As Shiba Inu struggles to post meaningful short-term gains, investors are increasingly shifting their focus to SHIB’s long-term outlook through 2035. In recent weeks, Shiba Inu has traded sideways and currently hovers around $0.0000075. Visit Website
Metaplanet said proceeds will be used for Bitcoin purchases, its Bitcoin income business, and partial debt repayment as it executes its capital strategy.
BitcoinWorld Bitcoin Price Analysis: Critical 63% of Investors Face Losses as Volatility Looms Below $80K Recent on-chain analysis delivers a sobering snapshot for the Bitcoin market, revealing that a significant majority of current investors are underwater on their holdings. This critical Bitcoin price analysis, based on verifiable blockchain data, indicates that approximately 63% of all invested BTC was acquired at prices above $88,000. Consequently, the market now faces heightened sensitivity, with analysts warning that a sustained move below the $80,000 threshold could trigger increased selling pressure and significant short-term volatility. This situation presents a crucial test for market structure and investor psychology as we move through 2025. Bitcoin Price Analysis Reveals Concentrated Investor Pain The core finding stems from the UTXO Realized Price Distribution (URPD), a powerful on-chain metric. This indicator maps the price at which every unspent transaction output (UTXO) last moved on the blockchain, effectively showing the acquisition cost basis for coins currently held. Data from analytics firm Checkonchain, reported by CoinDesk, shows an unusually high concentration of UTXOs in the $85,000 to $90,000 range. This clustering represents a massive volume of Bitcoin bought near the recent cycle highs. When the spot price trades below an investor’s cost basis, that holding is in an unrealized loss. Currently, with Bitcoin’s price fluctuating below this key zone, a dominant 63% of the supply finds itself in this precarious position. This creates a latent selling risk, as prolonged discomfort may push some holders to crystallize their losses. Historically, such high concentrations of underwater investors have acted as overhead resistance. Investors waiting to “break even” often become eager sellers when the price approaches their entry point, capping rallies. Furthermore, this analysis provides essential context for recent price action. The struggle to reclaim the $90,000 level is not merely a technical hurdle but a psychological and economic one, backed by hard data from millions of wallets. Understanding the Mechanics of On-Chain Volatility Signals On-chain analytics move beyond simple price charts to examine the behavior and financial position of network participants. The URPD is a cornerstone of this analysis. Unlike exchange order books, which show intent, URPD reveals committed historical actions—the prices at which coins were actually bought and are still being held. A dense cluster like the one between $85,000 and $90,000 acts as a “volume shelf.” If the price falls through this shelf, it means breaking below the average cost basis for a large cohort of investors, potentially shifting their mindset from “hodling” to risk management. The report highlights a specific danger zone: the $70,000 to $80,000 range. Analysis suggests support in this band is “thin,” meaning fewer coins were acquired at these prices. In market terms, thin support equates to weak buying interest at those levels. Therefore, a decisive break below $80,000 might not encounter significant demand until much lower, potentially leading to a rapid decline toward the $70,000s. This scenario illustrates how on-chain data can forecast potential volatility cliffs. Price Range Investor Sentiment Implied Market Impact $90,000+ Profit Zone (37% of supply) Potential profit-taking supply $85,000 – $90,000 Critical Loss Cluster (High Concentration) Major overhead resistance / break-even selling $70,000 – $80,000 Thin Support Zone Weak buying interest, high volatility risk if breached Below $70,000 Deep Loss Territory Unknown demand, potential for capitulation events Expert Context: Historical Precedents and Market Psychology Market veterans often compare current on-chain structures to previous cycles. Similar concentrations of unrealized losses have preceded periods of heightened volatility and consolidation. For instance, after the 2021 all-time high, a large UTXO cluster around $60,000 acted as resistance for months. The current scenario is unfolding in a different macro environment, characterized by evolving institutional adoption and regulatory frameworks. However, the fundamental psychology of loss aversion remains a constant. Investors are typically twice as sensitive to losses as they are to equivalent gains. This behavioral finance