CoinPhoton

Crypto markets are entering a more regulated era as governments expand coordinated data-sharing initiatives, signaling stronger tax oversight and closer integration with mainstream financial systems. A report by the Financial Times on Jan. 1 highlights that 48 jurisdictions, including Vietnam, have committed to their first exchanges of information under the OECD’s Crypto-Asset Reporting Framework (CARF), aiming for automatic crypto tax data sharing by 2027.

In the UK, new rules already require major crypto exchanges to report full transaction details—purchase prices, disposal values, realized profits, and tax residency—to HMRC. Additional jurisdictions, including Australia, Singapore, and the UAE, plan to implement CARF by 2028, with the US starting in 2029.

Experts note this marks a major shift in crypto taxation: authorities can now better track undeclared gains, and crypto disposals may trigger capital gains or income taxes, aligning digital assets with existing financial reporting standards globally.

In 2025, crypto’s most significant gains were structural rather than price-driven, according to Pantera Capital. Regulatory clarity, institutional adoption, and infrastructure improvements quietly reduced systemic risks and reshaped the industry’s long-term trajectory. Key developments included pro-crypto policy shifts in the U.S., the passage of stablecoin legislation, and the rise of onshore crypto hubs. Institutional validation accelerated adoption, with Coinbase joining the S&P 500, Vanguard allowing crypto ETFs, and multiple blockchain companies going public. Onchain metrics also grew, including a 235% increase in real-world assets and $100 billion added to stablecoin supply. Looking ahead, Pantera emphasizes sustainable growth, continued expansion of Bitcoin-Fi, and the evolving potential of tokenization, real-world assets, and fintech platforms, while remaining cautious on NFTs and restaking. Overall, 2025 laid the foundation for long-term, durable growth in crypto, setting the stage for a potential breakout in 2026.

Bitcoin miner Bitfarms Ltd. has agreed to sell its remaining Latin American operations, completing a strategic exit from the region as it refocuses on North American power assets and data-center infrastructure for AI and high-performance computing.

The company will sell its 70-megawatt Paso Pe site in Paraguay to Sympatheia Power Fund for up to $30 million. Bitfarms will receive $9 million in cash at closing, with up to $21 million tied to post-closing milestones over the next 10 months. Management said the deal effectively brings forward two to three years of expected free cash flow.

CEO Ben Gagnon said proceeds will be redeployed into AI- and HPC-focused energy infrastructure in North America starting in 2026. Following the sale, Bitfarms’ energy portfolio is fully concentrated in North America, with 341 MW energized, 430 MW under active development in the U.S., and a multi-year pipeline of about 2.1 GW.

The move underscores Bitfarms’ broader shift away from geographically dispersed bitcoin mining toward U.S.-based power assets capable of supporting energy-dense AI workloads.

Ethereum ended the year with a clear surge in on-chain activity, as daily transactions reached a new all-time high. The seven-day moving average rose to 1.87 million transactions, breaking the previous record set during the peak of the 2021 NFT and DeFi boom and also surpassing the high seen in 2025. This increase was accompanied by a strong rise in network participation, with active addresses climbing to their highest level in more than three years and new address creation posting its largest single-day jump since early 2018.
The renewed momentum is largely attributed to a series of major network upgrades implemented in 2025, which significantly lowered transaction fees, improved scalability, and enhanced overall efficiency. These technical improvements, along with growing institutional involvement through ETFs and real-world asset tokenization, have reinforced Ethereum’s position as the dominant platform for stablecoins, yield products, staking, and EVM-compatible applications. With additional upgrades scheduled for 2026, Ethereum’s underlying fundamentals appear to be strengthening, even as its market price has yet to fully reflect this renewed activity.

Aave founder Stani Kulechov has moved to defuse escalating governance tensions within the Aave ecosystem by proposing that Aave Labs share revenue generated outside the core protocol with AAVE token holders. The statement follows growing friction between Aave Labs and the Aave DAO over profit-sharing mechanisms, control of frontend fees, and broader questions around ownership and governance of the DeFi lending protocol.

