Crypto World
Aave Shuts Down Avara Brand and Family Crypto Wallet
Aave Labs is consolidating its branding around core decentralized finance offerings, signaling a shift away from its umbrella project Avara. The reorganization follows a string of moves intended to streamline product focus and accelerate mainstream adoption of Aave’s DeFi stack. In a post on X, founder and CEO Stani Kulechov explained that Avara—an umbrella for projects including the Family crypto wallet and Lens-related initiatives—will be deprecated as the team doubles down on bringing Aave to a wider audience. The announcement underscores a broader theme in the ecosystem: simplifying user experiences to drive mass adoption rather than expanding brand reach through ancillary products.
Key takeaways
- Aave Labs replaces Avara as the central branding home for current and future products, including Aave App, Aave Pro, and Aave Kit.
- The Family wallet on iOS is winding down, with onboarding of new users halted and a slated wind-down over the next year.
- Lens governance has shifted away from Aave, with stewardship handed to Mask Network and Aave taking on a primarily advisory role for Lens-related work.
- The change is part of a broader strategic refocus on DeFi product development and ecosystem integration rather than broad branding expansion.
- Aave remains the dominant DeFi protocol by total value locked (TVL), hovering around $30 billion, well ahead of competitors.
Tickers mentioned: $AAVE
Price impact: Negative. The AAVE price recently declined about 0.7% in the last 24 hours, trading around $127.40.
Market context: The move comes as the DeFi sector consolidates leadership around core lending and borrowing protocols. With Aave at the forefront of TVL—roughly $30 billion, according to DefiLlama—the branding simplification may help streamline user onboarding and product development amid fluctuating risk sentiment and regulatory scrutiny that has grown tighter around decentralized finance offerings.
Why it matters
The decision to sunset Avara and consolidate into Aave Labs signals a strategic bet on a more focused, product-led growth path. By winding down the Family wallet and relegating Lens governance to a governance partner, Aave appears to be prioritizing a seamless end-user experience and clear product ownership. For investors and developers, the move provides a more direct line of accountability for delivering DeFi features that scale: a more cohesive roadmap, clearer product boundaries, and less fragmentation across brands.
On the user experience front, the Family wallet’s wind-down represents a realignment of resources toward experiences that encourage sustained engagement, such as savings-oriented features rather than open-ended wallet functionality. While the wallet’s iOS app will be phased out over the coming year, existing users will still be able to access their funds via Aave’s web interfaces through at least 2027. This keeps funds secure and accessible while the underlying infrastructure continues to support Aave Labs’ broader product ecosystem.
The Lens protocol transition, previously under Aave stewardship, to Mask Network, underscores a broader industry trend: governance and development responsibilities are increasingly distributed to specialized teams. While Aave maintains an advisory role, the strategic emphasis remains on preserving protocol integrity and enabling DeFi deployment at scale. This alignment could help reduce overlaps and accelerate deployment timelines for core Aave products in areas like lending, borrowing, and asset management, reinforcing the network’s competitive position in a crowded DeFi landscape.
In formal terms, Aave Labs will house all current and future offerings, including the Aave App, Aave Pro, and Aave Kit. The branding simplification aims to minimize confusion for users navigating a growing suite of tools and services. By concentrating branding under a single umbrella, the company aims to deliver a more coherent user journey—from onboarding to advanced use cases—without sacrificing the security and reliability that have underpinned its market leadership.
From a market perspective, Aave’s status as the largest DeFi protocol by total value locked provides a cushion against volatility in the broader crypto markets. With TVL around $30 billion and Lido’s staking protocol trailing at roughly $21.7 billion, the competitive landscape remains robust. The price action of AAVE—which traded around $127.40 after a 0.7% daily dip—reflects the typical sensitivity of blue-chip DeFi tokens to broader liquidity and regulatory dynamics, even as the core product suite continues to evolve in line with the company’s strategic reorientation.
What to watch next
- April 1: No new users will be onboarded to the iOS Family Wallet, marking a hard stop for new installations.
- April 1, 2027: Existing Family Wallet users retain access to their funds via Aave’s web interfaces; iOS app access ends, completing the wind-down.
- Updates on Aave App, Aave Pro, and Aave Kit within Aave Labs, including roadmap milestones and governance developments.
