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Google Gemini AI Predicts an Unexpected Prediction on Ethereum By The End of 2026

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Google Gemini AI Predicts an Unexpected Prediction on Ethereum By The End of 2026

Two upgrades in the testnet and one number that keeps coming up: 200 million gas. Google Gemini AI predicts that the throughput jump reframes what Ethereum can carry, and the price prediction targets $3,200 to $4,200 by the end of 2026, with $3,500 as the base case from $2,100.

The Platåberget testnet for Glamsterdam anchors the case. It introduces block-level access lists through EIP-7928.

Enshrined proposer-builder separation arrives alongside it via EIP-7732. Together, those drastically expand Layer-1 gas throughput toward that 200 million figure.

Source: Gemini AI Ethereum Price Prediction

Client developers are already finalizing the next scope. The Hegota upgrade has confirmed FOCIL through EIP-7805. Native account abstraction is under evaluation as EIP-8141. Both feed stateless validation via Verkle trees.

The practical result is cheaper node hardware. Gemini frames that as the path to institutional-grade network efficiency. The main invalidation risk is macro drag. Technical resistance at the 200-day EMA near $2,140 is the near-term obstacle.

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Losing the $1,800 support zone is the larger threat. That risks a leg down toward $1,200.

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Ethereum Price Prediction: Gemini AI Predicts Two Hundred Million Gas Changes The Math

The daily chart has just delivered its strongest session in months. ETH peaked near $4,950 last September before a long unwind began. November and December cut price toward $2,600. February brought the sharpest break, dropping ETH near $1,780.

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Spring recovered to $2,450 by May. June reversed that entirely, marking the low around $1,480. July and August rebuilt slowly. The latest session then broke sharply higher, clearing $2,100 in a single move.

The close reads $2,124.2, up 10.83%, and $207.6. The daily range covered $1,904.9 to $2,132.2. Support sits at $2,000, then $1,800 and $1,480. Resistance appears at $2,140 at the EMA Gemini names, then $2,450 and $2,800.

RSI reads 77.11 with its signal line far below at 54.97. That gap of more than 22 points is extreme and confirms a violent momentum shift. The oscillator is now clearly overbought. Momentum is strongly bullish, though readings this stretched typically cool before continuing.

Gemini’s base case needs a 65% move from here. Closing above that 200-day EMA is the first hurdle standing in front of it.

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Ethereum Is Chasing 200M Gas. Bitcoin Hyper Is Taking the SVM Route to Scale BTC.

Ethereum’s next valuation case depends on dramatically expanding what the base layer can process. Bitcoin Hyper is tackling the same bottleneck from a different direction: giving Bitcoin a faster execution environment without asking the Bitcoin network itself to become something it was never designed to be.

Bitcoin Hyper runs on the Solana Virtual Machine, bringing high-speed transactions, low fees, and smart contract functionality into a Bitcoin Layer 2 ecosystem.

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Its Canonical Bridge is designed to move BTC into that environment, while HYPER powers gas, staking, and governance across the network.

That makes the thesis less about changing Bitcoin and more about extending what Bitcoin capital can actually do.

The presale has already raised more than $33 million, while buyers can currently stake HYPER for yields of up to 35% APY ahead of the project’s planned 2026 launch.

Explore the Bitcoin Hyper Presale

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Bitcoin whale moves $86M after 11 years of dormancy

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Dormant Bitcoin whale moves $188M after seven years of silence

A group of Bitcoin wallets dormant since 2014 has transferred 1,214.42 BTC worth about $86 million as the cryptocurrency traded near a weekly high of $72,400.

Summary

  • 28 dormant wallets transferred 1,314.41 BTC worth $94.03 million within 24 hours.
  • 2014 wallets supplied 92.4% of the Bitcoin moved during the period.
  • 21 transactions carried exactly 50 BTC from legacy wallets to newer address types.
  • Arkham labels have not connected the receiving addresses to any known exchange.

Dormant Bitcoin wallets move $94 million

Bitcoin.com reported on Aug. 20, citing btcparser.com data, that 28 long-inactive wallets moved a combined 1,314.41 BTC between Aug. 19 and Aug. 20.

