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Liquidity

Stablecoins
NFT Gaming

Stablecoin Liquidity Hits Record $68B, 67% On Binance Alone

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The combined Exchange Reserve of the stablecoins has recently set a new all-time high (ATH), driven mainly by growth on Binance.

Stablecoin Exchange Reserve Has Witnessed A Rise Recently

In a new post on X, on-chain analytics firm CryptoQuant has talked about the latest trend in the combined Exchange Reserve of the Ethereum and Tron-based stablecoins.

The “Exchange Reserve” here refers to an indicator that keeps track of the total amount of a given asset or group of assets that’s sitting in wallets connected to centralized exchanges.

Generally, one of the main reasons why investors deposit their coins to these platforms is for selling-related purposes, so the supply present on them may be looked at as a measure of the “available sell supply” of the cryptocurrency.

When Bitcoin or another volatile coin observes an increase in this supply, it’s naturally a bearish sign for its price. The same, however, isn’t true in the case of stablecoins, as they are, by definition, stable around the $1 mark.

Instead, inflows of these fiat-tied tokens may actually be a bullish sign for the market. Investors usually park their capital in the form of stables when they temporarily want to avoid volatile markets. Once they have decided it’s time to switch back, they deposit to exchanges and swap into BTC or whatever desired asset. Because of this role of stables, they are sometimes considered as the buy-side liquidity of the sector.

Now, here is a chart that shows how the Exchange Reserve has changed for the different ETH and TRON-based stablecoins over the last few years:

The combined value of the metric has climbed up in recent days | Source: CryptoQuant on X

As displayed in the above graph, the stablecoins have seen their Exchange Reserve surge recently, implying there has been demand for depositing these tokens into exchange custody. The latest growth has mainly been driven by the two largest stables, USDC and USDT.

Following these recent net inflows, the indicator has been able to set a new record of around $68 billion. As for how the various platforms compare in their share of this liquidity, the below chart shared by CryptoQuant breaks it down.

The stablecoin Exchange Reserve separately for the major platforms | Source: CryptoQuant on X

From the graph, it’s visible that Binance holds the largest share of the indicator at $44.2 billion (67%). The next largest platform is OKX, having a reserve of just $9 billion.

These two exchanges have been the main platforms behind the recent growth in stablecoin liquidity.

The trend in the 30-day change of the metric for various platforms in 2025 so far | Source: CryptoQuant on X

Over the past month, Binance and OKX have seen stablecoin net inflows of $2.2 billion and $800 million, respectively.

Bitcoin Price

Bitcoin has failed another attempt at recovery as its price has slumped back down to the $110,700 mark.

Looks like the price of the coin has been moving sideways over the last few days | Source: BTCUSDT on TradingView

Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com

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Binance Liquidity Flows Into Stablecoins As Bitcoin Exposure Cools
NFT Gaming

Binance Bitcoin Liquidity Flows Into Stablecoins As BTC Exposure Cools

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Bitcoin is currently consolidating around the $110K level after days of selling pressure and heightened uncertainty. The bullish momentum that carried BTC to its recent all-time high of $124,500 has slowed, and the market is now in a corrective phase. Bulls are attempting to defend key support zones, but fading strength suggests that consolidation could persist in the near term.

Top analyst Darkfost has highlighted a critical development on Binance: the BTC/Stablecoin reserves ratio is approaching levels that historically flash rare buy signals. This ratio measures the balance between Bitcoin reserves and stablecoin reserves on the exchange, offering insight into investor positioning and liquidity dynamics.

According to Darkfost, the current setup is significant because this signal has only appeared twice since the last bear market. Notably, the previous instance was in March, when Bitcoin retraced to $78,000 before igniting a powerful rally that drove it to new highs around $123,000. The potential re-emergence of this signal suggests that, despite short-term weakness, underlying liquidity conditions may be setting the stage for another upward move.

