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Vitalik Buterin Proposes Multi-Tiered State Design to Achieve 1000x Ethereum Scaling

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TLDR:

  • Ethereum state grows 100 GB yearly; 20x scaling would create 8 TB state in four years for builders. 
  • Strong statelessness and state expiry solutions face backwards compatibility issues with existing apps. 
  • New temporary storage resets monthly while UTXO systems enable zero-duration expiry for cost savings. 
  • Developers can keep using permanent storage initially, then migrate to cheaper tiers over time gradually. 

 

Ethereum co-founder Vitalik Buterin has unveiled a comprehensive proposal to address state scaling challenges on the network.

The plan introduces new forms of state storage alongside existing mechanisms to achieve 1000x scalability. Posted on February 5, Buterin’s proposal acknowledges that while Ethereum has clear pathways for scaling execution and data, state scaling remains fundamentally different and requires innovative solutions.

Asymmetric Scaling Challenge Creates Need for Alternative Approach

Buterin outlined in his post on X that Ethereum faces different scaling realities across three critical resources. “We want 1000x scale on Ethereum L1. We roughly know how to do this for execution and data. But scaling state is fundamentally harder,” he stated.

Execution can achieve 1000x gains through ZK-EVMs, while data scaling reaches similar levels via PeerDAS technology. However, state scaling lacks such breakthrough solutions.

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Current state grows at 100 GB annually, and a 20x increase would create 2 TB yearly growth. After four years, this results in 8 TB total state size that builders must maintain.

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The proposal explains that database efficiency and syncing present major obstacles. Modern client databases struggle with multi-terabyte states because writes require logarithmic tree updates.

Buterin emphasized that state differs fundamentally from computation and data. Builders need complete state to construct any block, regardless of gas limits.

This reality demands conservative scaling approaches and eliminates many sharding techniques that work for other resources. The network cannot rely on professional builders alone, as permissionless block building requires reasonable setup costs.

Strong Statelessness and Expiry Mechanisms Face Compatibility Issues

The post analyzed why previously proposed solutions fall short of requirements. Strong statelessness would require users to specify accessed accounts and storage slots while providing Merkle proofs.

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This approach creates three major problems: dependency on off-chain infrastructure, backwards incompatibility with dynamic storage access patterns, and increased bandwidth costs reaching 4 KB per simple ERC20 transfer.

State expiry designs also encounter fundamental obstacles. Creating new accounts requires proving nothing existed at that address throughout Ethereum’s entire history.

Repeated regenesis schemes demand N lookups for account creation in year N. Address period mechanisms attempt mitigation but break compatibility with existing ERC20 contracts that use opaque storage slot generation.

Buterin noted these explorations reveal important patterns. “Replacing all state accesses with Merkle branches is too much, replacing exceptional-case state accesses with Merkle branches is acceptable,” he explained.

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The analysis points toward tiered state systems that distinguish high-value frequently accessed state from lower-value rarely accessed state. However, backwards compatibility proves extremely difficult since lower tiers cannot support dynamic synchronous calls at all.

New Storage Types Enable Developer Choice Between Cost and Flexibility

The proposal introduces temporary storage that resets monthly and UTXO-based systems as primary solutions. Buterin described his vision: “The most practical path for Ethereum may actually be to scale existing state only a medium amount, and at the same time introduce newer forms of state that would be extremely cheap but also more restrictive.”

Temporary storage suits throwaway state for auctions, governance votes, and game events. ERC20 balances could use resurrection mechanisms with bitfields tracking historical state usage.

This design would support 8 TB of temporary state monthly with only 16 GB permanent storage for tracking. UTXO systems take expiry to its logical extreme with zero-duration periods.

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Buterin envisions user accounts and smart contract code remaining in permanent storage for accessibility. NFTs and token balances would migrate to UTXOs or temporary storage, while short-term event state uses temporary mechanisms.

Core DeFi contracts would stay permanent for composability, but individual positions like CDPs could move to cheaper tiers. Developers can initially use permanent storage exclusively, then optimize over time as the ecosystem adapts.

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Building Digital Economies with Metaverse Blockchain Games

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Robinhood’s Event Driven Trading banner

For years, metaverse games were treated as experimental digital spaces, immersive, creative, but largely positioned as merely entertainment projects. However, that perception is changing rapidly.

Enterprises and forward-looking studios are no longer investing in metaverse blockchain games just to create virtual worlds. The focus is on building persistent digital economies where users socialize, trade, own assets, and generate value.

The shift is subtle but powerful. Metaverse game development is evolving from experiences into economic ecosystems. Businesses that understand this transition are positioning themselves at the forefront of the next digital economy wave. It is because the next generation of digital platforms will not simply be social networks or apps; they will be immersive environments where commerce, community, and ownership converge.

From Virtual Spaces to Economic Systems

A traditional virtual world offers exploration and interaction. On the other hand, a metaverse blockchain game introduces something far more powerful that is economic permanence. When assets exist on-chain & transactions are verifiable, the environment becomes more than just a playground, it becomes a marketplace and a functioning economy.

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These ecosystems are built on several pillars:

  • Digital Ownership
    True digital ownership changes user psychology. When players genuinely own assets like characters, land, skins, or tools, they tend to treat them as investments rather than consumables. For enterprises, this increases willingness to spend and builds long-term emotional attachment.
  • Asset Scarcity
    Scarcity drives perceived value. Limited or time-bound assets create collectability and stimulate secondary markets. When managed strategically, scarcity supports demand cycles and stabilizes ecosystem value.
  • Tokenized Economies
    Tokens are not just rewards, they are economic instruments. At the time when structured properly, they guide participation, governance, and ecosystem sustainability. Enterprises can use tokenomics to align user incentives with platform growth.
  • Interoperable Assets
    Assets usable across environments hold higher value. Interoperability reduces user risk and encourages deeper investment. It also enables cross-platform partnerships and larger ecosystem reach.
  • Transparent Transactions
    Blockchain-backed transparency builds trust. Every trade and transfer is verifiable, thereby reducing disputes & reinforcing fairness both of which are critical for long-term economic health.
    Players stop being mere participants. They become stakeholders. For enterprises, this transforms games into economic platforms.

Why Businesses Are Paying Attention

Decision-makers increasingly view metaverse blockchain games as strategic digital infrastructure rather than creative experiments.

