DeepBook Protocol PriceDEEP

As of April 25, 2025, the cryptocurrency market is experiencing significant developments across various sectors, including regulatory changes, institutional investments, and market forecasts. This report provides an in-depth analysis of the day's most impactful events.

Federal Reserve Withdraws Crypto Activity Guidance

On April 24, 2025, the Federal Reserve rescinded its previous guidance on bank involvement in cryptocurrency-related activities. This decision aligns with President Trump's campaign promise to eliminate restrictions hindering banks from participating in legally sanctioned blockchain ventures. The original guidance, issued in 2022, required banks to seek prior approval before engaging in crypto activities. With this withdrawal, the Federal Reserve joins the FDIC and the OCC, which had already rescinded their respective guidance earlier this year. The Fed plans to collaborate with other agencies to evaluate the need for new guidelines supporting financial innovation in the crypto sector.

CME Group Announces XRP Futures Launch

CME Group has unveiled plans to introduce cash-settled futures contracts for XRP, the native token of Ripple Labs, starting May 19, 2025, pending regulatory approval. This initiative marks CME's expansion into altcoin markets beyond Bitcoin and Ethereum, responding to growing investor interest in diversified crypto assets. Notably, XRP has shown resilience in 2025, rising 5.3%, while Bitcoin and Ethereum have experienced declines. The launch of XRP futures underscores the increasing institutional interest in altcoins and aims to strengthen CME's presence in the retail trading segment.

SoftBank Invests in Bitcoin Investment Firm

SoftBank is deepening its involvement in the cryptocurrency sector by backing Twenty One Capital, a new Bitcoin investment firm. This venture is being launched through a SPAC merger with Cantor Equity Partners, led by Brandon Lutnick, and supported by contributions of over 42,000 bitcoins—valued at approximately $4 billion—from Tether and Bitfinex. SoftBank is purchasing $891 million worth of Twenty One shares from Tether, anticipating a significant valuation uplift if the firm trades similarly to other crypto-heavy companies. Twenty One Capital plans to acquire additional Bitcoin using financial engineering, capitalizing on investor interest in crypto-tied equity. However, this model carries inherent risks, especially considering the declining performance of SPACs, placing SoftBank's equity in a vulnerable position during potential financial turmoil.

Coinbase Waives Fees on PayPal's Stablecoin

In a strategic partnership aimed at boosting the adoption of PayPal's stablecoin, PYUSD, Coinbase has announced the waiver of transaction fees for PYUSD and enabled direct redemption for U.S. dollars. This collaboration seeks to increase the use of stablecoins—cryptocurrencies pegged to stable values like the U.S. dollar—for payments. PayPal, which launched PYUSD in 2023, plans to allow merchants to settle transactions in PYUSD, bypassing traditional financial systems. The integration positions PYUSD alongside Circle's USDC, which had previously been the only stablecoin with zero fees on Coinbase. Both companies intend to expand PYUSD's use in decentralized finance (DeFi) and global payment applications. This move comes amid growing stablecoin usage, with a market cap exceeding $238 billion, while PYUSD currently stands at $872 million.

United States Proposes Strategic Cryptocurrency Reserve

President Donald Trump has proposed the establishment of a Strategic Bitcoin Reserve and a United States Digital Asset Stockpile. This initiative aims to maintain government-owned Bitcoin as a national reserve asset and includes a stockpile for other cryptocurrencies such as Solana (SOL), Cardano (ADA), Ripple (XRP), Ethereum (ETH), and Bitcoin (BTC). The reserve is intended to elevate the digital asset sector, responding to what Trump described as previous administration attacks. The working group, chaired by the White House AI & Crypto Czar, is expected to provide recommendations by July 2025. This proposal signifies a shift from a vague stockpile concept to naming specific cryptocurrencies, potentially purchased or held by the government for strategic purposes.