Bitcoin Reserves And Stablecoin Dynamics Signal Unusual Setup

According to analyst Axel Adler, a significant development is unfolding on Binance as the BTC/Stablecoin ratio approaches the critical level of 1. This ratio essentially shows that the amount of Bitcoin reserves held on the exchange is nearing equivalence with the stablecoin reserves also present there. In practical terms, this means that liquidity on the platform is shifting, with stablecoin reserves increasing relative to BTC holdings.

Binance Bitcoin/Stablecoin Reserve Ratio | Source: Darkfost

This trend suggests that Binance investors are not currently overexposed to Bitcoin. Instead, they are holding more dry powder in the form of stablecoins, positioning themselves for potential opportunities. The data is further reinforced by a new milestone: ERC-20 stablecoin reserves on Binance have just reached an all-time high of $37.8 billion. Such a figure confirms that demand and liquidity continue to flow into the platform at a steady pace, even as Bitcoin undergoes its current correction.

The implications are twofold. On one hand, the growing stablecoin reserves could provide the necessary fuel for a sharp rebound if sentiment shifts. On the other, Adler emphasizes that this type of setup has historically been observed in bear market environments, where stablecoin accumulation signals caution rather than risk appetite.

This contradiction makes the current situation especially intriguing. With Bitcoin consolidating after its run to $124,500, the market is entering a decisive stage. Monitoring how these reserves evolve in the coming weeks will be critical, as they may ultimately determine whether BTC finds renewed bullish momentum—or drifts into a more prolonged correction.

BTC Momentum Weakens: Consolidation Around $110K

Bitcoin’s price action on the 12-hour chart shows consolidation around the $110,800 level following a period of heightened volatility. After reaching its all-time high near $124,000, BTC retraced sharply and is now struggling to regain upward momentum. The price is trading slightly above the 200-day moving average (red line), which is currently acting as a key support zone around $111,700.

BTC testing key resistance | Source: BTCUSDT chart on TradingView

The 50-day (blue line) and 100-day (green line) moving averages remain above current levels, suggesting that Bitcoin is still under bearish short-term pressure. Until BTC reclaims the $113,000–$115,000 range, any recovery is more likely to be corrective than the start of a renewed bullish trend.

Resistance near $112,500 has capped recent attempts at recovery, while immediate support sits between $108,000 and $109,000. A decisive breakdown below this range could push BTC toward the $105,000 region, where stronger structural demand is located. On the other hand, a successful reclaim of $115,000 would increase the odds of another attempt toward $120,000.

Featured image from Dall-E, chart from TradingView

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Ethereum
GameFi Guides

Ethereum Leads Market Rotation Amid Shifting Liquidity On Binance, Is A Rebound In Sight?

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After days of downward pressure and decline, Ethereum, the leading altcoin, appears to be staging a comeback as it surges toward the $4,400 price level. Despite the period of bearish price action, the second-largest asset continues to see serious interest from investors, especially on the Binance crypto platform.

Liquidity Migration, And Ethereum Is Dominating The Trend

As the market turns bearish, liquidity flows and investor behavior on Binance, the world’s largest cryptocurrency exchange, are revealing a clear market rotation. In the midst of this crucial market shift is Ethereum, as the altcoin heavily dominates the trend.

Following his analysis, Darkfost highlighted that ETH is gaining a disproportionate amount of trading activity on the Binance platform while capital moves across assets. This dominance of ETH indicates a renewed belief in the asset’s ongoing rally and long-term potential.

According to the on-chain expert and author, a noticeable change in investor behavior occurred on Binance during the month of August, which marked the first of its kind since 2023. Meanwhile, Ethereum took the center stage with a massive increase in trading volume over other major assets.

ETH trading volume surges | Source: Chart from Darkfost on X

In addition to dominating other major assets listed on Binance, the altcoin outpaced Bitcoin’s trading volume on the platform. This spike in interest coincides with ongoing market volatility, underscoring ETH’s developing position as the hub of momentum and liquidity in the exchange ecosystem.

