Crypto Breaking

Ethereum and Solana Poised for Coexistence in Expanding Tokenization Market, Says Industry Expert

In the rapidly evolving landscape of blockchain technology, Ethereum and Solana are emerging as key players in the tokenization and digital asset economy. A leading venture capitalist emphasizes that both platforms are likely to thrive side by side, rather than one overshadowing the other, as they cater to different aspects of the expanding market.

Key Takeaways

Both Ethereum and Solana are vital to the future of tokenization, each serving different market needs.

Ethereum dominates stablecoin issuance and on-chain economic activity, while Solana excels in trading volume and transaction speed.

The vast disparity in network asset value highlights their unique strengths and market positioning.

The industry anticipates multiple blockchains playing complementary roles, with new entrants potentially capturing market share.

Tickers mentioned: $BTC, $ETH, $SOL

Sentiment: Neutral

Price impact: Neutral. The recognition of both blockchains’ importance suggests stability in their respective markets rather than immediate price shocks.

Trading idea (Not Financial Advice): Hold, as diversified blockchain participation remains crucial in the growing tokenization ecosystem.

Market context: The ongoing expansion of asset tokenization and decentralized finance (DeFi) continues to shape the competitive dynamics among major blockchain networks.

Ethereum and Solana: Complementary Strengths and Market Dynamics

Both Ethereum and Solana are expected to continue flourishing within the broad token economy. Rob Hadick, general partner at Dragonfly Capital, articulated a nuanced perspective during a CNBC interview, likening the two blockchains to social media giants Facebook and MySpace. He explained that, like these platforms, Ethereum and Solana will coexist, each serving distinct functions within the ecosystem.

Ethereum currently dominates the stablecoin sector and hosts the majority of on-chain economic activity, with a network asset value reaching roughly $183.7 billion, according to data from RWA.XYZ. Meanwhile, Solana has carved out a niche with high trading volumes and low transaction costs, making it particularly suitable for fast-paced trading activities, with a network asset value of approximately $15.9 billion.

Hadick underscored that no single blockchain can scale sufficiently to become the universal platform. Instead, different use cases will gravitate toward different networks. The potential emergence of new blockchains could further diversify the ecosystem, capturing market share from established networks.

This fragmentation is evident as some platforms reroute their operations. For example, Sorare, a fantasy sports NFT platform, announced plans in October to migrate from Ethereum to Solana after six years, aiming to leverage Solana’s scalability and user-focused features. CEO Nicolas Julia remains optimistic about Ethereum, viewing the migration as an upgrade rather than a deviation.

As the market evolves, industry insiders observe an increasingly complex interplay between networks, emphasizing that a multi-chain future is not only likely but necessary for addressing diverse application needs in the expanding token economy.

This article was originally published as Can Solana and Ethereum Conquer the Tokenization Race? Insights from Dragonfly on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Polymarket Reports User Account Breach Linked to Third-Party Authentication Provider

Polymarket, a prominent prediction markets platform, has disclosed a security breach affecting a small subset of its users. The incident was linked to vulnerabilities introduced by a third-party login service, raising concerns over platform security and user funds safety amidst rising digital asset threats.

Key Takeaways

Polymarket identified a security vulnerability stemming from a third-party authentication provider, impacting a small number of users.

User reports indicate account breaches and funds drained, with some experiencing multiple login attempts prior to unauthorized transactions.

The platform has confirmed the issue has been resolved and assured users that no ongoing risk persists.

Some affected users suspect the involvement of Magic Labs, a wallet service integrated with Polymarket, in the security breach.

Tickers mentioned: N/A

Sentiment: Neutral

Price impact: Neutral. The incident has prompted security reviews but has not caused immediate market disruption.

Trading idea (Not Financial Advice): Hold. Investors should monitor the platform’s security measures and official updates for further developments.

Market context: The incident underscores the ongoing cybersecurity challenges faced by crypto platforms amidst increasing adoption and sophistication of malicious actors.

Details of the Security Incident

Polymarket acknowledged a breach on its Discord channel, stating that a security flaw was introduced via a third-party authentication provider. The company reported that it identified and rectified the vulnerability after several users reported suspicious activity, including multiple login attempts, and some accounts were subsequently drained of funds.

Source: Discord

Following the breach, affected users reported that their account balances were significantly compromised, with some alleging their funds were drained without authorization. One Reddit user shared that they noticed three unauthorized login attempts before their assets were stolen, with their account balance dropping to nearly zero. Notably, some users linked the breach to Magic Labs, a wallet service integrated with the platform, suggesting that vulnerabilities in this third-party provider may have played a role.

Another user on X stated, “My Polymarket wallet also got drained yesterday. Wallet was created by Magic Labs. I never signed up for email with them, so I never received phishing links.” This points to potential security gaps in third-party integrations, which are increasingly being targeted by malicious actors.

Previously, Polymarket has faced security challenges. In late 2024, some users reported their accounts were compromised after logging in via Google, further highlighting the need for robust security protocols across prediction markets and decentralized platforms.

This incident emphasizes the importance of vigilant security practices for crypto platforms, especially those handling user funds and sensitive data. As the industry continues to grow, safeguarding user assets remains paramount against evolving cyber threats.

This article was originally published as Polymarket Blames Third-Party Provider for Account Breach—What You Need to Know on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Georgia’s CBDC: Kyrgyz President Sadyr Japarov Announces Listing on Binance

Kyrgyzstan has taken a significant step into the digital currency space with the official listing of its national stablecoin on Binance, the world’s leading cryptocurrency exchange. The Kyrgyzstani government revealed that the newly launched stablecoin, pegged to the national fiat currency, is now accessible to a global audience, signaling the country’s commitment to integrating digital assets into its financial infrastructure.

President Sadyr Japarov announced via a social media post that the Kyrgyzstan stablecoin, named KGST and pegged to the som, aims to enhance cross-border payment systems while fostering deeper integration with the broader crypto ecosystem. Binance CEO Changpeng Zhao echoed this sentiment on Twitter, indicating that “many more” nation-backed stablecoins are expected to debut on the platform in the near future.

Since April, Binance has been providing advisory support to Kyrgyzstan as part of a strategic partnership aimed at developing the country’s digital assets sector. The mountainous Central Asian nation, with a population of approximately 7 million, has demonstrated a growing interest in digital currencies, exemplified by recent legislative efforts to bolster the industry. Notably, Kyrgyzstan is advancing legislation to establish a state-backed crypto reserve and expand its digital asset market.

