Increased Support From The Senate Spurs On Digital Assets Policy Talks

Talks on digital asset legislation saw new life breathed into them following increased support by the Senate to integrate cryptocurrencies in the mainstream financial market system. Members of Congress continued debating issues related to blockchain infrastructure, institutional involvement, and financial modernization as digital assets began featuring more prominently in economic policy talks.

This recent discussion followed remarks from Senator Cynthia Lummis which have gone viral in crypto circles. These remarks made it clear that the involvement of digital assets in the mainstream financial market system was inevitable despite opposition from traditional banks. Investors considered this a further indication that cryptocurrency regulation had become a political priority in the country.

MASSIVE:

🇺🇸 Senator Lummis just said what every banker fears.

“Digital assets are becoming part of the future financial system. Whether banks embrace them or not.”

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The woman who fought for the CLARITY Act for years.
The woman who pushed it to the finish line.
The woman who… pic.twitter.com/tvYvG2dVLg

— Merlijn The Trader (@MerlijnTrader) May 15, 2026

Key Insights

• Crypto integration backed by the Senate enhanced discussions on regulations of digital assets and development of blockchain infrastructure.
• Financial institutions’ resistance was a key concern as regulators discussed financial innovation and decentralization of finance.
• The involvement of institutions in cryptocurrency markets grew as regulatory clarity became an important policy topic

Banking Opposition Still Plays a Key Role in the Discussion

The issue of traditional banking opposition was still one of the topics that received the most attention in discussions about crypto legislation. According to the reports quoted in market discussions, banking organizations had already invested millions in lobbying against certain crypto policy measures.

These facts only confirmed the image of an existing conflict between decentralized finance and traditional banking infrastructures.

In the past, banks used to raise their voices against crypto assets for reasons related to compliance problems, custody, money laundering risks, and capital exposure. The uncertainty about regulation had also been making many financial companies wary of developing crypto-related businesses.

Institutional Participation Grows in Financial Markets

Institutional integration continued being one of the key themes in the context of the overall cryptocurrency market story. Institutional involvement grew among asset managers, payments companies, trading venues, and custodians as adoption slowly progressed from speculative trading.

The discussion also brought up the name of Brian Armstrong whose firm Coinbase has been actively taking part in talks around crypto market structure and regulation. Cryptocurrency exchanges and infrastructure companies continued advocating for better frameworks that would facilitate institutional participation.

Market participants kept an eye on regulatory developments as legislation often played an important role in building long-term market confidence. Better legislation may help financial firms with compliance issues and encourage institutions to get involved in digital assets.

The bigger picture regarding the market narrative was moving away from the survival of digital assets to questions regarding their timeline of integration. In the eyes of many market players, blockchain technology has become a growing part of future financial systems as opposed to a fleeting fad.

While the debates in the Senate were evolving, it was perceived that political support for digital assets was becoming stronger even with the reluctance of the old guard.

Solana’s native token SOL faced a roughly 15% correction after a rejection near $98 on May 11, with traders watching a potential support retest at around $83 on the following Tuesday. The move comes as perpetual futures funding rates shifted into negative territory, signaling greater appetite for bearish leverage and adding to the pressure from softer on-chain activity. Market data indicate SOL’s funding rate slipped to around -3% on Tuesday, down sharply from +8% just days earlier, underscoring investors’ preference for hedges or short exposure in a choppy price environment. A Friday-to-Tuesday drift kept the market away from sustained bullish leverage, with a note that funding costs tend to settle near neutral levels in calmer conditions. The price action has also intersected with a broader deterioration in Solana’s on-chain usage, compounding concerns about its near-term trajectory.

Key takeaways

• Solana’s perpetual futures funding rate turned negative, suggesting rising demand for short SOL positions as the token traded near resistance.
• Competition from rival networks, particularly Hyperliquid and Base, is intensifying, threatening Solana’s DEX volume and ecosystem revenue share.
• Solana’s DEX activity has declined meaningfully since January, with DApp revenue around $20 million per week and weekly DEX volume near $11 billion, down from prior peaks.
• Solana remains a leading source of DApp revenue, but Ethereum’s broader TVL advantage remains intact, highlighting sectoral competition for user momentum and liquidity.
• Questions persist about on-chain activity quality, including potential MEV-related spoofing on low-cost Solana DApps, underscoring ongoing data-quality and integrity concerns.