Data shared by Darkfost shows that ETH recorded nearly $550 trillion in trading volume on Binance in August alone. After calculating Binance’s trading volume, this figure represents roughly 54% of the total volume. Darkfost also highlighted that investor interest in the altcoin seems to have increased sharply on the Binance platform, which has triggered a clear liquidity rotation. 

With most cryptocurrencies still struggling and Bitcoin recently reaching a new all-time high around $123,000, this dynamic has largely driven the increased attention to ETH and contributed to its current outperformance. Historically, a portion of the capital has tended to shift into ETH following a robust bullish leg from BTC before spreading to the rest of the market.

ETH Exchange Reserves Are Dropping

Another metric that reflects this renewed wave of interest is the Ethereum Exchange Reserve on Binance. Despite ETH’s continuous decline in price after reaching a new all-time high, Crypto Sunmoon’s quick-take post shows that demand for the altcoin remains strong compared to Bitcoin.

While Bitcoin reserves on the Binance platform have stayed comparatively constant, Ethereum reserves are exhibiting a persistent downward trend. According to the on-chain expert, this divergence implies that there is more demand for Ethereum than for Bitcoin, as market participants are actively accumulating ETH even during the present price consolidation phase.

Also, a declining exchange reserve is an indication that investors are moving their holdings off centralized exchanges to long-term storage or cold storage. Such a trend points to growing conviction among investors, which typically reduces selling pressure on ETH.

ETH trading at $4,310 on the 1D chart | Source: ETHUSDT on Tradingview.com

Featured image from Adobe Stock, chart from Tradingview.com

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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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’?

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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.

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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GameFi Guides

Decentralized Exchange BunniXYZ Loses $8.4M in Liquidity Exploit

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In brief

  • Decentralized exchange BunniXYZ has reportedly lost $8.4 million to a liquidity-based security exploit.
  • The DEX has paused all smart contract activity on its network and is “actively investigating” the attack.
  • Hackers reportedly manipulated Bunni’s “liquidity curve,” also known as its LDF, to carry out the exploit.

Decentralized exchange (DEX) BunniXYZ has reportedly lost $8.4 million to a liquidity-based security exploit.

According to on-chain security firm Hacken, $6 million of the DEX’s funds was stolen via the Unichain blockchain and $2.4 million via Ethereum. All Unichain funds were then bridged to Ethereum using the Across Protocol.

Confirming the attack in a tweet, BunniXYZ said that it had paused all smart contract activity on its network and was “actively investigating” the circumstances of the attack. It added that it would provide updates soon.

🚨 The Bunni app has been affected by a security exploit. As a precaution, we have paused all smart contract functions on all networks. Our team is actively investigating and will provide updates soon. Thank you for your patience.

— Bunni (@bunni_xyz) September 2, 2025

Founded in February 2025, BunniXYZ is based on automated market maker Uniswap v4, and primarily uses the Ethereum and Unichain blockchains. It currently has a cross-chain Total Value Locked (TVL) of just over $50 million according to DeFiLlama, though it exceeded $80 million at one point earlier this August.

Michael Bentley, co-founder of lending protocol Euler, advised users to remove their funds from Bunni in a tweet, adding that while the DEX rebalances funds in and out of Euler, the lending protocol is “not affected or at risk.” Euler endured a major exploit of its own in 2023 that saw hackers steal nearly $200 million, the bulk of which was later recovered.

What happened?

According to on-chain analyst Victor Tran, co-founder of Kyber Network, hackers manipulated Bunni’s “liquidity curve,” also known as its LDF (Liquidity Density Function). This is the system that calculates how much extra liquidity exists within the exchange and rebalances its liquidity pool to keep the right ratio of tokens.

1. Bunni is a liquidity hook that runs on top of UniswapV4. Instead of using UniswapV4’s normal system, Bunni has its own liquidity curve called LDF (Liquidity Distribution Function).

