Crypto World
Grayscale Lays Out 3 Arguments for Long-Term Crypto Investment
The crypto market has faced a significant drawdown this year, extending the decline that followed the October market crash.
However, in its latest market commentary, Grayscale Investments noted that now may be an appropriate time for long-term investors to consider allocating to crypto.
Grayscale Report Highlights AI’s Resilience Amid Crypto Market Decline
Grayscale highlighted that the crypto markets saw a notable decline in early February, following the downturn in high-growth software stocks and other equity sectors tied to early-stage technology. Market data showed that during the first week alone, the total crypto market cap dropped by around 10.8%.
The market experienced a notable decline towards the end of the first week, with Bitcoin (BTC) falling to $60,000, while other major assets also saw significant losses.
The FTSE/Grayscale Crypto Sectors Index dropped 26% from January 30 to February 5. The report also revealed that the artificial intelligence (AI) segment emerged as the top performer in February among crypto sectors. The sector experienced a more modest drawdown compared to others.
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“The outperformance seemed due to renewed enthusiasm around AI agents — autonomous software that can work independently on your behalf to pursue a complex set of objectives. Technological innovation appears to be accelerating with the rise of agent-based systems, particularly OpenClaw — a locally hosted productivity assistant that became one of the fastest-growing open-source projects in history,” the report read.
Kite AI, centered on agent-native stablecoin payments, and Pippin AI, which develops on-chain AI agents, both saw strong performance.
However, Grayscale’s report indicated a rebound, with the FTSE/Grayscale Crypto Sectors Index recovering 4% by the end of the month. The report added that metrics such as trading volumes and implied volatility have also “settled down.”
Grayscale Identifies Key Reasons for Long-Term Crypto Allocation
With market conditions stabilizing, Grayscale presents three core arguments for long-term accumulation. First, is the relationship between blockchain and AI. The report asserts that AI and blockchain are complementary, not competing.
“In fact, blockchains will likely be the financial rails for AI agents, given certain advantages over traditional bank-based finance — as discussed in the popular report by Citrini Research on possible AI disruptions,” Grayscale wrote.
While crypto assets declined alongside software stocks amid the market slump, the report suggested that investors may eventually differentiate between technologies disrupted by AI and those that complement it.
Second, the report pointed to stablecoin and tokenization trends. According to Grayscale, regulatory clarity, including the passing of the GENIUS Act last year, is encouraging institutional investment in stablecoins and tokenized assets. Recent actions by companies like Meta, Stripe, and BlackRock further demonstrate the sector’s growth potential.
“In February, reports indicated that Meta may reinvest in stablecoins after shelving its Libra/Diem project amid regulatory headwinds, and Stripe said in its annual letter that ‘stablecoin payments are advancing quietly and inexorably as real-world uptake continues apace.’ Separately, BlackRock said it would integrate its tokenized money market fund BUIDL with UniswapX,” the report highlighted.
Although the Clarity Act is delayed in the Senate, Grayscale highlights that its potential passage could facilitate institutional capital inflows into the asset class.
Lastly, the firm stated that the US economy remains healthy, with some indicators suggesting further potential growth. While there is uncertainty regarding the new Fed Chair nominee, Grayscale views the overall macro environment as supportive of risk assets.
“Overinvestment in AI is a medium-term risk, but the pace of innovation remains rapid and there are still shortages of data center capacity. The market reacted negatively to the nomination of Kevin Warsh to replace Jerome Powell as Fed Chair, but we doubt he will be as hawkish in practice as some of his viewpoints while Fed governor (2006-2011) might suggest,” Grayscale said.
Thus, Grayscale Investments presents a compelling case for long-term crypto growth. However, investors must carefully assess their risk appetite and time horizon, as the crypto market’s unpredictability can affect short-term returns despite long-term opportunities.
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The United States Attorney’s Office for the District of Massachusetts filed a civil forfeiture action Monday seeking to recover 327,829.72 USDT, allegedly involved in a money laundering scheme connected to an online romance scam.
Summary
- DOJ is seeking to recover approximately $327,829 in USDT linked to a romance fraud and money-laundering scheme.
- Investigators say the stolen funds were routed through intermediary wallets and converted to stablecoin to conceal origin.
- The action underscores continued federal efforts to trace and reclaim crypto assets to return them to defrauded Americans.
