Crypto World
Ripple is becoming a bank. What it means for XRP
A conditional national trust bank charter, a pending Federal Reserve master account, and a string of acquisitions in brokerage, payments, and treasury. Ripple is assembling a full regulated-finance stack. The benefits flow first to its stablecoin and the company itself. What is left for XRP is the question.
Summary
- Ripple has assembled a full regulated-finance stack: a conditional national trust bank charter, a pending Federal Reserve master account bid, and acquisitions in prime brokerage, payments, and treasury services.
- The charter and master account primarily benefit RLUSD, Ripple’s stablecoin, whose reserves would sit under federal and state oversight, not XRP directly.
- A national trust bank cannot take ordinary deposits or carry federal deposit insurance, so the real prize is direct access to Federal Reserve payment rails and custody of its own stablecoin reserves.
- For XRP, the benefit is indirect: a more legitimate, bank-grade Ripple strengthens the whole ecosystem and XRP’s role as a bridge asset, but it creates no direct token-demand mechanism.
- This is the same pattern that defined XRP through 2026, in which Ripple’s wins flow first to the company and RLUSD, with the token benefiting slowly, if at all.
Ripple is turning itself into a bank, or something very close to one, and it is doing it methodically.
Over the past year the company won conditional federal approval to operate a national trust bank, applied for a Federal Reserve master account that would give it direct access to the central bank’s payment systems, and bought its way into prime brokerage, payments, and corporate treasury services through a series of acquisitions.
Add the dollar stablecoin it already issues, the 70-plus regulatory licenses it holds around the world, and a fresh European license that lets it passport services across 30 countries, and the picture is unmistakable.
A company once known mainly for a cross-border payments network and a controversial token is assembling the full apparatus of a regulated financial institution.
For XRP holders, who have watched the token grind sideways near a dollar through a year of Ripple triumphs, the natural question is what all of this means for them.
The honest answer is more complicated, and more sobering, than the headlines suggest, because almost every piece of Ripple’s banking build benefits the company and its stablecoin first, and the token only indirectly.
This piece works through Ripple’s transformation into a regulated financial institution and what it actually delivers for XRP. It covers the banking stack Ripple is assembling, what a national trust bank can and cannot do, the real prize of a Federal Reserve master account, why the charter is mostly a stablecoin story, what genuinely accrues to XRP, the bull case within the bank build, and what holders should watch.
The goal is to separate the real significance of Ripple becoming a bank, which is considerable for the company, from the wishful assumption that everything good for Ripple is automatically good for the token, which 2026 has repeatedly shown to be false.
A payments company is turning into a financial institution
Take the full measure of what Ripple has built, because the strategy only becomes clear when you see the pieces together.
The foundation is a conditional charter to operate a national trust bank, granted by the Office of the Comptroller of the Currency, the federal regulator that supervises national banks. The OCC conditionally approved Ripple National Trust Bank alongside other crypto firms in a broader wave of national trust bank approvals.
That federal approval matters because it moves Ripple deeper into the regulated banking perimeter without turning it into an ordinary retail bank.
A subsequent rule expanded what such trust banks are allowed to do, turning what would have been a narrow custody license into something with real operational scope, including digital-asset custody, stablecoin reserve management, and certain payment services.
On top of the charter, a Ripple subsidiary applied for a Federal Reserve master account, the account that would connect Ripple directly to the central bank’s payment rails.
And around that regulatory core, Ripple has been buying capabilities: a prime brokerage, a payments business, and a corporate treasury-services firm, each acquisition adding a piece of the institutional-finance stack.
Layer in the rest and the ambition is obvious. Ripple issues a dollar-pegged stablecoin that has grown past $1 billion in market value.
It holds dozens of regulatory licenses across jurisdictions, and it recently secured preliminary European authorization that lets it offer regulated services across the entire European Economic Area.
That is where Ripple’s European license fits into the larger build. The company is not only chasing U.S. banking access; it is trying to make its regulated-finance stack portable across major markets.
Taken individually, any one of these is a notable corporate step. Taken together, they describe a single, coherent strategy: to become the institutional infrastructure layer for crypto-native finance.
Ripple wants to be a regulated entity that banks and corporations can trust to custody assets, manage stablecoin reserves, settle payments, and connect to both the traditional financial system and the blockchain world.
Ripple is not dabbling in banking. It is building a bank-grade financial institution deliberately, piece by piece.
The question for a token holder is where, in all of this carefully assembled machinery, XRP actually fits.
What a national trust bank is, and what it is not
Before assessing what the charter means for XRP, it is worth being precise about what a national trust bank actually is, because the word “bank” carries connotations the charter does not deliver.
A national trust bank is not a retail bank. It cannot take ordinary deposits, cannot offer checking or savings accounts, and does not carry federal deposit insurance, the protection that backs ordinary bank deposits.
What it can do is custody assets, provide fiduciary and trust services, manage reserves, and, under the expanded rule, handle digital-asset custody and certain payment-related functions.
Headlines that say “Ripple becomes a bank” are gesturing at something real, but they compress away an important distinction.
That distinction matters for understanding the charter’s purpose. Ripple’s trust bank exists primarily to serve Ripple’s stablecoin business.
Its core planned function is to custody and manage the reserve assets that back the stablecoin, which today are held through a separate trust entity, and to provide custody to institutional clients.
By bringing reserve management in-house under a federal charter, Ripple gains tighter control, removes reliance on third-party custodians, and obtains a regulatory standing that few stablecoin issuers can match: oversight at both the federal level, through the national chartering regulator, and the state level, through New York’s financial regulator.
That dual supervision is a genuine selling point to institutions weighing whether to trust Ripple’s rails.
This is also why the fight over trust charters matters. Senator Elizabeth Warren and banking groups have challenged the idea that crypto firms with OCC trust charters should be treated like bank-grade institutions, arguing that they could act like crypto banks without the same restrictions.
The crypto industry has pushed back. The Digital Chamber called on the OCC to uphold crypto trust bank charters for firms including Coinbase, Ripple, Circle, and BitGo, arguing that the charters are part of bringing digital assets into regulated finance rather than keeping them outside it.
But notice what the trust bank does not do. It does not custody XRP for the benefit of XRP holders, does not create any obligation to buy or hold the token, and does not make XRP a bank deposit or a regulated bank instrument.
It is, at its heart, infrastructure for the stablecoin, which is the recurring theme of Ripple’s entire banking build.
The real prize: a Federal Reserve master account
The most consequential piece of Ripple’s banking strategy is the one furthest from being secured: a Federal Reserve master account.
