Crypto Borrowing Shifts as DeFi Contracts and CeFi Activity Rebounds: CryptoQuant

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Crypto borrowing activity is undergoing a huge shift as decentralized finance (DeFi) contracts sharply during this latest current market correction while centralized finance (CeFi) shows early signs of recovery. DeFi leverage is fading. AAVE borrowing is down ~70% since August as risk appetite fell with prices. But on @Nexo , borrowing rebounded +155% WoW during the drawdown. Users are choosing to borrow against collateral, not sell. pic.twitter.com/paqjLMeq5L — CryptoQuant.com (@cryptoquant_com) December 24, 2025 New research from CryptoQuant highlights how changing risk appetite and liquidity needs are reshaping borrowing behavior across the crypto ecosystem. DeFi Borrowing Contracts as Risk Appetite Fades According to CryptoQuant’s latest dashboard decentralized borrowing has fallen in line with declining crypto prices. Since August borrowing volumes on major DeFi protocols have dropped as traders reduce leverage and exposure. CryptoQuant reports on Aave which is one of the largest DeFi lending platforms, weekly borrowing of stablecoins USDT and USDC has fallen by 69%, declining from a peak of $6.2 billion to just $1.9 billion by the end of November. This contraction also closely mirrors the broader market downturn suggesting that users are actively unwinding leverage rather than deploying fresh capital. Despite the sharp pullback in new borrowing Aave still maintains $16.3 billion in outstanding loans, showing the scale of DeFi credit markets even during periods of stress. The decline in incremental borrowing points to a clear reduction in speculative risk-taking across decentralized markets, reports CryptoQuant. CeFi Borrowing Shows Early Signs of Rebound Centralized borrowing activity initially followed a similar downward trajectory during the market correction, but recent data suggest a divergence may be emerging. CryptoQuant also notes that CeFi platforms are beginning to see renewed borrowing demand even as prices continue to weaken. On Nexo weekly retail credit withdrawals dropped sharply from $34 million in mid-July to $8.8 million by mid-November. However, the following week saw a strong rebound to $23 million — a 155% week-on-week increase. This behavior also indicates that users may be increasingly opting to borrow against their crypto holdings rather than selling assets at depressed prices. The rebound suggests CeFi platforms are serving as a liquidity backstop during market drawdowns, allowing investors to access cash while maintaining long-term exposure to crypto. Centralized Lenders Play a Structural Role in Downturns CryptoQuant’s analysis highlights the structural importance of centralized lenders during periods of market stress. While DeFi borrowing tends to contract rapidly as leverage is reduced, CeFi platforms often absorb liquidity demand when investors seek flexibility and capital preservation. Nexo’s cumulative credit withdrawals reached $817 million in 2025, positioning it as one of the most active venues for crypto-backed lending this year. The latest data also suggests that centralized lenders complement DeFi markets by offering alternative borrowing channels with different risk profiles and user behavior. The post Crypto Borrowing Shifts as DeFi Contracts and CeFi Activity Rebounds: CryptoQuant appeared first on Cryptonews .

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CZ Pushes Crypto Industry to End Address Poisoning with Real-Time Blacklists, Highlighting Binance Wallet’s Malicious Address Warnings

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CZ Pushes Crypto Industry to End Address Poisoning with Real-Time Blacklists, Highlighting Binance Wallet’s Malicious Address Warnings

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Unlocking Europe: Sling Money’s Cryptocurrency Payment Service Secures Crucial UK License