Justice Department targets crypto laundering in online romance scam
The complaint, filed in federal court, names the cryptocurrency as defendant property and seeks its forfeiture under federal law as proceeds of fraud and laundering.
According to the complaint, the stolen funds originated from a Massachusetts resident who was targeted in late 2024 on a dating app. The fraudster, identified only by an alias, convinced the victim to send funds for purported cryptocurrency investments that never existed.
Rather than investing the money, the scammers diverted it through a series of cryptocurrency wallets and ultimately converted it to USDT, a common tactic to obfuscate the origin and movement of illicit proceeds.
Several of the wallets in question were seized by law enforcement in August 2025 after blockchain analysis traced connections to the scam.
Under U.S. civil forfeiture law, property traceable to illegal activity may be seized by the government and ultimately returned to victims if the court finds it to be proceeds of crime. The Justice Department’s action allows third parties with a legitimate interest in the property to file claims before any forfeiture is finalized.
Prosecutors said the forfeiture complaint is part of broader efforts to target online frauds, including romance scams, investment schemes, and cyber-enabled financial crime that increasingly leverage cryptocurrency to move and hide funds.
The case highlights both the growing sophistication of crypto-related fraud and law enforcement’s expanding use of blockchain analysis to trace and reclaim stolen digital assets for fraud victims.
Bank of Japan Governor Ueda Kazuo said the rapid integration of blockchain and artificial intelligence is reshaping the financial system, positioning central banks to play a pivotal role in anchoring trust as crypto-linked infrastructure matures.
Summary
- The BoJ is exploring issuing or connecting central bank money to blockchain networks, including through Project Agorá and domestic sandbox testing.
- Japan’s retail CBDC program remains active, with technical experiments aimed at preparing digital cash as a future “anchor of trust.”
- Ueda warned that fragmented blockchain systems could create systemic risk unless central bank money bridges networks and ensures settlement finality.
Bank of Japan’s Ueda backs blockchain settlements, advances CBDC experiments
Speaking at FIN/SUM 2026 in Tokyo, Ueda described blockchain as moving firmly into its “implementation phase,” with decentralized finance (DeFi), smart contracts and tokenized assets increasingly influencing settlement, payments and cross-border finance.
He emphasized that blockchain’s programmability, particularly atomic transactions that bundle multiple actions into a single execution, could streamline complex processes such as delivery-versus-payment (DvP) and cross-border transfers.
For crypto markets, the speech revealed two key themes: interoperability and settlement in central bank money.
Ueda warned that a fragmented ecosystem of multiple blockchains and traditional payment rails could create conversion bottlenecks and systemic risks if interoperability is not ensured. He suggested central bank money, potentially in tokenized form, could function as a bridge across networks, preserving the “singleness of money” while enabling innovation.
The BOJ is advancing several initiatives with direct implications for digital assets. Its retail central bank digital currency (CBDC) pilot continues technical testing, while Project Agorá — a joint effort with other central banks and major financial institutions — is exploring tokenized central bank deposits on blockchain networks for cross-border payments.
A separate BOJ sandbox is testing how current account deposits at the central bank could be used to settle transactions conducted on distributed ledgers.
Ueda also highlighted AI’s growing role in analyzing blockchain transaction data for risk management and AML/CFT compliance, signaling closer scrutiny of crypto-linked activity even as innovation expands.
The message to markets was clear: blockchain-based finance is no longer experimental. But its long-term stability, Ueda said, will hinge on central banks embedding trust, liquidity and settlement finality into the next generation of digital infrastructure.
Solana price tanked over 7% on Monday as fears of the impact of the ongoing U.S.-Iran war continued to drive investors away from risk assets. Current technical signals suggest the token could be set for a downturn.
Summary
- Solana price has remained in a downtrend as network revenue declined amidst a market-wide downturn.
- A bearish flag pattern has positioned the token for more downside.
According to data from crypto.news, Solana (SOL) price fell 7% from $88.05 on Sunday to an intraday low of $81.86 on Monday, March 2. Subsequently, it attempted a breach of the $90 resistance supported by a broader market recovery, but the rally lost steam just below that mark.
On the monthly timeframe, Solana has fallen over 30%, and is down over 44% from this year’s highs.
Solana price has remained in a downtrend as network revenues have fallen. Notably, the weekly revenue generated by the Solaba network has dropped over 30% from what was recorded during mid January, data from DeFiLlama show.