The dispute was triggered after a token holder challenged Aave Labs’ decision to redirect frontend fees away from the DAO, raising concerns about alignment between the development company and the community governing the protocol. While Aave Labs originally built the protocol, ongoing maintenance and governance are now largely handled by the DAO.

Kulechov argued that resolving these issues requires a shared long-term vision focused on expanding Aave beyond purely crypto-native use cases. He pointed to future growth areas such as real-world assets, consumer-facing products, and institutional lending models. According to Kulechov, the preferred path forward is to allow independent, opinionated teams to build freely on top of the permissionless Aave Protocol, while the protocol itself benefits indirectly through increased usage and revenue.

Beyond revenue sharing, Kulechov also addressed branding and intellectual property concerns, signaling a willingness to engage with the DAO on how these issues should be resolved. He said a formal proposal outlining concrete revenue-sharing structures would be presented to the community in the near future.

At the end of 2025, a sharp spike in U.S. funding markets sent an important liquidity signal. Banks borrowed a record $74.6 billion from the Federal Reserve’s Standing Repo Facility on December 31, indicating year-end stress and tighter cash conditions. At the same time, money flowed heavily into the Fed’s reverse repo facility, a classic defensive move when balance sheets tighten.

What made this episode different was the Fed’s response. Even before the year-end stress peaked, the New York Fed had begun purchasing Treasury bills to maintain ample reserves, and earlier in December it halted the runoff of its balance sheet, effectively ending quantitative tightening. While framed as routine maintenance, these actions signaled a shift toward supporting system liquidity.

Bitcoin’s sensitivity to these signals has grown. The rise of spot ETFs has tied BTC more closely to traditional market plumbing, where liquidity conditions now matter as much as narratives. When liquidity tightens, crypto feels heavier; when it improves, market depth returns and price moves require less force.

Looking into early 2026, the key question is whether the repo spike was mainly seasonal or a sign of deeper reserve scarcity. If Fed bill purchases remain elevated, funding stress eases, and financial conditions stay loose, liquidity could gradually improve. That would likely show up first as smaller drawdowns, stronger order-book support, and more durable rallies rather than an immediate price surge.

The article argues that Bitcoin may be entering a new phase where liquidity, not the traditional four-year halving cycle, becomes the dominant driver. ETF flows and stablecoin supply growth will be critical indicators to watch. If liquidity support turns into sustained demand, Bitcoin could advance without relying on a fresh narrative—powered primarily by the return of market “oxygen.”

Solana Whale Moves $53 Million in SOL as Price Rallies Over 5%

Solana has started the year on a bullish note, climbing more than 5% over the past 24 hours. However, amid the price surge, a Solana whale appears to be taking profit by moving a large amount of SOL to an exchange.

According to on-chain tracking firm Whale Alert, a single transaction involving 407,001 SOL—worth roughly $53.1 million—was sent from an unknown wallet to the crypto exchange Gate. The sizable transfer quickly caught the attention of the crypto community and sparked speculation about a potential sell-off.

The move comes as the broader crypto market continues its strong rebound into the new year, with major assets reclaiming key price levels. While the exact motive behind the transfer remains unclear, some observers believe it could reflect portfolio rebalancing or profit-taking by a large trader following the prolonged correction seen in the final quarter of 2025.

Despite the whale activity, Solana’s price has remained firmly in positive territory. At the time of writing, SOL was trading around $132, up about 5.28% over the last 24 hours. Given the ongoing price strength, some market participants remain optimistic that the transfer represents short-term profit-taking rather than a bearish shift in sentiment.

Cardano Activity Surges 37,851% to Start 2026, Fueling Market Speculation

Cardano has kicked off 2026 with strong momentum, posting a massive 37,851% surge in activity as traders position ahead of the market’s next major move.

ADA has climbed more than 7% over the past 24 hours, outperforming most major cryptocurrencies. At the time of writing, ADA was trading around $0.368, up 7.34% on the day and 5.66% on the week. As risk appetite improved following the holiday period, Cardano—alongside Dogecoin—led gains among the top 10 cryptocurrencies by market capitalization.

