Welcome to this week’s edition of This Week in Crypto, where we bring you the latest developments shaping the cryptocurrency landscape. From states embracing Bitcoin reserves to the rise in crypto philanthropy and concerns about market oversaturation, here’s what you need to know.
- More states are moving toward Bitcoin reserves, with Maryland, Iowa, and Kentucky introducing new bills, and Utah and Arizona making progress on similar legislation.
- Crypto donations reached over $1 billion in 2024, with more charities accepting digital assets and experts predicting even greater giving in 2025.
- The number of cryptocurrencies on CoinMarketCap has surpassed 11 million, raising concerns about market oversaturation and the future of altcoins.
Let’s dive into this week’s stories in more detail!
More U.S. States Move to Establish Bitcoin Strategic Reserves
States across the U.S. are actively introducing legislation to adopt Bitcoin (BTC) as a strategic reserve asset. Recently, Maryland, Iowa, and Kentucky proposed bills allowing their states to allocate funds into Bitcoin, joining a growing list of 17 states considering similar measures. Meanwhile, Utah is leading the way, with legislation advancing closer to becoming law.
- Maryland, Iowa, and Kentucky have introduced Bitcoin reserve bills, each with different approaches to integrating Bitcoin into their state financial strategies. Kentucky’s bill limits digital asset investments to those with a market cap over $750 billion—meaning only Bitcoin qualifies.
- Utah is on track to be the first state to enact a Bitcoin reserve law, with its amendment passing the House and moving to the Senate. If approved, it would allow the state’s treasurer to invest up to 5% of public funds into Bitcoin and other digital assets.
- Arizona is also making progress, with its Strategic Bitcoin Reserve Act already passing the Senate Finance Committee and now awaiting a House vote.
As more states recognize Bitcoin’s potential role in financial reserves, government adoption is continuing to expand. These legislative moves could mark a shift toward Bitcoin being seen as a legitimate long-term asset for state treasuries.
Crypto Donations Surpass $1 Billion in 2024, Set to Grow in 2025
Crypto philanthropy hit a major milestone in 2024, with over $1 billion in donations made through digital assets. The increase comes as cryptocurrency values surged and more nonprofits began accepting crypto contributions. Experts predict that crypto donations will continue growing in 2025, potentially reaching $2.5 billion.
- Over 70% of top U.S. charities now accept cryptocurrency donations, showing that nonprofit organizations are increasingly recognizing crypto as a legitimate way to raise funds.
- Bitcoin, Ether, XRP, and Solana made up 90% of all crypto donations, reflecting a shift away from stablecoin donations, which were more common during market downturns.
- Crypto donors tend to be younger and wealthier than traditional donors, often motivated by either their belief in crypto’s mission or the financial benefits of donating appreciated digital assets.
As crypto adoption grows, more charities are expected to integrate digital asset donations into their fundraising strategies. With tax advantages and ease of giving, crypto philanthropy could become an even larger part of the charitable landscape in the years ahead.
Crypto Market Nears 11 Million Tokens, Raising Oversaturation Concerns
The number of cryptocurrencies listed on CoinMarketCap has surpassed 10.99 million, largely driven by the rapid launch of memecoins on the Solana network. While new token creation has always been part of the crypto ecosystem, some analysts warn that the sheer volume of assets could lead to market oversaturation, making it harder for altcoins to gain traction.
- The crypto market is more crowded than ever, with over 36 million altcoins in existence today, compared to fewer than 3,000 in 2018. This dramatic increase has raised concerns about whether investor attention is being spread too thin.
- Coinbase CEO Brian Armstrong has acknowledged the issue, stating that evaluating every new token individually is no longer practical. He has suggested that exchanges may need a new approach to token listings to keep up with the overwhelming supply.
- Industry experts predict a wave of consolidation in 2025, where weaker projects will merge or disappear, similar to the early days of mobile apps. This shift could help refine the market and strengthen long-term crypto adoption.
With so many tokens competing for attention, investors may need to be more selective, prioritizing projects with strong fundamentals and real-world utility. While the surge in new coins can create excitement, a more sustainable market could emerge as the industry matures.
