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builders shrug off ETH drop as network activity holds steady

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(ETH TVL denominated in ETH/ DefiLlama)

Ether’s weekend slide at the turn of February revived a familiar question: is the Ethereum network falling behind newer competitors or struggling to justify its valuation?

As ETH plunged by as much as 17% alongside most of crypto, skeptics wondered whether this was a warning sign that the protocol’s dominance may be eroding.

Yet inside Ethereum’s ecosystem, the sell-off has not been met with the same alarm. Developers and long-term players largely framed the move as a market-driven correction rather than a verdict on Ethereum’s health.

By several measures, network activity remains near peak levels. “Ethereum TVL is actually near all-time highs when denominated in ETH,” said Sam Ruskin, an analyst at Messari, suggesting capital has not meaningfully fled the ecosystem even as the token’s dollar price slipped.

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(ETH TVL denominated in ETH/ DefiLlama)

(ETH TVL denominated in ETH/ DefiLlama)

Other indicators point in the same direction. The entry queue for ETH staking — the wait validators face to help secure the network — has stretched to roughly 70 days, a signal that demand to commit capital to Ethereum, especially among large institutions, remains strong despite short-term volatility.

That resilience is also showing up across decentralized finance, where activity has held up even as prices have soured. Traders and users are still engaging with onchain applications in search of yield, a sign that usage has not evaporated alongside sentiment.

“We’re still growing and getting more users and revenue, but token price is lagging,” said Mike Silagadze, the CEO of ether.fi, one of the largest restaking networks, to CoinDesk over Telegram. “We’re just focusing on the long run.”

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Some market observers argue that the price move itself is being overinterpreted. Marcin Kazmierczak, CEO of blockchain data firm RedStone, said ether’s decline looks more like market “noise” than a signal of weakening fundamentals, particularly as retail trading activity fades. What matters more, he said, is a level of institutional conviction around onchain finance that he hasn’t seen before.

“The absence of retail excitement is actually refreshing – the next cycle will be driven by real adoption, not memes, and it allows builders to focus on creating long-term value,” Kazmierczak added.

That disconnect between price action and progress on the ground is a familiar pattern in Ethereum’s history. Periods of market turbulence have often coincided with some of the network’s most consequential development milestones, as builders continue to ship regardless of short-term sentiment.

“As we have seen with the Merge, the market is pretty bad at pricing in the fundamental technical realities of chains,” said Marius Van Der Wijden, a core developer at the Ethereum Foundation, noting that major technical changes are often only fully reflected in prices well after they are completed.

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For some analysts, the divergence between price and onchain data reflects broader market dynamics rather than Ethereum-specific weakness. Ruskin said the network “looks as healthy as it ever did,” arguing that ETH’s recent decline is more closely tied to bitcoin’s movements or wider market sentiment than to any deterioration in Ethereum’s fundamentals.

Read more: DeFi’s quiet strength: Value locked on platforms holds as market selloff tests traders

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Crypto World

Bitwise Rolls Out Model Portfolio Solutions for Digital Assets on Major Advisory Platforms

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21Shares Introduces JitoSOL ETP to Offer Staking Rewards via Solana

TLDR:

  • Bitwise introduces seven model portfolios across billion-dollar advisory platforms for crypto exposure.
  • Model portfolios include Core options for broad exposure and Thematic models for specific crypto sectors.
  • Portfolios offer crypto assets, crypto equities, and blended approaches with systematic rebalancing.
  • Risk-managed options rotate between crypto futures and Treasuries based on momentum trading signals.

 

Bitwise has introduced Model Portfolio Solutions for Digital Assets, making them available across multiple billion-dollar advisory platforms.

The new offering provides financial advisors with seven professionally managed model portfolios designed to help clients access diversified cryptocurrency exposure through exchange-traded funds.

This development addresses a significant gap in the $645 billion model portfolio market, where advisors previously lacked structured options for navigating the expanding digital asset sector.

Comprehensive Portfolio Framework Addresses Growing Advisor Demand

The model portfolio market represents one of the primary channels through which financial advisors allocate assets for their clients. “Model portfolios are one of the most important ways financial advisors allocate to different assets,” according to the announcement.

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Despite this market’s substantial size and influence on ETF flows, advisors have faced limited professionally managed solutions for cryptocurrency investments.

The company noted that “advisors have not had many professionally managed options to help them navigate the fast-growing crypto space.”

Bitwise’s new framework changes this dynamic by offering advisors a systematic approach to building crypto allocations.