Funding dynamics, price action, and what it signals

The price action around SOL has been shaped by a blend of resistance tests and shifting funding costs. After a rejection at around $98 in early May, SOL retraced and briefly tested the low-to-mid $80s, before another pullback. The latest data show a negative perpetual funding rate, with Tuesday readings around -3%—a material swing from the weekend’s +8%—indicating a market skew toward short exposure and a higher cost to hold long positions in neutral to bearish conditions. In practical terms, negative funding rates imply that longs must pay shorts to maintain their leverage, a sign of faltering demand for a sustained bounce rather than a confident upside breakout. The broader price framework, including a move below $90 at the weekend, has reinforced caution around near-term upside catalysts for SOL.

These funding dynamics sit alongside a price thread that has faced a harder environment for bulls to gain traction, as investors weigh on-chain activity and the competitive landscape for Solana’s ecosystem. While SOL’s price strength is often tied to usage and developer traction, the current regime points to a watchful market awaiting a clearer debt-to-equity balance in Solana’s on-chain activity and liquidity flows.

Solana’s ecosystem under pressure: DEX activity and DApp revenue

Defi analytics show a meaningful slowdown in Solana’s DEX and DApp activity since January. Solana’s weekly DApp revenue has stabilized around $20 million, down from roughly $35 million in January. In parallel, total weekly DEX volume on the network sits around $11 billion, compared with about $25 billion per week earlier in the year. The pullback in DApp demand has fed into a softer revenue environment for developers and liquidity providers, even as Solana remains a leading chain for new application launches and trading activity within its ecosystem.

Among the week’s revenue leaders on Solana are Pump, Axiom Pro, Phantom, and Jupiter, collectively accounting for roughly two-thirds of DApp revenue share over a 30-day period. This concentration indicates both a high degree of activity among a core set of applications and continued competition for developer and liquidity incentives in the Solana ecosystem. Although Solana still commands a dominant share of DApp revenue in its class, the broader DeFi layer remains exposed to shifting usage patterns as competitors sharpen their positions.

Competitive dynamics: Hyperliquid, Base, and the liquidity race

Solana’s ecosystem is contending with intensified competition from rival networks leveraging different models to capture DEX volume. Hyperliquid has emerged as a direct threat, particularly through its approach to perpetual contracts and high-throughput trading features that are integrated at or near the consensus layer. On the other hand, Base—an Ethereum Layer 2 network linked to Coinbase—offers tighter integration into the Coinbase ecosystem, positioning it to siphon liquidity that might otherwise flow to Solana’s on-chain venues.

In the broader picture, Solana’s on-chain value metrics show a mixed picture. Solana remains a top blockchain by DApp revenue and retains significant TVL, but it now sits behind Ethereum in total value locked—Ethereum remains the dominant chain with roughly $43.2 billion in TVL, reflecting substantial collateralized lending and staking activity. Among Solana-compatible platforms, Jupiter, Kamino, Sanctum, and Raydium continue to be major DEX and staking DApps, collectively anchoring the network’s TVL around $5.9 billion, well ahead of competing chains like BNB Chain and Base in specific categories but not in the broad TVL race.

Looking at the data through this competitive lens is essential for investors and builders. If Solana can arrest the slide in DEX volumes and re-accelerate DApp usage, its relative position could improve even in a crowded field. Conversely, sustained gains by Hyperliquid and Base could compress Solana’s liquidity and revenue share, making the network’s path forward more dependent on renewed developer activity and strategic incentives to attract traders back to Solana-based venues.

MEV, spoofing concerns, and what to watch next

Solana’s low transaction fees create both opportunities and risks for activity within DApps. Some observers warn that the same cost efficiency that benefits ordinary users also creates a favorable environment for maximal extractable value (MEV) botting and spoofing, potentially inflating on-chain activity without corresponding real user engagement. The pattern has drawn attention from analysts who monitor unusual concentration of activity across certain platforms. For example, a post on X by a market observer highlighted that about 1,600 addresses appeared to account for a disproportionate share of volumes on PreStocks, a synthetic asset market operating on Solana. While such patterns align with arbitrage-like behavior, they also raise questions about whether some activity is genuine trading or volume manipulation. The claim underscores the need for ongoing vigilance over data quality as Solana’s ecosystem scales.

