Cryptocurrency markets experienced another week of consolidation following last week’s anticipated market recovery.
While Bitcoin (BTC) remained above the crucial $90,000 psychological level, investor sentiment was still largely characterized by “fear,” with a slight increase from 20 to 25 during the week, as per CoinMarketCap’s Fear & Greed index.
In the broader crypto landscape, the Ether (ETH) treasury trade appears to be unwinding, with monthly acquisitions by Ethereum digital asset treasuries (DATs) dropping 81% in the past three months from an August peak.
Nonetheless, the largest corporate Ether holder, BitMine Immersion Technologies, continued to accumulate ETH, while other treasury firms persisted in their fundraising initiatives for future acquisitions.
Investors are also awaiting a key interest rate decision during the US Federal Reserve’s upcoming meeting on Wednesday, which may offer more insights into monetary policy as we approach 2026.
Current market estimates suggest an 87% probability of a 25 basis point interest rate cut, a rise from 62% a month earlier, according to the CME Group’s FedWatch tool.
Ethereum treasury trade unwinds 80% as handful of whales dominate buys
The Ethereum treasury trade seems to be unwinding as monthly acquisitions have decreased since the August peak, although the largest players continue to acquire billions of the Ether supply.
Investments from Ethereum DATs fell 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 this decline, some firms with robust financial resources have continued acquiring the world’s second-largest cryptocurrency or raising funds for future purchases.
BitMine Immersion Technologies, the top corporate Ether holder, gathered approximately 679,000 Ether valued at $2.13 billion over the last month, achieving 62% of its goal to accumulate 5% of the ETH supply, based on data from the Strategicethreserve.
BitMine retains an additional $882 million in cash according to the data aggregator, suggesting potential further Ether accumulation.
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Citadel causes uproar by urging SEC to regulate DeFi tokenized stocks
Market maker Citadel Securities has advised the US Securities and Exchange Commission to intensify regulations on decentralized finance concerning tokenized stocks, provoking backlash from the crypto community.
In a letter to the SEC on Tuesday, Citadel Securities asserted that DeFi developers, smart-contract coders, and self-custody wallet providers should not receive “broad exemptive relief” for trading tokenized U.S. equities.
It contended that DeFi trading platforms likely fall under the categories of an “exchange” or “broker-dealer” and hence should be regulated under securities law when offering tokenized stocks.
“Allowing broad exemptive relief for tokenized shares via DeFi protocols would create conflicting regulatory frameworks for trading the same security,” it claimed. “This would contradict the “technology-neutral” approach outlined in the Exchange Act.”
Citadel’s letter, submitted in response to the SEC’s request for input on regulating tokenized stocks, has attracted considerable criticism from the crypto community and organizations advocating for blockchain innovation.
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Arthur Hayes warns Monad could crash 99%, calls it high-risk “VC coin”
Crypto veteran Arthur Hayes has issued a caution regarding Monad, claiming that the recently launched layer-1 blockchain could drop by as much as 99% and become another failed venture driven by venture capital hype instead of real adoption.
In an appearance on Altcoin Daily, the former BitMEX chief described the project as a “high FDV, low-float VC coin,” arguing that its token structure inherently poses risks for retail traders. FDV stands for Fully Diluted Value, which represents the market value of a crypto project if all its tokens were circulating.
Hayes stated that projects with a significant disparity between FDV and circulating supply tend to experience initial price surges, followed by steep declines once insider tokens are released. “It’s likely to be another bear chain,” Hayes said, emphasizing that while new coins often enjoy an initial rise, they may not establish a sustainable use case.
He pointed out that most new layer-1 networks ultimately fail, with only a select few expected to maintain long-term significance. He named Bitcoin, Ether, Solana (SOL), and Zcash (ZEC) as the small number of protocols he predicts will endure the next cycle.
Last year, Monad secured $225 million in funding from venture capital firm Paradigm. The layer-1 blockchain was launched on Monday, accompanied by 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, led by institutions like Tether, Nexo, and Galaxy, reaching an aggregate loan total of nearly $25 billion outstanding in the third quarter.
The crypto lending market has grown over 200% since the start of 2024, according to Galaxy Research. Its latest quarter reflects the highest figures since the peak in Q1 2022.
However, it still has not returned to its peak of $37 billion at that time.
The main difference now is the influx of new centralized finance lending platforms and a marked increase in transparency, as explained by Galaxy’s head of research, Alex Thorn.
Thorn stated on Sunday that he is pleased with the chart and the transparency of its contributors, describing it as a “significant shift from previous market cycles.”
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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, coinciding with the launch of its atomic over-the-counter (OTC) trading desk.
According to a Thursday announcement shared with Cointelegraph, the company raised $25 million in a funding round led by digital asset lender JTSA Global. This follows prior investments from Coinbase Ventures, OKX Ventures, Arrington Capital, and others.
In conjunction with the fresh funding, the company introduced its Atomic OTC desk, pledging “instant, trustless cross-chain settlement of large block trades.” This new service mirrors cross-chain atomic swaps offered by THORChain, Chainflip, and other Bitcoin-focused systems like Liquality and Boltz.
What differentiates Portal to Bitcoin is its emphasis on the Bitcoin-anchored cross-chain OTC market tailored for institutions and whales, alongside its technological framework. “Portal provides the infrastructure to position Bitcoin as the settlement layer for global asset markets, without 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 valuation ended the week in the red.
The Canton (CC) token experienced an 18% decline, marking the steepest drop in the top 100, followed by the Starknet (STRK) token, which fell 16% over 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 regarding this dynamically evolving space.