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The seven-model offering includes two distinct categories. Core portfolios deliver broad exposure to the cryptocurrency ecosystem through various investment vehicles. Meanwhile, thematic models concentrate on specific areas such as stablecoins and tokenization.

This structure allows advisors to match portfolio construction with individual client objectives and risk preferences.

As advisors weigh a growing number of cryptocurrency ETF options, “these models are designed to make it easy to build a crypto sleeve that’s tailored to their clients’ goals and preferences.” Bitwise maintains oversight through systematic monitoring and rebalancing procedures to control portfolio drift.

The portfolio options encompass different investment approaches to accommodate varying advisor and client needs. Some models focus exclusively on cryptocurrency assets, while others emphasize crypto-related equities.

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Additional portfolios combine both asset types, providing blended exposure across the digital asset investment landscape.

Strategic Options Span Asset Classes and Investment Themes

The Bitwise Crypto Asset Portfolio employs market-cap weighting to deliver diversified cryptocurrency market exposure using spot crypto asset ETPs exclusively.

The offering aims to “offer diversified exposure to the crypto market using only spot crypto asset ETPs, giving investors direct exposure to the underlying crypto assets.”

Conversely, the Bitwise Crypto Equities Portfolio targets investors preferring exposure through publicly traded companies with traditional financial metrics.

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The portfolio is “designed for investors who prefer owning real-world companies with revenues and earnings, as opposed to taking direct positions in the underlying spot crypto assets.”

The Bitwise Select Crypto Market Portfolio functions as the foundational offering, providing diversified exposure to major cryptocurrency assets and related equities while applying institutional risk screens.

For broader market coverage, the Bitwise Total Crypto Market Portfolio uses market-cap weighting across crypto investments and crypto-focused equity positions.

Thematic portfolios address specific cryptocurrency sectors and investment strategies. The Bitwise Select Stablecoin and Tokenization Portfolio targets “crypto assets and crypto-linked equities leading the growth of the stablecoin and tokenization ecosystems.”

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The Bitwise Beyond Bitcoin Crypto Asset Portfolio serves investors seeking exposure to alternative cryptocurrencies.

It is “designed for investors who either already have significant bitcoin exposure or are looking to invest in crypto assets focused on ‘real-world use cases’ like stablecoins, tokenization, and decentralized finance.”

The models leverage “Bitwise’s eight-year track record in helping institutions and professional investors access crypto.”

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Crypto Dev’s Platform Allows AI Agents To Hire Humans For Physical Tasks

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Crypto Dev's Platform Allows AI Agents To Hire Humans For Physical Tasks

In what some may see as a unique and slightly dystopian use of artificial intelligence, a crypto developer has launched a website that enables AI agents to rent humans to do tasks in “meatspace.” 

In a post via X on Monday, user Alex, or @AlexanderTw33ts, an engineer at decentralized finance platform Uma Protocol and layer-2 bridging solution Across Protocol, shared a video of his website “rentahuman.ai” in action. 

The site lets humans set an hourly rate and enables AI agents to hire them for tasks ranging from running simple errands to participating in business meetings, taking photos, signing documents, and making real-world purchases.  

Alex said some of the humans-for-hire already include an OnlyFans model and a CEO of an AI startup, adding: 

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“If your AI agent wants to rent a person to do an IRL task for them its as simple as one MCP call.”

Source: AlexanderTw33ts

The website states that “robots need your body” as they “can’t touch grass,” while labeling itself as “the meatspace layer for AI.” 

On the main page, it shows a selection of available humans, a button to “become rentable,” and a metric for platform growth. 

So far, the site claims almost 26,000 people have signed up; however, that number may include multiple accounts owned by the same person or people impersonating others, which Alex said they have been working to address.

Alex has also confirmed that there will be no cryptocurrency associated with this platform, after sharing more details about the project during an interview on Tuesday on the Crosschain podcast from Across Protocol. 

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“There’s no token, I’m just not into that. That would just be way too stressful, and also again I don’t want a bunch of people to lose their money,” he said.  

Related: Trustless AI agent standard could hit Ethereum mainnet on Thursday

Adding another layer of obscurity to the project, Alex said the website was built through “vibe coding” with an “army” of Claude-based AI agents.

This was achieved with a Ralph loop, a technique of running AI coding agents in a loop until they complete a task.

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“I think we are out of the trough of disillusionment [toward AI capabilities] and now people are realizing we can ship real code with this, we can just write prompts now, we can have Ralph loops creating websites while we sleep,” he said.  

“And actually, a Ralph loop created this [website], I have a custom Ralph loop that I run,” he added.