Crypto World
Market analysts spar as bitcoin heads for worst five-month losing streak since 2018
With a few hours still to go, Bitcoin is on track to post its worst losing streak since 2018, with February about to mark a fifth consecutive monthly decline.
The run of losses would be the longest since that 2018–2019 bear market and follows what has already been bitcoin’s worst first 50-day start to a year on record, leaving BTC down more than 25% year to date and on course for its first-ever back-to-back January and February declines.
More? The bitcoin-to-gold ratio fell to 12.288 ounces in February, marking a 70% drawdown over the last 14 months.
Bitcoin is also about to close out its worst month since June 2022 as the collapse of Terra-Luna that year sent the price plunging by about one-third. With bitcoin currently at about $66,000, the decline this February stands at more than 16%.
But some analysts argue that comparing the current stretch to 2018 may be oversimplifying what’s unfolding.
Repricing within a structural regime shift
“What we’re seeing isn’t just weakness. It’s repricing inside a structural regime shift,” Mati Greenspan, senior eToro market analyst and founder of Quantum Economics, told CoinDesk.
He believes that while tariffs, ETF flows and macro fears may explain the timing of the selloff, they don’t explain the deeper move, which he sees as a broader recalibration in how markets value risk assets in an era of elevated uncertainty.
Bitcoin is also approaching a fifth straight weekly decline, a streak last seen between March and May 2022.
Geopolitical tensions have strengthened the U.S. dollar and crude oil prices, tightening financial conditions and weighing on risk assets.
Yet, this downturn stands out for another reason: bitcoin’s uneven relationship with equities. While U.S. stocks have remained relatively resilient, BTC has sharply underperformed, marking an unusual period of instability in its traditional risk-asset correlation.
Confronting arguments
“Bitcoin doesn’t have a narrative right now, and it’s getting squeezed from both sides,” Jonatan Randin, senior market analyst at PrimeXBT, said in an email to CoinDesk.
Randin pointed to mounting macro pressure, including $3.8 billion in ETF outflows over the past five weeks, escalating tariff tensions and a Federal Reserve that has yet to signal imminent rate cuts.
While gold has attracted safe-haven flows and equities have ridden AI momentum, bitcoin has lagged. “Gold is up roughly 48% since September while bitcoin has fallen about 41% over the same period,” Randin said, explaining that the divergence shows investors are still treating BTC as a liquidity-sensitive risk asset rather than digital gold.
The correlation picture has been volatile. “The 20-day BTC-Nasdaq correlation swung from -0.68 to +0.72 between early and mid-February. That’s not decorrelation, that’s instability,” Randin said. “When the risk-on trade is working, and one asset gets left behind, that’s usually weakness, not strength.”
The narrative “hasn’t changed since 2009. It is a global, neutral alternative to debt-based fiat systems,” according to Greenspan.
Decorrelations are not random
“When correlations break during regime shifts, it’s usually not random. It’s early repricing,” Greenspan said. “If equities are still being treated as cyclical growth exposure while bitcoin starts trading more like a sovereign hedge, that divergence is structurally bullish.”
Despite the scale of the drawdown, Randin cautioned against assuming the correction is over.
“Bitcoin’s now declined 52% from the October highs,” he said. “That sounds like a lot, but when you look at prior bear markets where we’ve seen drawdowns of 80% or more, we could realistically be only halfway through this correction.”
He added that while the weekly relative strength index (RSI) has fallen to its lowest reading in bitcoin’s history and accumulator addresses have absorbed roughly 372,000 BTC since late December, signals often associated with cycle bottoms, similar conditions in past downturns were followed by another 30% to 40% drop before a definitive low formed.
Greenspan, however, said sentiment may already reflect much of the pessimism. “When sentiment gets this uniformly negative while long-term fundamentals remain intact, reversals tend to be sharp,” he said.
Until bitcoin can reclaim the $68,000–$72,000 zone, Randin said, “I’d expect this streak to grind on rather than break cleanly.” He identified $60,000 as a key near-term support level, with the 200-week moving average near $58,500 just below it.
“The losing streak narrative focuses on five months,” Greenspan added. “The structural story spans decades.”
Crypto World
Bitcoin’s hard fork proposal to get back $5 billion in stolen Mt. Gox funds sees no takers
Mark Karpelès thought he had a reasonable ask.
The former CEO of defunct exchange MtGox, operating under his GitHub handle MagicalTux, submitted a pull request to Bitcoin Core over the weekend proposing a hard fork (a fundamental change in code that splits the blockchain) that would let 79,956 BTC be redirected from the address they’ve been sitting in since 2011.
At current prices, that’s roughly $5 billion in bitcoin that hasn’t moved in 15 years.
The proposal was narrow, with just under 60 lines of code. A single consensus rule change that would substitute one public key hash for another when validating transactions from the theft address, allowing the MtGox trustee to spend the coins and route them into Japan’s existing court-supervised rehabilitation process.
