Network News

VITALIK BUTERIN SAYS LAYER-2 ROADMAP ‘NO LONGER MAKES SENSE’: Ethereum co-founder Vitalik Buterin said the role of layer-2 networks needs to be reconsidered as the blockchain’s main network continues to scale and transaction costs remain low. In a post on X, Buterin said the original rollup-centric roadmap, which positioned layer-2s as the primary way Ethereum would scale, “no longer makes sense.” That roadmap envisioned layer-2s as secure extensions of Ethereum that would handle most transactions while inheriting Ethereum’s security guarantees, often described as “branded shards” of the network. According to Buterin, two developments have challenged that original vision for layer-2 networks. First, progress among layer 2s toward later stages of decentralization has been slower and more difficult than expected. Second, Ethereum is now scaling directly on layer 1, with fees remaining low and gas limits expected to increase significantly. In his view, because Ethereum itself is scaling, layer-2 networks are no longer required to function as official extensions of Ethereum. He also noted that many layer-2s are “not able or willing” to meet the decentralization and security standards required by the model and that some layer 2s may intentionally choose not to move beyond “stage 1,” including for regulatory reasons. — Margaux Nijkerk Read more.

BITCOIN OPEN-SOURCE ALTERNATIVE: Tether released an open-source operating system for bitcoin mining, pitching it as a way to make running mining infrastructure simpler while reducing reliance on closed, vendor-controlled software. The stablecoin issuer said it rolled out MiningOS (MOS), describing it as a modular, scalable mining operating system designed for anyone from hobbyist miners to large institutions. The stack is intended to remove the “black box” nature of many mining setups, where hardware and monitoring tools are tightly tied to proprietary platforms. “MiningOS changes that — introducing transparency, openness, and collaboration into the core of Bitcoin infrastructure,” Tether said on the project’s website, adding that the system is built with “no lock-in.” According to Tether, MOS uses a self-hosted architecture and communicates with connected devices through an integrated peer-to-peer network, allowing operators to manage mining activity without relying on centralized services. The company said miners can adjust settings through a companion platform depending on the scale of their operation and output requirements. CEO Paolo Ardoino called MOS a “complete operational platform” that can scale from a home setup to an “industrial grade” site spread across multiple geographies. Tether first previewed plans for an open-source mining OS in June, arguing that new miners should be able to compete without having to depend on expensive third-party vendors for software and management tools. — Shaurya Malwa Read more.

ETHEREUM FOUNDATION POST-QUANTUM TEAM: Quantum computing has long been a distant, theoretical threat to blockchain cryptography. But over the past few months, that calculus has shifted. While the Bitcoin community has been debating threats to its protocol for the past year, the Ethereum community seems to be only now taking its first steps. “Quantum computing is moving from theory into engineering,” said Thomas Coratger, who leads the Ethereum Foundation’s (EF) post-quantum (PQ) team. “That changes the timeline, and it means we need to prepare.” Earlier in January, the foundation formally elevated post-quantum security to a strategic priority, creating that dedicated team to drive research, tooling and real-world upgrades to protect the network’s cryptographic foundations. At the same time, major industry participants are building their own defenses: Coinbase announced an independent quantum advisory board staffed with leading cryptographers to guide long-term blockchain security planning, signaling that even custodial infrastructure must prepare for quantum-era risks. And across the ecosystem, Optimism, is one of Ethereum’s largest layer-2 networks, laid out a formal 10-year roadmap to transition its Superchain stack, from wallets to sequencers, toward post-quantum cryptography, committing to phase out vulnerable signatures and ensure continuity across layer-2 networks. Together, these moves mark a noticeable shift: post-quantum security is no longer a fringe topic for the far future, but a live concern shaping development roadmaps, governance discussions and ecosystem coordination across Ethereum and beyond. For the EF, the move toward post-quantum security isn’t about sounding an alarm, it’s about not being caught flat-footed. — Margaux Nijkerk Read more.