Source: Sadyr Zhaparov

Earlier in the year, Kyrgyzstan launched USDKG, a gold-backed stablecoin pegged to the US dollar. Issued on the Tron blockchain with an initial supply of 50 million units, plans are underway to expand its issuance to the Ethereum network, signaling a strategic push to diversify digital asset offerings. The government’s proactive stance on digital assets aligns with its broader economic goals, with existing efforts to create a central bank digital currency (CBDC) and promote blockchain innovations across sectors.

Kyrgyzstan’s move to list its stablecoin on Binance is part of a broader trend in emerging markets, where national authorities are increasingly embracing cryptocurrency as a tool for economic development. This trend is exemplified by other nations contemplating or launching their own fiat-backed tokens, including Japan’s forthcoming yen-pegged stablecoin, jointly developed by SBI Holdings and Startale Group, and a consortium of European banks planning a euro-pegged stablecoin in 2026.

The global stablecoin ecosystem continues to grow, with the current market cap reaching approximately $309 billion. Countries are leveraging this growth to promote financial inclusion and stability, especially in regions with limited access to traditional banking. Kyrgyzstan’s strategic move to integrate its currency into the crypto space reflects a broader shift toward more sophisticated, nation-backed digital assets.

This article was originally published as Kyrgyzstan’s Government-Backed Stablecoin Launches on Binance Exchange on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Crypto Market Outlook Post-2025 Regulatory and Market Shifts

Following a tumultuous year characterized by regulatory upheaval and uneven market performance, crypto investors are reevaluating the sources of value creation within the industry for 2025. Recent insights from industry experts highlight a shift towards traditional incumbents, stablecoins, and prediction markets as key winners amid evolving regulatory landscapes.

Key Takeaways

Established financial platforms like Robinhood expanded their cryptocurrency offerings following clearer regulations.

Stablecoins experienced significant growth, notably Tether, which is now recognized as highly profitable per employee.

Prediction markets emerged as one of the fastest-growing sectors, attracting substantial investments despite early skepticism.

Notable setbacks include high-profile regulatory and individual setbacks, such as the sentencing of Terraform Labs co-founder Do Kwon and increased regulatory scrutiny.

Tickers mentioned: None

Sentiment: Optimistic about emerging sectors, cautious on regulatory developments.

Price impact: Neutral — while certain sectors saw growth, regulatory headwinds continue to create uncertainty.

Trading idea (Not Financial Advice): Hold — diversified exposure to stablecoins and prediction markets may benefit from ongoing regulatory clarity, but volatility remains a risk.

Market context: The broader crypto environment reflects a pivot towards mainstream adoption amid regulatory stabilization efforts.

Analysis of 2025 Market Dynamics

After a year marked by regulatory uncertainty and volatile market performance, industry leaders have pinpointed the primary areas where value has been concentrated. Mason Nystrom of Pantera Capital notes that traditional incumbents such as Robinhood have strategically expanded their cryptocurrency services once regulatory clarity increased. Robinhood notably shifted from a cautious approach in recent years to more aggressive involvement in 2025, capitalizing on the new landscape according to recent reports.

Stablecoins have proven to be another standout segment, with transaction volumes soaring and issuer profitability reaching new heights. Rashidifard highlights Tether’s position as arguably the most profitable company on a per-employee basis, emphasizing the value stability coins provide to both market participants and end-users. Industry observers now view stablecoins not merely as a revenue source but as foundational elements delivering tangible utility.

Prediction markets have also experienced explosive growth, surpassing prior expectations. Levin underscores the increasing valuation and support from significant institutions, citing investments like the $2 billion infusion into Polymarket by the Intercontinental Exchange. These platforms have moved beyond early skepticism, demonstrating their capacity to host real portfolio activity while addressing concerns about wash trading and election-related speculation.

However, 2025 was not without setbacks. Notable figures like Do Kwon, co-founder of Terraform Labs, faced criminal sentences for their roles in the Terra collapse, which wiped approximately $40 billion from the crypto market in 2022. Regulatory agencies, especially the U.S. Securities and Exchange Commission under the Biden administration, also faced criticism for their aggressive enforcement strategies that many industry insiders regard as hostile and counterproductive.

Nonetheless, legislative developments such as the passing of the GENIUS Act and pending market structure reform indicate a potential shift toward a more balanced regulatory approach, fostering a more stable environment for innovation to thrive.

This article was originally published as Venture Capitalists Favor Incumbents & Stablecoins as 2025 Cryptocurrency Winners on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Bitcoin Options Expiry Approaching as Traders Brace for Year-End Outcomes

The approaching year-end Bitcoin options expiration is prompting careful reassessment among investors. With over $30 billion in open interest set to expire, traders are closely watching key price levels that could influence market sentiment and position adjustments.

Key Takeaways

Approximately $30.3 billion in Bitcoin options will expire at the end of the year, with most call options placed significantly above the current price range.

Market sentiment remains cautious, with bearish strategies prevailing unless Bitcoin surpasses $94,000, especially as higher prices have diminished the size of put option bets.

Deribit dominates the options market with 80% of open interest, predominantly concentrated between $100,000 and $125,000 strike prices.

Traders are hedging their bets amid geopolitical and macroeconomic uncertainties, with some positioning for potential bullish moves in the $90,000 to $120,000 range.

Tickers mentioned: None

Sentiment: Neutral to cautious

Price impact: Neutral — the large options expiry indicates significant market uncertainty, with the potential for either bullish or bearish moves depending on price outcomes.

Market Context

The broader macroeconomic environment, including potential stimulus measures and policy shifts, continues to influence Bitcoin’s price trajectory, with traders positioning accordingly ahead of expiry.

Market Dynamics and Outlook

As the deadline for Bitcoin options expiry approaches, traders remain cautious. Currently, the open interest, valued at over $30 billion, is heavily skewed towards call options, especially those set above $94,000. The fact that most call options are far out-of-the-money suggests that bulls are betting on a significant rally, although recent price declines have forced many to reconsider their positions.

Deribit, handling about 80% of the market’s open interest, shows a concentration of options positions between $100,000 and $125,000, with some optimism reflected in strike prices as high as $200,000. Conversely, a large volume of put options at strike prices between $75,000 and $86,000 suggests widespread hedging against downside risks.

If Bitcoin remains below $94,000 at expiry, more than half of the $7.7 billion worth of put options will expire worthless, favoring bullish outcomes. However, as long as prices stay below this threshold, bearish strategies could still dominate, as the market remains cautious amid macroeconomic uncertainties and geopolitical developments.