principle suggests the selling pressure from the 63% cohort could be disproportionately strong if fear intensifies. It is crucial to differentiate between short-term volatility and long-term thesis. Many long-term holders (LTHs), identifiable through metrics like the HODL Wave, may be less sensitive to short-term price swings below their cost basis. Their behavior could provide a stabilizing counterweight. The key watchpoint is the Spent Output Profit Ratio (SOPR), which tracks whether coins moved are being sold at a profit or loss. A sustained period of coins being sold at a loss (SOPR Broader Market Impacts and Investor Considerations The implications of this data extend beyond Bitcoin’s standalone chart. As the flagship cryptocurrency, Bitcoin’s volatility often spills over into the broader digital asset market. Altcoins frequently experience amplified beta moves relative to BTC’s direction. Therefore, increased Bitcoin volatility below $80,000 could ripple across the entire crypto ecosystem. Traders and portfolio managers use this kind of on-chain intelligence to adjust risk parameters, set hedging strategies, and identify potential re-entry levels. For the average investor, this analysis underscores several critical principles: Cost Basis Awareness: Knowing your entry price relative to market structure is vital for risk assessment. Volatility Expectation: Markets with large underwater cohorts are inherently more prone to sharp moves. Data-Driven Decisions: Emotional reactions can be mitigated by understanding the aggregate behavior revealed by on-chain tools. Support and Resistance: Key levels are not just lines on a chart but reflections of collective investor financial pain or gain. Furthermore, this situation interacts with other 2025 market dynamics, including Bitcoin ETF flows, macroeconomic interest rate decisions, and developments in blockchain scalability. A surge in ETF buying demand could absorb selling pressure from individual investors, for example, altering the projected outcome. Conclusion This Bitcoin price analysis, grounded in transparent on-chain data, presents a clear-eyed view of current market fragility. The fact that 63% of investors hold coins at an unrealized loss creates a tangible overhang of potential supply. The identified thin support between $70,000 and $80,000 increases the risk of a volatile downward move if the $80,000 level fails to hold. While not a prediction of inevitable decline, this analysis is a critical risk assessment tool. It highlights the importance of monitoring on-chain metrics like URPD and SOPR for signals of changing holder behavior. Navigating the next phase of the market will require attention to these underlying blockchain realities, not just price action alone. Understanding where the market feels pain is the first step in anticipating its next move. FAQs Q1: What does it mean that 63% of BTC investors are “at a loss”? It means that 63% of all Bitcoin currently being held was purchased at a price higher than the current market price. These investors have an “unrealized loss” on paper, which becomes a real loss only if they sell at this lower price. Q2: What is the UTXO Realized Price Distribution (URPD)? The URPD is an on-chain analytics metric. It shows the distribution of prices at which every unspent Bitcoin (a UTXO) was last moved on the blockchain. This effectively maps the purchase price or cost basis for the entire supply of held Bitcoin, revealing where large groups of investors bought in. Q3: Why does a high concentration of loss-making investors increase volatility? Investors in loss are more likely to sell if the price drops further (to avoid bigger losses) or if it rallies back to their break-even point (to exit without a loss). This concentrated group of potential sellers can create swift and sharp price movements when triggered. Q4: What is “thin support” and why is it a problem? “Thin support” refers to a price range where the on-chain data shows relatively few Bitcoins were originally purchased. This means there are fewer natural buyers who acquired coins at that level and might want to buy more. If the price falls into this zone, it may find little buying interest to halt a decline, leading to a faster drop. Q5: Does this analysis mean Bitcoin’s price is definitely going down? No. On-chain analysis identifies zones of risk, pressure, and probability, not certainties. It shows that the market structure is fragile below $80,000. However, external factors like sudden positive news, large institutional purchases, or macroeconomic shifts could change supply and demand dynamics and invalidate the bearish pressure. This post Bitcoin Price Analysis: Critical 63% of Investors Face Losses as Volatility Looms Below $80K first appeared on BitcoinWorld .
