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Demand

Ethereum Foundation Formed AI Team to Meet Ecosystem Demand: Crapis

by admin September 16, 2025

The Ethereum Foundation’s new push into artificial intelligence was not part of its roadmap, but emerged in response to demand from ecosystem projects, according to new team lead Davide Crapis.

While not a direct policy shift, the move represents “another step” for the long-term success of the protocol. “Our ecosystem needs this,” Crapis told Cointelegraph.

The newly formed AI team will essentially have a foot in two main sides of the Ethereum Foundation: the protocol and ecosystem divisions. The dual focus targets product development and preparing Ethereum to onboard traditional AI developers.

“If we can show these traditional AI developers that ‘hey, there is value here, there is decentralization, it could solve some problems around alignment, verification of AI, governance of AI,’ that would be a successful path for us,” said Crapis.

Source: Davide Crapis

Some AI products and services already emerging in the Ethereum ecosystem include micropayments, sometimes involving stablecoins, along with onchain identity and verification.

According to Crapis, Ethereum’s dAI team will work on clarity and support in those areas. “Our plan is to actually publish a more detailed roadmap later this year, with milestones.”

The team behind the initiative will be initially formed by Crapis, an AI product manager and a member of AI staff, who will conduct research in collaboration with protocol teams.

Ethereum’s move is currently based on a short-term roadmap focusing on Ethereum proposal ERC-8004, which would introduce a trustless way to discover, choose and interact with AI agents.

The proposal was co-authored by Crapis, along with MetaMask AI lead Marco De Rossi and OpenAI’s Jordan Ellis.

“[The proposal] got a lot of traction very early,” Crapis said. “We feel that is something that can be very impactful already.”

Related: AI and blockchain are already disrupting legacy education system

The right time for AI at Ethereum

The Ethereum Foundation announced its new AI team on Monday. According to the research scientist, the idea stems from a group of Ethereum Foundation researchers who saw potential in the ecosystem for supporting AI applications.

The Foundation isn’t the first crypto protocol to explore the AI-blockchain intersection.

Infrastructure protocol Planck launched a layer-0 blockchain for AI in July, while Kite AI introduced an AI-focused layer-1 blockchain for Avalanche in February.

Crypto AI agents started proliferating on blockchain rails in 2023. These agents can complete financial transactions and other tasks with minimal human supervision.

When asked if he considered the Ethereum Foundation a late entrant to the AI race, Crapis said he didn’t.

“I wouldn’t say it’s late,” he told Cointelegraph. “The timing feels right because people have been experimenting with AI coordination on these protocols for about two years now.”

Magazine: Meet the Ethereum and Polkadot co-founder who wasn’t in Time Magazine

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September 16, 2025 0 comments

Product Reviews

Plagued by Parts Shortage and EV Demand Uncertainty, GM Prepares for Layoffs

by admin September 16, 2025

Automotive giant General Motors is preparing for layoffs at its assembly plant in Wentzville, Missouri.

Although the layoffs will be temporary, the majority of the workers at the plant will be affected, according to a letter sent to employees by the plant’s executive director and the local UAW representative.

GM’s Wentzville plant builds the company’s Chevrolet Colorado and GMC Canyon mid-size trucks, as well as the Chevrolet Express and GMC Savana full-size vans. The latter two are some of GM’s longest-running offerings and were rumored to be due for a complete EV revamp by 2026, but GM walked back on those plans, according to GMAuthority.

The reason for the temporary layoff—expected to last between September 29 and October 19—is a parts shortage.

GM didn’t respond to a request for comment from Gizmodo. We’ll update this post when we receive a reply.

The parts shortage is only the latest in a string of headwinds for GM, the major one being the Trump administration’s attack on the electric vehicle industry that caused the automotive giant to reevaluate its electrification strategy.

One of Donald Trump’s first courses of action as President was to initiate the repeal process of an electric vehicle consumer tax credit worth $7,500. Although the current tax credit was passed as part of President Joe Biden’s Inflation Reduction Act, an EV tax credit has existed in one form or another for more than a decade.

The tax credits are set to expire on September 30, plunging the electric vehicle industry into the great unknown.