Recently, market participants have increased their net positions in call options between $90,000 and $120,000, signaling persistent optimism despite recent setbacks in reclaiming $94,000. This activity underscores ongoing uncertainty but also a readiness for potential upward momentum in early 2024.

This article was originally published as Bitcoin Bears Target $30.3B Options Expiry for Crucial Win on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Ethereum (ETH) Struggles to Maintain Above $3,400 Amid Options Expiry and Market Sentiment

Ethereum has faced difficulty sustaining prices above the $3,400 mark over the past month, raising concerns about prolonged bearish momentum among traders. With a significant options expiry looming on December 26, market participants are closely watching price levels that could influence the broader outlook for ETH heading into the year-end.

Key Takeaways

Approximately $6 billion worth of Ether options are set to expire on December 26, with call (buy) options outnumbering put (sell) options by 2.2 times.

The market remains vulnerable unless ETH convincingly surpasses $3,100, which could shift the balance in favor of bullish traders.

Most of the $4.1 billion in call options are targeted at year-end prices between $3,500 and $5,000, many of which are likely to expire worthless.

Despite an overall optimistic outlook from some traders, fewer than 25% of call options are below the $3,200 strike, indicating limited downside protection for bears.

Market Dynamics and Trader Positioning

The upcoming options expiration on December 26 could intensify price volatility, as traders evaluate the likelihood of ETH breaking key resistance or support levels. Deribit accounts for approximately 70% of open interest, followed by the Chicago Mercantile Exchange (CME) with 20%. Most bullish bets are concentrated between $3,500 and $5,000, but many of these positions are likely to lapse without value, especially with ETH trading below $3,400 recently.

Aggregate Dec. 26 ETH call options open interest, USD. Source: laevitas.ch

Data indicates that less than 15% of call options are set at or below $3,000, and traders often sell covered calls at strike prices of $8,000 and $10,000, reflecting limited expectations of reaching these levels in the near term. Conversely, bearish strategies, including put spreads targeting $2,200 to $2,900, suggest traders remain cautious, especially if ETH remains under $3,200.

Aggregate Dec. 26 ETH put options open interest, USD. Source: laevitas.ch

Analysts note that if ETH closes above $2,950 on Friday, more than 60% of the $1.9 billion in put options will expire worthless, providing a potential uplift. However, maintaining below $3,200 keeps bearish positions more favorable, adding pressure on ETH’s price trajectory.

External Market Factors and Investor Sentiment

Recent reports indicating setbacks in US chip manufacturing, notably Intel’s failure to advance its production capabilities in competition with Taiwan Semiconductor (NASDAQ: TSM), have added to cautious sentiment. Nvidia (NASDAQ: NVDA) reportedly halted certain production tests dependent on Intel’s manufacturing processes, highlighting broader concerns about semiconductor supply chains and technology investments.

Increased Hedging and Risk Perception

As traders reassess their exposure amid subdued prospects for artificial intelligence’s economic impact in the US, demand for bearish Ether options has surged. Strategies including bear diagonal spreads and bear put spreads dominate the recent activity, especially after multiple failed attempts to reclaim the $3,400 level over recent weeks.

Implications for Next Week’s Price Action

Based on current trends, there are several possible scenarios for Ether’s price around the options expiry: a dip toward $2,700–$2,900 could favor puts by $580 million; a move between $2,901 and $3,000 favors puts by $440 million; while prices between $3,101 and $3,200 are expected to balance out. If ETH holds above $3,100, it could help traders reset their positions and improve sentiment heading into the new year.

This article was originally published as Ethereum Options Expiry Reveals Risks Below $2,900 Level on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Market Analysis and Price Predictions for Key Cryptocurrencies

Recent market dynamics reveal a cautious sentiment across the cryptocurrency landscape, with Bitcoin struggling to maintain levels above $90,000 and many major altcoins facing downward pressure. Indicators point toward reduced participation from both institutional and retail investors, raising concerns about a potential consolidation phase after notable gains earlier in the year.

Bitcoin has fallen below $87,000, reflecting waning demand at higher price points.

Institutional fund flows into BTC and ETH ETFs have turned negative, indicating a period of subdued market activity.

Active addresses and Binance deposit/withdrawal activities are at annual lows, suggesting market indecision.

Most leading altcoins are approaching support levels, with some poised for potential breakdowns.

Tickers mentioned: Bitcoin, Ethereum, Binance Coin, XRP, Solana, Dogecoin, Cardano, Bitcoin Cash, Chainlink, Hyperliquid

Sentiment: Neutral to Slightly Bearish

Price impact: Negative, due to declining participation and key support levels coming into focus.

Market context: The subdued investor activity aligns with broader macroeconomic uncertainties and regulatory concerns impacting market confidence.

Analysis of Major Cryptocurrencies

Bitcoin is currently trading below the 20-day exponential moving average ($88,850), a sign that bullish momentum may be waning despite recent attempts to push higher. The long wick on the recent candle signals resistance at elevated levels, with traders eyeing the crucial support zone around $84,000. A break below this level could trigger further declines toward $80,600 and ultimately $74,508. Conversely, a bounce from support and a move above the short-term moving average would suggest consolidation within a range of approximately $84,000 to $94,589.

Ethereum has pierced the 20-day moving average ($3,010) but struggles to surpass the 50-day SMA ($3,088). A failure to break resistance increases the likelihood of a downward move, with support levels near $2,623 and $2,373 if the bears gain control by pulling the price below the support trendline of the current pattern. A reversal and move above resistance would suggest a potential sideways correction or even a bullish resurgence.

Binance Coin has faced rejection from the $865 level, with risk mounting of falling below the uptrend line. A sustained move below $790 could push the price down to $730, while a reversal from support might push it back toward $928, with a breakout above that opening the door to $1,019. The outcome hinges on the strength of bullish buying pressure at support levels.

XRP’s price continues to decline within a descending channel, with critical support at $1.61. A breach below this could see a descent toward $1.25, while a reversal from support and a close above the downtrend line could lead to a rally toward $3.10. The broader trend remains bearish, but short-term signals suggest cautious optimism if key levels hold.

Solana, Dogecoin, and Cardano all exhibit signs of weak momentum, with each facing key support levels. For Solana, maintaining above $116 is vital; a breakdown could see it drop to $95. Dogecoin remains under pressure, with potential losses toward $0.10 if support at $0.12 fails. Cardano needs to defend the $0.34 mark to prevent an extension toward $0.27, with a breakout above the moving averages required to re-establish bullish momentum.

Bitcoin Cash and Chainlink also display similar patterns, with the former bouncing from support but facing resistance at higher levels, and the latter risking further declines if $11.61 support is broken. Hyperliquid shows a weak rebound attempt, with a close below key support levels hinting at further downside.