Defying the efforts of the bears, the $BTC price rose all the way back to the major $90,000 level and was rejected from a huge wall of resistance. Was this the last chance of a breakout from the bulls? Is the general market consensus of a large reversal about to take place? Strong rejection at major $90,000 resistance Source: TradingView As the $BTC price rose to confirm the breakdown of the bear flag , and kept on going, there was a fleeting moment of excitement for the bulls. The price rallied up as far as the $90,000 horizontal resistance, but was met there with solid reality and a strong rejection. It can be seen in the 4-hour chart above that as the price meandered up on its way to $90,000, it formed a relatively short ascending channel. Once the rejection occurred, the price fell to the bottom of the channel and then tumbled out. A measured move would take the price down to just below $87,000. As the price is now falling out of the channel, it has paused and is perhaps forming a small bear flag. If this is the case, the measured move from this flag would bring the price down to nearly $85,000. Notwithstanding, amidst these small bearish patterns, a bigger pattern has emerged, and this one is bullish. It comes in the form of a falling wedge (light green triangle). If the $BTC price is held up at the major horizontal support, plus the bottom of this wedge pattern, a bounce could happen and send the price to the top of the wedge and a potential breakout. The measured move for this bullish breakout could send the price to a new local high at around $98,000. Two falling wedges Source: TradingView Moving out into the daily time frame gives us more of a perspective on the size of the falling wedge pattern. Although extremely small in comparison to its huge neighbour on the left, it can still pack a punch and send the $BTC price up to just below $100,000 - near the top of the bear flag. Could it be that this smaller wedge could open the path to a much greater measured move out of the large falling wedge already mentioned? The move out of this wedge takes the price right up almost to the 8-year trendline that can just be seen at the top left of the chart. It could also mean a potential new all-time high. This bull market following the bull market of 2021? Source: TradingView Zooming out into the very high time frame of the monthly, we can perhaps compare the 2021 bull market with this one. Firstly, we can see that when the $BTC price moved up to its first peak in 2019 it then went sideways and down for an extended period of time. Could this correspond to the 8-month bull flag in 2024? From here there was a first major peak at the beginning of 2021, which could match the peak in early 2025, and then finally the higher peak of the bull market top towards the end of 2021 - could this reconcile to the all-time high later in 2025? Of course, it could be argued that at least one of the previous bull market cycles did not act in a similar way. Also, as Bitcoin starts to mature, it could be that it’s starting to behave differently. One thing to bear in mind, and it’s not a technical analysis factor, is that around $9 trillion needs to be printed this year in order to service and roll over a huge chunk of US debt. While this debasement of the currency is occurring, and assets like gold and silver are shooting ever higher, is Bitcoin just going to keep on foundering down into a year-long bear market? Food for thought. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
BitcoinWorld Upbit Babylon Token Circulation Update: Strategic Supply Cut Sparks Market Analysis In a significant move for cryptocurrency investors, South Korea’s leading digital asset exchange, Upbit, announced a pivotal update to the token circulation plan for Babylon (BABY) on March 15, 2025. This strategic adjustment, implemented at the project’s direct request, substantially reduces the planned circulating supply for the first quarter, marking a deliberate shift in tokenomics strategy that warrants close examination by the crypto community. Upbit’s Babylon Token Circulation Plan: A Detailed Breakdown Upbit’s official notification outlined precise numerical changes to the BABY token distribution schedule. The exchange reduced the Q1 2025 circulating supply target by 96,595,603 BABY tokens. Consequently, the revised figure now stands at 3,088,768,078 BABY, down from the initially planned 3,185,363,681. Following this quarterly adjustment, the circulating supply target for the second quarter of 2025 is set at 4,428,001,925 BABY. This represents a sequential increase, but the foundational Q1 base is now notably lower. Such precise, project-driven adjustments are becoming increasingly common as crypto projects mature and seek more sustainable emission models. Token circulation plans serve as critical roadmaps, detailing how and when tokens enter the open market. These schedules directly influence market dynamics, including liquidity, trading volume, and price discovery. A reduction in near-term supply, all else being equal, can decrease sell-side pressure. This often signals a project’s long-term confidence and a commitment to value preservation for early stakeholders. However, analysts consistently emphasize that supply metrics represent just one facet of a token’s fundamental health. The Mechanics of Supply Adjustments Supply adjustments typically originate from a project’s core development team or foundation. Exchanges like Upbit then act as communication channels, relaying these verified updates to their user bases. The process involves recalculating vesting schedules, re-evaluating treasury allocations, or delaying certain ecosystem grants. For the Babylon