Crypto-related “wrench attacks” continued through the first half of 2026, with 52 verified incidents worldwide and $124.1 million in recorded financial exposure, according to CertiK. 

The total includes stolen funds, ransom demands, frozen assets and other values tied to documented cases, rather than only money confirmed as lost.

The number of attacks rose 33.3% from 39 cases in H1 2025. Recorded financial exposure rose much faster from about $10.5 million a year earlier. CertiK calculated a 1,079% increase, while average exposure per incident climbed from roughly $270,000 to $2.39 million.

Meanwhile, the first quarter drove most of the increase in attack frequency. CertiK recorded 35 incidents in Q1 2026, compared with 22 during the same period last year. Activity then slowed to 17 verified attacks in the second quarter, matching the Q2 2025 total.

CertiK cautioned that its financial figures are “indicative, not exhaustive.” Some victims do not report attacks, while public records may not show whether ransoms were paid, recovered or frozen. The company therefore treats the $124.1 million figure as recorded exposure rather than confirmed criminal proceeds.

The report also warned against simply doubling the first-half total to predict the full year. A repeat of the H1 pace would put 2026 near 100 verified incidents, but CertiK said the calculation is not a forecast because Q1 and Q2 showed different trends.

France accounts for most verified wrench attacks

Europe recorded 39 of the 52 verified attacks, or 75% of the global total. France alone accounted for 33 incidents in CertiK’s dataset, equal to 63.5% of all verified cases worldwide and 84.6% of Europe’s total. The U.S. recorded four incidents, while Sweden and the UK recorded two each.

The French total may be higher than CertiK’s verified public dataset. The report cited France’s National Directorate of Judicial Police as recording 41 incidents between January and March. CertiK said some cases can be classified as robbery, kidnapping, assault or extortion without a clear crypto label.

As crypto.news previously reported, France has stepped up its response. Prosecutors charged 88 suspects across 12 investigations by late April, while authorities also prepared prevention measures for crypto holders after a rise in kidnappings and home invasions.

Home invasions become the leading attack method

Home invasions showed the sharpest change. CertiK recorded 20 such incidents in H1 2026, up from one in the same period last year. The category accounted for about 41% of first-half attacks. Kidnappings increased from 12 to 16, while torture remained at four cases and murder at one.

Wrench attacks rely on physical force, threats or intimidation to make victims transfer crypto, reveal private keys or unlock wallets. This can bypass digital safeguards because an attacker targets the person controlling the assets rather than the wallet software itself.

Recent cases have also involved relatives and people close to crypto holders.The wife of The Sandbox co-founder Sébastien Borget was targeted in an attempted kidnapping in France. Other reports have described attackers using fake delivery workers to gain access to victims.

Security spending rises as threats move offline

The increase in physical attacks has pushed some crypto companies to spend more on executive protection. As previously reported by crypto.news, Coinbase spent about $8.7 million on security and protection costs linked to CEO Brian Armstrong in 2025, while Gemini agreed to pay $400,000 per month for executive protection services.

MARA also disclosed $4.3 million in security spending connected to CEO Fred Thiel, including $430,000 for vehicle armoring. These costs have grown as public executives, investors and founders face risks tied to visible crypto wealth and personal information available online.

CertiK advised holders to limit public information connecting their identity, location and routines to crypto ownership. It also recommended separating signing devices from recovery materials, using multi-party controls for large holdings and avoiding setups in which one person can instantly move all assets under pressure.

The firm also urged families to prepare emergency plans and advised high-risk users to keep sensitive accounts off devices used while traveling. For companies, it recommended tighter controls around employee and customer data, along with security reviews for executives, travel and public events.

The H1 report shows that attack frequency slowed after the first quarter, but the financial value connected to known cases remained far above last year’s level. France accounted for most verified cases, while home invasions became the most common attack method in CertiK’s dataset.

U.S. Securities and Exchange Commission Commissioner Hester Peirce has warned that some crypto vaults and onchain lending strategies may fall under federal securities laws, depending on how operators structure and manage them.

In a July 22 statement, Peirce said moving financial activity onchain does not remove legal duties when that activity already sits within the SEC’s regulatory scope. She urged developers and operators to examine how their products work instead of assuming blockchain technology places them outside existing law.