Overall, the current technical landscape suggests a cautious environment, with traders closely monitoring support zones while awaiting clearer momentum signals for the next directional move.

This article was originally published as Top Cryptocurrencies to Watch: BTC, ETH, BNB, XRP, Solana, Dogecoin & More on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Hong Kong Advances Crypto Regulatory Framework with New Licensing Regimes

Hong Kong is moving forward in its efforts to strengthen its position as a leading global crypto hub by formalizing licensing requirements for cryptocurrency service providers. Following the conclusion of consultations, the city’s regulators are set to implement licensing regimes for firms engaging in crypto dealing and custody services, marking a significant step in its comprehensive digital asset regulatory strategy.

Key Takeaways

Hong Kong’s Financial Services and the Treasury Bureau (FSTB) and the Securities and Futures Commission (SFC) have finalized plans for licensing regimes for crypto firms.

The new rules will obligate firms offering crypto dealing or custodial services to obtain licenses once enacted.

This move builds on existing regulations, including the 2025 enforcement of the Stablecoin Ordinance.

The city continues to strengthen its crypto ecosystem through tokenization initiatives and broader regulatory measures.

Tickers mentioned: None

Sentiment: Positive

Price impact: Neutral. The regulation is likely to bring clarity and stability, supporting market confidence without immediate price shifts.

Trading idea (Not Financial Advice): Hold. Regulatory clarity may stabilize the market but is unlikely to trigger rapid price movements in the short term.

Market context: As regulatory frameworks evolve globally, Hong Kong’s comprehensive approach positions it as a competitive hub for digital assets.

Expanding Regulatory and Innovation Initiatives

Hong Kong has long aspired to become a major player in the crypto industry. The city already functions as a major financial gateway, with a reputation for its business-friendly tax policies and proximity to mainland China. Its recent efforts include the implementation of robust licensing rules for crypto trading platforms, which has resulted in approval for 11 companies to operate under the existing regime since 2020.

Hong Kong has rejected more applicants for its crypto exchange license than it has approved. Source: SFC

Beyond licensing, the city has also been exploring tokenization projects and is poised to formalize regulations for custodians and dealers of digital assets. Julia Leung, CEO of the SFC, emphasized that these measures aim to foster a trusted, sustainable, and competitive environment, reinforcing Hong Kong’s role in the global digital asset market.

Additionally, the SFC has issued a consultation paper inviting public input on new proposals for licensing advisory and management service providers involved with cryptocurrencies. These initiatives align with Hong Kong’s broader strategy to develop a comprehensive regulatory framework encompassing stablecoins, tokenization, and anti-money laundering measures, further cementing its ambitions as a crypto-forward financial hub.

This article was originally published as Hong Kong Launches New Licensing Rules—What You Need to Know on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Bitcoin Shows Signs of Bottoming Out Amid Decisive Technical Indicators

Bitcoin appears to be nearing a local bottom after a sharp decline exceeding 35% from its recent peak of approximately $126,200, recorded two months ago. A combination of technical patterns and on-chain activity signals suggests the cryptocurrency may be poised for a reversal, with key market exhaustion points indicating the potential for a recovery in the coming weeks.

Key Takeaways

Technical momentum, miner capitulation, and liquidity indicators signal decreasing selling pressure.

Macro liquidity conditions hint at a possible Bitcoin rebound within the next 4 to 6 weeks.

Historical patterns show that similar technical setups have preceded bullish reversals.

On-chain activity and hash rate data support the premise that the market may have reached a capitulation point.

Strengthening Technical and On-Chain Signals

Recent weekly chart analysis reveals that Bitcoin’s Stochastic RSI has moved away from oversold territory, a bullish sign historically preceding major lows. As trader Jesse pointed out, such bullish crossovers occurred after previous correction lows—including the 2019 bottom near $3,200, the COVID-19 crash at around $3,800, and the late 2022 low near $15,500—each followed by significant rallies. Additionally, the three-day chart now shows a bullish divergence: prices hit lower lows, but momentum indicators have not, implying diminishing selling pressure and the potential for a trend reversal.

Weekly BTC/USD chart. Source: TradingView

Moreover, Bitcoin’s mining activity has shown signs of capitulation, with the network’s hashrate declining by approximately 4% in December. Analysts from VanEck consider this a bullish contrarian indicator, as sustained hash rate drops often precede stronger price recoveries. Historically, after similar declines since 2014, Bitcoin posted positive returns over the following three to six months, with longer periods showing average gains of roughly 70%. This may also improve miner profitability, encouraging hardware reactivation and network security.

Macro Indicators Signal a Potential Rally

Increasing liquidity conditions outside the immediate crypto sphere bolster the case for an imminent rebound. The Chicago Fed’s National Financial Conditions Index (NFCI) has historically acted as a leading indicator, with recent readings below -0.50 matching periods of upcoming price surges. A decline of just 0.10 points in this index has previously coincided with 15–20% upside in Bitcoin, highlighting the importance of macroeconomic factors in driving crypto markets.

Chicago Fed NFCI vs. Bitcoin price. Source: X

Of particular interest is the Federal Reserve’s plan to shift holdings of mortgage-backed securities into Treasury bills, a move that analyst Miad Kasravi likens to the 2019 “not-QE” liquidity injection, which preceded a 40% rally in Bitcoin. While many experts remain cautious and predict further declines with targets dropping to $70,000 or even $25,000, these macro signals highlight the potential for a bullish phase in the coming weeks.

Despite optimistic indicators, markets remain volatile, and diverse forecasts continue to project significant downside risk. Investors should remain cautious, conducting thorough research before making any trading decisions. The evolving macro landscape and technical backing suggest that Bitcoin might be setting the stage for a substantial rebound within the next month or two.

This article was originally published as 3 Bitcoin Indicators Signal a Potential BTC Market Bottom on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Bitcoin Market Stalls Amid Low Participation and Tight Liquidity

Despite Bitcoin trading near $88,000, current market dynamics indicate a subdued environment characterized by declining on-chain activity and decreasing liquidity levels. These conditions suggest a period of consolidation, with limited prospects for a decisive move above $90,000 in the near term.

Key Takeaways

Bitcoin’s network activity has diminished to its lowest levels in a year, despite the cryptocurrency’s stable price.

Exchange inflows on major platforms like Binance and Coinbase have contracted sharply, indicating tighter market liquidity.

Market participants are exercising caution, with long-term holders not rushing to sell and short-term traders refraining from aggressive accumulation.