  • Brand Engagement at Depth
    Unlike short campaigns, immersive worlds host users for hours. This builds emotional connection and stronger brand recall.
  • Digital Commerce Opportunities
    Virtual goods, land, access passes, and collectibles open recurring revenue streams. These are not one-off purchases but parts of ongoing economies.
  • Loyalty & Membership Ecosystems
    Ownership-based loyalty outperforms point systems. NFT or token memberships carry tradable value and exclusivity, driving retention.
  • Community-Led Growth
    Users who own assets become advocates. When ecosystem success benefits participants, organic growth follows.
  • First-Mover Positioning
    Early adopters gain insights, data, and ecosystem maturity before competitors enter. This builds defensible advantages.
    It is exactly the reason why metaverse initiatives are now discussed in boardrooms, not just marketing teams.
Want to Build a Full-Scale Digital Gaming Economy?

The Role of Blockchain in Making Economies Work

Without blockchain, virtual economies rely on centralized control, which weakens trust and portability. The introduction of blockchain brings in:

  • Verifiable Ownership
    Ownership recorded on-chain gives users real control, not platform-dependent licenses.
  • Trustless Transactions
    Peer-to-peer transactions reduce reliance on intermediaries, lowering costs and friction.
  • Smart Contract Automation
    Rules execute automatically. Royalties, revenue splits, and governance can function without manual oversight.
  • Transparency
    Open ledgers help reduce fraud and simplify the audit process.
  • Interoperability Potential
    Shared standards allow assets to travel across platforms, increasing lifespan and utility.
    When users trust the system, they invest more time and capital. That trust fuels sustainable economies.

Where Many Projects Go Wrong

Not every metaverse blockchain game succeeds. A number of them fail due to economic misdesign rather than technical flaws.

  • Speculation-Driven Models
    Short-term hype collapses without utility.
  • Inflationary Reward Systems
    Over-issuance devalues tokens and drives users away.
  • Weak Governance
    Without rules, economies tend to destabilize.
  • Poor Onboarding
    Complex wallet flows deter mainstream users.
  • Infrastructure Gaps
    Systems must be built to scale over time. Performance failures damage credibility.

What Sustainable Metaverse Economies Require

Persistent economies demand disciplined planning.

  • Economic Modeling
    Balanced supply-demand and token sinks maintain value.
  • Scalable Infrastructure
    Cloud and blockchain must work together for real-time experiences.
  • Security Frameworks
    Audited contracts and secure wallets protect ecosystems.
  • Governance Systems
    Clear rules build confidence.
  • Live Economy Management
    Economies need monitoring and tuning.
  • Content Pipelines
    Fresh content sustains demand and engagement.

The Strategic Value for Businesses

Enterprises that invest thoughtfully gain:

  • Recurring monetization channels
  • High-value digital communities
  • Long-term retention
  • Behavioral data insights
  • Brand differentiation
  • Platform-level control over engagement

Instead of chasing users, they build environments users return to.

The Competitive Reality

The metaverse space is no longer empty. Major brands, gaming studios, and tech firms are actively experimenting and investing. As more players enter, the cost of late adoption rises.

Businesses that wait will have to face:

  • Higher user acquisition costs
  • Saturated virtual spaces
  • Reduced novelty advantage
  • Fewer partnership opportunities

Early movers, however, shape standards and user expectations. They build ecosystems before markets mature. This is not about rushing blindly; it’s about strategic timing. Businesses that plan now can enter with clarity rather than urgency later.

Why Development Expertise Matters

Metaverse blockchain games sit at the intersection of:

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  • Game design
  • Blockchain engineering
  • Economic architecture
  • Security infrastructure
  • Community mechanics

Poor execution doesn’t just create bugs; it destabilizes economies. A capable game development company understands how these layers interact to build sustainable ecosystems.

Final Thoughts

Metaverse blockchain games are no longer novelty projects. They are evolving into persistent digital economies where ownership, engagement, and value intersect. Enterprises recognizing this shift are not building games; they are building digital nations.

Antier, as a reliable metaverse game development partner, works with enterprises & studios to develop blockchain games designed for scalability, sustainability, and long-term economic participation. It is because the future of digital economies won’t just be visited, they’ll be lived in.

Frequently Asked Questions

01. What is the main shift in the perception of metaverse games?

The perception is shifting from viewing metaverse games as mere entertainment projects to recognizing them as platforms for building persistent digital economies where users can socialize, trade, own assets, and generate value.

02. How does digital ownership impact user behavior in metaverse games?

True digital ownership changes user psychology, leading players to treat their assets as investments rather than consumables, which increases their willingness to spend and fosters long-term emotional attachment.

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03. What are the key pillars that support metaverse economic ecosystems?

The key pillars include digital ownership, asset scarcity, tokenized economies, interoperable assets, and transparent transactions, all of which contribute to a functioning economy within the metaverse.

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Novo Nordisk (NVO) Stock Drops as Legal War Erupts Over $49 Wegovy Knockoff

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NVO Stock Card

TLDR

  • Novo Nordisk shares fell 7% Thursday when Hims & Hers introduced a $49 compounded Wegovy pill, compared to Novo’s $149 branded version
  • The Danish pharmaceutical company plans legal action, labeling the product “illegal mass compounding” that threatens patient safety
  • Eli Lilly stock also declined 7% as investors worried about increased market competition for weight loss medications
  • Hims & Hers argues its compounded version is legal as a “personalized” treatment with different formulation, despite semaglutide patents running through 2032
  • Novo’s stock has crashed 50% in 2025 and dropped another 15% in 2026 following guidance predicting sales declines between 5% and 13%

Novo Nordisk experienced a 7% stock decline Thursday following Hims & Hers’ announcement of a $49 compounded Wegovy weight loss pill. The Danish drugmaker swiftly responded with plans for legal action.


NVO Stock Card
Novo Nordisk A/S, NVO

The telehealth platform priced its alternative at $49 for the initial month and $99 monthly thereafter with a five-month plan. This represents a substantial discount from Novo’s $149 branded pill price.

Eli Lilly shares tumbled 7% alongside Novo on competitive concerns. Hims stock briefly rallied before retreating after legal threats emerged.

Novo condemned the launch as “illegal mass compounding that poses a risk to patient safety.” The company vowed to pursue legal and regulatory measures to protect its patents and the drug approval process.

“This is another example of Hims & Hers’ historic behaviour of duping the American public with knock-off GLP-1 products,” the company stated. The FDA previously cautioned Hims regarding deceptive GLP-1 product advertising.

Compounding Controversy

Semaglutide maintains U.S. patent protection through 2032. Hims contends its version qualifies as legal personalized compounding.

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The company states its compounded product employs a different formulation and delivery mechanism than FDA-approved oral semaglutide. Hims previously sold compounded injectable semaglutide and now offers pills.

Novo produces Wegovy pills using specialized SNAC technology to facilitate oral absorption. The effectiveness of Hims’ alternative formulation remains uncertain.