  vor 3 Tagen

BitcoinWorld Unlocking Europe: Sling Money’s Cryptocurrency Payment Service Secures Crucial UK License In a significant move for digital asset adoption, the landscape for crypto payments in Europe just got brighter. Avian Labs, the innovative force behind the cryptocurrency payment service Sling Money, has successfully obtained a Virtual Asset Service Provider (VASP) license from the United Kingdom’s Financial Conduct Authority (FCA). This pivotal approval marks a major step in the company’s strategic expansion, following its recent license acquisition in the Netherlands. For users and businesses alike, this development signals a more accessible and regulated future for using digital currencies in everyday transactions. What Does This UK License Mean for Sling Money? The FCA’s authorization is not merely a formality; it’s a rigorous seal of approval. Obtaining a UK license allows Avian Labs to legally operate its cryptocurrency payment service for British customers. This includes facilitating crypto transfers, exchanges, and potentially broader payment solutions under the watchful eye of one of the world’s most respected financial regulators. The license demonstrates Avian Labs’ commitment to compliance, security, and building trust within a framework that protects consumers. This achievement is part of a clear pattern. Securing the UK license shortly after gaining Dutch regulatory approval shows a deliberate strategy to establish a compliant footprint across key European markets. Therefore, users can expect more seamless cross-border payment experiences powered by cryptocurrency. Why is Regulatory Compliance a Game-Changer for Crypto? For years, the crypto industry operated in a regulatory gray area, which deterred mainstream adoption. Services obtaining licenses like this one from the UK FCA help bridge that gap. Here’s how compliance benefits everyone: Enhanced User Trust: Operating under a recognized regulator means the service must adhere to strict anti-money laundering (AML) and know-your-customer (KYC) standards. Mainstream Accessibility: Regulatory clarity encourages more businesses and individuals to use crypto for payments without fear of legal ambiguity. Financial System Integration: Licensed services act as a crucial bridge between traditional finance and the digital asset ecosystem. Moreover, this move by Avian Labs places Sling Money alongside a growing cohort of fintech companies proving that innovation and regulation can coexist. It answers a critical question for the industry: can crypto businesses scale responsibly? The answer, increasingly, is yes. How Will Sling Money’s Expansion Impact European Crypto Users? With licenses now in both the UK and the Netherlands, Avian Labs is poised to significantly expand its cryptocurrency payment service reach. This expansion isn’t just about geography; it’s about scope and utility. Users in these regions may soon experience: Faster and cheaper cross-border transactions between the UK and EU. More merchant adoption, as businesses gain confidence in using a regulated payment rail. Potential new product features tailored to comply with and leverage European financial regulations. The broader implication is a more interconnected European market for digital assets. As compliant services like Sling Money grow, they create a network effect, making cryptocurrency a more practical tool for commerce and remittances across the continent. What Challenges Remain for Crypto Payment Services? Despite this progress, the path forward is not without hurdles. Regulatory frameworks differ across European nations, creating a complex patchwork for companies to navigate. Additionally, achieving widespread merchant adoption requires demonstrating clear advantages over existing payment systems in terms of cost, speed, and ease of use. However, each new license granted acts as a precedent, smoothing the way for other services and contributing to a more standardized regulatory environment. The success of early adopters like Avian Labs provides a blueprint for the entire sector. Conclusion: A Step Toward a Regulated Crypto Future Avian Labs securing a UK FCA license for its Sling Money platform is more than a corporate milestone. It is a tangible sign of the cryptocurrency market’s maturation. This development strengthens the infrastructure for legitimate cryptocurrency payment service options, moving digital assets closer to becoming a normalized part of the global financial toolkit. For investors, users, and observers, it underscores a powerful trend: the future of finance is being built on a foundation of both innovation and compliance. Frequently Asked Questions (FAQs) Q1: What exactly is Sling Money? A1: Sling Money is a cryptocurrency payment service operated by Avian Labs. It allows users to send, receive, and potentially pay with digital currencies. Q2: Why is the UK FCA license so important? A2: The FCA (Financial Conduct Authority) is a top-tier UK financial regulator. Its license permits Avian Labs to offer its services legally in the UK, ensuring they meet high standards for security, anti-money laundering, and consumer protection. Q3: Can I use Sling Money in the United States? A3: Based on the current announcement, the new licenses are for the UK and the Netherlands. Availability in the US would require separate regulatory approval from bodies like state regulators or the SEC. Q4: How does this benefit an average crypto user? A4: It leads to more trusted, secure, and widely available options for using cryptocurrency for real-world payments and transfers, especially within Europe. Q5: Does this mean cryptocurrency is now fully regulated? A5: Not fully, but it’s a major step. Regulation is evolving country by country. Licenses like this one show specific services are becoming regulated, which helps legitimize the overall ecosystem. Q6: What other regions might Sling Money expand to next? A6: While not confirmed, the company’s European focus suggests other EU nations with clear crypto regulations, such as Germany or France, could be logical next targets for expansion. Found this insight into the evolving world of regulated crypto payments valuable? Help others stay informed by sharing this article on your social media channels! To learn more about the latest trends in crypto regulation and adoption, explore our article on key developments shaping the future of institutional cryptocurrency integration. This post Unlocking Europe: Sling Money’s Cryptocurrency Payment Service Secures Crucial UK License first appeared on BitcoinWorld .