project, a reduction of this magnitude suggests a recalibration of its initial go-to-market strategy, potentially extending runway or reallocating tokens for specific future initiatives like staking rewards or partnership incentives. Contextualizing the Update: Tokenomics in Modern Crypto This announcement fits within a broader industry trend toward more conservative and calculated token distribution. Following the volatility of previous market cycles, many projects now prioritize supply discipline to build trust. A transparent and adjustable circulation plan is increasingly viewed as a hallmark of responsible project management. It demonstrates an ability to respond to market conditions and internal project milestones. Comparatively, other major projects have executed similar maneuvers. For instance, several Layer-1 and DeFi protocols have extended their token unlock schedules or implemented strategic buybacks to manage inflation. The key differentiator often lies in communication; timely, clear updates from reputable exchanges like Upbit enhance market transparency. This practice helps mitigate information asymmetry between project insiders and the public investing community. Key factors influencing such decisions include: Market Conditions: Overall sentiment and liquidity can prompt a review of emission schedules. Project Development Milestones: Delays or accelerations in roadmap execution may necessitate supply adjustments. Community Feedback: Governance proposals or stakeholder sentiment can drive changes. Regulatory Landscape: Evolving guidelines, particularly in jurisdictions like South Korea, may influence distribution strategies. Expert Perspective on Supply-Side Management Industry analysts note that while reducing immediate supply can be a positive signal, the long-term impact depends entirely on underlying utility. “A token’s value is not created by scarcity alone,” observes a blockchain economist from the Seoul Digital Finance Institute. “The critical question is whether the withheld supply is being allocated to activities that generate genuine ecosystem growth, such as developer grants, liquidity provisioning, or user incentives. Otherwise, it merely postpones potential sell pressure.” This perspective underscores the importance of examining the ‘why’ behind the numbers, not just the numbers themselves. Potential Impacts and Market Implications The immediate market reaction to such news is often measured. Traders assess whether the change was anticipated or represents new information. In this case, the update came directly via Upbit, a top-tier exchange, lending it significant credibility. For existing BABY holders, the reduction in near-term supply could be interpreted as a supportive measure, potentially reducing the dilution of their holdings in the short term. For the broader market, this event highlights the operational maturity of the South Korean crypto sector. Upbit’s role as a conduit for official project communications reinforces its position as a market infrastructure pillar. It also sets a precedent for how exchanges can facilitate transparent dialogue between projects and investors, moving beyond simple trading functionality to become information hubs. Looking forward, the adjusted Q2 supply target of approximately 4.43 billion tokens will be the next focal point. Market participants will monitor whether this increased supply enters circulation as planned and how it is absorbed. The distribution method—whether through exchanges, over-the-counter deals, or ecosystem programs—will significantly influence its market effect. Conclusion Upbit’s update regarding the Babylon (BABY) token circulation plan represents a meaningful development in the project’s economic strategy. The decision to cut the Q1 2025 circulating supply by over 96 million tokens reflects a strategic, forward-looking approach to tokenomics. While such adjustments can influence short-term market mechanics, their ultimate success hinges on the Babylon project’s ability to deploy its resources toward building sustainable utility and adoption. This event underscores the evolving sophistication of crypto asset management, where transparent communication and adaptive supply schedules are becoming standard practice for credible projects and the exchanges that list them. FAQs Q1: What exactly did Upbit announce about the Babylon (BABY) token? Upbit announced an update to the Babylon token’s circulation plan, reducing the circulating supply target for Q1 2025 by 96,595,603 BABY tokens, from roughly 3.185 billion to 3.089 billion. Q2: Why would a project reduce its token supply? Projects may reduce near-term supply to manage inflation, extend project runway, reallocate tokens for specific future uses (like staking), or respond to current market conditions to support token value. Q3: Does a supply reduction guarantee the token price will increase? No, it does not guarantee a price increase. While it may reduce immediate sell pressure, the token’s long-term price depends on broader market sentiment, overall demand, and the fundamental utility and adoption of the project itself. Q4: How does this affect current BABY token holders? For existing holders, a reduced near-term supply could mean less immediate dilution of their holdings. However, the overall impact depends on how the project utilizes the withheld tokens in the future. Q5: What is the new circulating supply target for Q2 2025? Following the Q1 adjustment, the circulating supply target for the second quarter of 2025 is set at 4,428,001,925 BABY tokens. This post Upbit Babylon Token Circulation Update: Strategic Supply Cut Sparks Market Analysis first appeared on BitcoinWorld .
