Crypto Breaking

Mining Hardware Discounts Signal Industry Struggles Amid Turbulence

Bitmain, the leading manufacturer of application-specific integrated circuits (ASICs) used in cryptocurrency mining, has initiated significant price reductions across multiple generations of its mining hardware. This move reflects the widespread financial challenges faced by the sector, driven by declining profitability and a difficult economic environment for miners.

The company is offering enticing bundle deals and discounts on its popular S19 and S21 series, which previously commanded higher prices earlier in 2025 during Bitcoin’s rally. According to reports from TheMinerMag, even flagship models like the S21 immersion-cooled ASICs are now available at discounts of about $7 per terahash-per-second, with some hardware packages being sold through auctions where miners can “name their own price.”

This trend occurs against the backdrop of a severe downturn in mining profitability. The hashprice, which estimates revenue per unit of computing power, recently plummeted to a multi-year low of approximately $35 per terahash/second per day. Industry analysts consider a margin of $40 per TH/s/day as the breakeven point for most operations, forcing many miners to consider shutting down unless market conditions improve.

Bitcoin mining hashprice over the last year. Source: Hashrate Index

This declining profitability is compounded by broader economic factors, including rising energy costs, regulatory pressures, and supply chain disruptions. The industry remains fiercely competitive, even during periods of favorable market conditions, but current market dynamics have pushed many operators to the brink, with some considering idle status or exiting the market altogether.

Mining companies are increasingly pivoting toward renewable energy sources to mitigate operational costs following the Bitcoin halving in April 2024, which cut the block subsidy in half to 3.125 BTC. While rising Bitcoin prices traditionally offset reduced rewards, 2025 proved otherwise, with Bitcoin’s value dropping from over $126,000 in October to lows near $80,000 by November.

Currently trading around 7% below its starting point for 2025 and nearly 20% beneath the January high of over $109,000, Bitcoin’s declining price further strains mining profitability, highlighting the industry’s ongoing crisis. Industry leaders forecast significant consolidation and existential challenges for miners if current trends persist, with some experts predicting the sector could face severe downturns in the coming years.

This article was originally published as Bitmain Offers Massive Hardware Discounts to Miners Amid Industry Crash on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Ethereum Set to Lead in Institutional Digital Asset Tokenization

Ethereum’s increasing integration into financial markets was highlighted this week by industry experts, emphasizing its potential to transform traditional finance through blockchain innovation. Notably, Tom Lee, co-founder of Fundstrat Global Advisors, forecasted that Ethereum’s price could surge to between $7,000 and $9,000 by early 2026, driven by Wall Street’s advancing efforts to tokenize assets and facilitate on-chain financial activities.

Lee pointed out that Ethereum’s role as a foundational infrastructure is expanding, with major financial institutions experimenting with on-chain settlement and tokenized securities. He stated, “Wall Street wants to tokenize everything,” referencing initiatives by firms like Robinhood and BlackRock. These efforts aim to improve efficiencies in traditional finance, while anchoring real-world assets on the Ethereum network. He further suggested that, as adoption increases, Ethereum could reach a valuation of $20,000, underscoring its strategic importance in the evolving digital economy.

Source: Fundstrat YouTube channel

Lee also expressed strong confidence in Bitcoin, calling it a “genuine store of value,” with a target of $200,000 in the next year. He sees the recent underperformance compared to gold as a temporary setback, and believes Bitcoin’s long-term prospects remain robust in light of ongoing institutional interest.

Leading the crypto treasury landscape, BitMine Immersion Technologies, a company specializing in Ether holdings, reports ownership of over 4 million ETH, reflecting the growing institutional accumulation of digital assets. According to CoinGecko, Ethereum’s ecosystem is increasingly dominant in tokenized real-world assets (RWA), with a market value reaching approximately $18.9 billion—up from around $5.6 billion at the start of the year. US Treasury debt comprises the largest share, valued at roughly $8.5 billion, followed by commodities at about $3.4 billion, emphasizing Ethereum’s central role in bridging traditional finance with blockchain technology.

As of late December 2025, Ethereum hosts more than $12 billion in tokenized assets, leading other blockchains like BNB Chain, Solana, and Arbitrum. It also accounts for roughly $170 billion in stablecoin issuance, cementing its position as the primary settlement layer for dollar-denominated transactions on-chain.

Institutional interest in tokenized assets persists, with the Depository Trust & Clearing Corporation (DTCC) planning to tokenize U.S. Treasury securities on the Canton Network. This move underscores growing confidence from traditional financial players in digital asset infrastructure, leveraging blockchain to streamline securities processing, which saw about $3.7 quadrillion in transactions last year.

This article was originally published as Ethereum Tokenization Gains Momentum: Tom Lee Shares Bullish Forecast on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Binance founder and former CEO Changpeng Zhao has reassured users following a security breach at Trust Wallet that resulted in losses of approximately $7 million, stating that the company will fully cover the affected funds.

Zhao, commonly known as CZ, addressed the incident in a post on X after Trust Wallet publicly acknowledged the breach. His post stated:

“So far, $7m affected by this hack. Trust Wallet will cover. User funds are SAFU. Appreciate your understanding for any inconveniences caused. The team is still investigating how hackers were able to submit a new version.”

Trust Wallet Hack Linked to Extension Vulnerability

The Trust Wallet hack occurred on December 25 and led to losses across multiple cryptocurrencies, including Bitcoin, Ethereum, and BNB. The incident followed the discovery of a vulnerability on December 24 in Trust Wallet’s Browser Extension version 2.68.

We’ve identified a security incident affecting Trust Wallet Browser Extension version 2.68 only. Users with Browser Extension 2.68 should disable and upgrade to 2.69.

Please refer to the official Chrome Webstore link here: https://t.co/V3vMq31TKb

Please note: Mobile-only users…

— Trust Wallet (@TrustWallet) December 25, 2025

In a subsequent update, the Trust Wallet team confirmed that the breach was limited to the Browser Extension version 2.68. The company urged affected users to immediately upgrade to version 2.69, stating that mobile-only users and users of other browser extension versions were not impacted.

Part of a Broader Trend of Crypto Security Breaches

The Trust Wallet case is one more event to be included in the list of the high-profile security breaches in the cryptocurrency sector.

The Chainalysis report of the recent estimates shows the total crypto hack of 2025 to be the amount of 3.14 billion. The biggest individual event was the Bybit exchange hack that stood at a loss of 1.5billion, and that was 44 percent of all the money stolen this year.

The report also associates the North Korean hacking teams with some $2 billion dollars of crypto losses due to security breaches in 2025. Others that have occurred recently include the Upbit cyberattack that resulted in the loss of approximately 1.77 million dollars.

Although the losses incurred in this year are slightly less than the losses incurred last year because of the fact that this has been recorded at 3.14 billion as compared to the 3.38 billion recorded last year, industry leaders indicate that the numbers are just a pointer of the weaknesses that still exist. When discussing the Trust Wallet hack, the founder of OKX, Star Xu, said, It is unbelievable and a lesson to the whole industry that security is never complete.

Research into the Trust Wallet breach continues as the event reminds people that software security and user protection remain in question in the fast-changing crypto-world.

This article was originally published as CZ Says Trust Wallet Will Cover $7M Hack Losses on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Crypto Markets Experience Slight Recovery Amidst Ongoing Developments

After a week of volatility, cryptocurrency markets showed signs of recovery, driven by a slowdown in investor activity during the holiday season. Bitcoin experienced a dip to $86,561 but rebounded to above $88,600 by week’s end. Despite this bounce, institutional demand remains subdued, with spot Bitcoin ETFs seeing continued outflows.