2. After each trade, Bunni checks if its LDF curve has changed since the last trade. If it has,… https://t.co/uCSWXyuAt2

— Victor Tran (@vutran54) September 2, 2025

Tran said hackers manipulated this LDF “by making trades of very specific sizes.” This caused the rebalancing calculation to break, producing incorrect results for how much each liquidity pool share should own.

By repeating this process, hackers allegedly withdrew more tokens than they should have been able to from Bunni.

Bunni itself has not yet confirmed the mechanism behind the attack.

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Crypto Trends

WLFI Token Falls on Debut as Governance Weighs Liquidity Fee Buyback Plan

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In brief

  • The buyback plan would redirect 100% of fees from protocol-owned liquidity pools across Ethereum, BSC, and Solana.
  • Proponents claim that linking fees to token burns enhances scarcity and boosts long-term value for holders.
  • Analysts caution the effect may be limited by upcoming unlocks and WLFI’s high valuation.

Less than a day through its Labor Day debut, World Liberty Financial’s WLFI token fell sharply as trading volume swelled nearly tenfold.

The governance token dropped from a high of $0.33 to near $0.21 in late Monday trading before settling at around $0.245, with trading volume increasing from approximately $259 million at launch to $2.5 billion, according to data from CoinGecko.

WLFI is down approximately 14% from its debut price of $0.28, but remains significantly higher for early whitelisted buyers who acquired tokens at around $0.015 each.

In light of recent developments, a governance proposal has appeared, calling for all liquidity fees from the project’s pools to be directed toward buybacks and permanent burns.



Posted on the project’s governance forum, the proposal aims to redirect all fees from protocol-owned liquidity on Ethereum, BSC, and Solana into open-market WLFI purchases, which are then sent to a burn address, thereby permanently reducing the supply.

If approved, WLFI would collect fees from its own liquidity positions on Ethereum, BSC, and Solana, use them to buy tokens back on the market, and send the purchased tokens to a burn address.

The proposal describes this as a measure for “direct supply reduction” that would effectively increase “relative weight for committed long-term holders.” It also links the mechanism to network activity, stating that “more usage = more fees = more WLFI burned.”

However, analysts say the effect may be less decisive when weighed against WLFI’s broader token economics.

“While the buyback-and-burn model can provide structural support for the token price, its overall impact may be limited given WLFI’s large implied valuation and relatively low circulating supply,” Min Jung, senior analyst at quantitative trading firm Presto, told Decrypt.

Jung notes that supply pressures may also outweigh the proposal’s impact.

“The scale of upcoming unlocks is likely to exceed the buyback amount, and with few live products currently driving organic demand, the long-term effect on price stability remains uncertain,” Jung explained.

WLFI’s approach mirrors shareholder-return tactics more common in mature firms than in growth-stage ventures, Jung said.

“In traditional markets, companies with high growth typically reinvest profits rather than prioritizing buybacks or dividends,” he explained. “Allocating all liquidity fees exclusively to burns could limit WLFI’s flexibility to fund product development, ecosystem incentives, or strategic investments.”

But given the scale of WLFI’s fundraising, the treasury may still be “sufficient to support future growth,” he added.

Echoing that sentiment, Ryan Yoon, senior analyst at Tiger Research, told Decrypt the buyback-and-burn mechanism “should theoretically support token value through supply reduction.”

WLFI currently lacks “operational services beyond basic liquidity provision,” which could result in minimal fee generation, Yoon said.

Positioned as a decentralized finance project, World Liberty Financial was designed as a lending and borrowing service, although its core platform has yet to be launched. 

The Trump-backed venture has already rolled out a dollar-pegged stablecoin, USD1, which currently ranks as the sixth-largest by market capitalization, according to CoinGecko data.

The project was co-founded by nine individuals, including U.S. President Donald Trump, his three sons, and U.S. special envoy to the Middle East Steven Witkoff, according to its website.

In July, Trump disclosed he had earned a windfall of $57.3 million from the venture. Along with his meme coin deals and an exclusive dinner in April, the president’s links to crypto have stirred controversy in Washington, with some lawmakers claiming possible conflicts of interest.