The two companies briefly collaborated in 2025 on discounted weight loss shots. Novo severed the partnership within two months, accusing Hims of “deceptive” marketing.

Novo Faces Headwinds

The dispute intensifies pressure on Novo Nordisk during a challenging stretch. Shares plummeted nearly 50% throughout 2025, marking the company’s worst annual performance.

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The stock has dropped an additional 15% in 2026 year-to-date. Investors question Novo’s capacity to maintain revenue growth against strengthening competition.

Novo forecasted last week that 2026 sales and profits would fall 5% to 13%. The company cited U.S. pricing challenges and patent expiration in markets including Canada and China.

CEO Mike Doustdar noted 170,000 patients started taking Wegovy pills since the January rollout. He framed the pessimistic outlook as temporary pain for future benefit.

“We are creating affordability for the patients, millions of patients that are right now in need of GLP-1 products, but simply could not afford it,” Doustdar explained.

Market Dynamics Shift

Eli Lilly plans to introduce its weight loss pill, orforglipron, in the first half of 2026 subject to FDA clearance. The company anticipates 25% sales growth this year, contrasting with Novo’s negative projection.

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Leerink analyst Michael Cherny noted Hims should explore similar opportunities for upcoming weight loss medications as the market expands.

Eli Lilly did not provide comment on the Hims development. Novo launched its Wegovy pill in the United States during early January 2026.

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ARK offloads $17 million of Coinbase, adds $18 million of Bullish amid crypto rout

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ARK offloads $17 million of Coinbase, adds $18 million of Bullish amid crypto rout

ARK Invest sold $17.4 million worth of Coinbase (COIN) stock and bought a similar amount in Bullish (BLSH) stock on Thursday as crypto equities were routed.

Cathie Wood’s investment management company sold 119,236 COIN shares, worth $17.4 million as of Thursday’s close. COIN lost 13.3% on the day to close at $146.12 amid ongoing tanking of the crypto market which has seen bitcoin fall as low as $60,000, its lowest point since November 2024.

ARK also bought 716,030 shares in crypto exchange Bullish, according to an emailed disclosure. The shares are worth $17.8 million, based on BLSH’s closing price of $24.90, nearly 8.5% lower on the day. Bullish is also the parent company of CoinDesk.

It is common to see ARK Invest make sizeable purchases of crypto-adjacent companies when their prices slide due to broader downturns in the cryptocurrency market. The Florida-based company attempts to capitalize on the chance to capture greater value from equities and rebalance the holdings of its funds to reflect the different prices.

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However, it is somewhat rarer to see ARK use this as a window to offload shares in a major crypto holding such as Coinbase.

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Bitcoin (BTC) price recovery still faces macro risks: Crypto Daybook Americas

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CD20, Feb. 6 2026 (CoinDesk)

By Omkar Godbole (All times ET unless indicated otherwise)

Friday’s crypto markets are a sea of green, bouncing from yesterday’s brutal drubbing in a classic oversold rebound. But real risks linger, threatening any lasting recovery.

Bitcoin has climbed back to $65,000 after flirting with $60,000, with BlackRock ETF action hinting at capitulation, that is, long-term holders dumping at a loss, often the bear market’s final gasp. The broader market has perked up, too, with XRP, SOL, ETH and other tokens regaining some poise, while the CoinDesk 20 Index added nearly 9% since midnight UTC.

Still, put options on bitcoin remain in demand, signaling persistent downside fear. It makes sense for a couple of key reasons: First, macro risks have eased, but aren’t gone. President Donald Trump signed a funding bill Tuesday to end the government shutdown, but the Department of Homeland Security cash runs dry in eight days, which means there could be another circus by Feb. 14.

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Meanwhile, oil prices are buoyant on both sides of the Atlantic on concerns the Iran-U.S. tensions will escalate. A spike there could add to global inflation, triggering a flight to safety and hammering risk assets like crypto.

Most critically, the recent crash has pushed many holders and digital-asset treasuries underwater. Many of those may capitulate and become marginal sellers in the market, potentially capping rallies. Plus, confidence tends to rebuild only slowly after a crash, which is why snapback recoveries always crawl.

These things taken together indicate that the market may not be out of the woods yet. Stay alert!

Read more: For analysis of today’s activity in altcoins and derivatives, see Crypto Markets Today

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What to Watch

For a more comprehensive list of events this week, see CoinDesk’s “Crypto Week Ahead“.

  • Crypto
  • Macro
    • Feb. 6, 8:30 a.m.: Canada unemployment rate for January (Prev. 6.8%)
    • Feb. 6, 10 a.m.: Canada Ivey PMI index for January (Prev. 51.9)
    • Feb. 6, 10 a.m.: U.S. Michigan Consumer Sentiment preliminary for February (Prev. 56.4); Michigan inflation expectations (Prev. 4%)
  • Earnings (Estimates based on FactSet data)

Token Events

For a more comprehensive list of events this week, see CoinDesk’s “Crypto Week Ahead“.

  • Governance votes & calls
    • Feb. 6: Chainlink to host an X Spaces session on “Building with the Chainlink Runtime Environment.”
  • Unlocks
    • Feb. 6: Hyperliquid to unlock 2.79% of its circulating supply worth $287.68 million.
    • Feb. 6: to unlock 41.7% of its circulating supply worth $26.87 million.
  • Token Launches
    • Feb. 6: MOVA (MOVA) to be listed on LBank, BingX, KuCoin, MEXC and others.

Conferences

For a more comprehensive list of events this week, see CoinDesk’s “Crypto Week Ahead“.

Market Movements

  • BTC is up 4.55% from 4 p.m. ET Thursday at $66,022.00 (24hrs: -6.74%)
  • ETH is up 4.14% at $1,924.90 (24hrs: -7.3%)
  • CoinDesk 20 is up 4.75% at 1,905.03 (24hrs: -7.49%)
  • Ether CESR Composite Staking Rate is up 39 bps at 3.48%
  • BTC funding rate is at -0.0142% (-15.5862% annualized) on Binance
CD20, Feb. 6 2026 (CoinDesk)
  • DXY is unchanged at 97.81
  • Gold futures are down 0.19% at $4,880.30
  • Silver futures are down 4.39% at $73.35
  • Nikkei 225 closed up 0.81% at 54,253.68
  • Hang Seng closed down 1.21% at 26,559.95
  • FTSE is up 0.01% at 10,309.76
  • Euro Stoxx 50 is up 0.27% at 5,941.80
  • DJIA closed on Thursday down 1.20% at 48,908.72
  • S&P 500 closed down 1.23% at 6,798.40
  • Nasdaq Composite closed down 1.59% at 22,540.59
  • S&P/TSX Composite closed down 1.77% at 31,994.60
  • S&P 40 Latin America closed down 1.01% at 3,616.07
  • U.S. 10-Year Treasury rate is down 1.8 bps at 4.192%
  • E-mini S&P 500 futures are up 0.3% at 6,841.00
  • E-mini Nasdaq-100 futures are up 0.36% at 24,740.50
  • E-mini Dow Jones Industrial Average Index futures are up 0.16% at 49,075.00

