Cryptocurrency markets displayed signs of consolidation during the second week of October, as investors continued to speculate on another “Uptober” rally that could drive prices to new heights.
This week also saw the return of an $11 billion Bitcoin (BTC) whale after a two-month absence, who transferred an additional $360 million in BTC, indicating a possible shift toward the world’s second-largest cryptocurrency, with an extra $5 billion remaining in their wallet.
In another potential trigger for Uptober, the US Securities and Exchange Commission (SEC) received 31 applications for crypto exchange-traded funds (ETFs), with 21 filed within the first eight days of October.
However, the ongoing government shutdown may delay the regulatory response to these applications, as the SEC mentioned it will operate “under modified conditions” with an “extremely limited number of staff” until a funding bill is passed.
With Democrats and Republicans unable to reach an agreement for the seventh time on Thursday, the government shutdown is expected to continue into next week, as reported by CBS News reported.
$11 billion Bitcoin whale returns with $360 million BTC transfer after two months
A Bitcoin whale, who previously held approximately $11 billion in BTC before rotating more than $5 billion of that into Ether (ETH) two months ago, has made a comeback to the cryptocurrency market with a fresh $360 million Bitcoin transfer.
The whale’s address sent $360 million worth of Bitcoin to decentralized finance (DeFi) protocol Hyperunit’s hot wallet “bc1pd” on Tuesday. This marked their first transfer in two months, according to blockchain data platform Arkham.
This transfer might indicate another shift towards Ether, following the whale’s transaction patterns.
The $11 billion Bitcoin whale surfaced two months ago, converting around $5 billion worth of BTC into Ether, briefly surpassing the second-largest corporate treasury firm, Sharplink, in total ETH holdings, as reported by Cointelegraph on Sept. 1.
As of Wednesday, the whale still held over $5 billion worth of Bitcoin in their main wallet, suggesting potential selling pressure for the world’s first cryptocurrency.
The Bitcoin whale started reallocating their funds into Ether on Aug. 21 when they sold $2.59 billion of BTC for a $2.2 billion spot Ether purchase and a $577 million Ether perpetual long position.
Continue reading
DeFi TVL hits record $237 billion as daily active wallets fall 22% in Q3: DappRadar
The decentralized application (DApp) sector concluded the third quarter of 2025 with mixed results, as decentralized finance (DeFi) liquidity soared to a record peak while user activity saw a sharp decline, according to new data from DappRadar.
In a report shared with Cointelegraph, DappRadar noted that daily unique active wallets averaged 18.7 million in Q3, a drop of 22.4% compared to the second quarter. Conversely, DeFi protocols cumulatively locked in $237 billion, marking the highest total value locked (TVL) ever recorded in this space.
The report emphasized a continuing gap between institutional capital flowing into blockchain-based financial platforms and retail user engagement with DApps. While DeFi TVL achieved record liquidity, overall activity lagged, indicating weaker retail participation.
“Throughout the entire quarter, every category experienced a decrease in active wallets, but the impact was most noticeable in the Social and AI sectors,” DappRadar elaborated. AI-focused DApps lost over 1.7 million users, dropping from a daily average of 4.8 million in Q2 to 3.1 million in Q3, while SocialFi DApps declined from 3.8 million to 1.5 million in Q3.
Continue reading
New Japan PM may boost crypto economy, “refine” blockchain regulations
Japan’s newly elected prime minister, Sanae Takaichi, could pave the way for more “refined” regulations to enhance the country’s cryptocurrency economy, positioning Japan as a potential global hub for crypto companies.
Takaichi was elected leader of the Liberal Democratic Party (LDP) on Saturday and is expected to become Japan’s first female prime minister when she assumes office on Oct. 15.
Experts predict that her leadership may foster a more open attitude toward technological experimentation, including blockchain innovation, while ensuring Japan’s strict regulatory standards remain intact.
Takaichi’s election may have a “material impact on the perception and governance of digital assets within the country,” according to Elisenda Fabrega, general counsel at tokenization platform Brickken.
In previous public roles, Takaichi has shown support for “technological sovereignty,” advocating for the “strategic development of digital infrastructure, including blockchain technology,” Fabrega communicated to Cointelegraph. “From a legal standpoint, this suggests that her administration may adopt a stance that is not only permissive but also proactive in promoting the digital economy.”