A master account is the account a financial institution holds directly with the central bank, and it is the gateway to the core of the financial system.
It allows direct settlement through the central bank’s payment networks, the same rails the largest banks use, and direct access to base money rather than balances held at a commercial bank.
For a stablecoin issuer, the prize is enormous. With a master account, Ripple could hold the reserves backing its stablecoin directly at the central bank, the safest possible place, eliminating the counterparty risk of relying on private banks and giving institutions far greater confidence in the stablecoin’s solvency and redemption safety.
That is why custody and reserve safety matters so much in this story. Stablecoins are only as trusted as the assets backing them, the institutions holding those assets, and the transparency around redemption.
The catch is that no crypto-native firm has ever received full access of this kind on ordinary terms, and the bar is extraordinarily high.
The central bank has historically been reluctant to extend master accounts to non-traditional institutions. Uninsured trust banks face the most stringent levels of review, and previous attempts by crypto-adjacent firms to win access have often failed or taken years.
Ripple’s subsidiary has applied, and the application remains pending, with no public timeline and no clear signal of when or whether the central bank will act.
Approval would be genuinely transformative. It would mark a deeper integration between a crypto-native company and the core U.S. financial system, and it would dramatically strengthen the institutional credibility of RLUSD.
But it is far from assured. Even in the optimistic case, the direct beneficiary is again the stablecoin and the company’s settlement capabilities, not the token.
A master account would let Ripple hold stablecoin reserves at the central bank and settle through its rails. It would not, by itself, create demand for XRP.
The prize is real, and the prize is mostly about everything except the token.
Why this is mostly a stablecoin story
Step back and a clear pattern emerges from every piece of Ripple’s banking build: it is, overwhelmingly, a stablecoin story.
The trust charter exists primarily to custody and manage stablecoin reserves. The master account, if granted, would primarily benefit the stablecoin by letting its reserves sit at the central bank.
The European license primarily expands where Ripple can offer regulated payment and stablecoin services. The acquisitions in brokerage, payments, and treasury primarily build out an institutional settlement and services business in which the stablecoin is the natural cash leg.
Ripple’s dollar stablecoin has grown past $1 billion, expanded across multiple blockchains, and won approvals in multiple jurisdictions. The banking apparatus is being constructed largely to support and legitimize it.
That is why the RLUSD the bank serves is the center of the story. A stablecoin is useful to institutions precisely because it is designed to hold a steady dollar value while moving across crypto rails.
Ripple’s own reserve-transparency page also shows why this matters. The company is trying to make RLUSD look less like an experimental crypto product and more like a regulated dollar instrument with transparent backing, regular attestations, and bank-grade custody.
This is the same dynamic that defined XRP through 2026, when Ripple’s marquee bank deals and settlement milestones ran through its stablecoin and ledger while the token captured little beyond a negligible network fee.
As previously reported, this is why Ripple wins bypass the token. Ripple can deepen its institutional footprint while XRP still waits for direct, measurable token demand.
The banking build is that dynamic taken to its logical conclusion. Ripple is constructing a regulated financial institution whose central purpose is to make its stablecoin the most trusted, most institutionally credible dollar token in the market, and to build a settlement and custody business around it.
XRP is part of the broader ecosystem, but it is not the thing the bank is for.
A holder hoping that the charter, the master account bid, and the acquisitions would translate into direct demand for the token is, once again, watching the wrong variable.
The value of all this machinery flows first to Ripple the company and to the stablecoin it is built to serve, exactly as Ripple’s own communications have acknowledged in noting that the banking progress is unlikely to move the token’s price directly or immediately.
So what do XRP holders actually get?
If the bank build is mostly about the stablecoin, the fair question is whether XRP holders get anything at all.
The honest answer is yes, but indirectly and slowly. The benefit to XRP runs through legitimacy and ecosystem strength rather than any direct mechanism.
As Ripple becomes a regulated, bank-grade financial institution, the entire ecosystem it anchors gains credibility in the eyes of the banks and corporations Ripple wants as customers.
A more trusted Ripple makes every part of its stack, including the ledger on which XRP lives and the role XRP can play, more palatable to institutional users.
The argument, which Ripple and many holders make, is that demand for one asset in an ecosystem can lift others in the same stack, and that a Ripple wired into the core of the financial system is a Ripple better positioned to drive real-world use of XRP as a bridge asset over time.
This indirect benefit is not nothing, and it would be a mistake to dismiss it. XRP’s most plausible long-term role is as a bridge asset that moves value between currencies in settlement.
A Ripple with a federal charter, a master account, and a credible institutional settlement business is a Ripple with more opportunities to route that kind of settlement in ways that touch the token.
But the benefit is conditional, gradual, and unguaranteed, three qualities that make it very different from the direct, immediate boost holders often hope for.
XRP does not become a bank deposit, a stablecoin, or a regulated instrument through any of this. It remains a separate, volatile asset whose demand depends on whether Ripple’s growing institutional infrastructure eventually channels real settlement volume through it.
The competing path is obvious: the same settlement volume could instead keep flowing through RLUSD, which is better suited to settlement precisely because it does not move in price.
The banking build improves the odds that Ripple can win regulated institutional business someday. It does not make that business flow through XRP now, and it does not create token demand on its own.
The bull case within the bank build
In fairness to the optimistic view, there is a coherent bull case for XRP buried inside Ripple’s banking transformation, and it deserves a clear statement.
The strongest version goes like this: Ripple is methodically removing every reason an institution might hesitate to build on its rails.
The charter answers the custody and reserve-management question. The master account, if granted, answers the reserve-safety question at the highest possible level.
The acquisitions answer the brokerage, payments, and treasury questions. The licenses answer the regulatory question across jurisdictions.
As those barriers fall one by one, Ripple becomes a place where serious institutions can conduct serious volume. In a world where Ripple is running large-scale regulated settlement, the case for using XRP as the neutral bridge asset between currencies strengthens, because the infrastructure to do it at scale finally exists and is trusted.
Pair that with the token’s other tailwinds, including the regulatory clarity from its resolved legal status, the spot exchange-traded funds gathering assets, and the prospect of federal legislation codifying its commodity classification, and the bull case becomes clearer.
That is where the legislation that could codify XRP fits in. If the CLARITY Act turns XRP’s commodity treatment into durable federal law, it could make institutions more comfortable using the token where it has a genuine settlement role.
In that version of the future, XRP sits inside a maturing, increasingly bank-grade ecosystem at exactly the moment that ecosystem becomes capable of institutional-scale activity.
