Tether’s USDT stablecoin has experienced a 2.8% decline in market capitalization, dropping from a peak of $141 billion on December 19, 2024, to approximately $137 billion by early January 2025. Additionally, daily trading volumes have decreased by 64%, from around $154 billion in mid-December to $55 billion on January 6, 2025.

Matrixport, a crypto financial services platform, attributes this downturn to a typical slowdown in trading activity during the holiday season, suggesting that it may not indicate a bearish market trend. They note that increased stablecoin trading volumes usually signal bullish momentum, reflecting more fiat money entering the crypto ecosystem. Conversely, declining volumes often suggest a consolidation phase for Bitcoin and the broader crypto market.

The firm advises against premature bearish interpretations, proposing that the observed trends could simply be a seasonal lull. With the new year underway, they anticipate that it won’t be long before the market’s bullish momentum potentially resumes.

This perspective comes amid community discussions linking USDT’s market cap decline to the European Union’s Markets in Crypto-Assets Regulation (MiCA). Some reports suggested that European crypto exchanges might delist USDT due to MiCA compliance issues. However, local regulators have not provided such guidance, and trading of USDT has continued across Europe, with major exchanges like Binance maintaining support for the stablecoin.

In early 2025, global law enforcement agencies intensified efforts to combat cryptocurrency-related scams and AI-driven deepfake frauds, leading to significant arrests across multiple countries.

On January 5, Vietnamese police apprehended four individuals involved in a cryptocurrency mining scam that defrauded over 200 victims of approximately 4 billion Vietnamese dong ($157,300). The suspects, led by Tran Minh Quang, operated a fraudulent crypto-mining website named BitMiner, falsely presenting it as a Dubai-based company and luring investors with promises of unrealistic returns.

In the United States, the Springfield Police Department in Massachusetts issued warnings about a rise in cryptocurrency-related scams, particularly those involving crypto ATMs. Scammers have been directing victims to deposit funds into these machines, effectively transferring money to the fraudsters. Authorities advise citizens to be cautious of any payment demands in cryptocurrency and to disconnect such calls immediately.

Additionally, Hong Kong police arrested 31 individuals, primarily university students, involved in AI deepfake scams that defrauded victims of approximately 34 million Hong Kong dollars ($4.37 million). The syndicate utilized AI face-swapping technology to impersonate attractive individuals, engaging victims in deceptive romantic relationships to facilitate financial fraud. Operating for over a year, the group targeted individuals in Taiwan, Singapore, Malaysia, and the United States.

Jeju Island, South Korea’s largest and self-governing province, is set to introduce non-fungible token (NFT) tourist cards in the latter half of 2025, aiming to attract millennials and Generation Z travelers. These digital cards will offer benefits such as travel subsidies and discounts at various tourist attractions, enhancing the island’s appeal to younger visitors.

Known for its scenic hiking trails and resorts, Jeju Island has previously embraced blockchain technology, notably launching a blockchain-based COVID-19 contact tracing app in 2021. The upcoming NFT tourist cards will undergo a trial phase before their full implementation, reflecting the island’s commitment to integrating innovative technologies to boost tourism.

In March 2024, Jeju officials explored the potential of blockchain and NFTs to bolster the local economy, discussing applications in sectors like tourism and fishing. The NFT tourist cards are a direct outcome of these discussions, aiming to increase repeat visits from younger demographics by leveraging digital engagement.

This initiative aligns with a broader resurgence of interest in cryptocurrencies and digital assets in South Korea. As of November 2024, the country saw an increase of 610,000 crypto users, totaling approximately 15.6 million, which constitutes about 30% of the population. By adopting NFT technology in tourism, Jeju Island positions itself at the forefront of digital innovation, catering to the evolving preferences of tech-savvy travelers.