Market Forecasts and Analyst Predictions

Analysts remain optimistic about the cryptocurrency market's future trajectory, predicting potential recoveries and new all-time highs in the second quarter of 2025. This optimism is driven by factors such as the establishment of a Strategic Bitcoin Reserve by the U.S. government, which is seen as a major turning point for crypto adoption. The creation of this reserve is expected to reduce the likelihood of a federal ban on Bitcoin and could encourage other nations to follow suit. Institutional investors are likely to take Bitcoin more seriously, and market watchers anticipate significant price movements as liquidity dynamics and government involvement evolve. Additionally, the Global Liquidity Index (GLI) is considered a key factor in the market's resurgence, with historical correlations indicating that liquidity expansions tend to precede bullish trends in the crypto market.

Conclusion

The cryptocurrency market on April 25, 2025, is characterized by significant regulatory shifts, institutional investments, and strategic initiatives aimed at fostering growth and stability. The withdrawal of restrictive guidance by the Federal Reserve, the introduction of XRP futures by CME Group, and strategic partnerships like that between Coinbase and PayPal's PYUSD highlight the evolving landscape of the crypto industry. Furthermore, proposals such as the U.S. Strategic Bitcoin Reserve underscore the increasing integration of digital assets into national economic strategies. As the market continues to mature, these developments are likely to play pivotal roles in shaping the future of cryptocurrencies.

DeepBook Protocol is a decentralized trading platform and automated market maker (AMM) built on the Sui blockchain. It aims to provide high-performance, low-latency trading experiences by leveraging Sui's parallel execution and low transaction fees.

Key Features and Advantages

1. High Performance and Low Fees: DeepBook utilizes Sui's capabilities to process transactions in approximately 390 milliseconds, with average fees less than a cent. This efficiency is crucial for trading platforms where speed and cost-effectiveness are paramount.

2. Decentralized Central Limit Order Book (CLOB): Unlike traditional AMMs, DeepBook employs a CLOB model, allowing for deeper and tighter liquidity. This design offers better price execution and more control over price orders, making it suitable for sophisticated market makers.

3. Security Measures: The protocol emphasizes security through regular code audits by developers and independent auditors. Additionally, DeepBook has implemented bug bounty programs, rewarding researchers who identify and report vulnerabilities.

Tokenomics

DeepBook's native token, DEEP, has a maximum supply of 10 billion tokens. The distribution is as follows:

• Community Treasury and Future Distribution: 59.98%
• Core Contributors and Early Supporters: 31.02%
• Initial Community Airdrop: 10%

The initial airdrop was distributed as soul-bound NFTs, which users can unwrap to obtain DEEP tokens upon the protocol's official launch.

Market Performance

Since its listing in October 2024, DEEP has experienced significant growth. Initially priced at $0.015, the token surged over 700% to reach $0.20. As of February 2025, DEEP's market capitalization stands at approximately $600 million, ranking it 108th among cryptocurrencies.

Recent Developments

• V3 Testnet Release: In August 2024, DeepBook launched its V3 testnet, reducing transaction gas costs by 60% and introducing the DEEP token. This version allows market makers and traders to share liquidity among pools and offers fee discounts, market maker incentives, and governance functions.

• Exchange Listings: In January 2025, South Korea's Bithumb exchange listed DEEP on its KRW market, leading to a 70% increase in 24-hour trading volume, reaching $96 million.

• Funding Initiatives: The Sui Foundation announced the DeepBook Protocol RFP funding program in December 2024, aiming to encourage innovative development within the Sui ecosystem. Developers and teams were invited to submit proposals, with selected projects receiving financial support.

Challenges and Considerations

Despite its advancements, DeepBook faces challenges:

1. Liquidity Concerns: As of February 2025, DeepBook's total value locked (TVL) is $19.8 million, significantly lower than leading DEXs like Uniswap or PancakeSwap.

2. Ecosystem Dependence: DeepBook operates solely within the Sui ecosystem, which ranks 8th in DeFi asset value, potentially limiting its growth compared to platforms on more prominent blockchains.

Conclusion

DeepBook Protocol offers a high-performance, low-latency trading platform with a decentralized CLOB model, providing advantages for traders and market makers. While it has achieved significant growth and development milestones, addressing liquidity and ecosystem dependence challenges will be crucial for its sustained success in the competitive DeFi landscape.