The Bitcoin was worth approximately $94.03 million at the time of the transactions. Wallets created in 2014 accounted for 1,214.42 BTC, or 92.4% of the total, with the coins valued at about $86 million.

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Rather than moving through one large transaction, much of the activity appeared in matching amounts. Twenty-one transfers each carried 50 BTC from addresses created in November or December 2014, according to the report.

Several transactions were recorded in the same Bitcoin blocks, including block 963203. Their timing, matching sizes, and common address format suggest that the wallets may have been controlled by one or a small number of holders, although the available blockchain data does not establish their ownership.

Alongside the 2014 coins, three wallets created in 2016 transferred a combined 79.99 BTC. Two addresses dating to 2017 moved another 20 BTC during the same 24-hour period.

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The report said another wallet, first seen on Dec. 26, 2014, separately transferred 150 BTC worth approximately $10.73 million. Its coins also went to a newly created address with no public entity label.

Bitcoin moves from legacy to newer addresses

Most of the 2014 transactions sent funds from Pay-to-Public-Key-Hash, or P2PKH, addresses to Pay-to-Witness-Public-Key-Hash addresses known as P2WPKH.

P2PKH is a legacy Bitcoin address format commonly identified by addresses beginning with “1.” P2WPKH addresses use Segregated Witness and generally begin with “bc1q,” offering smaller transaction sizes and lower fees than older address types.

Moving coins between the two formats can occur when a holder reorganizes self-custodied funds or adopts a newer wallet setup. Blockchain records show where the Bitcoin went, but they do not reveal why the owner moved it or whether the receiving addresses remain under the same control.

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Arkham Intelligence’s public labels had not associated the destination addresses with centralized exchanges when the report was published. Without an exchange link, the transfers alone do not prove that the holders intend to sell the Bitcoin.

Blockchair’s privacy tool gave several of the 50 BTC transfers a score of 22 out of 100, according to Bitcoin.com. The tool identified about four privacy concerns, including the repeated use of the same address among transaction inputs.

Consolidating multiple holdings can make future spending easier, but placing several inputs into one transaction may also reveal links between addresses. Such links can help blockchain analysts group addresses that may belong to the same entity, even when the owner’s identity remains unknown.

Early holdings have risen at least 16,600%

Bitcoin traded between approximately $310 and $427 during November and December 2014, when the main group of wallets first received or became associated with the coins.

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Using the upper end of that range and the value at the time of the latest transfers, Bitcoin.com estimated that the holdings had appreciated by at least 16,645%. The percentage represents the increase in Bitcoin’s market price rather than a confirmed realized return because blockchain data does not show that the coins were sold.

At $427 per Bitcoin, acquiring 1,214.42 BTC would have required roughly $518,000 before fees. The same amount was worth about $86 million when the wallets became active again.

Bitcoin’s price later fell to between $152 and $170 in January 2015, leaving holders from late 2014 facing steep paper losses before the asset recovered over the following decade. The wallet activity therefore covers coins held through several Bitcoin market cycles.

Dormant-wallet transfers have appeared several times during 2026. As crypto.news reported in May, a wallet inactive since November 2013 moved 500 BTC worth about $40 million to a new address with no known exchange connection.

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CryptoQuant CEO Ki Young Ju described the May transaction as “classic OTC prep, not dump pressure,” citing its low fee and non-exchange destination. No comparable analyst assessment has been provided for the latest 1,214 BTC movement.

Later that month, a separate whale transferred 2,650 BTC worth approximately $203 million to FalconX and Cumberland. Onchain Lens, citing Arkham data, said the wallet retained nearly 6,000 BTC valued at about $462 million after the transactions.

Unlike the latest movements to unlabeled addresses, the May transfers reached named crypto trading firms. Even then, the transactions did not confirm that the holder had sold the coins, since trading companies can also handle custody and over-the-counter deals.

Dormant wallets also face a US ownership dispute

Long-inactive Bitcoin addresses have also entered a legal dispute in New York, where a plaintiff using the name Noah Doe has sought control of 39,069 wallets under the state’s lost-property law.

