Cryptocurrency markets experienced another week of stabilization following last week’s much-anticipated market rebound.
While Bitcoin (BTC) remained above the crucial $90,000 psychological threshold, investor sentiment persisted in a state of “fear,” although it improved slightly from 20 to 25 over the week, based on CoinMarketCap’s Fear & Greed index.
In the broader crypto landscape, the Ether (ETH) treasury activity seems to be winding down, with monthly purchases by Ethereum digital asset treasuries (DATs) plummeting 81% over the last three months since August’s peak.
Nevertheless, the largest corporate Ether holder, BitMine Immersion Technologies, continued to accumulate ETH, while other treasury firms pressed ahead with their fundraising initiatives for prospective acquisitions.
Investors are looking forward to the key interest rate decision in the upcoming US Federal Reserve meeting on Wednesday, which may offer further insights into monetary policy ahead of 2026.
Markets currently estimate an 87% likelihood of a 25 basis point interest rate cut, up from 62% last month, as reported by the CME Group’s FedWatch tool.
Ethereum treasury activity drops 80% as a few whales dominate purchases
The Ethereum treasury activity appears to be diminishing as monthly acquisitions have been decreasing since the August peak, although the major players continue to acquire billions of Ether.
Investments from Ethereum DATs decreased by 81% in the past three months, falling 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 downturn, certain companies with solid financial backing continued to gather the world’s second-largest cryptocurrency or raise capital for future acquisitions.
BitMine Immersion Technologies, the largest corporate Ether holder, amassed around 679,000 Ether valued at $2.13 billion in the last month, completing 62% of its goal to gather 5% of the ETH supply, according to data from the Strategicethreserve.
BitMine also holds an additional $882 million in cash according to the data aggregator, which could indicate more Ether accumulation on the horizon.
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Citadel stirs controversy by urging SEC to regulate DeFi tokenized stocks
Market maker Citadel Securities has proposed that the US Securities and Exchange Commission tighten regulations on decentralized finance concerning tokenized stocks, resulting in backlash from cryptocurrency users.
In a letter submitted to the SEC on Tuesday, Citadel contended that DeFi developers, smart contract coders, and self-custody wallet providers should not receive “broad exemptive relief” for trading tokenized US equities.
It argued that DeFi trading platforms likely qualify as “exchanges” or “broker-dealers” and should be regulated under securities laws if they facilitate the trading of tokenized stocks.
“Granting broad exemptive relief to enable the trading of a tokenized share via DeFi protocols would create two separate regulatory frameworks for the trading of the same security,” it asserted. “This would be contrary to the ‘technology-neutral’ approach outlined in the Exchange Act.”
Citadel’s letter, initiated in response to the SEC seeking input on regulating tokenized stocks, has incited substantial backlash from the cryptocurrency community and groups advocating for innovation in the blockchain sector.
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Arthur Hayes cautions Monad could fall 99%, refers to it as a high-risk “VC coin”
Crypto veteran Arthur Hayes has raised concerns about Monad, stating that the recently launched layer-1 blockchain could dive as much as 99% and become yet another failing experiment driven by venture capital hype instead of genuine adoption.
In an interview with Altcoin Daily, the former BitMEX chief described the project as “another high FDV, low-float VC coin,” claiming that its token structure inherently puts retail traders at risk. FDV signifies Fully Diluted Value, indicating the market value of a crypto project if all its tokens were in circulation.
Hayes remarked that projects with a significant disparity between FDV and circulating supply usually undergo early price surges, followed by considerable sell-offs once insider tokens are released. “It’s going to be another bear chain,” Hayes noted, emphasizing that while all new coins experience an initial surge, it doesn’t guarantee a lasting use case.
According to Hayes, most new layer-1 networks ultimately fail, with only a select few likely to remain relevant in the long term. He identified Bitcoin, Ether, Solana (SOL), and Zcash (ZEC) as the limited group of protocols he anticipates surviving the next cycle.
Last year, Monad acquired $225 million in funding from venture capital firm Paradigm. The layer-1 blockchain became operational on Monday, accompanied by the 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 transitioned to become more transparent than ever, led by firms such as Tether, Nexo, and Galaxy, recently reaching an aggregate loan portfolio of nearly $25 billion outstanding in the third quarter.
The crypto lending market has surged over 200% since early 2024, according to Galaxy Research. The latest quarter marks its highest level since the peak in Q1 2022.
However, it has yet to achieve its previous peak of $37 billion at that time.
The main difference is the emergence of more new centralized finance lending platforms and increased transparency, highlighted Galaxy’s head of research, Alex Thorn.
Thorn expressed pride in the chart and the transparency of its contributors, noting that it represents a “significant change from earlier market cycles.”
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Portal to Bitcoin secures $25 million and launches atomic OTC desk
Bitcoin-native interoperability protocol Portal to Bitcoin has successfully raised $25 million in funding amid the launch of what it describes as an atomic over-the-counter (OTC) trading desk.
According to a Thursday announcement shared with Cointelegraph, the company raised $25 million in a round led by digital asset lender JTSA Global. This funding round follows earlier investments from Coinbase Ventures, OKX Ventures, Arrington Capital, and others.
Alongside the new funding, the company introduced its Atomic OTC desk, which promises “instant, trustless cross-chain settlement of large block trades.” The fresh service is reminiscent of cross-chain atomic swaps offered by THORChain, Chainflip, and other Bitcoin-centric systems like Liquality and Boltz.
What differentiates Portal to Bitcoin is its emphasis on the Bitcoin-anchored cross-chain OTC market for institutions and large investors, coupled with its technological framework. “Portal provides the infrastructure to establish Bitcoin as the settlement layer for global asset markets, without requiring 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 decline.
The Canton (CC) token experienced an 18% drop, marking the largest decline among the top 100, followed by the Starknet (STRK) token, down 16% over the week.
Thank you for reading our summary of the most significant DeFi developments of the week. Join us again next Friday for more stories, insights, and education regarding this dynamically evolving domain.