NEW LENDING PROTOCOL FOR XRP ASSETS: The Flare blockchain introduced lending and borrowing for XRP-linked assets through an integration with Morpho, a crypto lending protocol that runs across multiple Ethereum compatible chains. The update lets users lend and borrow with FXRP, a version of XRP designed for use on Flare, the team behind the blockchain said. Flare pitched the move as a step toward giving XRP owners more ways to earn yield and use their tokens beyond holding or trading. For years, XRP has had fewer decentralized finance (DeFi) options than tokens built on smart contract networks. Flare has been trying to change that by building tools that let XRP be used in onchain apps while keeping the original XRP on the XRP Ledger. FXRP holders can now deposit their tokens to earn interest, or use FXRP as collateral to borrow other assets such as stablecoins. Flare said these positions can also be combined with other features on the network, including staking and yield products, for users who want more active strategies. Morpho differs from older lending apps that mix many assets into one shared pool. Each lending market is set up with one collateral asset and one borrowed asset, and the rules for that market are set when it is created. This structure is meant to keep problems in one market from spilling into others. — Shaurya Malwa Read more.

In Other News

• The next evolution of asset management will be “wallet-native,” not just digital, according to Franklin Templeton’s head of innovation, Sandy Kaul. Speaking at the Ondo Summit in New York on Tuesday, Kaul said she envisions a future where all financial assets — stocks, bonds, funds, and more — are held and managed through tokenized digital wallets. “The totality of people’s assets is going to be represented in these wallets,” she said. The panel, which included Cynthia Lo Bessette of Fidelity, Kim Hochfeld of State Street and Will Peck of WisdomTree, agreed that tokenization is no longer a theoretical concept. After years of slow progress, infrastructure is now in place, and use cases are expanding beyond early experiments. The panelists cautioned that building utility and trust is now the industry’s biggest challenge. “The idea of bringing an asset and representing it onchain with a token is the easiest part,” said Lo Bessette, head of digital asset management at Fidelity. “The hardest part is building the ecosystem for utility.” Despite recent growth, adoption remains early. Hochfeld, State Street’s global head of digital and cash, said much of the current work is focused on internal and client education. “We’re not yet seeing a rush to the door,” Hochfeld said. “We’ve got to experiment … and see what works.” — Helene Braun Read more.
• TRM Labs, a blockchain analytics startup used by global law enforcement and financial firms, raised $70 million in a new funding round that pushed its valuation to $1 billion. The Series C round, Fortune reports, was led by Blockchain Capital with participation from Goldman Sachs, Citi Ventures, Bessemer, Thoma Bravo and Brevan Howard. The firm, according to data from TheTie, has raised nearly $150 million to date, having seen another $70 million fundraise back in 2023, along with other smaller fundraising rounds That bring the total to $220 million. The firm’s software helps trace cryptocurrency transactions across multiple blockchains, a service increasingly in demand as crypto crime grows more complex.TRM counts several major government agencies, including the IRS and FBI, among its clients, as well as major banks. It was an early mover in tracking not just bitcoin but various other cryptocurrencies, a decision that set it apart from competitors. That edge has become more valuable as criminal networks diversify their use of tokens and platforms. — Francisco Rodrigues Read more.

Regulatory and Policy

• At a White House meeting called to thaw the ice between crypto firms and Wall Street bankers, the crypto insiders — who outnumbered the bankers by a wide margin — came away feeling the banks were dragging their heels on making a deal on crypto market structure legislation. The White House gave them all new marching orders, according to people familiar with the talks: Get to a compromise on new language on stablecoin yields before the month is out. The crypto industry’s top policy priority is still struggling to make headway in the U.S. Senate, and the longer it’s delayed from getting a floor vote in the overall Senate, the less likely it is to happen this year. The gathering — led by President Donald Trump’s crypto adviser Patrick Witt — was largely focused on whether stablecoins should be associated with yield and rewards. Policy experts from the crypto industry and Wall Street banks gathered in the White House’s Diplomatic Reception Room for more than two hours to discuss how to overhaul the stickiest provisions of the bill, the people said. The talks will continue with a narrower group, the people said, and the White House has asked them to come to the table ready to agree on actual changes to the bill’s language. One of the people said that the banking representatives were members of trade associations and may need to get buy-in from their members before they can make a move in the negotiation. — Jesse Hamilton Read more.
• Rui-Siang Lin, the alleged operator of the dark web narcotics marketplace “Incognito Market,” was sentenced to 30 years in U.S. federal prison, according to a statement from the U.S. Attorney’s Office for the Southern District of New York, bringing to a close one of the largest online drug market prosecutions since Silk Road. Lin, a 24-year-old Taiwanese national who used the online alias “Pharaoh,” pleaded guilty in December 2024 to narcotics conspiracy, money laundering and conspiring to sell adulterated and misbranded medication. Prosecutors said the platform processed more than $105 million in illegal drug sales between October 2020 and March 2024, facilitating more than 640,000 transactions and serving hundreds of thousands of buyers worldwide. “Rui-Siang Lin was one of the world’s most prolific drug traffickers, using the internet to sell more than $105 million of illegal drugs throughout this country and across the globe,” U.S. Attorney Jay Clayton said in a statement. “While Lin made millions, his offenses had devastating consequences. He is responsible for at least one tragic death, and he exacerbated the opioid crisis and caused misery for more than 470,000 narcotics users and their families.” — Sam Reynolds Read more.