The broader crypto landscape was marked by notable governance debates within the DeFi sector, exemplified by the recent rejection of a proposal to transfer control of Aave’s brand assets to a decentralized autonomous organization (DAO). The community votes resulted in over 55% opposition, emphasizing the ongoing tension around decentralization strategies in major protocols.

BTC/USD, year-to-date chart. Source: Cointelegraph/TradingView

Aave Governance Vote Rejects Brand Asset Proposal

The recent governance vote on Aave token, a leading decentralized finance platform, culminated in a rejection of a proposal that aimed to place control of its brand assets under DAO ownership. The snapshot poll closed with 55.29% voting against the move, signaling community reservations about initiating a significant shift in control. Supporters argued that such a move would reinforce decentralization, but the majority preferred maintaining the current structure.

This episode underscores the complexities of governance in DeFi protocols, highlighting how timing, community participation, and internal dynamics influence critical decisions. The rejection reflects the cautious stance of token holders amid ongoing debates about protocol evolution and decentralization.

Results of the Aave governance vote. Source: Snapshot

Hyperliquid’s HYPE Token Faces Growth Hype and Competition

Decentralized perpetual exchange Hyperliquid is making waves in 2025, with Cantor Fitzgerald projecting its HYPE token to reach $200 by 2035. The anticipated growth is driven by the implementation of Hyperliquid Improvement Proposal 3 (HIP-3), which is expected to bolster liquidity and market participation.

Perpetual swaps, which track underlying assets without expiry, have seen increasing adoption, with their market share rising from 2.1% at the start of 2023 to an all-time high of 11.7% in November 2025, according to CoinGecko data. This shift indicates growing interest in decentralized derivatives as rivals deploy lucrative rewards to attract investors.

DEX to CEX perps volume ratio. Source: CoinGecko

Security Measures Proposed to Combat Address Poisoning

Binance co-founder Changpeng Zhao proposed enhanced security protocols to prevent address poisoning scams, notably including real-time wallet warnings and blacklisting suspicious accounts. Address poisoning involves scammers tricking victims into sending crypto to illicit wallets through small, manipulative transactions, often resulting in significant financial losses.

Recently, a scam resulted in a $50 million USDT loss, emphasizing the need for better security measures. Zhao suggested that wallets should automatically flag or block transactions to known blacklisted addresses, and spam transactions with negligible value should be filtered out to reduce scam surfaces.

$50M address poisoning transaction, wallet 0xcB8. Source: Etherscan.io

Ethena’s USDe Loses $8.3 Billion Amid Market Deleveraging

Ethena’s synthetic dollar, USDe, has seen significant outflows since a major liquidation event in October, losing approximately $8.3 billion in market value amid declining confidence in leveraged synthetic assets. The crash, which eroded nearly 30% of the market cap, marked a turning point as investors withdrew from collateral structures reliant on synthetic and hedging mechanisms rather than traditional reserves.

From nearly $14.7 billion on October 9, USDe’s market cap plummeted to around $6.4 billion by December, reflecting broader deleveraging trends in the crypto sector and waning investor trust in synthetic assets during turbulent market conditions.

Uniswap’s Protocol Fee Switch Nears Activation

Uniswap’s much-anticipated protocol fee switch, known as “UNIfication,” is set to go live following a successful community vote exceeding 40 million tokens. Scheduled after a two-day delay, this upgrade will activate fee switches on Uniswap v2 and v3, leading to the burning of 100 million UNI tokens from the treasury. Additionally, a new liquidity provision incentive system will be introduced to improve returns for providers.

This upgrade aims to stabilize the token’s supply and demand, fostering greater investor confidence. The announcement sparked a nearly 40% rally in UNI’s price from around $7 to nearly $9.70 in early November. Uniswap, the largest decentralized exchange, has processed over $4 trillion in trading volume since its inception in 2018, ranking it as the 39th largest crypto by market cap at $3.8 billion.

Continued integration of protocol improvements highlights the evolving sophistication of decentralized finance, with broader implications for market dynamics and token economics.

This article was originally published as Bitcoin Surges to $88K Amid Aave Governance Proposal Turmoil on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Bitcoin’s Performance Diverges from Traditional Markets, Raising Questions About Future Trends

As Bitcoin continues to underperform compared to gold and major equity indices, investors are reassessing whether this cycle is unfolding differently from previous patterns. Analyst Benjamin Cowen provides insights into why Bitcoin’s recent behavior may signal a prolonged phase of stagnation, influenced more by macroeconomic factors than by market hype.

Key Takeaways

Bitcoin remains lagging behind gold and stocks, which are responding positively to expectations of future monetary easing.

Bitcoin’s sensitivity to actual liquidity conditions, rather than optimism alone, explains its sluggish momentum.

Market sentiment around Bitcoin is notably subdued compared to previous cycles marked by retail enthusiasm.

Broader macroeconomic headwinds, including labor market trends and restrictive financial conditions, could weigh on Bitcoin into 2026.

Tickers mentioned:
Crypto → BTC, ETH

Sentiment: Neutral

Price impact: Neutral. Bitcoin’s performance appears closely tied to macroeconomic factors and liquidity conditions, which currently limit upward movement.

Market context: The ongoing macroeconomic challenges are influencing crypto trends amidst broader market fluctuations.

Analysis of Bitcoin’s Current Cycle

Despite significant attention, Bitcoin has struggled to maintain upward momentum, unlike previous cycles where retail speculation and enthusiasm drove prices higher. Cowen emphasizes that this divergence is partly because Bitcoin is more responsive to actual liquidity conditions rather than market sentiment or hype. When liquidity tightens or macroeconomic indicators shift, Bitcoin often reacts accordingly, which explains its recent underperformance compared to gold and stocks, both of which have surged amid expectations of easing monetary policy.

Cowen notes that the current climate lacks the macroeconomic catalysts typically needed for Bitcoin to outperform. This contrasts with past bullish phases where favorable macro conditions propelled prices. He also highlights the importance of macro headwinds such as labor market trends and restrictive financial conditions, suggesting these factors may suppress Bitcoin’s growth into 2026, despite occasional short-term rallies.

While some analysts dismiss the relevance of Bitcoin’s traditional four-year cycle, Cowen presents data indicating that market cycles, broader economic data, and macro trends still influence cryptocurrency movements. His outlook advocates patience and a focus on macroeconomic realities instead of relying solely on price predictions. He also mentions that expectations of rapid altcoin rotations may be overly optimistic given the current macro environment.

To gain deeper insights, viewers can watch Cowen’s full interview on the Cointelegraph YouTube channel, where he discusses the macro context, market cycles, and strategic considerations for investors navigating these uncertain times.

This article was originally published as Benjamin Cowen Warns: Bitcoin’s 2023 Setup Mirroring 2019 | What’s Next? on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

As AI-generated content proliferates, the challenge of verifying authenticity intensifies in 2026

The rapid expansion of artificial intelligence has dramatically transformed online content creation, raising pressing questions about authenticity and trust. With AI-generated images, videos, and audio increasingly indistinguishable from human-made media, efforts to discern real from synthetic are becoming more complex. As we approach 2026, industry experts emphasize the urgent need for improved content verification methods to maintain trust in digital media.

Key Takeaways

AI content surpasses human creation, driven by innovations like ChatGPT.

Public fatigue and skepticism toward AI-generated media grow amid concerns over authenticity.

Blockchain-based solutions are emerging to certify content provenance from creation to distribution.

Online platforms face increasing pressure to implement tools that help users identify genuine content.

Tickers mentioned: none

Sentiment: Neutral

Price impact: Neutral. The article discusses technological and societal challenges rather than financial markets.