Read more: Mt Gox: The History of a Failed Bitcoin Exchange
The activation height was set to infinity, meaning nothing would happen unless the community explicitly agreed to turn it on.
It lasted about 17 hours.
The forum was auto-closed even before a discussion took place, with bitcoiners suggesting that Karpelès submitted a pull request directly when he should’ve first discussed the changes on the Bitcoin development list. Some of them said that Karpelès should first propose this as an official Bitcoin Improvement Proposal (BIP).
To be fair, bitcoin core github isn’t the appropriate forum for that kind of community discussion. bitcointalk, X, bitcoin mailing list(s), delving, etc are all a more appropriate forum.
— Matt Corallo 🟠 (@TheBlueMatt) February 27, 2026
The people it was supposed to help rejected it, too. Several MtGox creditors said publicly on X that they didn’t want Bitcoin’s rules rewritten on their behalf. The network’s guarantee that private keys equal ownership matters more to them than getting their coins back.
I’m a creditor. Absolutely not. Would break a key pillar of Bitcoin.
— spoon (@spoonmvn) February 27, 2026
Code is the law
Karpelès had anticipated the objections and listed them himself in the proposal.
The theft is unambiguous, and the coins haven’t moved in 15 years. A legal framework to distribute them already exists. The scope targets one address. Every argument for exceptionalism was there.
Once Bitcoin redirects coins for any reason, the question stops being whether it can and starts being when it will do it again.
Bitfinex victims, DeFi hack victims, and anyone who lost coins to a documented theft could cite this as precedent and seek the same remedy for their incidents. The line between one justified exception and a general mechanism is exactly the kind of subjective boundary Bitcoin was built to avoid.
This is not to say a change in code didn’t happen before.
Previous emergency interventions, such as the 2010 value overflow bug or the 2013 chain split, involved technical failures that threatened the network itself. This was different. The network was working exactly as designed. The proposal was asking it to work differently for one group of people, however sympathetic their case.
The pull request is now closed. $5 billion in bitcoin remains frozen at the same address it’s been at since 2011. And the creditors who might have benefited chose the principal over the payout.
Ultimately, Bitcoin’s fundamental principle of “code is the law” prevailed.
Six Polymarket accounts earned roughly $1.2 million after correctly betting that the U.S. would strike Iran on Feb. 28, according to blockchain analytics firm Bubblemaps.
In a post on X, Bubblemaps said most of the wallets were funded within 24 hours of the attack and bought “Yes” shares in the “U.S. strikes Iran by February 28, 2026?” market just hours before explosions were reported in Tehran and other cities.The accounts had no activity beyond these predictions.
The strikes followed a televised address by U.S. President Donald Trump announcing what he called “major combat operations,” targeting the country’s missile, naval, and nuclear infrastructure. The attack saw bitcoin’s price drop while oil futures on Hyperliquid rose.
One Polymarket account Bubblemaps pointed to purchased more than 560,000 “Yes” shares at about 10.8 cents each, a position that paid out near $560,000 after the market resolved at $1. Another account bought nearly 150,000 shares at 20 cents, turning a six-figure profit. All six profiles were created in February, according to Polymarket data.
Trading volume on the Feb. 28 contract reached nearly $90 million, part of more than $529 million wagered across related strike-date markets since December.
Bubblemaps published a visual map showing the six wallets clustered together and funded through similar paths.
The trades land as U.S. regulators weigh how to police insider activity on prediction markets. This week, rival platform Kalshi said it suspended and fined two users for insider trading, including a visual effects editor for MrBeast’s “Beast Games” who allegedly traded on knowledge of show outcomes.
Kalshi, which is registered with the Commodity Futures Trading Commission as a designated contract market, said it has investigated about 200 cases and has more than a dozen active probes.
The CFTC issued an advisory noting the enforcement actions and warned that insider trading on event contracts may violate U.S. law. Chairman Mike Selig called exchanges the “first line of defense.” Kalshi banned the employee for two years and fined him more than $20,000. In a separate case, a political candidate was penalized for betting on his own race.
More recently, Polymarket traders have appeared to insider trade a market on insider trading itself. Blockchain sleuth ZachXBT last week teased he would publish the findings of an investigation into a crypto platform, which ended up being Axiom, whose employees he believed used non-public information to trade.
Teasing the investigation was coming, however, led to the creation of a Polymarket contract on which company would be named. Some clearly knew the answer on which company was under investigation, with Lookonchain identifying 12 wallets that heavily bet on Axiom ahead of the reveal.
Crypto World
Berkshire CEO Greg Abel vows to keep Buffett’s culture of disciplined investing in first annual letter
Greg Abel speaks during the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 3, 2025.
