Key Highlights

• Base network from Coinbase has introduced Base MCP, enabling AI assistants such as ChatGPT and Claude to interface with cryptocurrency wallets.
• Through conversational commands, users can transfer assets, exchange tokens, view account balances and engage with decentralized finance platforms.
• Initial integration includes support for DeFi protocols such as Uniswap, Morpho, Moonwell and Avantis.
• All transactions require explicit user approval — AI assistants never gain access to private wallet keys.
• The x402 agentic payment system, which Base MCP builds upon, has recorded only $1.1 million in transaction volume during the last 30 days.

The Ethereum Layer 2 solution from Coinbase, known as Base, has unveiled Base MCP, an innovative integration that enables artificial intelligence platforms including ChatGPT and Claude to communicate directly with cryptocurrency wallets and decentralized financial applications.

This integration leverages the Model Context Protocol (MCP), an established framework designed to facilitate secure connections between AI systems and external applications.

Through simple conversational requests, users can instruct an AI agent to execute various operations including fund transfers, token swaps, balance inquiries, or transaction history reviews — all without navigating traditional cryptocurrency interfaces.

The initial release supports multiple DeFi protocols operating on Base. These encompass lending services Morpho and Moonwell, decentralized trading platform Uniswap, and derivatives exchange Avantis. Additional supported platforms include Aerodrome, Bankr and Virtuals.

Transaction Execution Process

When users submit requests, the AI assistant formulates a proposed action within the chat interface. Subsequently, the Base wallet appears in a separate window where users can either approve or reject the transaction.

Private keys remain exclusively under user control. Each operation undergoes the identical verification process used for standard Base account transactions. Additionally, asset modifications are previewed through simulation before user confirmation.

Lincoln Murr, who leads AI Product development at Coinbase, emphasized that the Base Account maintains continuity across platforms. He distinguished it from “isolated agentic wallets confined to terminal environments,” noting that trading activity, transaction records, and portfolio information remain synchronized across both the AI agent interface and the Base application.

Base positioned this release as advancing toward AI-integrated internet experiences. The organization expressed confidence that conversational agent interfaces will emerge as a primary channel for users to explore and utilize blockchain-based applications.

Development Phase and Security Considerations

Base MCP also advances the adoption of x402, an agentic AI payment framework introduced by Coinbase in May 2025. Murr characterized MCP as a “convenient wrapper” built upon existing application programming interfaces.

Combined with x402, this technology aims to facilitate small-scale cryptocurrency micropayments executed by AI agents. Nevertheless, x402 remains in nascent stages. Information from x402scan indicates the framework has handled merely $1.1 million in total volume throughout the previous 30 days.

The deployment of AI agents for cryptocurrency transactions has attracted scrutiny. Recent research from Google alongside multiple academic institutions cautioned that AI agents should be regarded as potentially untrusted system elements. Researchers emphasized that agents must maintain clear boundaries between instructions and untrusted information to prevent attackers from embedding malicious commands.

Just days ago, developer infrastructure provider Socket identified malware specifically designed to target cryptocurrency developers. This malicious software embedded concealed instructions intended to compromise AI-powered coding tools.

While Base has not addressed these particular security discoveries directly, the organization confirmed that every Base MCP transaction undergoes its established user verification protocol before any asset movement occurs.

David Hoffman, the Ethereum advocate and Bankless co-founder, disclosed last week that he sold the remaining Ether in his personal holdings. In his own words on X, Hoffman argued that the widely discussed “ETH is Money” thesis has largely run its course, and he doesn’t expect the asset to be re-rated meaningfully higher or lower by the market from here. The sale occurred on May 21, and Hoffman did not disclose the value of the tranche.

Hoffman has long been one of Ethereum’s most vocal supporters, arguing that Ethereum has earned its place in the crypto ecosystem and deserves the market capitalization it currently holds. Yet he cautioned that the window for a dramatic revaluation—either up or down—appears to be narrowing. “ETH is, to some degree, money. But not the maximally successful version that we collectively sought out to achieve,” Hoffman wrote in the post, signaling a nuanced shift in his investment stance while maintaining a bullish outlook on Ethereum’s technology and ecosystem.