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In July, a listed wallet transferred 30 BTC worth about $1.88 million after nearly 15 years without an outgoing transaction. Galaxy Research said other addresses named in the lawsuit had also begun moving funds.

The plaintiffs have argued that the listed wallets qualify as abandoned property under Article 7-B of New York’s Personal Property Law. A defendant claiming control of one address asked the court to dismiss the case, arguing that a Bitcoin address is a data string rather than a legal entity that can be sued.

No public information links the 2014 wallets behind the latest $86 million movement to that lawsuit. Their activation nevertheless shows why inactivity alone cannot establish that a wallet has been abandoned or that its owner has lost access to the private keys.

For US taxpayers, the tax result depends on whether the Bitcoin merely moved between addresses controlled by the same person or changed ownership. The Internal Revenue Service states that transferring cryptocurrency between wallets, accounts, or addresses owned by the same taxpayer is not a taxable event.

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A sale or exchange would receive different treatment. The IRS requires taxpayers to calculate capital gains or losses using the difference between the amount received and the adjusted cost basis, while records used to identify particular Bitcoin units should include their acquisition date, basis, disposal date, and fair market value at disposal.

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Binance Launches Agent OS for AI-Powered Crypto Trading

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Binance Launches Agent OS for AI-Powered Crypto Trading

Binance has launched Agent OS, a developer platform that allows AI agents to access market data, monitor user accounts and execute crypto trades on the exchange.

According to a company announcement, the platform supports AI tools including ChatGPT, Claude Code, Codex, and Cursor, allowing users to authorize agents to view account information and place trades within configured permissions and limits.

Users can assign agents to dedicated subaccounts to separate funds and trading activity, configure their permissions and revoke access at any time. Binance said it can monitor trades placed through Agent OS but cannot see an agent’s external information sources, interpretation or decision-making, which occur within the user’s chosen AI application.

Agent OS also connects agents to Binance’s payment and onchain tools, allowing them to make payments and interact with wallets and other onchain services.

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Related: Bitcoin miners pour billions into AI as capex outpaces revenue 15-to-1

Crypto exchanges move deeper into AI agents

Binance joins a growing group of crypto exchanges opening their trading infrastructure to AI agents.

Coinbase launched Coinbase for Agents in June, allowing AI models including ChatGPT and Claude to connect to user accounts and autonomously execute crypto trades and strategies. The tool also supports agent-driven payments through Coinbase’s x402 protocol.

Source: Coinbase

Other exchanges have taken different approaches to AI autonomy. In July, Kraken unveiled an AI-powered investing assistant that monitors markets and recommends trades based on users’ financial goals and risk preferences, but requires user approval before executing a trade.

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The push has extended beyond trading. OKX launched a beta marketplace where AI agents can find work, transact autonomously and hire other agents for tasks, using stablecoin payments and an onchain reputation system.

Several crypto industry leaders, including Coinbase CEO Brian Armstrong and Circle CEO Jeremy Allaire, have argued that AI agents could soon account for a significant share of onchain activity. Binance co-founder Changpeng Zhao has expressed a similar view, describing cryptocurrency as the “native currency” of AI agents.

Magazine: 200,000 fake AI ‘victims’ deployed to scam bait online fraudsters

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Dario Amodei Claude AI Predicts What $1,000 in XRP Could Turn Into by End Of 2030

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Dario Amodei Claude AI Predicts What $1,000 in XRP Could Turn Into by End Of 2030

Put $1,000 into XRP at $1.07 and you own roughly 935 tokens. Claude AI predicts those tokens are worth somewhere between $4,675 and $26,180 by the end of 2030, and the price prediction spans a range wide enough to make the assumptions matter more than the headline.

The most bullish bank-grade roadmap comes from Standard Chartered’s Geoffrey Kendrick. It maps $7 in 2027, $12.60 in 2028, and $28 by 2030. But two conditions sit underneath it. The CLARITY Act has to pass, and spot ETF inflows need to exceed $4 billion.

Current inflows sit near $1 billion raised since November 2025. That is a fourfold gap between where flows are and where the model needs them.

