The cryptocurrency market is looking at the wrong signals, and a massive shift in how the world’s financial networks operate is happening quietly behind the scenes.

In a keynote address at the Proof of Talk conference in Paris, Tom Lee, head of Research at Fundstrat and Chairman of Bitmine Immersion Technologies (BMNR), told his audience that ether (ETH) is experiencing significant changes that will eventually drive up its price to $250,000. While Lee did not provide a specific timeline for the target, he did map out the infrastructure shifts driving the network toward that value.

Ether on Tuesday was changing hands at $1,906, down 6% over the past 24 hours.

Lee’s Bitmine firm is one of the largest corporate holders of Ethereum. Bitmine ramped up ETH purchases last week, making its most significant since December. It bought 111,942 ether (ETH) worth around $237 million at current prices. That lifted the firm’s holdings to almost 5.4 million ETH, about 4.47% of ether’s circulating supply.

“If a thesis is correct and Ethereum is going to break out of this consolidation, and the consolidation breakout is tokenization and AI, you know, I think that that’s probably 50X or so—significant upside for Ethereum. If Ether realizes, is correct, and Ethereum goes to $250,000, that values Bitmine stock at $5,000. It’s a bargain at $18.”

Multi-trillion-dollar growth

Lee explained that this multi-trillion-dollar growth will be driven by artificial intelligence. As advanced software and automated computing take over the internet, machines will need a way to pay each other instantly without relying on slow, traditional bank wires.

“Robots are already going to dominate most traffic on the internet,” Lee stated. “And this is why Andreessen Horowitz and others have talked about this as being the great unification because if you’ve got robot systems, you’re going to have to control them. And that’s where blockchain is much more effective than traditional rails for controlling what robots do. Whether it’s authentication or identity or payment speed, all of these work better on crypto systems.”

Because of this machine-to-machine economy, Lee believes Ethereum will transform from a speculative digital asset into the primary global currency for paying for automated computer processing power.

Ethereum Foundation death

This systemic growth is completely changing how the underlying blockchain networks are managed. Lee pointed out that the non-profit Ethereum Foundation has spent years shrinking its own footprint, dropping its network holdings down to just 100,000 ETH—accounting for a tiny 0.1% of the total supply.

In its place, massive public companies are stepping in to run the network as corporate validators. Corporate entities like Bitmine and Sharklink now collectively control 7% of the entire circulating Ethereum supply. Instead of relying on foundation grants, these corporate treasuries now generate $500 million in staking rewards each year to fund the ecosystem themselves.

To demonstrate the value of this model, Lee announced a major regulatory milestone for Bitmine, which trades on the New York Stock Exchange under the ticker BMNR.

“Bitmine also meets the eligibility criteria to be added to the Russell 1000,” Lee revealed. “The inclusion date is June 26. Why does that matter? Well, the Russell 1000 is the most widely tracked index in the world… Every fund manager in the world who is benchmarked against the Russell 1000—and that’s over $4 trillion worth—will have to decide if they want to own Bitmine.”

Lee explained, with graphics behind him, that holding an active corporate validator stock significantly outperforms buying spot crypto. Over a baseline six-month stretch, holding regular spot ETH generated a modest 22% return, while Bitmine’s staking architecture returned 500% to its investors.

For Lee, the massive structural growth of corporate staking and AI utility completely overrides any temporary market panic. “If you are bearish today, you are selling at the bottom,” Lee concluded. “And again, I can’t emphasize thinking, if you’re bearish today, you are bearish at the bottom for Bitcoin and Ethereum.”

Key takeaways

• HYPE hit a new all-time high of $75 on Tuesday, driven by rising institutional demand amid broader market weakness.
• Grayscale has advanced plans to launch its spot Hyperliquid ETF HYPG this week.

Hyperliquid’s native token, HYPE, surged to a new all-time high of $75.52 on Tuesday, extending its recent rally as growing institutional interest and expanding ecosystem activity continue to drive demand.

Grayscale to launch a Hyperliquid ETF

A key catalyst behind HYPE’s latest gains is increasing competition in the exchange-traded fund (ETF) market. 

Grayscale is preparing to enter the race with a spot Hyperliquid ETF after filing an amended S-1 registration statement with the U.S. Securities and Exchange Commission (SEC).

Bloomberg ETF analyst James Seyffart noted that the amendment suggests the fund could launch in the near future, potentially within days. 