That unknown caused GM to cut output at a major electric vehicle assembly plant, temporarily lay off workers, and indefinitely delay a shift at a Kansas City assembly plant that was set to produce electric Chevy Bolts later this year, Reuters reported in September.

GM’s (and America’s) EV test

Back in 2021, GM made a significant commitment to completely electrify its fleet of vehicles by 2035. A major roadblock for that vision has since arrived in the form of Trump-era EV policies.

According to CEO Mary Barra’s comments from last week, electric vehicles are still the company’s “north star.” Previously floundering demand is now looking up, too: sales of used electric vehicles rose 40% from last year in July, and GM’s own electric vehicle sales jumped to an all-time monthly record in August.

The company shared in a press release that although they are expecting strong demand in September as well, sales will “no doubt” be lower after the tax credits end.

“It may take several months for the market to normalize. We will almost certainly see a smaller EV market for a while, and we won’t overproduce,” Duncan Aldred, president of GM’s North America business, said in the press release.

The upcoming uncertainty is not just a test for GM, but a test for the U.S. at large. While EV demand flutters in the U.S. and Washington repeals key support for the industry, Chinese EV-makers like BYD enjoy government support as they ambitiously expand operations and global influence.

The demand might be slow-coming in the U.S. due to many reasons (one of which undoubtedly is the lack of EV charging infrastructure), but experts believe the future is still very much electric. Goldman Sachs analysts shared last year that they expect electric vehicles to make up 50% of global new car sales by 2035.

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September 16, 2025 0 comments

NFT Gaming

Bitcoin ETFs Drew In $2.3B Last Week, Marking ‘Clear Demand Impulse’

by admin September 15, 2025

In brief

U.S. spot Bitcoin ETFs pulled in around $2.3 billion from September 8 to 12.
BlackRock’s IBIT and Fidelity’s FBTC captured the bulk of flows, with other issuers posting smaller gains.
Observers said the surge reflects structural demand from institutions, with inflows expected to scale further.

U.S. spot Bitcoin exchange-traded funds pulled in roughly $2.3 billion last week, marking the highest weekly inflows since mid-July.

The streak ran across all five trading sessions from September 8 to September 12, according to aggregated data from Farside and SoSoValue. BlackRock’s iShares Bitcoin Trust led with just over $1 billion of inflows, while Fidelity’s Wise Origin Bitcoin Fund brought in nearly $850 million. Other issuers, including Ark Invest and Bitwise, also posted gains, though smaller.

Daily flows showed steady demand. Monday started with $364 million, followed by a muted $23 million on Tuesday. The pace accelerated to $742 million on Wednesday, $553 million on Thursday, and $642 million on Friday.

Last week’s inflows “signal clear demand impulse, the one that looks both meaningful and timely,” Georgii Verbitskii, a derivatives trader and founder of decentralized protocol TYMIO, told Decrypt.

With September to October marking “the start of the business season,” Verbitskii notes that the this “often sets the tone for trends that play out through the end of the year.” The base case, he added, is that this could be “the beginning of a new uptrend, with strong potential for further growth into Q4.”

Still, while the inflows show a marked return to mid-July levels, “the number itself isn’t transformative on its own,” Wesley Crook, CEO of blockchain engineering firm FP Block, told Decrypt.

“Much of this activity is being driven by expectations of rate cuts alongside the broader trend of enterprises entering the market,” Crook said, adding that he expects the momentum to likely continue as institutional allocations for Bitcoin bring “upward pressure on prices.”

Pre-Fed surge

The surge aligned with growing expectations that the U.S. Federal Reserve will cut rates at its next meeting set this week, with users of prediction market Myriad, launched by Decrypt’s parent company DASTAN, placing an 88% chance on a 25bps rate cut.

During the same period, Bitcoin’s price recovered above $115,000, reinforcing investor optimism. At the time of writing, Bitcoin is changing hands at around $114,600, per CoinGecko data.

“Structural demand is the real story here,” Farbod Sadeghian, founder of Dubai-headquartered international virtual asset chamber TheBlock., told Decrypt.

While rate cut expectations could provide “a friendlier backdrop for risk assets,” such a setting is temporary, Sadeghian said.

“The bigger factor is that investors, especially at the institutional level, now see Bitcoin as an allocation worth holding over the long term,” he said, adding that “the ETF wrapper makes it easier and safer to access, but the underlying appetite is clearly about exposure to the asset itself.”

