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Bitcoin “capitulation basket” hits longest streak since FTX, says Glassnode

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Crypto Breaking News

Bitcoin’s on-chain “capitulation” phase has stretched to its longest stretch since the aftermath of the FTX collapse, according to Glassnode. In a Monday update, the firm pointed to its composite cycle-tracking framework showing that a large share of Bitcoin price-related indicators has remained in its most defensive, low-conviction stage through 2026.

The key nuance is that, while conditions resemble late-cycle stress, Glassnode’s heatmap readings have not yet fully matched the deepest “floor” signatures that appeared during earlier bear-market bottoms. At the same time, Glassnode’s latest Market Pulse report suggested that on-chain activity has strengthened—an important counterpoint for investors weighing whether capitulation is finally giving way to stabilization.

Key takeaways

  • Glassnode’s “Bitcoin Cycle Position Heatmap” shows 45 tracked BTC price metrics have been in the longest capitulation phase since late 2022’s FTX fallout.
  • Rafael Schultze-Kraft said the current period sits in its coldest stretch since FTX, but still not at the unanimous deep-blue level that historically marked cycle floors.
  • The heatmap uses a basket of 45 indicators, heavily incorporating investor profitability across short-term (STH) and long-term (LTH) holders.
  • Glassnode reported stronger network engagement, including daily active addresses and entity-adjusted transfer volumes moving above upper statistical bands.

Heatmap extends capitulation longer than past cycles

Glassnode’s “Bitcoin Cycle Position Heatmap,” created by the platform co-founder Rafael Schultze-Kraft, aggregates data from 45 different Bitcoin price and market-health indicators. In the heatmap, blue shading is associated with capitulation conditions, while red is used to highlight the euphoria typical of late-cycle momentum toward peaks.

The tool flipped from a more euphoric configuration after November 2021 into a majority-blue dominance throughout 2022. That shift coincided with the collapse of FTX, which occurred in late 2022 and aligned with analysts pointing to Bitcoin’s bear-market bottom around $15,600, according to earlier coverage referenced from Cointelegraph.

Schultze-Kraft’s latest read of the heatmap emphasizes both duration and depth. He said the current stage is “its coldest stretch since FTX” and is late in the bear market cycle, but remains “not yet the unanimous deep blue” that had historically indicated a more definitive floor.

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For traders and long-term investors, this matters because cycle-position models are often less about predicting a specific day and more about gauging whether market behavior is approaching the “reset” phase that follows widespread distribution and forced risk reduction.

Why profitability and holder behavior shape the signal

Beyond conventional price gauges like market cap, the heatmap places significant weight on the profitability of Bitcoin’s investor base. It divides participants into short-term holders (STH) and long-term holders (LTH), reflecting that these cohorts typically react differently during sell-offs and recoveries.

Schultze-Kraft also highlighted an additional complication: some indicators change character as the composition of the investor base ages. One example is dormancy, measured by how many days a unit of BTC spent idle before being moved on-chain. Because dormancy tends to increase as the chain ages, the dormancy signal can differ between cycles—meaning the same threshold may not “mean” the same thing across different bear markets.

That kind of calibration is crucial when interpreting heatmap results. A long capitulation stretch can be read two ways: either distribution is still ongoing, or the market has moved into a prolonged sideways grind where participants are not capitulating in the most extreme fashion yet. Glassnode’s framing—that the readings are colder than prior periods but not at maximum floor conditions—leans toward the second interpretation.

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Network activity improves even as capitulation persists

While the cycle heatmap focuses on sentiment and cycle-stage indicators, Glassnode’s Monday Market Pulse report pointed to strengthening on-chain behavior. The firm reported that daily active addresses and entity-adjusted transfer volumes moved above their upper statistical bands, a change it characterized as a “notable increase” in network engagement and economic throughput.

That improvement matters because it suggests a degree of market function is returning even if the broader cycle signal still shows capitulation characteristics. In other words, activity may be shifting from panic-driven flows toward more sustained utilization, which can be an early ingredient of stabilization.