The total value locked in the network has also fallen from over $9 billion recorded on Jan. 17 to $6.64 billion at the time of writing.
With both network revenue and TVL going down, investors are concerned that Solana’s explosive growth phase is over, and the memecoin fever that fueled the network is finally breaking.
Demand for the token across the derivatives market has also contributed to the downturn. Data from CoinGlass show that SOL futures open interest has scaled back by nearly 45% to $4.93 billion from its January high of $8.88 billion as traders unwind positions awaiting signs of more calmness in the global geopolitical landscape.
Solana price is also affected by the market-wide downturn in response to the ongoing U.S.-Iran conflict, which has pushed investors away from risk assets to more traditional alternatives, as they expect more volatility over this week.
The most recent trigger came after the retaliatory attack from Iran on U.S. ships over the weekend, stationed around the Strait of Hormuz, sparking a jump in oil prices. Investors are concerned this could lead to higher inflation in the U.S., which could likely force the Fed to hike interest rates or hold them steady at restrictive levels for longer.
Risk-assets like Solana tend to benefit from interest rate cut expectations and struggle when the Fed sets a hawkish tone.
On the daily chart, Solana price has formed a bearish flag pattern since the token entered a downtrend from mid January this year, before moving into consolidation over the past few weeks. Bearish flags have typically been precursors to further downward breakouts.
Other technical indicators also favour the bears. The Supertrend has flashed red while the Aroon lines have pointed downwards, with the Aroon Down at 50%, indicating that sellers still maintain firm control of the market.
Hence, Solana price risks dropping to the Feb. 6 low of $70 if the current bearish momentum prevails, especially considering the broader downturn.
On the contrary, a rebound above $90, a resistance level that the token has struggled to break multiple times over the past few weeks, could offer the necessary optimism for a rally towards the $100 psychological resistance level.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
Bitcoin (BTC) rallied to $70,000 on Monday amid escalating tensions in the Middle East. CryptoQuant data shows short-term holder losses transferred to exchanges fell to a two-week low, contrasting with the heavier selling seen in early February.
Bitcoin short-term sellers step back
The short-term holder (STH) profit/loss (P&L) to exchanges metric tracks how much Bitcoin recent buyers send to exchanges at a profit or loss. These participants tend to amplify volatility during stress events.
On March 1, the realized losses fell to 3,700 BTC even as geopolitical tensions between the United States and Iran escalated in the Middle East. Bitcoin dipped to $63,000 during that window, but exchange inflows from this cohort did not expand in response.
For comparison, on Feb. 5–6, the STHs sent 89,000 BTC to exchanges at a realized loss within 24 hours. That marked a peak capitulation window. Since then, the loss-driven inflows have steadily compressed.
Crypto analyst MorenoDV noted that the most event-sensitive holders have not accelerated distribution and exhibited “zero panic.” The drop in loss transfers signals that the sell pressure from recent buyers has cooled.
A strong rally may depend on whether realized losses stay contained or reaccelerate toward prior capitulation levels during this period of geopolitical uncertainty.
Related: Michael Saylor’s Strategy buys $204M of Bitcoin in 101st purchase
BTC futures deleveraging meets external liquidity
BTC derivatives data indicate a significant risk reduction. Crypto analyst Darkfost highlighted that Binance open interest declined to 97,680 BTC from 130,800 BTC since the start of the year, a 25% contraction.
The estimated leverage ratio, which compares open interest to exchange BTC reserves, fell to a 0.146 weekly average. Levels below 0.15 have historically aligned with aggressive deleveraging phases during this cycle.
On the technical side, Bitcoin is attempting to reclaim its Monthly RVWAP (rolling volume-weighted average price), currently near the high-$68,000 region. The Monthly RVWAP is a volume-weighted average price anchored to the start of the month. BTC trading above it places the average monthly participant back in profit and often shifts the short-term positioning bias of traders.
The four-hour chart shows the price pushing through $70,000 and approaching the first external liquidity pocket from $70,000 to $71,500. Converting that range into support may trigger a price expansion to the $80,000 region, where prior supply capped upside in January. Crypto trader LP said,
“On the HTF, low-leverage liquidation clusters are stacking near and just above the range highs, sitting between 70–73K. These higher timeframe liquidity pools often act as magnets when they build in size.”