Peirce said the SEC has spent the past year and a half clarifying which crypto assets and activities fall under federal securities laws. She also stressed that a more tailored approach to crypto does not mean every product sits outside the agency’s reach.

“You will have a painful fall,” she said.

The warning targeted market participants who try to interpret the law in ways that exclude activities already covered by the securities framework. Peirce said companies whose products fall inside that framework should work with the SEC to find a compliant path.

Kazakhstan has approved a new regulatory framework for large-scale “strategic” crypto mining that ties access to electricity quotas at regulated tariffs to participation in a state-backed digital asset reserve. The rules were approved on July 18, according to Zakon.kz, which cited Government Resolution No. 638 published in Kazakhstan’s PRG.kz legal database.

Under the framework, designated miners receive electricity access in exchange for transferring part of the cryptocurrency they mine to Astana Hub, a government-supported technology cluster. The Kremlin of mining policy is likely to be felt first by industrial operators looking to scale, as the new model sets relatively high technical and infrastructure thresholds before a company can qualify.

Key takeaways

• Kazakhstan’s strategic digital mining rules link regulated electricity tariff access to transfers of mined crypto assets to Astana Hub.
• Applicants must meet infrastructure requirements, including a mining data center capacity of at least 150 MW and hardware with minimum 150 TH/s per unit.
• The framework introduces additional operational and compliance conditions, including staffing, repair capabilities, internet service contracts, and being current on tax and other payments.
• The government resolution is set to enter into force on Aug. 1, 2026.

Why Kazakhstan’s “strategic” model matters

Kazakhstan is widely recognized as one of the world’s largest Bitcoin mining jurisdictions. In the April 2025 Cambridge Digital Mining Industry Report, it ranked fifth globally by Bitcoin mining activity, according to the Cambridge Centre for Alternative Finance. The approval of this new framework suggests the country wants to keep mining activity moving while steering it into a more formal state-linked structure.

Investors and operators should pay attention to how the policy could change the economics of mining. Instead of purely commercial arrangements for power and site operations, “strategic” miners will gain access to electricity quotas at regulated tariffs, but in return they must participate in a reserve mechanism tied to Astana Hub. That trade-off effectively adds a new policy-driven cost component—sharing mined assets—while potentially improving power affordability for eligible participants.

Eligibility requirements: a high bar for applicants

The rules define strategic digital mining as an arrangement that grants miners electricity quotas at regulated tariffs, contingent on transferring a portion of mined assets to Astana Hub. Zakon.kz reports that applicants must satisfy strict prerequisites before they can be recognized as strategic miners.

Among the cited requirements, mining companies must:

• Own a digital mining data center with at least 150 megawatts (MW) of capacity.
• Use mining hardware where each unit has a minimum computing power of 150 terahashes per second (TH/s).
• Have qualified technical staff and repair facilities located at their data centers.
• Maintain multiple internet service contracts.
• Be current on required tax and other payments.

In addition, the rules place the operational burden on firms to demonstrate readiness beyond just having equipment and power. For large-scale operators, this may reinforce an industry shift toward purpose-built facilities and contracted power and connectivity. For smaller miners, it could mean the “strategic” pathway is out of reach even if electricity costs are attractive.

Electricity access traded for a mined-asset reserve

Once approved, strategic miners must enter into agreements connected to Astana Hub’s autonomous cluster fund and purchase electricity from eligible power-generating companies under the new framework. The policy is designed to function like a barter between subsidized or regulated electricity access and transfers into a reserve mechanism.

However, the precise transfer percentage is not stated in the publicly described summary of the rules. Local media cited a 10% transfer rate, but the article notes that Cointelegraph could not independently verify that figure. For market participants, that uncertainty is significant: even small changes in the transfer share can materially affect cash flow and treasury planning for mining firms.

The reserve mechanism also reflects a broader policy direction: Kazakhstan appears to be building state-linked digital asset infrastructure rather than leaving mining incentives entirely to market forces. This approach could influence how miners structure operations, including whether they treat mined reserves as liquid holdings or as assets bound by policy transfer obligations.