Calendar

• Feb. 10-12, 2026: Consensus, Hong Kong
• Feb. 17-21, 2026: EthDenver, Denver
• Feb. 23-24, 2026: NearCon, San Francisco
• Mar. 30-Apr. 2, 2026: EthCC, Cannes
• Apr.15-16, 2026: Paris Blockchain Week, Paris
• May 5-7, 2026: Consensus, Miami
• Nov. 3-6, 2026: Devcon, Mumbai
• Nov. 15-17, 2026: Solana Breakpoint, London

Bitcoin briefly dipped below $72,000 on Thursday morning in early Asian trading hours, hitting its lowest level in nearly 16 months. As the selloff deepens, prediction market traders on Polymarket are rapidly repricing their expectations — and the data paints a sobering picture for the short term, even as longer-term optimism persists.

Polymarket’s real-money contracts show a market caught between defending $70,000 as a floor and clinging to $100,000 in annual returns.

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February Outlook: $70K Is the Line in the Sand

Polymarket’s February Bitcoin price contract, with 24 days remaining and nearly $1.78 million in volume on the $70,000 target alone, tells a clear story.

The $70,000 contract surged to 74% probability — up 65% — making it the most heavily traded target for the month. Upside expectations have collapsed: the $85,000 contract plunged 61% to just 29%, while $90,000 sits at 12% and $95,000 at only 7%.

On the downside, the $65,000 contract dropped 13% to 39%, while $60,000 holds at 19%. Probabilities of a crash below $55,000 are in the single digits. The implied range for February is $65,000–$85,000, with $70,000 as the most probable point.

2026 Annual Contract: Still Bullish, but Fraying

The longer-term Polymarket contract shows a more nuanced picture. The $100,000 level has a 55% probability but is down 29%, while $110,000 is at 42% and down 29%. These are significant declines from just weeks ago, when traders were pricing in a continuation of 2025’s rally.

The $65,000 contract for 2026 surged 24% to 83% with over $1 million in volume — the highest on the board — signaling traders are focused on downside protection rather than upside speculation. The upper curve drops steeply: $130,000 at 20%, $140,000 at 15%, and $250,000 near 5%.

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What’s Driving the Selloff

Bitcoin was trading at approximately $73,199 at the time of writing, after briefly dipping below $72,000 earlier Thursday. The token has fallen 16% year-to-date and roughly 40% from its October 2025 all-time high of $126,000.

Multiple factors are converging: rising geopolitical tensions, lingering data gaps from last fall’s record 43-day government shutdown, and a hawkish Federal Reserve chair nomination, strengthening the dollar

The technical damage has been severe. Over $5.4 billion in liquidations have occurred since late January, pushing open interest to a nine-month low. US spot Bitcoin ETFs have bled capital for most of the past three weeks, with outflows of $817 million on January 29, $509 million on January 30, and $272 million on February 3, punctuated by a single $561 million inflow day on February 2. Total net assets across spot Bitcoin ETFs have fallen from over $128 billion in mid-January to $97 billion.

The Crypto Fear and Greed Index has plunged to 12 — deep in “Extreme Fear” and its lowest since November 2025. Gold, meanwhile, has surged past $5,000 per ounce, underscoring a broad rotation into safe havens.