The BTC spot flow data adds further context. Binance spot printed roughly $7.79 million in positive delta during the breakout leg, Coinbase added about $1.16 million, and OKX contributed nearly $3.7 million.
The positive delta across venues signals aggressive spot bidding rather than isolated derivatives-driven activity. With leverage use reduced and loss-driven selling falling, the market’s attention shifts to how the price may react around the $71,500 liquidity band.
Related: Will Bitcoin crash if oil prices hit $100 per barrel?
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
Bitcoin price surged to $69,000 Tuesday before a correction, putting it on pace for its strongest daily performance in nearly a week, as VanEck CEO Jan VanEck suggested the world’s largest cryptocurrency may be carving out a cyclical bottom.
Summary
- VanEck CEO says 2026 represents Bitcoin’s typical bear-cycle year but believes a bottom may be forming.
- Bitcoin rallied 6%, rebounding from strong support near the $60,000–$62,000 zone.
- A break above $70,000 could confirm a broader recovery, while rejection may prolong the correction.
Speaking on CNBC, VanEck framed 2026 as the fourth year in Bitcoin’s historical halving cycle, a period that has typically coincided with steep drawdowns following three consecutive years of gains.
“That’s why we’re in a Bitcoin bear market,” he said, pointing to the asset’s programmed supply cap of 21 million coins and its four-year halving mechanism, which reduces miner rewards and has historically shaped boom-and-bust patterns.
Despite acknowledging the broader downturn, VanEck said recent price action could represent “a very nice sign of life,” adding that he believes the market may be in the process of bottoming.
The move higher was not isolated to Bitcoin. VanEck noted that the entire crypto complex, including large-cap tokens and publicly traded firms such as Coinbase and Circle, participated in the rally.
However, he cautioned against reading too much into a single day’s action.
Bitcoin eyes break above $70K as bottoming pattern forms
Technically, Bitcoin has rebounded from February lows near the $60,000–$62,000 range and is now consolidating around $67,000.
The area around $60,000 has acted as firm support following a sharp rejection lower last month, suggesting buyers are stepping in at that level.
Immediate resistance stands near $70,000, with a broader supply zone between $75,000 and $80,000.
Momentum indicators show selling pressure easing, while volatility has stabilized after February’s spike, conditions that often accompany base formation.
A sustained break above $70,000 would strengthen the case that a cyclical bottom is in place, while failure to hold current levels could reinforce the longer-term bear narrative.
Charles Hoskinson says the CLARITY Act will create a “security by default” trap for new cryptocurrency projects.
Cardano founder Charles Hoskinson has launched a blistering attack on the CLARITY Act, the flagship U.S. crypto market structure bill, labeling it a “horrific trash bill” that would classify nearly all digital assets as securities by default and hand a “weaponized” Securities and Exchange Commission (SEC) the power to stifle the industry for years.
His comments deepen a growing split among crypto leaders as lawmakers push to finalize the rules before the midterm cycle intensifies.
Dismantling the Bill’s Mechanics
In a March 3 YouTube broadcast, Hoskinson moved beyond political rhetoric to present a detailed, technical critique of H.R. 3633, the Digital Asset Market Clarity Act of 2025.
He argued that the bill, as drafted, creates a regulatory Catch-22 that would be “a wet dream” for an adversarial SEC. The core of his argument rests on the bill’s “security by default” framework for newly created digital assets.
He asserted that under this structure, every new project, from XRP and Ethereum at their launches to any future protocol, would be classified as an “investment contract asset” and fall under SEC jurisdiction.
The path to graduating to a “digital commodity” regulated by the CFTC, the developer warned, is a bureaucratic minefield. He outlined several “attack vectors” where the SEC could exploit rulemaking authority to indefinitely trap projects in security status, including impossible-to-prove standards for decentralization and subjective “value attribution” tests.
“This is not a good bill,” Hoskinson said. “Through rulemaking, it can become horrific and weaponized and it doesn’t cover the core of what’s going on in the industry right now.”
He stressed that while established projects like Cardano and XRP might be “grandfathered in,” the legislation would force all future American crypto innovation to launch overseas, effectively killing the domestic industry.
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An Industry and Washington at an Impasse
While the CLARITY Act passed the House in 2025, it has stalled in the Senate. The White House had issued a March 1 deadline for stakeholders to bridge their differences, but the date passed with no public compromise reported.
