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New data from Coin Metrics indicates that stablecoin dusting and address poisoning activity now accounts for roughly 11% of all Ethereum transactions following the Fusaka upgrade, which significantly reduced transaction costs. Ethereum is processing over 2 million transactions per day on average, with peaks near 2.9 million in mid-January, alongside about 1.4 million daily active addresses, marking a 60% increase from prior norms. Analysis of more than 227 million USDC and USDT balance updates from November 2025 to January 2026 shows a sharp rise in transfers of negligible value, with a large share under 1 dollar and many under one cent, suggesting widespread wallet seeding. While these dust transactions and small-balance addresses have increased two to three times compared with pre-Fusaka levels, the majority of stablecoin transfers by value remain legitimate and economically meaningful.
Galaxy Digital reported a 482 million dollar loss in the fourth quarter, largely due to falling cryptocurrency prices as Bitcoin declined about 20% during the period and continued dropping toward 73,000. CEO Mike Novogratz described the downturn as a recurring phase of the crypto market cycle, historically followed by renewed accumulation and recovery. Separately, newly released emails from the US Justice Department suggest that Jeffrey Epstein indirectly invested about 3.25 million in Coinbase in 2014, acquiring nearly 196,000 Series C shares when the company was valued at 400 million, with no evidence that Coinbase executives were aware of his involvement; later correspondence indicates he sold roughly half of that stake in 2018 for around 15 million. Source
Bitcoin has stabilized above the 74,000 area after a sharp selloff, but analysts warn that momentum remains weak and downside risks persist. QCP Capital says price action is fragile, with resistance capping any recovery and liquidation risk still elevated if support fails, particularly if Bitcoin drops decisively below 74,000. A move back above 80,000 could provide short-term relief, but macro uncertainty, policy risk, and heavy use of leverage continue to pressure confidence across crypto markets. Bitcoin briefly dipped near 73,100 before rebounding toward the mid-76,000 range, though analysts stress that broader conditions remain vulnerable without clearer signs of institutional buying, easing geopolitical tensions, or a more dovish Federal Reserve.
Market participants across trading, analytics, and prediction markets broadly agree the current drawdown appears cyclical rather than a breakdown of Bitcoin’s long-term thesis, yet conviction remains weak. Commentators point to structural stress from tightening liquidity, concentrated holdings on centralized exchanges, and leveraged positioning amplifying volatility. Technical analysts highlight the 74,000 zone as a critical psychological and cost-basis support, warning that a break could accelerate institutional outflows and deepen losses. Prediction markets and sentiment indicators remain skewed bearish, reflecting expectations of further downside before a durable recovery can form, with many arguing that only after forced selling subsides and real capital re-enters the market will conditions improve meaningfully. Source
Vitalik Buterin said the original vision for Ethereum layer-2 scaling no longer holds, arguing that many L2 networks have failed to properly decentralize or inherit Ethereum’s security. He noted that a large number of L2s still rely on multisig bridges rather than being fully secured by Ethereum, which undermines the idea that they meaningfully scale the network. According to Buterin, Ethereum’s mainnet has matured to the point where scaling is increasingly happening directly on layer 1 through higher gas limits and upcoming architectural changes, making the previous assumption that most activity must migrate to L2s outdated. As a result, he believes L2s should stop positioning themselves primarily as scaling solutions for Ethereum and instead focus on specialized use cases such as privacy, identity, finance, social applications, or AI.
Buterin emphasized that future scaling should rely more heavily on native rollups that are integrated directly into Ethereum, allowing transaction execution to be verified by Ethereum validators rather than external systems. He highlighted native rollups and the eventual integration of zero-knowledge EVM proofs into the base layer as key to increasing throughput while preserving Ethereum’s security guarantees. Ethereum developers have also discussed raising the gas limit to expand block capacity, complementing long-term plans to dramatically increase mainnet transactions per second over the next decade. Support for this shift has grown among parts of the Ethereum community, reflecting a broader push to strengthen Ethereum’s core layer rather than relying predominantly on external scaling systems. Source
Hedera has taken the top position in Santiment’s latest real-world asset development rankings, which measure meaningful GitHub activity over the past 30 days. The layer-1 blockchain moved ahead of other major projects in the sector, signalling heightened development momentum relative to its peers. Santiment’s rankings focus on substantive development events rather than routine updates, aiming to reflect where active building and innovation are most concentrated within the RWA ecosystem.