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Ripple CTO on How XRP, RLUSD Drive Liquidity on AMM: Details
NFT Gaming

Ripple CTO on How XRP, RLUSD Drive Liquidity on AMM: Details

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In recent replies on social media X, Ripple CTO David Schwartz explains AMM liquidity pools in relation to the Ripple USD (RLUSD) stablecoin. This was in response to an X user who had sought clarification as regards the subject matter.

The pool holds half RLUSD and half XRP. The assumption of the pool is that LP token holders want to be long XRP and to profit from XRP volatility.

— David ‘JoelKatz’ Schwartz (@JoelKatz) August 30, 2025

Automated Market Maker (AMM) on XRP Ledger uses liquidity pools instead of traditional order books to facilitate trades. The AMM functionality was enabled with the amendment XLS-30D in March 2024.

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The clawback amendment, which went live in January this year, enabled Ripple’s RLUSD stablecoin to be floated and traded directly on XRP Ledger’s DEX, boosting its liquidity and trading options and increasing decentralized finance (DeFi) activity on the XRPL network.

RLUSD AMM liquidity pool explained

According to Schwartz, the AMM liquidity pool holds a pile of RLUSD and XRP, each of roughly equal value. It also issues tokens that represent claims against the pool for a proportional share of its assets.

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When the price of XRP goes down, the pool converts RLUSD to XRP to equalize the values; on the other hand, when XRP price goes up, the pool converts XRP to RLUSD for value equalization.

The aim is to always increase the value of the pool constant (the amount of RLUSD times the amount of XRP divided by the number of issued tokens outstanding) and never to allow it to decrease.

According to the Ripple CTO, the idea behind the AMM liquidity pool is that, regardless of whether XRP’s price takes a round trip, the value of each liquidity token would serve to maximize the pool constant.

The value of the liquidity tokens in the pool can also increase as individuals use the pool as a liquidity source to trade XRP for RLUSD and pay a spread. The Ripple CTO stated that while the tokens gain and lose value with changes in XRP’s price, it may be less significant than those experienced by holding only XRP.

In further responses, the Ripple CTO explained that since the liquidity pool holds half RLUSD and half XRP, the assumption is that the token holders want to be long on XRP and profit from its volatility.





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Bitcoin & Stablecoins
NFT Gaming

Bitcoin Liquidity Weakens As Stablecoin Growth Down To $1.1B

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Data shows stablecoin market cap expansion has slowed to just $1.1 billion recently, signaling weakening liquidity for Bitcoin and other coins.

Stablecoin Market Cap Growth Is Significantly Down Compared To Earlier Highs

According to data from on-chain analytics firm CryptoQuant, stablecoin growth has been cooling recently. “Stablecoins” refer to cryptocurrencies that have their price tied to a fiat currency, with US Dollars being the most popular option.

Investors generally store their capital in the form of these tokens when they want to avoid the volatility that comes with coins like Bitcoin. Many holders who buy into stables, however, eventually plan to venture back into the volatile side of the market. Since stablecoins can potentially be swapped into BTC and other assets, their supply can be looked at as a sort of available “dry powder” for the cryptocurrency sector. As such, expansions in this supply can prove to be a bullish sign.

Now, here is the chart shared by CryptoQuant that shows the trend in the 7-day change in the market cap of the major USD-based stables over the past year:

Looks like the stables have been observing a positive change in their market cap in recent days | Source: CryptoQuant on X

As displayed in the above graph, the late 2024 bull run was accompanied by a sharp positive change in the market cap of the stablecoins. At the peak, these assets observed weekly net inflows of around $7.7 billion. Another wave of inflows occurred in January of this year, with the metric peaking at $6.6 billion. Since then, the market has seen a cooldown in interest, with inflows into stables staying far from the earlier highs.