The proposed ETF will trade under the ticker HYPG and carry a management fee of 0.29%, undercutting competing products.

Institutional appetite for HYPE has already been demonstrated by the success of Bitwise’s Hyperliquid ETF, BHYP. The fund attracted roughly $20 million in inflows on Friday, marking its largest single-day inflow since launch.

After just 11 trading days, BHYP has surpassed $100 million in assets under management (AuM), supported by cumulative inflows of $81.8 million. The ETF has also generated average daily trading volumes of $35.1 million.

Bitwise has further aligned itself with the Hyperliquid ecosystem by committing to hold 10% of its annual management fees in HYPE tokens on its balance sheet for at least 12 months.

According to onchain analytics platform Lookonchain, Bitwise purchased an additional 336,474 HYPE tokens, valued at approximately $24.4 million, over the past 24 hours.

The latest acquisition highlights continued institutional accumulation as investors seek exposure to the rapidly growing Hyperliquid ecosystem.

Hyperliquid price outlook: HYPE retraces after reaching a new all-time high

Despite reaching a record high of $75.52 earlier in the day, HYPE was trading at $72.28 at the time of writing, up by 1% over the previous 24 hours. 

However, the token remains one of the strongest-performing digital assets as institutional adoption and ETF-related demand continue to accelerate.

The RSI of 65 shows that HYPE is bullish but is yet to enter the overbought region, creating room for further growth.

If the bullish trend persists, HYPE could extend its rally and create a new all-time high around the $80 level.

However, if the pullback extends, HYPE could retest the Sunday low of $67. An extended bearish trend could see HYPE drop below $60 for the first time since May 28.

New reporting from Bitwise suggests that Bitcoin’s (BTC) undervaluation could expand if investors’ concerns over sovereign debt deepen. The asset management firm said that mounting pressure in global bond markets and rising government debt levels could strengthen Bitcoin’s role as a hedge against macroeconomic risks, with one valuation model suggesting a theoretical fair value of $224,000. 

Debt market turmoil may support Bitcoin in the long-term 

Bitwise pointed to mounting pressure across the global bond markets. The Organization for Economic Co-operation and Development (OECD) estimates governments and companies will need to borrow roughly $29 trillion in 2026, up 17% from 2024 and nearly double the amount raised a decade ago. Around 78% of OECD government borrowing is expected to be used solely to refinance existing debt.

10-year sovereign swap spreads across nations. Source: Bitwise

Bitwise noted that Japan remains a key focus. The country’s 10-year government bond yield recently climbed to 2.78%, while its 30-year bond yield reached a record high. At the same time, Japan’s public debt stands near 230% of GDP, among the highest levels in the current macroeconomic environment.

The report noted that Japanese investors hold approximately $1.2 trillion in US Treasurys, but higher domestic yields are making overseas bonds less attractive. Currently, the 10-year Japanese bond yield is 2.66% on Tuesday, compared to 2.19% for Yen-hedged 10-year US Treasurys, potentially encouraging capital to return to domestic markets.

Bond market stress is not limited to Japan. US 30-year Treasury yields recently reached 5.11% on May 11, its highest level since 2007, while sovereign risk premiums, measured through 10-year swap spreads, have risen to their highest levels since the European debt crisis of 2011-2012.

While these trends could weigh on risk assets in the short term, Bitwise believes a deeper bond-market disruption could eventually become a bullish catalyst for Bitcoin if central banks are forced to inject liquidity to stabilize financial markets.

Bitcoin probability of default vs model value. Source: Bitwise

The firm cited a model developed by investor Greg Foss that values Bitcoin at roughly $224,000 if it gains broader adoption as a hedge against sovereign default risk. Bitwise stressed that the figure is a theoretical estimate rather than a price target.

Despite the long-term bullish case, the report noted that Bitcoin may remain range-bound in the near term as higher real yields and tighter financial conditions continue to pressure demand.

Related: Bitcoin back in ‘distribution phase’ as extreme fear grips crypto market

Declining real yields may improve Bitcoin’s macro backdrop

Bitwise noted that Bitcoin’s near-term outlook may depend heavily on real interest rates, which measure the Federal Reserve’s policy rate after adjusting for inflation. In the report, real rates are calculated as the Fed Funds rate minus US CPI inflation. Historically, Bitcoin has tended to perform well when real rates fall, as cash and bonds become less attractive in inflation-adjusted terms. 