- Lens protocol governance and collaboration with Mask Network—monitor any public governance proposals or technical integrations.
Sources & verification
- Stani Kulechov’s X post announcing the sunset of Avara and the move to focus on bringing Aave to the masses.
- Avara blog post detailing that current and future products will operate under Aave Labs and the wind-down of the Family wallet on iOS.
- DefiLlama TVL data confirming Aave as the largest DeFi protocol with approximately $30 billion in total value locked.
- CoinGecko price data showing AAVE trading around $127.40 with a ~0.7% daily decline.
Why it matters
The branding consolidation is a signal of maturity for Aave as it increasingly treats DeFi tooling as an integrated ecosystem rather than a set of standalone products. By aligning development under Aave Labs, the project can allocate resources more efficiently, reduce friction for users, and accelerate delivery of core DeFi capabilities that have driven adoption since the early days of the protocol.
For builders, the move clarifies accountability and ownership for each product, potentially speeding up integration work and reuse of components across the Aave ecosystem. For users, a streamlined brand can translate into a simpler onboarding flow, more consistent user interfaces, and fewer disruptions caused by shifting project scope. Regulators, too, may appreciate a well-defined product suite with centralized governance and clearer risk management practices across Aave’s core offerings.
In the broader crypto market, the emphasis on DeFi-focused growth comes at a time when liquidity and risk appetite remain uneven. However, as institutional and retail demand for scalable, compliant, and user-friendly DeFi tools persists, Aave’s renewed focus could bolster confidence in its trajectory and reinforce its position as a leading provider of decentralized financial primitives.
What to watch next
- Roadmap updates for Aave App, Aave Pro, and Aave Kit under Aave Labs in the coming quarters.
- Any governance proposals related to Lens or other partnerships tied to the Lens ecosystem.
- Evolving product onboarding experiences aimed at broad user segments, including savings-focused features.
Aave founder Stani Kulechov announced the decentralized finance protocol is winding down its Family iOS wallet over the coming year and retiring the Avara umbrella brand as the company consolidates operations entirely under Aave Labs.
The strategic retreat from consumer wallet products comes from a bet that mainstream users will adopt crypto through focused financial applications, such as savings and lending, rather than general-purpose explorers.
Family will stop onboarding new users from April 1, with existing customers able to access the app until April 2027 before transitioning to Aave’s infrastructure.
The shift comes weeks after Aave transferred stewardship of its Lens Protocol social network to Mask Network, completing a dramatic narrowing of focus following years of ecosystem expansion and internal governance battles.
Purpose-Built Products Replace Open-Ended Wallet Strategy
Kulechov said the decision reflects lessons learned from attempting to onboard millions of users through different product approaches.
“Through this journey, we’ve learned that onboarding millions of users requires purpose-built experiences, such as savings, rather than generic, open-ended wallet experiences,” he stated in the announcement.
The Family team, acquired by Avara in 2023 for their design capabilities, contributed work across multiple Aave products, including Aave Pro, the mobile app, and the protocol’s brand identity.
According to the company’s announcement, their core technology, Family Accounts, will continue to power authentication and embedded wallet functionality across Aave’s product suite rather than operate as a standalone consumer application.
Existing Family users will maintain full control of their funds through accounts.aave.com using their credentials, though app functionality will gradually be limited to account access and withdrawals only.
Kulechov emphasized the infrastructure approach supports “a more seamless user journey, stronger safety protections, and more intuitive interfaces, while preserving user sovereignty and full control of funds.“
Consolidation Follows Governance Turmoil and Regulatory Wins
The brand consolidation follows a turbulent six-month period during which Aave faced accusations of governance manipulation and internal disputes over asset ownership.
In December, Kulechov purchased roughly $10 million worth of AAVE tokens shortly before a controversial vote, prompting critics, including DeFi strategist Robert Mullins, to allege the move was designed to boost voting power rather than demonstrate long-term commitment.
Community tensions escalated when Aave Labs unilaterally pushed a proposal to vote regarding brand asset ownership without notifying its author, Ernesto Boado of BGD Labs.
— Cryptonews.com (@cryptonews) December 22, 2025
Aave Labs unilaterally pushed a brand ownership proposal to vote without author notification, escalating governance tensions over protocol asset control and value extraction.#Dao #Aavehttps://t.co/2uRM8QM6Jy
“This is not, in ethos, my proposal,” Boado declared, adding that Aave Labs “breaks all codes of trust with the community” by rushing the submission during what had been a productive forum discussion.