From the chart, it’s visible that the sharp burst in capital flows earlier this month could only manage a top of $4.8 billion. The interest also lasted quite briefly, and inflows disappeared soon after. At present, the metric is sitting at $1.1 billion, implying the market cap of the stablecoins is still growing, but clearly, the rate at which it’s happening isn’t close to the previous bull rally.

“Liquidity tailwinds are weaker, limiting Bitcoin’s upside momentum,” explains the analytics firm. It now remains to be seen how long the muted stablecoin inflows would last and whether a pivot to outflows would follow next.

In some other news, the Relative Unrealized Loss held by Bitcoin investors is still quite low even after the latest price decline, as on-chain analytics firm Glassnode has pointed out in an X post.

How the Relative Unrealized Loss has changed for the BTC network over history | Source: Glassnode on X

The Relative Unrealized Loss is a measure of the total unrealized loss held by the Bitcoin investors represented as a percentage of the market cap. At present, the metric’s value stands at just 0.5%, which is quite low compared to past bear markets.

BTC Price

At the time of writing, Bitcoin is floating around $113,400, up almost 2% over the 24 hours.

The trend in the BTC price over the past five days | Source: BTCUSDT on TradingView

Featured image from Dall-E, Glassnode.com, CryptoQuant.com, chart from TradingView.com

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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GameFi Guides

Kindly MD’s $5B Bitcoin Play Comes as DATs Raise Fears for Wider Altcoin Liquidity

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In brief

  • Nasdaq-listed Kindly MD filed an automatic shelf registration for up to $5 billion.
  • The move follows a $679 million Bitcoin purchase through its subsidiary.
  • Analysts warn Bitcoin-focused treasuries may drain liquidity from altcoins.

Nasdaq-listed healthcare firm Kindly MD filed an automatic shelf registration statement with the SEC on Tuesday, electing to distribute up to $5 billion in stock as it expands its capital reach following a $679 million Bitcoin purchase last week.

“Bitcoin will serve as our primary treasury reserve asset, and we are focused on accumulating a long-term Bitcoin position,” Kindly MD stated in the filing.

The filing establishes Kindly MD as a Well-Known Seasoned Issuer, a designation that allows the company to tap capital markets with more flexibility. 



It also authorizes a mix of instruments beyond common stock, with distribution handled by underwriters including Cantor Fitzgerald, TD Securities, and B. Riley Securities in the U.S., as well as Canada’s Canaccord Genuity, among others.

Last week, Kindly MD disclosed a $679 million Bitcoin purchase through its subsidiary, Nakamoto Holdings, marking the first acquisition under its new treasury reserve strategy in a move it said reinforces its “conviction in Bitcoin” as “the ultimate reserve asset” for corporations and institutions.

While the WKSI status “clearly gives a company an advantage in capital raising,” it also imposes pressure “due to the large issuance volumes and high market volatility risks,” Jay Jo, senior analyst at Tiger Research, told Decrypt.

At the expense of altcoins

“Institutional crypto exposure has, without fear, expanded into corporate balance sheets and treasury strategies,” Kelvin Koh, co-founder and CIO at Asia-based venture capital firm Spartan Group, told Decrypt. 

This has been the case since “the approval of U.S. Bitcoin ETFs in early 2024,” which had aligned with the Trump administration’s pro-crypto policies that “have eventuated as promised,” Koh said.

Those events have “normalized crypto exposure” and “opened the door for altcoin-focused digital asset treasuries,” he added.

Yet the continued accumulation and expansion of DATs might open broader trade-offs, Koh opined.

“While DATs bring significant liquidity to the assets they target, for now this may be at the expense of the wider altcoin market,” he said.

Koh co-authored a separate research paper on the future trajectory of DATs, where he traced the trend’s first forays.

“DATs were almost exclusively Bitcoin-focused, with their appeal grounded in Bitcoin’s narrative as a scarce, non-sovereign store of value acting as a hedge against fiat currencies,” Koh wrote.

As a model, DATs rely heavily on raising equity to buy crypto, giving them high exposure to volatility that could cut off new capital and force asset sales that risk amplifying market declines, the paper argues.