The primary holdup, as Hoskinson noted, is not the structural issues he raised, but a fierce lobbying battle over stablecoin rewards, which the banking industry warned could trigger a massive exodus of deposits.
The divide has splintered the crypto industry, with Ripple CEO Brad Garlinghouse, who has predicted a 90% chance of the bill becoming law by April, continuing to champion it, arguing that “clarity beats chaos” and that the industry cannot let “perfection be the enemy of progress.”
Ripple CTO David Schwartz also weighed in on the debate on X, acknowledging the tightrope walk, stating that while his company tries not to advocate to the detriment of others, “a sub-optimal bill is better than no bill at all.”
However, the Cardano founder countered that view, claiming that a bad bill would enshrine into law every single thing former SEC Chair Gary Gensler was “trying to do to the industry.”
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US spot Bitcoin funds opened the week with strong inflows, extending last week’s rebound even as conflict in the Middle East escalated.
Bitcoin (BTC) exchange-traded funds (ETFs) recorded $458.2 million of inflows on Monday, extending last week’s $787.3 million in net inflows, according to data from SoSoValue.
The latest gains pushed cumulative net inflows to $55.3 billion. Trading volume climbed to about $5.8 billion, the highest level since early February.
The inflows came as Bitcoin rose about 3% on Monday, according to CoinGecko data. Analysts cited strong spot buying from US investors, while some industry observers pointed to improving sentiment in spite of the geopolitical risks of the expanding Middle East conflict.
BlackRock leads inflows as altcoin funds add to gains
Altcoin ETFs shared positive momentum, though on a smaller scale. Ether (ETH) funds drew about $39 million, while Solana (SOL) and XRP (XRP) products recorded $17 million and $7 million in inflows, respectively.
Among Bitcoin funds, BlackRock’s iShares Bitcoin Trust (IBIT) led with $264 million in inflows, according to Farside data.
Fidelity’s Wise Origin Bitcoin Fund (FBTC) followed with about $95 million, and Bitwise’s Bitcoin ETF (BITB) added $36 million.
BTC holds steady as traders absorb US-Iran tensions
Samson Mow, CEO of Jan3 and a long-time Bitcoin advocate, took to X on Monday to note that Bitcoin held steady through the weekend despite rising uncertainty over the strikes on Iran on Saturday.
“There was downward pressure but we just bounced back up each time,” Mow said, adding: “It definitely feels different than from previous months.”
A similar perspective was shared by analysts at CryptoQuant, who said Bitcoin’s short-term holders “aren’t blinking” yet amid the Iran escalation.
“The sell-side pressure from recent buyers is fading. Panic is being replaced by patience, or at least exhaustion,” the analysts said.
Related: Iranian crypto outflows spike 700% after US-Israeli airstrikes
VanEck CEO Jan van Eck added to the optimism, saying in a Monday interview with CNBC that Bitcoin is approaching a bottom. He said BTC is set to gradually pick up this year, noting that the four-year halving cycle has been a key driver of price over the past few months.
On Monday, JPMorgan reportedly said that rising Iran tensions are a buying opportunity, not a reason to exit stocks. Analyst Mislav Matejka said the “current geopolitical escalation should ultimately be an opportunity to add, as fundamentals are positive,” even as markets brace for volatility.
Magazine: Would Bitcoin really be at $200K if not for Jane Street? Trade Secrets
Day four of the Middle East conflict is bringing renewed volatility to global markets during Tuesday’s pre-market, with a clear shift toward risk off positioning.
Bitcoin is down 3% over the past 24 hours, slipping below $67,000 after briefly touching $70,000 on Monday. In equities, the Invesco QQQ (QQQ) ETF closed slightly higher to start the week but is now down about 2% in pre market trading.
Metals are also under pressure. Gold and silver are both lower, with gold holding above $5,300 per ounce and silver sliding another 4% to around $85 per ounce.
In energy markets, WTI crude oil is above $74 per barrel up 5% over the past 24 hours, nearing Sunday futures highs just above $75. Meanwhile, the US dollar is strengthening sharply, with the DXY index climbing above 99, a level not seen since Jan. 20.
Treasury yields are edging higher across the curve. The US 10 year yield is holding firmly above 4% and pushing toward 4.1%, reflecting persistent rate pressure.