If even a fraction of the settlement flowing through a fully built-out Ripple touches XRP as a bridge, the demand could be meaningful, and it would arrive on top of a token that has already cleared its regulatory hurdles.
This is a real argument, and it is why the banking build is truly good news for the long-term XRP thesis even though it is not a direct catalyst.
The caveat, as always, is the word “if.” The bull case depends on Ripple choosing and managing to route settlement through the token rather than through the stablecoin, and the entire pattern of 2026 suggests the stablecoin keeps winning that role.
The infrastructure being built is real. Whether XRP is wired into it is the open question.
What XRP holders should watch
For a holder trying to judge whether Ripple’s banking transformation will ever translate into token demand, the analysis points to a few specific signals worth tracking, none of which is another charter or acquisition headline.
The first is the Federal Reserve master account decision.
If granted, it would be a landmark for Ripple and the stablecoin, and it would mark the company’s deepest integration into the financial system. Over time, that expands the surface area where XRP could be used.
If denied, a key piece of the institutional thesis stalls.
Either way, it is the most consequential pending item, and its outcome shapes everything downstream.
The second and more important signal is whether XRP actually appears in the settlement flows of Ripple’s bank-grade business, as opposed to the stablecoin doing all the work.
This is the variable that decides the entire question. If Ripple’s institutional settlement increasingly routes through XRP as a bridge asset, generating real, recurring token demand, then the banking build will finally have reached the token.
If, as has been the pattern, the stablecoin carries the settlement while XRP captures only a fee, then the bank is a Ripple and stablecoin story with XRP riding the halo of legitimacy but not the flows.
The third signal is the broader regulatory picture, particularly whether federal legislation codifies XRP’s status, which would compound the legitimacy the banking build provides.
The honest synthesis is that Ripple becoming a bank is a major, genuine achievement that strengthens the company, the stablecoin, and the long-term credibility of the whole ecosystem.
For XRP specifically, it improves the odds without delivering the goods.
The token’s payoff depends on a future choice, to run regulated settlement through XRP, that Ripple has not yet shown it will make.
Until it does, the bank is being built for everything except the token, and the token, as it has all year, waits.
Frequently asked questions
Is Ripple actually becoming a bank?
Sort of, but with important caveats. Ripple won conditional federal approval to operate a national trust bank and applied for a Federal Reserve master account, and it has acquired prime brokerage, payments, and treasury businesses. But a national trust bank is not a retail bank: it cannot take ordinary deposits, offer checking or savings accounts, or carry federal deposit insurance. It is a specialized institution for custody, fiduciary services, and reserve management. So Ripple is building a bank-grade regulated financial institution, but one focused on custody and stablecoin reserves instead of traditional deposit-taking banking.
What is the Federal Reserve master account and why does it matter?
A master account is an account held directly with the central bank, giving direct access to its payment rails and to base money, the same access the largest banks have. For Ripple, it would let the company hold its stablecoin’s reserves directly at the central bank, the safest possible location, eliminating reliance on private banks and boosting institutional confidence in the stablecoin. No crypto-native firm has ever been granted full access of this kind on ordinary terms, the review is stringent, and Ripple’s application is pending with no timeline. Approval would be transformative for the company and stablecoin, though not a direct catalyst for XRP.
Does Ripple’s banking push help XRP?
Indirectly and gradually, not directly. The charter and master account primarily benefit Ripple’s stablecoin, whose reserves they would custody and secure. XRP does not become a deposit, a stablecoin, or a regulated instrument. The benefit to XRP runs through legitimacy: a bank-grade Ripple strengthens the whole ecosystem and improves the odds that XRP is eventually used as a bridge asset in regulated settlement. But that is conditional and slow, not the direct demand boost holders often hope for, and Ripple itself has acknowledged the banking progress is unlikely to move the token’s price immediately.
Why does the stablecoin benefit more than XRP?
Because the entire banking build is designed around the stablecoin. The trust charter exists mainly to custody and manage stablecoin reserves. The master account, if granted, would let those reserves sit at the central bank. The acquisitions build a settlement business in which the stablecoin is the natural cash leg. A stablecoin is suited to settlement precisely because it holds a steady value, while XRP’s volatility makes it less suitable for that role. So Ripple’s regulated infrastructure naturally channels value to the stablecoin, with XRP benefiting only as part of the broader, more credible ecosystem.
What is the bull case for XRP in all this?
The bull case is that Ripple is methodically removing every reason an institution might hesitate to use its rails, through the charter, the master account bid, the acquisitions, and the licenses. As those barriers fall, Ripple becomes capable of large-scale regulated settlement, and the case for using XRP as a neutral bridge asset between currencies strengthens because the trusted infrastructure to do it finally exists. Combined with XRP’s regulatory clarity, its ETFs, and possible federal legislation, the bull case is that XRP sits inside a maturing, bank-grade ecosystem just as that ecosystem becomes capable of institutional-scale activity. The caveat is whether settlement actually routes through XRP instead of the stablecoin.
What should XRP holders watch next?
Three things. First, the Federal Reserve master account decision, which would mark Ripple’s deepest integration into the financial system and expand where XRP could be used, or stall a key part of the thesis if denied. Second, and most important, whether XRP actually appears in the settlement flows of Ripple’s institutional business, generating real token demand, as opposed to the stablecoin doing all the work. Third, the broader regulatory picture, especially whether federal legislation codifies XRP’s commodity status. The token’s payoff depends on Ripple choosing to route regulated settlement through XRP, a choice it has not yet shown it will make.
This article is information, not investment advice. Cryptocurrency is volatile, and regulatory approvals, corporate plans, and figures reflect reporting available as of June 26, 2026, which can change quickly. Verify current data from primary sources before making any decision.
Crypto World
Ripple (XRP) Boosts Global Blockchain Adoption With Over $70M in Donations
Blockchain payments company Ripple has released its 2025 Annual Impact Report, detailing support for education, financial inclusion, sustainability, and humanitarian programs. Since 2018, the company has donated more than $250 million, including over $70 million contributed in 2025.
The report also highlighted how Ripple’s blockchain tools, including the XRP Ledger and the RLUSD stablecoin, supported projects focused on economic opportunity and financial access. These efforts included programs in emerging markets, microfinance, and humanitarian aid through partnerships with nonprofit organizations.
Ripple Expands Its Global Impact
Ripple committed $25 million in RLUSD to support underserved U.S. small business owners and career programs for military veterans. The company also helped partners deploy $53.6 million and supported nearly 12,000 water and sanitation loans through Water.org.