Bitcoin Stats

  • BTC Dominance: 58.77% (+0.47%)
  • Ether-bitcoin ratio: 0.02917 (0.43%)
  • Hashrate (seven-day moving average): 913 EH/s
  • Hashprice (spot): $29.76
  • Total fees: 5.59 BTC / $377,330
  • CME Futures Open Interest: 115,230 BTC
  • BTC priced in gold: 13.5 oz.
  • BTC vs gold market cap: 4.4%

Technical Analysis

Bitcoin's weekly price swings in candlestick format. (TradingView)

BTC is closing on the pivotal 200-week SMA support. (TradingView)
  • The chart shows bitcoin’s weekly price swings in candlestick format since 2019.
  • Prices are rapidly approaching their average over 200 weeks, represented by the red line.
  • BTC has consistently put in bear-market bottoms around this average, suggesting the current pullback could be in its final stages.

Crypto Equities

  • Coinbase Global (COIN): closed on Thursday at $146.12 (-13.34%), +5.97% at $154.84 in pre-market
  • Circle Internet (CRCL): closed at $50.23 (-8.76%), +5.40% at $52.94
  • Galaxy Digital (GLXY): closed at $16.84 (-16.47%), +6.35% at $17.91
  • Bullish (BLSH): closed at $24.90 (-8.46%), +3.98% at $25.89
  • MARA Holdings (MARA): closed at $6.73 (-18.72%), +6.39% at $7.16
  • Riot Platforms (RIOT): closed at $12.06 (-14.71%), +5.14% at $12.68
  • Core Scientific (CORZ): closed at $14.81 (-8.27%), +1.99% at $15.11
  • CleanSpark (CLSK): closed at $8.27 (-19.13%), -3.33% at $7.99
  • CoinShares Valkyrie Bitcoin Miners ETF (WGMI): closed at $35.23 (-12.56%), +2.24% at $36.02
  • Exodus Movement (EXOD): closed at $9.42 (-11.96%), -1.27% at $9.30

Crypto Treasury Companies

  • Strategy (MSTR): closed at $106.99 (-17.12%), +6.71% at $114.17
  • Strive (ASST): closed at $9.86 (-16.75%)
  • SharpLink Gaming (SBET): closed at $6.07 (-14.27%), +4.12% at $6.32
  • Upexi (UPXI): closed at $1.09 (-19.85%), +7.34% at $1.17
  • Lite Strategy (LITS): closed at $0.95 (-10.27%)

ETF Flows

Spot BTC ETFs

  • Daily net flows: -$434.1 million
  • Cumulative net flows: $54.3 billion
  • Total BTC holdings ~1.27 million

Spot ETH ETFs

  • Daily net flows: -$80.8 million
  • Cumulative net flows: $11.86 billion
  • Total ETH holdings ~5.87 million

Source: Farside Investors

While You Were Sleeping

Bitcoin surges back above $65,000 after $700 million wipeout in Asia whipsaw (Coindesk): Bitcoin rebounded above $65,000 after its worst one-day drop since November 2022. About $700 million in leveraged crypto positions were liquidated in a few hours,

Stocks reel as AI fears dominate market action (Reuters): Global markets retreated as a stock rout on Wall Street spread worldwide, with volatility gripping precious metals and cryptocurrencies while AI fears weighed on equities.

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Weak earnings drag IREN, Amazon; bitcoin stocks rebound in pre-market (CoinDesk): IREN earnings were weaker than expected, while Amazon missed EPS estimates and beat on revenue.

Big tech to spend $650 billion this year as AI race intensifies (Bloomberg): The high spending projections raise concerns about energy supplies, prices, and the potential distortion of economic data, raising questions about whether the companies can afford the costs.

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$6 Million HBAR Liquidations Ahead If Price Breaks This Pattern

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HBAR MFI

Hedera has remained under selling pressure after a steady decline brought HBAR back to retest a long-standing technical pattern. The token has been trading within this structure for several months, limiting upside attempts. 

While multiple indicators now point toward a bullish setup, price action has yet to confirm the shift, keeping sentiment cautious.

HBAR Has An Underlying Bullish Trigger

HBAR’s Money Flow Index is showing early signs of strength despite continued price weakness. On the two-day chart, the indicator is forming a bullish divergence with the price. While HBAR has printed a lower low, the MFI has held higher lows, indicating rising buying pressure beneath the surface.

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This divergence suggests that selling momentum is gradually fading. As sellers lose control, buyers begin to step in without immediately pushing prices higher. Such conditions often precede trend reversals, especially when supported by compression patterns and improving momentum indicators across higher timeframes.

Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.

HBAR MFI
HBAR MFI. Source: TradingView

Derivatives data highlights growing risk for bearish traders. The liquidation map shows that a breakout in HBAR price would place significant pressure on short positions. If the price reaches $0.1013, approximately $6.2 million in short liquidations could be triggered, forcing rapid position closures.

Given the pattern HBAR is currently trading within, a breakout could occur quickly once resistance is breached. Forced liquidations typically accelerate price movement, amplifying upside momentum. As a result, short traders face heightened exposure if HBAR breaks above its current range.

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HBAR Liquidation Map.
HBAR Liquidation Map. Source: Coinglass

HBAR Price Breakout Is Possible

HBAR price is trading near $0.0826 at the time of writing, holding above the $0.0786 support level. The altcoin has been moving within a descending channel for nearly four months. This structure reflects prolonged consolidation while volatility continues to compress.

A breakout from this pattern appears increasingly likely as selling pressure dissipates on a macro scale. Confirmation would require HBAR to breach the channel’s upper trendline and flip $0.1042 into support. Such a move would trigger short liquidations and push the price toward $0.129, the pattern’s projected 32% upside target.

HBAR Price Analysis.
HBAR Price Analysis. Source: TradingView

However, downside risk remains if broader market conditions fail to improve. A loss of the $0.0786 support would weaken the structure. Under that scenario, HBAR could slide toward $0.0622. A move to that level would invalidate the bullish thesis entirely.