Crypto related equities are tracking bitcoin lower. Strategy (MSTR), the largest publicly traded holder of bitcoin, is down 2%. Coinbase (COIN) has fallen 5%, Galaxy Digital is off 3%, and AI focused miners IREN (IREN) and Cipher Digital (CIFR) are also down roughly 4%.
Disclosure: The views and opinions expressed here belong solely to the author and do not represent the views and opinions of crypto.news’ editorial.
The 2021 to 2025 crypto market cycle left a trail of broken trust, with countless scams and rug pulls making everyday users feel like they were just exiting liquidity. But 2026 marks a critical turning point. The arrival of staking rewards through regulated products like ETFs signals a broader shift toward sustainable, verifiable rewards.
Summary
- Dormant capital signals distrust: Millions of undelegated SOL wallets show retail isn’t disengaged, it’s cautious. Users prefer inactivity over opaque risk.
- Trust requires principal protection: Savings models like Premium Bonds and Save to Win prove that transparent rewards + protected capital build long-term participation.
- Crypto must shift from hype to habit: Verifiable on-chain rewards, native staking by default, and incentives for consistent saving can redefine the next market cycle.
The next great crypto rally won’t come from more speculative hype. Instead, it will be driven by products that redesign incentives to mimic the simple, trusted mechanics of saving: clear rules, steady rewards from transparent sources, and absolute protection of your starting capital.
Idle retail capital highlights a deep trust gap
Previous crypto cycles were structurally optimized for insiders. Advantages in speed, information, and capital created an environment where retail participants consistently arrived late to high-risk trades.
The result is a deep and persistent trust gap, and the on-chain evidence is impossible to ignore. A massive pool of dormant capital on Solana (SOL) proves that while the industry has captured people’s attention, it has failed to earn their sustained participation.
Currently, more than 2 million Solana wallets holding between 1 and 100 SOL remain undelegated. This means their assets aren’t used to secure the network, and that over 14 million SOL are sitting on the sidelines. Compare this to the less than 560,000 wallets in the same capital bracket that are actively staking.
What we are seeing here isn’t user apathy. It is a rational response to an ecosystem where the safest option, native staking, offers rewards that feel economically meaningless for smaller holdings, while the alternatives are correctly perceived as high-risk ventures. This idle capital is the market’s clearest signal that something fundamental needs to change.
Savings mechanics inspired by regulated markets
To bridge this trust gap, crypto must default to behaviors that feel like saving, not speculating. This means simple, repeatable actions: deposit, hold, and add regularly. Crucially, the rewards for these actions must come from transparent and verifiable network sources, like Solana’s native inflationary rewards.
As I see it, the era of mysterious, black box DeFi models, where users rightly suspected they were the source of the rewards, has to end. Instead of reinventing the wheel, we can learn from systems that have earned public trust for decades.
Take the UK’s Premium Bonds as an example. This government-backed savings product has been trusted for over 70 years. Its mechanic is simple: your capital is 100% protected. Instead of earning typical interest, savers get a chance to receive periodic reward allocations.
Premium Bonds’ scale is enormous, with over 24 million participants and £134.6 billion in savings. In 2025 alone, £4.95 billion was distributed. It proves that a system built on absolute capital protection can build immense, long-term trust while still offering a chance at a meaningful outcome.
Introducing a similar model in the U.S., Save to Win operates through special savings accounts at credit unions. By depositing a minimum amount, a saver gets entries into periodic reward distributions.
Again, the saver’s original money is never at risk. A study showed 56% of participants were first-time savers, proving the model effectively builds healthy financial habits. These regulated systems show that adding engaging layers to savings works, but only when built on transparency and capital protection.
The principles for a fairer on-chain economy
For crypto builders looking to define the 2026 to 2028 cycle, these principles should be non-negotiable. Verifiable rewards should come first. Instead of opaque APYs, all rewards must originate from transparent, on-chain sources like native network inflation.
Second, platforms and protocols must protect beginners by default. The safest path, native staking, should always be the easiest and most accessible. New users shouldn’t be pushed toward high-risk activities as their first experience.
Third, good habits should always be rewarded. The system must incentivize behaviors that promote long-term health: regular saving, long-term holding, and consistent participation. It must feel like financial progress is possible, even with small amounts.
The new mantra for builders should be “slower but clearer.” This is how we prepare for the next phase of sustainable growth, moving away from short-term hype.