Chainlink ranked second in the latest standings, followed by Avalanche in third and Stellar in fourth, while IOTA climbed into fifth place and Chia slipped to sixth. VeChain, Lumerin, and Creditcoin all advanced in the rankings, landing seventh through ninth, and Injective completed the top ten after a slight drop. Santiment has previously noted that sustained development activity can be an indicator of long-term commitment, suggesting these projects are less likely to be abandoned and remain actively maintained. Source
Coinbase has lodged a formal submission to Australia’s House of Representatives Standing Committee on Economics, accusing the country’s four largest banks of routinely denying banking services to crypto and fintech companies through account closures and transaction restrictions. The exchange argues that what was once occasional has become a systemic practice, disproportionately affecting digital asset businesses and undermining competition. It claims that as early as 2021, up to 60% of fintech firms were refused banking services, a problem that continues today, effectively locking lawful businesses out of the financial system.
The company says banks often cite anti-money laundering and counter-terrorism financing obligations, but the lack of clear explanations and appeal mechanisms has damaged trust and created a broader crisis of confidence among consumers and businesses. Coinbase is urging lawmakers to implement five transparency measures recommended by financial regulators in 2022, including clearer reasons for debanking, advance notice, and access to dispute resolution, which remain unenforced. It also points to international examples where access to basic banking is protected, warning that without reform, opaque debanking practices risk functioning as an unlawful regulatory ban just as Australia tightens crypto licensing rules. Source
World Liberty Financial has entered decentralized finance lending with the launch of World Liberty Markets, an onchain borrowing and lending platform built around its US dollar-pegged stablecoin, USD1, which now has a circulating supply of about $3.4 billion. The platform allows users to borrow and lend through smart contracts rather than centralized intermediaries, using overcollateralized loans enforced transparently on the blockchain. USD1 functions as the main settlement and borrowing asset, enabling users to unlock liquidity from holdings like Ether, tokenized Bitcoin and other supported crypto assets without selling them, positioning stablecoins as a core layer of blockchain-based credit rather than just payment tools.
The project reflects broader trends in DeFi toward automated risk management, visible collateral ratios and rapid liquidations, while distancing itself from the failures of past centralized crypto lenders. World Liberty has indicated plans to expand collateral to tokenized real-world assets and is pursuing a regulated path through an application for a national trust bank charter in the United States, signalling an intent to integrate onchain credit with traditional finance. While the model offers capital efficiency and transparency, it remains primarily accessible to users with substantial crypto assets and carries risks tied to smart contracts, volatility and regulatory uncertainty, underscoring both the maturation and current limits of decentralized credit markets. Source
Bitcoin and broader crypto markets are under pressure as confidence has weakened around key adoption narratives and economic relevance. Analyst Alex Good outlined eight factors behind the downturn, led by the failure of major blockchain integration stories to produce lasting value or meaningful revenue. High-profile examples include public chains being sidelined in favor of private systems and a sharp decline in fee generation across major networks, with attention also pulled away by stronger performance in global equities, gold, and artificial intelligence. Additional strain has come from unmet expectations around pro-crypto political momentum and structural risks tied to digital asset trusts, where widening discounts could trigger forced selling of underlying tokens.
Market data reflects this negative backdrop, with social sentiment reaching its most bearish levels in months and significant capital exiting crypto investment products, particularly Bitcoin. Despite this, longer-term arguments remain intact for some observers, including rising global debt, geopolitical fragmentation, and the appeal of fixed-supply assets in an environment where artificial intelligence may pressure employment and push central banks toward easier policy. Other macro-focused analysts view the decline as a liquidity-driven phase rather than a structural failure, suggesting conditions could improve later in the year, though near-term stability depends on Bitcoin holding current support levels and regaining lost momentum. Source
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The Markethive wallet is designed as a comprehensive internal financial hub that allows entrepreneurs to manage payments, income, rewards, subscriptions, loans, and digital assets within a single ecosystem. It tracks a wide range of transactions including micropayments, staking rewards, retail income, promo code redemptions, and loan activity linked to the Incentivized Loan Program. Built to support business operations rather than simple trading, the wallet integrates accounting tools, automated conversions, and access to platform services, while enabling users to earn, spend, and manage value through Markethive Credits, Hivecoin, and other supported assets.