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Bitcoin Slides Below $70,000 After Breaking Key Support

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Simon Peters, Crypto Analyst at eToro

Editor’s note: eToro crypto analyst Simon Peters outlines the forces behind bitcoin’s sharp pullback from its October 2025 highs, pointing to a broader risk-off environment, leverage unwinds, and fragile investor sentiment across global markets. The commentary focuses on key technical and on-chain indicators now in focus, including long-term support levels and valuation metrics that have historically marked major market bottoms. As bitcoin trades under renewed selling pressure, the analysis frames the current correction within past cycles, while highlighting the conditions that could help stabilize prices if macro and market dynamics begin to shift.

Key points

  • Bitcoin has fallen sharply from its October 2025 peak amid global risk-off sentiment.
  • Liquidation of leveraged positions has intensified downside pressure.
  • The 200-week moving average is being watched as a potential long-term support level.
  • Historical cycles show similar corrections in 2015, 2018, 2020, and 2022.
  • On-chain MVRV Z-score signals bitcoin may be nearing long-term fair value.

Why this matters

The analysis offers a timely snapshot of market psychology as bitcoin navigates one of its deepest post-ETF drawdowns. For investors and builders, long-term indicators like the 200-week moving average and MVRV Z-score provide context beyond short-term volatility. In a market increasingly influenced by macro conditions and institutional flows, understanding where leverage resets and valuation metrics converge is key to assessing whether the current correction is a pause or a potential inflection point.

What to watch next

  • Bitcoin’s behavior around the 200-week moving average.
  • Evidence of reduced leverage and easing forced liquidations.
  • Changes in ETF inflows as broader risk sentiment evolves.
  • Shifts in macro and geopolitical conditions impacting risk assets.

Disclosure: The content below is a press release provided by the company/PR representative. It is published for informational purposes.

Abu Dhabi, United Arab Emirates – February 05, 2026: “After reaching an all-time high of $126,500 in October 2025, bitcoin has continued to slide as broader risk-off sentiment spills into the crypto market,” said Simon Peters, Crypto Analyst at eToro.

Simon Peters, Crypto Analyst at eToro
Simon Peters, Crypto Analyst at eToro

“Heightened geopolitical tensions, macroeconomic uncertainty and disappointing earnings forecasts have led investors to reassess risk assets, including technology stocks and crypto, while the liquidation of leveraged long positions has further accelerated the downturn.

“After breaking multiple support levels, bitcoin is now trading just below $70,000 and remains under significant selling pressure.

“From a technical perspective, analysts are closely watching bitcoin’s 200-week moving average as a potential area where the price could find a bottom. Historically, this level has acted as strong support following major corrections and bear markets in 2015, 2018, 2020 during the Covid pandemic, and most recently in 2022.

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“Could history repeat itself in 2026? It remains to be seen. Once leverage is flushed out of the system, selling pressure eases and ETF inflows resume, this could help stabilise prices and signal the end of the current correction.

“From an on-chain perspective, the widely used MVRV Z-score — which assesses whether bitcoin is trading above or below its fair value — is also pointing towards a potential long-term buying opportunity.”

Media Contact:
PR@etoro.com

About eToro

eToro is the trading and investing platform that empowers you to invest, share and learn. We were founded in 2007 with the vision of a world where everyone can trade and invest in a simple and transparent way. Today we have 40 million registered users from 75 countries. We believe there is power in shared knowledge and that we can become more successful by investing together. So we’ve created a collaborative investment community designed to provide you with the tools you need to grow your knowledge and wealth. On eToro, you can hold a range of traditional and innovative assets and choose how you invest: trade directly, invest in a portfolio, or copy other investors. You can visit our media centre here for our latest news.

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Risk & affiliate notice: Crypto assets are volatile and capital is at risk. This article may contain affiliate links. Read full disclosure

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DeFi Development Guide to Vault Infrastructure (2026)

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The 3 Drivers of Sustainable Growth

In 2026, the biggest challenge for Web3 founders is no longer launching a protocol. It is building a business that lasts. While thousands of platforms compete for attention, only a few manage to convert liquidity into predictable revenue, retain users beyond incentive cycles, and operate with financial discipline. The difference is not marketing, but infrastructure supported by enterprise-grade DeFi development.

Today’s most resilient crypto platforms are built on systems that quietly compound capital, stabilize cash flow, and strengthen user loyalty in the background. Through advanced DeFi development practices, leading teams are moving beyond short-term yield tactics and embracing structured vault architectures as a core business layer. This shift is redefining how modern Web3 companies think about growth, monetization, and valuation. In this guide, we break down why DeFi vault infrastructure is becoming the foundation of sustainable Web3 business models, how top platforms are leveraging it to outperform competitors, and what founders must do now to stay ahead in an increasingly capital-efficient market.

The Changing Economics of Web3 Platforms

In early DeFi (2020–2022), growth was driven by hype, aggressive incentives, and short-lived liquidity mining, which boosted TVL but created unstable business models. Today’s on-chain data shows a far more nuanced reality. As of early 2026, TVL in DeFi is around $129 billion, with Ethereum accounting for roughly 55% of that share (~$71 billion), underscoring continued core liquidity concentration in blue-chip ecosystems. This sustained TVL also reflects stronger demand for protocols that offer real utility, like lending, stablecoin liquidity, and yield mechanisms, rather than simple token-incentive farming.

As capital becomes more selective, founders and product leaders are shifting focus toward sustainable infrastructure rather than one-off token rewards. Platforms with structured vault systems benefit from higher capital efficiency, treasury utilization, and user retention compared to those relying solely on manual yield farming or emission-driven inflows. Against this backdrop, serious teams now treat yield infrastructure as a core business function rather than an add-on. Partnering with an experienced DeFi development company enables protocols to embed automated yield generation directly into their platforms, boosting long-term TVL resilience, reducing dependence on external aggregators, and creating sustainable revenue streams that align with evolving market expectations.

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What Is DeFi Vault Infrastructure?

DeFi vault infrastructure refers to a system of smart contracts, automation tools, and risk controls that manage user funds and deploy them into optimized yield strategies. In simple terms, vaults:

  • Collect user or treasury assets.
  • Execute predefined strategies
  • Harvest and reinvest rewards.
  • Optimize gas and liquidity.
  • Protect capital with built-in safeguards.

When users search for DeFi vaults crypto solutions, they are usually looking for this complete infrastructure layer, not just a basic staking contract or manual farming setup. Professional vault systems are not “set and forget” products. They are continuously optimized, monitored, and upgraded frameworks built through advanced DeFi development processes to ensure long-term performance, security, and scalability.

Explore how enterprise-grade vault architecture can power your next growth phase.