Several non-profit partners described Ripple’s funding as long-term support rather than one-time donations. The International Rescue Committee also continued exploring stablecoins as a tool for delivering faster cash assistance during humanitarian emergencies.
The report also outlined Ripple’s support for blockchain research and education through its University Blockchain Research Initiative. Now in its seventh year, the program spans 62 universities, has awarded $74 million since 2018, and supported 198 XRPL projects in 2025.
Research funded through the initiative covered stablecoins, tokenized real-world assets, decentralized finance infrastructure, cryptographic security, interoperability, artificial intelligence governance, and blockchain applications. Some projects focused on quantum-resistant improvements for the XRP Ledger, privacy technologies, and tools to detect price manipulation in decentralized finance markets.
Progress Across Climate and Community Initiatives
Ripple’s report highlighted its environmental efforts through blockchain-based climate projects. The company said it has invested $31 million in climate initiatives and retired 1,000 tonnes of carbon dioxide equivalent through sustainable aviation fuel credits in 2025. It also plans to retire 93,000 tonnes by 2030.
Beyond environmental initiatives, Ripple said employee participation reached its highest level since the program began. About 80% of employees joined volunteering and donation efforts, supporting 544 nonprofit organizations while raising $550,000 for charitable causes.
Alongside these social and environmental efforts, Ripple highlighted broader blockchain adoption through its programs. The firm said active users increased 37% and transactions rose 113% year over year. Tokenized real-world assets on the XRP Ledger expanded from $24.7 million to $568 million during 2025, while total network transactions surpassed 3.8 billion.
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Crypto World
Aave Advances Automated AAVE Buyback Overhaul With Aavenomics 3.0

Aave founder Stani Kulechov previewed Aavenomics 3.0 on X Thursday, a tokenomics overhaul that would replace the protocol’s existing discretionary buyback program with an automated, non-discretionary on-chain mechanism funded by all protocol and GHO revenue. The announcement came as Kulechov… Read the full story at The Defiant
Crypto World
Cathie Wood snaps up $25.5M in Coinbase, SpaceX and Circle shares
Cathie Wood’s ARK Invest has expanded its positions in Coinbase, SpaceX, Circle, Bullish, and Robinhood by purchasing about $25.54 million worth of shares on Friday across several of its exchange-traded funds.
Summary
- Cathie Wood’s ARK Invest bought $25.54 million worth of Coinbase, SpaceX, Circle, Bullish, and Robinhood shares.
- Coinbase led the purchases with a $10.19 million investment, followed by $7.01 million in SpaceX and $5.79 million in Circle.
- The latest buys extend ARK’s recent accumulation of crypto-linked stocks as Wood continues to downplay persistent inflation concerns.
According to ARK Invest’s latest daily trade disclosure, Coinbase accounted for the firm’s largest purchase by value. The investment manager bought 68,366 Coinbase shares through the ARK Innovation ETF (ARKK), ARK Next Generation Internet ETF (ARKW), and ARK Fintech Innovation ETF (ARKF). Based on the stock’s Friday closing price of $149.06, the purchase was valued at roughly $10.19 million.
SpaceX ranked second among the day’s acquisitions. Across ARKK, ARK Autonomous Technology & Robotics ETF (ARKQ), ARKW, and ARK Space Exploration & Innovation ETF (ARKX), the firm purchased 45,728 shares worth about $7.01 million using the company’s closing price of $153.23.
Circle Internet Group was another major addition. According to the disclosure, ARK acquired 78,756 Circle shares through ARKK, ARKW, and ARKF, with the purchases valued at approximately $5.79 million based on the stock’s $73.57 close.
The buying continued with smaller additions to Bullish and Robinhood. ARK purchased 57,511 Bullish shares valued at around $1.34 million and another 12,269 Robinhood shares worth about $1.21 million, using Friday’s closing prices of $23.29 and $98.69, respectively.
Latest purchases extend a week of aggressive buying
The latest transactions follow several rounds of buying earlier in the week, when ARK increased its exposure to many of the same companies after their share prices declined.
As previously reported by crypto.news, the investment firm bought 9,014 Coinbase shares, 9,264 Circle shares, 9,136 Bullish shares, and 35,023 Robinhood shares after all four stocks finished Thursday’s session in negative territory. Coinbase fell 5.06%, Circle lost 3.06%, Robinhood declined 3.83%, and Bullish dropped 6.77% during that trading session.
Separately, ARK disclosed another purchase of 111,799 Coinbase shares earlier this week, valued at about $18 million. During the same period, the firm also increased its exposure to SpaceX by acquiring 210,121 shares worth roughly $32.5 million across four ETFs.
According to ARK Invest, the firm’s exchange-traded funds follow a portfolio policy that limits any individual holding to no more than 10% of a fund. As stock prices move, positions are periodically adjusted to keep allocations within those limits.
Wood continues backing crypto-linked companies despite macro concerns
The latest investments also come as Wood has maintained a constructive outlook on financial markets despite growing concerns about inflation and monetary policy.
As crypto.news previously reported, Wood said investor meetings across Asia and Europe showed that many market participants expect inflation to remain persistent and believe the Federal Reserve may need to tighten policy further. She argued the data point in a different direction.
In a series of posts on X, Wood said underlying inflation is close to disappearing when measured through unit labor costs. Using first-quarter figures, she noted that U.S. productivity increased about 3% year over year while compensation per hour rose roughly 3.5%, leaving implied underlying inflation at around 0.5%.
Wood also cited data from Truflation, saying the platform’s real-time inflation gauge has fallen from about 11% in 2022 to 1.8%, while its core inflation measure has eased to 1.4%. Her comments contrast with market expectations for a possible 25-basis-point Federal Reserve rate increase in September following May’s 4.2% U.S. consumer price inflation reading.
Crypto World
Tether Surpasses Ethereum as ETH Drops Toward $1.5K
Tether’s USDt has flipped Ether (ETH) into the second spot by market capitalization after a sharp selloff pushed ETH to its lowest level of the year. The rotation underscores a broader theme playing out across crypto: during volatility, traders and institutions increasingly gravitate toward stablecoins for liquidity and risk management.
On Friday, ETH’s market value fell below $185 billion following a 5.2% drop over 24 hours, taking the token down to around $1,510 on Coinbase, according to TradingView. That decline allowed USDt—reported at roughly a $186 billion market cap—to overtake ETH. As Cointelegraph reported, Bitrue Research Institute’s research lead Andri Fauzan Adziima said the stablecoin move “highlights how the market still favors stability over ETH’s volatility right now.”