Contributors raised concerns that certain product decisions, including replacing Paraswap with CowSwap integration, redirected an estimated $10 million annually in fees away from the DAO treasury toward private entities.
Marc Zeller of the Aave Chan Initiative argued the DAO had paid for brand assets “four times” through the original LEND token sale, dilution, liquidity mining programs, and service provider fees.
Snapshot data showed the top three wallets controlled more than 58% of voting power, with the largest wallet holding over 27%, intensifying concerns about whale dominance and conflicts of interest within the ecosystem.
Despite internal friction, Aave secured regulatory clarity when the Securities and Exchange Commission concluded its multi-year investigation without recommending enforcement action in December, ending nearly 4 years of uncertainty, and also obtained MiCA authorization in Europe.
The Lens Protocol handover to Mask Network in January represented another piece of Aave’s consolidation strategy.
Kulechov emphasized that “all functions move to Mask,” including IP, chain infrastructure, and social media accounts, while Lens remains permissionless infrastructure.
Aave remains one of the largest DeFi platforms by total value locked, surpassing $45 billion in October.
The Estonia-born, Finland-raised founder, who recently purchased a £22 million mansion in London’s Notting Hill, is preparing to launch Aave V4.
All current and future products will now operate exclusively under the Aave Labs brand as the company focuses resources on “building Aave brand awareness and introducing DeFi to millions of new users globally.“
The post Aave Goes All-In on DeFi, Shuts Down Avara Brand and Family Wallet appeared first on Cryptonews.
Major dollar pairs have shifted into a corrective rebound following the sharp sell-off seen last week. The current move is largely technical in nature, driven by profit-taking as markets await a heavy run of macroeconomic data due to be released over the coming trading sessions. Trading activity remains moderate, as participants prefer to scale back directional positions ahead of key data from the US and Canada that could provide a fresh impulse for the dollar.
Overall, the present dollar correction can be viewed as a short-term pullback after a strong move rather than a reversal of the broader trend. The next direction for USD/JPY and USD/CAD will largely depend on how the market responds to upcoming macroeconomic releases, which may either confirm the resilience of the recent dollar weakness or fuel a further recovery.
USD/JPY
USD/JPY has corrected higher after last week’s sharp decline, reflecting a technical rebound from local lows. On the daily timeframe, a bullish harami pattern has formed, with its follow-through supporting a rise towards the 156.00 level. If the current upward momentum remains intact, a test of key resistance in the 156.60–156.80 area is possible. However, unfavourable news for the dollar could see the pair retreat back towards 154.80–155.30.
The following events may influence USD/JPY price action in the near term:
- today at 15:15 (GMT+2): US ADP non-farm employment change;
- today at 16:30 (GMT+2): US services PMI;
- tomorrow at 05:35 (GMT+2): Japan’s 30-year JGB auction.
USD/CAD
USD/CAD is also showing a corrective recovery after its recent sharp decline. Technical analysis points to the potential for a retest of the 1.3700–1.3750 area, as a bullish engulfing pattern has formed on the daily chart. At the same time, a sustained move below 1.3600 could signal a resumption of the downtrend, with scope for a revisit of recent lows.
The following events may affect USD/CAD in the coming sessions:
- today at 16:30 (GMT+2): Canada services PMI;
- today at 17:30 (GMT+2): US crude oil inventories;
- tomorrow at 19:25 (GMT+2): speech by Bank of Canada Governor Tiff Macklem.
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Spot Bitcoin ETFs recorded a fresh outflow on Tuesday, pushing assets under management below the $100 billion threshold for the first time since April 2025. The decline followed $272 million in net redemptions, according to data from SoSoValue. The move comes as Bitcoin slid toward the mid-$70,000s amid a broad crypto market pullback, with the overall market capitalization retreating to about $2.64 trillion from roughly $3.11 trillion in the previous week, per CoinGecko. The setback underscores ongoing volatility in securitized exposure to the leading crypto asset, even as investors rotate into non-Bitcoin assets and altcoins show pockets of life.
