IMF Data Reveals Historic Decline In US Dollar Reserves
At the beginning of this year, under high geoeconomic tension, dedollarization stands out as a strong signal of a global monetary shift. Long relegated to the sidelines of economic debate, this dynamic is intensifying as trust in the stability of the United States erodes. The dollar’s share in global reserves is slowly but surely declining, an evolution monitored by markets and feared by strategists. Behind this retreat, it is the international monetary order that could enter a phase of recomposition.
The status of the US dollar as a dominant reserve currency shows tangible signs of erosion, supported by recent data published by the IMF.
According to these figures, the dollar’s share in global foreign exchange reserves fell to 57.8 % at the end of 2024, a level that had not been reached since 1994.
Financial analyst Wolf Richter summarizes the situation as follows :
The reserve currency status derives from the fact that other central banks, and not the Fed, have bought trillions of dollars’ worth of dollar-denominated assets, such as Treasury securities, state bonds, corporate bonds, and even stocks.
However, this massive support is beginning to crumble. According to Richter, foreign central banks’ holdings in dollar-denominated securities declined from $6.69 trillion at the end of 2023 to $6.63 trillion at the end of 2024, a net decrease of $59 billion in one year.
This trend cannot be explained by a temporary accident, but by a structural willingness of central banks around the world to diversify.
The decline of the dollar is part of a long-term dynamic, accelerated by trade tensions exacerbated by President Donald Trump. In addition to this political context, there is a growing loss of confidence in the sustainability of American debt. Several concrete elements support this change of course:
These converging indicators suggest that the dollar, while still dominant, is gradually losing the monopoly of international institutional trust.
If the first alert comes from a decline in dollar asset holdings by central banks, the rest of the picture is equally revealing. Several so-called non-traditional currencies are gaining ground in global reserve portfolios.
According to the latest IMF data, the main currencies that are nibbling away at the dollar’s share are the Japanese yen (5.8 %), British pound (4.7 %), Canadian dollar (2.8 %), Chinese yuan (2.2 %), Australian dollar (2.1 %), and Swiss franc (0.2 %).
The combined share of all other currencies reaches 4.6 %. A movement that Richter calls a “progressive monetary fragmentation,” initiated well before the current situation but seems to be accelerating now. These assets, previously considered secondary, are increasingly appearing as serious alternatives to mitigate exposure to the dollar.
Even more concerning for some observers, the threat may not come solely from traditional state currencies. Larry Fink, CEO of BlackRock, has expressed a weighty warning: “if the United States fails to control its debt and deficits continue to grow, America risks losing its leadership position in favor of cryptos like bitcoin.”
In this statement, Fink does not predict an immediate revolution, but signals a potential long-term shift in the global monetary hierarchy. If players of this caliber begin to consider bitcoin as a serious alternative, it reflects a paradigm shift in the perception of safe-haven assets in the digital age.
The implications of such a realignment are manifold. For the United States, a prolonged loss of demand for the dollar would lead to a reduced capacity to finance its deficits at low cost. For emerging economies, this represents the opportunity to emancipate from a system often deemed asymmetrical. Finally, for investors (notably in the crypto sector), this transition opens up a field of strategic reflection. Are we on the brink of a new international monetary system? Or are we simply witnessing a cyclical correction in a global cycle? The future, still unclear, deserves to be scrutinized with the utmost attention.

ShadowWolfTrading
2025/03/21 20:15
SEC’s XRP reversal marks crypto industry victory ahead of SOL futures ETF launch: Finance Redefined
Crypto investors rejoiced this week after the US Securities and Exchange Commission dismissed one of the crypto industry’s most controversial lawsuits — one that resulted in an over four-year legal battle with Ripple Labs.
In another significant regulatory development, Solana-based futures exchange-traded funds (ETFs) have debuted in the US, a move that may signal the approval of spot Solana SOLUSD
ETFs as the “next logical step” for lawmakers.
SEC’s XRP reversal a “victory for the industry”: Ripple CEO
The SEC’s dismissal of its years-long lawsuit against Ripple Labs, the developer of the XRP Ledger blockchain network, is a “victory for the industry,” Ripple CEO Brad Garlinghouse said at Blockworks’ 2025 Digital Asset Summit in New York.
On March 19, Garlinghouse revealed that the SEC would dismiss its legal action against Ripple, ending four years of litigation against the blockchain developer for an alleged $1.3-billion unregistered securities offering in 2020.
“It feels like a victory for the industry and the beginning of a new chapter,” Garlinghouse said on March 19 at the Summit, which Cointelegraph attended.
Solana futures ETF to grow institutional adoption, despite limited inflows
The crypto industry is set to debut the first SOL futures ETF, a significant development that may pave the way for the first spot SOL ETF as the “next logical step” for crypto-based trading products, according to industry watchers.
