Gate Research: Pullback Driven by Deleveraging | Ethereum and Solana Diverge

• Market Commentary: On January 19, after a period of high-level consolidation, the crypto market saw a broad deleveraging-driven pullback. BTC and ETH weakened in tandem, losses in altcoins widened, and risk appetite contracted rapidly. The Fear & Greed Index fell from 49 to 44, with sentiment shifting from neutral toward fear. Meanwhile, spot gold continued to strengthen, reflecting rising safe-haven demand amid increasing uncertainty. Overall, the pullback appears to be driven primarily by forced liquidation and rapid position unwinding, with the market likely entering a near-term consolidation and recovery phase.
• Trending Tokens: DUSK (+81%) rallied sharply on its mainnet launch and expectations around RWA-related partnerships, with concentrated capital inflows amplifying gains alongside fundamental catalysts. NAM (+103%) experienced violent swings driven by technical breakouts in a low-liquidity environment, with upside largely fueled by speculative flows. FRAX (+29%) drew attention on the back of its rebranding and ecosystem expansion, as capital remained selectively allocated to projects with sustained narratives and tangible product progress.
• Alpha Insights: Ethereum’s staking entry queue climbed to its highest level since August 2023 while the exit queue fell to zero, indicating that long-term locking demand has strengthened despite price pressure, helping to buffer medium-term supply. At the same time, a renewed debate between Ethereum and Solana over whether protocols should move toward “ossification” or continue evolving highlighted differing trade-offs between robustness and adaptability. In addition, as Vibe Coding gains traction, supply-chain–style security risks stemming from IDE auto-execution mechanisms have become a growing focus among developers.

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Disclaimer

Investing in cryptocurrency markets involves high risk. Users are advised to conduct their own research and fully understand the nature of the assets and products before making any investment decisions. Gate is not responsible for any losses or damages arising from such decisions.

Gate Team
January 19, 2026

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