Trading idea (Not Financial Advice): Hold — focus on understanding evolving content verification technologies and industry responses.

Market context: The surge of AI-generated content coincides with broader digital trust and security concerns impacting the crypto and tech industries.

Artificial intelligence has unlocked unprecedented creative possibilities across digital platforms. However, this technological leap also introduces significant challenges, such as the difficulty in distinguishing authentic content from AI-generated fakes. Recent studies indicate that by late 2024, AI-produced content now outpaces human creations, a trend driven largely by innovations like ChatGPT launched in 2022. As of April 2025, over 74% of web pages analyzed contained some form of AI-generated material, emphasizing the scale of the phenomenon.

Amid this surge, users are beginning to experience AI content fatigue—a sense of exhaustion and skepticism over the flood of synthetic media. A survey by Pew Research Center revealed that 34% of adults worldwide are more concerned than excited about AI, with fears centered around misinformation, deepfakes, and the erosion of trust. Industry leaders compare the current landscape to processed foods, noting how initial abundance eventually leads consumers to seek authenticity and origin, favoring local and transparent sources.

Experts suggest that labeling content as “human-crafted” may become a trust marker, similar to organic labels in food, helping consumers identify credible media. Simultaneously, detecting AI-created content remains complex. A Pew study highlighted that while most Americans see the importance of recognizing AI media, fewer feel confident in their ability to do so—only 47% express confidence.

Blockchain technology offers promising solutions for certifying authenticity from the moment of creation. Companies like Swear leverage blockchain-based fingerprinting to embed proof of origin directly into digital media. This approach creates a verifiable “digital DNA,” making modification detectable and ensuring trust in content from inception. Such technologies are currently utilized in visual and audio verification, with applications extending to enterprise security and surveillance.

Looking ahead, the imperative for platforms and regulators is clear: they must implement tools that empower users to filter and verify content efficiently. As the volume of AI-generated media continues to escalate, the industry must prioritize establishing standards and technologies that safeguard authenticity—preventing manipulation from becoming a societal norm and ensuring trust in the digital age.

This article was originally published as Can Blockchain Verify Authenticity Online Over AI? on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Ethereum Approaches Major Upgrades in 2026: Scaling with Zero-Knowledge Proofs and Improved Interoperability

2026 is poised to be a transformative year for Ethereum, marked by significant advancements in scalability, interoperability, and network infrastructure. The upcoming deployment of zero-knowledge (ZK) proof validation for validators promises to revolutionize transaction processing, bringing Ethereum closer to achieving 10,000 transactions per second (TPS) while maintaining decentralization and security.

Key Takeaways

Validators will start processing ZK proofs instead of re-executing transactions, vastly improving efficiency.

The introduction of ZK proofs reduces hardware requirements, enabling more participants to validate securely.

The Ethereum Interoperability Layer (EIL) is set to unify Layer 2 ecosystems, facilitating seamless cross-chain communication.

Enhancements to ZK-proof technology and infrastructure upgrades aim to extend Ethereum’s scalability and cross-chain functionality.

Tickers mentioned: None

Sentiment: Optimistic

Price impact: Neutral. The technical upgrades are expected to bolster Ethereum’s network capacity but are unlikely to cause immediate price shifts.

Trading idea (Not Financial Advice): Hold. The network’s ongoing upgrades suggest long-term growth potential without immediate trading signals.

Market context: The developments reflect broader trends toward high-throughput and interoperability solutions within the blockchain space, reinforcing Ethereum’s position as a leading smart contract platform.

Ethereum’s transition to ZK Proofs in 2026

Ethereum’s move to incorporate zero-knowledge proofs represents a foundational overhaul, mirroring the landmark shift during the 2022 Merge. Unlike current validators that reexecute each transaction, validators will generate a cryptographic proof confirming the correctness of an entire block, which others can verify with minimal computational effort. This approach drastically reduces hardware demands, potentially allowing validation on smartphones or smartwatches, and significantly increases transaction throughput.

Justin Drake, a researcher heavily involved in the upgrade, demonstrated that validating proofs on low-powered devices is already feasible. By generating a proof for each block, the network’s scalability could jump to thousands of TPS, with only a small subset of validators responsible for proof creation—often referred to as “provers” or “block builders.” Drake predicts that around 10% of validators are expected to adopt ZK validation mechanisms by the end of this year, enabling higher gas limits and more efficient network operation.

The process is scheduled to fully phase in by mid-2026, following software upgrades including the ePBS update, which relaxes penalties for delayed validation and encourages wider participation. Researchers aim for the widespread adoption of zkEVMs—zero-knowledge execution environments—expected to further enhance Ethereum’s scalability and security standards.

Interoperability and Cross-Chain Communication

Alongside ZK improvements, Ethereum is advancing its cross-chain capabilities through the Ethereum Interoperability Layer (EIL). This trustless messaging protocol will connect various Layer 2 solutions, enabling instant and seamless asset transfers—such as USDC—between different ecosystems without the need for intermediaries. Designed using ERC-4337 account abstraction, EIL aims to eliminate reliance on centralized solvers and reduce censorship risks, thus reinforcing true decentralization.

Furthermore, innovations like ZKsync’s Atlas upgrade facilitate faster cross-chain asset movement, with ZKproofs ensuring security and finality. For instance, the UAE’s ADI institutional chain has already gone live using this technology, demonstrating practical real-time interoperability solutions between Layer 1 and Layer 2 networks that could redefine Ethereum’s ecosystem connectivity.

Overall, these advancements signal a robust, scalable, and interoperable Ethereum ecosystem approaching its next major milestone in 2026. By integrating zero-knowledge proofs and fostering seamless cross-chain interactions, Ethereum aims to solidify its dominance as the backbone of decentralized applications and DeFi infrastructure in the rapidly evolving blockchain landscape.

This article was originally published as Ethereum to Experience Explosive Scaling with ZK Rollups in 2026 on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Strategic Outlook: Potential 2026 Market Corrections Driven by AI Bubble Burst

Growing concerns indicate that global equity markets may be approaching another speculative peak, primarily driven by exuberance surrounding artificial intelligence (AI) advancements. Analysts warn that if this AI bubble deflates in 2026, the repercussions could be swift and severe for Bitcoin and the broader cryptocurrency landscape, which often moves in tandem with traditional markets during turbulence.

Key Takeaways

AI valuation excesses could trigger early volatility in crypto markets amid unwinding equity excesses.

Bitcoin might decline to the $60,000–$75,000 range, though institutional backing could temper the severity compared to previous downturns.

Market participants increasingly see AI stocks as overvalued, with widespread concerns about investment returns amid soaring infrastructure costs.

The expansion of AI infrastructure spending is fueling fears of an unsustainable bubble that could burst, impacting financial stability globally.

AI Bubble Risks and Market Fundamentals

Recent surveys highlight a dramatic shift in market sentiment, with 45% of fund managers identifying an AI bubble as the greatest tail risk—up from just 11% in September. The surge in AI infrastructure investments by giants like Meta, Amazon, Microsoft, Alphabet, and Oracle has driven global capital expenditures to new heights. In 2025, industry spending has soared, with predictions suggesting a 64% increase to over $500 billion by the end of 2026, according to Barclays UK’s Head of Behavioral Finance, Alexander Joshi.

Joshi notes that AI data centers are now among the most substantial infrastructure projects in recent history. He warns, “While not inherently bad, this dependence poses a significant risk if AI growth stalls or expectations falter, leading to a severe correction.”