Fabrega added that Takaichi’s political stance could reinforce “Japan’s commitment to legal certainty in the crypto space” and revive interest in the country as an innovation-friendly crypto hub.
Japan’s government acknowledges blockchain as a “cornerstone of its digital transformation strategy,” stated Maarten Henskens, COO at Startale Group and head of Astar Foundation.
“A more relaxed monetary policy under the new leadership could maintain liquidity and stimulate investor interest in alternative assets, including cryptocurrencies,” Henskens informed Cointelegraph.
“At Startale and Astar, we perceive this as an excellent environment to further advance Japan’s Web3 ecosystem,” he remarked.
Continue reading
Afghanistan internet blackout “a wake-up call” for blockchain decentralization
Afghanistan’s recent nationwide internet outage highlighted a significant vulnerability in the leading decentralized blockchains: their reliance on centralized internet providers prone to governmental intervention and technological failures.
The country experienced a near-total internet shutdown lasting about 48 hours before connectivity was restored on Oct. 1, as reported by Reuters reported. The Taliban administration allegedly ordered the disruption, later attributing it to “technical issues” with fiber optic cables.
While blockchains are designed to provide a public, censorship-resistant network for value transfers, their dependency on centralized internet providers complicates these use cases during outages.
“The Afghanistan blackout is not merely a regional connectivity crisis: It serves as a wake-up call,” stated Michail Angelov, co-founder of decentralized WiFi platform Roam Network. “When connectivity is controlled by a limited number of centralized providers, the promise of blockchain can disintegrate overnight,” he added.
This nationwide internet and mobile data services outage impacted around 13 million citizens, according to a September report from ABC News. This incident marked the first full-scale internet shutdown during Taliban rule, following earlier regional restrictions introduced in September to limit online activities deemed “immoral.”
The Taliban denied the existence of the ban, attributing the internet outage to technical complications, including issues with fiber optic cables.
Iran has similarly faced internet censorship issues since the onset of its conflict with Israel.
The Iranian government imposed a 13-day internet shutdown in June, allowing only domestic messaging apps, which led Iranians to search for hidden proxy links for temporary access, as reported by The Guardian reported on June 25.
Continue reading
$10 billion in Ethereum awaits exit as validator withdrawals surge
Ethereum has recorded its largest validator exit this week, with over 2.4 million Ether valued at more than $10 billion awaiting withdrawal from its proof-of-stake network, although institutional participants are filling much of that void in the validator entry queue.
Ethereum’s exit queue surpassed 2.4 million Ether worth over $10 billion on Wednesday. This increase in exits has extended the validator queue time to over 41 days and 21 hours, according to blockchain data from ValidatorQueue.com.
Validators play a vital role by adding new blocks and verifying transactions on the Ethereum network, crucial for its operation.
“Large withdrawals often imply potential token sales, but it does not inherently mean that tokens will be sold,” explained Nicolai Sondergaard, research analyst at crypto intelligence platform Nansen, adding that “there is no immediate cause for concern solely based on this.”
Although the $10 billion withdrawal queue is noteworthy, validators are likely “consolidating from 32 ETH to 2,048 ETH stakes for operational efficiency,” stated Marcin Kazmierczak, co-founder of blockchain oracle company RedStone.
This trend includes increasing inflows into liquid staking protocols for enhanced “capital efficiency,” he told Cointelegraph, adding:
“A significant portion of withdrawn ETH is reallocated within DeFi, rather than being sold.”
“The prolonged withdrawal wait time, exceeding 44 days, naturally restricts supply shocks,” he detailed, noting that Ether’s daily trading volume of $50 billion remains five times larger than the validator queue.
Continue reading
DeFi market overview
Based on data from Cointelegraph Markets Pro and TradingView, a majority of the 100 largest cryptocurrencies by market capitalization finished the week with positive returns.
The privacy-focused Zcash (ZEC) token surged over 68% to become the top gainer in the top 100 for the second consecutive week. The Mantle (MNT) token increased over 18%, marking the second-best performance of the week.
Thank you for reading our summary of this week’s most significant DeFi developments. Join us next Friday for more stories, insights, and education about this rapidly evolving space.