A wider state-backed crypto push

The strategic mining framework arrives as Kazakhstan expands the role of state-backed structures in the crypto sector. In September 2025, Kazakhstan launched the Alem Crypto Fund, described in earlier coverage as a state-backed vehicle focused on long-term digital asset reserves, with its first investment involving BNB through a partnership with Binance Kazakhstan (as reported by Cointelegraph).

Kazakhstan has also been moving toward regulated crypto-related financial services. In July 2026, Alatau City Bank and Binance Kazakhstan launched Crypto Pay, a service allowing users to make crypto payments via QR codes and point-of-sale terminals integrated into the bank’s acquiring network, according to the bank’s announcement on its website.

These steps—mining policy, a reserve fund, and payment infrastructure—point to a coordinated national approach: rather than treating crypto as a purely private activity, Kazakhstan is assembling mechanisms that funnel participation into government-supported platforms and compliance-oriented channels.

As the strategic mining rules transition from approval to implementation, the most important details to watch are how the reserve transfer works in practice—especially the actual share miners must contribute—and how the eligibility requirements will be enforced during the run-up to the Aug. 1, 2026 effective date. For miners, the next question is whether the promise of regulated electricity quotas will outweigh the added reserve transfer obligation for companies that qualify.

Introduction

For decades, moving money has been one of the slowest parts of the global financial system. While the internet allows emails, videos, and messages to travel across the world in seconds, international bank transfers can still take several business days. Businesses face settlement delays, individuals pay high remittance fees, and financial institutions rely on outdated infrastructure that was designed long before the digital era.

Blockchain technology is changing this reality.

By enabling direct, secure, and near-instant value transfer without relying on multiple intermediaries, blockchain is transforming how money moves. From cross-border payments and decentralized finance (DeFi) to stablecoins and tokenized assets, a new financial system is emerging—one where payments settle in minutes or even seconds instead of days.

Why Traditional Payments Are Slow

The traditional banking system relies on a network of intermediaries. When someone sends money internationally, the payment often passes through multiple correspondent banks before reaching the recipient.

This creates several problems:

• Settlement delays of 2–5 business days
• High transaction and foreign exchange fees
• Limited banking hours
• Manual compliance processes
• Greater operational risk

Each institution maintains its own ledger, so balances must be reconciled constantly before transactions are finalized.

The result is a financial system that prioritizes security—but often at the cost of speed and efficiency.

Blockchain Changes the Payment Model

Blockchain replaces isolated financial ledgers with a shared, distributed ledger where transactions are verified by network participants.

Instead of relying on multiple banks to update records independently, blockchain establishes a single source of truth.

Benefits include:

• Near real-time settlement
• 24/7 global availability
• Transparent transaction history
• Lower processing costs
• Reduced reliance on intermediaries

This shift allows value to move almost as easily as information travels across the internet.

Stablecoins Are Leading the Revolution

One of blockchain’s biggest breakthroughs is the rise of stablecoins.

Unlike volatile cryptocurrencies, stablecoins are pegged to fiat currencies such as the U.S. dollar.

Businesses increasingly use stablecoins for:

• International supplier payments
• Payroll
• Treasury management
• Cross-border settlements
• Merchant transactions

Because stablecoins operate on blockchain networks, transfers can settle within minutes while maintaining predictable value.

This makes them practical for real-world commerce rather than speculative investing alone.

Cross-Border Payments Become Borderless

International money transfers have traditionally been expensive.

Workers sending remittances often lose a significant percentage of their income to transfer fees.

Businesses encounter:

• Banking delays
• Currency conversion costs
• Compliance bottlenecks
• Liquidity management challenges

Blockchain enables peer-to-peer settlement across countries without requiring every transaction to pass through multiple financial institutions.

For developing economies, this could significantly improve financial inclusion by giving people faster and cheaper access to global financial services.

Decentralized Finance Extends the Possibilities

Blockchain payments are only one piece of a much larger transformation.

Decentralized Finance (DeFi) allows users to:

• Borrow assets
• Lend capital
• Earn yield
• Swap tokens
• Access liquidity

—all without traditional banks acting as intermediaries.