The week’s sell-off was not uniform across the market. While BTC ETFs faced renewed outflows, funds tracking altcoins registered small inflows, signaling a divergence in investor appetite between securitized exposure to Bitcoin and exposure to other crypto assets. The broader backdrop remains one of macro- and risk-off pressure, with traders weighing the implications of ETF mechanics, regulatory signals, and shifting liquidity in a market still trying to find a steadier footing after a rapid rally and pullback.
Key takeaways
- Spot BTC ETF assets under management fell below $100 billion for the first time since April 2025, following $272 million in outflows.
- The broader crypto market cap dropped to $2.64 trillion from $3.11 trillion over the previous week, reflecting continued volatility.
- Altcoin ETFs saw modest inflows: Ether (CRYPTO: ETH) $14 million, XRP (CRYPTO: XRP) $19.6 million, and Solana (CRYPTO: SOL) $1.2 million.
- Bitcoin trades below the ETF creation cost basis of $84,000, a dynamic that can constrain new ETF share creation and influence flows.
- Analysts emphasize that the ETF sell-off is unlikely to trigger a broad wave of liquidations, with some expecting a future shift toward direct on-chain trading by institutions.
Tickers mentioned: $BTC, $ETH, $XRP, $SOL
Sentiment: Neutral
Price impact: Negative. The combination of outflows from spot BTC ETFs and a BTC price dip contributed to a weaker near-term sentiment and potential pressure on related products.
Market context: The episode reflects ongoing volatility in ETF-related flows against a backdrop of risk-off trading, with investors differentiating between securitized exposure to Bitcoin and direct or non-BTC crypto exposure. The weekly retreat in market capitalization highlights continued sensitivity to macro cues and liquidity conditions in a market still adapting to higher interest-rate environments and evolving regulatory signals.
Why it matters
The current pattern—spot BTC ETF outflows alongside modest altcoin inflows—offers a nuanced read on institutional engagement with crypto assets. While the ETF structure provides regulated access to Bitcoin, the observed outflows suggest that some investors are rebalancing risk, seeking exposure through non-securitized channels, or waiting for clearer macro signals before increasing holdings in securitized products. The contrast with altcoins indicates that market participants still differentiate between asset classes within the crypto universe, allocating capital to Ethereum, XRP, and Solana when risk appetite allows.
Institutional participants, who historically have been more likely to use securitized products, are increasingly discussed in terms of a potential shift toward on-chain trading and direct asset ownership. That shift could reshape liquidity dynamics and pricing for both spot products and the ETFs that track them. The comments from industry insiders underscore a belief that the next phase of crypto institutional adoption may hinge less on holding securitized exposure and more on engaging with the underlying assets themselves, potentially driving deeper liquidity and new trading venues outside traditional funds.
The price action surrounding BTC—trading under the $74,000 mark while ETF creation remains suppressed by a higher cost basis—adds a layer of complexity for managers of passive crypto portfolios. Even as some investors trim exposure, others may view the current levels as a continuation of a broader re-pricing process that factors in regulatory clarity, macro liquidity, and the evolving competitive landscape among crypto investment vehicles.
Thomas Restout, CEO of institutional liquidity provider B2C2, offered a parallel view, noting that institutional ETF investors have shown resilience and patience even as flows wobble. He suggested that a substantial portion of assets could remain within ETFs, but the market is approaching a potential pivot point where some appetite could shift toward direct crypto trading. “The next level of transformation is institutions actually trading the crypto, rather than just using securitized ETFs,” Restout said recently on a Rulematch Spot On podcast. His comments point to a broader re-evaluation of how institutions allocate in crypto markets, with possible implications for liquidity provisioning and price discovery across the ecosystem.
What to watch next
- Next data release on spot BTC ETF AUM from SoSoValue and any observable shifts in creation or redemption activity.
- BTC price stabilization or further moves toward the $70k–$75k zone and how that interacts with ETF flow dynamics.
- Any regulatory updates or policy signals that could impact ETF structures or on-chain trading incentives.
- Evidence of institutional traders increasing direct exposure to crypto assets beyond securitized products.
Sources & verification
- SoSoValue data on spot Bitcoin ETF assets under management and outflows.
- CoinGecko market-cap data showing weekly changes in the global crypto sector.
- Reported inflows for altcoin ETFs: Ether, XRP, and Solana with metrics provided in the article.
- Nate Geraci’s X post discussing ETF asset retention within spot BTC ETFs.