Why DeFi Yield Vaults Are Becoming Business-Critical

For Web3 companies, vaults now serve three strategic purposes.

The 3 Drivers of Sustainable Growth

  1. Revenue Generation

Vaults create recurring income through:

  • Performance fees
  • Management fees
  • Strategy incentives
  • Protocol-owned liquidity
  • Yield-sharing mechanisms

These revenue streams help platforms move beyond short-term token speculation and build sustainable monetization models. This transforms volatile token economies into predictable, long-term revenue engines powered by DeFi yield vaults.

  1. User Retention

Platforms that offer built-in yield products retain users longer and reduce capital outflows. Instead of moving funds to external protocols in search of better returns, users can access optimized strategies directly within your ecosystem.

This leads to:

  • Higher platform stickiness
  • Improved lifetime user value
  • Stronger community loyalty
  • Reduced dependency on third-party aggregators

Integrated vault systems turn yield generation into a core user experience rather than a separate activity, driven by professional DeFi development practices that ensure scalability, security, and long-term performance.

  1. Capital Efficiency

Treasuries and idle balances can be deployed into structured, risk-managed strategies instead of remaining dormant. This allows protocols to generate returns on unused capital while maintaining liquidity and operational flexibility.

Improved capital efficiency:

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  • Strengthens financial resilience
  • Enhances treasury sustainability
  • Improves investor confidence
  • Supports long-term governance stability

Well-designed vaults ensure that capital continuously works for the platform.

Leading platforms such as Yearn Finance and Beefy Finance demonstrated early how vault-based models outperform manual yield farming at scale through automation, diversification, and continuous optimization. Today, many new protocols are adopting similar approaches through custom DeFi development company partnerships to accelerate deployment, strengthen security, and build revenue-focused infrastructure from day one.

Inside a Professional DeFi Vault Strategy

A sustainable DeFi Vault Strategy is not about chasing the highest advertised APY. Instead, it focuses on creating a balanced system that optimizes yield while maintaining liquidity, security, and long-term scalability. High-performing DeFi vaults are built on carefully engineered frameworks developed through advanced DeFi development, rather than short-term incentive exploitation.

A mature vault strategy typically includes three core layers.

3 Building Blocks of a Scalable DeFi Vault

  1. Yield Source Selection

The first step is identifying reliable and diversified yield sources. Professional teams evaluate multiple income streams to reduce dependency on a single protocol.

Common sources include:

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  • Lending protocols that generate stable interest
  • Stablecoin liquidity pools with low volatility
  • LP incentive programs on major DEXs
  • Staking mechanisms for network rewards

This diversified approach helps DeFi vaults maintain consistent returns across market cycles.

  1. Risk Modeling and Capital Protection

Every yield opportunity carries risk. Without proper modeling, high returns can quickly turn into major losses.

Enterprise-grade DeFi vault protocol systems apply strict risk frameworks, including:

  • Comprehensive smart contract audits
  • Slippage and liquidity impact controls
  • Volatility exposure analysis
  • Exit liquidity and stress testing
  • Counterparty and protocol risk assessments

A professional DeFi development company integrates these safeguards into the strategy layer to protect both user funds and platform reputation.

  1. Automation and Optimization Logic

Automation transforms strategy design into a scalable financial engine. Without efficient execution, even strong strategies lose profitability.

Well-designed DeFi yield vaults rely on automation features such as:

  • Dynamic harvest thresholds to balance rewards and gas costs
  • Gas fee optimization mechanisms
  • Rebalancing triggers based on market conditions
  • Emergency withdrawal and fallback systems
  • Strategy pause and redeployment tools

Through structured DeFi development, these systems operate continuously without manual intervention.

Get a customized vault strategy designed for performance and risk control.
Why Strategy Engineering Determines Long-Term Success

Together, yield selection, risk modeling, and automation form the operational backbone of every reliable DeFi vault system. When these components are poorly designed, platforms become vulnerable to volatility, liquidity disruptions, and long-term performance decline. Many teams underestimate these challenges and deploy fragile architectures that slowly lose TVL and user trust without experienced DeFi Development support. As a result, strategic planning, rigorous testing, and continuous optimization become essential for building resilient, scalable, and sustainable yield infrastructure.

Key Features Founders Should Demand in DeFi Vault Infrastructure

Before choosing any vault solution, founders and product leaders must assess whether the system is built for long-term growth or short-term experimentation. Not all DeFi yield vaults are designed for enterprise use, and weak infrastructure can expose platforms to financial and reputational risk. A reliable solution, built through professional DeFi development, should deliver the following core capabilities.

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  1. Security Architecture

Since DeFi Vaults crypto platforms manage high-value assets, security must be the top priority. Founders should look for:

  • Multi-layer smart contract audits
  • Emergency pause and recovery systems
  • Multisignature governance controls

An experienced DeFi development company ensures that these safeguards are embedded from day one.

  1. Strategy Flexibility

Markets change quickly, and vault systems must adapt. A scalable DeFi vault protocol should support:

  • Modular and upgradeable strategies
  • Custom risk parameters
  • Automated rebalancing

This flexibility keeps DeFi yield vaults competitive in evolving market conditions.

  1. Transparency

Trust depends on visibility. Professional vault infrastructure must provide:

  • On-chain fund tracking
  • Performance dashboards
  • Public reserve verification

These features strengthen user confidence and institutional credibility.

  1. Compliance Readiness

As regulations tighten globally, compliance has become essential. Mature vault systems should include:

  • KYC-friendly integrations
  • Geo-restriction controls
  • Regulatory reporting tools

Through advanced DeFi development, platforms can balance decentralization with legal readiness. Together, these features separate enterprise-grade DeFi yield vaults from experimental deployments and enable sustainable, scalable Web3 business models.

Future Outlook: Vaults as Financial Operating Systems

Over the next three years, vaults will evolve beyond yield tools.

They will become:

  • Treasury management systems
  • Liquidity orchestration layers
  • Cross-chain revenue engines
  • Institutional onboarding gateways

Protocols that invest early in advanced DeFi yield vaults will control the financial infrastructure of their ecosystems. Those who delay will become dependent on external aggregators and lose margin.

Conclusion

In 2026, the difference between market leaders and market followers is no longer technology. It is infrastructure. Platforms that invest early in scalable DeFi yield vaults and professional DeFi development services are building predictable revenue systems, stronger user retention, and long-term capital resilience. Those who delay remain dependent on external aggregators and shrinking margins.

This is why forward-thinking founders choose Antier as their strategic DeFi development partner. With enterprise-grade security, customized strategies, and battle-tested architecture, we help Web3 businesses turn vault systems into growth engines.