Key takeaways
- USDt surpassed ETH in market capitalization as Ether slid to about $1,510 on Coinbase after a 5.2% daily drop, per TradingView.
- Analysts interpret the flip as a sign that stablecoins remain preferred during volatility, even when the broader crypto market is shifting.
- Stablecoins represent nearly 15% of total crypto market capitalization, reflecting continued demand for reliable liquidity.
- Ether’s weakness is occurring alongside notable Ethereum Foundation staffing and leadership changes, even as new development initiatives take shape.
Why USDt taking the crown matters
When a stablecoin climbs in market cap during a drawdown, it’s rarely just a one-day anomaly. Stablecoins are often used as the “settlement layer” for trading and transfers—meaning their growth can signal that market participants are prioritizing capital preservation and fast execution over exposure to higher-volatility assets.
Andri Fauzan Adziima of Bitrue Research Institute framed the shift in exactly those terms, suggesting the market’s current preference for stability is outweighing ETH’s relative volatility. That perspective aligns with how market infrastructure typically behaves: deeper stablecoin liquidity can support higher trading activity and lower friction for entering and exiting positions across venues.
Stablecoin momentum and “cycle-independent” demand
The USDt/ETH flip comes amid ongoing stablecoin expansion. Cointelegraph pointed to accelerating stablecoin growth that now accounts for almost 15% of total crypto market capitalization. The article also notes that while stablecoin supply contracted by more than 30% during the last bear market, the latest cycle is different—stablecoin issuance and usage are reaching new highs.
In comments shared on Thursday, 21Shares argued that the current pattern is evidence that stablecoins are becoming one of crypto’s defining use cases and that demand increasingly does not depend on the market cycle. The firm’s statement said: “To us, that is the strongest evidence yet that stablecoins are one of crypto’s defining use cases – demand that no longer depends on the cycle.”
From a practical standpoint, that “cycle-independence” claim matters because it implies stablecoins can remain a structural part of crypto market activity even when risk appetite fades. And as liquidity deepens, more participants can trade with tighter spreads and faster settlement—an environment that can benefit both traders and builders who rely on stablecoin rails for recurring activity.
Ethereum under pressure, with ecosystem shifts underway
Ether’s decline isn’t happening in isolation. The article ties the selloff to a broader stretch of weakness, noting that ETH prices returned to crucial support levels last seen in October 2023 and April 2025. That matters for investors because repeated visits to long-term support can act as a decision point: buyers often step in to defend key ranges, but persistent failures can also accelerate downside.
At the same time, Ethereum’s institutional and organizational landscape has been changing. Cointelegraph cited multiple executive departures as well as a 20% workforce reduction at the Ethereum Foundation. Those internal moves can influence how quickly priorities shift, how quickly research and engineering programs move from roadmap to execution, and—importantly for market participants—how confidence forms around Ethereum’s near-term narrative.
Still, the article highlights a compensating development: a new nonprofit organization called Ethlabs was launched this week by key EF developers and researchers, with backing from ether treasuries Bitmine and Sharplink. The existence of a new entity doesn’t automatically resolve market concerns, but it does signal that ecosystem stakeholders are continuing to organize around Ethereum development rather than stepping away during turbulence.
Not all players are waiting: accumulation and cross-asset rotations
While the USDt flip is a bearish signal for ETH relative performance, the article also points to pockets of support at lower prices. Ether treasury company Sharplink reportedly bought the dip on Thursday, making its first purchase in eight months and acquiring 5,000 ETH. Separately, Bitmine—chaired by Tom Lee—has also been accumulating, adding 76,881 ETH last week, the article notes, referencing its broader bear-market accumulation efforts.
Beyond Ethereum, the stablecoin narrative isn’t unique to USDt. Cointelegraph also reports that Circle’s USDC flipped Ripple’s XRP in market capitalization as XRP retreated toward $1, a level described as its lowest since November 2024. The article gives market caps of $64 billion for XRP versus $73.6 billion for USDC, reinforcing the idea that in periods of weakness for specific assets, stablecoins can keep gaining share.
Circle’s USDC reached a $73.6 billion market capitalization in the comparison cited, while XRP fell back toward $1 and a $64 billion market cap.
For traders, these cross-asset rotations often become a liquidity story as much as a price story: stablecoins can act as a consistent “base” for risk management and positioning, while assets like ETH and XRP can experience sharper drawdowns when sentiment deteriorates.
Looking ahead, the market will likely watch whether ETH can defend its identified support zones and whether stablecoin growth continues to outpace broader crypto assets—especially in the face of ongoing Ethereum ecosystem changes. If USDt’s market cap lead holds during subsequent sessions, it may signal that “stability premium” demand is becoming increasingly persistent rather than reactive.
Crypto World
Garrett Jin Launches Massive $21.7M Short Position on Zcash (ZEC) via Hyperliquid
Key Takeaways
- Prominent crypto trader Garrett Jin has initiated a $21.73M short position on Zcash via Hyperliquid at an entry price of $418.90
- Approximately $4.93M of the total order has been executed, leaving $16.8M unfilled
- Complete execution would position Jin as the platform’s largest ZEC position holder
- Jin’s previous two Zcash trades generated combined profits of $11.66M
- Simultaneously, his 1,268 BTC long position entered at $76,117 faces unrealized losses exceeding $20M
Prominent cryptocurrency trader Garrett Jin has initiated a substantial short position targeting Zcash on the Hyperliquid decentralized trading platform. The position, valued at $21.73 million, carries an entry price of $418.90 per ZEC token.
Blockchain analytics expert Yujin first identified and reported the transaction. Initial data showed that $4.93 million worth of the position had been successfully executed, while the bulk—$16.8 million—remained in the order book awaiting fulfillment.
Potential Impact on Hyperliquid’s Zcash Market
Should the entire order reach completion, Jin’s position would establish him as the dominant Zcash trader on the Hyperliquid platform. This concentration represents significant individual market exposure within the exchange’s ecosystem.
On-chain monitoring service Lookonchain verified the details of Jin’s position. Their analysis revealed the active short employs 2x leverage across 11,780 ZEC tokens, representing approximately $4.92 million in value at the moment of documentation.
Lookonchain’s research also highlighted Jin’s successful track record with Zcash trading. His two preceding ZEC positions collectively yielded profits totaling $11.66 million.
This newest short position continues Jin’s established strategy of betting against Zcash price appreciation. His current wager anticipates ZEC values declining from the $418 threshold.
