Crypto Markets Slide as GameFi Takes the Brunt, But Some Tokens Buck the Trend
Crypto markets extended losses over the past 24 hours, sliding nearly 3% amid broad selling pressure. Bitcoin (BTC) dipped 2.9% to just below $93,000, while Ethereum (ETH) slipped 3.2% under $3,200. The biggest hit came from GameFi, which plunged 8.6%, with ImmutableX (IMX), The Sandbox (SAND), and GALA all posting double-digit declines.
Layer 1 and Layer 2 networks weren’t spared either, down 4.8% and 6.7% respectively. Yet, not everything is red—Frax (FRAX) and some Solana meme tokens stood out with notable gains. Sector indices also reflected the downturn, with ssiNFT, ssiDePIN, and ssiGameFi all dropping around 9%.
Ethereum Governance: Vitalik Calls for Quality Over Quantity in DAOs
Ethereum co-founder Vitalik Buterin weighed in on governance today, arguing that the network needs fewer but higher-quality DAOs to solve security and governance issues. In a January 19 post, he stressed that strong DAOs are essential for tasks like oracles, dispute resolution, and protocol maintenance.
Vitalik also introduced the idea of “convex” versus “concave” problems in governance design and warned that without privacy protections, DAOs risk turning into popularity contests driven by decision fatigue.
Crypto Volatility Falls Despite Macro Uncertainty
Data from Matrixport shows implied volatility for Bitcoin and Ethereum has fallen sharply since mid-November, even with ongoing macro jitters.
Despite renewed tariff threats from former U.S. President Donald Trump, volatility has barely budged, dropping roughly 18–25 points over two months. Options market activity suggests low demand for downside hedging, while some savvy Ethereum investors are increasing spot exposure and selling call options—a strategy to earn premiums in a low-volatility environment.
Bitcoin Support Shows Weakness, Risk of Bigger Swings
Analyst Murphy notes that Bitcoin’s key support between $88,000 and $90,000 is showing cracks, raising the risk of heightened price swings. Options data indicates that stabilizing forces at $88K have flipped from Long Gamma to Short Gamma, and GEX at $90K has nearly halved.
Meanwhile, strong support remains between $87,000 and $92,000 due to heavy accumulation, but a break could push Bitcoin toward the $72K–$74K range.
Hyperliquid Takes Lead Among Perpetual DEXs
Hyperliquid reclaimed the top spot in perpetual DEX trading as activity on Lighter cooled post-airdrop. Over the past week, Hyperliquid logged $40.7B in trading volume, outpacing Aster ($31.7B) and Lighter ($25.3B). Open interest also favors Hyperliquid, with $9.57B in 24-hour OI compared to a combined $7.34B across competitors.
$866 Million Liquidated in Crypto Sell-Off
Volatility wreaked havoc on leveraged positions, triggering $866 million in liquidations over 24 hours. Longs bore the brunt at $783 million, while shorts accounted for just $82 million.
Bitcoin longs: $222M wiped out
Ethereum longs: $118M wiped out
Largest single liquidation: Hyperliquid BTC-USDT, $25.83M
In total, 242,718 traders were liquidated globally, highlighting the risk in today’s volatile markets.