Trump-linked stablecoin USD1 is surging on institutional adoption, while the U.S. President’s official meme coin reels from waning hype.
Six US senators have challenged Deputy Attorney General Todd Blanche’s decision to order the closure of the DOJ-specific unit dealing with crypto enforcement in April at the time he personally possessed substantial cryptocurrency holdings. Senators Mazie Hirono, Elizabeth Warren, Richard Durbin, Sheldon Whitehouse, Christopher Coons, and Richard Blumenthal criticized Blanche in a letter dated Jan. 28, 2026, concerning his April 2025 announcement that he was disbanding the National Cryptocurrency Enforcement Team, or NCET. Source: Mazie K. Hirono The senators said the decision came at a time when Blanche had a direct financial interest in cryptocurrencies, raising concerns about conflicts of interest and potential violations of federal ethics law. Did Crypto Conflicts Kill DOJ Enforcement? Lawmakers Demand Answers In 2022, under the administration of President Biden, the NCET was established to lead the complicated cryptocurrency crime investigations in the Justice Department. The unit was at the center of a number of high-profile cases, including the investigation of Binance and its founder , Changpeng “CZ” Zhao, who in 2023 admitted to breaking anti-money-laundering laws in the United States. Former Binance CEO Changpeng Zhao Still Worth $15 Billion Despite Guilty Plea: Forbes Former @binance CEO @cz_binance , is still worth $15 billion despite recently pleading guilty to federal money laundering charges. #CryptoNews #Binance https://t.co/V8dyDdD5A4 — Cryptonews.com (@cryptonews) November 23, 2023 In April 2025, several months after Donald Trump was inaugurated , Blanche ordered the unit disbanded, and his campaign included an insistence on backing the digital asset industry. The senators noted that Blanche disclosed crypto holdings valued between $158,000 and $470,000 in January 2025, largely in Bitcoin and Ethereum, just days before Trump’s inauguration. On Feb. 10, he agreed to divest those assets “as soon as practicable.” However, the lawmakers noted that Blanche was confirmed as deputy attorney general on March 5 and issued the sweeping policy memo on April 7 scaling back crypto enforcement. They added that he did not begin disposing of his crypto holdings until late May, with sales or transfers completed between May 31 and June 3. The senators reported in their letter that Blanche could have breached the 18 U.S.C. 208(a) provision that generally prohibits executive authorities of the executive branch officials from taking part in making decisions that influence their own financial gain. According to them, the issue is now under a complaint to the Office of the Inspector General of the DOJ, and they requested Blanche keep the documents and give a comprehensive account of how the issue was reported, responded to, and ultimately cleared by the ethics officials. Senators had earlier raised concerns over Blanche’s decisions The April 7 memo, titled “Ending Regulation by Prosecution,” marked a significant shift in how the Justice Department approaches digital assets. Blanche argued that the DOJ is not a financial regulator and said prior enforcement efforts amounted to “regulation by prosecution.” The new policy instructed the prosecutors to pursue individuals who directly victimize crypto investors or use digital assets in crimes (including terrorism, narcotics, organized crime, and human trafficking) and avoid pursuing cases involving exchanges, mixers, and other forums as their users may perpetrate crimes. The memo also instructed that investigations that were not in line with the new priorities be shut down and NCET be officially dissolved. Lawmakers said they warned Blanche last year that scaling back enforcement would have serious consequences. In their latest letter, they pointed to data showing illicit cryptocurrency activity surged in 2025, with TRM Labs estimating $158 billion in illegal transactions, up nearly 145% from the previous year. A new report by @trmlabs indicates that crypto-related crime reached $158 billion in 2025, while the proportion of illicit activity dropped to 1.2%. #Crime #CryptoHack https://t.co/70N8QeYDGu — Cryptonews.com (@cryptonews) January 28, 2026 They said the increase was driven in part by sanctioned entities but noted that most categories of crypto crime rose, including violent crime and human trafficking. Criminals stole an estimated $2.87 billion through nearly 150 hacks during the year. The post US Senators Slam DOJ Over Crypto Crime Unit Shutdown Amid Personal Holdings Conflict appeared first on Cryptonews .