“When hundreds of firms pursue the same strategy, the market structure becomes fragile,” Koh warned.

Decrypt has approached Kindly MD for comment.

Editor’s note: This story’s headline has been updated to better reflect Koh’s statements.

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Crypto Trends

BTC Fragility and ETH Rotation Signal Market Bracing for Consolidation Without New Liquidity

by admin



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 is trading just below $110,000 after another failed bounce, down roughly 7% since peaking over $117,000 in the wake of Powell’s dovish Jackson Hole speech, according to CoinDesk market data. Ethereum, which briefly touched $4,900 before a sharp reversal, is holding above $4,300 but showing signs of exhaustion after weeks of outperformance.

The bull run is fraying, market observers say, as thinning liquidity, ETF outflows, and fragile onchain activity collide with whales rotating into ETH and retail longs getting liquidated. Yet beneath the surface, billion-dollar sovereign and institutional allocations are quietly scaling into volatility, creating a sharp divergence between weak short-term conviction and programmatic long-horizon buying.

Glassnode’s latest Market Pulse shows the cycle slipping from euphoria into fragility: spot momentum fading toward oversold territory, ETF flows swinging to a $1 billion outflow, and realized profits collapsing back to breakeven.

That fragility was underscored by QCP Capital, which traced this weekend’s crash to an early holder unloading 24,000 BTC into thin liquidity, a move that cascaded into $500 million in liquidations. QCP said the sale exposed just how brittle the market has become with ETFs bleeding $1.2 billion in outflows even as whales rotate into ETH, pushing the ETH/BTC cross through 0.04.

Singapore-based market maker Enflux picks up that thread, arguing that not all flows are created equal.

While retail longs were blown out, a $2.55 billion ETH stake routed through a single contract and the UAE royal family’s $700 million BTC exposure via Citadel Mining looks less like speculative punts and more like sovereign and institutional allocations.

In other words, even as Glassnode’s onchain data shows weakening address activity and fee volumes, there are counterparties deliberately using volatility to scale into size.

The result is a divergence: retail leverage continues to get flushed, while long-horizon allocators quietly accumulate.

But with transaction fees collapsing back toward decade lows and blocks clearing with little congestion, liquidity on the Bitcoin blockchain itself looks thin. That’s a problem for miners already squeezed by halved rewards, and it leaves the broader market bracing for consolidation, or deeper drawdowns into September, historically Bitcoin’s weakest month.

(CoinDesk)

Market Movement

BTC: Bitcoin’s brief rebound from its weekend plunge failed Monday, with prices rejected at $113,000 before sliding to a seven-week low near $109,700, down 2.7% on the day and 7% from Friday’s post-Powell peak above $117,000.

ETH: Altcoins buckled Monday with ETH dropping nearly 8% below $4,400 and SOL, DOGE, ADA, and LINK sliding 6–8%, triggering $700 million in liquidations, mostly from over $627 million in long bets.

Gold: Gold is holding above $3,350 as Powell’s dovish Jackson Hole remarks boost rate-cut bets and geopolitical tensions sustain safe-haven demand, even as dollar strength and upcoming U.S. growth data loom as headwinds.

Nikkei 225: Asia-Pacific stocks fell Tuesday, with Japan’s Nikkei 225 and Topix down 0.54%, as investors weighed Trump’s China comments and U.S.–South Korea trade talks on planned 15% tariffs.

S&P 500: U.S. stocks pulled back Monday from a rate-cut-fueled rally, with the S&P 500 down 0.4% as focus turned to Nvidia’s upcoming earnings.

Elsewhere in Crypto:

  • Grayscale Files to Convert Avalanche Trust to ETF (Decrypt)
  • Japan’s Finance Minister Says Crypto Assets Can be Part of Diversified Portfolio (CoinDesk)
  • Venture trends, regulatory wins, and consumer innovation: Tom Schmidt and Alok Vasudev on crypto’s new era (The Block)



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