Market analysts warn that the current AI boom is debt-financed, increasing systemic risk. Without sustainable profit margins—many firms generated little revenue relative to their spending—an abrupt downturn could cascade into broader economic challenges. Financial historian Carlota Perez cautions that a burst in AI and crypto sectors could precipitate a global economic downturn of “unimaginable proportions.”

Implications for Bitcoin in 2026

Looking ahead, Tether CEO Paolo Ardoino warns that a correction in the AI sector could spill over into cryptocurrency markets, especially Bitcoin. He cites Bitcoin’s high correlation with US equities, positioning 2026 as a pivotal year for its price trajectory. Ardoino predicts that Bitcoin’s decline may be less severe than during past crashes, such as the 2022 bear market, thanks to increased institutional participation. As of December, Bitcoin had fallen approximately 30% from its record high of over $106,000.

Market analysts like Nomad Bullstreet suggest Bitcoin could find support around the $71,000–$75,000 range, aligned with its production costs and technical patterns. Meanwhile, projections from Fidelity and Fundstrat point to a potential bottom near $60,000–$65,000 in 2026, reflecting the broader risk of a significant correction linked to the AI bubble burst.

While such corrections pose risks, the evolving institutional position in Bitcoin suggests it may weather the storm better than previous cycles, although heightened volatility remains a concern as macroeconomic uncertainties persist.

This article was originally published as 2026 AI Bubble Risks & How They Could Impact Bitcoin’s Future on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Bitcoin’s price stayed subdued on December 25 as renewed activity from large holders, including whale transfers to exchanges, combined with continued outflows from US spot Bitcoin ETFs, unsettled market sentiment, raised concerns about potential sell pressure, and left traders cautious despite BTC holding above key technical support levels overall market.

Bitcoin ETFs See Continued Outflows, Weak Demand

A long-inactive Bitcoin whale and asset manager BlackRock moved large sums of BTC to centralized exchanges on the day according to blockchain analytics firm Onchain Lens.

BlackRock deposited 2,292 $BTC worth $199.8M and 9,976 $ETH worth $29.23M into #Coinbase.https://t.co/pyOLoPpL7H pic.twitter.com/Gxvmj9UdGz

— Onchain Lens (@OnchainLens) December 24, 2025

BlackRock had invested 2,292 BTC that had a value of about 199.8 million dollars in Coinbase. In another transaction, a whale wallet that was dormant in eight years transferred 400 BTC, worth about 34.92 million, to the OKX exchange.

Traders keep a close eye on such transfers, which massive deposits to exchanges would typically suggest to them that there is sell-side pressure.

No direct spot selling was established, but the flows were sufficiently sufficing to place market participants on their toes.

The warning sound was supported by the ongoing weak institutional flows. According to the data provided by SoSoValue, U.S. spot Bitcoin ETFs experienced their fifth day in a row of net outflows. The continual withdrawals were an indication that the institutional demand was still weak despite the fact that Bitcoin was trading above key technical support levels.

Source: SoSoValue

Bitcoin Leverage Declines as Traders Reduce Risk

Meanwhile, there was an overall fall in leverage in the derivatives market. BTC was trading around $87,700 at press time, falling about 0.35% on the day. According to CoinGlass, open interest was dropped at 0.99% to $57.42 billion, which means that traders were not taking on risk as they were not aggressively positioning themselves to expect a price breakout.

Source: Coinglass

Positioning information suggested areas of bullish conviction in spite of the leverage pullback. The Liquidation Map of CoinGlass indicated that its largest concentration of leverage was on the downside and on the upside to $85,966 and 88,636 respectively.

The long leveraged positions (of a total of around 646.17 million) were concentrated nearer to the bottom whereas the short leveraged positions (of the total of around 422.42 million) were concentrated above the Bitcoin price, indicating that the traders were generally confident that BTC would be above the zone of support of 85,966.

In a larger technical context, BTC is stuck in a range of consolidation. The weekly chart analysis indicates that BTC has been trading at an average bottom of about $86,000 to a top of about $93,500 since mid-November. Such long periods of steady consolidation are, in the past, usually followed by sharp swings in one way or the other.

Source: Tradingview

Since Bitcoin has been fluctuating around the lower part of this range, there has been an increased fear of a possible breakdown. Technical analysts believe that a daily close below the support of the $86,000 may open up to further decline.

On the contrary, the bearish view would be nullified in case BTC were to advance beyond the upper resistance at about 93,500 mark and herald another bullish breakout.

Whale action, ETF outflows, and to a certain extent, thinning leverage have so far joined hands to hold the Bitcoin traders squarely on the defensive side.

This article was originally published as Bitcoin Stalls as Whale Moves, ETF Outflows Rise on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Trust Wallet Exploit Causes $7 Million Loss in Christmas Day Hack

On Christmas Day, users of Trust Wallet, a popular cryptocurrency wallet service owned by Binance, suffered a significant security breach resulting in estimated losses of approximately $7 million. The incident, which had been meticulously planned since early December, targeted the wallet’s desktop browser extension, version 2.68, compromised by an orchestrated attack. Trust Wallet has since urged users to update to version 2.89 to mitigate further risks.

Key Takeaways

Attackers implanted a backdoor on Trust Wallet’s desktop extension, enabling them to transfer funds and collect user information.

Binance’s CEO, Changpeng Zhao, assured that affected funds will be reimbursed, emphasizing the company’s commitment to user security.

Industry experts suggest insider involvement and highlight the sophisticated nature of the breach, as the attacker demonstrated considerable familiarity with Trust Wallet’s source code.

The attack underscores rising threats in the digital asset space, particularly concerning personal wallet security vulnerabilities.

Tickers mentioned: N/A

Sentiment: Negative

Price impact: Negative. The exploit highlights persistent security vulnerabilities and threats within the crypto ecosystem.

Trading idea (Not Financial Advice): Hold. Investors should await further updates on wallet security measures before making decisions.

Market context: As thefts from digital wallets increase, enhanced security protocols and industry vigilance become paramount to safeguarding user assets.

Details of the Trust Wallet Breach

Trust Wallet announced the breach via a post on social media, revealing that the security incident compromised the browser extension version 2.68, affecting desktop users. The attackers had been developing the exploit since December 8, with successful implantation of a backdoor on December 22. According to blockchain security expert Yu Xian, co-founder of SlowMist, the attacker began transferring stolen funds on December 25. The malicious code also collected users’ personal information, transmitting it to an external server.

Source: Chainalysis.com

Onchain detective ZachXBT confirmed that hundreds of Trust Wallet users were impacted by the breach. Several industry insiders raised concerns over possible insider involvement, especially since the attacker managed to submit an updated version of the wallet extension on Trust Wallet’s official website. Anndy Lian, an intergovernmental blockchain advisor, speculated that insider activity was highly probable, noting the attack’s sophistication. Binance CEO Changpeng Zhao echoed this sentiment, stating the breach was “most likely” an insider job.

Further analysis indicated that the attacker demonstrated an in-depth understanding of the wallet’s source code, facilitating the backdoor implementation. Security researchers warn that such breaches, increasingly driven by insider activity, pose a growing threat to the security and trustworthiness of crypto wallets.

The incident prompts a broader discussion on industry security measures and the importance of transparency to protect users from evolving tactical threats in the digital asset space.

This article was originally published as Trust Wallet Announces $7M Refund for Browser Extension Hack, Zhao Confirms on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Introduction

James Howells, a prominent figure in the cryptocurrency community, emphasizes the importance of understanding blockchain fundamentals before diving into crypto investments. With a history marked by a high-profile Bitcoin loss, Howells advocates for responsible experimentation, comprehensive education, and a cautious approach toward leverage trading. His insights serve as practical guidance for newcomers, seasoned veterans, and skeptics alike as they navigate the evolving crypto landscape.