The price rally has coincided with an explosive jump in derivatives activity. According to CoinGlass data, Cardano futures volume on the BitMEX exchange surged 37,851% to roughly $255.52 million, signaling aggressive repositioning by derivatives traders.

From a technical perspective, ADA reversed a four-day decline that lasted from Dec. 28 to Dec. 31, rebounding from the $0.33 area and reaching an intraday high near $0.37. Despite the recovery, ADA has remained range-bound between $0.33 and $0.40 since mid-December.

A clear break and close above the $0.384 level would mark the first sign of strength, potentially opening the door to a move toward the 50-day moving average near $0.407 and, if momentum persists, a push toward the $0.50 target. On the downside, a drop below the $0.33 support could see ADA slide to $0.30 and possibly to the October low around $0.27.

World’s Highest IQ Claimant YoungHoon Kim Launches XRPL Token to Support XRP

XRP continues to draw support from YoungHoon Kim, who claims to hold the world’s highest IQ, after he announced plans to launch a token built on the XRP Ledger (XRPL) to boost the XRP ecosystem.

Kim is frequently described in online media as the “world’s highest IQ holder,” though his IQ claims and academic credentials have not been widely or independently verified. He is a controversial figure on social media, known for making bold statements about technology, artificial intelligence, and crypto markets—particularly XRP—which have often sparked debate within the community.

According to Kim, the project follows a two-chain, two-role structure combining Solana and the XRP Ledger. As part of the initiative, he has already launched $LAMB, a Solana-native crypto asset aimed primarily at driving community growth, social engagement, and meme culture.

Kim said the XRPL-based token will be launched after the $LAMB presale, though its name has not yet been disclosed. He claims the token will deliver functional utility to the XRP Ledger and the broader XRP ecosystem, serving as an operational engine for decentralized governance, DAO participation, and on-chain engagement.

Despite Kim’s stated intention to support XRP, the initiative has been met with mixed—and largely skeptical—reactions from the XRP community. Critics have questioned the credibility of the project, Kim’s IQ claims, and the risks associated with the presale structure of $LAMB and the proposed XRPL token.

Some criticism has focused on Kim’s repeated XRP price predictions, many of which have failed to materialize. His recent $3 XRP forecast did not play out, reinforcing concerns among community members that the project may be more about attracting attention than delivering long-term value, and further fueling skepticism about Kim’s true intentions.

Tom Lee Proposes Boosting BitMine Share Count to 50 Billion, Stock Jumps 14%

Tom Lee, chairman of BitMine Immersion Technologies (BMNR), has asked shareholders to approve a proposal to increase the company’s authorized shares from 500 million to 50 billion. He said the “dramatic” increase would support capital market activities, potential acquisitions, and future stock splits while helping keep the share price at a reasonable level.

Lee explained that BitMine’s stock tends to track the price of Ethereum. If ETH rises sharply, BMNR shares could become too expensive for many investors. He estimated that if ETH reaches $22,000, BitMine’s stock could climb to around $500, and if ETH trades at $62,500, the share price could reach roughly $1,500. Most investors, he said, prefer shares priced closer to $25.

Markets responded positively to the proposal, with BitMine shares jumping 14% on Friday to about $30.93.

BitMine is the world’s largest Ethereum digital asset treasury company, holding roughly 3.41% of ETH’s circulating supply. Last week, the Nasdaq-listed firm disclosed it had added another 44,463 ETH, bringing its total holdings to approximately 4,110,525 ether. Shareholders have until Jan. 14 to vote on the proposal.

A silent attack is spreading across EVM networks, draining funds from hundreds of unsuspecting crypto users, according to prominent on-chain investigator ZachXBT. The exploiter behind the activity remains unidentified.

ZachXBT said the attack targets a large number of wallets for relatively small amounts, with most victims losing less than $2,000. While individual losses are limited, cumulative damage is steadily rising. As of the latest update, around $107,000 has been drained, and the total is expected to increase as the attack is still ongoing.