On the broader end, Sadeghian notes that Bitcoin ETF inflows, while “never perfectly smooth,” could expect to “stabilize and scale further” over macro-driven momentum as institutional investors steadily “integrate Bitcoin ETFs into standard portfolios.”

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September 15, 2025 0 comments

Crypto Trends

Gemini IPO demand forces $425m hard cap after 20x oversubscription

by admin September 12, 2025

Gemini’s Nasdaq debut drew so many orders that the exchange reportedly capped proceeds at $425 million. The move breaks with IPO convention and shows both intense demand for crypto listings and a rare note of restraint from the Winklevoss-led firm.

Summary

Gemini’s Nasdaq IPO was oversubscribed more than 20 times, forcing a $425 million hard cap.
Lead underwriters Goldman Sachs and Citigroup closed the order book early amid overwhelming demand.
Share price was raised to $24–$26, giving the company a potential market value over $3 billion.

On September 11, Reuters reported that the forthcoming initial public offering for crypto exchange Gemini was oversubscribed by more than 20 times, compelling lead underwriters Goldman Sachs and Citigroup to close the order book early.

In a highly unconventional move for a traditional listing, the investment banks, alongside Gemini founders Cameron and Tyler Winklevoss, made the strategic decision to impose a hard cap of $425 million on the total raise.

The mechanism, which sacrifices potential capital in favor of reducing the number of shares sold, creates scarcity ahead of the company’s Nasdaq debut on Friday under the ticker “GEMI.”

A calculus of scarcity and value?

According to the Reuters report, based on the company’s own filings with the SEC, the raw math of the demand would have allowed Gemini to raise approximately $433 million without the self-imposed cap. This figure, however, pertains solely to the public share sale and does not include an additional, separate $50 million private placement commitment from Nasdaq itself.

The investor frenzy drove a significant uptick in share value well before the opening bell. In response to the overwhelming order flow, Gemini and its bankers were forced to upwardly revise the proposed share price range. The price jumped to between $24 and $26, a substantial increase from the initial range of $17 to $19 just days prior.

That sharp adjustment in pricing illustrates the depth of investor appetite, with Gemini’s valuation climbing rapidly even before its first day of trading. According to Reuters, the company’s potential market valuation could exceed $3 billion at the top of the range.

Once seen as risky outliers, firms like Gemini are now joining a growing list of digital asset players testing public listings. Just a day prior, stablecoin issuer Figure Technology successfully raised $787.5 million in an upsized IPO.

This activity follows enlarged offerings earlier this year from industry heavyweights like Bullish and Circle, painting a picture of a sector hitting its stride. A favorable regulatory shift, accelerating corporate adoption, and the monumental inflows into spot Bitcoin ETFs have collectively built a wave of legitimacy that crypto companies are now riding into the public markets.

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September 12, 2025 0 comments

GameFi Guides

Stablecoin Supply Supports Crypto Market Demand: $240B Ready To Fuel The Market

by admin September 10, 2025

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

The crypto market is entering a new phase, with many investors calling for an extended bull cycle that could reshape the months ahead. While Bitcoin, Ethereum, and leading altcoins continue to dominate headlines, the true drivers of this momentum appear to be stablecoins. These digital assets, often overlooked in favor of more volatile tokens, are quietly fueling the market’s liquidity engine. According to top analyst Darkfost, “it’s Stablecoin season,” a phrase capturing the idea that unprecedented amounts of capital are flowing into stablecoin supply.

This surge in stablecoin demand signals strong buying power waiting to be deployed across exchanges, amplifying the potential for risk assets to climb higher. Stablecoins serve as the foundation of crypto trading, providing the liquidity that enables swift movement between assets and acting as a measure of market confidence. Their rising inflows suggest that investors are preparing for large-scale positioning, which could spark stronger rallies across the sector.

As the market braces for this potential liquidity-driven expansion, stablecoins have emerged as the unsung heroes of the bull cycle. They are setting the stage for Bitcoin, Ethereum, and altcoins to capture upside momentum, marking an important shift in the dynamics of this evolving market.