Glassnode also noted that stabilization of capital outflows persisted despite investor reaction to a separate security event: a low-entropy bug exploit in Coldcard hardware wallets. The implication is that even if some participants reacted defensively to the news, the broader on-chain throughput did not collapse further.

Supporting this, CryptoQuant data cited by Cointelegraph compared a rise in on-chain transfers of 1 BTC or less with the pattern seen after the FTX implosion. Specifically, it noted that on July 31 the daily tally reached 39,600 BTC, compared with 39,900 BTC on Nov. 16, 2022. The comparison underlines how transaction behavior can echo prior stress periods, even when the macro timeline differs.

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What to watch next as the signal matures

Glassnode’s heatmap suggests Bitcoin is in the coldest stretch since FTX, but not yet in the “unanimous” conditions that previously aligned with a more decisive bottom. Investors should watch whether the heatmap continues deeper into its most extreme blue regime while on-chain activity remains elevated—especially daily activity and transfer volumes—as those combinations would strengthen the case that capitulation is transitioning into a more durable stabilization phase.

Risk & affiliate notice: Crypto assets are volatile and capital is at risk. This article may contain affiliate links. Read full disclosure

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Bitcoin, broader market fail to keep pace as global equities hit record highs: Crypto Markets Today

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Bitcoin, broader market fail to keep pace as global equities hit record highs: Crypto Markets Today

Bitcoin was little changed, adding 0.16% since midnight UTC to trade near $64,000, even as global equities hit new highs, fueled by optimism over AI and progress toward reopening the Strait of Hormuz, which pushed oil prices lower.

MSCI’s All Country World Index rose 0.4% toward another record close, its Asia Pacific benchmark gained 2.2%, and Australian shares hit a new peak after the S&P 500 and Dow Jones Industrial Average closed at all-time highs Tuesday.

The broader CoinDesk 20 (CD20) is unchanged since midnight, with 11 components rising and nine declining.

The divergence points to crypto-specific weakness. U.S. spot bitcoin ETFs recorded $5.4 billion of net outflows in the first half of the year as capital rotated into AI-linked assets.

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“Institutional and retail interest in crypto as an investment has cooled as AI absorbs a disproportionate share of capital and attention; most sectors, not just crypto, have underperformed AI over the past year,” DWF Labs wrote in a report.

Today’s direction may find a catalyst in U.S. employment figures and ISM services PMI due later.

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Circle shares fall 3% despite earnings beat as stablecoin issuer misses on revenue

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Circle (CRCL) outpaces crypto stocks as stablecoin thesis gains momentum: William Blair

Circle Internet (CRCL) shares fell about 3% in premarket trading Wednesday after an initial jump after the stablecoin issuer reported second-quarter earnings. While the company topped profit expectations, revenue came in slightly below Wall Street forecasts.

Circle posted adjusted earnings of 18 cents a share, beating analysts’ consensus estimate of 16 cents, while revenue and reserve income rose 7% from a year earlier to $701 million, missing expectations of $712 million. Net income from continuing operations reached $48 million, topping analysts’ estimates of $43 million, while adjusted EBITDA climbed 8% to $143 million.

USDC, Circle’s dollar-backed stablecoin, continued to expand. Circulation reached $73.3 billion at the end of June, up 19% from a year earlier, but down from its 2026 peak of nearly $80 billion. Onchain transaction volume surged 151% to $14.8 trillion during the quarter.

“Our quarterly financial results reflect the current rate environment and a crypto market that has slowed,” CEO Jeremy Allaire said in a statement. “But the institutions using USDC today, like BlackRock, BNY and Standard Chartered aren’t piloting, they are expanding.”

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The earnings also offered the clearest update yet on Arc, Circle’s blockchain network scheduled to launch its public mainnet on Sept. 16.