- Thomas Restout’s comments on the Rulematch Spot On podcast regarding institutional adoption and on-chain trading.
Market reaction and key details
The market continues to grapple with the question of how institutions will allocate capital as crypto products evolve. While securitized exposure to Bitcoin remains a convenient entry point for many investors, outflows in the spot BTC ETF space highlight a cautious stance amid price volatility and a broad sell-off across risk assets. The modest inflows into Ether, XRP, and Solana indicate selective confidence in non-Bitcoin assets, suggesting investors are evaluating diversification opportunities within the crypto universe even as the largest asset experiences pressure.
The former NFT marketplace said it will allocate revenue to the ME ecosystem, including USDC rewards paid out to stakers.
Crypto World
Solana (SOL) Plunges Below $100, Bitcoin (BTC) Recovers From 15-Month Low: Market Watch
Meanwhile, HASH and HYPE have declined the most over the past 24 hours after charting impressive gains lately.
Bitcoin’s adverse price actions as of late worsened yesterday when the asset tumbled to its lowest positions since early November 2024 at $73,000 before recovering by a few grand.
Most altcoins followed suit with enhanced volatility, but some, such as SOL, HYPE, and CC, have been hit harder than others.
BTC’s Latest Rollercoaster
It was just a week ago when the primary cryptocurrency challenged the $90,000 resistance ahead of the first FOMC meeting for the year. After it became official that the Fed won’t cut the rates again, BTC remained sluggish at first but started to decline in the following hours.
The escalating tension in the Middle East was also blamed for another crash that took place on Thursday when bitcoin plunged to $81,000. It bounced off to $84,000 on Friday but tumbled once again on Saturday, this time to under $75,000. Another recovery attempt followed on Monday, only to be rejected at $79,000.
Tuesday brought the latest crash, this time to a 15-month low of $73,000. It has rebounded since then to just over $76,000, but it’s still 3% down on the day. Moreover, it has lost 14% of its value weekly and a whopping 18% monthly.
Its market capitalization has plummeted to $1.525 trillion on CG, while its dominance over the alts has declined to 57.3%.
SOL Below $100
Most larger-cap altcoins have felt the consequences of the violent market crash lately. Ethereum went from over $3,000 to $2,100 in the span of a week, before bouncing to $2,280 as of now. BNB is down to $760, while SOL has plummeted to under $100 after a 7% daily decline.
Even the recent high-flyer HYPE has retraced hard daily. The token is down by 11% to $33. CC and ZEC are also deep in the red, while XMR has gained the most from the larger caps.
The cumulative market cap of all crypto assets has seen more than $70 billion erased in a day and is down to $2.65 trillion on CG.
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PUMP rallied as much as 10% but erased its gains as crypto markets dipped.
Assets in spot Bitcoin (BTC) ETFs slipped below $100 billion on Tuesday following a fresh $272 million in outflows.
According to data from SoSoValue, the move marked the first time spot Bitcoin ETF assets under management have fallen below that level since April 2025, after peaking at about $168 billion in October
The drop came amid a broader crypto market sell-off, with Bitcoin sliding below $74,000 on Tuesday. The global cryptocurrency market capitalization fell from $3.11 trillion to $2.64 trillion over the past week, according to CoinGecko.
Altcoin funds secure modest inflows
The latest outflows from spot Bitcoin ETFs followed a brief rebound in flows on Monday, when the products attracted $562 million in net inflows.
Still, Bitcoin funds resumed losses on Tuesday, pushing year-to-date outflows to almost $1.3 billion, coming in line with ongoing market volatility.
By contrast, ETFs tracking altcoins such as Ether (ETH), XRP (XRP) and Solana (SOL) recorded modest inflows of $14 million, $19.6 million and $1.2 million, respectively.
Is institutional adoption moving beyond ETFs?
The ongoing sell-off in Bitcoin ETFs comes as BTC trades below the ETF creation cost basis of $84,000, suggesting new ETF shares are being issued at a loss and placing pressure on fund flows.
Market observers say that the slump is unlikely to trigger further mass sell-offs in ETFs.
“My guess is vast majority of assets in spot BTC ETFs stay put regardless,” ETF analyst Nate Geraci wrote on X on Monday.
