 Crypto liquidations hit $10B, 0G launches $88M DeFi AI agent fund: Finance Redefined 
2025-02-08
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Global trade war concerns ignited by US President Donald Trump’s import tariffs shook the crypto markets this week, amounting to over $10 billion worth of liquidations within 24 hours on Feb. 3.
Despite the downside volatility triggered by macroeconomic concerns, investments continued flowing into the crypto industry. Notably, 0G Foundation launched a $88.88 million ecosystem fund to accelerate projects creating AI-powered decentralized finance (DeFi) applications.
Crypto market liquidations likely reached $10 billion — Bybit CEO
The recent crypto market correction may have liquidated up to $10 billion worth of capital, eclipsing previous estimates, according to Bybit’s CEO.
More than $2.24 billion was liquidated from the crypto markets in 24 hours on Feb. 3, according to CoinGlass data.
Bybit co-founder and CEO Ben Zhou, however, said the actual figure might be five times larger.
“Bybit’s 24hr liquidation alone was $2.1 billion,” Zhou wrote in a Feb. 3 X post.
“I am afraid that today’s real total liquidation is a lot more than $2 billion, by my estimation, it should be at least around $8 billion -10 billion,” he said.
0G Foundation launches $88 million fund for AI-powered DeFi agents
0G Foundation, the organization overseeing the development of the 0G decentralized AI operating system, launched an $88.88 million ecosystem fund to accelerate projects creating AI-powered DeFi applications and autonomous agents, also known as DeFAI agents.
The fund received strategic backing from Web3 investment firms including Hack VC, Delphi Ventures, Bankless Ventures and OKX Ventures.
The fund’s launch comes at a “pivotal moment” for the convergence of blockchain and AI applications, according to Michael Heinrich, co-founder and CEO of 0G Labs.
“The rapid growth of AI capabilities, coupled with the need for trustless, transparent systems in finance, makes this the ideal time to accelerate the development of autonomous agents,” Heinrich told Cointelegraph.
Solana app revenues up 213% in Q4: Messari
Application revenues on the Solana network increased by 213% in the fourth quarter of 2024, primarily due to memecoin speculation, according to a report by crypto research firm Messari. 
Cumulative app revenues grew from $268 million in Q3 2024 to $840 million in Q4, Messari said. They peaked in November at $367 million, according to the report.
The gains stemmed from increased memecoin trading, which was the driving force of Solana’s decentralized finance (DeFi) ecosystem in 2024. 
Memecoin launchpad Pump.fun clocked $235 million in Q4 revenue for a quarter-over-quarter increase of some 242%, Messari said. 
THORChain approves plan to restructure $200 million debt
Decentralized liquidity protocol THORChain’s node operators approved a proposal to solve its liquidity issues by converting the platform’s defaulted debt into equity.
On Jan. 23, THORChain suspended its lending and savers programs for Bitcoin (BTC) and Ether (ETH) to prevent an insolvency crisis and restructure the protocol’s debt. The platform paused ThorFi redemptions for 90 days to allow the community to develop a plan to stabilize its operations.
Following the pause, the THORChain community proposed different restructuring plans to ensure the network’s continued operation while compensating affected users.
On Feb. 2, the platform’s node operators approved a proposal that involves converting its defaulted debt into tokens representing equity in the platform.
Fed’s Waller backs regulated stablecoins to boost US dollar’s global dominance
Federal Reserve Bank Governor Christopher Waller said he supports the adoption of stablecoins with clear rules and regulations because it will likely cement the US dollar’s status as a reserve currency. 
Waller, chair of the Fed Board’s payments subcommittee, said in a Feb. 6 interview with the Atlantic Council think tank that stablecoins “will broaden the reach of the dollar across the globe and make it even more of a reserve currency than it is now.”
He said: “What I see with stablecoins is they are going to open up possibilities and other ways of doing payments on the rails.” 
In Waller’s opinion, good regulation of stablecoins only strengthens the dollar as a reserve currency and its use in international trade, finance and investments. 
DeFi market overview
According to data from Cointelegraph Markets Pro and TradingView, most of the 100 largest cryptocurrencies by market capitalization ended the week in the red.
The Virtuals Protocol (VIRTUAL) token fell over 46% as the biggest loser in the top 100, followed by the Arweave (AR) token, down over 38% during the past week.
Thanks for reading our summary of this week’s most impactful DeFi developments. Join us next Friday for more stories, insights and education regarding this dynamically advancing space.