The root cause of the wallet drains has not yet been identified, and no confirmed exploit vector has been established. Although the attacker’s identity is unknown, ZachXBT flagged a wallet address believed to be linked to the activity: 0xAc2e5153170278e24667a580baEa056ad8Bf9bFB.

Wallet drain incidents continue to affect crypto users. Just a week earlier, Trust Wallet disclosed a major security breach involving its browser extension. On December 24, a malicious version of the Trust Wallet Browser Extension (v2.68) was published to the Chrome Web Store outside the company’s standard release process.

The compromised version contained malicious code that enabled attackers to access sensitive wallet data and execute unauthorized transactions. Trust Wallet said the issue affected only users who opened and logged into version 2.68 between December 24 and December 26, with no impact on mobile app users or other extension versions.

Trust Wallet identified 2,520 affected wallet addresses, with approximately $8.5 million in assets drained and linked to 17 attacker-controlled addresses. The company also noted that the same attacker addresses were used in unrelated wallet drain incidents and has pledged to reimburse affected users.

Bitfinex Hacker Released Early, Credits President Trump’s First Step Act

Ilya Lichtenstein, the man who confessed to orchestrating the 2016 hack of crypto exchange Bitfinex, said he has been released from prison early and publicly thanked President Donald Trump’s First Step Act, signed into law in 2018.

In a post on X late Thursday, Lichtenstein said his early release was made possible by the First Step Act, a U.S. criminal justice reform law designed to reduce certain sentences, expand early release opportunities, and emphasize rehabilitation. He said he plans to return to making positive contributions in cybersecurity as soon as possible.

Lichtenstein was sentenced to five years in prison in 2024 for his role in the Bitfinex hack, facing charges including conspiracy to commit money laundering and conspiracy to defraud the United States. His wife, Heather Morgan—also known by her rapper alias “Razzlekhan”—was also sentenced, though prosecutors said she played a smaller role. Both pleaded guilty to money laundering conspiracies in 2023.

The case involved laundering bitcoin worth roughly $4 billion at the time of seizure, making it the largest crypto asset seizure in U.S. history. Lichtenstein has said he executed the Bitfinex hack entirely on his own and cooperated with authorities to help recover assets.

According to a White House administration official, Lichtenstein is currently on home confinement in line with Bureau of Prisons policies, with a listed release date of Feb. 9.

After returning to social media, Lichtenstein also expressed interest in artificial intelligence, saying he has been “offline for four years” and is looking for the fastest way to catch up on AI.

On the last trading days of 2025, the U.S. repo market flashed a warning. Banks borrowed a record $74.6 billion from the Fed’s Standing Repo Facility on Dec. 31, pushing overnight funding rates to 3.77% and the general collateral repo rate to 3.9%.
This year-end stress tested the Fed’s “ample reserves” theory and reminded markets that liquidity is a plumbing problem, not just a sentiment. While the spike is not an emergency like September 2019, it shows banks still rely on the Fed during predictable calendar stress points.
For crypto holders, the lesson is critical: stablecoins and on-chain funding sit atop the dollar system. When repo rates jump, it signals dollar liquidity tightening, which can ripple into crypto markets.
Looking ahead to 2026:
Scenario 1: Repo stress remains manageable; Fed backstop absorbs shocks; crypto trades as a higher-beta risk asset.
Scenario 2: Calendar-driven stress repeats; private markets lean more on the Fed; liquidity can flip faster than expected.
Scenario 3: The Fed increasingly becomes the market; policy-managed funding rates shape crypto cycles more than free-market rates.
The broader takeaway: repo plumbing matters. Crypto liquidity shadows dollar liquidity, and watching these pipes may be the clearest way to anticipate the next crypto cycle.

A record year for “wrench attacks”: How crypto holders can protect their physical security amid rising risks

Jameson Lopp recorded roughly 70 physical assaults on crypto holders in 2025, the highest in over a decade, though the true number is likely higher. Experts advise high-risk holders to split funds, limit public exposure, and plan responses to potential attacks.

