Cryptocurrency markets experienced another week of consolidation following the long-anticipated recovery from last week.
While Bitcoin (BTC) stayed above the significant $90,000 psychological threshold, investor sentiment was still rooted in “fear,” with a slight uptick from 20 to 25 for the week, as indicated by CoinMarketCap’s Fear & Greed index.
In the broader crypto domain, the Ether (ETH) treasury trade seems to be unwinding, as the monthly purchases by Ethereum digital asset treasuries (DATs) plummeted 81% over the last three months from the peak in August.
Nevertheless, the largest corporate Ether holder, BitMine Immersion Technologies, kept accumulating ETH, while other treasury firms continued their fundraising activities for future acquisitions.
Investors are also looking forward to the critical interest rate decision during the upcoming US Federal Reserve meeting on Wednesday for more insights into monetary policy as we approach 2026.
Market expectations indicate an 87% possibility 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 have been decreasing since the peak in August, although the major players continue to acquire billions in Ether.
Investments from Ethereum DATs saw an 81% decrease in the last three months, from 1.97 million Ether in August to 370,000 ETH in November, according to the asset management firm Bitwise.
“ETH DAT bear continues,” stated Max Shennon, senior research associate at Bitwise, in a Tuesday X post.
Despite the slowdown, some financially robust companies continued to accumulate the world’s second-largest cryptocurrency or raise funds for future investments.
BitMine Immersion Technologies, the top corporate Ether holder, accumulated around 679,000 Ether worth $2.13 billion over the past month, achieving 62% of its goal to amass 5% of the ETH supply, based on data from the Strategicethreserve.
BitMine also possesses an additional $882 million in cash according to the data aggregator, hinting at more potential 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 tighten regulations on decentralized finance concerning tokenized stocks, sparking backlash from the crypto community.
In a letter sent to the SEC on Tuesday, Citadel stated that DeFi developers, smart-contract coders, and self-custody wallet providers should not receive “broad exemptive relief” for providing trading of tokenized US equities.
It contended that DeFi trading platforms likely meet the criteria of an “exchange” or “broker-dealer” and should fall under securities laws if they handle tokenized stocks.
“Granting broad exemptive relief to facilitate the trading of a tokenized share through DeFi protocols would result in two separate regulatory frameworks for the trading of the same security,” it claimed. “This situation would contradict the ‘technology-neutral’ approach stipulated by the Exchange Act.”
Citadel’s letter was a response to the SEC’s request for feedback on how to approach the regulation of tokenized stocks, which has drawn significant criticism from the crypto community and organizations championing innovation in blockchain technology.
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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, asserting that the recently launched layer-1 blockchain could plummet as much as 99% and turn out to be yet another failed venture fueled by venture capital hype rather than genuine adoption.
Speaking on Altcoin Daily, the former BitMEX chief described the project as “yet another high FDV, low-float VC coin,” arguing that its token design inherently puts retail traders at risk. FDV refers to Fully Diluted Value, the market value of a crypto project if all its tokens were in circulation.
According to Hayes, projects with a significant disparity between FDV and circulating supply often experience initial price surges, followed by steep sell-offs once insider tokens are unlocked. “It’s going to be another bear chain,” Hayes stated, adding that while every new coin might get a temporary rise, that doesn’t indicate it will establish a sustainable use case.
Hayes asserted that most new layer-1 networks ultimately fail, with only a few having the potential for long-term survival. He noted Bitcoin, Ether, Solana (SOL), and Zcash (ZEC) as the select 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 went live on Monday, announcing an airdrop of its MON token.
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$25 billion crypto lending market now led by “transparent” players: Galaxy
The crypto lending sector has become increasingly transparent, spearheaded by Tether, Nexo, and Galaxy, achieving an aggregate loan book nearing $25 billion outstanding in the third quarter.
The crypto lending market has surged over 200% since the beginning of 2024, according to Galaxy Research. The recent quarter marks its highest level since reaching a peak in Q1 2022.
However, it has yet to reach its prior peak of $37 billion during that time.
The primary difference lies in the emergence of new centralized finance lending platforms and a significant increase in transparency, according to Galaxy’s research head, Alex Thorn.
Thorn expressed pride in the data, highlighting the transparency of its contributors and indicating a substantial shift from previous market cycles.
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Portal to Bitcoin raises $25 million and launches atomic OTC desk
The Bitcoin-native interoperability protocol Portal to Bitcoin has raised $25 million in funding alongside 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 funding round led by digital asset lender JTSA Global. This funding follows previous investments from Coinbase Ventures, OKX Ventures, Arrington Capital, and others.
In conjunction with the new funding, the firm introduced its Atomic OTC desk, claiming “instant, trustless cross-chain settlement of large block trades.” The newly launched service is reminiscent of cross-chain atomic swaps provided by THORChain, Chainflip, and more Bitcoin-focused platforms like Liquality and Boltz.
What distinguishes Portal to Bitcoin is its commitment to the Bitcoin-centered cross-chain OTC market for institutions and large-scale investors, along with its unique technology framework. “Portal provides the necessary infrastructure to position Bitcoin as the settlement layer for global asset markets, eliminating the need for bridges, custodians, or wrapped assets,” remarked Chandra Duggirala, the founder and CEO of Portal.
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DeFi market overview
According to data from Cointelegraph Markets Pro and TradingView, most of the top 100 cryptocurrencies by market cap concluded the week in the red.
The Canton (CC) token experienced an 18% drop, marking the week’s steepest decline among the top 100, followed by the Starknet (STRK) token, which fell 16% on the weekly chart.
Thank you for reading our summary of the week’s most significant DeFi developments. Join us again next Friday for more stories, insights, and education about this rapidly evolving space.