Stablecoins Signal Liquidity Flooding Into Crypto

Darkfost recently shared insights that highlight the critical role of stablecoins in the current market cycle. He explained that, setting aside rebalancing mechanisms, every stablecoin minted represents a corresponding fiat inflow into the crypto ecosystem. This means that when investors convert dollars into stablecoins, real liquidity enters exchanges, ready to be deployed into Bitcoin, Ethereum, or altcoins. Conversely, when capital exits the market, unused stablecoins are burned, reducing supply and signaling declining inflows.

At present, the total supply of stablecoins sits at an impressive $240 billion. However, this figure does not yet include some of the newest entrants to the sector, such as ENA, which already boasts a circulating supply of roughly $14 billion. The growth of both established and emerging stablecoins demonstrates how demand for liquidity tools is expanding in parallel with broader market participation.

Aggregate Stablecoin Supply | Source: Darkfost

Darkfost emphasizes that the stablecoin supply is “literally exploding,” climbing relentlessly higher and showing little sign of slowing down. This acceleration signals that capital is actively flowing into the ecosystem, setting the stage for higher valuations across risk assets. For traders and investors, this is a pivotal indicator of momentum, suggesting that the bull cycle may have deeper legs than previously expected.

After a year marked by volatility and shifting narratives, the relentless rise in stablecoin issuance underscores a market entering a decisive phase. Liquidity, more than sentiment or speculation, is the fuel behind sustainable rallies.

With stablecoins expanding at a record pace, crypto appears primed for another surge, supported by a foundation of fresh capital waiting to be deployed. This dynamic makes stablecoins not only a utility but also the clearest signal of market direction heading into the next leg of the cycle.

Market Size & Growth Analysis

The total crypto market cap currently stands at $3.85 trillion, reflecting resilience after a volatile stretch. The chart shows a strong recovery from earlier dips this year, with prices consolidating just below the $4 trillion psychological barrier. This level is proving to be a key resistance zone, as multiple attempts to break higher have been met with selling pressure.

Total Crypto Market Cap | Source: TOTAL chart on TradingView

The 50-week simple moving average (SMA) is trending upward around $3.16 trillion, providing a solid base of support. Meanwhile, the 100-week SMA at $2.58 trillion and the 200-week SMA at $1.92 trillion remain well below current levels, confirming that the broader structure remains firmly bullish. As long as the market holds above these long-term averages, downside risks appear contained, with corrections likely to be viewed as opportunities for accumulation.

A sustained move above $4 trillion would mark a significant breakout, potentially opening the door to fresh highs and extending the current bull cycle. Conversely, failure to reclaim this level could see the market consolidating between $3.5 trillion and $3.9 trillion in the near term.

Featured image from Dall-E, chart from TradingView

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.

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September 10, 2025 0 comments

GameFi Guides

XRP ETF in Canada Sets New Record as Demand Soars

by admin September 10, 2025

Demand for regulated XRP products continues to rise, as Canada’s 3iQ XRP ETF sets a new record. In a recent tweet, Canadian investment fund manager 3iQ shared that investor demand has seen the 3iQ XRP ETF, called XRPQ, exceed CAD 150 million in AUM, the largest in its category.

XRPQ launched in June this year with a 0% management fee for its first six months, and it quickly established itself among Canadian peers. Ripple also stood out as an early investor in the fund, boosting investor confidence, which helped accelerate adoption across investors, including individuals, wealth advisors, institutions and family offices.

RippleX highlighted this milestone in a recent tweet, noting increased demand for regulated XRP products in Canada.

Optimism soars amid increased demand

The recent milestone suggests rising demand for XRP products as the crypto asset gains increased interest on the market.

According to Bloomberg analysts, the next 12 to 18 months might see hundreds of crypto-related ETP launches, with currently over 90 crypto ETF filings with the SEC.

Bitcoin Treasury Demand is Weakening, CryptoQuant Cautions

by admin September 8, 2025

Good Morning, Asia. Here’s what’s making news in the markets:

Welcome to Asia Morning Briefing, a daily summary of top stories during U.S. hours and an overview of market moves and analysis. For a detailed overview of U.S. markets, see CoinDesk’s Crypto Daybook Americas.