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SOL Whale Buys $27M Dip as Oversold RSI Signals Bullish Reversal

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A large Solana (SOL) holder accumulated a significant position during the recent market pullback, as technical indicators suggest selling pressure may be weakening. On December 24, on-chain data on Arkham analysed by Outset PR shows a whale address increased its holdings to more than 224,000 SOL, worth approximately $27 million, with purchases executed around the $121 price level. Another day of whale watching 🐋👀On Dec 24, a large holder accumulated 224K $SOL (~$27M) near $121 as price broke below $124 support. $SOL trades under key MAs, RSI sits near 37 (oversold), and MACD shows slowing downside momentum.Whale conviction meets potential rebound. pic.twitter.com/cKhFVn0Z6j — Outset PR (@OutsetPR) December 24, 2025 The accumulation comes as SOL trades below key technical support and remains under all major moving averages. SOL breaks key support as price trades below major averages SOL recently fell below the $124 support zone, a level that previously acted as short-term price support. Following the breakdown, the token is now trading beneath both its 30-day simple moving average (SMA) at $132.72 and its 200-day SMA at $174.5, reflecting a broader bearish structure. Trading below long-term and short-term averages typically indicates sustained downside pressure, especially when combined with declining momentum. However, such conditions can also precede relief rallies when selling becomes exhausted. Momentum remains weak, but downside pressure is slowing Momentum indicators continue to show weakness, though signs of stabilization are emerging. The Moving Average Convergence Divergence (MACD) remains in negative territory, with the MACD line at -4.69 slightly above the signal line at -4.88. While this still reflects bearish momentum, the narrowing gap suggests that downward pressure may be losing strength rather than accelerating. More notably, the Relative Strength Index (RSI) is hovering near 37, approaching the oversold threshold. Historically, RSI readings in this range often coincide with reduced selling intensity and can precede short-term rebounds, particularly when accompanied by large spot accumulation. Whale accumulation and the role of Outset PR’s data-driven approach Large-scale accumulation during periods of technical weakness is often interpreted as a sign of conviction at current price levels. Beyond its on-chain implications, such activity also plays a role in shaping how market narratives form across crypto media. According to industry observers, data-driven communication strategies increasingly focus on aligning coverage with verifiable market signals rather than speculative price predictions. Firms such as Outset PR , founded by PR strategist Mike Ermolaev, track both on-chain activity and media trendlines to determine when specific developments are most likely to resonate with audiences. By analyzing traffic distribution and publication timing through internal analytics systems, including tools designed to map syndication across aggregators like CoinMarketCap and Binance Square, data-led PR approaches aim to connect market events with measurable visibility. This methodology reflects a broader shift in crypto communications toward relevance and timing, rather than volume-based exposure. What to watch next For a sustained bullish reversal, SOL would need to reclaim the $124–$130 range and establish acceptance above short-term moving averages. Failure to do so could keep price action range-bound or expose the token to further downside. In the near term, traders will likely monitor whether RSI enters oversold territory and whether volume confirms any bounce attempt. Whale accumulation provides a supportive signal, but confirmation from price structure remains critical. As SOL continues to consolidate below resistance, the market faces a familiar question: whether current weakness marks continuation — or the early stage of a broader recovery. 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.

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Over 1,000 new ETFs hit US markets in $1.4 trillion record inflows in 2025