Key Takeaways

Beginners must learn how blockchains and decentralized finance work before investing.

Experiments with crypto protocols and wallets should be done without risking real money initially.

Avoid leverage trading due to its high risk and the advantage it provides to experienced traders.

Veterans should regularly verify their wallet backups and promote real-world crypto usage and adoption.

Table of Contents

Tickers mentioned: None

Sentiment: Neutral

Price impact: Neutral. The article emphasizes caution and education over immediate market moves.

Trading idea (Not Financial Advice): Hold — Focus on education and safe experimentation before taking significant risks.

Market context: The broader crypto market continues to emphasize responsible adoption amid regulatory uncertainties and emerging mainstream interest.

Informed Entry into Crypto

James Howells, who became widely known after attempting to recover 8,000 Bitcoin from a landfill like the one that once contained his hard drive, stresses that new entrants must first understand the core principles of blockchain technology. He states, “Learn how blockchains operate, why decentralized finance exists, and what problem it solves.” He further explains that cryptocurrencies offer an alternative to traditional fiat systems, which concentrate power within governments and intermediaries. Recognizing why this decentralization matters is more crucial than simply purchasing coins.

Practical Experimentation and Caution

Once newcomers grasp the basics, Howells advises experimenting with various protocols, services, and wallets—initially without risking large sums. “You will make mistakes, and you will lose money. That is part of learning,” he says. The key is to keep lessons affordable by avoiding significant financial exposure, as many people become discouraged after losing hundreds on poorly chosen apps. He emphasizes that most people only care about small losses if they learn valuable lessons, rather than losing large amounts which can tarnish the broader adoption narrative.

However, Howells warns against leverage trading, which he considers dangerous for newcomers. “Stay away from it entirely,” he urges, citing how leveraged platforms often benefit experienced traders, turning inexperienced users into liquidity providers for the more sophisticated. He cautions that lack of understanding of market structures and risk mechanics can make traders the product of the system.

Protect and Promote Crypto Adoption

Veterans should routinely test their wallet seed phrases and backup strategies to ensure accessibility. Howells highlights that many wallets created in the early 2010s have become unusable due to evolving software standards. He advocates that crypto users incorporate digital assets into their daily lives and help onboard others, emphasizing the importance of real-world usage over mere speculation.

James Howells advocates for responsible and practical crypto engagement.

He urges seasoned users to reinvest profits into the ecosystem by launching businesses or accepting crypto for services, fostering deeper adoption. Despite obstacles faced from regulatory and institutional bodies, Howells asserts that blockchain technology has already ‘won’ and that decentralized infrastructure will inevitably prevail over traditional gatekeepers. Ultimately, he encourages skeptics to approach crypto earnestly, taking the time to set up wallets, make transactions, and understand custody, rather than dismissing the technology based on headlines or misconceptions.

This article was originally published as Essential Crypto Tips for Beginners, Veterans, and Skeptics in 2026 on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Market Sentiment Remains in “Extreme Fear” as Crypto Prices Retreat

The crypto market continues to grapple with a prolonged period of investor apprehension, with the Crypto Fear & Greed Index remaining entrenched in “extreme fear” for the 14th consecutive day. The index fell three points to a score of 20 out of 100 on December 26, signaling a persistent lack of confidence among traders and investors. This ongoing phase of pessimism marks one of the longest streaks in the “extreme fear” zone since the index’s inception in February 2018.

Market sentiment has progressively declined since early October, when renewed US-China tariff fears triggered a nearly $500 billion sell-off across the crypto landscape on October 10. The prevailing concerns around global trade tensions, coupled with macroeconomic uncertainties, have kept risk appetite subdued. Adding to the negative sentiment are cautious expectations around Federal Reserve monetary policy, which some analysts believe could pause rate cuts in the first quarter of 2026. Industry veteran Jeff Mei, COO of crypto exchange BTSE, warned that if the Fed maintains steady interest rates, Bitcoin could retreat to $70,000, from its current level of approximately $88,650, nearly 30% below its all-time high of $126,080 set on October 6.

Source: Crypto Fear & Greed Index

Despite the decline from its recent peak, the index’s current reading is even lower than the levels observed during the collapse of FTX in November 2022, which devastated the industry’s reputation and drove Bitcoin’s price down toward $16,000. The index considers market volatility, trading volume, social media sentiment, trends, and Bitcoin dominance to gauge overall trader psychology.

Crypto Search Volumes Drop Significantly

Analytical firm Alphractal reported a sharp decline in crypto-related search queries across platforms such as Google, Wikipedia, and internet forums. The data suggests that retail interest and engagement have waned considerably, with December 2025 marked by retail investors distancing themselves from the market amid ongoing volatility and disillusionment.

“Crypto social volume has returned to levels typically seen during bear markets,” the firm noted. “December 2025, retail investors appear discouraged, disengaged, and largely absent from the crypto market.”

Industry Experts Attribute the Pullback to “Crypto-Native Retail”

Matt Hougan, Chief Investment Officer at Bitwise, pointed the finger at “crypto-native retail” investors for the recent market downturn. He explained that these participants, battered by the collapse of FTX, the memecoin craze, and unmet expectations during the altcoin season, are now sitting on the sidelines. “Crypto native retail is depressed; they’ve been beaten down multiple times and are choosing to stay out of the market for now,” Hougan said.

In contrast, traditional retail investors, often categorized as “TradFi retail,” are still active in the space, buoyed by consistent inflows into spot Bitcoin exchange-traded funds. Hougan highlighted that U.S. Bitcoin ETFs have attracted over $25 billion in flows this year, despite Bitcoin experiencing a 5% decline year-to-date, underscoring divergent retail behaviors between crypto-native and traditional investors.

As the industry navigates choppy waters, the prolonged fear and reduced interest reflect broader concerns over macroeconomic policies and the future trajectory of digital assets. Nevertheless, institutional inflows suggest a segment of the market remains optimistic about long-term prospects.

This article was originally published as Crypto Market Remains in Extreme Fear for Two Weeks Straight on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Ethereum Co-Founder Praises AI Chatbot Grok for Enhancing Social Media Integrity

Vitalik Buterin, the co-founder of Ethereum, has highlighted the potential of Twitter’s AI-powered chatbot, Grok, in promoting more truthful interactions on the platform. Unlike many other AI systems, Grok’s ability to deliver unpredictable responses that challenge users’ political biases has been seen as a significant step toward fostering a more honesty-driven social media environment.

Key Takeaways

Grok’s design discourages users from manipulating responses to confirm biases, promoting more genuine discourse.

Buterin emphasizes that the unpredictability of Grok’s replies is crucial to its effectiveness.

While acknowledging its benefits, Buterin raises concerns over how AI training data might influence its responses, especially considering Elon Musk’s involvement.

AI chatbots continue to face scrutiny over factual accuracy and ethical issues across platforms.

Tickers mentioned: None

Sentiment: Optimistic about Grok’s potential

Price impact: Neutral; the discussion centers on AI’s societal role rather than market movements.

Trading idea (Not Financial Advice): Hold; AI development in social media is evolving, and cautious observation is advised.

Market context: Growing concerns around AI bias and misinformation continue to influence broader tech and crypto sectors, emphasizing the need for responsible AI deployment.

Grok, developed by Elon Musk’s xAI, is quickly becoming a notable advancement in AI chatbots, especially within the social media space. Buterin lauded its capacity to foster more truthful interactions by resisting the urge to confirm users’ pre-existing beliefs. “The ability for users to call out Grok and see responses that sometimes oppose their expectations has arguably been one of the most positive developments for platform honesty besides community notes,” Buterin stated on Twitter.

