Cryptocurrency markets experienced another week of consolidation following last week’s eagerly anticipated recovery.
While Bitcoin (BTC) held steady above the crucial $90,000 psychological mark, investor sentiment remained largely “fearful,” with a slight improvement from 20 to 25 during the week, as per CoinMarketCap’s Fear & Greed index.
In the broader crypto arena, the Ether (ETH) treasury trade seems to be unwinding, with monthly acquisitions by Ethereum digital asset treasuries (DATs) decreasing 81% over the last three months since August’s peak.
Nonetheless, the largest corporate Ether holder, BitMine Immersion Technologies, continued to accumulate ETH, while other treasury firms moved ahead with fundraising for future acquisitions.
Investors are also looking forward to the key interest rate decision in the upcoming US Federal Reserve meeting on Wednesday to shed more light on monetary policy as 2026 approaches.
Currently, markets are factoring in an 87% probability of a 25 basis point interest rate cut, up from 62% a month ago, according to the CME Group’s FedWatch tool.
Ethereum treasury trade unwinds 80% as handful of whales dominate buys
The Ethereum treasury trade appears to be unwinding as monthly acquisitions continue to decline since the August high, although the major players persist in acquiring billions of Ether.
Investments from Ethereum DATs dropped 81% in the last three months, from 1.97 million Ether in August to 370,000 ETH in November, according to Bitwise, an asset management firm.
“ETH DAT bear continues,” noted Max Shennon, senior research associate at Bitwise, in a Tuesday X post.
Despite the slowdown, some financially robust companies continued to acquire the world’s second-largest cryptocurrency or raise capital for future purchases.
BitMine Immersion Technologies, the largest corporate Ether holder, acquired approximately 679,000 Ether valued at $2.13 billion over the past month, achieving 62% of its target to amass 5% of the ETH supply, based on data from the Strategicethreserve.
BitMine also holds about $882 million in cash as per the data aggregator, indicating potential further Ether accumulation.
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Citadel causes uproar by urging SEC to regulate DeFi tokenized stocks
Market maker Citadel Securities has urged the US Securities and Exchange Commission to impose stricter regulations on decentralized finance regarding tokenized stocks, igniting backlash from the crypto community.
In a letter submitted on Tuesday, Citadel Securities argued that DeFi developers, smart-contract coders, and self-custody wallet providers should not receive “broad exemptive relief” for facilitating tokenized US equities trading.
It contended that DeFi trading platforms likely qualify as “exchanges” or “broker-dealers” and should be regulated under securities laws if they’re involved in tokenized stock offerings.
“Providing broad exemptive relief to enable tokenized share trading via DeFi protocols would create two distinct regulatory structures for trading the same security,” it asserted. “This would contradict the “technology-neutral” principle outlined by the Exchange Act.”
Citadel’s letter, a response to the SEC seeking public input on regulating tokenized stocks, has faced significant criticism from the crypto sector and organizations promoting innovation in the blockchain environment.
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Arthur Hayes warns Monad could crash 99%, calls it high-risk “VC coin”
Crypto veteran Arthur Hayes has cautioned about Monad, suggesting that the recently launched layer-1 blockchain could drop by as much as 99% and become yet another failed venture propelled by speculative investor interest rather than genuine adoption.
During a discussion on Altcoin Daily, the former BitMEX head described the project as “another high FDV, low-float VC coin,” indicating that its token structure places retail investors at risk. FDV refers to Fully Diluted Value, signifying the market value of a crypto initiative if all its tokens were already available in circulation.
Hayes asserted that projects with a considerable disparity between FDV and circulating supply frequently experience initial price surges, followed by significant sell-offs once insiders’ tokens become liquid. “It’s set to be another bear chain,” Hayes commented, adding that although every new coin witnesses an initial spike, that does not guarantee it will carve out a sustainable use case.
He noted that most new layer-1 networks are likely to fail, with only a select few expected to maintain long-term viability. He named Bitcoin, Ether, Solana (SOL), and Zcash (ZEC) as the few protocols he believes will endure the next cycle.
Last year, Monad secured $225 million in funding from venture capital firm Paradigm. The layer-1 blockchain launched on Monday, coinciding with an airdrop of its MON token.
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$25 billion crypto lending market now led by “transparent” players: Galaxy
The crypto lending market has become increasingly transparent, dominated by entities such as Tether, Nexo, and Galaxy, achieving nearly $25 billion in outstanding loans in the third quarter.
The crypto lending sector has expanded by over 200% since early 2024, according to Galaxy Research. The latest quarter marks its highest level since its previous peak in Q1 2022.
However, it has yet to reach its peak of $37 billion at that time.
The primary distinction now is the emergence of new centralized finance lending platforms and an increase in transparency, noted Alex Thorn, Galaxy’s head of research.
Thorn expressed pride in the chart showcasing this trend, highlighting the transparency of its contributors as a “significant shift from past market dynamics.”
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Portal to Bitcoin raises $25 million and launches atomic OTC desk
Bitcoin-native interoperability protocol Portal to Bitcoin has secured $25 million in funding alongside the launch of its atomic over-the-counter (OTC) trading desk.
As per a Thursday announcement shared with Cointelegraph, the firm raised $25 million in a round helmed by digital asset lender JTSA Global. This raise follows previous investments from Coinbase Ventures, OKX Ventures, Arrington Capital, and others.
In conjunction with the recent funding, the company introduced its Atomic OTC desk, which guarantees “instant, trustless cross-chain settlement for large block trades.” This service is akin to the crosschain atomic swaps provided by THORChain, Chainflip, and other Bitcoin-focused systems like Liquality and Boltz.
What distinguishes Portal to Bitcoin is its emphasis on the Bitcoin-anchored crosschain OTC market tailored for institutions and large investors, along with its technological backbone. “Portal furnishes the infrastructure to position Bitcoin as the settlement layer for global asset markets, free of bridges, custodians, or wrapped assets,” stated Chandra Duggirala, founder and CEO of Portal.
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DeFi market overview
Based on data from Cointelegraph Markets Pro and TradingView, most of the 100 largest cryptocurrencies by market capitalization ended the week in the negative territory.
The Canton (CC) token dropped 18%, marking the biggest decline of the week among the top 100, trailed by the Starknet (STRK) token, which fell 16% on the weekly charts.
Thank you for reading our summary of this week’s key DeFi developments. Join us next Friday for additional stories, insights, and educational content regarding this rapidly evolving sector.