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If you want to lead your market instead of reacting to it, start building today. Book your vault strategy session now

Frequently Asked Questions

01. What is the biggest challenge for Web3 founders in 2026?

The biggest challenge is building a sustainable business that lasts, rather than just launching a protocol.

02. How are today’s resilient crypto platforms different from those in early DeFi?

Today’s platforms focus on stable cash flow and user loyalty through advanced DeFi development, moving away from short-term yield tactics.

03. Why is DeFi vault infrastructure important for Web3 business models?

DeFi vault infrastructure enhances capital efficiency, treasury utilization, and user retention, making it a core business function for sustainable growth.

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Pi Network’s PI Crashed to New ATL, But This Metric Signals More Downside Ahead

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Pi Token Unlock Schedule. Source: PiScan


Millions and millions of PI tokens will be released in the following weeks, which could bring even more pain for the bulls.

The past several weeks have not been kind to the cryptocurrency markets. This trend only intensified on Thursday when the entire market bled out, with multiple double-digit price crashers.

Naturally, Pi Network’s PI token was not spared, and it dumped to fresh all-time lows of under $0.135 (on CoinGecko). This meant that the asset has plunged by over 30% in the last month alone. On a broader scale, PI is down by more than 95% since its all-time high marked on February 26, 2025.

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Despite this massive correction, some members of the ever-vocal and optimistic Pi Network community tried to find the silver linings. This one, for example, outlined the skyrocketing PI transaction volume, which, he believes, shows “increased interest in PI despite the manipulation games done by whales.”

This one was even more bullish, predicting a mind-blowing surge to $4 from the current dip in the first six months after the second Mainnet migration and once old Pioneers (Pi Network users and investors) are done selling off.

More Pain to Come?

If we are being realistic, it’s hard to even imagine such a rally happening soon. Not only because the overall crypto market seems to be dominated by the bears, but also due to PI’s recent price performance and the unlocking schedule for new tokens.

Data from PiScan shows that almost 8 million coins will be freed in the next month on average. What’s even more worrying is the fact that this number will skyrocket to over 18 million on February 12 and to 23.6 million on February 13.

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Such a massive number of tokens to be unlocked might result in more immediate selling pressure from investors who have been waiting a long time for their holdings to become available for trading. This is particularly true in such a time of panic.

You may also like:

Pi Token Unlock Schedule. Source: PiScan
Pi Token Unlock Schedule. Source: PiScan

The Good News

On the positive side, the chart above demonstrates that the number of unlocked tokens will decline after February 20 and will normalize, which could ease the selling pressure. Additionally, there are rumors circulating online that one of the largest and oldest exchanges, Kraken, might be planning to list Pi Network’s native token, which could boost its liquidity and legitimacy among investors.

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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

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RWA Perps heat up as gold, silver whipsaw; ONDO, PAXG, MKR, LINK lead RWA trade

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RWA Perps heat up as gold, silver whipsaw; ONDO, PAXG, MKR, LINK lead RWA trade

RWA perps volume explodes above $15B as gold and silver crash, Binance cements dominance, and ONDO, PAXG, MKR, LINK front-run the real‑world assets trade.

The RWA perpetuals market is suddenly where the adrenaline is. As CoinMarketCap put it, “the RWA Perpetuals market is carving out an interesting niche… by letting traders speculate on real-world commodities like gold and silver using crypto derivatives,” with early 2026 showing “genuine momentum” on the back of extreme precious‑metal volatility.

Leading the way are ONDO (ONDO), PAXG (PAXG), MKR (MKR), LINK (LINK), which analysts say may be bucking the broader crypto bear trend.

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Volatility, flows, and exchanges

CoinMarketCap’s data show clear venue concentration: “Binance dominates with 68.37% market share in YTD Volume, followed by OKX (14.63%) and MEXC (9.25%). Bitget (4.77%) and Gate (4.52%) combine for under 10%.” That kind of skew tells you where liquidity — and liquidation cascades — are most likely to cluster.

The flow has been violent. On January 30, RWA perps volume hit $15.57 billion as “gold futures plunged around 11% (closing near $4,745/oz), while silver had its worst single day since 1980, crashing about 28% from nearly $115/oz down to $78/oz.” February 2 still pushed $10.96 billion, with gold down another 2% to roughly $4,652/oz and silver slipping to $77.

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By February 5, volume rebounded to $12.06 billion as silver “dropped another 9% to $76 per ounce, while gold slipped about 1.24%,” a sequence CoinMarketCap summarized as “explosive moves fueled by speculation running hot, margin calls forcing positions closed, and macro news sending shockwaves through the markets.”

Crypto bleed and RWA bid

Context matters: “crypto itself has been bleeding badly in early 2026. Bitcoin’s down ~49% from its late 2025 peak, and the overall market has shed trillions in what feels like full capitulation mode.” That backdrop is exactly why RWA perps “are emerging as something genuinely different… a way for crypto traders to get exposure to TradFi assets and speculate without leaving their native ecosystem,” offering diversification and hedging that “pure crypto can’t provide right now.”

Among spot RWA‑themed tokens, names like Ondo (ONDO), Maker (MKR), PAX Gold (PAXG), and Chainlink (LINK) sit at the core of the narrative, spanning tokenized Treasuries, on‑chain collateralized credit, gold‑backed exposure, and oracle infrastructure for tokenized assets.

Major coin prices and 24h moves

As of the latest session, Bitcoin (BTC) trades around $73,420, down roughly 3.9% over 24 hours. Ether (ETH) changes hands near $2,165, off about 5.7% in the same period, while Solana (SOL) sits around $93, down approximately 7.7%. The broader market has seen similar pressure, with total crypto capitalization sliding sharply in early February.

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(For full live pricing and deeper breakdowns, see the crypto.news price pages for BTC, ETH, SOL, ONDO, MKR, PAXG, and LINK.)

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Pump.fun Expands Trading Infrastructure by Acquiring Vyper

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Crypto Breaking News

Pump.fun has expanded its footprint in on-chain trading by acquiring Vyper, the Solana-based trading terminal, and winding down Vyper’s standalone product to merge its infrastructure into Pump.fun’s Terminal ecosystem. The transition is set to begin with the shutdown of core Vyper features on Feb. 10, while limited functionality remains accessible as users are directed to Pump.fun’s Terminal (the former Padre) for continued access to trading tools. The deal’s financial terms were not disclosed, and Pump.fun did not comment for this article. The move underscores a broader consolidation strategy as Pump.fun seeks to unify token launches, execution, and analytics under a single platform, even as Solana-based memecoin activity cools from the speculative peak of late 2024 and early 2025. The acquisition follows Pump.fun’s earlier push into trading infrastructure, positioning the company to streamline workflow across the memecoin ecosystem.