Source: Claude AI XRP Price Prediction

Bitwise reaches a similar destination by a similar road. Its max-case model tops out at $29.32, including a speculative US strategic XRP reserve. Claude does not treat the downside as hypothetical. Bitwise’s own bear scenario lands at $0.13, which would turn that $1,000 into roughly $122.

The structural concern is closer to home. Ripple’s RLUSD stablecoin, not XRP, is capturing most of the network’s new institutional volume. That is why several analysts see $8 to $12 as more realistic than $28. The utility is arriving, but it may not be arriving in the token.

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XRP Price Prediction: Claude AI Predicts A $1,000 Bet Ranges From $4,657 To $26,180

The daily chart explains why the low end deserves respect. XRP traded near $2.65 last October and declined for ten straight months. February broke the $1.80 shelf, dragging the price toward $1.15. Spring built a range between $1.30 and $1.55 that held into May.

June broke it, and the slide continued through the summer. Price touched $0.995 before the latest session. That session changed things. A sharp reversal lifted XRP back above $1.08 in a single day.

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The close reads $1.08250, up 8.13%, and $0.08136. The daily range covered $0.99524 to $1.08261.

Support sits at $1.00, then $0.95 and $0.85. Resistance appears at $1.15, then $1.25 and $1.40. RSI reads 59.05 with its signal line far below at 38.23. That gap of nearly 21 points is unusually wide and reflects a violent one-day momentum shift.

The oscillator has jumped from oversold to above the midline. Momentum has flipped bullish, though a move this fast rarely holds without consolidation.

The distance between $122 and $26,180 comes down to whether institutions use the token or the stablecoin. Watching where new volume settles is how you find out which end of that range applies.

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LiquidChain Is Betting the Bigger Opportunity Is Connecting the Capital.

XRP’s long-term upside increasingly depends on whether institutional activity actually accrues to XRP itself or gets captured by products like RLUSD.

LiquidChain is approaching that problem from a different angle: instead of betting on which asset wins inside one ecosystem, it is building infrastructure designed to connect liquidity across several of the largest ones.

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Bitcoin, Ethereum, and Solana still operate as largely separate markets. Moving between them means bridges, extra fees, fragmented liquidity, and applications rebuilt chain by chain.

LiquidChain is developing a single execution layer intended to unify all 3, allowing one deployment to reach multiple ecosystems without repeatedly paying that cross-chain tax.

That gives the project exposure to the movement of capital itself, regardless of which large-cap token leads the next cycle.

The presale is currently priced at $0.01454 with just over $940,000 raised, leaving significant room for repricing if that infrastructure thesis gains traction.

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Binance Employees Detained in UAE Despite $2 Billion Emirati Backing

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Binance Employees Detained in UAE Despite $2 Billion Emirati Backing

Binance runs its global exchange under Abu Dhabi’s regulator. Emirati police still detained two of its employees over financial crime inquiries, the New York Times reported.

All have been released. A third staff member, who leads the company’s Dubai arm, answered questions at a police station in July.

A Foothold Built on Licenses and State Money

The Emirates is not a side market for Binance. It is the base.

Abu Dhabi’s Financial Services Regulatory Authority granted the exchange three licenses on December 8. No other crypto exchange had won a global license under that framework. The permissions went live on January 5.

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The money runs just as deep. State-backed fund MGX invested $2 billion in March 2025. It paid in USD1, a stablecoin from World Liberty Financial, a venture the Trump family part-owns.

The relationship even shapes policy. Binance has cited its Abu Dhabi licensing rules to explain why it now handles some foreign police requests differently.

Airport Stops and an Overnight Hold

Two workers were pulled aside at Emirati airports, people familiar with the inquiries said. One midlevel employee passed through Sharjah this month. Officers took him to a station and held him overnight.

What police are chasing is unclear. Binance told the Emirati government that its staff were swept into fraud cases centered on customers. None were tied to the offenses, the company said.

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The link may be mundane. Some employees’ names sit on a corporate bank account Binance keeps in the country. That account processes customer deposits and withdrawals.