Thomas Restout, CEO of institutional liquidity provider B2C2, echoed the sentiment, noting that institutional ETF investors are generally resilient. Still, he hinted that a shift toward onchain trading may be underway.
Related: VistaShares launches Treasury ETF with options-based Bitcoin exposure
“The benefit of institutions coming in and buying ETFs is they’re far more resilient. They will sit on their views and positions for longer,” Restout said in a Rulematch Spot On podcast on Monday.
“I think the next level of transformation is institutions actually trading crypto, rather than just using securitized ETFs. We’re expecting the next wave of institutions to be the ones trading the underlying assets directly,” he noted.
Magazine: DAT panic dumps 73,000 ETH, India’s crypto tax stays: Asia Express
TLDR:
- Colosseum’s AI Agent Hackathon runs February 2-12, 2026, offering over $100,000 in USDC prizes to winners.
- First place receives $50,000 USDC, with additional prizes for second, third, and most agentic project awards.
- Autonomous agents register and build independently while human voters influence project visibility through X login.
- Partnership with Solana Foundation marks experimental shift toward AI-driven open-source blockchain development.
Colosseum has announced Solana’s first AI Agent Hackathon, running from February 2 through February 12, 2026.
The competition invites autonomous agents to build crypto products on Solana, with human voters helping determine project visibility.
Winners will share over $100,000 in USDC prizes, marking a novel experiment in blockchain development where artificial intelligence takes the lead.
Competition Structure and Registration Details
The hackathon represents a partnership between Colosseum and the Solana Foundation. Agents can register through the official platform at colosseum.com/agent-hackathon.
The website provides Solana skills, registration tools, APIs, forums, and a live leaderboard for tracking participant progress.
OpenClaw Agents have immediate access to the competition framework. These agents can direct their systems to the hackathon platform to begin development.
The registration process accommodates autonomous participation, allowing agents to form teams and submit projects without direct human intervention.
Human participants play a crucial role in the voting mechanism. Voters must sign in with their X accounts to upvote preferred projects.
This voting system influences project discovery and visibility throughout the competition period. Additionally, humans can claim agents to receive potential prizes.
Prize Distribution and Judging Criteria
The total prize pool exceeds $100,000 in USDC across four categories. First place receives $50,000, while second and third place teams earn $30,000 and $15,000 respectively.
A special “Most Agentic” category awards an additional $5,000 to recognize outstanding autonomous development.
Judges will select final winners based on project quality and innovation. Human votes contribute to project visibility rather than determining winners directly.
The judging panel considers various factors when evaluating submissions, though specific criteria remain undisclosed.
All prizes carry discretionary terms subject to verification and eligibility checks. Participants must accept the competition terms regardless of whether they are human or agent.
Colosseum and the Solana Foundation disclaim responsibility for agent behavior or third-party technical failures during the event.
Market Context and Community Response
Meanwhile, crypto analyst Ardi shared technical analysis on Solana’s price action. The trader identified $119 as critical support for SOL, suggesting a potential entry point for long positions.
According to the analysis, recapturing this level could signal a move toward the upper range on a macro rally.
Ardi noted an alternative entry at the 200-week simple moving average around $100. This level represents macro support established in April 2025.
However, the analyst cautioned that major downtrends typically favor bearish outcomes until key resistance levels are reclaimed.
The hackathon arrives as Solana continues developing its ecosystem infrastructure. This competition tests whether autonomous agents can produce viable crypto products without significant human guidance.
Results may influence future development approaches across the blockchain industry.
Bitwise Asset Management is reportedly acquiring institutional staking provider Chorus One, extending its push into cryptocurrency yield services.
The acquisition adds a major staking operation to the crypto asset manager’s platform as demand for onchain yield products increases among both retail and institutional investors.
Chorus One provides staking services for decentralized networks and currently has $2.2 billion in assets staked, according to its website.
The financial terms of the deal were not disclosed, Bloomberg reported on Wednesday, citing statements from both companies.
Cointelegraph reached out to Bitwise and Chorus One for comment, but had not received a response by publication.
Related: 21Shares launches first Jito staked Solana ETP in Europe
Ethereum staking demand surges as validator queue swells
Ethereum validator queue data shows a surge in demand to stake Ether (ETH). The entry queue has swelled to more than 4 million ETH, translating into a wait time of over 70 days.