CNBC
Berkshire Hathaway‘s Greg Abel used his first annual shareholder letter as chief executive to reassure investors that the conglomerate’s culture of financial conservatism and disciplined investing established under Warren Buffett will continue “into perpetuity.”
“I am honored by our Board’s decision to appoint me CEO of Berkshire and humbled to succeed Warren as I write my first annual letter to you,” Abel wrote in the missive to begin the company’s annual report released Saturday along with Berkshire’s quarterly earnings. “Warren is obviously a very hard act to follow.”
Abel, 63, signaled continuity rather than change as he takes the reins from the 95-year-old Buffett, who stepped down as CEO at the start of 2026 and remains chairman. The new CEO laid out a clear framework of foundational values for how he intends to keep running the conglomerate: to preserve its financial strength and maintain strict capital discipline.
“We maintain a fortress-like balance sheet, ensuring Berkshire’s foundation is never compromised,” he wrote. “We preserve this financial strength by using debt sparingly and prudently. Our substantial liquidity enables us to meet our obligations even under the most adverse conditions and to respond swiftly when opportunities arise.”
Other values he highlighted included a decentralized management model and “reputation for integrity.”
Berkshire’s cash pile stood at $373.3 billion at the end of 2025. Abel described the mountain of cash as strategic dry powder, which allows the company to act decisively when opportunities surface without jeopardizing resilience. Abel also used the letter to push back on any notion that the sizable cash position signified that Berkshire was retreating from investing.
But Abel noted he will continue Berkshire’s long-standing resistance to paying a dividend.
“Our approach to cash dividends continues to be that Berkshire will not pay dividends so long as more than one dollar of market value for shareholders is reasonably likely to be created by each dollar of retained earnings,” Abel wrote, adding that the board reviews the policy annually.
Overseeing stock portfolio
Abel emphasized that Berkshire applies the same disciplined framework whether it is acquiring an entire business, buying shares of a public company or repurchasing its own stock.
“We will assess value carefully, act patiently, and hold for the long term — preferably forever,” he wrote.
He added that Berkshire’s equity portfolio will remains concentrated in a small group of American companies, including Apple, American Express, Coca-Cola and Moody’s. Abel said the concentrated approach will continue, with limited trading activity, though Berkshire would “significantly adjust” a position if long-term economic prospects change.
Abel also settled a key question hanging over the leadership transition: he will directly oversee the equity portfolio. Ted Weschler will continue to manage about 6% of the portfolio, including investments previously overseen by Todd Combs, an investment manager and Geico CEO who left for JPMorgan recently.
“At Berkshire, equity investments are fundamental to our capital allocation activities; responsibility ultimately resides with me as CEO,” Abel wrote.
Long-term commitment
Abel has been known internally as a hands-on operator with a deep bench of subsidiary CEOs reporting to him. The Canadian executive, born in Edmonton, Alberta, has a 25-year tenure at Berkshire under his belt. Abel joined Berkshire in 2000 when the conglomerate bought MidAmerican Energy, where he eventually became the CEO in 2008. Prior to that, Abel worked at CalEnergy where he transformed the small geothermal firm into a diversified energy business.
He underscored that he views the role as a long-term commitment as he intends to steward Berkshire for decades.
“Our owners’ time horizon extends beyond the tenure of any individual CEO,” he wrote. “I will not be your CEO for the next 60 years as simple arithmetic makes that – shall we say – an ambitious plan. However, 20 years from now, when I will have just a fraction of the tenure that Warren had, my intention is that you – or your descendants – will be proud that your company is even stronger.”
Some observers noted that even if Iran controlled 5% of global hashrate, the network would continue functioning without disruption.
Bitcoin mining in Iran is back in the spotlight after a viral X post on February 27 claimed the country runs a $1 billion operation that could be wiped out.
The debate has split crypto observers, with some warning of a temporary hashrate shock and others dismissing the claims as exaggerated fear, uncertainty, and doubt (FUD).
Iran’s Mining Footprint and the Strike Scenario
The discussion began when independent analyst Shanaka Anslem Perera posted that Iran mines Bitcoin at a theoretical cost of $1,320 per BTC using heavily subsidized electricity and then selling it at the current price near $68,000 to extract what he described as a 50x gross margin.
He alleged that around 700,000 mining rigs consume roughly 2,000 megawatts daily, much of it tied to operations linked to the Islamic Revolutionary Guard Corps, or IRGC.
Perera tied the argument to sanctions, saying Bitcoin allows Iran to convert restricted energy resources into liquid capital beyond the reach of SWIFT prohibitions.
A January 16 report by Chainalysis found that Iran’s total crypto activity exceeded $7.78 billion in 2025. Furthermore, the report said addresses linked to IRGC facilitation networks received more than $3 billion last year, up from just over $2 billion in 2024, and that activity often spiked during military or political crises.