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Michigan House Rep Loses Primary after $2M Support from Crypto PAC

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Michigan House Rep Loses Primary after $2M Support from Crypto PAC

Michigan State Representative Donavan McKinney won a Democratic primary against incumbent House Representative Shri Thanedar in a race that raised accusations of payback by the cryptocurrency industry.

McKinney won the primary for Michigan’s 13th Congressional District with 51.9% of the vote against Thanedar’s 48.1% as of Wednesday, the New York Times reported. The primary saw a cryptocurrency-backed political action committee (PAC) spending more than $2 million on media in an attempt to re-elect Thanedar, who has voted in favor of many bills favoring the industry while in Congress. 

Election results for Democratic primary in Michigan’s 13th congressional district. Source: The New York Times

McKinney, considered by many to be a progressive challenger to two-term Thanedar, has already received support from the Democratic National Committee and the Democratic Socialists of America on his primary victory. During the campaign, he accused the crypto industry of “paying my opponent back for helping Trump make over $1 billion since taking office,” likely referring to Thanedar’s voting record.

Protect Progress, the super PAC responsible for funding the ads supporting Thanedar and opposing McKinney, is affiliated with Fairshake, a group backed primarily by crypto companies Coinbase and Ripple. After spending more than $170 million in the 2024 US election cycle on similar races involving pro- and anti-crypto candidates, Fairshake and its affiliates have poured additional millions of dollars into media for politicians in this year’s primaries in several US states ahead of the November general election.

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Related: Nigel Farage to resign from UK Parliament amid crypto “gift” scandal, will stand in by-election

In addition to voting for bills like the GENIUS Act and CLARITY Act in the House of Representatives, Thanedar also reportedly lost more than $600,000 in the second quarter of 2026 after investing $3.7 million of campaign funds into crypto companies.

”Washington has spent too long serving billionaires and corporate interests,” said McKinney in a Wednesday X post. ”I will always only serve the people I represent.”

McKinney will face off against Republican candidate Taras Nykoriak in the November election. Cointelegraph sought a comment from McKinney’s campaign on Wednesday but did not receive an immediate response.

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PAC-supported candidate wins Washington primary

In addition to Protect Progress’ efforts in Michigan, the Fairshake affiliate Defend American Jobs spent more than $65,000 on media to support Republican Amanda McKinney (no relation to the Michigan candidate) in Washington’s 4th congressional district. McKinney will face off against Democrat John Duresky in November, with both candidates securing more than 30% of the vote in Tuesday’s primary to advance to the general election.

Magazine: Here’s why the CLARITY Act’s ethics deal may be so hard to reach

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World Chain to launch streamed EIP-7928 block access lists

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World Chain to launch streamed EIP-7928 block access lists
  • World Chain launches streamed EIP-7928 on mainnet Aug. 17.
  • New feature enables parallel block verification for validators.
  • Upgrade targets higher throughput without more hardware.

World Chain said it will become the first production layer-2 blockchain to deploy streamed EIP-7928 block access lists, introducing the feature on its mainnet from Aug. 17 in a move aimed at improving transaction throughput without increasing validator hardware requirements.

The network said it will stream full block access lists inside every flashblock, allowing validators to begin verifying transactions while blocks are still being assembled.

The implementation is designed to address one of the blockchain industry’s key scaling challenges—boosting transaction capacity without compromising decentralization by forcing validators to use increasingly powerful hardware.

According to the company, the rollout marks the first production implementation of streamed EIP-7928 block access lists and contributes to Ethereum’s broader scaling roadmap.

Parallel verification targets higher throughput

On most blockchain networks, validators verify blocks by re-executing every transaction sequentially before confirming a block’s validity.

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World Chain said full block access lists change that process by recording the blockchain state that each transaction reads and writes, enabling independent transactions to be verified simultaneously across multiple CPU cores.

The company said its implementation extends the EIP-7928 specification by streaming access list data every 200 milliseconds through its flashblock architecture.

Instead of waiting for an entire block to be completed, validators can begin verifying transactions immediately as the block is built.