As payment infrastructure becomes faster, DeFi protocols can settle transactions almost instantly, creating financial products that operate continuously rather than during banking hours.

Tokenization Is Expanding Digital Finance

Blockchain is also enabling tokenized versions of:

• Stocks
• Bonds
• Treasury bills
• Commodities
• Real estate
• Carbon credits

Instead of waiting days for ownership transfers and settlement, tokenized assets can often move much faster on blockchain networks.

This reduces administrative costs while improving liquidity.

The combination of tokenized assets and instant settlement could reshape capital markets over the next decade.

Businesses Benefit From Faster Settlement

For companies, payment speed directly impacts cash flow.

When settlements take days:

• Capital remains locked
• Suppliers wait longer
• Inventory purchases slow
• Working capital becomes less efficient

Instant settlement allows businesses to recycle capital more quickly.

This can improve:

• Liquidity management
• Treasury operations
• International trade
• Vendor relationships

For small businesses especially, faster access to funds can significantly improve day-to-day operations.

Challenges Still Remain

Blockchain adoption is accelerating, but several challenges remain.

Regulation

Governments continue developing frameworks for digital assets, stablecoins, and decentralized financial services.

Scalability

Major blockchain networks continue improving throughput to support billions of users.

User Experience

Managing wallets, private keys, and blockchain addresses remains more complex than using traditional banking apps.

Security

Smart contract vulnerabilities and phishing attacks highlight the importance of education, audits, and secure infrastructure.

The Future of Payments

The future of finance is unlikely to replace banks entirely.

Instead, blockchain will increasingly become part of existing financial infrastructure.

Banks are already exploring:

• Stablecoin settlement
• Tokenized deposits
• Central Bank Digital Currencies (CBDCs)
• Real-time payment networks
• On-chain asset custody

Rather than competing against traditional finance, blockchain is steadily becoming one of its foundational technologies.

Conclusion

The era of waiting days for payments is gradually coming to an end. Blockchain is introducing a financial infrastructure where transactions can settle in near real time, operate around the clock, and reduce costs by minimizing intermediaries. Stablecoins, decentralized finance, and tokenized assets are no longer experimental concepts—they are actively reshaping how individuals, businesses, and institutions exchange value.

As adoption continues to grow, the future of finance will be defined not only by faster payments, but by a more connected, transparent, and accessible global economy. In that future, moving money could become as seamless as sending a message, marking the end of slow payments and the beginning of a new era in digital finance.

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Zilliqa has suspended native ZIL transactions after disclosing a critical flaw in its Ledger application that can allow attackers to recover private keys from public transaction signatures. 

The bug affected every released version of the app from 2019 through 2026 and applies to native, non-EVM transactions signed with Ledger devices.

The network said it observed onchain activity consistent with active exploitation on July 19 and confirmed the root cause on July 21. Zilliqa has prepared a corrected Ledger app build, but the fix cannot protect keys exposed through earlier signatures. Native transactions remained suspended in the latest official update while the team finalized a coordinated recovery plan.

Zilliqa Ledger bug weakened transaction signatures

The flaw affected how the Zilliqa Ledger app generated Schnorr signatures for native transactions. Each signature needs a fresh random number, known as a nonce, to protect the private key. Zilliqa said the app generated enough random data but copied the wrong 32 bytes into the signing process. The mistake left the highest 64 bits of every nonce fixed at zero.

The reduced randomness allowed attackers to compare several public signatures from the same account and reconstruct its private key. Zilliqa said accounts that broadcast roughly five or more affected native transactions should be treated as compromised. The project said the recovery process can take seconds on ordinary hardware once enough signatures are available.

Because the signatures remain permanently recorded onchain, updating the Ledger app cannot repair an already exposed key. Zilliqa said affected keys must be retired. It also warned against simply moving funds when transactions restart because an attacker holding the recovered key could try to send a competing transaction.

Native transactions stop while EVM users remain unaffected

Zilliqa suspended native transactions after identifying the flaw, blocking further native transfers while the team develops a method to protect affected balances. The project asked Ledger users who signed native transactions to wait for official instructions.

“Users who have signed native Zilliqa transactions with a Ledger device should await official guidance before taking any action,” Zilliqa noted.