Nonetheless, critics quickly challenged the mining cost assumptions, with analyst Dasha calling the $1,320 figure “100% fake news,” arguing it relies on household electricity rates that cannot be achieved in practice due to blackouts and shortages.
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Hashrate Shocks Are Not New
The objections did not stop there, as miner ZynxBTC dismissed the concern entirely:
“Even if Iran controlled 5% of global hashrate (it doesn’t), and it went offline, the network would continue functioning normally.”
Recent U.S. events support that argument. Earlier in the year, the network continued operating even after a severe winter storm forced major Texas miners offline, pushing the hashrate down from 1.133 ZH/s to 690 EH/s in just a couple of days.
However, Perera argued that grid failure differs from voluntary shutdown. According to his analysis, with tensions brewing in the Middle East, a 7-to-10-day air campaign targeting Iranian military infrastructure would likely collapse electricity generation by an estimated 30% to 50%.
He insisted that mining rigs require continuous power, and even brief outages could destroy active operations. As such, he postulated that a strike on Iran’s already fragile grid could see the country’s estimated 2% to 5% share of the global hashrate drop to zero within days, triggering a difficulty adjustment that would extend block times and temporarily spike transaction fees. As CryptoPotato reported, the US and Israel have already launched strikes on Iran earlier today.
Still, others argued that the Bitcoin network has withstood even larger shocks, with researcher Furkan Yildirim noting that China removed more than half of the global hashrate in 2021, yet the network soon adjusted as miners relocated.
“An Iranian grid failure would be a rounding error by comparison,” he tweeted.
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A group of 11 US senators has asked federal authorities to investigate whether crypto exchange Binance is complying with US sanctions and Anti-Money Laundering (AML) requirements, citing recent reports.
In a letter on Friday to Treasury Secretary Scott Bessent and Attorney General Pamela Bondi, the lawmakers urged a “prompt, comprehensive review” of the exchange’s compliance controls and its adherence to settlement agreements reached in 2023.
The senators pointed to allegations that approximately $1.7 billion in digital assets flowed through Binance to Iranian entities linked to terrorism, including groups connected to the Houthis and the Islamic Revolutionary Guard Corps. Investigators also reportedly identified more than 1,500 accounts accessed by users in Iran and potential activity connected to Russian sanctions evasion.
According to the letter, some Binance compliance staff who uncovered suspicious transactions were later dismissed, and law enforcement agencies said the exchange had become less cooperative in providing customer information.
Related: Binance stablecoin reserves have sunk 19% since November
Senators warn Binance products could enable sanctions evasion
Senators Chris Van Hollen and Ruben Gallego, joined by Angela D. Alsobrooks, Andy Kim, Raphael Warnock, Tina Smith, Catherine Cortez Masto, Mark R. Warner, Elizabeth Warren, Jack Reed and Lisa Blunt Rochester, signed the letter.
They also raised concerns about newer products, including payment cards launched in parts of the former Soviet Union and partnerships tied to stablecoin initiatives, which they warned could facilitate sanctions evasion.
The senators asked the agencies to report by March 13 on any steps taken to examine the exchange’s conduct.
On Tuesday, Senator Richard Blumenthal, ranking member of the Senate Permanent Subcommittee on Investigations, also launched a congressional inquiry into Binance. He sent a letter to Binance CEO Richard Teng requesting documents and internal records related to the exchange’s sanctions controls.
Related: Binance confirms employee targeted as three arrested in France break-in
Binance denies Iran-linked transaction claims
In a statement to Cointelegraph this week, Binance rejected allegations that its platform facilitated illicit transactions, saying it identified and reported suspicious activity to authorities and does not allow Iranian users. A company spokesperson said recent media coverage misrepresented the exchange’s operations.
Last week, the exchange also disputed a report claiming it processed more than $1 billion in Iran-linked transfers and denied dismissing investigators over the issue.
Teng has also criticized a Wall Street Journal report alleging $1.7 billion in Iran-related activity, calling it defamatory and seeking a retraction.
Magazine: How crypto laws changed in 2025 — and how they’ll change in 2026
Bitcoin (BTC) rewards investors the most who hold it for at least three years, according to data shared by André Dragosch, head of research at Bitwise Europe.
Key takeaways:
-
Holding BTC for at least three years has historically slashed losses to just 0.70%.
-
Bitcoin price predictions for 2026–2027 cluster around $100,000–$150,000 in bullish scenarios.
Long-term Bitcoin holders rarely lose
A Bitwise analysis reviewed Bitcoin’s price history between July 17, 2010, and Feb. 11, 2026, concluding that the probability of being in the red drops to just 0.70% when BTC is held for at least three years.
In other words, nearly all rolling three-year entry points in Bitcoin’s history ended up profitable. Beyond three years, the risk of loss fell even further: 0.2% over five years and 0% over ten years.
Traders holding Bitcoin for less than three years faced a much higher risk of loss.