“ETH is, to some degree, money. But not the maximally successful version that we collectively sought out to achieve.”

The “ETH is Money” narrative holds that Ethereum, as a decentralized blockchain with monetary properties and a built-in mechanism to resist inflation, could function as a superior store of value relative to fiat. Proponents hoped ETH would eventually command a much higher valuation, especially as the network expanded through Layer 2 solutions and tokenization use cases. In practice, however, the asset’s price history has been more ambiguous than the thesis’s sterner forecasts might have suggested.

All-time price records put Ethereum near $5,000 in August of a previous cycle, with the asset trading around the $2,000 region in recent times. This trajectory—an ascent to new highs followed by a protracted, multi-year rangebound phase—has been a source of debate among investors and builders about ETH’s role as a store of value, a currency for on-chain activity, or a utility token whose value is closely tied to network demand and use cases rather than speculative macro bets.

In his public note, Hoffman described Ethereum as “a giver, not a taker,” emphasizing that the network provides secure blockspace and supports tokenization at cost, while most fees accrue to Layer 2 networks that sit atop Ethereum. “Ethereum takes no markup for anything it does. This is the nature of open source software, and this is the power of Ethereum. Ethereum supplies its full set of incredibly important values to the world… at cost,” Hoffman stated.

Even as he pivots out of a large ETH position, Hoffman remains “massively bullish” on Ethereum’s long-term trajectory, predicting that the network will “do exceptionally well from here on out.” He contends that only a marginal portion of that success will be reflected in the token’s price, underscoring a broader dissonance between network fundamentals and market pricing in the current cycle.

The reaction among Ethereum enthusiasts and observers was mixed. Bankless co-founder Ryan Sean Adams described Hoffman’s move as the “end of an era,” highlighting the emotional and strategic shift for a community that has long treated ETH as a core political and financial asset. Former Ethereum core developer Eric Connor offered a pragmatic take, suggesting Hoffman’s sale isn’t a wholesale indictment of ETH but rather a reflection of its performance relative to broader crypto markets over recent years.

Connor argued that ETH’s lag is less about the protocol’s fundamentals and more about macro dynamics and distribution effects: a large portion of price pressure has come from the rapid creation of new wealth early in Ethereum’s bull run. “Maximalism to a single coin when it comes to portfolio management is pretty silly,” he added, hinting at a broader conversation about diversification within crypto portfolios.

Key takeaways

• Prominent Ethereum advocate David Hoffman disclosed the sale of the remaining ETH in his personal holdings, signaling a strategic repositioning rather than a wholesale rejection of Ethereum’s long-term value.
• Hoffman retains a bullish view on Ethereum’s fundamentals and network development, but says the opportunity for a significant market rerating of ETH appears to have diminished.
• The “ETH is Money” thesis remains contested: ETH’s price peaked near $5,000 in 2021, has since retreated, and currently trades in a multi-year range around $2,000, raising questions about ETH’s ability to function as a monetary store of value.
• Hoffman emphasizes Ethereum’s model of “no markup” and cost-based tokenization, with Layer 2 ecosystems absorbing most on-chain fees, a dynamic shaping perceptions of ETH’s value accrual vs. the fee capture on L2s.
• Community voices welcomed the act as a real-time reminder of portfolio diversification, with some noting that a single-asset thesis may not align with evolved market dynamics or individual risk tolerance.

Contextualizing the move amid ETH’s price narrative

Ethereum’s price journey has framed many debates about the asset’s role in crypto markets. After reaching an all-time high just below $5,000, ETH’s price retraced substantially from that peak. A prolonged period of consolidation, coupled with a burst of activity on Layer 2 networks and increasing interest in tokenization primitives, has kept ETH at the center of a wide range-bound price narrative for years. While some investors had banked on a renewed cycle of appreciation driven by macro funds and institutional demand, others argued that ETH’s on-chain activity, security guarantees, and robust development roadmap would eventually translate into outsized price gains.

