Cryptocurrency markets experienced another week of consolidation following last week’s highly anticipated market recovery.
While Bitcoin (BTC) stayed above the pivotal $90,000 psychological threshold, investor sentiment was predominantly characterized by “fear,” with a slight improvement from 20 to 25 during the week, as reported by CoinMarketCap’s Fear & Greed index.
In the broader crypto landscape, the Ether (ETH) treasury trade seems to be unwinding, with monthly purchases by Ethereum digital asset treasuries (DATs) dropping by 81% over the past three months since peaking in August.
Nonetheless, the largest corporate Ether holder, BitMine Immersion Technologies, continued to accumulate ETH, while other treasury firms sustained their fundraising initiatives for future acquisitions.
Investors are also looking forward to the crucial interest rate decision during the upcoming US Federal Reserve meeting on Wednesday, which may offer insights into monetary policy for 2026.
Markets are predicting an 87% probability of a 25 basis point interest rate cut, up from 62% a month prior, 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 on a downward trend as monthly acquisitions have continued to decrease since the August high, even as the biggest players persist in buying up billions of Ether.
Investments from Ethereum DATs fell by 81% over 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,” stated Max Shennon, senior research associate at Bitwise, in a Tuesday X post.
Despite this slowdown, certain firms with stronger financial positions are still acquiring the world’s second-largest cryptocurrency or securing funding for future purchases.
BitMine Immersion Technologies, the leading corporate Ether holder, acquired about 679,000 Ether worth $2.13 billion over the past month, achieving 62% of its goal to accumulate 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, indicating potential for further Ether accumulation.
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Citadel causes uproar by urging SEC to regulate DeFi tokenized stocks
Market maker Citadel Securities has proposed that the US Securities and Exchange Commission strengthen regulations on decentralized finance concerning tokenized stocks, causing an outcry from crypto users.
Citadel Securities informed the SEC in a letter on Tuesday that DeFi developers, smart-contract coders, and self-custody wallet providers should not receive “broad exemptive relief” when offering tokenized US equities.
It contended that DeFi trading platforms likely fit the definitions of an “exchange” or “broker-dealer” and should be subject to securities regulations if they deal in tokenized stocks.
“Granting broad exemptive relief to allow the trading of a tokenized share via DeFi protocols would create two distinct regulatory regimes for the trading of the same security,” it claimed. “This scenario would contradict the “technology-neutral” approach outlined in the Exchange Act.”
Citadel’s letter, responding to the SEC’s request for feedback on regulating tokenized stocks, has sparked significant backlash 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 sounded the alarm over Monad, stating that the newly launched layer-1 blockchain could decline by as much as 99% and potentially become yet another failed experiment fueled by venture capital hype rather than genuine adoption.
In an appearance on Altcoin Daily, the former BitMEX chief described the project as “another high FDV, low-float VC coin,” claiming that its token structure alone exposes retail traders to risks. 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 substantial gap between FDV and circulating supply often see early price escalations, followed by steep sell-offs once insider tokens become available. “It’s going to be another bear chain,” Hayes asserted, noting that while every new coin tends to get an initial surge, it doesn’t guarantee lasting use cases.
Hayes believes that most new layer-1 networks ultimately falter, with only a select few expected to maintain long-term relevance. He listed Bitcoin, Ether, Solana (SOL), and Zcash (ZEC) as the few protocols he anticipates surviving the next cycle.
Last year, Monad secured $225 million in funding from venture capital firm Paradigm. The layer-1 blockchain 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, now featuring prominent players like Tether, Nexo, and Galaxy, and has reached an aggregate loan volume of nearly $25 billion outstanding in the third quarter.
The size of the crypto lending market has grown by over 200% since the beginning of 2024, according to Galaxy Research. The latest quarterly figures mark its highest level since the peak in Q1 2022.
However, it has not yet returned to its previous high of $37 billion at that time.
The key difference is the rise of new centralized finance lending platforms coupled with significantly improved transparency, noted Galaxy’s head of research, Alex Thorn.
Thorn expressed pride in the chart and the transparency of its contributors, highlighting it as a significant change from past market cycles.
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Portal to Bitcoin raises $25 million and launches atomic OTC desk
Bitcoin-native interoperability protocol, Portal to Bitcoin, secured $25 million in funding with the launch of what it calls an atomic over-the-counter (OTC) trading desk.
As per a Thursday announcement shared with Cointelegraph, the company raised $25 million in a round led by digital asset lender JTSA Global. This fundraising follows previous investments from Coinbase Ventures, OKX Ventures, Arrington Capital, and others.
Alongside the new funding, the company introduced its Atomic OTC desk, promising “instant, trustless cross-chain settlement of large block trades.” The new service is reminiscent of cross-chain atomic swaps offered by THORChain, Chainflip, and other Bitcoin-focused platforms like Liquality and Boltz.
What distinguishes Portal to Bitcoin is its emphasis on the Bitcoin-centric cross-chain OTC market for institutions and high-net-worth individuals, along with its technological stack. “Portal provides the infrastructure to establish 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 capitalization ended the week on a low note.
The Canton (CC) token saw a decline of 18%, recording the week’s steepest drop in the top 100, followed closely by the Starknet (STRK) token, which fell 16% on the weekly chart.
Thank you for reading our summary of this week’s significant DeFi developments. Join us next Friday for more stories, insights, and education regarding this rapidly evolving space.