However, the Ethereum co-founder also cautioned about inherent concerns regarding AI’s fine-tuning. He noted that Grok’s training could potentially reflect biases from its creators, including Musk, which raises questions over how objective or impartial such models truly are. Last month, issues surfaced when Grok praised Elon Musk’s athletic prowess and even suggested he could have resurrected faster than Jesus Christ—an instance of AI hallucination that drew criticism.

Musk attributed these inaccuracies to “adversarial prompting,” underscoring the vulnerabilities inherent in AI systems. Industry experts argue that decentralization of AI development is vital for safeguarding evidence-based accuracy and mitigating biases that can become systemic. Kyle Okamoto, CTO of decentralized cloud platform Aethir, warned that monopolized AI systems risk institutionalizing biases, which can distort perceptions as if they were objective facts.

Despite its flaws, Buterin pointed out that Grok has succeeded in making X more truth-oriented than many third-party AI tools, which often generate misleading or biased content. As AI chatbots remain widespread—OpenAI’s ChatGPT also faces criticism for inaccuracies—improvements are desperately needed across the industry to ensure responsible AI deployment.

This article was originally published as Vitalik Buterin Praises Grok for Keeping Musk’s X Accountable on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Bitcoin’s Fundamentals Remain Strong Despite Recent Market Fluctuations

Despite a significant decline in Bitcoin’s price toward the end of 2025, industry leaders affirm that the asset’s underlying fundamentals remain robust. Strategy CEO Phong Le emphasized that long-term market health supersedes short-term volatility, signaling confidence in Bitcoin’s resilience amid recent market downturns.

Key Takeaways

Bitcoin reached an all-time high of $125,100 in early October but has since fallen nearly 30%, currently trading at approximately $87,687.

The Crypto Fear & Greed Index has signaled “Extreme Fear” since mid-December, reflecting heightened market apprehension.

Strategy’s market valuation metric, mNAV, has dipped below 1, now at 0.93, indicating a temporary narrowing relative to Bitcoin holdings valued at around $58.63 billion.

Le highlights ongoing support from the US government, which is increasingly positive towards Bitcoin, and collaborations with traditional financial institutions aiming to integrate crypto into mainstream finance.

Tickers mentioned: $BTC, $MSTR

Sentiment: Neutral

Price impact: Negative. The decline reflects market volatility and investor sentiment, but outlook remains optimistic about long-term fundamentals.

Market context: The recent price correction occurs amid broader institutional adoption and positive regulatory signals, underpinning Bitcoin’s foundational strength.

Resilient Fundamentals Amid Market Corrections

Contrary to short-term price swings, Bitcoin’s essential metrics indicate a solid foundation for the future. Le stated that the market’s fundamentals are “better than ever,” noting that short-term price action is inherently unpredictable. He emphasized the importance of an analytical approach, including metrics like the market net asset value (mNAV), which recent data shows has fallen below 1, signaling some valuation disconnects. Strategy owns 671,268 Bitcoin, valued at approximately $58.63 billion, with their mNAV decline reflecting recent market jitters.

Beyond price movements, Le pointed to the strengthening support from the US government, which has shown unprecedented backing for Bitcoin. The administration’s increasingly positive stance indicates significant long-term institutional confidence, further underscored by ongoing dialogues with traditional banking institutions in the US and UAE. He mentioned that these discussions aim to better integrate Bitcoin into mainstream financial systems, representing a pivotal shift in institutional acceptance.

Le also referenced the strategic intentions of the US government, which, despite lacking a formal plan, has raised expectations by signing an executive order earlier this year to establish a Strategic Bitcoin Reserve and US Digital Asset Stockpile. Analysts, including Galaxy Digital’s Alex Thorn, have suggested that a formal announcement regarding this reserve could be imminent, signaling a critical moment for government-backed crypto policy.

Overall, Le contends that the current fluctuations are part of a natural market cycle and remain optimistic about the future. With ongoing institutional interest and supportive regulatory developments, Bitcoin’s core strengths are poised to underpin its long-term trajectory.

This article was originally published as Bitcoin Market Fundamentals Set to Surge in 2025: CEO’s Strategic Insights on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Las Vegas Sphere Displays NFT Project’s Animated Penguins During Christmas

The innovative Pudgy Penguins NFT project made a high-profile visual splash during the holiday season by projecting its animated penguin characters across the exterior screens of the Las Vegas Sphere. This landmark venue, renowned for its expansive high-resolution LED panels visible throughout the Las Vegas Strip, hosted the NFT-based animation on Christmas Eve, attracting significant attention from both crypto enthusiasts and the general public.

Key Takeaways

During Christmas week, Pudgy Penguins animated characters were displayed on the Las Vegas Sphere’s exterior screens, enhancing the project’s visibility in the mainstream entertainment hub.

The NFT project was acquired in April 2022 by entrepreneur Luca Netz for approximately $2.5 million in Ether, aiming to diversify revenue streams beyond digital collectibles.

As NFT markets faced a downturn in 2025, Pudgy Penguins shifted focus towards physical toy production, turning it into a substantial revenue generator with an estimated $50 million in annual sales.

The project leverages social media, particularly Instagram, with a following of around 2 million, to promote its brand and engage with audiences worldwide.

Tickers mentioned: None

Sentiment: Positive

Price impact: Neutral. The visual campaign boosts brand awareness without immediate market impact.

Market context: Despite a challenging year for NFTs, projects like Pudgy Penguins are demonstrating resilience and diversification into physical products, underscoring ongoing innovation within the space.

Pudgy Penguins Expands into Physical Merchandise Amid Market Turmoil

Founded in 2021, Pudgy Penguins quickly became a recognized name in the NFT landscape. After its acquisition by Luca Netz for around 2.5 million in Ether, the project has sought to mitigate declining NFT revenues by pivoting into physical toy manufacturing. This strategic move has proved successful, with the company projecting revenues of approximately 50 million dollars for the year, reflecting its ability to adapt in a volatile market.

“Toys generate significant revenue, but the margins are thin,” Netz explained in an interview. “While we are selling millions of dollars’ worth of toys, scaling required time and effort.”

The company’s diversification into tangible merchandise stemmed from a desire to create sustainable cash flow and engage a broader audience outside the digital space. Additionally, Pudgy Penguins actively promotes its brand via Instagram, amassing around 2 million followers, which helps maintain its visibility and consumer engagement.

In 2025, the NFT market experienced notable setbacks, with transaction volumes dropping sharply and market capitalization falling to approximately 2.5 billion dollars by December, marking the lowest point of the year. Despite these challenges, certain sectors within NFT related markets have shown resilience, notably real-world collectible-backed NFTs such as trading cards.

Platforms like Courtyard.io linked authentic physical collectibles, such as Pokémon cards, to on-chain tokens for trading and redemption, with over 230,000 transactions and roughly 13.9 million dollars in sales over the past month, according to CryptoSlam. Nicolas le Jeune, CEO of Courtyard, emphasized that blockchain enhances the ownership experience rather than directly increasing asset value: “The cards aren’t worth more because they’re NFTs; the value resides in the underlying asset — the NFT provides a better way to enjoy it.”

This article was originally published as Pudgy Penguins NFT Characters Make Their Debut at the Las Vegas Sphere on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Crypto Markets Shift Focus from Narratives to Capital Flows and Liquidity

Crypto markets are increasingly driven by measurable capital movements and liquidity conditions rather than just headlines or narratives. While news related to regulation, political developments, and institutional adoption often trigger short-term volatility, sustained price trends depend largely on tangible on-chain data and investor demand.