Technical analysis points to a range-bound Bitcoin, with key support and resistance zones highlighting potential liquidity targets for both bulls and bears.

Market Overview: Declining Network Activity and Liquidity

Recent data from CryptoQuant shows a significant slowdown in Bitcoin’s network activity. The 30-day moving average of active addresses has fallen to approximately 807,000—the lowest in the last year—signaling waning participation from retail investors and short-term traders. Moreover, exchange flow metrics reinforce this sentiment, with deposit and withdrawal activity on Binance reaching annual lows. The reduced exchange activity suggests a market in a state of equilibrium, where both accumulation and distribution pressure remain subdued.

Bitcoin active addresses decline. Source: CryptoQuant

On the liquidity front, inflow data from Coinbase and Binance illustrate how trading activity has contracted. On Nov. 24, when Bitcoin was trading near $88,500, inflows totaled $21 billion on Coinbase and $15.3 billion on Binance over a week. By December 21, despite the unchanged price level, inflows had fallen sharply—down 63% on Coinbase and more modestly on Binance—highlighting a drying up of new liquidity and indicating a cautious market stance.

Related: Are altcoins coming back? Why ‘Bitcoin season’ has staying power in 2026

Technical Levels Suggest a Narrow Trading Range

From a technical standpoint, Bitcoin remains confined within a range between $85,000 and $90,000. The price is currently below the monthly volume-weighted average price (VWAP), implying a cautious, neutral bias among traders. Key liquidity zones pinpoint two critical levels: on the downside, a buy-side fair-value gap between $85,800 and $86,500 contains dense long exposure, risking about $60 million in potential liquidations should price slip into this zone. Conversely, the resistance zone between $90,600 and $92,000 holds around $70 million in short liquidation risk, poised to be a barrier to further upward movement.

Bitcoin liquidation heatmap. Source: CoinGlass

Overall, Bitcoin’s near-term trajectory will likely hinge on which side of the range it tests first, as liquidity zones above and below the current price provide potential targets for both bullish and bearish traders.

This analysis underscores a phase of market consolidation driven by reduced on-chain activity and tight liquidity, suggesting traders remain cautious as the asset consolidates within defined support and resistance thresholds.

This article was originally published as Bitcoin Stuck Below $90,000 — Key Metrics Must Shift for Breakout on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

The Binance Coin (BNB) is regaining momentum following a recovery after a closely monitored support area, and this development has boosted the mood of the large-cap altcoins as purchasers begin to take over.

BNB Reclaims Key $840-$875 Accumulation Zone

According to analysts at Altcoin Pioneers, BNB has pushed above the $840-$875 range, a zone traders had been watching for accumulation. The move came after a short pullback during low trading volume, suggesting sellers did not apply much pressure.

Market watchers say the bounce looks driven by steady buying, not forced liquidations. BNB has held near the $850 level for most sessions, which points to buyers actively defending this area.

Technical signals support that view. The relative strength index has moved back into bullish territory after a weak stretch. At the same time, the MACD shows selling pressure fading while buying interest builds. Analysts say this mix of signals fits with an early cycle-level reversal rather than a short-term bounce.

Source: Altcoin Pioneers

Price Holds Key Retracement Range

Other technical signals suggest BNB’s price action remains calm. Analysts point to trading near the volume-weighted average price, or VWAP, as a sign of balanced activity.

Buyers and sellers appear evenly matched, not rushed. Prices often pause around the VWAP during transition periods, which can help form a base before the next move.

Fibonacci levels are also in focus. BNB continues to trade between the 0.382 and 0.5 retracement zones. These levels have often acted as buffers during pullbacks.

As long as price holds within this range, analysts say downside risk looks limited. But a clear break below it could open the door to deeper losses.

Source: TradingView

Moving Average Compression Signals Possible Breakout

Moving averages are beginning to shorten in the short run. This is usually an indicator that the selling pressure has not been changing. The 20 and 50-day EMAs are converging towards the range of around 850, indicating that the price movements have decreased after the last decline.

These silent periods are usually succeeded by price moves according to analysts. The emphasis has now changed to the 100 day EMA and the 200 day EMA between the range of $870 and 890. This area acts as a key test. Any upward increase would help in the greater recovery.

Higher lows are also being observed among traders. Such trend can indicate an increasing strength in case momentum prevails. The initial resistance is between 965-1025 which is close to the recent highs. There is a second resistance zone of between 1100 and 1180 whereby selling was highest previously.

Provided that BNB can support itself and break these levels, analysts believe that the setup will indicate a potential second leg to the upside.

Source: TradingView

This article was originally published as BNB Shows Renewed Strength After Reclaiming Key Support Zone on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Amplify Introduces ETFs Focused on Blockchain Innovation

Amplify, a prominent digital asset management firm, has launched two new exchange-traded funds (ETFs) dedicated to blockchain projects involving stablecoins and tokenization. The ETFs, named the Amplify Stablecoin Technology ETF (STBQ) and Amplify Tokenization Technology ETF (TKNQ), commenced trading on the NYSE Arca exchange, marking a significant step in mainstream adoption of digital asset infrastructure investment.

The funds are designed to track diversified indices comprising companies actively engaged in the infrastructure, development, and revenue generation within the stablecoin and tokenization sectors. Amplify emphasized that these offerings arrive amid a burgeoning phase for digital finance, driven by advancements in blockchain technology, increased regulatory clarity, and expanding institutional involvement.

Source: Amplify ETFs

Stablecoins and tokenization have become pivotal themes within the crypto industry in 2025, bolstered by legislative progress in the United States that encourages institutional engagement and the development of compliant digital assets. Regulatory efforts include the U.S. passing laws providing clearer frameworks for stablecoins and ongoing discussions regarding the treatment of tokenized assets such as stocks.

Amplify’s stablecoin ETF includes shares of major players like Visa, Circle, Mastercard, and PayPal—companies generating substantial revenue through payments, digital asset infrastructure, and trading platforms. The fund also features crypto ETFs from Grayscale, iShares, and Bitwise, reflecting broad institutional interest.

The firm highlighted recent legislative milestones, such as the U.S. GENIUS Act and Europe’s MiCA regulation, which are positioning stablecoins as a compliant backbone of future digital economies. These developments reinforce investor confidence and the maturation of the industry.

Meanwhile, the tokenization ETF provides exposure to legacy financial institutions including BlackRock, JPMorgan, Citigroup, and the Nasdaq, all of which have engaged in tokenization initiatives to digitize traditional financial services. Over recent years, these institutions have significantly invested in blockchain-driven digitization efforts, seeking efficiencies and new revenue opportunities.