World Chain said this approach reduces validation latency while distributing verification work throughout the block-building process.

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The network said the technology allows it to target throughput of up to one gigagas per second while keeping validator hardware requirements effectively unchanged.

Deployment avoids hard fork requirement

Unlike Ethereum’s planned implementation of EIP-7928, which is expected to arrive as part of the future Glamsterdam upgrade, World Chain said it is deploying the feature through a runtime flag rather than a hard fork.

This approach allows client operators to upgrade software ahead of the Aug. 17 mainnet rollout without requiring a coordinated network-wide upgrade.

The company said internal benchmarking on World Chain test networks showed validation latency remained effectively stable even as throughput increased substantially, reaching up to one gigagas per second using standard cloud infrastructure.

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According to the results, higher transaction throughput can be achieved without a corresponding increase in the computing resources required for independent chain verification.

Focus on scalability and decentralization

World Chain said the rollout is intended to demonstrate a practical approach to improving blockchain scalability while preserving accessibility for independent validators, which it described as an important requirement for maintaining decentralized networks.

The layer-2 network is built using the OP Stack, secured by Ethereum, and forms part of the Superchain ecosystem.

It is integrated with the World protocol and is designed to support applications including stablecoin payments, international remittances, commerce and other real-world use cases.

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The network also incorporates World ID’s proof-of-human technology and can be accessed through compatible wallets, including World App.

 

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Michigan Senate Race’s Winners and Losers: AIPAC, CAIR, Whitmer

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Michigan Senate Race's Winners and Losers: AIPAC, CAIR, Whitmer

Given El-Sayed’s narrow win, that push looks even more impactful, allowing the country’s largest Muslim civil rights groups to more firmly showcase its power in Michigan, as it finds itself targeted on multiple fronts in some red states. 

LOSERS: Establishment Democrats

Stevens was the undisputed choice of the Democratic Establishment. She was a swing state Democrat who previously won on the same ballot as Trump. She had been through the vetting, could raise money, and seemed a practical choice to hold the seat of retiring Democratic Sen. Gary Peters. 

But Washington insiders’ efforts to help Stevens actually worked against her in a year when Democratic voters were more aligned with El-Sayed’s contempt for the Establishment. That anger found a vessel in El-Sayed and a target in Stevens. Even though Democratic leaders didn’t get their way, that doesn’t mean they’re giving up on Michigan. Quickly after El-Sayed’s primary victory became clear, Senate Minority Leader Chuck Schumer and Sen. Kirsten Gillibrand, the Democratic Senatorial Campaign Committee Chair, released a statement of support. “We look forward to working with Abdul and Democrats across Michigan to win this seat in November,” they said.

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How to Talk Like a Human in the AI Era

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How to Talk Like a Human in the AI Era
—J Studios—Getty Images

As AI becomes more prevalent in our personal and professional lives, the more we’ll need a way to stand out. In fact, skills like empathy, influence, and the ability to read the room—things AI cannot yet do with accuracy and facility—are already becoming more valuable. 

We are facing an insidious threat to our interpersonal skills, driven not just by AI’s growing capabilities, but by our own diminishing opportunities to actually practice communicating. The expansion of our digital lives has already caused a roughly 28% drop in the words we speak daily between 2005 and 2019, and leaning on AI shrinks those vital practice moments even further. Ultimately, when we offload too much to AI, we aren’t just taking a convenient shortcut; we are actively causing our fundamental capabilities to atrophy and increasing our communication anxiety because we know that if we are challenged, we might not have the depth of knowledge to respond.

With algorithms drafting our emails and smoothing out our speech, the baseline for communication has never been more flawless—or flat and disconnected. Because so many people are hiding behind this generated perfection, we gain a massive competitive edge when we do the exact opposite.

Communicating authentically, revealing our humanness, increases our value by serving as a real-time signal of trust and genuine effort. Because anyone can now generate flawlessly polished text, unscripted moments containing natural flaws and foibles demonstrate that we’re actually investing our own labor and personal touch into the exchange. 

