Cryptocurrency markets saw a sell-off as concerns over US liquidity grew after Trump’s Fed nomination. Bitcoin ETFs experienced outflows totaling $431 million. Kevin Warsh’s nomination may indicate a stabilization in market liquidity. A $2.56 billion liquidation event was recorded on Jan. 31. TRM Labs secured a $70 million investment round at a $1 billion valuation, becoming a crypto unicorn. The funding round was led by Blockchain Capital, with participation from other major investors. TRM Labs aims to combat cybercrime with AI solutions. Avalanche witnessed increasing adoption in tokenization of real-world assets, reaching over $1.3 billion in locked value. BlackRock’s BUIDL fund contributed to the rise. Traditional finance firms are more open to tokenization, with the SEC showing more acceptance of crypto products. ParaFi Capital invested $35 million in Solana-based Jupiter, marking the first outside capital for the trading protocol. Jupiter has processed over $1 trillion in trading volume and expanded its product offerings. Aave Labs is shutting down its umbrella brand Avara to focus on DeFi. Aave is simplifying its branding and product offerings to focus on decentralized finance. Step Finance suffered a security breach, with $27 million in SOL drained from treasury wallets. The team has not confirmed the total losses or how the breach occurred. Most of the top 100 cryptocurrencies ended the week in the red, with Zcash and Story tokens seeing the biggest declines. Stay tuned for more DeFi updates next Friday.

Read more at Cointelegraph: Bitcoin Dips to $60k, TRM Labs Reaches Crypto Unicorn Status