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ETF money flooded US markets in 2025 at a pace never seen before. With about a week left on the calendar, the numbers are already locked in. The $13 trillion ETF industry smashed records across flows, product launches, and trading activity. Inflows alone hit $1.4 trillion, beating last year’s all-time high. New funds crossed 1,000 launches. Trading volume also set a fresh peak. This run did not come quietly. The ETF world moved higher as US stocks kept grinding up. The S&P 500 logged a third straight year of double-digit gains. That happened even as the index chopped sideways from October. Markets dealt with doubts around massive AI spending plans and open questions on when the Federal Reserve cuts rates. Still, demand stayed strong, and ETF trading volume kept climbing into year-end. Stock gains and product launches drive historic growth US-listed funds pulled in cash at a speed that surprised even long-time watchers. ETF inflows broke last year’s record before December even ended. More than 1,000 products hit the market in a single year. That has never happened before. Bloomberg data shows the last time flows, launches, and volume all peaked together was 2021. The S&P 500 helped push the surge. The index gained for a third year in a row, even after slowing in recent months. Since October, the benchmark moved in a tight range. Investors stayed cautious as questions grew around AI spending by large tech firms and the future path of interest rates. Despite that, money kept moving into new and existing funds. History still hangs over the market. After the strong run in 2021, risk assets fell hard the next year. The S&P 500 dropped 19% in 2022. Government bonds did not protect investors as the Federal Reserve raised rates fast. During that stretch, trading volume stayed high, but flows and launches cooled as volatility hit portfolios. Some expect a repeat of that pattern. Bloomberg Intelligence senior analyst Eric Balchunas said, “We think there’s going to be some reality check next year. Because of how perfect the year seemed to be for ETFs, you kind of want to brace for it.” Crypto funds see outflows as markets eye year-end rally Cracks already showed up in crypto-linked products late in December. On December 23 ET, Bitcoin spot ETFs posted a net outflow of $189 million. That marked the fourth straight day of redemptions. BlackRock’s IBIT led the move, logging a single-day outflow of $157 million. Ethereum spot ETFs also slipped, with $95.52 million leaving the group. All nine products reported zero inflows that day. Even with those outflows, investors stayed focused on the final trading days of the year. Many watched for the Santa Claus rally, which runs from the last five trading sessions of December through the first two sessions of January. That window spans from December 24 to January 5 this year. LPL Financial data shows the S&P 500 averages a 1.3% gain during that stretch. Positive results happen 78% of the time. Outside that period, the index averages a 0.3% return over seven days, with gains showing up 58% of the time. Markets ended Tuesday on a firm note. The S&P 500 closed up about 0.5% at 6,909.79, setting a new record close. Futures later traded near flat. Dow futures slipped 25 points, or 0.05%. S&P 500 futures dipped 0.05%, while Nasdaq 100 futures stayed little changed. Tech stocks led the session, with Alphabet, Nvidia, Broadcom, and Amazon pushing indexes higher for a fourth straight day. If you're reading this, you’re already ahead. Stay there with our newsletter .

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Expert Reveals Where XRP’s Real Value Lies

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Market debates around digital assets often begin and end with price charts, but Versan Aljarrah of Black Swan Capitalist is urging XRP observers to look past short-term market fluctuations. In a recent post on X, Aljarrah framed XRP not as a speculative instrument to be judged solely by daily price action, but as a technology whose long-term worth lies in what it enables within global payment infrastructure. His remarks challenged readers to reconsider how value in the digital asset space should be measured and why patience remains central to the view. People obsess over price, but XRP’s value is in its utility. A higher price strengthens liquidity, efficiency, and adoption. Let the tech and leadership do the work, short-term noise doesn’t matter. — Black Swan Capitalist (@VersanAljarrah) December 21, 2025 Utility as the Core of Value Aljarrah argued that XRP’s importance is rooted in its role as a tool for liquidity and efficiency rather than in its immediate market valuation. He suggested that while a higher price can support stronger liquidity conditions and make large-scale transactions more effective, the price itself is not the primary driver of relevance. Instead, he pointed to the underlying technology and the direction set by leadership in the ecosystem as the factors that ultimately shape adoption. According to his perspective, as utility expands, improved liquidity follows, reinforcing XRP’s ability to function in real-world financial use cases. In this framework, short-term volatility becomes secondary, described as background noise when compared to the broader objective of building infrastructure that institutions and payment providers can rely on. The message was clear: sustainable growth comes from execution and real integration, not from reacting to every market trend. Community Responses and Ongoing Debate The post drew reactions from other users who engaged with the ideas while offering their own interpretations. One commenter acknowledged the strength of the technology behind XRP but cautioned that liquidity does not emerge automatically. From that perspective, price still plays a key role in how liquidity can be accessed and how attractive the asset becomes to market participants. The response reflected a more balanced stance, accepting the utility argument while emphasizing that market dynamics cannot be ignored. Another user took a more optimistic position, describing XRP as offering one of the strongest value propositions in the digital asset sector due to its overall utility. We are on X, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) June 15, 2025 That commenter expressed confidence that time would ultimately determine whether this belief holds and indicated a personal commitment to that outlook, even if regulatory clarity takes longer to arrive. The sentiment underscored a willingness among some supporters to wait for legal and policy developments while maintaining conviction in the asset’s long-term role. Together, these reactions highlighted how Aljarrah’s framing resonates with a segment of the community that prioritizes infrastructure and use cases, while also inviting scrutiny from those who see price and liquidity as inseparable elements. What remains central in his message is a call for perspective: that XRP’s trajectory should be judged by the progress of its technology and adoption rather than by short-term movements on a chart. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on X , Facebook , Telegram , and Google News The post Expert Reveals Where XRP’s Real Value Lies appeared first on Times Tabloid .