The issue does not affect EVM transactions, according to Zilliqa. The project also said its software development kits, including zilliqa-js, gozilliqa-sdk and pyzil, generate nonces correctly. Users who only transact through EVM-compatible tools therefore sit outside the affected signing path.

Zilliqa credited KuCoin with helping trace the problem. The exchange recovered affected private keys from public signatures, helped confirm active exploitation and assisted in identifying the faulty nonce-generation process. Zilliqa said the cooperation helped it introduce protective measures while preparing a broader recovery plan.

Upbit places ZIL under caution after disclosure

South Korean exchange Upbit placed ZIL under cautionary status after the vulnerability became public. The designation covers its KRW and BTC markets, while ZIL deposits and withdrawals remain suspended. Trading support could face further review if the issue is not resolved through the exchange’s monitoring process.

The exchange action comes while Zilliqa works on securing balances controlled by keys that may already be recoverable. A corrected Ledger build has been prepared, but the project has not yet published its full recovery procedure or announced when native transactions will resume.

As crypto.news reported on July 20, Zilliqa had already asked exchanges to pause ZIL deposits and withdrawals after an exchange partner reported a cold-wallet theft. At that stage, the project had not disclosed the stolen amount, affected exchange or attack method. Zilliqa has not publicly stated whether that earlier theft was caused by the Ledger flaw.

Bug follows earlier Zilliqa network disruptions

The Ledger vulnerability differs from earlier Zilliqa outages because it affects private-key security rather than block production or node synchronization. Still, the disclosure follows several technical disruptions that affected the network in previous years.

Moreover, Zilliqa announced a permanent fix in September 2024 after a bug halted block production. The network later suffered another outage in January 2025 linked to node synchronization problems before restoring full service. Zilliqa has not connected those incidents to the Ledger app flaw.

The current issue also sits outside Ledger hardware itself. Zilliqa described the problem as a defect in its own Ledger application’s native signing code. The corrected build restores full-width nonce generation and should prevent new weak signatures once released.

For affected users, the old transaction history remains the main risk. Public signatures cannot be removed from the blockchain. Zilliqa said users who signed about five or more native transactions with a Ledger device should consider their keys compromised and wait for recovery instructions. The network has not announced a date for restoring native transactions.

Revolut has reached a $115 billion valuation through a new secondary share sale, extending a rapid rise in the private market value of the crypto-friendly digital bank. 

The deal prices shares at $2,017 each and allows employees and other existing shareholders to sell stock, according to The Wall Street Journal.

The transaction does not raise fresh capital for Revolut. Instead, it creates liquidity for existing holders. The new valuation is about 53% above the $75 billion level established in a 2025 share sale and more than double the $45 billion valuation recorded in 2024. The size of the latest transaction has not been disclosed.

Revolut valuation rises above $100 billion

The $115 billion figure makes Revolut Europe’s most valuable startup and places its private valuation above the market value of several established banks. The Wall Street Journal compared the figure with Barclays, which had a market capitalization of roughly $95 billion at the time of its report.

The comparison has limits because Revolut’s price comes from a private secondary transaction rather than daily public-market trading. Still, the latest sale provides a new price for employee and shareholder stock less than a year after investors valued the company at $75 billion.

As crypto.news previously reported, Revolut completed that $75 billion share sale in November 2025 after an earlier employee liquidity program. The latest transaction extends the same approach, giving staff and other shareholders a route to sell part of their holdings without waiting for an initial public offering.

Record 2025 results support the higher valuation

Revolut reported $6 billion in group revenue for 2025, up 46% from $4 billion a year earlier. Profit before tax rose 57% to $2.3 billion, while net profit reached $1.7 billion. The company also reported a 38% pre-tax profit margin.

Customer growth continued alongside the earnings increase. Revolut ended 2025 with 68.3 million retail customers after adding 16 million during the year. Its current website says the platform now serves more than 75 million customers worldwide. Customer balances reached $67.5 billion at the end of 2025, while total transaction volume rose 65% to $1.7 trillion.