Bitcoin vs year-on-year change in US real rates. Source: Bitwise

The firm noted that Bitcoin’s 2021 bull market coincided with declining real rates, while the 2022 bear market unfolded alongside rising real rates and aggressive monetary tightening. Although real rates remain restrictive, Bitwise said that a scenario in which inflation rises while the Fed keeps rates unchanged could push real rates lower, potentially creating a more supportive backdrop for Bitcoin. 

Meanwhile, Bitcoin researcher Sminston outlined that BTC could trade between $90,000 and $255,000 by the end of 2026, based on the Bitcoin Decay Channel, a logarithmic price model that has historically identified major cycle tops and bottoms. The analyst noted Bitcoin’s recent rebound emerged near the model’s long-term support zone, keeping the broader bullish outlook intact. 

Related: Bitcoin volatility is down 56% but analysts still expect up to 20% BTC price move

Coinbase Ventures, the investment arm of crypto exchange Coinbase (COIN), said it had backed Ethena (ENA), buying the protocol’s token on the open market as the two firms prepare to launch a new onchain savings product for the exchange’s more than 100 million users.

Ethena announced Tuesday that it partnered with Coinbase to expand onchain finance and savings offerings, with the first initiative scheduled to launch next week.

“Excited to partner with Coinbase for the first time to support their dollar savings products,” Ethena founder Guy Young said in a post on X. “The upcoming integration next week will be the first time Ethena products are available for their 100m+ user base.”

As part of the deal, Coinbase said it is already Ethena’s primary custodian, wallet provider and perpetuals venue, while the protocol’s USDe yield token will be distributed on the Base network and the “wider [Coinbase] ecosystem.”

ENA, Ethena’s governance token, surged 20% following the news before paring gains. The token was up 3% over the past 24 hours despite the broader crypto market pullback.

The investment marks a notable endorsement from Coinbase as Ethena seeks to expand beyond crypto-native users. Ethena emerged as one of crypto’s fastest-growing protocols, combining stablecoin demand with derivatives-based funding strategies to provide yield to investors in a token form. Assets on the protocol swelled to $15 billion by the October market peak, but since then declined to $5.3 billion as demand and yields vaned amid the crypto downturn.

The announcement comes as lawmakers continue to debate the CLARITY Act, a market structure bill that could provide a clearer regulatory framework for crypto products in the U.S. Young said the legislation could create additional tailwinds for onchain-native assets such as USDe, Ethena’s synthetic dollar token.

Tapping into Coinbase’s user base

While neither company disclosed details of the upcoming product, investors speculated the partnership could significantly expand Ethena’s distribution.

Access to Coinbase’s user base could provide a new source of capital as the protocol seeks to expand beyond decentralized finance into mainstream crypto brokerage platforms.

Yan Liberman, managing partner at Delphi Ventures, an investor in Ethena, said the deal could potentially connect Coinbase’s roughly $19 billion USDC stablecoin ecosystem with Ethena’s yield-generating infrastructure.

“If sUSDe yields clear baseline USDC rates, Coinbase can offer better USDC lending yields,” Liberman wrote on X. “Ethena gets deeper and cheaper funding than native DeFi alone.”

Expansion to institutional credit market with Anchorage

Ethena is also pushing deeper into institutional markets.

On Tuesday, the protocol and crypto bank Anchorage Digital said it had broadened its partnership with Ethena to support institutional lending.

Under the arrangement, Anchorage will manage collateral for Ethena’s loan investments through its Atlas platform, allowing borrowers to keep assets in custody rather than moving them onchain.

The setup aims to make crypto-native lending more accessible to institutions that require regulated custody and compliance controls.

“Institutions want access to crypto-native capital, but not at the cost of custody, controls, or operational rigor,” Anchorage CEO Nathan McCauley said in a statement.

The announcement builds on an existing relationship between the firms. Anchorage Digital Bank already serves as the U.S. issuer of Ethena’s USDtb stablecoin.

Key Insights

• Speculative behavior is prevalent in the cryptocurrency market, especially leveraged trading and memecoins
• Vitalik Buterin, co-founder of Ethereum, is once again highlighting the need for real use cases for blockchain technology
• The builders and traders of crypto are split regarding what lies ahead for the industry

Utility Questioned as Speculation Grows More Prevalent in the Market

The issue of crypto utility has recently re-entered the spotlight, as the digital asset market seems to place more emphasis on speculation rather than practical applications of blockchain technology. Although blockchain solutions were introduced as revolutionary technology intended to disrupt traditional spheres like finance, personal data storage, and digital ownership, recent developments show that speculation continues to be a major driving factor in the crypto space.