Bitcoin Long Position Faces Significant Drawdown
Contrary to his Zcash success, Jin’s Bitcoin holdings present a contrasting narrative. He maintains a leveraged long position comprising 1,268 BTC with an average entry point of $76,117 per token.
This Bitcoin trade currently shows substantial negative performance. The unrealized deficit on this position approximates $20.09 million based on recent market data.
Bitcoin’s market price stood around $60,411 during the reporting period, creating a considerable distance from Jin’s $76,117 entry level. This substantial price differential explains the magnitude of unrealized losses.
Taken together, these positions illustrate contrasting outcomes. While Jin has demonstrated profitability through Zcash short strategies, his more substantial Bitcoin wager continues accumulating losses.
Market observers closely monitor Jin’s trading activity due to the considerable capital involved in his transactions. Blockchain analysts including Lookonchain and Yujin systematically document his positions as they materialize on Hyperliquid’s platform.
The $21.73 million Zcash short position remains partially unfilled. Traders following Jin’s activities continue monitoring whether he will complete the full order execution.
Zcash traded at $407.65 during this reporting window, positioning slightly beneath Jin’s $418.90 short entry level. This price differential currently generates modest unrealized gains on the position.
However, his Bitcoin long exposure presents the more pressing challenge. With unrealized losses surpassing $20 million, it constitutes substantial downside risk within his active trading portfolio.
Crypto World
Ripple’s Brad Garlinghouse Slams Michael Saylor’s Bitcoin Strategy as ‘Financial Engineering’
Key Takeaways
- Brad Garlinghouse, Ripple’s CEO, has publicly condemned Strategy’s approach to funding bitcoin acquisitions through preferred shares
- Garlinghouse labeled the strategy as unsustainable “financial engineering” lacking long-term value creation
- STRC preferred shares plummeted to an all-time low, sinking 25% beneath their $100 par value
- Strategy’s common shares fell to their weakest point since February 2024, settling near $82
- Industry analysts at CryptoQuant recommended Strategy halt bitcoin acquisitions and focus on cash reserve restoration
Brad Garlinghouse, CEO of Ripple, maintains his optimistic outlook on bitcoin. However, he has voiced sharp concerns about Michael Saylor’s acquisition methodology.
During a Friday appearance on CNBC, Garlinghouse took aim at Strategy’s practice of issuing preferred shares to generate capital for bitcoin investments. He characterized this approach as “financial engineering” and argued it has inflicted damage across the cryptocurrency sector.
“Financial engineering does not drive long-term value,” Garlinghouse stated. “Team Michael Saylor wasn’t focused on the right stuff and that has hurt the overall market.”
As the head of Ripple, the organization responsible for XRP—a digital asset competing with bitcoin—Garlinghouse clarified that his concerns target the funding mechanism rather than bitcoin itself.
Strategy’s Funding Mechanism Explained
Over the past twelve months, Strategy has relied on preferred share issuances to finance its bitcoin accumulation strategy. The STRC preferred stock offers an 11.5% annual dividend yield and was intended to maintain a value close to $100.
However, Thursday saw STRC crash to unprecedented lows, plunging as much as 26% below its designated $100 par value. Garlinghouse characterized this decline as a “damning indictment” of the company’s approach.
Strategy’s common equity also experienced significant deterioration, reaching levels not seen since February 2024. Shares settled around $82 on Friday. Meanwhile, bitcoin dropped below $59,000 during the trading week.
When STRC trades substantially below $100, Strategy loses the practical ability to issue additional shares and continue bitcoin purchases. The company has suspended this activity temporarily.
Expert Analysis and Recommendations
CryptoQuant published research this week recommending that Strategy suspend bitcoin buying operations and prioritize strengthening its cash position. According to the firm’s analysis, the financial buffer supporting STRC’s dividend obligations has eroded dramatically—from over seven years of coverage down to approximately 14 months.
Benchmark-StoneX analyst Mark Palmer challenged the most pessimistic assessments. He acknowledged that Strategy’s funding mechanism has become “less efficient” but maintains it remains functional. Palmer dismissed comparisons between STRC and completely failed financial instruments.
Pressure on Strategy’s business model has intensified throughout the week. The dual challenge of declining bitcoin valuations coupled with STRC’s deterioration has created a challenging operational environment.
Garlinghouse’s public criticism adds significant weight to mounting questions surrounding the sustainability of Strategy’s preferred-share framework. He directly connected the model’s shortcomings to bitcoin’s recent descent below $59,000.
His fundamental position emphasizes that enduring value in cryptocurrency emerges from practical utility rather than sophisticated financial arrangements.
As of Friday’s close, STRC remains significantly below its $100 par value, while Strategy’s common stock continues trading near multi-year lows.
Crypto World
XRP Risk Of Sub-$1 Drop Rises But Onchain Data Shows Silver Lining
XRP is trading just above $1, leaving the token at its weakest price level of the year, but onchain data paints a different picture.
The exchange-held XRP supply continues to fall, Binance withdrawals have exceeded deposits for seven straight days, whale flows are holding positive and spot XRP exchange-traded funds (ETFs) have attracted $243 million in inflows since April.
The improving onchain data points to healthy network positioning, even as XRP continues to search for a price bottom.
XRP supply on exchanges continues to shrink
Crypto analyst Amr Taha noted that Binance’s XRP reserve has fallen to its lowest level since March after roughly 100 million XRP left the exchange over the past month. Binance’s balance stood at about 2.68 billion XRP on June 25, down from 2.78 billion XRP on May 12, accounting for the largest outflow among major trading platforms.

XRP multi-exchange daily reserve. Source: CryptoQuant
Other exchanges also posted smaller declines. Upbit’s reserve fell to 2.48 billion XRP on June 25 from 2.51 billion XRP on May 31, while Bybit’s holdings declined to 82 million XRP from 92 million XRP on June 2. Binance led in absolute outflows, while Bybit recorded the steepest percentage decline.
Taha also highlighted a significant shift in Binance transaction activity. XRP withdrawal transactions have exceeded deposits for seven consecutive days since June 17. The seven-day withdrawal share climbed to 53.8% on June 23, its highest reading since June 2024, while deposits fell to 46.1%, the weakest level since 2024.

XRP daily deposit/withdrawal transactions (%) on Binance. Source: CryptoQuant
The metric tracks transaction count rather than XRP volume. This indicates users are moving coins off Binance more frequently than sending them to the exchange, marking the longest withdrawal-led stretch in roughly a year.