Market observers note that the surge of crypto and blockchain ETFs in 2025 follows the easing of regulatory hurdles by the U.S. Securities and Exchange Commission, specifically under Chair Paul Atkins. This shift has contributed to increased ETF offerings, reflecting broader institutional acceptance of digital assets and their infrastructure.

As the industry continues to evolve, the launch of these ETFs underscores the growing maturity of blockchain technology and its integration into mainstream financial infrastructure, driven by technological innovation and clearer regulatory pathways.

This article was originally published as Amplify Unveils New ETFs for Stablecoins and Digital Asset Tokenization on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

As Christmas gets closer, the crypto market remains quiet. Holiday trading usually brings lower volume, and this year is no different. That slowdown has kept pressure on most major assets, including Ripple’s XRP.

So far, XRP hasn’t shown signs of a holiday bounce. Traders remain cautious, and sentiment looks fragile.

As of Dec. 23, XRP was down nearly 3% over the past 24 hours. Buyers haven’t stepped in with confidence. Instead of a rebound, the price has stayed stuck in a tight range, showing hesitation rather than strength.

XRP Trades Sideways as Volumes Thin

At the time of writing, XRP was trading near $1.88, down about 2.7% on the day. The price did bounce from the $1.77–$1.80 support zone, but that move didn’t gain traction. Each attempt to move higher has met selling pressure.

XRP Price Prediction: Will Ripple Rally During The Christmas Market?

Trading activity remains light, which is typical during the holidays. With fewer participants in the market, XRP continues to drift sideways. Neither buyers nor sellers have taken control.

Technical Levels Shape the Outlook

From a technical view, $1.85 stands out as a key support level. As long as XRP stays above it, short-term stability remains intact. That could allow another push higher.

But the upside looks capped for now. The $1.97–$2.00 range has rejected price advances several times. It’s a clear resistance zone. XRP would need a clean break above $2.00, backed by stronger volume, to change the tone.
Until that happens, analysts see the setup as neutral. There’s no clear sign of a trend shift yet.

Downside Risks Still Matter

If XRP falls below $1.85 and stays there, sellers could take control. That would likely bring a retest of $1.80. A deeper drop could send the price toward the $1.75–$1.78 area.

This zone has held before, but repeated tests can weaken support. If the broader market turns more negative, XRP may struggle to defend these levels.

XRP Price Prediction: Consolidation Ahead

Based on current charts, XRP looks set for more consolidation. Analysts expect the price to move between $1.85 and $2.00 unless a clear catalyst appears.

A move above $2.00 would improve the bullish case. A break below $1.85 would favor sellers. For now, most traders seem willing to wait, watching for a clearer signal as the Christmas period continues.

This article was originally published as XRP Price Prediction: Will Ripple Rally During the Christmas Market? on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Crypto asset manager 21Shares has filed a sixth amendment to its S-1 registration statement with the U.S. Securities and Exchange Commission for its proposed Dogecoin ETF. The filing confirms the firm’s continued intention to launch the fund, which will be listed on Nasdaq under the ticker “TDOG.”

The latest filing retains the previously disclosed 0.5% management fee. Coinbase is listed as the custodian for the fund’s Dogecoin holdings. 21Shares does not include any fee waiver in this update. The firm also reiterated its plan to purchase $1.5 million worth of DOGE when the ETF lists.

No effective date yet as firm awaits SEC clearance

The amended registration notes that the fund will not become effective until another amendment is filed or the SEC declares the registration effective, as outlined under Section 8(a) of the Securities Act of 1933. This is consistent with the launch process of other crypto ETFs recently introduced by the firm.

The asset manager, which has already launched ETFs providing spot exposure to Solana and XRP, continues to expand its crypto product lineup. The Dogecoin ETF, if approved, would become the fifth fund by the firm offering direct exposure to a single digital asset.

Meanwhile, Dogecoin ETFs currently trading on the market continue to see low activity. According to SoSo Value data, the Grayscale and Bitwise DOGE ETFs have recorded zero net inflows for eight consecutive trading days, dating back to December 11.

Combined, both funds have attracted only $2.05 million since launching in late November. Grayscale’s ETF currently reports a total net inflow of $3.03 million, while Bitwise has seen net outflows nearing $1 million. Daily trading volumes remain under $1 million, showing limited engagement.

Dogecoin’s price has declined over six percent since the ETFs launched and has dropped more than 58 percent year-to-date. The weak ETF performance appears to reflect the subdued market sentiment surrounding the meme coin.

This article was originally published as 21Shares Moves Forward with TDOG ETF Despite DOGE Fund Stagnation on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Institutional Outflows Signal Cautious Crypto Sentiment

Cryptocurrency markets are experiencing a notable retreat among institutional investors, as evidenced by sustained outflows from Bitcoin and Ether exchange-traded funds (ETFs). According to analytics platform Glassnode, these outflows have persisted since early November, reflecting a broader phase of liquidity contraction and waning institutional engagement in the crypto sector.

Key Takeaways

Since mid-October, ETF inflows for Bitcoin and Ether have turned negative, indicating reduced institutional participation.

Recent data shows four consecutive days of negative Bitcoin ETF flows, though BlackRock’s iShares Bitcoin Trust remains a rare exception with some inflows.

Despite overall outflows, BlackRock’s Bitcoin ETF has amassed over $62.5 billion since launch, surpassing many rivals.

BlackRock’s Bitcoin ETF also stands out on Bloomberg’s “2025 Flow Leaderboard,” despite experiencing a negative return for the year, hinting at strong long-term confidence among investors.

Tickers mentioned: Bitcoin, Ether

Sentiment: Bearish

Price impact: Negative. Ongoing institutional liquidations could pressure prices further amid declining liquidity.

Recent data from Glassnode underscores a significant shift in institutional attitudes toward the crypto market. The 30-day simple moving average of net flows into U.S.-listed Bitcoin and Ether ETFs has dipped below zero, signaling a phase of muted participation. This outflow trend is consistent with the decline in spot markets, which have also been trending downward since mid-October, and reflects a broader contraction of liquidity across the industry.

Interestingly, while the overall ETF sector faces persistent selling pressure—evidenced by four consecutive days of net redemptions—some funds remain resilient. BlackRock’s flagship Bitcoin ETF, the iShares Bitcoin Trust (IBIT), has experienced minor inflows over the past week, defying the broader trend. According to the Kobeissi Letter, total weekly outflows from crypto funds reached nearly $952 million, with investors withdrawing capital in six of the past ten weeks.