Whether cryptocurrencies and other technologies built atop blockchain are becoming more decentralized or are simply drifting from their original vision is a question the industry often debates. This debate has become sharper as leverage products, memecoins, and volatile tokens have attracted increasing amounts of capital in various crypto markets. Utility versus speculation has once again emerged as a key topic for discussion.

Speculative Activities Gaining Momentum

In a recent debate on platform X, there were renewed warnings about the growing presence of speculative activities in the cryptocurrency space. The discussion emphasized that market actors still seem to opt for risk-reward games even amid calls to emphasize utility-driven developments.

Trading on margin continues to be one of the major drivers of market activity. Traders have increasingly turned to leveraged positions to amplify profits, which often results in short-term price fluctuations rather than long-term investing. Leveraging can boost returns in favorable conditions but also increases overall volatility.

Memecoins are still gaining traction. Cryptocurrencies spawned from internet trends and culture have seen huge trade volumes while often delivering little in the way of practical utility. Finally, another class of instruments receiving attention is perpetual trading products that reflect specific narratives or events in the market environment.

Ethereum’s Original Vision Returns to Focus

The discussion also referenced concerns frequently raised by Ethereum co-founder Vitalik Buterin regarding the long-term direction of the industry. Buterin has consistently emphasized the importance of building meaningful blockchain applications that solve real-world problems rather than focusing exclusively on market speculation.

When Ethereum launched, its vision extended beyond simple cryptocurrency transactions. The platform introduced programmable smart contracts, enabling developers to create decentralized applications that operate without traditional intermediaries. This innovation opened the door to a wide range of use cases, including decentralized finance (DeFi), digital identity solutions, tokenized assets, and decentralized governance systems.

Over the years, Ethereum became the foundation for many significant developments within the blockchain sector. These innovations showed how distributed ledger technology can provide practical benefits across numerous industries. However, critics argue that excessive speculation risks overshadowing these advancements. As capital increasingly flows toward short-term trading opportunities, utility-focused projects may struggle to attract the same level of attention and investment.

Builder Versus Traders Continue to Split Apart

There have been noticeable differences among various communities in the crypto world. In particular, there is a growing divide between builders, technologists, and developers who focus on creating robust technological platforms to promote blockchain adoption, and traders who concentrate on liquidity and volatility. Builders aim to develop technologies that provide real value to the industry.

Traders focus on generating fast profits through speculative trades. These differences tend to be more pronounced when crypto markets are performing well, as traders chase quick gains using risky products. Nonetheless, speculators remain relevant because they contribute to market liquidity and participation.

Cryptocurrency Utility’s Future Is Still Unclear

Such conflicting opinions illustrate one of the most relevant issues in the digital asset world right now: what will create value in the long run? Proponents of utility-oriented projects believe blockchain will succeed by offering solutions and real-world applications. Supporters of the market’s speculative side argue there is nothing wrong with betting on a potential future success story. For now, both trends shape the evolution of cryptocurrency markets.

The debate is likely to continue as capital, talent, and attention shift between building and trading. Stakeholders will watch which model attracts sustained adoption and real economic activity.

TLDR

• Microsoft launched MAI-Code-1 to generate source code from written prompts.
• MAI-Code-1 is available through GitHub Copilot and Visual Studio Code.
• Microsoft introduced MAI-Thinking-1 as a reasoning model focused on lower token costs.
• MAI-Thinking-1 is available in private preview through Microsoft Foundry.
• Microsoft is building more in-house AI models while still partnering with OpenAI and Anthropic.

Microsoft used its Build conference in San Francisco to introduce new in-house AI models for developers. The company launched MAI-Code-1 for software generation and MAI-Thinking-1 for reasoning tasks.

Microsoft Enters AI Coding With MAI-Code-1

MAI-Code-1 turns written prompts into source code for applications and websites. Microsoft introduced the model as demand grows for text-based software development tools. Developers now use natural language prompts to build code, interfaces, and basic products. This practice has gained attention under the “vibe coding” label.

Microsoft placed MAI-Code-1 inside GitHub Copilot and Visual Studio Code. That gives the coding model direct access to the company’s developer user base. Kyle Daigle, Microsoft’s developer marketing chief and GitHub operating chief, described the model as “inference ultra-efficient.”

