TL;DR

ETH surges 40% on Pectra upgrade; BTC ETF inflows, withdrawals drive supply squeeze; stablecoins top $240B.

Highlights

• Ethereum’s Pectra upgrade raised validator limits to 2,048 ETH, enabled EIP-7702 transactions, and drove a 40% Ethereum price rally; Abraxas and Grayscale bought over $560M in Ethereum 14.
• Bitcoin saw 100,000 BTC withdrawn from exchanges over three weeks, $300M in shorts liquidated, and U.S. Bitcoin ETFs surpassed $41B in net inflows, with major outflows from Coinbase and Binance 29.
• Tether purchased 4,812 BTC ($458M) to seed its treasury company Twenty One, ahead of a Nasdaq SPAC merger, targeting a $4.4B BTC treasury 3.
• Stablecoin market cap rose above $240B, Tether supply hit $150B (led by Tron), and Anchorage Digital acquired Mountain Protocol (USDM); Stripe and Coinbase launched new stablecoin products 515.
• JPMorgan executed its first public tokenized U.S. Treasury transaction using Ondo and Chainlink; VanEck launched $VBILL, a tokenized Treasury fund, on multiple blockchains with 24/7 liquidity 67.
• Solana DApps generated $11M in 24-hour revenue (64% of all DApp revenue), with $2.8B daily DEX volume; Believe app’s LAUNCHCOIN surged 447% to $150M market cap 1120.
• Robinhood acquired WonderFi for C$250M, expanding crypto services in Canada 8.
• XRP surpassed Tether as the third-largest crypto by market cap ($150B), leading trading volume in South Korea 13.
• SEC delayed decisions on Solana , Litecoin, and Bitcoin ETF proposals; Senate seeks to revive the GENIUS Act stablecoin bill amid political controversy 1017.
• FalconX partnered with Standard Chartered to expand crypto services in Asia; UBS reported rising HNW client allocations to crypto and alternatives 12.
• Bitcoin ’s illiquid supply hit $1.4B as mid-tier whales accumulated and retail holders reduced exposure 14.
• Ethereum Foundation launched a “Trillion Dollar Security” initiative to enhance on-chain security for mass and institutional adoption 16.
• Senators Lummis and Moreno urged the U.S. Treasury to eliminate tax on unrealized crypto gains 18.

Commentary

Ethereum ’s Pectra upgrade delivered technical improvements—most notably raising validator limits and introducing EIP-7702 transaction types—prompting a 40% rally in ETH and attracting significant institutional inflows from Abraxas Capital and Grayscale 14. The upgrade’s focus on scalability and efficiency, coupled with the Ethereum Foundation’s new security initiative, reinforces the network’s positioning for both institutional and mass retail adoption 16.

Bitcoin markets remain defined by tightening supply and institutional demand. Large BTC withdrawals from exchanges and record ETF inflows, including a $1B outflow from Coinbase, point to continued accumulation and reduced available supply 29. Tether ’s $458M BTC purchase for its new Nasdaq-bound treasury company further highlights the ongoing integration of crypto with traditional capital markets 3.

Stablecoins are consolidating their role as core market infrastructure, with Tether ’s supply topping $150B and the total stablecoin market cap exceeding $240B 515. Institutional moves—Anchorage Digital’s USDM acquisition, Stripe’s stablecoin accounts, and Coinbase’s protocol launch—signal ongoing expansion and innovation in the sector. Meanwhile, JPMorgan and VanEck’s tokenized Treasury transactions on public blockchains underscore growing TradFi engagement with on-chain assets 67.

Solana ’s DApp ecosystem is generating the majority of blockchain app revenue and DEX volume 11, while new launchpads like Believe app are fueling rapid token creation and speculative activity with LAUNCHCOIN 20. However, the sustainability of this growth and the risk of value erosion remain key watchpoints for traders.

Regulatory uncertainty persists, with the SEC delaying ETF decisions and the Senate revisiting stablecoin legislation 1017. Institutional partnerships (FalconX/Standard Chartered) and shifting HNW allocations (UBS) continue to drive global adoption, but U.S. policy outcomes will remain a central risk factor for market sentiment and capital flows 12.