“A small number of our personnel were recently asked to provide standard statements to local authorities as part of routine inquiries relating to third-party fund flows… all who provided statements were promptly cleared and released,” A Binance spokesman, speaking to the New York Times.

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A Familiar Pattern for Binance Staff

Emirati authorities were already tracing money around the exchange. Dubai’s Virtual Assets Regulatory Authority fined an unlicensed local firm, Shelbit, on July 24. Reuters tracked about $4 billion through Shelbit, and roughly $676 million reached Binance.

Binance’s record invites that attention. The company pleaded guilty in the United States in November 2023 and paid $4.32 billion. Prosecutors found it had let more than $898 million in trades pass between US and Iranian users.

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That deal placed an independent compliance monitor over the company for three years. The term still has months left to run.

Staff have been caught in national cases before. Compliance executive Tigran Gambaryan spent months held in Nigerian custody in 2024. US diplomatic pressure secured his release.

The detentions have rattled the workforce. Binance approached Emirati officials this month, seeking help and raising concerns about employee safety.

Whether the questioning stays limited to customer fraud will test how much protection those licenses actually buy.

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Grayscale Discloses Talks Over 200,000 ZEC Contribution to Zcash Trust From DCG Unit

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Grayscale has disclosed discussions with a Digital Currency Group (DCG) subsidiary over a contribution of roughly 200,000 ZEC to its Zcash Trust, in an August 18 amendment to the registration statement that would move the fund onto NYSE Arca.

Grayscale Investments Sponsors, the trust’s sponsor, said it is in discussions with DCG International Investments Ltd. for the unit to acquire shares through an authorized participant in exchange for the tokens. The filing adds that “because these discussions are not binding agreements or commitments to purchase, the Potential Investor could determine to purchase more, fewer, or no Shares.”

Moreover, the trust intends to list under the ticker ZCSH, which already carries its shares on OTCQX. Net asset value was $155.2 million on June 30, when the trust held about 2.3% of circulating ZEC, and shares closed at $36.6 on August 12 at a 7% discount to NAV per share.

Since October 2021, the shares have been quoted at a discount on 700 days, with a maximum discount of 55% and a maximum premium of 240%, though the SEC has not approved or disapproved the shares.

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DCG Sits on Both Sides

Grayscale’s parent would take a controlling position if the contribution is completed. DCG “may, directly and indirectly through the Potential Investor and other affiliates, own a majority of the Shares representing ownership in the Trust,” the filing states, and would hold “the ability to control the outcome of virtually all matters presented to our shareholders for their approval.”

DCG also mines the asset. Fortitude Mining, a DCG subsidiary, mines ZEC and runs infrastructure on the network, while Foundry Digital operates a ZEC mining pool that accounted for approximately 15.4% of the Zcash Network’s hash rate for the month ended July 2026.

DCG “could prioritize its own interests in these and other investments over those of the Trust,” according to the filing. Zcash itself shipped the Ironwood upgrade and its turnstile mechanism after a counterfeiting bug surfaced in the Orchard shielded pool.

Fee Line Still Blank

The Sponsor’s Fee, the only ordinary recurring expense the trust expects, appears in Amendment No. 4 with its annual rate left blank, as does the trust’s intended new name. Coinbase Custody Trust Company holds the ZEC, and Coinbase is the prime broker.

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Grayscale has run this conversion before. The SEC cleared its Digital Large Cap Fund for NYSE Arca alongside generic listing standards that removed the 19(b) filing requirement, and the manager earlier filed to convert its XRP trust into an ETF on the same exchange.

ZEC traded at $550.78 on August 19, according to CoinGecko, with a market capitalization of $9.3 billion.

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Crypto Generated Over 1% of Webull’s Record $198M Q2 Revenue

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Crypto Generated Over 1% of Webull’s Record $198M Q2 Revenue

Cointelegraph is committed to providing independent, high-quality journalism across the crypto, blockchain, AI, and fintech industries.

All news, reviews, and analyses are produced with full journalistic independence and integrity. For more details on our standards and processes, please read our Editorial Policy.