Intraday buyers, for instance, had a 47.1% chance of being underwater. That probability stayed elevated at 44.7% over one week, 43.2% over one month, and 24.3% over a one-year holding period.
Stronger hands are 90% in profit already
The realized price metric also shows declines in holders’ losses over multi-year windows.
As of Saturday, Bitcoin was down by roughly 50% from its October 2025 high, trading for around $65,000.
That was way above its three-to-five-year realized price of $34,780, meaning investors who bought and held through that window were still sitting on an approximately 90% profit.
Meanwhile, some traders argue the ongoing Bitcoin price correction could extend toward $30,000.
A move to that level would wipe out much of the cohort’s cushion, pushing the three–five year band closer to breakeven. That would further test whether these holders start adding to sell pressure or sit tight.
Conversely, most traders who bought Bitcoin in the past two years were underwater.
The cost basis of the 6m–12m cohort, entities that have been holding BTC for up to a year, was around $101,250, leaving them with roughly a 35% in unrealized loss as of Saturday.
However, the 1y–2y cohort’s cost basis was lower, around $78,150, translating into about a 15% unrealized loss.
The gap reinforced the same pattern seen in the holding-period data: the longer the holding window, the smaller the drawdown tends to be during corrections.
How high can BTC price go?
Longer-term forecasts still cluster around a handful of upside targets for 2026–2027.
For instance, global brokerage firm Bernstein maintained its $150,000 BTC price call for 2026, pointing to relatively modest net outflows of about 7% from spot Bitcoin ETFs, even as BTC’s price fell by 50%.
“The current Bitcoin price action is a mere crisis of confidence,” Bernstein analysts led by Gautam Chhugani said.
Standard Chartered, meanwhile, warned of a potential “final capitulation” phase that could drag BTC toward $50,000 amid weak ETF flows and a tougher macro backdrop, before recovering toward $100,000 by the end of 2026.
Looking into 2027, Timothy Peterson’s historical “average return” framework points to $122,000 by early 2027, with high odds that BTC trades above that figure.
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.
TLDR:
- BitMart US now holds full licensing across all 50 U.S. states and territories.
- The platform offers zero fees for trading, fiat deposits, and withdrawals.
- Retail users gain nationwide access without geographic restrictions or extra costs.
- Institutional clients can use U.S.-compliant infrastructure for secure market entry.
BitMart US has officially launched its full operations across the United States, including all 50 states and territories. The platform now offers zero fees on trading, as well as fiat on-ramps and off-ramps.
This launch positions BitMart US among a select group of exchanges with nationwide regulatory coverage. The move aims to combine broad market access with compliance and user-focused design.
Nationwide Licensing Positions BitMart US Among Few Compliant Exchanges
According to a press release, BitMart US now holds full regulatory authorization across the entire U.S., covering all states and territories. The platform’s nationwide licensing allows it to operate without geographic restrictions, a rarity in the fragmented U.S. crypto market.
Regulatory compliance is central to the platform’s structure, reflecting its approach to building trust with users and authorities. The U.S. footprint ensures that retail users can access services consistently from any location.
The platform is built with compliance at the core, integrating federal and state requirements into its operations. BitMart US is now among the few exchanges authorized to serve American users end-to-end.
This regulatory advantage is likely to appeal to institutions seeking secure U.S.-compliant gateways. The structure also supports retail users with seamless access to crypto trading and conversions.
Licensing extends to fiat on-ramp and off-ramp services, allowing users to convert dollars without fees. The zero-fee model applies across trades and account funding, ensuring cost-efficient transactions.
The approach is designed to encourage broader participation among American retail investors. This could also simplify onboarding for new users entering digital assets for the first time.
National licensing also positions the exchange for future expansion of services and products. Compliance infrastructure is ready to support new offerings without requiring additional state approvals.
The design ensures long-term operational stability while maintaining trust with regulators. Users benefit from consistent service regardless of regional regulatory changes.
Zero-Fee Trading and Institutional Access Drive Platform Growth
BitMart US offers zero fees on all trades and fiat conversions, allowing users to retain their full capital during transactions. This fee structure differentiates the platform from competitors that charge for trades or transfers.
Retail users can execute trades without worrying about hidden costs. Fiat access includes deposits and withdrawals with no added charges, supporting everyday usage.
The platform also targets international institutional clients seeking U.S.-regulated entry points. Institutional-grade security, liquidity, and compliance infrastructure support large-scale operations.
BitMart US combines an accessible interface for retail users with backend systems meeting institutional standards. This dual focus positions the exchange to handle a wide range of participants.
Additional products and services are planned throughout 2026, expanding offerings for both retail and institutional users. Details on these upcoming launches will be disclosed in the coming months.
The platform’s scalable design ensures that new features comply with U.S. regulatory requirements. BitMart US intends to maintain its zero-fee model while broadening its product lineup.