While overall protocol exploits have not reached pandemic-era highs, 2025 set a record for so-called “$5 wrench attacks”—physical coercion targeting crypto assets. Many incidents go unreported or are misclassified as ordinary robberies.

Security specialists recommend practical measures: multisignature wallets, separating long-term and daily-use funds, whitelisted addresses, decoy accounts, and physical security training. “There is no perfect security, only better security, and it always comes at a cost,” says Tor Bair, CEO of Hybrid Minds Advisory.

The year 2025 was marked by repeated shocks to the cryptocurrency market, fueling the narrative that “crypto is dead.” Key events included a January flash crash triggered by the Chinese AI model DeepSeek, an October tariff-driven liquidation that erased roughly $19 billion in leveraged positions, widespread altcoin and memecoin collapses throughout the year, and a fourth-quarter slump that wiped out Bitcoin’s year-to-date gains. By mid-2025, Bitcoin had been declared “dead” over 400 times, surpassing all of 2024.

Despite these headline-grabbing price declines and media pessimism, the underlying infrastructure of the crypto market continued to advance. Stablecoin legislation was enacted, spot ETFs attracted tens of billions of dollars in inflows, and major jurisdictions published clear regulatory frameworks instead of relying on enforcement threats. Exchanges remained operational, custodians held up, and derivatives markets, while stressed, did not collapse. Usage metrics such as DeFi total value locked and cross-border stablecoin flows remained robust.

The events of 2025 highlighted a clear divide between speculation and structural progress. While speculative assets—particularly AI-linked tokens, memecoins, and high-beta altcoins—experienced violent corrections, the foundational infrastructure of crypto strengthened. Regulatory clarity, institutional-grade products, and growing adoption of stablecoins and ETFs reinforced the resilience of the market.

In conclusion, although Bitcoin and the broader crypto market repeatedly “died” on price charts throughout 2025, the year ultimately demonstrated the sector’s deepening entrenchment in the global financial system, establishing stronger foundations for future growth and mainstream adoption.

At the beginning of 2025, the crypto industry entered the year with extreme optimism. Major firms, banks, and individual commentators published bold forecasts calling for Bitcoin to reach $200,000 or higher, Ethereum to climb toward $7,000–$10,000, and the total crypto market to surge into the tens of trillions of dollars. These predictions were largely built on expectations of ETF-driven inflows, supportive U.S. regulation, and improving macro liquidity.

By the end of the year, the price narrative had clearly broken down. Bitcoin did reach a new all-time high near $126,000 in October but failed to sustain momentum and sold off sharply amid tariff-related shocks and broader macro pressure. Ethereum, Solana, and other major assets followed a similar pattern, ending the year far below the aggressive targets that dominated early-2025 commentary. Nearly all headline price calls overshot reality, sometimes by a wide margin.

However, predictions focused on market structure and policy turned out to be far more reliable. The U.S. formally established a Strategic Bitcoin Reserve, stablecoin legislation was passed through Congress, and crypto ETFs expanded beyond Bitcoin and Ethereum to include assets such as Solana and XRP. At the same time, stablecoins moved from trading infrastructure into real-world payments, supported by integrations from major financial and technology companies. DeFi activity rebounded, on-chain consumer products matured, and tokenization continued to grow, even if more slowly than the most optimistic forecasts suggested.

The contrast was striking. While price forecasts consistently failed, analysts who emphasized regulatory shifts, infrastructure development, and changes in user behavior largely got the market right. The core lesson of 2025 is that crypto cycles are better understood through structural evolution than through headline price targets. Those who tracked how the system was changing provided far more useful insight than those predicting how high prices might spike.