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XRP Price Prediction: Can Ripple Extend Its Biggest Rally Since 2020?

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📈

XRP price trades at $1.18 as of this writing, up 18% on the day in a follow-through move that’s keeping the “biggest rally prediction since 2020” narrative alive. But there’s a catch most headlines are skipping over, and it involves where the smart money actually went.

The token jumped 10% on August 19, beating Bitcoin’s 7% gain and finishing third among the eight largest coins during a record-wide short squeeze. Based on XRP’s 180-day correlation with Bitcoin, the move should have produced 6.57% upside, but it delivered 3.83 points more than that. It is a real outperformance, not just a beta ride.

However, spot ETF flows tell a different story: Bitcoin funds pulled in $517 million that day, nearly triple the prior pace, while XRP’s institutional pipes stayed comparatively quiet.

This gap in retail momentum without matching institutional confirmation sets up the next question. Can the chart hold what the squeeze built?

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XRP Price Prediction: Hit $1.30 This Week?

At $1.18 and rising nearly 20% in 24 hours, XRP sits just above the $1.10–$1.12 resistance band that’s capped multiple rallies since early August, per recent technical coverage. Volume above $3–4 billion daily suggests the move has real participation behind it, not thin-book noise.

The 200-day moving average near $1.28 is the next real test, and clearing it decisively would open room toward the $1.29–$1.45 zone analysts have flagged as the next demand shelf.

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In a good scenario, a confirmed break above $1.20 extends the squeeze toward $1.30–$1.45. A consolidation between $1.00 and $1.20 continues while ETF flows catch up.

However, a rejection at resistance sends price back toward the $1.00 floor that’s held all year, and a break below that invalidates the entire rally thesis. This is worth watching before chasing this candle.

Trade XRP Market on Kalshi and Get a $25 Signing-up Bonus

Bitcoin Hyper Targets Early Mover Upside as XRP Tests Key Levels

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XRP bulls have earned some validation here; an 18% daily pop and a rare win against Bitcoin is nothing to dismiss. But at a $68 billion-plus market cap, XRP’s percentage upside from here is mathematically constrained even in a strong breakout scenario.

That’s the trade-off of buying an asset this size: the squeeze gets headlines, the multiples don’t move like they used to. Capital chasing outsized returns is increasingly rotating toward earlier-stage infrastructure plays instead, and Bitcoin Hyper ($HYPER) is drawing that attention as the first Bitcoin Layer 2 with native SVM integration.

The presale has raised $33 million at a current token price of $0.0136849, with staking rewards available at launch with a huge 35% APY reward. The pitch: Solana-speed execution secured by Bitcoin’s base layer, via a decentralized canonical bridge, is solving the slow, expensive, non-programmable problems that have limited BTC’s utility for years.

Research Bitcoin Hyper before deciding whether that risk fits the portfolio.

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What to Know About Trump’s 250 Grand Prix

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What to Know About Trump’s 250 Grand Prix

The 1.66 mile, 7-turn track begins on 3rd Street near the Capitol building at the east end of the National Mall in Washington, D.C., before jutting down Pennsylvania Avenue, the course’s longest straight at 0.4 miles. It then makes turns on 9th Street, 7th Street, and Independence Avenue, passing sites including the Lincoln Reflecting Pool and the Smithsonian Museum before circling back onto 3rd street to finish off. 

Who’s paying?

Penske Corp., the owner of IndyCar, is picking up most of the tab for the race, according to Bud Denker, Penske Corp. president and chair of the Freedom 250 Grand Prix.

An exact price tag for the event is unknown, but Denker said in July that the race is “much more” than IndyCar’s Detroit street race, which has a budget of $20 million. 

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A $90 million budget allocated by Congress for special events in Washington will cover security costs, according to Deputy Mayor for Public Safety and Justice Lindsey Appiah, who spoke at a public briefing in July. 

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Bitcoin ETFs Draw $517M in Largest Daily Inflow Since Early May

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Bitcoin ETFs Draw $517M in Largest Daily Inflow Since Early May

US spot Bitcoin exchange-traded funds (ETFs) recorded $517.2 million in net inflows on Wednesday, their largest single-day investment since May 4, pushing August net inflows to $1.47 billion.