Despite this, BlackRock’s ETF remains a standout case. Since its inception, it has attracted over $62.5 billion, outpacing many rival Bitcoin ETFs. Bloomberg ETF analyst Eric Balchunas highlighted that IBIT, despite a negative return for 2023, is still the only ETF on Bloomberg’s “2025 Flow Leaderboard” with such a performance. He noted that the fund even received more inflows than the SPDR Gold Shares (GLD), which appreciated by 64%, suggesting sustained investor confidence amid turbulent times.

Source: Glassnode

This article was originally published as Crypto ETF Outflows Signal Institutional Pullback — Insights from Glassnode on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Bitcoin Nears $100K Adjustment When Inflation Is Considered

Despite Bitcoin reaching an all-time high of over $126,000 in October, recent analysis indicates that when adjusted for inflation, the cryptocurrency has not crossed the $100,000 threshold. Galaxy Research’s head of research, Alex Thorn, explains that accounting for inflation in 2020 dollars reveals Bitcoin’s true inflation-adjusted peak was below this benchmark.

Key Takeaways

Bitcoin’s nominal peak surpassed $126,000 in October 2023.

Adjusted for inflation, Bitcoin’s highest value in 2020 dollars was approximately $99,848.

The Consumer Price Index indicates a 2.7% inflation increase over the past year, diminishing the dollar’s purchasing power.

The US dollar has lost about 20% of its value since 2020, impacting how Bitcoin’s value is perceived in real terms.

Tickers mentioned: Bitcoin

Sentiment: Neutral

Price impact: Negative. When considering inflation, Bitcoin’s real value did not reach the six-figure mark, highlighting the importance of inflation-adjusted analysis.

US Inflation and Dollar Deterioration

According to official data, the Consumer Price Index—a measure of inflation based on the cost of a basket of goods—showed a 2.7% increase over the last year. This modest rise, however, belies the broader loss of purchasing power of the US dollar, which has declined by approximately 20% since 2020. Consequently, while Bitcoin’s nominal price soared, its inflation-adjusted value tells a different story.

Bitcoin’s nominal price did not translate to a six-figure valuation in inflation-adjusted terms. Source: Galaxy Research

The US Dollar’s Decline Continues

In 2025, the US dollar index (DXY) has fallen approximately 11% since the start of the year, reaching a three-year low of 96.3 in September and continuing its downtrend since October 2022. This decline has fuelled the “debasement trade,” where investors rotate into assets they believe will retain or increase in value as fiat currency loses purchasing power.

As dollar weakness persists, many anticipate that cryptocurrencies like Bitcoin could benefit from the ongoing devaluation, positioning them as potential hedges against inflation and currency debasement. While Bitcoin’s nominal rally remains impressive, its real purchasing power, when adjusted for inflation, suggests a more cautious perspective on its true value in a changing macroeconomic landscape.

This article was originally published as Galaxy Reveals Bitcoin Would Never Reach $100K When Adjusted for Inflation on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Bitcoin’s Year-End Stability and Future Outlook

Despite a lackluster year-end rally, Bitcoin’s subdued performance may serve as a stabilizing factor, potentially reducing the likelihood of a significant crash in the early months of next year. Principal industry figure Anthony Pompliano suggests that recent price movements and declining volatility indicate a resilient asset that, while missing some bullish targets this year, remains a strong performer over the longer term.

Key Takeaways

Bitcoin has experienced an almost 7.4% decline from its January opening price, currently trading around $87,436.

Despite missing the predicted $250,000 target, Bitcoin has doubled in value over two years and nearly tripled over three, reflecting strong cumulative growth.

Bitcoin’s volatility has decreased significantly, offering a form of downside protection even as some investors express disappointment over the lack of a blow-off top.

While some analysts forecast a drop to $60,000 by 2026, more conservative outlooks see prices stabilizing around $65,000, illustrating divergent opinions on Bitcoin’s long-term trajectory.

Tickers mentioned: Bitcoin

Sentiment: Neutral

Price impact: Negative. The recent price decline reflects short-term volatility and investor caution, but long-term prospects remain intact.

Trading idea (Not Financial Advice): Hold. The current stabilization suggests a prudent approach amid mixed market signals.

Market context: Broader macroeconomic uncertainties and evolving regulatory landscapes influence Bitcoin’s future performance, emphasizing cautious optimism.

Market Insights and Expert Opinions

In an interview on CNBC, Anthony Pompliano highlighted that Bitcoin has not experienced the dramatic 80% drawdowns many investors feared, despite the year’s volatility and the asset’s failure to reach some bullish targets such as $250,000. He emphasized that Bitcoin remains a remarkable performer in financial markets, with a 100% increase in two years and nearly 300% over three years, driven by its compound growth model.

Pompliano pointed out that Bitcoin’s volatility is now at levels that provide some safety from severe downturns, contrasting with the heavy focus many investors have placed on price declines since the start of the year. He noted the absence of a blow-off top this year, although the anticipated massive correction has yet to materialize.

Despite the cautious optimism, some market analysts remain bearish in their forecasts. Veteran trader Peter Brandt warned that Bitcoin could decline as low as $60,000 by 2026’s third quarter. Conversely, Jurrien Timmer, Fidelity’s director of global macroeconomic research, predicts the asset may bottom at around $65,000 in 2026, suggesting a more moderate outlook amid macroeconomic uncertainties.

As Bitcoin continues to mature, divergent predictions highlight the ongoing debate about its long-term potential. Nonetheless, the current environment indicates a shift towards stability, possibly paving the way for future growth amid cautious investor sentiment.

This article was originally published as Bitcoin Stability and Pomp’s Insight: No Drawdown Expected in 2026 on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Matador Technologies Secures Regulatory Approval to Raise Up to CAD 80 Million for Bitcoin Acquisition

Matador Technologies, a prominent player in Bitcoin-focused financial services, has received approval from the Ontario Securities Commission to raise up to CAD 80 million (approximately $58.4 million). The proceeds from this offering will be directed toward increasing the company’s Bitcoin holdings, aligning with its objective of owning 1,000 Bitcoin by the end of 2026.

The company announced that it can issue various securities—including common shares, warrants, subscription receipts, debt securities, or units—over a span of 25 months. This strategic move aims to bolster its Bitcoin treasury naturally amidst market fluctuations. CEO Deven Soni emphasized the company’s commitment to increasing Bitcoin per share over time and achieving its goal of 1,000 Bitcoin within the specified timeframe.