Hoffman’s public liquidation and his framing of the “ETH is Money” thesis as largely realized add another data point to the ongoing discussion about what truly drives ETH value. If the market’s re-rating opportunity is indeed limited, observers will look more closely at fundamental drivers—such as Layer 2 throughput, adoption of decentralized finance and tokenized assets, and the ongoing development of Ethereum’s upgrade path—to assess whether ETH can sustain price resilience while continuing to fulfill a broad set of on-chain use cases.

Market outlook: what investors should monitor next

With Hoffman’s move, investors may watch for how ETH’s price responds to a shifting narrative about store of value versus utility. The open-source, at-cost model that Hoffman highlighted could become a focal point for discussions around value accrual in decentralized ecosystems, particularly as Layer 2 networks mature and tokenization use cases expand. As always in crypto, price behavior will reflect a blend of macro liquidity, on-chain activity, and evolving risk appetite among institutions and retail participants.

Looking ahead, readers should keep an eye on several developments: the pace of Layer 2 adoption and fee dynamics, any shifts in institutional interest in Ethereum-based products, and regulatory signals that could influence on-chain activity and tokenization initiatives. If Ethereum can demonstrate sustained growth in throughput and real-world application, it may still realize long-run value that aligns with the network’s vast developer base and user base—even if the market’s immediate re-rating potential feels constrained in the near term.

For now, Hoffman’s stance illustrates a broader theme in crypto markets: conviction can coexist with strategic adjustment. As the ecosystem evolves, investors will be watching not only price action but the health and direction of Ethereum’s driving use cases and the resilience of its decentralized governance and development model.

Key Highlights

• Bermuda has announced a collaboration with Circle, Coinbase, and Stellar to create a completely blockchain-powered national economy
• The island’s monetary authority distributed $100 worth of USDC to citizens in a pilot program testing cryptocurrency for everyday transactions
• Public services will begin accepting digital currency payments, with the motor vehicle department being the first phase
• A national digital currency, the Bermuda Digital Dollar, is under development utilizing Stellar’s blockchain technology
• Legal frameworks governing property rights, contractual agreements, and financial securities are being modernized to accommodate smart contracts and blockchain-based assets

The Caribbean island of Bermuda is advancing an ambitious initiative to transform its economic infrastructure entirely onto blockchain technology. This groundbreaking project involves strategic partnerships with Circle, Coinbase, and Stellar.

In a pioneering trial, the Bermuda Monetary Authority distributed $100 in USDC—Circle’s dollar-pegged stablecoin—to local residents through an airdrop mechanism. Recipients tested the digital currency at a specially organized marketplace where they purchased products, transferred funds peer-to-peer, or exchanged their crypto for traditional cash. Financial service providers including MoneyGram were present to facilitate these conversions.

According to Craig Swan, who leads the Bermuda Monetary Authority, the initiative aimed to simultaneously introduce both merchants and consumers to the digital payment ecosystem. This hands-on trial provided citizens with practical experience using cryptocurrency wallets and conducting blockchain-based transactions in real-world scenarios.

Transition to Digital Government Services

Bermuda’s next phase involves accepting cryptocurrency for government service fees. The Department of Motor Vehicles will serve as the initial testing ground, selected due to its substantial transaction volume since nearly all island residents possess vehicles or driving licenses. Swan indicated that successful implementation will lead to expansion across all government agencies.

Circle has established its Circle Mint platform to support digital treasury operations for government accounts. Meanwhile, Coinbase is contributing technical expertise to facilitate adoption for both institutional entities and individual users.

This strategic vision was initially unveiled at the World Economic Forum gathering in Davos. During that conference, Bermuda officials announced their collaborations with Circle and Coinbase, with the Stellar partnership for the digital currency project being added subsequently.