Almost 37 million ETH, or just over 30% of total supply, is now staked, with close to 1 million active validators securing the network. This suggests that more holders are choosing to lock up ETH despite long delays.
The rising interest in staking has pushed other major asset managers to integrate yield into regulated crypto products. Morgan Stanley filed to launch a spot Ether exchange-traded fund (ETF) that would stake part of its holdings to generate passive returns. Grayscale is also preparing to distribute staking rewards from its Ethereum Trust ETF, the first payout tied to onchain staking by a US-listed spot crypto exchange-traded product.
Related: Crypto VC activity hits $4.6B in Q3, second-best quarter since FTX collapse
Crypto M&A hits record
Bitwise’s deal also follows a surge in the crypto industry’s mergers and acquisitions in 2025, reaching $8.6 billion across a record 133 transactions by November, surpassing the combined total of the previous four years.
Coinbase led the wave, closing six acquisitions, including the $2.9 billion purchase of crypto derivatives exchange Deribit.
Magazine: Bitget’s Gracy Chen is looking for ‘entrepreneurs, not wantrepreneurs’
Nevada regulators have taken fresh legal action against crypto exchange Coinbase, seeking to halt the company’s prediction market offerings in the state as tensions grow between federal derivatives oversight and state gambling laws.
Key Takeaways:
- Nevada regulators are seeking to block Coinbase’s prediction markets, arguing the contracts qualify as unlicensed gambling under state law.
- The dispute centers on whether event-based contracts fall under federal CFTC oversight or state gaming authority.
- The case is part of a wider legal clash as multiple US states challenge prediction market platforms.
The Nevada Gaming Control Board on Monday filed a civil enforcement complaint against Coinbase Financial Markets in Carson City, requesting a permanent injunction, declaratory relief, and an emergency temporary restraining order.
Regulators argue the platform is offering event-based contracts tied to sports and elections without the state gaming licenses required under Nevada law.
Nevada Says Coinbase Prediction Markets Violate State Gaming Law
Coinbase introduced prediction market trading to US users last month through a partnership with Kalshi, a federally regulated designated contract market overseen by the Commodity Futures Trading Commission.
Nevada officials, however, say contracts linked to sporting outcomes and elections constitute wagering activity and therefore fall under state gaming rules rather than federal derivatives jurisdiction.
The board also alleges the Coinbase app permits users aged 18 and older to trade event contracts, below Nevada’s legal gambling age of 21.
In court filings, regulators said the company’s continued operation creates “serious, ongoing, irreparable harm” and gives Coinbase an unfair advantage over licensed sportsbooks that must meet strict compliance, tax, and physical-location requirements.
The dispute arrives amid a broader legal clash between Coinbase and several US states.
The exchange recently filed federal lawsuits against gaming regulators in Connecticut, Michigan, and Illinois, arguing that prediction markets fall exclusively under CFTC authority and that state enforcement efforts unlawfully restrict innovation.
Those states had issued cease-and-desist notices accusing prediction platforms of unlicensed sports wagering.
Nevada officials maintain their responsibility is to protect consumers and preserve the integrity of the state’s gaming industry.
Board chairman Mike Dreitzer said enforcement action was necessary to uphold those obligations as new digital betting-style products enter the market.
Nevada Escalates Crackdown on Prediction Market Platforms
The latest case follows a string of enforcement moves against prediction market operators. Nevada previously pursued action against Kalshi over sports-related contracts, triggering a legal battle that remains under appeal.
More recently, a state court granted a temporary restraining order blocking Polymarket from offering event contracts to Nevada residents for two weeks, signaling judicial willingness to side with state regulators despite federal derivatives oversight claims.
Last month, Kalshi opened a new office in Washington, D.C., as it ramps up efforts to shape federal and state policy amid growing scrutiny of its products across the United States.
The company also hired veteran political strategist John Bivona as its first head of federal government relations.
Meanwhile, a new legislation to limit the interactions between government officials and the prediction markets is being supported by more than 30 Democrats in the US House of Representatives, including former Speaker Nancy Pelosi.
The lure behind new restrictions is a controversial Polymarket bet, which started as a bet of $32,000 but eventually became more than $400,000 shortly before the unexpected detention of Venezuelan President Nicolás Maduro.
The post Nevada Moves to Block Coinbase Prediction Markets After Polymarket Ban appeared first on Cryptonews.
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