Tesla announced Wednesday it plans to put $2 billion into xAI, the artificial intelligence company run by CEO Elon Musk, while telling investors that its much-talked-about Cybercab robotaxi remains set to begin production sometime in 2025. The double announcement backs up Musk’s bigger strategy to transform Tesla from a car company into an AI business. That shift matters a lot to the company’s current value of around $1.5 trillion. Meanwhile, keeping production promises matters just as much since Musk has let investors down before with forecasts that didn’t pan out. Heavy spending plans dampen initial stock gains But the push to build Cybercabs, humanoid robots, semi trucks and roadster sports cars means Tesla will need to spend big on factories. Chief Financial Officer Vaibhav Taneja said capital spending will top $20 billion this year. Tesla’s stock jumped about 3.5% after the news came out, but the gains shrank to 1.8% once investors heard the spending details. Thomas Monteiro, who analyzes stocks at Investing.com, said Tesla is now in a change period. The company wants investors to bet on future money from self-driving software and robotaxis before car sales pick back up. “That makes rollout metrics – not deliveries – the most important leading indicator from here,” Monteiro said. Musk told analysts he thinks fully self-driving cars will work in a quarter to half of the United States by the end of this year. He’s made wrong predictions about robotaxis before. The company now only runs a small robotaxi service in Austin, Texas. Tesla’s main car business, which still brings in most of the money, has hit some rough patches . Other companies keep launching newer cars, often for less money. A U.S. tax break for electric cars also ended, and Musk’s far-right political comments have turned off some buyers. On Wednesday, Musk told analysts Tesla will quit making its Model S sedans and Model X SUVs. These were the flagship cars that once made Tesla a big name in electric vehicles, but now they account for just a small slice of sales. The factory space will go toward making robots instead. Tesla’s total revenue dropped about 3% to roughly $94.83 billion in 2025. This marks the first time the company’s annual revenue has gone down. To keep sales going, Tesla has leaned hard on price cuts and deals. Wall Street thinks the company will deliver 1.77 million vehicles in 2026, an 8.2% jump, based on Visible Alpha data. Tesla did beat profit expectations in the fourth quarter. Adjusted earnings came to 50 cents per share, higher than the 45 cents Wall Street expected. Even with falling sales , the company did better on car profit margins than expected. The automotive gross margin without counting regulatory credits was 17.9%, up from 13.6% a year earlier. Energy storage emerges as bright spot amid AI push One part of the business doing really well is energy storage. People keep buying large batteries for power grids to support renewable energy and keep electricity stable. Revenue from energy generation and storage jumped 25.5% to a record $3.84 billion in the December quarter. Investors have been watching closely as Musk pushes into self-driving technology and robots. Many want proof that the autonomy plans are turning from talk into real products. “With Tesla’s legacy EV business slowing, Tesla investors can take part in the scorching hot AI boom,” said Andrew Rocco, a stock expert at Zacks Investment Research. However, Musk warned about a coming shortage of memory chips that could slow Tesla’s plans in the next few years . He suggested Tesla should think about building its own chip factory. “If we don’t do that, we’re just going to be fundamentally limited by supply chain,” he said. Investors also want to see signs that Full Self-Driving and robotaxis are moving forward, including news on getting past regulations and clearer timelines for the Cybercab, which doesn’t have a steering wheel or pedals. Cybercabs will join the robotaxi service that currently uses Model Y vehicles running Full Self-Driving software. Last week, Musk said early production of the Cybercab and the Optimus humanoid robot would be “agonizingly slow” before speeding up. On Wednesday, he said Tesla doesn’t expect major Optimus production until the end of 2026. Making the Cybercab also brings regulatory problems since federal rules currently require steering wheels and pedals. If you're reading this, you’re already ahead. Stay there with our newsletter .