The company used that point to highlight lower operating demands. The new model also gives Microsoft more control over AI coding costs. The company can run its models on Azure instead of paying outside model providers.

MAI-Thinking-1 Targets Reasoning at Lower Token Costs

Microsoft also introduced MAI-Thinking-1, a reasoning model built for performance and cost control. The company positioned the model as medium-sized and efficient. Daigle wrote that MAI-Thinking-1 was “built for high efficiency and performance.” He added that it runs “at a low token cost.”

Developers use tokens to pay for AI model input and output. Therefore, lower token costs can reduce spending for companies that run large workloads. MAI-Thinking-1 has entered private preview through Microsoft Foundry.

The service helps customers integrate AI models into software applications. Customers can register interest before Microsoft makes the reasoning model widely available. The company has not provided a full release date for broader access.

Microsoft Builds More of Its Own AI Stack

Microsoft has invested heavily in leading AI companies while building its own systems. The company committed $13 billion to OpenAI and $5 billion to Anthropic. It also offers OpenAI and Anthropic models through Azure cloud services. However, its new models give developers another path inside Microsoft’s own ecosystem.

The company’s strategy comes as OpenAI and Anthropic pursue public market plans. As we had reported, Anthropic confidentially filed for an initial public offering on Monday. OpenAI has also explored a possible offering this year, according to the report. Both companies have recorded strong growth during the current AI cycle.

Microsoft faces competition from Google, which released Gemini 3.5 Flash in May. Google designed that model for coding and other tasks inside its own data centers. At Build, Microsoft also announced updated cloud models for speech recognition and synthetic voice generation. It also revealed image generation updates and small Aion models for Windows PCs.

Galaxy Digital (GLXY) said Tuesday it had launched over-the-counter (OTC) prediction markets trading for institutional investors, becoming one of the first major digital asset firms to offer large-scale access to event-driven markets through a bilateral trading framework.

The Nasdaq-listed company said that the new service, offered through its global markets trading desk, will allow hedge funds, family offices and other institutional investors to trade contracts tied to political, economic and geopolitical events while accessing liquidity and trade sizes typically unavailable through retail-focused prediction market platforms.

Shares of the company are down 6% on Tuesday, in line with the broader crypto stock market.

The launch comes as prediction markets have gained traction among investors seeking ways to express views on real-world events ranging from elections and central bank decisions to regulatory developments. Platforms such as Kalshi and Polymarket have experienced rapid growth over the past two years, with many crypto-native companies entering the market.

Galaxy said its offering initially covers non-sports event contracts traded on Kalshi and Polymarket, with plans to expand to additional venues. The firm will also allow clients to combine prediction market positions with hedges across equities, commodities and other asset classes, creating broader event-driven investment strategies.

As part of the launch, Galaxy facilitated a $10 million trade with crypto-focused hedge fund Arca tied to the outcome of the proposed CLARITY Act, legislation that would establish a regulatory framework for digital assets in the United States.

“Event-driven markets are becoming core to how sophisticated investors express macro views, and they deserve institutional infrastructure to match,” Jason Urban, Galaxy’s global co-head of digital assets, said in a statement.

Jeff Dorman, Arca’s chief investment officer, said prediction markets offered an effective way to hedge the fund’s exposure to ongoing negotiations in Washington surrounding crypto regulation, but that liquidity constraints on existing platforms made it difficult for large investors to participate directly.

The move reflects a broader institutionalization of prediction markets, a sector that has historically been dominated by retail traders. By acting as a principal counterparty, Galaxy can warehouse risk and facilitate larger transactions while providing greater discretion than exchange-based trading.

Earlier today, Polymarket completed its first block trade in a transaction between crypto broker FalconX and trading tech startup Anera Labs.

Industry observers say the entrance of firms such as Galaxy could help deepen liquidity and improve pricing efficiency in prediction markets by bringing professional investors into the space. Supporters argue that greater institutional participation could make market prices more useful as indicators of future outcomes, while critics caution that regulatory uncertainty remains a key challenge for the sector.

The launch further expands Galaxy’s growing derivatives and trading business. The New York-based firm, which provides institutional digital asset trading, asset management, staking and tokenization services, has increasingly positioned itself as a bridge between traditional financial markets and emerging digital asset infrastructure.