Bitcoin treasury companies were the talk of the town during the recent BTC Asia conference in Hong Kong, and onchain data shows they hold more than ever in their virtual coffers, but a new report from CryptoQuant highlights that they are being a bit more cautious in their crypto buys.

CryptoQuant data shows aggregate BTC treasury holdings hit 840,000 BTC this year, led by Strategy with 637,000 BTC.

Yet the average purchase size has collapsed: Strategy bought just 1,200 BTC per transaction in August, while other firms averaged 343 BTC. Both figures are down 86% from early 2025 highs, signaling smaller, more hesitant buys that suggest liquidity constraints or waning conviction.

The numbers show a striking divergence. Transaction activity is near record levels, 53 deals in June and 46 in August, but each deal involves far less bitcoin.

Strategy acquired only 3,700 BTC in August compared to 134,000 BTC at its peak last year, while other treasury firms slipped to 14,800 BTC from highs of 66,000 BTC.

(CryptoQuant)

The decline in average deal size suggests treasuries are still active but unwilling to commit large blocks of capital, reflecting both liquidity constraints and a more cautious market psychology.

All of this should be considered a concern for investors, as BTC’s price growth in the second quarter of the year was largely driven by accumulation by treasury companies, CoinDesk Indices data shows.

By late August 2025, institutions were absorbing more than 3,100 BTC a day against just 450 mined, creating a 6:1 demand-supply imbalance that underscored how relentless institutional buying was driving bitcoin’s price higher, CoinDesk reported at the time.

This slouching demand raises the risk that the current price strength may be less sustainable if treasuries continue buying cautiously rather than at scale.

That’s not to say that there isn’t growth in the BTC Treasury sector. It’s just smaller.

Bitwise reports that 28 new treasury companies were formed in July and August alone, collectively adding more than 140,000 BTC.

Meanwhile, Asia is emerging as the next front for digital asset treasury companies as Taiwan-based Sora Ventures has launched a $1 billion fund to seed regional treasury firms, with an initial commitment of $200 million.

Unlike Metaplanet, Asia’s largest public treasury firm with 20,000 BTC on its balance sheet, Sora’s vehicle will pool institutional capital to support multiple entrants.

Whether Asia’s new wave offsets the shrinking bite sizes of incumbents in accumulation is now the central question for the next phase of bitcoin adoption – and where the price is going.

Market Movement

BTC: Bitcoin remains resilient around the $110K–$113K range, supported by expectations of Federal Reserve rate cuts, increasing institutional inflows via ETFs, and improved market sentiment amid macroeconomic uncertainty

ETH: Ethereum is trading near the $4,300 level. Its short-term weakness, with a 3.8% weekly decline, is ascribed to ETF outflows and seasonal subdued trading in September. However, longer-term outlook remains positive, buoyed by institutional interest, growing staking activity, and speculative forecasts targeting $4,600–$5,000 if resistance breaks

Gold: Gold is rallying to record levels amid a combination of weak U.S. jobs data, heightened Fed easing expectations, a soft U.S. dollar, political and economic uncertainty, and continued central bank accumulation of bullion.

Nikkei 225: Asia-Pacific stocks mostly rose Monday, with Japan’s Nikkei 225 up 1.5% after Prime Minister Shigeru Ishiba resigned following pressure from his election defeat.

Elsewhere in Crypto

Chainlink CEO Sees Tokenization as Sector’s Rising Future After Meeting SEC’s Atkins (CoinDesk)
Why SharpLink’s CEO Thinks Bitcoin Creator Satoshi Nakamoto Will Return (Decrypt)
The Funding: Why crypto VCs are betting on prediction markets now (The Block)

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September 8, 2025 0 comments

NFT Gaming

PUMP price eyes 29% rally backed by token buybacks and fresh demand

by admin September 5, 2025

PUMP price rallied for the fourth straight day as Pump.fun bought back over $12 million worth of PUMP tokens from the market.

Summary

PUMP price shot up 40% over the past week.
Pump.fun bought back over $12 million worth of PUMP tokens.
$0.0058 marks the next projected target based on technicals.

According to data from crypto.news, Pump.fun (PUMP) was trading at $0.0045, up 40% over the past 7 days and 73% above its lowest point in August. The token’s daily trading volume was at $466 million while its market cap stood at over $1.62 billion as of press time.