Introducing the National Digital Currency

Bermuda has formally announced its collaboration with Stellar Development Foundation to create a sovereign digital currency named the Bermuda Digital Dollar. This currency will operate as a stablecoin with full backing from fiat currency reserves maintained in conventional banking institutions.

Premier E. David Burt explained that Bermuda’s continued dependence on outdated payment infrastructure has resulted in excessive transaction fees for residents and hindered economic expansion. The transition to blockchain-based systems is anticipated to significantly lower these costs by eliminating costly intermediary banking processes.

Swan clarified that traditional financial institutions will continue serving essential functions. These banks will maintain the fiat currency reserves backing the digital tokens and provide localized custody solutions.

Legal Framework Modernization

Transitioning an entire national economy to blockchain infrastructure demands comprehensive legal reforms alongside technological implementation. Swan emphasized that contractual law, property ownership regulations, and securities legislation must all be revised to grant legal recognition to smart contracts.

The BMA recently concluded a pilot program where regulatory compliance requirements were encoded directly into smart contract protocols. During this experimental phase, transactions were automatically prevented when collateral reserves fell below required thresholds or when addresses triggered anti-money laundering alerts.

Bermuda is additionally creating an AI-powered payments monitoring system designed to oversee transactions executed by autonomous software agents rather than human operators.

Swan noted that smaller jurisdictions possess inherent advantages in implementing rapid changes. Bermuda’s compact population translates to fewer regulatory hurdles and accelerated deployment schedules compared to larger nations.

An unknown trader’s $1.3 billion sale of shares in BlackRock’s Bitcoin exchange-traded fund on Tuesday coincided with a steep fall in the price of Bitcoin, according to analysts.

A trader sold 29.2 million shares of BlackRock’s iShares Bitcoin Trust ETF (IBIT) at 2:30 p.m. UTC on a “dark pool,” a private trading platform that institutions often use to discreetly make large trades outside of public markets.

The impact of the $1.3 billion trade was immediately felt in the crypto market, with TradingView data showing that Bitcoin (BTC) fell 1.5% from $77,875 to $76,720 in a short 10-minute window after 2:30 p.m. UTC.

Bitcoin then slid further to a 24-hour bottom of $75,600 about 12 hours later, marking a 2.8% fall for the day.

Bitcoin has historically been viewed as an asset that trades outside of the traditional market, but products such as US-based Bitcoin ETFs have removed barriers for institutional investors to trade Bitcoin, and the cryptocurrency has recently traded in high correlation with US markets.

Alex Thorn, head of firmwide research at crypto investment firm Galaxy Digital, said in a post to X that it was the biggest trade he has seen made through a dark pool.

Source: Alex Thorn

Bloomberg ETF analyst Eric Balchunas also shared that the 29.2 million IBIT shares sold at $43.16 and was over 22 times larger than the second-largest IBIT sell order on Tuesday.

Related: Goldman Sachs exits XRP, Solana ETF exposure in Q1 2026 

Bitcoin ETF outflow streak continues

US spot Bitcoin ETFs have now recorded eight straight trading days of net outflows, with a $333.6 million outflow on Tuesday, including a $192.4 million outflow from IBIT.

More than $2 billion has now flowed out from the ETFs since May 14, the last recorded net inflow across all the funds, a sign that institutional sentiment toward Bitcoin has weakened, with investors reducing exposure to Bitcoin ETFs at a rate faster than fresh capital flowing into the market.

Institutional market maker Jane Street reduced its Bitcoin ETF holdings by around 70% in the first quarter, while investment bank Goldman Sachs reduced its Bitcoin ETF position by 10%. 

Magazine: Bitcoin ETFs bleed $1B, Aave’s $71M ETH unfreeze bid delayed

Key Highlights

• HYPE reached an unprecedented peak of approximately $65 on May 26, 2026.
• Bitwise’s BHYP exchange-traded fund accumulated $40 million in assets in slightly more than one week.
• Total ETF capital inflows for HYPE touched $89 million across nine days, averaging approximately $9.2 million daily.
• The platform introduced macro-focused prediction markets covering CPI data and Federal Reserve rate decisions.
• Open interest on Hyperliquid surged to $8.5 billion, positioning it as the world’s third-largest derivatives trading platform.