This shift highlights the importance of analyzing real market behavior over reliance on sentiment alone, as recent trends demonstrate how liquidity and capital flows shape the trajectory of major cryptocurrencies like Bitcoin.

Key Takeaways

Bitcoin’s 56% rally post-U.S. election was tied to a surge in futures open interest, but weak spot market follow-through limited the rally’s endurance.

Demand for Bitcoin via spot ETF inflows showed a clear correlation with price movements—strong inflows coincided with rallies, while slowing or reversing flows coincided with pauses or declines.

A 50% decline in stablecoin inflows on exchanges reduced available buying power, indicating that narrative-driven rallies are prone to reversal without sustained demand.

Liquidity and deployable capital remain critical, with stablecoin inflows serving as a proxy for market capacity to absorb supply and sustain trends.

Market Dynamics and Narrative Influence

While narratives can act as catalysts for short-term price moves, they primarily influence market positioning rather than direct capital commitment. For example, in 2024, Bitcoin traded within a range of approximately $50,000 to $74,000 despite recurring bullish headlines. This inertia persisted until late in the year when a pivotal political event—the U.S. election—shifted market sentiment.

Leading up to the November 4 vote, Bitcoin retraced around 8% amid risk-off positioning. Once the election results confirmed a Trump victory, Bitcoin surged 56% over the following month and a half, breaking above $100,000. During this period, futures open interest nearly doubled, indicating heightened speculative activity. However, momentum proved difficult to sustain once market saturation set in, with spot demand failing to keep pace with leverage growth.

Demand and Liquidity as Market Drivers

The inflows into spot Bitcoin ETFs served as a key demand indicator, with around $35 billion flowing into U.S. spot ETFs in 2024—a significant demand signal that correlated with major price halvings. Notably, during downturns, ETF flows occasionally turned negative, reaffirming that these products are demand-sensitive rather than a last-resort liquidity source.

Additionally, liquidity remains the overarching determinant. Stablecoin inflows reflect available buying power; during Q4 2024 and early 2025, rising inflows supported market rallies, but recent declines of roughly 50% have curtailed price growth. When liquidity dries up, even narrative-driven rallies tend to fade quickly, especially in lower-liquidity phases where incremental capital is limited.

Further supporting this view, the Bitcoin-to-gold ratio fell by half in 2025, signaling a shift toward defensive assets amid rising real yields of around 1.8%. On-chain data, especially profit-taking behavior by long-term holders, indicates that elevated opportunity costs and macroeconomic factors act as significant headwinds, dampening bullish sentiment and restraining sustained upward movement.

In essence, while headlines can spark initial moves, the true drivers of ongoing price trends are liquidity and existing capital flows, emphasizing the broader importance of macroeconomic and demand fundamentals in the crypto space.

This article was originally published as What Fueled Bitcoin and Crypto Boom in 2025? on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Canton Coin has experienced a notable surge of approximately 27% over the past week, significantly outpacing the broader cryptocurrency market. This rally is largely attributed to recent developments surrounding the tokenization of traditional assets and increasing institutional interest in blockchain-based solutions for financial infrastructure.

Key Takeaways

Canton Coin’s recent rally follows the DTCC’s announcement to tokenize US Treasury securities on the Canton Network.

The DTCC, which manages post-trade infrastructure for US securities, processed roughly $3.7 quadrillion in transactions last year.

The Canton Network is a permissioned blockchain facilitating regulated issuance and settlement of tokenized assets, with Canton Coin serving as its native token.

Tokenized real-world assets, especially US Treasuries, are experiencing rapid growth, reflecting institutional adoption and expanding use cases.

Tickers mentioned: None

Sentiment: Bullish

Price impact: Positive. The association with institutional initiatives and real-world asset tokenization fuels investor confidence.

Trade idea (Not Financial Advice): Hold. Given the ongoing institutional engagement and expanding use cases, remaining invested may be prudent.

Market context: This rally occurs amid a broader cautious market sentiment, with many cryptocurrencies experiencing stagnation or slight declines, highlighting the unique factors driving Canton Coin’s performance.

Institutional Adoption Boosts Canton Coin

The recent surge in Canton Coin’s value stems from the landmark announcement by the Depository Trust & Clearing Corporation (DTCC), which revealed plans to tokenize a portion of US Treasury securities on the Canton Network. As a pivotal player in US securities infrastructure, the DTCC processed approximately $3.7 quadrillion in securities transactions last year, underscoring the significance of this move.

DTCC CEO Frank La Salla emphasized that this collaboration paves the way for real-world, high-value tokenization use cases, starting with US Treasuries and potentially expanding into a wide array of assets. The Canton Network itself is a permissioned blockchain designed specifically for regulated financial institutions to issue, settle, and manage tokenized assets efficiently, with Canton Coin serving as the native token supporting transactions on the platform.

While major cryptocurrencies like Bitcoin and Ether experienced slight declines, Canton Coin’s rally highlights growing investor optimism surrounding tokenization initiatives. Cryptocurrency markets overall have been relatively flat, with several leading tokens down marginally, reflecting a cautious trading environment.

Tokenization of real-world assets has gained traction in 2025. Recent data shows that the total value of tokenized assets has tripled over the past year, reaching approximately $19 billion. US Treasuries account for a significant portion of this growth, with about $9 billion tokenized—more than double from the start of the year. Major products like BlackRock’s USD Institutional Digital Liquidity Fund and offerings from Ondo Finance and Franklin Templeton highlight the institutional embrace of on-chain assets.

Industry experts see this trend as transformative, arguing that tokenized assets can reduce transaction costs, broaden global access, and enable 24/7 trading. Keith Grossman, president of MoonPay, predicted that the push to bring traditional assets onto blockchain would compellingly modernize legacy financial systems, similar to how digital media reshaped the sector.

This article was originally published as Canton Token Surges 25% After DTCC Announces Tokenized Treasury Plans on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

The Rapid Expansion of Stablecoin Adoption

The stablecoin market has experienced unprecedented growth, reaching a total value of $310 billion on December 12, 2025 — a staggering 70% increase within a year. This surge underscores a fundamental shift in the use of digital assets worldwide, marking stability as a key driver in mainstream adoption and infrastructure development in the crypto space.

Key Takeaways

Stablecoins are designed to maintain price stability through reserve backing or algorithmic mechanisms, using fiat currencies or commodities like gold as benchmarks.

Market leaders, Tether’s USDT and Circle’s USDC, dominate with combined holdings exceeding $300 billion, emphasizing trust and network effects in user preferences.

Stablecoins revolutionize cross-border payments by providing fast, low-cost transfers, significantly reducing traditional banking fees and delays.

Institutional adoption is accelerating, with many organizations integrating stablecoins into their operations for payments, settlements, and treasury management.

Tickers mentioned: USDT, USDC

Sentiment: Bullish

Price impact: Positive, as increasing stablecoin adoption signals broader acceptance and integration into financial systems.

Market context: The growing use of stablecoins reflects broader trends towards digital financial infrastructure and the evolving landscape of crypto regulation.

The Significance of Stablecoins in Commerce and Finance

Stablecoins serve as a vital bridge between traditional finance and decentralized economies. Their stability addresses a critical issue in cryptocurrency—volatility—making them suitable for everyday transactions, remittances, and as a store of value in unstable economies like Argentina and Venezuela. High inflation rates have driven users in these regions toward stable digital assets, bypassing traditional banking systems, and fostering financial inclusion.

Recent research indicates that nearly three-quarters of consumers would consider using stablecoins if offered by their banks, though only 3.6% currently feel comfortable with unregulated providers, highlighting a trust gap and regulatory momentum.

