Farina see XRP’s lead in FDV as an early sign that its market cap might soon overtake ETH’s.
“This marks over 6 straight months of XRP outperforming Ethereum. The flip has already begun!” Edoardo Farina predicted.
Investor DONNIE also believes XRP’s higher FDV signals a shift in market perception. According to him, it reflects growing investor acceptance of XRP. This sentiment seems to favor the narratives and forecasts surrounding XRP over those of ETH.
Capital Is Shifting from ETH to XRP
Another key factor is the shift in investment capital between the two cryptocurrencies. TradingView data shows that ETH’s dominance (ETH.D) has dropped to a new low, while XRP’s dominance (XRP.D) rose sharply in 2025.
Ethereum Dominance vs XRP Dominance. Source: TradingView.
Dominance indexes reflect how capital is distributed across the market. Since November last year, ETH.D has fallen from 14% to 7%. Meanwhile, XRP.D has climbed from 1.2% to 4.5%. This contrast reveals that investors are prioritizing XRP over ETH.
This capital movement has also triggered a significant technical outcome. The XRP/ETH chart has broken a downtrend line that has held since 2016, signaling a long-term bullish trend for the pair.
The breakout represents more than just a technical signal. It reflects a broader shift in market sentiment. Investors are increasingly focusing their attention on XRP.
A recent report from CoinShares supports this. It states that digital asset investment products saw contrasting flows between ETH and XRP in the past week. While Ethereum recorded outflows of $26.7 million, XRP attracted a strong inflow of $37.7 million.
This capital shift demonstrates XRP’s growing potential to close the gap in market cap with ETH.
Investor Sentiment is More Positive Toward XRP
Finally, investor sentiment is leaning toward XRP. Recent reports highlight growing optimism around XRP, while ETH faces more skepticism.
According to a recent BeInCrypto report, XRP’s price appears to be in a “pre-set” growth stage. This is driven by support from financial institutions and the development potential of the XRP Ledger.
Recent news has fueled a positive atmosphere for XRP holders. Ripple acquired Hidden Road in a $1.25 billion deal. HashKey launched the first institutional XRP investment fund in Asia. Coinbase also introduced XRP futures regulated by the CFTC.
A lot happened this week in crypto, marking developments expected to continue shaping the industry. Important headlines came from administrative decisions, ecosystem developments, and analysts probing the market outlook.
In case you missed it, the following is a roundup of some of the most important developments in the crypto market this week.
XRP Lawsuit’s Jay Clayton Became New SDNY Attorney
“Trump’s former SEC Chair Jay Clayton has taken his position as interim US attorney for the Southern District of New York. He will serve for up to four months until confirmed by the Senate or appointed by Manhattan federal judges,” former Fox Business reporter Eleanor Terrett reported.
The move came as Democratic leaders in the Senate reportedly hinted at blocking Clayton’s nomination. Trump’s move to install him as interim could see Clayton avoid the Senate confirmation process.
Clayton is the legal expert who initially filed the longstanding legal action between the SEC and Ripple. As it happened, Clayton filed the lawsuit on December 22, 2020, and resigned the next day in what will be remembered as a “parting shot” for the agency.
Pi Network Pioneer Frustration Over Ambiguous Roadmap
Another crypto incident this week concerned Pi Network pioneers. As BeInCrypto reported, the controversial project released its Mainnet Migration Roadmap. However, it failed to impress pioneers as it lacked key details.
Specifically, several gaps sparked concerns, including failing to disclose how many Pioneers remain in the queue. Similarly, it was unable to show the network’s daily migration capacity. The absence of these figures makes it impossible for users to predict when their migration will occur.
Further, opaque criteria for node rewards and the UI’s “Transferable Balance” underestimating actual migrated amounts raised flags. Pi Network also offers no audit or error‑resolution process for users who spot mismatches in their historical mining data, exacerbating the fears.
“I thought we were mining all of these PI coins this whole time? I thought the security circles were the Consensus Mechanism. It kinda seems to me like there isn’t a blockchain, and never was one. What kind of “Blockchain protocol” would “Require” all tokens to be minted at genesis?” one community member wrote.
Pi Network (PI) price performance. Source: CoinGecko
Data on Coingecko shows PI coin was trading for $0.6539 as of this writing, up by a modest 1.1% in the last 24 hours.
Bitcoin Cycle Unfolds Noticeably Different From Previous Ones
More interestingly, BeInCrypto reported a concerning shift: this cycle is unfolding remarkably differently than the past ones post-halving.
In previous cycles, BTC price tended to rally aggressively months after the Bitcoin halving. The post-halving period saw strong upward momentum and parabolic price action.
This trend was largely driven by retail enthusiasm and speculative demand, which proved most pronounced from 2012 to 2016 and 2016 to 2020.
Things are happening differently in the current cycle. Instead of accelerating after the halving, the price surge began in October and December 2024, driven by Bitcoin ETF (exchange-traded funds) hype. This was followed by consolidation in January 2025 and a correction in late February.
PancakeSwap Announces CAKE Tokenomics Date
This week in crypto, PancakeSwap announced the official date for its CAKE tokenomics, April 23. As BeInCrypto reported, key changes included the removal of veCAKE, staking, and revenue sharing, with 5.3 million CAKE to be burned annually to curb supply.
However, there was also controversy as Cakepie DAO pushed back against veCAKE removal. Several developers and community members believe CAKE Tokenomics 3.0 will benefit the project in the long term.
“At its core, CAKE Tokenomics 3.0 defends true value and protects CAKE holders by strengthening long-term fundamentals—such as aggressively cutting emissions to accelerate deflation and sustainably grow value,” Chef Philip said.
Meanwhile, others voiced strong concerns on X (Twitter), criticizing the decision to eliminate veCAKE. Among them was Cakepie DAO, one of the largest veCAKE holders, who called it non-transparent and potentially damaging to projects built around that model.
Against this backdrop, PancakeSwap resorted to a $1.5 million CAKE compensation plan.
“PancakeSwap is willing to provide 1.5M USD in CAKE to CakePie DAO primarily used to compensate CKP Holders if CakePie DAO enables mCAKE holders to redeem 1:1 back to CAKE and opens the redemption page in a timely manner if the proposal passes. Detailed plans will be announced once the mirror proposal on CakePie is completed,” the Head Chef of PancakeSwap wrote.
Data on CoinGecko shows Pancake’s CAKE was trading for $2.12 as of this writing, up by nearly 10% in the last 24 hours.
Zora Airdrop and Token Launch Announcement
Adding to the list of the many events that happened this week in crypto, Zora Network announced that it would airdrop 1 billion ZORA tokens (10% of the total supply) on April 23. The tokens would reward early platform users across two snapshot periods.
As it happened, the crypto airdrop happened in style, sparking confusion as it lacked an official checker or claim site. Users were required to go to the contract address and check their allocations.
Speaking to BeInCrypto, Jesse Pollak, the creator of the Base blockchain, said that one must not understand anything about crypto or the underlying infrastructure before posting on Zora. He also defended the value of content coins, emphasizing their potential for creators despite volatility.
