Cryptocurrency markets faced yet another week of declines as investor engagement steadily decreased in anticipation of the holiday season.
Bitcoin (BTC) dropped more than 5% over the past week, reaching a low of $84,398 on Thursday before bouncing back to trade above $87,769 on Friday, according to TradingView data.
The ongoing volatility in the crypto market poses risks for digital asset treasury (DAT) companies, as their survival hinges on steering clear of the multiple-to-net-asset-value (mNAV) “roller coaster.” Marco Santori, CEO of Solmate, noted that these firms are at the mercy of the value fluctuations of the tokens maintained on their balance sheets.
In broader cryptocurrency news, the US Securities and Exchange Commission (SEC) has closed its four-year investigation into Aave, representing a notable regulatory victory for the sector.
In light of this development, Aave’s founder Stani Kulechov revealed the 2026 “master plan” for the decentralized lending platform, aiming to secure $1 billion in value through real-world asset deposits as part of Aave v4, Horizon, and the Aave App initiatives.
DAT longevity depends on evading the “mNAV roller coaster”: Solmate CEO
The emergence of digital asset treasury firms is poised to be a key narrative of 2025, but their sustainability will be contingent upon robust capital management and effective business strategies.
Marco Santori, CEO of Solmate, stated that all DATs must grapple with the value of the underlying tokens they hold. Revenue-generating entities may not face significant challenges, yet pure-play DATs are likely to encounter volatility.
“Many of these treasury firms depend on the multiple-to-net-asset value for survival. When their market cap exceeds the actual value of their asset holdings, they can sell shares in a beneficial manner,” Santori explained during an appearance on Cointelegraph’s Chain Reaction X show.
“For every dollar of stock sold, they reinvest that into acquiring more underlying coins, boosting their net asset value. As long as they maintain a premium, they can sustain this model. This represents the pure treasury model, which I believe has a promising future.”
However, the challenge arises when interest in a DAT’s underlying tokens diminishes, causing mNAV to decline. Santori noted that falling token prices lead to reduced mNAVs.
“This situation results in many treasury companies becoming stagnant, unable to grow efficiently. I wanted to avoid that scenario for our investors. I intended to provide them exposure to SOL and the expansion of the Solana network without having them endure an mNAV roller coaster,” Santori articulated.
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Aave founder reveals 2026 “master plan” after SEC inquiry conclusion
Stani Kulechov, Aave’s founder, shared the decentralized protocol’s “master plan” for 2026 shortly after the US Securities and Exchange Commission concluded its four-year inquiry into the platform.
On X, Kulechov stated that although 2025 would be the platform’s most successful year to date, he believes Aave is merely at “day zero regarding what’s to come.”
Focusing on 2026, the CEO laid out a strategy emphasizing scaling the DeFi platform and achieving specific usage goals, such as $1 billion in real-world asset (RWA) deposits.
“Our strategy for the upcoming year is built on three primary pillars: Aave v4, Horizon, and Aave App,” he mentioned.
Aave v4 is anticipated to be a substantial upgrade, enhancing the platform’s borrowing and lending pools, user interface, and liquidation parameters, among other aspects.
In his announcement, Kulechov described v4 as the “backbone of all finance,” highlighting the tailored lending markets provided by the Hub and Spoke model.
In this framework, the hub serves as a single unified cross-chain liquidity pool acting as the central point for all assets on the protocol, while the spokes represent highly customizable markets that utilize hub liquidity.
“This will enable Aave to manage trillions of dollars in assets, making it the preferred option for any institution, fintech, or enterprise seeking to access Aave’s robust liquidity,” he added, noting:
“In 2026, Aave will introduce new markets, assets, and integrations that have never before been seen in DeFi. We will continue engaging with fintechs and collaborating closely with the DAO and our partners to progressively scale TVL throughout the year.”
Turning to the next pillar, Horizon, Aave’s decentralized real-world asset market, the CEO expressed plans to involve “numerous leading financial institutions” to establish a significant presence in the RWA sector.
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Hyperliquid governance vote seeks to permanently set aside $1 billion Assistance Fund
The Hyper Foundation has proposed a validator vote to officially classify HYPE tokens held in the Hyperliquid protocol’s Assistance Fund as permanently inaccessible, excluding them from the asset’s circulating and total supply.
According to the foundation, the Assistance Fund functions as a protocol-level mechanism embedded within the layer-1 network’s execution, automatically converting trading fees into HYPE tokens and directing them to a designated address. Currently, this wallet holds roughly $1 billion in tokens.
This address was designed without control features, rendering the funds irretrievable without a hard fork. “By voting ‘Yes,’ validators consent to treat the Assistance Fund HYPE as burned,” the Hyper Foundation stated.
Native Markets, the issuer of the Hyperliquid-native stablecoin USDH, reminded users that 50% of the stablecoin’s reserve yield is allocated to the Assistance Fund and converted into HYPE tokens. “Should this validator vote pass, these contributions will then be officially recognized as burned,” the company noted.
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ETHGas secures $12 million as Buterin revives gas futures discourse
Ethereum blockspace trading platform ETHGas announced it secured $12 million in a seed round led by Polychain Capital.
The funding announcement follows recent discussions by Ethereum co-founder Vitalik Buterin about the concept of an onchain “gas futures” market, suggesting that such a tool could provide users with clearer fee expectations and allow them to hedge potential future expenses.
ETHGas posits that Ethereum requires “a rethinking of the allocation of blockspace on the network,” claiming that its newly launched blockspace trading platform is a step forward in this direction. The firm stated the market debuted with $800 million in commitments from validators, builders, and other participants.
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Tokenized stocks may be on the blockchain, but the SEC still seeks oversight
The US Securities and Exchange Commission’s Trading and Markets Division detailed on Wednesday how broker-dealers can custody tokenized stocks and bonds under existing customer protection regulations, indicating that blockchain-based crypto asset securities will fall under traditional safeguards rather than being classified in a new category.
The division stated it would not object to broker-dealers considering themselves in possession of crypto asset securities under current customer protection rules, provided they meet a defined set of operational, security, and governance standards. This refers only to crypto securities, encompassing tokenized stocks or bonds.
While this statement is not a formal rule, it clarifies how US regulators expect tokenized securities to integrate within traditional market safeguards.
The guidance implies that tokenized securities are not regarded as a novel asset class with distinct regulations. Instead, they will be incorporated into existing broker-dealer frameworks, even if they are settled on blockchain networks.
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DeFi market summary
Data from Cointelegraph Markets Pro and TradingView indicates that most of the 100 largest cryptocurrencies by market capitalization closed the week negatively.
The memecoin launchpad Pump.fun’s (PUMP) token plummeted 32%, representing the largest decline in the top 100, followed by the decentralized exchange Aster’s (ASTER) token, which fell over 27% over the past week.
Thank you for joining us for this week’s summary of significant DeFi developments. We invite you to return next Friday for further stories, insights, and education surrounding this rapidly evolving space.