The Bottom Line

Polymarket’s data offers a real-time window into how traders with money on the line are positioned. February expectations center on $65,000–$85,000 with almost no chance of reclaiming $95,000.

The annual contract is more forgiving, with a slim majority still expecting $100,000 sometime in 2026. But even that conviction is weakening. For now, $70,000 is the number everyone is watching.

Ripple integrates Hyperliquid for its prime brokerage solution.

Hyperliquid seems to be the talk of the town lately, and Ripple just announced that its Ripple Prime brokerage platform will support the perp DEX. In other words, the firm’s institutional clients will be able to access on-chain derivatives while cross-margining their exposure to decentralized finance with all other assets that are supported by Ripple Prime.

These include cleared derivatives, OTC swaps, fixed income, forex, and other digital assets.

According to the official release, “clients can access Hyperliquid liquidity while benefiting from a single counterparty relationship.”

Speaking on the matter was Michael Higgins, the international CEO of Ripple Primer, who said:

“At Ripple Prime, we are excited to continue leading the way in merging decentralized finance with traditional prime brokerage services, offering direct support to trading, yield generation, and a wider range of digital assets. This strategic extension of our prime brokerage platform into DeFi will enhance our clients’ access to liquidity, providing the greater efficiency and innovation that our institutional clients demand.”

Ripple continues to expand its product offering while also working on licensing and regulatory issues worldwide. Recently, they secured a preliminary electronic money institution license in Luxembourg.

The move to integrate Hyperliquid into their prime brokerage solution also comes at a time when the decentralized perpetual futures exchange is attracting billions in daily volumes across a variety of assets, providing the deepest on-chain liquidity order book in the industry.

[PRESS RELEASE – George town, Cayman Islands, February 4th, 2026]

Tramplin, a premium staking platform built on Solana, backed by iTreasury Ventures, today announced its public launch, introducing a proven real-world savings model rebuilt for crypto.

Built on Solana’s native staking architecture, Tramplin features a premium bonds-inspired reward redistribution mechanism designed to give smaller SOL holders access to meaningful upside without compromising capital safety.

By collecting staking rewards and redistributing them probabilistically, Tramplin creates opportunities for potential outsized returns while ensuring users retain full control of their principal.

The project’s mission is to empower SOL holders—the backbone of the Solana ecosystem—by offering upside potential previously accessible only to large stakeholders. During its test phase, Tramplin observed periods of elevated effective APY for small stakers, driven by initial committed stake and redistribution dynamics.

Market Context

The idea behind Tramplin originated in a broader concern about how retail users have participated in crypto over the past market cycles.

Since 2021, a significant share of new activity has been driven by memecoin speculation, extreme leverage, and short-term trading models where smaller participants consistently enter late and exit at a disadvantage.

Rather than creating long-term value, much of the market has become optimized for volatility and rapid capital redistribution, often resulting in systematic losses for retail users.

Built on Native Staking, Without Added Risk

Tramplin operates entirely within Solana’s native staking framework, with users delegating directly to the validator node and no smart-contract custody or counterparty risk.

By combining provably fair randomness (via VRF), Merkle-based transparency, and the security of native staking, Tramplin is designed to make staking more engaging, equitable, and accessible, without introducing new risk vectors.

Public Launch and Partner Program

Alongside its launch, Tramplin is opening its Strategic Partner Program, inviting creators, analysts, auditors, and ecosystem builders to participate in reviewing, validating, and sharing the protocol with their communities.

The Partner Program is designed to offer a low-overhead, transparent alternative to running a private validator, while preserving Solana’s native security model.

The program features audit-first transparency, lifetime revenue sharing, and community Boost Points. Additional details about Tramplin and its Partner Program are available at https://tramplin.io

About Tramplin

Tramplin is a premium staking platform built on Solana with verifiable and random distribution of outsized rewards.

Founded in early 2025, Tramplin’s mission is to empower SOL holders — the backbone of the Solana ecosystem — with opportunities traditionally reserved for whales, without compromising capital safety.

Tramplin is backed by iTreasury ventures, an early investor in Solana, Polkadot, and several other category-defining blockchain projects.