From speculation to savings
Crypto’s next wave of adoption won’t be driven by a new token or a flashy new trend. It will be powered by products that feel fundamentally fair, safe, and savings-oriented to everyday people.
This is a call to action for the entire industry. Builders, investors, and even regulators must work to standardize these mechanics. We need to prioritize principal-protected incentives, demand transparent reward sources, and design systems that reward sound financial habits.
If we successfully make this shift, crypto can finally achieve the same level of ingrained trust as traditional savings vehicles. This is how we unlock the vast sea of dormant capital sitting on the sidelines.
NEAR Protocol, Virtuals, and Morpho crypto stood as some of the best performers on Tuesday amid a broader market rebound back above the $2.4 trillion mark.
Summary
- NEAR Protocol, Virtuals and Morpho led altcoin gains with double-digit rallies on Tuesday.
- NEAR, VIRTUALS benefited from positive developments across the AI sector alongside project-specific catalysts.
- Morpho rallied following the launch of the OKX Onchain Earn product on the protocol.
According to data from CoinGecko, the global crypto market rose 5% to $2.45 trillion before stabilizing around $2.4 trillion at press time. The market recovery was largely fueled by Bitcoin, the bellwether’s rally on Monday with the flagship crypto jumping from intraday lows near $65,000 to over $69,800 in a matter of hours.
Besides this, investor appetite for risk assets also returned after U.S. manufacturing data exceeded market expectations, fueling optimism surrounding Fed rate cuts this year.
The crypto market recovery triggered a short squeeze across major crypto assets. Data from CoinGlass shows nearly $202 million worth of short positions were liquidated in the past 24 hours, out of the total $331 million liquidated from both sides across leveraged markets.
Amidst this volatility, NEAR Protocol, Virtuals, and Morpho emerged as the standout winners. These assets capitalized on the easing market sentiment to post double-digit gains.
NEAR Protocol (NEAR) was the strongest gainer of the day with its 24% rally to a 5-week high of $1.45 on Monday. The surge extended its weekly gains to over 50%.
The AI token’s gains follow AI chip-making giant Nvidia announcing a multiyear strategic partnership with Coherent Corp, a global leader in photonics and networking, to advance its optical interconnect technology.
As part of the agreement, Nvidia would be investing $2 billion in Coherent to support research and development, along with expanding manufacturing capacity.
NVIDIA shares rose by 2.93% shortly after the announcement, sparking a broader rally in AI-focused cryptocurrencies. The partnership also comes just days after the chip giant revealed bullish quarterly earnings, easing fears of a slowdown in AI spending.
As Nvidia is the market bellwether for artificial intelligence, its bullish earnings and stock rally serve as a major impetus for related assets such as NEAR Protocol.
Project-specific catalysts, including the launch of Near FM and Near Intents has also supported the recent rally.
Virtuals Protocol
Virtuals Protocol (VIRTUAL) rose over 15% today to $0.79, its highest price since late January this year. The gains followed after it broke out of a consolidation from the $0.60-$0.75 range it had been stuck within over the past week.
Besides sharing the AI market hype surrounding Nvidia news and its stock gains, the agentic AI coin also benefited from strengthening fundamentals supporting it.
In a recent X post, the Virtuals Protocol team revealed that agent transactions on the network soared by around 128% over the past two weeks, as 3,421 agents competed in Epoch 2 of its AI revenue incentives program. Agent-to-agent revenue reached $2.8 million during the period, with roughly $200,000 distributed to builders.
The team also outlined upgrades for Epoch 3 aimed at tightening reward quality and making it materially harder to manufacture artificial signal, with a stronger focus on genuine demand and sustained utility.
Morpho
Morpho (MORPHO) rose 11% on the day to $1.97, extending its weekly gains to around 25%.
Morpho’s gains today can be largely attributed to a surge in network activity following the launch of the OKX Onchain Earn product on the Morpho protocol. The event includes a 65 million KAT (Katana Network) reward pool for users staking USDT on the protocol.
At the same time, there’s also noticeable chatter around Apollo Global’s recent commitment to the protocol, which has provided a strong fundamental backstop for the current price action. Under a newly established four-year cooperation agreement, the $940 billion asset manager is authorized to acquire up to 90 million MORPHO tokens, representing roughly 9% of the total supply.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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