Large XRP holders supported the trend. XRP whale flow on the 90-day moving average has stayed positive throughout the quarter at 5.143 million XRP per day, showing consistent net accumulation by large wallets instead of distribution.

XRP whale flows. Source: CryptoQuant
Institutional demand has also added support. Spot XRP ETFs recorded $2 million in net inflows on June 24, lifting June’s total netflows to $31 million. Since April, the total cumulative inflows have reached $243 million.
Related: SBI to acquire Bitbank in $289M deal creating Japan’s biggest crypto exchange
XRP price approaches a major demand zone
From a technical standpoint, the higher-time-frame market structure remains bearish for the altcoin. XRP touched $1.01 on Thursday, its lowest price of 2026, leaving the token close to its first move below $1 since November 2024. The decline has pushed XRP down 43% year-to-date.

XRP/USDT, one-week chart. Source: Cointelegraph/TradingView
The next key area for XRP sits within the fair value gap between $1 and $0.63, an unfilled price gap created during the sharp rally in late 2024 that could attract buying interest if the decline extends in the coming weeks.
Black Swan Capitalist founder Versan Aljarrah continues to focus on the longer-term chart. The analyst said XRP has spent years building a large accumulation range with higher lows on both weekly and monthly timeframes.

XRP/USD, one-month chart analysis by Versan Aljarrah. Source: X
Aljarrah argued that extended consolidations often produce stronger breakout moves once the price eventually breaks out of the range, with the analyst targeting $10, i.e., a 900% increase from the current price.
Related: HYPE down 22% from record highs: Will spot demand revive the uptrend?
Crypto World
Dogecoin Faces Danger: Data Shows DOGE Price Could Collapse
Dogecoin is trading at $0.073, down by more than 3% today, and something is about to make things worse. DOGE is entering its statistically worst month of the year with no confirmed catalyst in sight. What the seasonal data reveals about the next 7 days is not comfortable for holders.

Nine consecutive red Junes. That is the streak DOGE carries into mid-2026, with data confirming the current weakness stems from a technical breakdown in a risk-off market environment. Another metric puts the average June return at -7.29%, with a median loss of 9.94% across the streak. Applied to the current price, that average loss projects DOGE near $0.07 by month-end — and Long Forecast’s model goes further, projecting a 15.6% drop in July that could push the coin toward $0.066.
Will Dogecoin dip further?
Discover: The Best Crypto to Diversify Your Portfolio
Can Dogecoin Hold $0.07 Support or Is a Deeper Drop Coming?
DOGE is trading near $0.075, holding slightly above a key support zone around $0.074. Recent selling pressure pushed the price lower, while trading volume remained elevated during the decline. That points to persistent distribution rather than a sharp panic-driven selloff.
Momentum remains weak but not deeply oversold. RSI is hovering near neutral territory, suggesting sellers still have room to press prices lower. Meanwhile, technical signals continue to lean bearish, with resistance clustered around $0.080, followed by the $0.085 area.
Don’t Miss Out on Our $1,000 USDT Airdrop on ByBit
If DOGE maintains support above $0.074 and market sentiment improves, a recovery toward $0.080–$0.085 becomes possible. A rebound in Bitcoin could help drive that move, especially if buyers return near current levels.
The most likely near-term outcome is consolidation between $0.074 and $0.082. Price action has already shown repeated reactions around these levels, while momentum indicators remain mixed, and conviction from either side is limited.
However, a decisive break below $0.074 could expose the next support zone near $0.070. In that scenario, bearish momentum may accelerate as traders reduce risk and buyers wait for stronger signs of stabilization.
Discover: The Best Token Presales
Maxi Doge Eyes Early-Mover Upside as Doge Tests Critical Levels
DOGE, sitting 82% below its late-2024 peak, is in a drawdown that prompts traders to reassess meme coin exposure entirely. The original memecoin’s upside from current levels is capped by heavy resistance overhead and a seasonal headwind lasting at least another month. That gap between risk and potential return is exactly what rotational capital looks for.
Maxi Doge ($MAXI) is positioning itself as the presale-stage alternative for traders who want meme coin exposure without the baggage of an asset sitting deep in a nine-year seasonal downtrend. The project has raised $4.8 million at a current price of $0.0002826, an ERC-20 token built around a “1000x leverage trading mentality.”
Its community structure includes holder-only trading competitions with leaderboard rewards, a Maxi Fund treasury for liquidity and partnerships, and dynamic staking APY. The branding leans hard into gym-culture meme humor (“Never skip leg-day, never skip a pump”), which has demonstrated real viral traction in the meme coin space.
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The post Dogecoin Faces Danger: Data Shows DOGE Price Could Collapse appeared first on Cryptonews.
Crypto World
Securitize Forecasts $400M Funding Round Before US Launch
Securitize, a platform for issuing and managing tokenized securities, says it expects to raise roughly $400 million ahead of its planned public debut following a merger with Cantor Fitzgerald-backed SPAC Cantor Equity Partners II (CEPT). The update comes after the company reported final redemption results showing fewer shareholders than anticipated chose to exit the transaction.
In a statement released Friday, Securitize said that less than 30% of CEPT shareholders elected to redeem. With the deal structured to fund the company through merger proceeds and additional capital instruments, the firm estimates it will receive approximately $400 million in gross proceeds from the combination, including PIPE (private investment in public equity) financings, while excluding transaction-related expenses.
Key takeaways
- Securitize expects about $400 million in gross proceeds from its SPAC merger, supported by PIPE financing.
- Final redemption results from CEPT showed under 30% of shareholders redeemed, suggesting stronger-than-expected deal continuation.
- The transaction is scheduled to close on Wednesday, July 1, with trading expected to begin on the New York Stock Exchange on July 2 under the ticker SECZ.
- Securitize’s move highlights growing Wall Street engagement in tokenization as US regulators continue to scrutinize how tokenized securities are traded and implemented.
Redemptions come in lower than expected
SPAC mergers can hinge on whether public shareholders redeem their positions before the deal closes. In Securitize’s case, the company said its final redemption results indicate that fewer than 30% of CEPT investors opted out—an outcome that helped keep the merger on track and supported investor confidence.
Market reaction reflected that dynamic. CEPT shares rose on Friday, closing up 7% to $10.86 and extending gains in after-hours trading to around $11, according to available market listings.
For investors, the practical implication of lower redemptions is that less transaction capital is withdrawn at the last moment, which can reduce funding uncertainty right before a listing. While the merger’s final economics still depend on the deal’s full structure and closing conditions, redemption levels can serve as an early signal of whether the sponsor-backed plan has broad buy-in among the SPAC’s public shareholders.