The exchange’s launch reflects an emphasis on regulatory credibility, trust, and transparent operations. The platform was purpose-built for the U.S. market with compliance embedded in every function.
This approach ensures consistent operations across diverse state regulatory environments. Users gain nationwide access with no geographic limitations.
As institutional capital continues to enter the crypto ecosystem, the backbone of on-chain activity remains the same: liquidity depth and the concentration of stablecoins. The market has witnessed a recurring debate about whether newer networks can outpace the incumbent by sheer throughput, but veteran money tends to chase depth and resilience first. A former Morgan Stanley derivatives executive who has watched Asia’s markets highlights a core truth: institutions care about where liquidity already sits, not just how fast a chain can process transactions. That dynamic underpins a broader narrative about who really ships value in crypto—users, traders, and institutions alike—rather than just the pace of technology.
Key takeaways
- Ethereum (CRYPTO: ETH) remains the deepest liquidity hub for DeFi and stablecoins, attracting large-scale capital that anchors on-chain markets and stabilizes supply.
- Institutional participation—through assets like tokenized funds and RWAs—adds scale and stability to crypto ecosystems, extending beyond hype-driven retail activity.
- Layer-2 solutions helped relieve mainnet congestion, but liquidity fragmentation across L2s ultimately reinforced Ethereum’s central role by maintaining a single, deep liquidity pool for large trades.
- Upcoming scaling upgrades, notably the Glamsterdam fork planned for 2026, aim to push the mainnet toward higher throughput (potentially around 10,000 TPS over time) while preserving liquidity depth.
- While rivals such as Solana tout higher TPS, Ethereum’s liquidity depth continues to attract institutions that value tight spreads and the ability to absorb sizeable transactions without slippage.
Tickers mentioned: $ETH, $SOL, $BUIDL
Market context: The debate between throughput and liquidity sits against a backdrop of growing institutional interest in stablecoins and real-world assets (RWAs) on-chain, with major asset managers exploring scalable, liquid rails for large-scale tokenized products.
Why it matters
The essence of the current market structure is that deep liquidity creates stability. Ethereum (CRYPTO: ETH) has solidified its status as a distribution layer for stablecoins and DeFi capital, a position that matters for actors ranging from market makers to fund managers seeking large, predictable liquidity pools. In practice, this depth translates into tighter bid-ask spreads and lower slippage for sizable trades, attributes that matter for institutions seeking to deploy capital without disrupting market prices. The presence of stablecoins and institutional liquidity solidifies a chain’s ecosystem, enabling more robust on-chain activity beyond speculative retail cycles.
Institutional players are not simply chasing a single metric like throughput; they want a ecosystem with proven settlement reliability, regulatory compatibility, and the ability to deploy RWAs and other real-world assets. BlackRock’s USD Liquidity Fund (BUIDL), a tokenized Treasury fund that started on Ethereum and later expanded to multiple blockchains, exemplifies how large investors are bridging traditional finance with digital liquidity. Ethereum’s share of the BUIDL market underscores how much of the industry’s capital defaults to the largest, most battle-tested chain. The on-chain footprint of such products reinforces Ethereum’s role as a backbone for stability, rather than just a playground for speculative tokens.
On the technical side, the evolution of Layer-2 rollups has been a double-edged sword. They alleviated cost pressures on the mainnet and expanded execution capacity—but liquidity was splintered across several environments, complicating large trades that require cross-rollup coordination. Still, the net effect, according to practitioners, was a retention of liquidity within the Ethereum ecosystem rather than a shift to competing L1s. The liquidity concentration on Ethereum has meant that even as projects tout higher theoretical TPS, the marketplace converges on the venue with the deepest pools and the most robust market depth.
In conversations around who leads the charge, the supply of liquidity is often described using a downtown-versus-suburb analogy. Ethereum, in this framing, functions as the “downtown”—the place where the most active liquidity and the broadest set of financial instruments converge. “If you want the deepest liquidity, you go downtown, and that’s Ethereum,” one advocate summarized. The comparison captures why institutions—and the traders who serve them—prefer to locate capital where the largest pools exist, even if there are more nimble, cheaper chains elsewhere. The goal is to minimize price impact and preserve execution quality even for large, complex orders.
Amid these dynamics, Solana (CRYPTO: SOL) has been positioned by some as an “Ethereum killer” due to its throughput gains. The narrative around its higher TPS has been a magnet for retail activity, even as long-term sustainability and liquidity depth remain points of scrutiny. Solana’s rise, followed by a wave of “Solana killers” that promise even higher theoretical throughput, illustrates a broader industry race to scale. Yet industry observers caution that higher throughput alone does not guarantee meaningful capital flows; institutions still seek the deepest, most reliable pools of liquidity that can absorb sizable transactions without destabilizing prices. The ongoing discussion about liquidity depth versus raw speed remains central to how capital allocates across networks.