Institutional Momentum and Infrastructure Development

Major industry players are heavily investing in stablecoin infrastructure—Stripe’s acquisition of the stablecoin platform Bridge, Circle’s blockchain initiatives, and Tether’s development of its own layer-1 protocol exemplify this trend. Surveys from 2025 show that nearly half of financial institutions are already using stablecoins operationally, with many piloting or planning integrations, especially for cross-border transactions and business payments.

This shift from speculative interest to practical utility is transforming stablecoins into essential tools for corporate treasury operations, offering near-instant settlement and reducing currency risks. Interestingly, stablecoins often precede more adventurous blockchain ventures within institutions, as they align closely with existing financial workflows.

Stablecoins and the DeFi Ecosystem

Stablecoins are foundational to decentralized finance (DeFi), underpinning major protocols like Aave and Curve which structure their core pools around these assets. They provide predictable collateral, enabling the growth of yield-generating products like Ethena’s USDe, designed to convert passive holdings into productive capital. Onchain transaction volumes involving stablecoins have reached trillions of dollars annually, rivaling traditional payment networks in some metrics.

In 2025, over half of DeFi’s total value locked resides in stablecoins, cementing their role as essential collateral and units of account within decentralized platforms.

The Future Scale of Stablecoins

The $310 billion valuation prompts questions about the future growth trajectory. Industry analyses project stablecoin supply could reach $2 trillion by 2028, fueled by broader integration with traditional finance and improved infrastructure like compliant on-ramps, merchant tools, and user-friendly interfaces. Regulatory developments, including the Markets in Crypto-Assets (MiCA) framework and the US GENIUS Act, are guiding the industry toward greater transparency and stability.

Building a Mainstream Infrastructure

The underlying strength of stablecoins lies in their ability to facilitate real-world economic activity. While they may not make headlines like Bitcoin halving events, stablecoins underpin much of the day-to-day crypto usage, combining regulatory compliance, technical interoperability, and economic stability. Their continued evolution will likely sustain their central role in bridging crypto innovation with traditional finance, ultimately offering more efficient, accessible payment systems for everyday users worldwide.

This article was originally published as What the $310B Stablecoin Market Tells Us About Crypto Adoption Trends on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

US Federal Reserve’s Policy and Its Implications for Crypto Markets in 2026

The US Federal Reserve’s actions in 2025 have created an uncertain environment for cryptocurrency markets. Despite implementing three rate cuts totaling 0.75%, broader macroeconomic signals suggest potential volatility ahead. With inflation cooling and unemployment rising slightly, market participants are closely watching the Fed’s next move. Recent policy shifts, including the cessation of quantitative tightening and the introduction of “Reserve Management Purchases” (RMPs), may serve as a form of “stealth quantitative easing,” influencing liquidity and risk assets like Bitcoin and Ethereum.

Market Reaction Diverges from Fiscal Policy Expectations

Interestingly, cryptocurrencies did not rally post-rate cuts as traditional sentiment might suggest. Instead, the total market capitalization has declined by over $1.45 trillion since October, illustrating investor caution. Officials like New York Fed President John Williams have emphasized data dependence and inflation targets, indicating no immediate inclination toward further easing. Williams’s remarks — specifically his goal of reducing inflation to 2% while maintaining labor market stability — add to the ambiguity. Additionally, disruptions caused by a US government shutdown may have distorted recent inflation data, complicating forecasts for Q1 2026.

Total crypto market cap monthly chart. Source: TradingView

Analysts warn that if the Fed maintains steady rates into early 2026, Bitcoin and Ether could experience further declines, with some experts projecting Bitcoin falling toward $70,000 and Ether down to $2,400. The uncertain inflation trajectory, combined with mixed economic signals, underscores the complex interplay between monetary policy and crypto asset performance.

The Role of “Stealth QE” in Stabilizing Markets

Since the Fed officially ended quantitative tightening in December, it has engaged in Reserve Management Purchases, injecting approximately $40 billion in short-term Treasury bills to bolster liquidity and ease stress in financial markets. This move has been likened to “stealth QE,” as it quietly increases the money supply, reminiscent of the expansive policies seen during the pandemic era when the crypto market cap surged by over $2.9 trillion.

If these RMPs persist into 2026 at a slower pace, they could help sustain risk appetite and stabilize crypto prices without aggressive rate reductions. Experts predict that continued liquidity support might push Bitcoin toward $92,000-$98,000 and Ethereum to around $3,600, driven by institutional ETF inflows exceeding $50 billion and growth in layer-2 scaling solutions that attract decentralized finance users.

Overall, the evolving monetary landscape, marked by cautious rate policy and unconventional liquidity measures, suggests that liquidity, rather than rate cuts alone, will dictate crypto market directions in the near term.

This article was originally published as Crypto Markets Outlook Q1 2026: What’s Ahead and Potential Impact on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Ethereum Set for Major Scaling Advancements in 2026

The upcoming year promises transformative upgrades for Ethereum, targeted at significantly boosting its scalability and efficiency. Central to these developments is the Glamsterdam fork, scheduled for mid-2026, which aims to introduce perfect parallel processing capabilities and increase the network’s gas limit to 200 million from the current 60 million. Alongside, new consensus protocols and interoperability enhancements are expected to herald a new era of high-speed, low-cost transactions.

Key innovations include a transition of validators from executing transactions to verifying zero-knowledge (ZK) proofs. This shift is anticipated to propel Ethereum’s transaction processing capacity to around 10,000 transactions per second (TPS) and potentially higher, although reaching that milestone immediately remains uncertain. Additionally, data blobs per block could rise to 72 or more, allowing layer 2 solutions to even further scale transactions—potentially to hundreds of thousands per second.

The Glamsterdam Fork: Enhancing Parallel Processing

Developers are finalizing proposals for the Glamsterdam hard fork, expected to activate in 2026, which will incorporate several key Ethereum Improvement Proposals (EIPs). Notable among these are Block Access Lists and Enshrined Proposer Builder Separation. While these technical improvements may sound mundane, their impact could be substantial—enabling “perfect” parallel processing across the network.

Block Access Lists (EIP-7928) will allow transaction processing to occur on multiple CPU cores simultaneously by mapping dependencies within each block. This means transactions affecting different accounts or storage can be executed concurrently, dramatically increasing throughput without raising gas limits. “With Block Access List, we are getting all the state that changes from transaction to transaction, and you are putting that information in the block,” explained Gabriel Trintinalia of Consensys.

Meanwhile, the Enshrined Proposer Builder Separation (ePBS) separates the roles of block proposers and builders, addressing issues related to MEV and centralization. This separation not only improves decentralization but also enhances network security by affording validators more time to validate ZK-proofs, a critical step in scaling Ethereum’s throughput in conjunction with rollups and layer 2 solutions.

Future Gas Limit Increases and Scalability

The current gas limit of 60 million is expected to surge in 2026, with estimates ranging from 100 million to possibly 200 million after implementation of certain upgrades. Ethereum co-creator Vitalik Buterin anticipates targeted, incremental increases rather than uniform jumps, factoring in storage costs and smart contract complexities. Such expansions are key to accommodating increasing transaction demand without sacrificing decentralization or security.

In addition, the Heze-Bogota fork is expected to focus on censorship resistance through mechanisms like Fork-Choice Inclusion Lists, ensuring transaction inclusion even amid contentious scenarios. These innovations collectively highlight Ethereum’s ongoing efforts to enhance scalability, privacy, and resilience as it approaches its network upgrade milestones in 2026.

This article was originally published as Glamsterdam & Hegota Forks: Ultimate Guide to L1 Scaling Strategies on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.