These dynamics matter for investors and builders because the quality of on-chain activity directly informs token economics, network security incentives, and the attractiveness of Solana-based products to developers and traders. As competition intensifies with Base’s Coinbase tie-in and Hyperliquid’s perpetual-focused approach, the next several quarters will be crucial for Solana to demonstrate that growth in DApp usage and DEX volume can outpace a widening field of alternatives.

For readers tracking the data, several sources provide ongoing insight: Laevitas data shows the shifting funding rate terrain for SOL perpetuals, while DefiLlama offers the weekly DApp revenue and TVL figures used to map Solana’s ecosystem health. Observers will want to watch whether SOL’s price reclaims key levels and whether DEX activity rebounds as memecoin trading and other liquidity magnets regain steam.

As the market navigates a landscape of rising competition and evolving on-chain behavior, the coming weeks could reveal whether Solana can stabilize usage or whether the advantage shifts decisively toward rivals like Base and Hyperliquid. Investors should monitor funding-rate signals, DEX volume dynamics, and the quality of on-chain activity to gauge Solana’s path forward.

What’s next to watch: a potential rebound in DEX activity and developer engagement, a clearer trend in on-chain activity quality, and how Base’s Coinbase integration may reshape liquidity flows. The coming data points will help determine if Solana can restore momentum or if the current crosswinds deepen the competitive gap.

South Korean funeral service company Bumo Sarang is sitting on roughly 49.3 billion won ($32.7 million) in unrealized losses after investing about $40 million in customer funds into leveraged crypto exchange-traded funds (ETFs).

Bumo Sarang invested in the T-REX 2X Long BMNR Daily Target ETF (BMNU), which doubles the daily returns of Ether (ETH) treasury company Bitmine, according to the company’s audit report for 2025.

Another funeral service company, Christian Funeral Family of Faith, recorded a $331,700 net loss last year, according to Korea Economic Daily.

The findings renewed scrutiny over South Korea’s funeral mutual aid industry, which is supervised by the Fair Trade Commission (FTC) instead of financial regulators, despite managing large pools of customer prepaid funds.

Korea Economic Daily reported that about 43% of local funeral service providers held fewer assets than customer advance payments, raising concerns about whether some of them could repay customers in the event of mass cancellations.

Bumo Sarang audit report for 2025. Source: FTC

A spokesperson for Bumo Sarang told the local outlet that the company is only facing a “short-term unrealized loss due to global market volatility,” which remains “sufficiently controllable within the company’s financial buffer.”

Cointelegraph reached out to Bumo Sarang and Family of Faith for comment but did not receive a response before publication.

Related: South Korea’s Shinhan Card taps Solana to test real-world stablecoin payments

South Korean capital piled into Ether-linked stocks in 2025

A large chunk of South Korean retail capital rotated out of tech stocks and into Ethereum treasury companies last year.

“There’s around $6 billion of Korean retail capital propping up the Ethereum treasury companies,” wrote Samson Mow, the CEO of Bitcoin tech company JAN3, in an Oct. 6 X post. He added that some of those retail buyers didn’t understand the risks of investing in Ether.

ETH, BMNR, year-to-date chart. Source: Cointelegraph/TradingView

Ether’s price fell over 28% year to date in 2026 and was trading above $2,118 at the time of writing. Bitmine’s stock price fell nearly 40% during the same period to $18.7, TradingView data shows.

Bitmine chairman Tom Lee described Ether’s drop below $2,200 as an “attractive opportunity” after the treasury company bought another 71,672 Ether, according to Cointelegraph reporting earlier Tuesday.

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Privacy coin Zcash (ZEC) is flashing a classic bullish reversal pattern that could push its price above $1,000 in the coming weeks.

Key takeaways:

• ZEC’s cup-and-handle setup points to a potential rally toward $1,091 by June or July.
• Privacy coins are leading the market, with ZEC up 73% over the past month versus crypto’s 0.2% gain.