TLDR

• Joseph Vafi from Canaccord has reduced his MSTR stock price target by 61%.
• The new MSTR stock price target is now set at $185, down from $474.
• Vafi still maintains a buy rating despite the steep cut in his price estimate.
• Strategy’s stock has dropped 15% in 2026 and 62% over the past year.
• The company’s value is now closely tied to the performance of Bitcoin.

As the ongoing crypto winter continues, investors are looking for signs that the bearish trend has reached its peak. A notable update comes from Canaccord’s Joseph Vafi, who dramatically slashed his price target on Michael Saylor’s Strategy (MSTR) stock. Vafi reduced his target by 61%, setting it at $185 from the previous $474, reflecting the significant impact of the current market conditions.

Strategy (MSTR) Faces Setback Amid Market Volatility

Joseph Vafi’s revised price target fo MSTR stock marks a stark change in outlook. After maintaining a bullish stance on the stock just a few months ago, Vafi is now adjusting his expectations to reflect the ongoing struggles within the crypto space. The analyst still holds a buy rating on the stock, despite the massive cut in his price target.

Strategy Inc, MSTR

At $185, the new target implies about 40% upside from the most recent closing price of $133. However, this outlook comes after Strategy has suffered significant losses, down 15% year-to-date, 62% year-over-year, and 72% from its record high in November 2024. The bearish trend is in line with the broader decline in the cryptocurrency market, which has faced immense pressure over the past year.

Bitcoin’s Ongoing Struggles Impact MSTR Stock

In his analysis, Vafi pointed to Bitcoin’s “identity crisis” as a key factor in the struggles of MSTR. While Bitcoin is still seen as a long-term store of value, its recent price movements resemble that of a risk asset, making it more susceptible to volatility. “Bitcoin is increasingly trading like a risk asset rather than a safe-haven asset,” Vafi remarked, highlighting how the cryptocurrency failed to track with precious metals like gold.

The Bitcoin-led company Strategy has been hit hard by these developments. Despite holding more than $44 billion in Bitcoin, the company has seen its market cap drop to levels close to its Bitcoin holdings. This correlation between Bitcoin’s price and the stock’s performance has made Strategy’s financial health more reliant on the digital asset’s price fluctuations than anticipated.

MSTR’s Near-Complete Dependence on Bitcoin

With Bitcoin’s price fluctuations dominating its financial outlook, quarterly results for MSTR have become less relevant. Investors are increasingly focused on the value of the company’s Bitcoin holdings rather than its operational performance. The upcoming quarterly results are expected to show a sizable unrealized loss due to Bitcoin’s fourth-quarter selloff.

Vafi’s revised price target assumes a 20% rebound in Bitcoin prices, which would help stabilize Strategy’s mNAV. However, the stock’s future remains closely tied to Bitcoin’s performance in the coming months. Despite this, Vafi remains optimistic, stating that Strategy is still built to weather volatility, given its strong Bitcoin position.

Multicoin Capital’s co-founder, Kyle Samani, said he is stepping down as managing partner of the crypto investment firm after 10 years in the industry. 

Samani called it a “bittersweet moment” in a post on Wednesday, adding, “I am excited to take some time off and explore new areas of technology,” which he later revealed would include AI and robotics.

He added that he is “more confident than ever that crypto is going to fundamentally rewire the circuitry of finance.”

“The Clarity Act will unlock a tidal wave of new entrants and spur adoption unlike anything we’ve seen,” Samani said, adding that he is particularly bullish on Solana and intends to continue making personal investments in the space and supporting Multicoin portfolio companies.

However, the post appears to conflict with a reportedly deleted earlier X post, in which he stated: “I once believed in the web3 vision. dapps. I don’t anymore…Crypto is just fundamentally not as interesting as many crypto enthusiasts wanted. Myself included.” 

Samani has previously criticized the Bitcoin and Ethereum ecosystems.

Last month, Samani said discovering Ethereum was his “entry into crypto” in 2016, after becoming convinced by permissionless finance and smart contracts.

However, he later lost faith in Ethereum, saying he was dissatisfied with how Ethereum developers addressed scaling.

Samani helped turn Multicoin into a $5.9 billion company

He came across the Solana shortly after founding Multicoin in May 2017, which went on to lead some of Solana’s earliest investment rounds in 2018.