Striving for a hyper-polished veneer is no longer the winning strategy. Instead, the speakers who resonate most today are those who loosen up and embrace a more idiosyncratic, less perfect expressiveness. This means giving yourself grace when using “filler words” such as “uhm” and “like.” And it means emphasizing your unique perspective. To be sure, putting our unvarnished, authentic selves on display can feel intimidating, but audiences respond well to it, and this approach can allow for meaningful connection and influence. 

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I experienced this firsthand not long ago when I logged on to speak to 800 people at a live virtual event on best practices for classroom teaching of MBA students. I expected a standard Q&A, but upon arriving, I learned the organizers actually needed me to present solo for 30 minutes. Drawing on my knowledge of the material, I spoke completely impromptu. Did I occasionally veer into a non-sequitur or mangle a sentence? Yes. But the aftermath was a flood of emails from attendees praising the session. They were refreshed to have a speaker who wasn’t reciting a script or hiding behind slides. They appreciated my being me while communicating.

I wasn’t simply winging it, however. I was deliberately letting the audience see more of who I really was.

As humans evolve for the AI era, I created the TRUST framework to help my students at Stanford communicate effectively while embracing their authentic imperfections. Here is how you can use it to project your humanity and establish genuine connection.

Truthful foundation

AI struggles to convey authentic emotion and context, but you do it naturally. Ground your messages in your actual lived experiences, offering specific feelings and the emotions that accompany them. Speak your truth. If you are giving a toast at a wedding, don’t reach for generic platitudes; recount a hyper-specific memory chock-full of genuine emotion that only you would have noticed. 

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For instance, during a recent virtual presentation, I didn’t just share teaching theory; I admitted how I had struggled mightily to manage learners of different ability levels, sharing my own insecurity about boring expert students and how it led me to over-monitor their reactions.

Real-time processing 

An AI engine delivers its final, polished output as a completed message. In order to communicate more authentically, you can verbalize what you are thinking in the moment, revealing your internal thought process, and proving to your audience that you are originating content on the spot. Using phrases like “My first inclination is…,” or “When I had a similar question prior,” brings listeners into the all-too-human workings of your mind. 

When responding to a complex chat question regarding non-native speakers during my event, I simply paused and said, “Give me a moment to reflect on this important point.”

Utilize tailored, local evidence

While AI offers generic backing for its conclusions, you can offer the delightfully quirky. Use stories, data, or testimonials that speak exclusively to your unique background to support your logic. If you are pitching a new product, explain how the street signs in your rural Nebraska hometown inspired its visual design. 

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To illustrate the challenges of speaking a non-native language, I shared an embarrassing personal story about my own struggles teaching in Beijing.

Show your unique speaking style

For decades, communication coaches counseled clients to ruthlessly eliminate verbal tics and awkward pauses. In the age of AI, those exact imperfections add something vital: a sense of your humanness. You shouldn’t go overboard with “uhs” and “ums,” but you also shouldn’t strive to expunge them completely. My own tendency is to repeat phrases I have recently heard. 

During my impromptu keynote, I found myself repeating “the reality is…” multiple times. Instead of freezing or over-correcting, I gave myself grace and let my unfiltered self come through.

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Tip off the audience to your perspective

Information without a point of view is just data. When sharing an update, provide commentary through your unique thoughts and historical perspective. If you describe a new process you developed at work, cap it off with a genuine reflection like, “This was one of the most challenging, but fun solutions I’ve seen our team come up with.” 

During my presentation, I shared that I love puzzles, and that I find the task of crafting unique activities for my students to be among the most fun puzzles to solve.

Throughout our education and experience, we have been conditioned to hide behind a veneer of perfection, but now that perfection is only a prompt away, people are incredibly ready to reward us when we let our authentic selves shine. In a landscape crowded with pixel-perfect output, projecting your humanity is the ultimate way to build trust, to connect, and ultimately to enhance your influence and impact.