Privacy narrative may trigger 55% ZEC price upside

The ZEC/USD pair appears to have formed a cup-and-handle (C&H) pattern, marked by a rounded recovery phase followed by a downward-sloping consolidation.

Traders typically read the structure as bullish once the price breaks above the neckline, as it suggests buyers have absorbed the previous supply wall and regained control.

The pattern’s upside target is calculated by measuring the distance between the cup’s lowest point and the neckline, then adding that height to the breakout level.

ZEC/USD three-day price chart. Source: TradingView

As of Tuesday, ZEC had entered the pattern’s “handle” stage while eyeing a breakout above the neckline resistance at around the $625–$650 area.

Zcash’s decisive close above the neckline may send its price toward $1,091 by June or July, up about 88% from current prices, if the C&H structure plays out as intended.

This upside target aligns with ZEC’s 1.618 Fibonacci extension, drawn from the $745 swing high to the $185 swing low.

ZEC is outperforming the crypto market in May

ZEC has gained 18% over the past three days, even as the wider market has fallen 3.45% over the same period, prompting some traders to argue that Zcash is effectively “running its own bull market.”

Source: X

Broadly, privacy coins have outperformed the wider crypto market over the past month. ZEC led the move, gaining more than 73%, while other privacy-focused tokens such as Monero (XMR) and Dash (DASH) also rallied in tandem.

By comparison, the total crypto market capitalization rose just 0.2% over the same period, suggesting the move is more sector-specific than market-wide.

ZEC/USD versus XMR/USD, DASH/USD, and the TOTAL crypto market cap one-month performance. Source: TradingView

Heightened demand for anonymity and financial privacy is driving much of Zcash’s renewed appeal, turning the once-forgotten privacy coin into one of crypto’s strongest narratives.

Related: Zcash gains 70% in a week amid growing interest in crypto privacy

The bullish case gained further traction last week after BitMEX co-founder Arthur Hayes said ZEC’s market capitalization could one day reach 10% of Bitcoin’s (BTC).

That would imply a price of $9,225 per coin based on ZEC’s current circulating supply of about 16.68 million tokens.

ZEC’s value in BTC terms has grown roughly 20.50% since Hayes’s comment.

ZEC/BTC daily chart. Source: TradingView

Earlier in May, sentiment also improved after Multicoin Capital disclosed Zcash exposure and Robinhood listed the token, adding fresh institutional and retail-access catalysts to ZEC’s rally.

TLDR

• Bitcoin price dropped sharply this week and briefly touched $76,000 during increased selling pressure.
• Bitcoin whale wallets holding at least 100 BTC increased to 20,229 over the past year.
• Large Bitcoin holders continued accumulation despite market volatility and shifting investor sentiment.
• Data showed that these whale wallets now hold Bitcoin worth at least $7.7 million each.
• Retail traders showed fear and reacted with increased selling as bearish sentiment rose.

Bitcoin recorded a sharp weekly decline and briefly touched $76,000, while large holders increased accumulation. Data showed rising whale wallet numbers despite growing market stress and negative sentiment. Analysts reported continued institutional activity as retail traders reacted with caution and selling pressure.

Bitcoin Whales Expand Holdings During Price Weakness

Bitcoin experienced a fast pullback this week, and prices briefly fell toward $76,000 during heavy selling. However, large holders continued accumulation, which reflects sustained activity from institutions and high-net-worth investors.

Santiment reported that wallets holding at least 100 BTC increased to 20,229 over the past year. The firm stated, “This marks an 11.2% rise from 18,191 wallets recorded last year.”

These wallets hold roughly $7.7 million or more in Bitcoin, which links them to major investors. The data showed that accumulation continued even during periods of volatility and shifting sentiment.

Santiment added that whale growth persisted despite retail hesitation and frustration across social channels. The firm noted that large holders often act independently of short-term market sentiment.

Historically, rising whale wallet numbers suggest confidence in Bitcoin’s long-term supply dynamics and market role. This trend continued even as prices faced downward pressure.

Market Stress Rises as Selling Pressure Builds

CryptoQuant data showed that the SOAB ratio moved above normal levels during the recent downturn. This shift indicated capitulation from older Bitcoin holders who began selling under pressure.