“I think of Ethereum as like downtown,” Lepsoe observed. “You could build a marketplace uptown somewhere in the suburbs, and you might find price efficiency there, but if you want the deepest liquidity, you go downtown.”
As the crypto landscape matures, institutional interest is increasingly oriented toward practical use cases—stablecoins, tokenized assets, and RWAs—over speculative price plays. The deployment of RWAs on Ethereum, together with stablecoin dominance, continues to define the path for institutional adoption. The narrative is not simply about which chain is fastest; it is about which chain provides the most reliable, scalable, and well-supported liquidity rails for large, real-world financial transactions.
Nevertheless, the industry remains optimistic about scaling on the mainnet. The Ethereum ecosystem has acknowledged that a portion of the early L2 momentum resulted in liquidity fragmentation, but this has been recast as a blessing in disguise by many observers. If liquidity remains accessible on Ethereum while L2s handle execution, the ecosystem can preserve a unified, deep pool that supports institutional activity. In a broader sense, the community is recalibrating expectations around what “scaling” means in a mature market: not just faster blocks, but more efficient execution and deeper markets that survive cycles of hype and drawdown.
On the horizon, scaling upgrades are expected to reshape the liquidity landscape further. The Glamsterdam fork, penciled in for 2026, aims to raise Ethereum’s block gas limit significantly, potentially lifting throughput and enabling more expansive on-chain activity without sacrificing liquidity depth. As these upgrades unfold, infrastructure providers are also pursuing innovations to improve execution efficiency. Projects like ETHGas, which aims to optimize block construction through off-chain coordination, and zero-knowledge-based bundling techniques, are examples of the kinds of fine-tuning that could complement the larger scaling narrative. In parallel, leading researchers emphasize the enduring value of battle-tested networks, suggesting that institutions will continue to favor chains that have withstood multiple market cycles and robust security assumptions before expanding into new ecosystems.
Industry participants also note that institutions are increasingly evaluating cross-chain strategies that let them maintain exposure to Ethereum’s liquidity while leveraging other networks for specific use cases or privacy requirements. The interplay between depth and customization—privacy, throughput, and settlement speed—will shape the next phase of institutional crypto infrastructure. While Solana and Canton offer competitive features—privacy assurances and rapid execution—they are unlikely to displace Ethereum’s liquidity advantage in the near term. The dominant thesis remains: for large allocators, liquidity depth remains the primary differentiator when choosing where to deploy capital.
In sum, Ethereum’s leadership in DeFi liquidity and stablecoins—coupled with growing RWAs and tokenized assets—continues to anchor institutional adoption. While faster networks entice speculative activity and offer marginal improvements in execution, the deepest markets and the most mature on-chain ecosystems remain on Ethereum. As 2026 approaches, the industry will be watching how Glamsterdam and related scaling initiatives interact with continued capital inflows, whether through BUIDL-like products or broader tokenized real-world assets, to shape the next cycle of growth in institutional crypto markets.
What to watch next
- Glamsterdam fork: Expected in 2026, with a potential increase in block gas limit from 60 million to 200 million and a long-term path toward higher TPS.
- Layer-2 development: Ongoing maturation of rollups and cross-L2 liquidity strategies to reduce fragmentation while preserving deep liquidity on the mainnet.
- RWAs and stablecoins adoption by institutions: Monitoring the evolution of tokenized assets on Ethereum and the appetite of major asset managers for real-world assets.
- Private and privacy-focused chains: Evaluation of Canton-like offerings and how they influence institutions’ multi-chain strategies while maintaining liquidity depth.
- Institutional products: Deployment and performance of tokenized funds such as BUIDL and related vehicles, including on- and cross-chain liquidity metrics.
Sources & verification
- Vitalik Buterin’s discussion on L2 scaling and mainnet priorities: https://x.com/VitalikButerin/status/2018711006394843585
- BlackRock’s USD Liquidity Fund (BUIDL) tokenized Treasury product on Ethereum: https://www.blackrock.com/corporate/literature/whitepaper/bii-global-outlook-2026.pdf
- RWA.xyz assets page for BUIDL: https://app.rwa.xyz/assets/BUIDL
- DefiLlama stablecoins data, illustrating Ethereum’s leadership by market capitalization: https://defillama.com/stablecoins
- Article on Ethereum scaling and the Tok/Market perspective, including discussions around Glamsterdam and L2 decentralization: https://cointelegraph.com/news/ethereum-foundation-quantum-gas-limit-priorities-protocol
What Ethereum’s liquidity leadership means for users and builders
Ethereum’s enduring liquidity edge matters for users who rely on predictable execution and for builders who develop on-chain financial primitives. The combination of a deep stablecoin market, broad DeFi activity, and tokenized real-world assets provides a persistent foundation on which new applications can scale without chasing liquidity across multiple disconnected chains. For developers, it signals that building with robust liquidity incentives, tight slippage controls, and cross-chain interoperability will likely yield the strongest, most resilient user experiences. For investors, liquidity depth translates into relatively safer entry points for large exposures and more stable pricing dynamics during volatile episodes.