The company also said 11 product lines generated at least about $135 million each in annual revenue. Wealth revenue, which includes investment and crypto-related activity, rose 31% to $876 million. Revolut CEO Nik Storonsky said the company had built a diversified business capable of supporting its next stage of expansion.

“We have only just begun to show what is possible,” Storonsky said when the company released its 2025 results in March.

Crypto remains part of Revolut’s global expansion

Revolut lets customers trade digital assets through its main app and operates Revolut X, a separate platform built for crypto trading. Its broader push into regulated markets has continued alongside the rise in its private valuation.

Revolut secured a MiCA license in Cyprus in October 2025, giving it a route to provide regulated crypto services across European markets. The company has also continued adjusting its product offering to meet MiCA requirements as the European framework moves into full enforcement.

More recently, Revolut received in-principle approval from Dubai’s Virtual Assets Regulatory Authority to provide virtual asset services in the United Arab Emirates. The planned offering includes crypto trading and services through the main Revolut app and Revolut X, subject to final approval.

Banking licenses widen Revolut’s growth plans

Revolut’s valuation increase also follows progress in its banking business. The company received a full U.K. banking license in March 2026 after operating under a restricted authorization. The approval gives it a wider path to offer banking products such as deposits, credit and lending services in its home market.

The fintech is also pursuing a U.S. national bank charter. As crypto.news reported in June, Revolut plans to combine traditional banking products with stablecoins, multi-currency accounts, stock trading and crypto services if its American expansion receives regulatory approval. The company filed its charter application with the Office of the Comptroller of the Currency in March.

Storonsky has previously said Revolut does not plan to list before 2028. Reports have also linked the company to a possible future public valuation as high as $200 billion, although Revolut has not announced an IPO date or confirmed a target price.

For now, the $115 billion secondary sale provides the latest private-market benchmark for the company. It follows record 2025 earnings, customer growth and regulatory expansion across banking and crypto markets. The transaction also gives existing shareholders another opportunity to sell stock while Revolut remains privately held.

Ether’s valuation picture is looking more compelling relative to Bitcoin, but on-chain data suggests the market may not yet have reached a decisive long-term bottom. CryptoQuant’s latest weekly analysis points to ETH trading below a key “realized value” benchmark while several other indicators are improving—just not all at the historical turning points seen in prior cycle lows.

In the report, CryptoQuant says ETH is approximately 17% under its realized price, an on-chain metric that reflects the average cost basis of ETH held across the network. That realized value is currently estimated at roughly $2,300, a level that historically has aligned with periods of broad undervaluation and longer-term bottoms. Still, CryptoQuant cautions that only part of its indicator set has reached the extremes typical of fully confirmed cycle transitions.

Key takeaways

• CryptoQuant estimates ETH is trading about 17% below its realized price (realized value around $2,300), a historically undervalued regime.
• Two of CryptoQuant’s five “bottoming” indicators are at historical reversal levels, while the remaining three are improving but not yet at prior cycle lows.
• ETH relative to BTC shows signs of stabilization: ETH/BTC spot volume has shifted into a range historically seen near market bottoms.
• Exchange inflows appear to be cooling while ETF holdings have started to recover after months of weakness, according to CryptoQuant’s account.
• Ethereum’s circulating supply continues to tighten as staking participation rises, with 34% of supply reported as staked by Staking Rewards.

ETH under realized value, but the bottom isn’t “confirmed”

The core of CryptoQuant’s valuation argument is that ETH is still trading at a discount to realized price. When market participants transact at prices below the average on-chain acquisition cost, it can indicate capitulation-like behavior—especially if sustained. CryptoQuant says this condition previously marked periods of undervaluation and longer-term basing for ETH.

However, the company frames its message carefully: even if the discount is present, a complete bottoming process typically requires multiple on-chain signals to align. In its weekly report, CryptoQuant notes that only two of five bottoming indicators have reached historical reversal levels. The rest are moving in the right direction, but they have not yet reached the extreme readings seen at previous cycle lows.

For traders and investors, the practical takeaway is that ETH’s valuation is improving relative to its own on-chain history, but the market’s “cycle bottom” may still be forming rather than fully established. That distinction matters because the typical pattern of post-bottom recovery can be uneven—particularly when some indicators have flipped while others remain mid-transition.