Key takeaways

  • Pump.fun is consolidating its trading workflow by absorbing Vyper, integrating the terminal into its broader ecosystem rather than maintaining standalone tooling.
  • Vyper will begin winding down its core product on Feb. 10, with limited functions remaining as users migrate to Pump.fun’s Terminal (formerly Padre).
  • The deal’s terms were not disclosed, and Pump.fun did not provide comment prior to publication.
  • The move follows Pump.fun’s October acquisition of Padre, which was rebranded to Terminal, and signals a broader pivot toward end-to-end trading infrastructure.
  • DefiLlama data show Pump.fun’s monthly revenue peaked at over $137 million in January 2025, but fell to about $31 million in January 2026, illustrating a cooling memecoin market.

Sentiment: Neutral

Market context: The consolidation comes as the memecoin sector, which once heated Solana-based launch activity, has cooled amid slower momentum and tightened liquidity. The industry is calibrating trading workflows, liquidity provisioning, and analytics to weather shifting risk appetite and evolving regulatory scrutiny.

Why it matters

The acquisition of Vyper marks a notable shift in how meme-centric platforms orchestrate their trading infrastructure. By folding a standalone terminal into a broader platform, Pump.fun aims to deliver a unified experience that spans token launches, liquidity management, and execution analytics. For users, this could mean simplified onboarding and a more cohesive set of tools, reducing the need to juggle multiple interfaces across separate services. For the broader market, the move signals ongoing consolidation among infrastructure players as platforms seek to lock in users during periods of normalization after the frenetic memecoin era.

Central to the narrative is the Solana (CRYPTO: SOL) blockchain’s role in memecoin activity. Pump.fun’s strategy has long leaned on Solana-based launches, where liquidity and speculative demand previously surged, driving short-term revenue growth. The latest integration suggests that Pump.fun intends to offer a more durable, end-to-end workflow—combining launch capabilities with execution and analytics—potentially stabilizing revenue streams even as speculative dynamics recede. Investors will be watching how the Terminal ingestion affects execution quality, slippage, and the reliability of data streams as the platform absorbs Vyper’s user base and tooling.

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From a governance and product perspective, the move foreshadows further shifts as platforms recalibrate their product mix away from standalone memecoin gimmicks toward sustainable infrastructure. Pump.fun’s earlier steps—acquiring Padre and launching an investment arm, Pump Fund, in January—signal a pivot beyond pure memecoin speculation toward more diversified funding and support for early-stage projects. The company’s stated intent to back non-crypto ventures through the hackathon underscores a broader strategic realignment toward building an ecosystem with longer-term value capture, beyond the transient popularity of individual memecoins.

What to watch next

  • Feb. 10: Operational shutoff of Vyper’s core features and the continued migration of users to Terminal. Monitor any service interruptions or migration pain points.
  • Progress of Terminal integration: Assess how quickly users adapt to the combined workflow for launches, execution, and analytics and whether feature parity with Vyper is maintained.
  • Subsequent expansion: Look for additional upgrades or partnerships that broaden Terminal’s capabilities beyond memecoin launches, including non-crypto or cross-chain integrations.
  • Regulatory and market context: Stay aware of changing regulatory signals and macro conditions that influence liquidity and risk sentiment in on-chain trading.

Sources & verification

  • Vyper announced the wind-down and migration plan with Feb. 10 as a milestone (X post by TradeonVyper).
  • DefiLlama revenue data for Pump.fun showing a peak of over $137 million in January 2025 and ~ $31 million in January 2026.
  • Cointelegraph reporting on Pump.fun’s acquisition of Padre (trading terminal) in October, which was later rebranded as Terminal.
  • Pump.fun’s launch of Pump Fund and the January 20 hackathon aimed at supporting early-stage projects beyond crypto.
  • Contextual background on the broader memecoin market’s expansion and subsequent cooling, including market-cap discussions tracked by CoinMarketCap.

Expansion and consolidation: Pump.fun absorbs Vyper into its Terminal ecosystem

Pump.fun’s latest move extends a pattern of vertical integration designed to streamline how users interact with memecoin launches, liquidity provisioning, and on-chain analytics. By absorbing Vyper, a trading terminal with a dedicated user base, into Terminal, the company is effectively folding a specialized toolset into a broader platform that aspires to cover more of the user journey—from initial token ideas to live trading and data-driven decision making. The timeline is explicit: on Feb. 10, core parts of Vyper will cease operating as a standalone product, while limited functionalities will remain accessible to bridge the transition. Users are being redirected to Pump.fun’s Terminal, which had previously been known as Padre, signaling a seamless migration path for existing customers.

The strategic logic behind the acquisition aligns with a broader industry trend: platforms seeking to lock in users by offering a one-stop shop for token launches, liquidity management, and analytics. As memecoin momentum cooled—from the heady days when celebrity-led token drops and government officials’ involvement helped spur a parabolic interest to a more measured pace—providers have sought to preserve revenue by bundling services. DefiLlama’s data capture demonstrates how Pump.fun’s revenue trajectory paralleled this cycle: a record of $137 million in January 2025, followed by a steep 77% decline in the year that followed, landing around $31 million in January 2026. The consolidation may be a pragmatic response to such revenue pressure, creating a more sustainable platform that can weather fluctuating demand while still serving a highly specialized user base.

Industry observers note that the Solana-based ecosystem has been a focal point for memecoin activity, with a number of tokens and launchpads anchored to that network. The rebranding and consolidation around Terminal indicates a shift from a project-centric model to an infrastructure-centric approach—one that prioritizes execution quality, reliability, and analytics accuracy for traders and project teams launching new tokens. The absence of disclosed financial terms in the deal leaves questions about the valuation and future revenue sharing, but the strategic intent is clear: unify tools under a single umbrella to improve user experience and potentially stabilize monetization channels beyond speculative token launches.

In tandem with the acquisition, Pump.fun has already pursued related strategic moves. The October acquisition of Padre, which was subsequently renamed Terminal, extended the company’s reach into the trading floor’s core capabilities. Earlier in January, Pump.fun broadened its footprint by launching Pump Fund, an investment arm intended to diversify beyond memecoins, and kicked off a $3 million hackathon to back early-stage projects, including ventures not directly tied to crypto. Together, these steps signal an evolution from a meme-driven growth model toward a more diversified ecosystem play that emphasizes sustainable infrastructure, broader funding initiatives, and broader use cases for its technology stack. The market will likely scrutinize how this transition affects liquidity, execution quality, and the platform’s ability to attract high-quality launches in a shifting macro environment.

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