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Ethereum Proposal Seeks to Cap ETH Staking at 50% of Supply

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A group of Ethereum contributors has proposed EIP-8361 as a way to reduce staking incentives to ensure that no more than 50% of the supply is locked up by validators.

That proposal has triggered a heated debate over whether Ethereum should prioritize lower issuance or maintain staking incentives for network participation and DeFi activity.

EIP-8361 Targets Rising Staking Levels

On August 4, Ethereum developer Jerome de Tychey announced the submission of EIP-8361, titled “Tapered Issuance Burn,” alongside contributors including Pintail, Dapplion, Pa7x1, Ladislaus0x, and Justin Drake.

In a series of posts on X, de Tychey argued that Ethereum’s current staking model has no point where incentives naturally slow down. He also noted that the staking ratio passed one-third of the ETH supply in April 2026 and continues to rise.

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“The incentive to stake never switches off. Where does it stop? It doesn’t,” he wrote.

According to him, the current reward curve could lead to more than 70 million ETH being staked by January 2028, representing more than 55% of supply. He said the validator entry queue is already operating at maximum churn, adding around 1.75 million ETH per month under current conditions.

The proposal would change the situation by burning part of validator rewards as staking participation rises. The burn rate would gradually increase until it reaches 100% when around half of the ETH supply is staked. Under the proposal, staking yield would eventually fall to zero at a 50% staking ratio.

According to de Tychey, the goal is to eliminate the “artificial yield floor” and let the market decide on staking rewards depending on risk. In his view, staking that is too high may lead to security issues since it will push smaller validators out while concentrating ETH among large custodians and staking providers.

The proposal would not change validator duties or execution-layer income. De Tychey said the change requires only one new permanent constant and a consensus-layer adjustment, with Prysm already having a draft implementation of around 300 lines of code.

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Community Reacts

The reaction from Ethereum users and builders has been divided. Lawyer Gabriel Shapiro criticized the proposal, calling it ‘a huge distraction” from efforts that could increase demand for ETH.

Aave founder Stani Kulechov stated that rather than decreasing staking rewards, Ethereum should concentrate on privacy, scaling, security, stablecoins, decentralized finance, and real-world assets. Ether.fi’s Mike Silagadze, on his part, opposed the proposal on the basis that lowering rewards could hurt solo stakers and reduce activity across DeFi applications that rely on staking-based strategies.

A CryptoQuant report from July pointed to record staking levels, with around 40 million ETH locked by validators. The firm noted that long-term holders were continuing to stake ETH even as market sentiment remained weak.

Supporters of EIP-8361 argue that reducing issuance could protect ETH holders from dilution and prevent liquid tokens from becoming the dominant form of ETH exposure. One of them, MilliΞ wrote that if everyone stakes, the effective yield approaches zero because everyone owns the same share of supply.

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The post Ethereum Proposal Seeks to Cap ETH Staking at 50% of Supply appeared first on CryptoPotato.

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Nomura’s Laser Digital Backs ZIGChain’s Emerging-Market Private Credit Push

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Nomura’s Laser Digital Backs ZIGChain’s Emerging-Market Private Credit Push


Laser Digital, the digital assets arm of Japan’s Nomura Group, has taken a stake in ZIGChain’s ZIG token and agreed to structure and oversee risk on a pipeline of onchain private credit products built by ZIG Markets, the Layer 1’s product and access layer. The arrangement puts a Nomura subsidiary… Read the full story at The Defiant

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Pirate Nation Studio Proof of Play Shuts Down, Open-Sources Code and Art

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Pirate Nation Studio Proof of Play Shuts Down, Open-Sources Code and Art


Proof of Play, the studio behind the fully onchain game Pirate Nation, said on Tuesday that it is ceasing operations, telling players it "couldn't build a product and sustainable business that proved out this thesis at scale." The thesis, the studio said, was that "games using blockchain tech had… Read the full story at The Defiant

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RippleX Is Bringing Back Two Features That Had Critical Security Flaws: Will Validators Trust Rewrite?