At the same time, short-term investors showed panic-selling behavior as prices declined quickly. This reaction contributed to increased volatility across the market.

Santiment reported a surge in bearish sentiment across social media platforms in recent days. The firm stated that bearish comments exceeded bullish ones for the first time since April 21.

Retail traders reacted strongly to price weakness and expected further declines in the near term. This shift highlighted growing fear among smaller market participants.

Analysts suggested that a rapid V-shaped recovery remains unlikely under current conditions. Market data reflected ongoing stress across both long-term and short-term holders.

Regulatory Progress Enters Focus as Next Catalyst

Nexo analyst Dessislava Ianeva pointed to regulatory developments as a potential driver of future price movement. She stated that the CLARITY Act could influence Bitcoin’s trajectory.

The bill recently advanced through the Senate Banking Committee, which raised expectations for regulatory clarity. Ianeva said, “This progress may act as a catalyst for the next rally.”

Bitcoin briefly rose above $82,000 following the committee approval and market reaction. At the same time, prediction markets increased the probability of the bill becoming law in 2026.

Ianeva compared the development to the earlier GENIUS Act rally, which also triggered price movement. She added that a Senate floor vote could support further upside momentum.

Recent price movements and legislative progress continue to shape market direction and investor positioning. Data shows that whale accumulation remains active during ongoing volatility.

Asset manager Yorkville America has requested to withdraw multiple crypto exchange-traded funds applications filed on behalf of the Donald Trump-backed Truth Social after changing its product strategy.

Yorkville America said Tuesday that it is moving away from offerings registered under the Securities Act of 1933, such as the proposed Truth Social Bitcoin ETF, to structures under the Investment Company Act of 1940, saying the shift would enable it to offer more innovative products while benefiting from stronger investor protections and tax efficiencies. 

Yorkville America’s Truth Social Bitcoin & Ethereum ETF and Truth Social Crypto Blue Chip ETF were also withdrawn. The asset management firm said it “initiated this process after determining the ’40 Act framework provides a structure for delivering the differentiated, rules-based investment strategies the firm continues to develop for its growing investor base.”

Yorkville America’s request to withdraw its Truth Social Bitcoin ETF. Source: SEC

The firm, known for “America First”-themed investment products, gave no indication it would pursue a crypto ETF under the ‘40 Act framework. Yorkville is the financier and asset manager for Trump Media & Technology Group (TMTG), which is behind Truth Social.

The withdrawals come amid ongoing concerns that Trump’s ties to the crypto industry, and the financial interests stemming from them, are conflicting with his duties as the US president.

Democratic senators have been pressing for answers ever since Trump was inaugurated in January 2025, particularly regarding his role with the World Liberty Financial crypto platform.

Crypto ETFs have struggled this year

It also comes as demand for crypto ETFs has cooled in 2026 amid a broader crypto market pullback. 

Net inflows into US spot Bitcoin (BTC) ETFs in 2026 currently sit at $790 million as of Tuesday, mostly concentrated in the BlackRock-issued iShares Bitcoin Trust ETF (IBIT) and are only a fraction of the $25 billion that inflowed in 2025. 

Spot Ether (ETH) ETFs have also struggled to maintain investor interest, recording $640 million in net outflows, while new altcoin ETFs have not captured the same demand at launch as their predecessors. 

Related: Trump-linked American Bitcoin energizes 11,298 new ASICs 

However, Bloomberg ETF analyst James Seyffart suspected Yorkville America’s decision to pull out of the crypto ETF market may have been due to the competitive landscape for Bitcoin ETFs, particularly with the new Morgan Stanley Bitcoin Trust ETF carrying a market-low fee of 0.14%.

The crypto ETFs were intended to be part of TMTG’s broader crypto strategy, which included the launch of the Truth.fi financial platform last year.

Yorkville America’s product offerings range from American-themed funds spanning defense, security and energy, as well as tech and real estate.

Products issued under the ’40 Act are typically mutual funds and ETFs designed for diversified, regulated investment strategies, while ’33 Act structures are commonly associated with spot commodity and crypto-style ETF products. 

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