PUMP’s rally this week was primarily driven by Pump.fun’s buyback of nearly $12.2 million worth of PUMP tokens from the open market.

When a project buys back its own tokens, it reduces its circulating supply, thereby increasing scarcity and potentially supporting the token’s price gains.

PUMP crypto also rallied amid renewed investor hype after the token briefly surpassed Hyperliquid, a decentralized exchange and Layer 1 blockchain, in 24-hour revenue on Sept. 4.

More broadly, the token’s recent gains have also been supported by Pump.fun’s strategic overhaul called Project Ascend, introduced on Sep. 2. The initiative focuses on empowering creators on the Pump.fun platform and intends to scale its ecosystem by 100x while also strengthening the long-term viability of memecoins launched through the platform.

Further, data from Nansen shows renewed demand from whales and public figures over the past week.

Notably, the balance of tokens held by whale wallets rose from 21.95 billion on Aug. 29 to 22.53 billion as of press time. Holdings by public figures also increased by 8%, climbing from 442.8 million to 478.88 million over the same period.

Source: Nansen

When whales and influential figures accumulate a token, it often sparks increased interest from retail investors, many of whom buy in due to FOMO (fear of missing out), driving price appreciation for the asset.

PUMP price has been trading within an ascending parallel channel pattern since the beginning of September, as shown on the 4-hour chart.

PUMP price forms an ascending parallel channel pattern on the 4-hour chart — Sep. 5 | Source: crypto.news

The token is approaching a breakout above $0.0046, a key resistance level that PUMP must surpass to confirm further upside momentum.

Additionally, the 50-day simple moving average has recently crossed above the 200-day SMA, forming a golden cross, a classic bullish signal that strengthens the case for continued gains in the short term.

Based on this setup, PUMP is likely to remain within the ascending channel, with the next target at the $0.0050 psychological resistance. A decisive move above this threshold could pave the way for a rally toward $0.0058, the level projected by the 161.8% Fibonacci extension. The target remains 29% above the current price level.

Conversely, a drop below $0.0042 would invalidate the bullish structure and could open the door to a potential reversal.

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September 5, 2025 0 comments

NFT Gaming

Outperforms BTC, Poised to Follow Ether’s 200% Rally on ETF and Treasury Demand

by admin September 3, 2025

With bitcoin BTC$112,260.21 stuck just above $110,000 and ether (ETH) consolidating after hitting fresh records, Solana SOL$209.27 has emerged as a standout performer in the crypto market recently.

The token traded around $211 on Monday, up 33% from early August lows, making it one of the best performers in the CoinDesk 20 Index in the past month. Against bitcoin, SOL has gained 34% over the past month, and it has strengthened 14% versus ETH since mid-August.

The rally reflects a broader rotation into altcoins, analysts said.

“The season of profit redistribution among holders of cryptocurrencies continues,” Sergei Gorev, head of risk at YouHodler, said in a market note shared with CoinDesk. He said liquidity has been moving out of BTC into second-tier tokens, with “a noticeable increase in the positive dynamics in capital flows to SOL.”

Such flows could be long-term as corporate investors look for large, liquid projects to hold, Gorev added, naming SOL alongside with XRP XRP$2.8512 as the “next interesting market ideas.”

Jeff Dorman, chief investment officer at Arca, tipped SOL to replicate ether’s turnaround earlier this year. He pointed to Ethereum’s resurgence after stablecoin adoption, strong ETF inflows and the relentless bid from digital asset treasuries, or DATs, helped ETH rally nearly 200% since April.

“SOL appears poised to repeat the exact same playbook that ETH just executed in the coming months,” Dorman wrote in a fresh report.

The first U.S.-listed Solana ETF launched in July, but it was futures-based. Several asset managers, including VanEck and Fidelity, have filed for spot products with decisions due later this year, Dorman said.

Meanwhile, at least three Solana-focused DATs are raising funds that could channel up to $2.65 billion into SOL over the next month, he added.

Solana-focused digital asset treasuries announced (Arca)

At only one-fifth of ETH’s market capitalization, SOL’s price could be even more reactive to the flows if they materialize.

“SOL might be the most obvious long right now,” Dorman said. “If the price of ETH rose almost 200% on roughly $20 billion of new demand, what do you think happens to SOL on $2.5 billion or more of new demand?”