Shifts in ETH/BTC: cheaper relative to Bitcoin and calmer trading activity

CryptoQuant also highlights ETH’s improving relative posture versus Bitcoin. The analytics firm points to several metrics that, together, suggest Ethereum may be shedding an overvalued phase relative to BTC.

Among the factors cited: CryptoQuant says the ETH market value-to-realized value (MVRV) ratio has retreated from extreme overvaluation. It also reports that exchange inflows have declined and that ETF holdings have started to recover after months of weakness. On top of that, the firm notes that ETH/BTC spot trading volumes have fallen into a range historically associated with market bottoms.

CryptoQuant’s historical framing is important because it implies investors should consider not only where prices are, but how activity is behaving across markets. A shift toward lower relative volume can indicate reduced speculative churn—often a feature of consolidation during basing phases. At the same time, falling volume can also mean liquidity and volatility conditions are changing, which may affect how quickly price trends develop once sentiment improves.

CryptoQuant data also suggests the ETH/BTC MVRV ratio has fallen sharply from nearly 0.95 in August 2025 to around 0.65, signaling that Ethereum has become materially cheaper relative to Bitcoin. That degree of compression is consistent with a market moving away from the kinds of relative richness that can precede drawdowns.

Supply dynamics: exchange outflows, rising staking, and corporate accumulation

Beyond valuation, CryptoQuant’s broader on-chain lens aligns with a tightening supply narrative forming in Ethereum. A key component is exchange behavior. During the week beginning June 29, withdrawal activity on Binance—described in earlier coverage as the largest crypto exchange by trading volume—rose to its highest level in more than three years, according to reporting from Cointelegraph.

While exchange outflows are often interpreted as a sign that holders are moving assets toward self-custody or staking rather than leaving them on exchanges for potential sale, CryptoQuant’s kind of framework typically treats those flows as suggestive rather than determinative. Outflows can coincide with long-term conviction, but they can also reflect operational movements or transfers that do not automatically translate into net accumulation.

On the staking front, Ethereum’s supply appears to be increasingly locked away from immediate trading. Staking Rewards data referenced in the coverage indicates that 34% of Ethereum’s circulating supply is now staked, a record level. This matters because higher staking participation reduces the liquid portion of ETH available for frequent exchange-level trading—potentially easing short-term selling pressure if demand holds up.

Corporate accumulation also factors into the supply story. Cointelegraph previously reported that Tom Lee’s Bitmine Immersion Technologies, identified as the largest corporate ETH holder, increased its holdings by 325,000 ETH over a one-month period even while sitting on large unrealized losses. The company reportedly has a target to hold 5% of the second-biggest crypto.

Taken together, these elements—less ETH sitting on exchanges, more ETH being staked, and large holders adding—create an environment where upward price moves may face less immediate sell pressure than they would in a purely liquidation-driven setup. Still, supply tightness does not guarantee a bottom, which is why CryptoQuant’s multi-indicator approach remains central to its caution.

What’s happening in price action—and why macro optimism could matter

CryptoQuant’s on-chain caution arrives while price action has shown moments of strength. The report notes Ether briefly climbed above $1,950 this week, while Bitcoin topped $67,000, supported by optimism around the US CLARITY Act. The same coverage also references market analysts pointing to the possibility of capital rotating out of richly valued AI stocks and back into crypto—an argument that, if it materializes, could broaden risk appetite and support ETH alongside BTC.

Even so, the on-chain message is not “wait for confirmation” in a vague sense—it is more specific: only two of the five bottoming indicators have reached historical reversal levels, meaning key extremes still appear to be missing. For market participants, that implies monitoring should focus on whether the remaining metrics continue to accelerate toward prior-cycle low patterns rather than treating the current valuation discount as the whole story.

Going forward, the main question is whether the unconfirmed indicators catch up—especially those tied to market behavior such as inflows, valuation extremes, and volume conditions—while staking and exchange outflows keep tightening ETH’s liquid supply. If those trends persist, CryptoQuant’s “improving but not finished” framework could shift toward a more definitive bottoming profile; if they fade, the market may remain in a drawn-out consolidation instead of entering a clean rebound.