The Optimism Collective approved a proposal directing 50% of Superchain revenue toward monthly OP token buybacks with 84.4% support. The 12-month program starting in February transforms OP from a pure governance token into one directly tied to sequencer revenue generated across Base , Unichain , Ink, World Chain, Soneium, and OP Mainnet. Based on the 5,868 ETH collected over the past twelve months, the initiative would deploy approximately 2.7k ETH, or roughly $8 million at current prices, into open-market purchases executed through an OTC provider. Purchased tokens flow back to the collective treasury, where they may eventually be burned, distributed as staking rewards, or deployed for ecosystem expansion as the platform evolves. Source: Optimism Revenue Mechanism Ties Token Demand to L2 Growth The Foundation will partner with an OTC provider to execute monthly ETH-to-OP conversions within predetermined windows, regardless of price, beginning with January’s revenue in February. According to the proposal , conversions pause if monthly revenue falls below $200,000 or if the OTC provider cannot execute under maximum allowable fee spreads, with any paused allocation rolling over to the following month. All trades will be reported publicly through Optimism’s stats dashboard or the governance forum for transparency, with the Foundation publishing an execution dashboard tracking fills, pacing, pricing, and balances. The remaining 50% of ETH revenue stays flexible for development, ecosystem growth, and shared infrastructure across the Superchain’s 30+ partners, reducing governance overhead that historically limited active treasury management. While the program starts small, it scales with Superchain expansion, where every transaction across participating chains expands the buyback base and creates structural demand for OP tokens. The mechanism operates on collected sequencer revenue from chains that contributed the full 5,868 ETH to a treasury managed by Optimism governance over the past year. Happy new year everyone! In November last year, I wrote about the changes we were making to refocus the team on what comes next for crypto. Today, the @Optimism Foundation is proposing a token buyback. The goal is to unify the broader ecosystem outside of just our internal… — Optimist Prime (@jinglejamOP) January 8, 2026 Foundation Sees Buybacks as First Step in Token Evolution Optimism Foundation Executive Director Bobby Dresser framed the approval as a turning point for the token’s economic role. “ Governance approval of the buyback proposal marks an exciting first step in expanding the role of the OP token, ” Dresser said. “ Optimism’s OP Stack is becoming the settlement layer for the next generation of financial systems, and this program will help align the OP token’s value with the success of the Superchain ecosystem. “ Speaking with Cryptonews, Dresser explained the strategic rationale behind the shift. “ The goal of this proposal is to align the OP token directly with the success of the Superchain, ” he said. “ Optimism earns real, growing revenue from Superchain usage, but historically, the OP token has only been used for governance. Buybacks create a direct link between Superchain demand and OP, making OP the shared instrument of the ecosystem. “ When asked what success looks like at the program’s conclusion, Dresser emphasized long-term infrastructure over short-term price action. “ Success to us means building an ecosystem that will last, which means putting the right infrastructure in place to create a new paradigm for Optimism and the OP token, ” he said. “ Ultimately, the governance community will decide if this should become a long-term mechanism. “ Implementation Begins Despite Governance Concerns The proposal faced initial scrutiny from delegates concerned about bundling buyback authorization with expanded Foundation treasury discretion into a single vote. GFXlabs urged splitting the two policy decisions, arguing that combining them prevented proper evaluation of each component and created risks that delegates might approve treasury management authority primarily because of expected price appreciation from buybacks. Delegates also raised concerns about the OTC execution strategy, with critics arguing that off-chain purchases lack transparency, create corruption risks, and signal that Optimism cannot support basic trading activity on its own DeFi infrastructure. Source: Optimism Governance Platform Some community members proposed that on-chain execution would better align with the network’s decentralized ethos and provide necessary transparency to prevent potential conflicts of interest. Despite these concerns, the proposal passed Special Voting Cycle #47 under Joint House approval at the required 60% threshold, clearing the way for immediate implementation. Initial operations will be executed by the Foundation under predetermined parameters, eliminating discretion, with the mechanism potentially moving increasingly on-chain through Protocol Upgrade 18, which ensures all sequencer revenue from OP Chains gets collected without Foundation involvement. Notably, the program comes as buyback mechanisms proliferate across crypto, though with mixed results. Jupiter recently questioned whether to continue its $70 million buyback program after JUP fell nearly 90% from early-2024 highs, while Helium halted HNT buybacks despite generating $3.4 million in monthly revenue, with both projects finding that supply dynamics consistently overwhelmed demand. The post Optimism DAO Passes OP Buyback Proposal With 84% Approval – What’s Next? appeared first on Cryptonews .
Bitcoin lags as global interest shifts towards gold and metals. The strong dollar and commodity surge influence cryptocurrency markets. Continue Reading: Cryptocurrencies Struggle as Metals and Dollar Dominate Markets The post Cryptocurrencies Struggle as Metals and Dollar Dominate Markets appeared first on COINTURK NEWS .