The funds have taken in about $1 billion since Monday, already their strongest weekly net inflow since the week ended Jan. 16, when they attracted about $1.42 billion.

The inflows came as crypto prices rallied on Wednesday, alongside a US Treasury decision to expand buybacks of longer-dated government debt and renewed attention on crypto regulation after President Donald Trump urged Congress to advance the CLARITY Act at a White House event.

“The Treasury signalling it’ll step in at the long end pushed yields and the dollar lower, and gold and silver outperformed equities on the day, so the market priced this as a currency event rather than a growth one,” Jonatan Randin, senior market analyst at PrimeXBT, told Cointelegraph.

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“Bitcoin moved with gold and silver rather than with risk appetite, which is what the debasement trade looks like when it’s working,” he said.

Bitcoin traded near $72,000 at the time of writing on Thursday, up 11% in the last 24 hours, according to CoinGecko. Ether rose 19% to $2,286.

Spot Ether ETFs logged $189.2 million in net inflows on Wednesday, bringing this week’s inflows to about $291.5 million.

Related: Standard Chartered analyst eyes $100K BTC as US Treasury doubles long-end buybacks

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This article is produced in accordance with Cointelegraph’s Editorial Policy and is intended for informational purposes only. It does not constitute investment advice or recommendations. All investments and trades carry risk; readers are encouraged to conduct independent research.

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LayerZero has lost a dozen partnerships this year

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LayerZero has lost a dozen partnerships this year

Blockchain interoperability project LayerZero has lost a dozen partners this year as its ZRO token shed a third of its value.

The latest departure, Ethereum node service provider Nethermind, ran one of the verifiers that LayerZero advertised to enterprise users. It migrated to one of LayerZero’s competitors and terminated its role as verifier on Wednesday.

It joins a long list.

  • Kelp DAO exited LayerZero in May after it lost $292 million through a bridge that a single LayerZero verifier secured.
  • Solv Protocol deprecated its LayerZero bridges two days later, with Re.xyz making the same move. 
  • The following week, Kraken shifted its kBTC BTC-linked token off LayerZero, while Lombard pulled over $1 billion of BTC-backed assets one day later.
  • Virtuals Protocol left LayerZero in June. Yuzu Money completed its exit in early July, and Mantle swapped out its Super Portal days later.
  • BitGo took $7.7 billion of wrapped BTC out of LayerZero’s ecosystem in August.
  • Huma Finance declined to use LayerZero for its product launched earlier this year.

Even the Wyoming Stable Token Commission, the lone state government in the pack of LayerZero partners, dropped its token bridge on Tuesday. 

LayerZero targeted by Lazarus Group

More than $7 billion in assets had migrated off LayerZero by early July. BitGo’s exit lifted the tally toward $15 billion.

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The panic began after LayerZero admitted that hackers at Lazarus Group poisoned its internal RPCs in April.

“We made a mistake by allowing our DVN to act as a 1/1 DVN for high-value transactions,” it said.

Protos documented the immediate fallout from that incident, with Aave pausing ETH-pegged token markets from LayerZero as depositors rushed for the exits.

Read more: Aave TVL still down 43% since KelpDAO hack

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Hard to recover from an 88% drawdown

LayerZero co-founder and CEO Bryan Pellegrino dismissed much of the early criticism as untrue.

Another defender argued that the departures amount to “about 3% of actual usage in volume and less than 1% of messages.”

Still, LayerZero has been retreating. ZRO, has lost 31% of its value this year, 56% over the past 12 months, and 88% from its December 2024 all-time high.

In July, it announced it was “winding down support for a number of chains with minimal activity across our offchain services and Stargate products.”

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The same notice told Stargate users on those chains, “Failure to act before chain support is fully deprecated will result in losing access to your funds.”

LayerZero warned teams still using v1 libraries would face an August 3 shutoff.

Got a tip? Send us an email securely via Protos Leaks. For more informed news and investigations, follow us on XBluesky, and Google News, or subscribe to our YouTube channel.

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