Warren Buffett and Greg Abel walkthrough the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 3, 2025.
David A. Grogen | CNBC
Berkshire Hathaway reported a big decline in its operating earnings for the fourth quarter, due in large part to weakness in the conglomerate’s insurance business.
Earnings from operations totaled $10.2 billion in Q4. That’s down more than 29% from $14.56 billion in the year-earlier period.
This was the final quarter under Warren Buffett as CEO, who announced he was stepping down at the annual shareholders meeting last May. Greg Abel took the reins to start 2026 and vowed in Berkshire’s annual letter accompanying Saturday’s results to continue the culture Buffett built of financial strength and capital discipline. Buffett remains chairman.
Insurance underwriting profits dropped 54% to $1.56 billion from $3.41 billion a year prior. Insurance investment income slid nearly 25% from to $3.1 billion from $4.088 billion.
For the full-year 2025, operating earnings totaled $44.49 billion. That’s down from $47.44 billion in the year prior.
Profits from insurance underwriting came in at $7.26 billion, down from $9 billion in 2024. Insurance investment income for the year eased to $12.5 billion from $13.6 billion a year prior.
No buybacks, cash hoard dips slightly
Buffett again refrained from buying back Berkshire shares despite ending Q4 along the flatline.
Despite the lack of buybacks, the conglomerate’s cash hoard did slip to $373.3 billion from a record of $381.6 billion in the third quarter.
Berkshire Hathaway Class A shares rose 10% in 2025, lagging the S&P 500’s 16.4 advance.
This is breaking news. Please check back for updates.
TLDR:
- Stablecoin payments total $390B annualized, led by B2B enterprise and supplier settlements.
- Card-linked spending is fastest growing by transaction count, rising +673% year-on-year.
- P2P transfers reach $77B with 0.37% market penetration, reshaping remittance corridors.
- B2C payouts total $11B, growing +86%, led by payroll and creator economy adoption.
Stablecoin payments are tracking $390 billion on an annualized basis, data shows. B2B activity dominates with $226 billion, fueled by enterprise settlements and supplier payments.
Card-linked spending is rising rapidly, with transaction volumes up 673 percent. Peer-to-peer transfers and early B2C payouts remain smaller but show significant growth momentum.
Enterprise and B2B Adoption Drives Market Growth
Enterprise and B2B transactions are the main contributors to stablecoin volume, accounting for over half of total payments. Corporate settlements and supplier payments have increased 733 percent compared with prior periods, indicating growing institutional reliance.
According to blockchain transaction data shared by expert Leon Waidmann, businesses are integrating stablecoins for faster, borderless liquidity and automated payments. Card-linked spending also continues to rise, positioning debit cards funded with stablecoins as the fastest-growing consumer-facing segment.
P2P transfers remain smaller at $77 billion but already reach a 0.37 percent market penetration rate. This suggests remittance corridors are being restructured as stablecoins replace traditional intermediaries.
The growth in enterprise adoption precedes broader consumer adoption, highlighting the strategic prioritization of infrastructure over retail. Payments data from public blockchain networks confirms that B2B and enterprise transactions remain the primary driver of total stablecoin activity.
Despite rapid growth, total market penetration across all segments is only 0.02 percent. The low overall adoption underscores how early the market remains for stablecoin payments.
Stablecoins are securing a foundation in enterprise liquidity before reaching mass consumer use. Analysts tracking network activity highlight the potential for future retail adoption once infrastructure is established.
Consumer Spending and Emerging B2C Applications
Consumer adoption of stablecoin payments is emerging primarily through cards and payroll applications. Card-linked transactions have surged, offering a practical entry point into retail spending.
Debut B2C use cases, including creator economy payouts and payroll, are still in early phases, totaling roughly $11 billion. Growth in these areas reached 86 percent, signaling accelerating adoption for emerging markets.
Payroll and creator-focused payments are just beginning to leverage stablecoins for recurring and cross-border payouts. Early integrations suggest that consumer adoption will expand as infrastructure matures.
The expansion of cards as a consumer touchpoint complements enterprise dominance, bridging users into the broader ecosystem. Data from transaction networks suggests that these consumer-facing applications will grow alongside enterprise settlement systems.
The broader stablecoin ecosystem is positioning for a multi-trillion-dollar market, with infrastructure leading adoption. Companies building B2B stacks are establishing early dominance before retail markets mature.
Card-linked and P2P transactions serve as entry points for consumer engagement. Continued adoption in enterprise, remittances, and emerging B2C applications underscores stablecoins’ expanding market footprint.
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