Timeline: vote, closure, and expected NYSE debut
Securitize and CEPT said the business combination is expected to close on Wednesday, July 1, assuming shareholders approve the deal on Monday and other standard closing conditions are met. After the closing, the combined company is expected to begin trading on the New York Stock Exchange on Thursday, July 2, under the ticker SECZ.
The sequence matters for traders and market participants watching tokenization-linked listings. The gap between shareholder approval and the expected start of trading is when operational steps—such as completion of the transaction and readiness of post-merger listing—must align. Any changes in the schedule would be a key item for those tracking the tokenized-securities sector’s most prominent public-market entry points.
Why Securitize’s debut matters for tokenization
Securitize’s prospective public-market arrival is positioned as a milestone in the broader push to bring tokenized assets into mainstream finance—particularly as institutions increase their focus on tokenization infrastructure and regulated digital-asset rails.
“Reaching the public markets is a significant milestone for Securitize and a reflection of the growing momentum behind tokenization,” Securitize co-founder and CEO Carlos Domingo said in connection with the deal. Domingo also argued that the concept of major institutions embracing tokenized securities has shifted from “theoretical” to more mainstream over the past several years.
The company is backed by prominent financial institutions including BlackRock and Morgan Stanley, as well as established crypto players such as Coinbase and Circle. Securitize has also built credibility in the tokenization space by supporting the representation of assets on blockchains, and it has worked to translate that capability into regulated issuance and settlement processes.
Earlier this year, Securitize partnered with the New York Stock Exchange to create tokenized assets for the exchange’s upcoming tokenized securities platform, which is part of a wider trend of traditional venues exploring tokenized market infrastructure.
Regulatory backdrop: tokenized stocks still under scrutiny
The timing of Securitize’s public debut comes as US regulators continue to evaluate how tokenized securities should be handled in practice. Tokenization can span multiple categories—from tokenized real-world assets to digital representations of traditional stocks—raising questions about custody, transfer restrictions, market structure, and compliance.
Earlier coverage cited that the US Securities and Exchange Commission was reportedly prepared to allow trading of tokenized stocks under an innovation-related exemption, but that plan was delayed later after stock exchange officials raised implementation concerns. That context underscores why market participants will likely watch how Securitize and partners address operational and compliance details as public trading begins.
Other institutional commentary also points to growing expectations for tokenization adoption. For example, a report attributed to Standard Chartered suggested that tokenized assets active in decentralized finance could expand dramatically to $2.7 trillion by the end of 2030, projecting a 37-fold increase from earlier baselines. While such projections are longer-term and subject to change, they reflect how capital markets research firms are framing tokenization as an area with potential for significant expansion.
In the near term, what remains uncertain is how quickly regulatory clarity translates into broader market adoption beyond pilots and limited offerings—especially for tokenized equities where market structure questions can be complex. Investors should also keep an eye on whether tokenized-securities platforms built by major venues can achieve the liquidity, transferability, and compliance requirements needed for scale.
With CEPT’s lower-than-expected redemption rate and a clear path to an NYSE listing under SECZ, the next steps are straightforward: shareholder approval on Monday and the scheduled close on July 1. The bigger question for the sector is how regulatory guidance and real-world trading implementations evolve after these listings, and whether tokenization continues moving from concept and infrastructure into liquid, widely accessible markets.
Crypto World
Ethereum (ETH) Price Plummets as Whale Investors Face Historic Losses Not Seen Since 2019
Key Takeaways
- Ethereum has declined 23.5% in the past month, currently trading near $1,557
- Large ETH holder groups are experiencing unrealized losses for the first time in five years
- Ethereum ETF products are approaching their seventh consecutive week of capital withdrawals
- A protocol developer highlights potential funding shortfall of approximately $30M annually in coming months
- Critical price levels: support zone at $1,500–$1,510; overhead resistance begins at $1,710
The world’s second-largest cryptocurrency has faced relentless downward pressure during June, sliding from levels above $2,000 to approximately $1,557 by June 26. This represents a monthly decline of 23.5%, with an additional 6.7% drawdown occurring over the past seven days alone.

In a symbolic shift, Tether’s total market capitalization has now surpassed Ethereum’s for the first time in history — $186.06 billion compared to $185.66 billion — underscoring ETH’s recent underperformance in the broader cryptocurrency ecosystem.
Market analyst Ted Pillows commented via social media that Ethereum “tapped the lows again” and observed that “momentum is still weak due to broader market correction.” He suggested that if ETH can successfully reclaim the $1,750 threshold, a potential relief bounce could materialize in the following month.
Technical analysis of the daily timeframe reveals that ETH violated an ascending trendline established in February. Following this breakdown, the asset experienced rapid declines through the $1,900, $1,800, and ultimately into the $1,550 region.
Major Holder Groups Recording Rare Loss Scenario
Data from CryptoQuant indicates that all significant Ethereum whale categories — including addresses controlling more than 100,000 ETH — are currently experiencing unrealized losses. This phenomenon has occurred only once previously, during 2019, which ultimately marked a long-term price floor for the cryptocurrency.
Historically, capitulation among large holders has coincided with market bottoms rather than signaling further deterioration. While smaller whale categories have periodically entered loss territory, the participation of the largest stakeholders in this condition represents an exceptional occurrence.
The Estimated Leverage Ratio (ELR) metric has simultaneously contracted from 1.11 to 0.85 throughout the past three weeks. This movement indicates substantial closure or liquidation of leveraged trading positions, potentially alleviating additional downside risk.
Exchange-Traded Fund Withdrawals and Development Financing Concerns
Ethereum spot ETF products are tracking toward seven straight weeks of net capital outflows, with the current period positioned to register the most significant withdrawals since January, based on SoSoValue analytics.
Trent Van Epps, Protocol Guild coordinator who recently departed the Ethereum Foundation following a five-year tenure, has issued a cautionary statement regarding core development financing challenges. He calculates that Ethereum’s essential development operations require approximately $30 million annually, an amount the Ethereum Foundation’s reserves may struggle to consistently provide.
Van Epps noted that Protocol Guild has allocated nearly $40 million to developers across four years, but emphasized this remains insufficient. He anticipates new institutional participants will need to emerge within the coming months to address the gap.
Primary technical levels to monitor: downside support positioned at $1,510 and the psychologically significant $1,500 level; upside resistance located at $1,710 and $1,774. The MACD indicator has returned to negative territory, with the signal line currently registering -78.35.
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