Security and infrastructure are central to the wallet’s design, combining advanced encryption, multi-factor authentication, audits, and a dual hot and cold storage system built on the Solana blockchain. Users can manage Bitcoin, Solana, and Hivecoin balances, access platform services such as advertising, exchanges, rewards programs, and promotional tools, and participate in a tiered promo code system that supports branding and customer acquisition. By combining decentralized assets, transparent accounting, and a broad suite of business tools, the Markethive wallet aims to provide users with autonomy, financial control, and a scalable foundation for entrepreneurship within a secure digital economy. Source
Privacy-focused cryptocurrencies underperformed the broader crypto market as Monero and Zcash posted the steepest losses among the top 100 digital assets. Both tokens fell by about 8% in a single day, dragging the overall privacy coin sector down roughly 5.8%, a sharper decline than the wider market. Monero dropped nearly 20% over the past week following a reversal from a strong January rally, while Zcash fell more than 26% over the same period after peaking in late December. Trading data and market sentiment point to accelerating downside momentum, with prediction markets assigning low odds to a near-term recovery in Zcash prices.
Analysts attribute the selloff to a combination of broader risk-off sentiment and privacy-specific regulatory pressure that tends to intensify losses during reminding markets. Privacy coins continue to face structural challenges such as exchange delistings, reduced liquidity, and compliance concerns, particularly in regions with stricter surveillance requirements. While some industry figures argue that privacy remains essential for real-world commerce and everyday payments, the market continues to price these assets as regulatory liabilities rather than core infrastructure, amplifying volatility and limiting institutional participation. Source
Aave is sunsetting its umbrella brand Avara as it consolidates all current and future products under Aave Labs, signaling a renewed focus on decentralized finance. Founder and CEO Stani Kulechov said the Avara structure is no longer needed as the company concentrates on scaling Aave’s core DeFi offerings. As part of this shift, the Family crypto wallet iOS app is being phased out after the team concluded that mass adoption requires purpose-built financial products rather than general-purpose wallets.
Existing Family wallet accounts will remain supported as underlying infrastructure within Aave Labs products, though no new users will be onboarded after April 1 and the app will be fully wound down by April 1, 2027. Users will retain access to their funds through Aave’s website during this period. The move follows Aave reducing its involvement in the Lens protocol and aligns with its strategy to simplify branding while prioritizing its flagship lending platform, which remains the largest DeFi protocol with around $30 billion in total value locked. Source
BitRiver, Russia’s largest Bitcoin mining company, is facing bankruptcy amid a mix of financial, operational, and legal challenges. Its parent company, Fox Group of Companies, has been placed under court observation due to mounting debts and unpaid obligations. One key dispute involves Infrastructure of Siberia, which is seeking over $9 million after BitRiver failed to deliver mining equipment despite receiving advance payments. Operational bans have shut down regional sites in Irkutsk, Buryatia, and Ingushetia, worsening the company’s financial situation. Energy suppliers have also filed claims worth hundreds of millions of rubles over unpaid electricity bills, while some lost trading rights, further limiting the company’s ability to operate.
Leadership troubles have compounded these issues, as founder and CEO Igor Runets is under house arrest on multiple tax evasion charges, accused of attempting to hide company assets. International pressures, including US sanctions and the exit of foreign partners such as Japanese firm SBI, have restricted BitRiver’s market access and financial support. Despite managing over 175,000 rigs across 15 centers and generating 129 million in revenue last year, the company’s rapid decline underscores the fragile balance of regulatory, financial, and operational risks in Russia’s mining industry. While BitRiver falters, the country’s crypto mining sector continues to grow, with grid-connected capacity rising 33% in 2025, showing that Russia remains a significant player globally. Source
Stablecoin “dust” transactions on Ethereum have surged following the Fusaka network upgrade, which reduced transaction costs and improved onchain data handling. Analysis of over 227 million USDC and USDT balance updates from November 2025 through January 2026 showed that 43% of transfers were under $1, with 38% below a single penny. Dust activity now accounts for roughly 11% of all Ethereum transactions and 26% of active addresses on an average day, up from pre-Fusaka levels of 3 to 5% of transactions and 15 to 20% of addresses. Daily Ethereum transactions now average over 2 million, peaking near 2.9 million, while daily active addresses reached 1.4 million, reflecting a 60% increase compared with previous averages.
