Ether might face challenges in 2025, SOL ETF chances increase, and additional updates: Hodler’s Digest, Dec. 29 – Jan. 4

The prediction that Ethereum might face challenges in 2025 has been made, while the chances of the US listing a Solana ETF have increased to around 77%, higher than initially expected. This news comes from Matthew Sigel, head of digital assets research at VanEck. The crypto industry is buzzing with excitement about more ETF listings in the US, especially after President-elect Donald Trump’s recent win. Polymarket, a cryptocurrency prediction platform, originally reported the odds of a US Solana ETF listing in 2025 as about 77%. However, Sigel believes these odds are actually undervalued.

In another development, Do Kwon, co-founder of Terraform Labs, appeared before a US judge on January 2, 2025, and pleaded not guilty to various charges related to the collapse of the Terra ecosystem. This was the first legal hearing since his extradition to the US, marking a significant moment in his legal journey.

According to Haseeb Qureshi, managing partner at Dragonfly Capital, AI agent tokens are expected to outperform memecoins throughout 2025. However, this momentum may slow down heading into 2026. Qureshi believes that this shift is a move away from financial nihilism towards financial optimism. He added that the trend of AI agents in the market is likely to continue, although he predicts it won’t last forever.

China has tightened its oversight on crypto trade with new forex rules, requiring banks to monitor and report risky transactions related to cryptocurrencies. The regulations aim to make it harder for residents to purchase digital assets in mainland China. Such restrictions indicate a continued tightening of China’s stance on crypto.

To provide temporary relief, the US Internal Revenue Service (IRS) has adjusted its rules on crypto cost-basis methods. They have now allowed crypto holders on centralized exchanges the option to choose their preferred accounting method, avoiding defaulting to less preferable options like FIFO (First In, First Out). This flexibility is a welcome change for investors in the crypto space.