The December FOMC minutes reveal that while the Federal Reserve is broadly comfortable with the economic outlook and near-term rate expectations, it is increasingly concerned about a quieter but potentially destabilizing risk: tightening liquidity in short-term funding markets. Officials noted that bank reserves have fallen to what the Fed considers “ample” levels, a zone where even small shifts in demand can trigger higher overnight borrowing costs and strain market functioning. Warning signs include volatile repo rates, widening gaps between market and administered rates, and growing reliance on the Fed’s standing repo facility, with some pressures appearing to build faster than during the 2017–2019 balance-sheet runoff.
Seasonal factors, including year-end effects, January flows, and large spring tax payments into the Treasury’s account, could further drain reserves and push them below comfortable levels. To mitigate this risk, Fed officials discussed buying short-term Treasury securities to maintain sufficient reserves and improving the standing repo facility by removing usage caps and reframing it as a routine policy tool. These measures are framed as technical steps to support rate control and market stability, not a shift in monetary policy.
For crypto markets, these liquidity concerns matter. Any move by the Fed to stabilize funding markets through balance-sheet expansion or liquidity backstops may be viewed as a form of “technical easing,” potentially improving global liquidity conditions. Bitcoin, in particular, tends to react strongly to shifts in liquidity expectations, benefiting when markets anticipate easier financial conditions but facing volatility if funding stress emerges. The minutes underscore that despite its long-term narrative as a decentralized hedge, crypto remains closely tied to the dynamics of traditional financial liquidity.

a16z Crypto believes 2026 will be a pivotal year for the digital asset sector as the industry matures beyond speculation and trading-centric models. In its outlook, the firm argues that stablecoins are on track to become a foundational layer of global finance, with the potential to rival or even surpass traditional card networks by enabling faster, cheaper, and internet-native payments. This shift could accelerate long-delayed modernization in banking, as digital wallets and decentralized networks take on roles traditionally held by financial institutions.
The firm also highlights privacy as one of the most important competitive advantages in crypto’s next phase. Rather than being seen as a drawback, the ability to conduct transactions that are both verifiable and confidential is expected to attract users and enterprises seeking secure financial activity on public blockchains.
While current market conditions remain subdued, with low trading volumes and fading momentum across many assets, a16z points to improving macroeconomic signals as a potential catalyst. Easing monetary policy, lower interest rates, and renewed liquidity could favor risk assets, including crypto. Against this backdrop, the firm argues that the success of the next cycle will depend less on hype and price speculation, and more on whether crypto can deliver practical, everyday financial services at global scale.

XRP exchange balances have fallen to their lowest level since 2018, fueling speculation that tight supply could trigger a major rally. However, historical data from Binance shows this narrative is far from reliable. In previous episodes, declining exchange reserves often coincided with weak or falling prices, with major rallies only occurring much later—and after exchange balances had already recovered.

The July 2024 reserve low aligned with depressed prices, but XRP’s explosive move happened months afterward, once supply on exchanges increased again. More recent tightening in late 2025 has similarly been accompanied by a roughly 30% price drawdown rather than a breakout. Much of the current exchange scarcity reflects structural factors, such as XRP moving into spot ETFs and self-custody, not necessarily aggressive accumulation by bullish investors.

Overall, low exchange supply appears to be a necessary but insufficient condition for XRP upside. The data undermines the popular “tight supply equals moon” narrative, suggesting that a meaningful rally will still depend on a clear external catalyst rather than exchange scarcity alone.

Hyperliquid reshapes onchain perp trading in 2025

Hyperliquid emerged in 2025 not through marketing hype or token-driven incentives, but through infrastructure. The platform operates a fully onchain central limit order book on its own layer-one blockchain, enabling perpetual futures trading with execution quality and market depth comparable to centralized exchanges—without custodial risk.

Built by Hyperliquid Labs and led by former high-frequency trader Jeff Yan, the project chose to self-fund rather than raise venture capital. By 2025, Hyperliquid consistently ranked as the largest decentralized perpetuals venue by volume, at times reaching double-digit percentages of Binance’s futures activity—highlighting how far onchain trading infrastructure has advanced.

Its native token, HYPE, launched in late 2024 with a user-focused airdrop and is primarily used for governance, with protocol revenue directed toward buybacks instead of inflationary rewards. Despite intensifying competition during the 2025 “perp DEX wars,” Hyperliquid remained a core venue by liquidity and open interest, redefining expectations for institutional-scale derivatives trading onchain.