Hyperliquid’s native HYPE token established a fresh record high approaching $65 on May 26, propelled by robust institutional demand through exchange-traded funds and the platform’s debut of prediction market functionality.

Bitwise’s Chief Executive Officer Hunter Horsley revealed that the BHYP ETF processed $12 million in trading activity within the first two hours of market operations on that date. The investment vehicle now manages $40 million in total assets just over a week following its market debut.

An analyst account from Coin Bureau shared insights on X regarding Bitwise’s aggressive accumulation strategy: “Bitwise bought another 162,367 $HYPE, worth about $10.1M, over the past 2 hours. Based on its official website, Bitwise already held 723,361 HYPE, worth around $40.4M, as of May 21, 2026.” The data illustrates the remarkable speed at which institutional capital has entered this digital asset.

Total capital flows into both Bitwise’s BHYP and 21Shares’s THYP products reached $89 million within a nine-day period — representing one of the most rapid ETF accumulation trajectories observed across cryptocurrency investment vehicles.

Grayscale appears to be building a HYPE position as well, presumably in preparation for its own ETF product launch. Market analyst Havoc forecasted that the forthcoming Grayscale GHYP offering might contribute an additional $8 million to $12 million in daily capital flows, potentially purchasing between 8% and 33% of HYPE’s available supply annually.

Institutional Demand Fuels Continued Rally

HYPE has maintained ongoing price discovery mode since ETF products commenced trading. The digital asset advanced from its previous breakout zone around $59.40 and touched $64.50 before continuing its ascent.

Assuming HYPE maintains support above the $59.40 level, Fibonacci extension analysis suggests potential resistance zones at $76, $89.50, and $101. Derivatives market data revealed combined open interest nearing $2 billion, with funding rates hovering around 0.004%, signaling bullish market positioning.

Cryptocurrency analyst Byzantine General observed that Hyperliquid’s cumulative exchange open interest climbed to $8.5 billion, securing the third position globally after Binance and Bybit. The platform’s market share for open interest achieved 7.2%, establishing a new milestone.

Blockchain data indicated Hyperliquid received more than $1.1 billion in net capital inflows throughout the preceding month.

Platform Debuts Macro Prediction Markets

Coinciding with HYPE’s record price achievement, Hyperliquid unveiled new macroeconomic prediction markets. The initial two offerings concentrate on year-over-year May Consumer Price Index figures and potential Federal Reserve funds rate adjustments at the upcoming June Federal Open Market Committee gathering.

The CPI-focused market registered $8,000 in trading volume with $48,000 in open interest. The Fed rate market recorded $600 in volume alongside $13,200 in open interest. Platform validators additionally greenlit a sports prediction market centered on the Champions League final match.

These new markets complement the previously launched HIP-4 market series, which features a Bitcoin daily price movement market that has generated $578,000 in trading volume and $180,000 in open interest.

The combined assets under management for HYPE ETF products stood at $89 million as of May 26, 2026.

A range of crypto companies have been included in a preliminary list for potential inclusion in the Russell 3000 index, including treasury firms Sharplink and Forward Industries, along with crypto exchange Gemini and crypto services firm Galaxy Digital. 

A preliminary index inclusion list for the Russell 3000 was published by the index’s provider, FTSE Russell, on Friday. The index tracks the 3,000 largest companies in the US and requires a market capitalization of at least $146.4 million.

Sharplink has a market cap of $1.2 billion, and the company’s CEO, Joseph Chalom, said in a statement on Tuesday that it means the firm could be included in the Russell 2000, an index that tracks the largest 2,000 publicly traded US companies.

Inclusion in the indexes is widely viewed as a boon for those added, as many active and passive funds, including exchange-traded funds, typically buy stocks included in the index.