Currently, Matador owns 175 Bitcoin, valued at around $15.3 million, placing it as the 90th largest corporate holder according to BitcoinTreasuries.NET data. The firm’s chief visionary, Mark Voss, noted that the company intends to vigilantly monitor Bitcoin’s market volatility, deploying capital strategically during optimal market cycles to maximize long-term value.

Source: Matador Technologies

Following the announcement, shares of Matador declined by 3.57%, reflecting investor caution amid broader volatility in the crypto sector. Despite increased institutional interest—over 190 publicly traded companies now hold Bitcoin—the overall market remains susceptible to fluctuations, and some firms have divested parts of their holdings to meet obligations during downturns.

Among notable examples, chipmaker Sequans sold 970 Bitcoin in early November to settle debt, diverging from its initial plan to amass 100,000 Bitcoin over five years. This illustrates ongoing strategic adjustments among corporate Bitcoin holders responding to market conditions.

Strategic Growth Plans

Matador initially announced its intention to become a Bitcoin treasury company on December 23, 2024. The firm’s ambition is to expand its Bitcoin holdings substantially, targeting an eventual reserve of roughly 6,000 BTC by 2027, which would constitute about 3% of Bitcoin’s fixed supply. This aligns with the aspiration of only a handful of corporate entities, including Michael Saylor’s MicroStrategy (NASDAQ: MSTR), to hold a significant proportion of Bitcoin.

As the company moves forward, its growth strategy underscores an ongoing trend among firms leveraging Bitcoin to strengthen their balance sheets and diversify asset portfolios amidst an evolving macroeconomic landscape. While challenges remain, Matador’s strategic deployment signals confidence in Bitcoin’s long-term appreciation potential.

This article was originally published as Matador Secures Regulatory Approval for $58M Share Offering on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Crypto Derivatives Firm Secures $35 Million in Funding, Signaling Growing Industry Confidence

Brett Harrison, the former president of the now-defunct FTX US exchange, has successfully closed a $35 million funding round for his new derivatives venture, Architect Financial Technologies. The latest injection of capital indicates renewed investor confidence in the sector and a sustained appetite for innovative derivatives infrastructure within the crypto industry.

According to reports, Harrison’s startup is leveraging the funds to develop an institutional trading platform offering a comprehensive suite of products, including derivatives, equities, futures, and digital assets. Key institutional players such as Miax, Tioga Capital, ARK Investment, Galaxy, and VanEck participated in the round. This follows a previous raise of $12 million in 2024, which was backed by notable investors like Coinbase Ventures, Circle Ventures, and SALT Fund.

Source: Galaxy

Architect’s recent regulatory approval in Bermuda to offer perpetual futures contracts tied to traditional assets such as stocks, commodities, and foreign currencies highlights its strategic focus on mainstream integration. Perpetual futures, or “perps,” originally gained popularity through platforms like BitMEX and FTX before the collapse of the latter in late 2022. Architect’s foray into this market signals a continued push toward sophisticated, institutional-grade trading products in crypto.

The platform is expressly aimed at professional and institutional traders, offering robust features such as algorithmic trading, advanced risk management tools, and multi-asset derivatives support. The company also has plans for expansion beyond Bermuda to other key markets, including Europe and the Asia-Pacific region, underscoring the global potential of crypto derivatives trading.

The Rising Dominance of Derivatives in Financial Markets

Derivatives represent the largest segment of global financial markets, with outstanding contracts valued in the hundreds of trillions of dollars—far exceeding the world’s economic output. As noted by S&P Global, the derivatives landscape is constantly evolving, yet liquidity remains a persistent challenge across many asset classes. Market participants increasingly favor products with deep liquidity and tight bid-ask spreads, fostering ongoing innovation in index-based and alternative solutions.

Within the cryptocurrency sphere, derivatives have become the dominant trading instruments, constituting approximately 75% to 80% of total trading volume across major exchanges. This central role in liquidity and price discovery, however, also amplifies volatility, as demonstrated during the historic liquidation event in crypto markets on October 10, which erased $19 billion in value within a single day.

Such developments reflect the importance of derivatives in shaping crypto market dynamics and the growing institutional interest in sophisticated trading vehicles.

This article was originally published as Brett Harrison Secures $35M Boost for Cutting-Edge Institutional Derivatives Platform on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

Gnosis Chain Executes Hard Fork to Recover Funds from $116 Million Balancer Exploit

In a decisive move to address a significant security breach, Gnosis Chain has implemented a hard fork aimed at recovering assets lost in a $116 million exploit targeting Balancer. The event marks a notable effort by the community and developers to mitigate the impact of one of the largest DeFi hacks in recent history.

Following a community notice on X (formerly Twitter), Gnosis announced that the hard fork was executed on Monday after a majority of validators had already adopted a soft fork in November. The initial soft fork was enacted in response to the exploit that compromised “Balancer-managed contracts on Gnosis Chain,” which led to the unauthorized transfer of millions of dollars worth of digital assets. The recent hard fork appears to have successfully placed some of these stolen funds “out of the hacker’s control,” indicating a partial recovery of assets.

Source: Gnosis Chain

“Discussions are ongoing on how users will be able to claim back their funds, as well as how contributors involved in the rescue efforts may be recognized or compensated,” stated Philippe Schommers, Gnosis’ head of infrastructure, in a Dec. 12 forum post. “Our immediate focus is on enabling the safe recovery of funds by Christmas. Once secured in a DAO-controlled wallet, we will address the next steps.”

On Nov. 3, Balancer disclosed that hackers exploited its platform for more than $116 million through a sophisticated attack on its decentralized exchange and automated market maker. Onchain data revealed that the hacker transferred a significant amount of staked Ether to a newly created wallet. Although white hat hackers recovered approximately $28 million of the stolen assets, the majority remain unaccounted for.

Despite rigorous security audits—11 in total conducted by four different firms—the breach occurred specifically within Balancer’s V2 Composable Stable Pools. The platform’s security measures failed to prevent the exploit, raising questions about the effectiveness of these audits. Balancer responded by offering a 20% bounty to white hat hackers who helped recover some of the stolen funds, but the loss underscores the ongoing challenges in securing complex DeFi protocols.

The incident highlights the persistent vulnerabilities in DeFi infrastructure and demonstrates how community-led security measures, such as forks and bounty programs, are critical tools in defending digital assets against increasingly sophisticated threats. As Gnosis continues its recovery efforts, the broader ecosystem remains vigilant against future exploits.

For more insights on blockchain security, watch this recent YouTube analysis:

This article was originally published as Gnosis Launches Hard Fork to Recover Funds After Balancer Exploit on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.