Dusting attacks, a form of address poisoning, involve sending tiny amounts of cryptocurrency from look-alike wallet addresses to trick users into copying the wrong address. Researchers reported a significant rise in new wallet creation, with some attackers sending millions of dust transfers for minimal costs, causing losses totaling around $740,000. Despite the increase in dust activity, Coin Metrics noted that the majority of network growth and stablecoin transfers remain organic, with genuine usage continuing to drive overall post-Fusaka activity. Source
Ethereum co-founder Vitalik Buterin has called for a shift in strategy that reduces the network’s reliance on layer-2 (L2) scaling solutions. While L2s like Base, Polygon, Arbitrum, and Optimism were previously seen as key to scaling Ethereum without compromising security or decentralization, Buterin now argues that some of these networks have made concessions that prevent them from meeting Ethereum’s standards. He emphasized that L2s should not automatically be considered “branded” extensions of Ethereum, particularly when their designs prioritize customer control or regulatory compliance over full decentralization. Buterin highlighted the distinction between “stage 1” L2s, which offer limited decentralization, and “stage 2” networks that are fully decentralized, suggesting that users and developers should view L2s along a spectrum rather than as uniform extensions of Ethereum.
The announcement signals a potential turning point for Ethereum’s L2 ecosystem, challenging the long-held narrative that L2s primarily exist to scale the mainnet. Buterin urged L2 developers to rethink their value proposition beyond simply scaling Ethereum, suggesting that networks should identify unique benefits or functionalities that distinguish them while maintaining trust and security. This shift could reshape marketing strategies and user expectations, with some L2s continuing to offer speed or convenience at the expense of decentralization, while others strive to meet Ethereum’s higher standards. Source
Crypto.com has launched a standalone prediction market platform called OG, spinning out its prediction markets business after reporting rapid growth. OG is powered by Crypto.com Derivatives North America, a CFTC-registered exchange and clearinghouse, and is currently available only in the United States. The company cited 40-fold weekly growth in its prediction market business over the past six months as justification for creating a dedicated platform. Crypto.com originally launched a “sports event trading” product for US users in December 2024, and OG now positions itself as a competitor to established platforms such as Polymarket and Kalshi.
The launch comes as prediction markets experience a surge in popularity, expanding beyond blockchain-based betting into broader event contracts explored by Wall Street. The sector saw 130-fold growth from under $100 million per month in early 2024 to over $13 billion by the end of 2025, with Polymarket and Kalshi alone handling $37 billion in predictions and raising $3.6 billion in equity investment in 2025. Analysts expect the industry’s revenues to grow from roughly $2 billion annually to more than $10 billion by 2030. OG enters a crowded market, but Crypto.com sees the standalone platform as a strategic move to capitalize on the booming prediction market industry. Source
The Nevada Gaming Control Board has filed a civil enforcement action against Coinbase Financial Markets, seeking to block the exchange from offering event-based contracts on sports and elections to Nevada residents without a state gaming license. The Board argues that these activities constitute wagering under Nevada law, requiring licensing and compliance with age restrictions, taxes, and consumer protections. The filings include a complaint for permanent injunction, declaratory relief, and an application for a temporary restraining order, aiming to immediately halt Coinbase’s prediction market offerings on its mobile app. Nevada regulators say Coinbase’s operations create an unfair advantage over licensed sportsbooks and cause ongoing harm by bypassing state gaming requirements.
This action follows similar enforcement steps taken against other prediction market platforms, including Kalshi and Polymarket, which faced cease-and-desist orders and temporary restraining orders in the state. Coinbase has filed federal lawsuits in Connecticut, Michigan, and Illinois, arguing that prediction markets fall under the Commodity Futures Trading Commission’s exclusive jurisdiction and that state enforcement stifles innovation. Nevada’s case reflects a growing clash between state gaming authorities and crypto exchanges offering prediction markets, highlighting the regulatory uncertainty surrounding event-based trading in the United States. Source
Bitwise Asset Management is set to acquire institutional staking provider Chorus One, expanding its offerings in cryptocurrency yield services as demand for Ethereum staking rises. Chorus One currently manages approximately $2.2 billion in staked assets and provides staking services for decentralized networks. The acquisition will add a significant staking operation to Bitwise’s platform, catering to both retail and institutional investors seeking onchain yield opportunities. Financial terms of the deal have not been disclosed.
The move comes amid a surge in Ethereum staking, with over 30% of ETH supply locked and validator queues exceeding 4 million ETH, resulting in wait times of more than 70 days. Rising interest in staking has prompted other major asset managers, including Morgan Stanley and Grayscale, to integrate staking rewards into regulated crypto products. The acquisition also coincides with record levels of mergers and acquisitions in the crypto industry, totaling $8.6 billion across 133 deals in 2025, reflecting growing consolidation and strategic expansion among leading crypto firms. Source
Disclaimer: These articles are provided for informational purposes only. They are not offered or intended to be used as legal, tax, investment, financial, or any other advice.
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