Chalom said that joining the Russell indexes would broaden the company’s shareholder base and strengthen its access to capital markets.

Source: Joseph Chalom

Forward Industries’ chief investment officer, Ryan Navi, said the Solana treasury company is also eligible for the Russell 2000 Index, as its market cap sits at about $350 million.

“We believe index inclusion will expand our shareholder base, improve trading liquidity, and increase visibility among long-term institutional investors,” Navi said.

FTSE Russell will provide further list updates on June 5, June 12 and June 18. The newly reconstituted indexes will take effect after the US market closes on June 26.

Related: Bitcoin price lags bullish US tech stocks: Is there a silver lining?

Ether treasury company Bitmine Immersion Technologies was included in a preliminary list for potential inclusion in the Russell 3000 index. Chairman Tom Lee flagged possible inclusion in the Russell 1000, an index tracking the largest 1,000 US companies, due to Bitmine surpassing the index’s minimum market capitalization threshold of $5.7 billion.

Galaxy Digital’s market cap of $11.55 billion also makes it eligible for the Russell 1000, while Gemini’s estimated $571 million makes it eligible for the Russell 2000.

Being added to the Russell 1000 would place Galaxy and Bitmine alongside major US large-cap equities, including tech giants Nvidia, Microsoft, Apple, and Alphabet, the parent of Google.

Magazine: Polymarket seeks Japan entry, Harvard dumps entire ETH position: Hodler’s Digest, May 17 – 23   

David Hoffman, an Ethereum advocate and the co-founder of the media company Bankless, says he sold the remainder of his Ether (ETH) holdings last week as he believes the “ETH is Money” thesis has largely “played out.”

Hoffman said in an X post on Tuesday that “Ethereum got the ETH price it deserves, and I don’t see ETH being rerated as an asset, higher or lower.”

Hoffman said that Ethereum “has done incredibly well, and deserves the market cap that it has,” but the “window of opportunity for ETH to be ‘rerated’ by the market seems to be closing.”

“ETH is, to some degree, money. But not the maximally successful version that we collectively sought out to achieve.”

The “ETH is Money” thesis believes the token is a superior store of value compared to fiat money, as it is decentralized and has introduced mechanisms to try to combat inflation, or the amount of new tokens being created.

Many Ether backers believed the token could reach the high five-figures, but ETH reached an all-time high of just below $5,000 in August, about equal to its previous bull market peak during the last cycle. It has since dropped by almost 60% from its all-time peak to trade around $2,000.

ETH prices have been largely rangebound for five years. Source: TradingView

Hoffman, a long-time Ethereum bull who has written extensively on investment cases for Ether, announced selling his entire ETH holdings, the value of which he did not disclose, on May 21.

He said that Ethereum is a “giver, not a taker,” providing secure blockspace and tokenization at cost while the blockchain’s layer-2 networks capture most of the fees and benefit.

“Ethereum takes no markup for anything it does. This is the nature of open source software, and this is the power of Ethereum. Ethereum supplies its full set of incredibly important values to the world… at cost.”

Hoffman reiterated that he is “massively bullish” on Ethereum, expecting that the network will do “exceptionally well from here on out,” but only a “marginal amount” of that success will be reflected in its token.

Related: Tom Lee predicts supercycle amid Bitmine’s largest Ethereum buy in 2026

Hoffman’s sale saw mixed reactions from ETH backers, with Bankless co-founder Ryan Sean Adams saying it was the “end of an era.” 

Former Ethereum core developer Eric Connor said he didn’t really blame Hoffman because ETH has “grossly underperformed the general crypto market for many years now.”

He attributed the lag mainly to selling pressure from the large number of millionaires created during its explosive early run-up rather than fundamental protocol shortcomings.

“At the end of the day, maximalism to a single coin when it comes to portfolio management is pretty silly,” he said. 

Magazine: Polymarket seeks Japan entry, Harvard dumps entire ETH position: Hodler’s Digest