Recent news could also add to the momentum. Nasdaq-listed digital asset conglomerate Galaxy Digital tokenized its shares on Solana, while the approval of the Alpenglow upgrade promises to improve transaction speed and finality.

Read more: TRUMP, XRP, and SOL Options Signal a Potential Year-End Altcoin Season: PowerTrade

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September 3, 2025 0 comments

Line chart showing an 8% decline in XLM price against USD on August 28-29 with high trading volume amid institutional selling pressure and partial recovery.

GameFi Guides

Are Stablecoins (USDC, USDT) an ‘Engine of Global Dollar Demand’ or a 2008-Style ‘Liquidity Crunch’?

by admin September 3, 2025

Good Morning, Asia. Here’s what’s making news in the markets:

While traders fixated on Jerome Powell’s latest rate signals, the more consequential story may be playing out in stablecoins.

The sector has nearly doubled in a year to $280 billion, with most issuers holding short-term Treasuries as collateral. That ties crypto liquidity more directly to Federal Reserve policy than ever before, according to OKX Singapore CEO Gracie Lin.

(DeFiLlama)

“While markets are still digesting Powell’s latest comments on rates, a more consequential long-term shift is happening beyond the charts and headlines. It’s in the so-called ‘boring’ stablecoins that we’re seeing better long-term price signals,” Lin told CoinDesk in a note.

“The next step is unification – stablecoins have built the rails, now they need a unified market that delivers liquidity, efficiency and true utility for investors,” Lin continued.

Coinbase analysts project the market could swell to $1.2 trillion by 2028, forcing $5.3 billion of new Treasury purchases each week. The inflows may marginally lower yields, but the risk runs in reverse: redemption surges could trigger forced selling of bills, draining liquidity.

The debate continued in a recent episode of Goldman Sachs’ Exchanges podcast, where UC Berkeley’s Barry Eichengreen warned that stablecoins could replicate the money-market fund panic of 2008.

“When a dollar money market share fell to 97 cents in 2008, chaos broke out, contagion fears spread, and the government stepped in to guarantee funds,” he said.

Former U.S. Comptroller of the Currency Brian Brooks countered on the podcast that the new GENIUS Act, which requires one-to-one Treasury backing, mirrors the national banking reforms that ended America’s “wildcat banking” era.

“Supervision equals safety,” he said. “Every time a new token is issued, another dollar of Treasury securities has to be bought.”

This tug-of-war captures the macro dilemma.

Coinbase’s model shows stablecoins shaving basis points off Treasury yields, Brooks calls it a new engine of global dollar demand, and Eichengreen warns of a 2008-style liquidity crunch. Lin, meanwhile, argues the rails are already there — and the question is whether they unify into a market that steadies the system or fracture into instruments that amplify shocks.

Market Movements

BTC: BTC is currently trading above $111,300. CoinDesk market data shows that the world’s largest digital asset is trading within a tight intraday range, which suggests consolidating sentiment. Markets appear cautious amid macro uncertainty, with investors patiently waiting for further momentum or directional cues.

ETH: ETH is tading at $4,320, showing modest upside (+0.6%) intraday, hinting at renewed investor interest following recent gains. The broader crypto recovery, particularly in altcoins, seems to be bolstering demand.

Gold: Gold recently crossed $3,540 an ounce, putting it at a fresh all-time closing high. The rally is being driven by surging expectations for an upcoming Fed rate cut as well as heightened uncertainty over U.S. tariffs and political pressure on the Fed. Investors are flocking to gold as a safe‑haven asset amid these risks.

Nikkei 225: The Nikkei 225 remains steady within its current range, reflecting cautious optimism among investors. The rise follows a broader “ninja stealth rally” in Japanese equities, driven by strong foreign inflows, reforms, and shifting global capital trends toward Japan.

Elsewhere in Crypto

Jack Ma-Linked Yunfeng Financial to Build Ether Treasury Starting With $44M ETH Purchase (CoinDesk)
Jito executives explore the impact of the SEC’s liquid staking decision (The Block)
Ethereum Foundation to Unload Another 10K ETH Following SharpLink Deal (CoinDesk)

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September 3, 2025 0 comments