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xrp logo

In the latest XRP news, RippleX expects to ship xrpld 3.3.0 the week of August 1, 2026, packaging five amendments for validator consideration, including rewritten versions of Batch and Permission Delegation, both of which were blocked before mainnet activation after security researchers discovered separate critical authorization flaws in their original implementations.

No funds were ever lost. The question now is whether the ecosystem extends enough trust for the rewrites to clear the 80% validator threshold.

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The original Batch amendment contained a signature-validation bug that allowed an attacker to execute inner transactions from arbitrary victim accounts without ever holding their private keys.

According to the official XRPL vulnerability disclosure, researcher Pranamya Keshkamat and Cantina AI’s autonomous audit tool Apex identified the flaw on February 19, 2026, while the amendment was still in its voting phase.

UNL validators were advised to vote against it the same evening; an emergency release, rippled 3.1.1, marked both Batch and the related fixBatchInnerSigs amendment as unsupported to prevent any activation path.

The root cause was a loop-exit error in the signer-validation logic: when the code encountered a new account whose signing key matched its own, it declared success and exited without checking the remaining signers, meaning a forged signer entry for any victim account would never be inspected.

The exploit path let an attacker drain a victim account down to its reserve through unauthorized Payment transactions. The replacement, BatchV1_1, redesigns that authorization logic and is now flagged in the 3.3 development registry as supported with a default No vote pending validator approval.

Permission Delegation exposed a different attack surface. A September 2025 disclosure documented how an invalid offline-signed transaction could still charge the delegated account a transaction fee before failing authorization, because the code checked permissions before verifying the signature, and tec-type errors carry a fee charge by design.

A malicious actor could repeatedly submit such transactions with elevated fees to silently bleed a victim account’s XRP balance. The fix reclassifies the relevant error from tec to ter and reorders checks so no fee can be deducted before signature verification.

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The replacement, PermissionDelegationV1_1, carries the same default No designation in the 3.3.0 registry. This pattern of catching bugs before mainnet is consistent with the broader XRPL security maintenance cadence, which has seen multiple hotfix releases address protocol-level issues ahead of activation.

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Three New Amendments Target Institutional Tokenization

The remaining three amendments are new additions aimed at the institutional tokenization market. Confidential MPT uses elliptic-curve cryptography and zero-knowledge proofs for Multi-Purpose Token balances and transfer amounts, keeping them opaque on the public ledger while remaining auditable by designated entities, such as regulators.

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It addresses the most consistent objection from financial institutions evaluating public blockchain infrastructure: that counterparty exposure is visible to everyone.

The feature targets tokenized government bonds, real estate, equities, and private credit, asset classes where confidentiality is a baseline operational requirement, not a preference. The broader XRPL push into this space is already underway, with active infrastructure development for capital markets tokenization on the XRP Ledger.

Sponsored Fees and Reserves allow a bank, issuer, or platform to cover transaction fees and reserve requirements on behalf of its users, removing the requirement for end users to hold XRP before transacting.

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This substantially lowers onboarding friction for institutional deployments, though it also reopens the structural debate: if end-users no longer need XRP to interact with the ledger, demand dynamics shift toward institutional settlement volume rather than retail token utility. That outcome is neither confirmed nor refuted until the amendment activates and institutions actually deploy it.

Dynamic MPT closes the third gap, allowing token issuers to modify specified properties, fees, metadata, and predefined parameters after issuance without migrating to a new token entirely.

Photo: Jazzi Cooper

Jazzi Cooper, RippleX’s head of product, announced the five amendments on X, describing XRPL as having already demonstrated its capacity to support tokenized assets at scale and framing the new features as the infrastructure layer for global transfers, trading, collateralization, and settlement.

Cooper confirmed that all five require validator voting before activation.

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