Volatility Shares is launching two SOL futures ETFs, the Volatility Shares Solana ETF (SOLZ) and the Volatility Shares 2X Solana ETF (SOLT), on March 20.
The debut of the first SOL futures ETF may bring significant new institutional adoption for the SOL token, according to Ryan Lee, chief analyst at Bitget Research.
The analyst told Cointelegraph:
“The launch of the first Solana ETFs in the US could significantly boost Solana’s market position by increasing demand and liquidity for SOL, potentially narrowing the gap with Ethereum’s market cap.”
The Solana ETF will grow institutional adoption by “offering a regulated investment vehicle, attracting billions in capital and reinforcing Solana’s competitiveness against Ethereum,” said Lee, adding that “Ethereum’s entrenched ecosystem remains a formidable barrier.”
Pump.fun launches own DEX, drops Raydium
Pump.fun has launched its own decentralized exchange (DEX) called PumpSwap, potentially displacing Raydium as the primary trading venue for Solana-based memecoins.
Starting on March 20, memecoins that successfully bootstrap liquidity, or “bond,” on Pump.fun will migrate directly to PumpSwap, Pump.fun said in an X post.
Previously, bonded Pump.fun tokens migrated to Raydium, which emerged as Solana’s most popular DEX, largely thanks to memecoin trading activity.
According to Pump.fun, PumpSwap “functions similarly to Raydium V4 and Uniswap V2” and is designed “to create the most frictionless environment for trading coins.”
“Migrations were a major point of friction - they slow a coin’s momentum and introduce needless complexity for new users,” Pump.fun said.
“Now, migrations happen instantly and for free.”
Bybit: 89% of stolen $1.4B crypto still traceable post-hack
The lion’s share of the hacked Bybit funds is still traceable after the historic cybertheft, with blockchain investigators continuing their efforts to freeze and recover the funds.
The crypto industry was rocked by the largest hack in history on Feb. 21 when Bybit lost over $1.4 billion in liquid-staked Ether (stETH), Mantle Staked ETH (mETH) and other digital assets.
Blockchain security firms, including Arkham Intelligence, have identified North Korea’s Lazarus Group as the likely culprit behind the Bybit exploit as the attackers continue swapping the funds in an effort to make them untraceable.
Despite the Lazarus Group’s efforts, over 88% of the stolen $1.4 billion remains traceable, according to Ben Zhou, co-founder and CEO of crypto exchange Bybit.
The CEO wrote in a March 20 X post:
“Total hacked funds of USD 1.4bn around 500k ETH. 88.87% remain traceable, 7.59% have gone dark, 3.54% have been frozen.”
“86.29% (440,091 ETH, ~$1.23B) have been converted into 12,836 BTC across 9,117 wallets (Average 1.41 BTC each),” said the CEO, adding that the funds were mainly funneled through Bitcoin (BTC) mixers, including Wasbi, CryptoMixer, Railgun and Tornado Cash.
The CEO’s update comes nearly a month after the exchange was hacked. It took the Lazarus Group 10 days to move 100% of the stolen funds through the decentralized crosschain protocol THORChain, Cointelegraph reported on March 4.
Libra, Melania creator’s “Wolf of Wall Street” memecoin crashes 99%
The creator of the Libra token has launched another memecoin with some of the same concerning onchain patterns that pointed to significant insider trading activity ahead of the coin’s 99% collapse.
Hayden Davis, co-creator of the Official Melania Meme (MELANIA) and Libra tokens, has launched a new Solana-based memecoin with an over 80% insider supply.
Davis launched the Wolf (WOLF) memecoin on March 8, banking on rumors of Jordan Belfort, known as the Wolf of Wall Street, launching his own token.
The token reached a peak $42 million market cap. However, 82% of WOLF’s supply was bundled under the same entity, according to a March 15 X post by Bubblemaps, which wrote:
“The bubble map revealed something strange — $WOLF had the same pattern as $HOOD, a token launched by Hayden Davis. Was he behind this one too?”
The blockchain analytics platform revealed transfers across 17 different addresses, stemming back to the address “OxcEAe,” owned by Davis.
“He funded these wallets months before $LIBRA and $WOLF launched, moving money through 17 addresses and 2 chains,” Bubblemaps added.
The Wolf memecoin lost over 99% of its value within two days, from the peak $42.9 million market capitalization on March 8 to just $570,000 by March 16, Dexscreener data shows.
DeFi market overview
According to Cointelegraph Markets Pro and TradingView data, most of the 100 largest cryptocurrencies by market capitalization ended the week in the green.
Of the top 100, the BNB Chain-native Four (FORM) token rose over 110% as the week’s biggest gainer, followed by PancakeSwap’s CAKE (CAKE) token, up over 48% on the weekly chart.
Thanks for reading our summary of this week’s most impactful DeFi developments. Join us next Friday for more stories, insights and education regarding this dynamically advancing space.
$XRP