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Cango Receives Buy Rating, Upbeat on its Asset-light Mining Model and AI Potential

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BitcoinWorld Cango Receives Buy Rating, Upbeat on its Asset-light Mining Model and AI Potential DALLAS, Texas , Dec. 24, 2025 /PRNewswire/ — Greenridge Capital has initiated coverage on Cango Inc. (NYSE: CANG) (“Cango” or the “Company”) with a buy rating and US$4.00 target price, noting that Cango appears to be “mispriced and overlooked by the market given its market leading Bitcoin mining status and asset-light model for entry into the high-performance computing (HPC) market.” According to the Greenridge Capital report, Cango is trading below the value of its assets, which include liquid holdings in cash and over US$600 million in BTC held under a strict HODL strategy, a 50 EH/s globally distributed mining portfolio, and a 50MW data center in the U.S. state of Georgia (acquired in Q3 of 2025). The report also points out ongoing cost reduction measures, suggesting operational discipline, and Cango’s ability to capitalize on future opportunities with its strong financial position. Looking ahead, Cango’s strategy to diversify revenue and enhance profitability focuses on securing control over its own power supply, a key strategic step for future AI data center or Bitcoin mining operations. The report highlights Cango’s “Energy + HPC” plan, which targets expansion into flexible energy and data infrastructure projects with higher margin opportunities and cash generation potential. Supporting this expansion are two pilot projects already underway: a pilot solar generation and storage project in Oman and a 150MW power generation facility in Indonesia, which it is developing with a partner and could potentially be expanded to 300MW in future. Further updates from management are expected in coming months. Greenridge Capital’s US$4.00 price target is based on a blended valuation approach using two methodologies: (1) an EV/Adjusted EBITDA multiple of 7x applied to a 2026 adjusted EBITDA estimate of US$335.4 million, and (2) a P/E multiple of 15x applied to a 2026 diluted EPS estimate of US$0.34. Both multiples are conservative relative to industry peers. Notably, this valuation does not yet assign value to Cango’s developing energy infrastructure projects, which could unlock substantial value in the future as project milestones are achieved. About Cango Inc. Cango Inc. (NYSE: CANG) is primarily engaged in the Bitcoin mining business, with operations strategically deployed across North America, the Middle East, South America, and East Africa. The Company entered the crypto asset space in November 2024, driven by advancements in blockchain technology, the growing adoption of digital assets, and its commitment to diversifying its business portfolio. In parallel, Cango continues to operate an online international used car export business through AutoCango.com, making it easier for global customers to access high-quality vehicle inventory from China. For more information, please visit: www.cangoonline.com . Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the “Roadmap Forward” section and quotations from management in this announcement, contain forward-looking statements. Cango may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Cango’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Cango’s plan to terminate its ADR program and list its Class A ordinary shares directly on the NYSE and potential benefits from such change; Cango’s goal and strategies; Cango’s expansion plans; Cango’s future business development, financial condition and results of operations; Cango’s expectations regarding demand for, and market acceptance of, its solutions and services; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Cango’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Cango does not undertake any obligation to update any forward-looking statement, except as required under applicable law. Investor Relations Contact Juliet Ye, Head of Communications Cango Inc. Email: ir@cangoonline.com Christensen Advisory Tel: +852 2117 0861 Email: cango@christensencomms.com This post Cango Receives Buy Rating, Upbeat on its Asset-light Mining Model and AI Potential first appeared on BitcoinWorld .

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Bybit Ends Services for Japanese Residents, Implements Account Restrictions

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Bybit will discontinue its platform for Japan‑based users and enforce verification deadlines to meet local regulations. Bybit announced on 22 December 2025 that it will cease services for residents of Japan and gradually apply account restrictions starting in 2026. Users who receive a residency notice must complete Identity Verification Level 2 (proof of address/KYC 2) by 22 January 2026 to retain

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Alarming Plunge: How Blockchain Startups Market Cap Collapsed in the Liquidity Crunch

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BitcoinWorld Alarming Plunge: How Blockchain Startups Market Cap Collapsed in the Liquidity Crunch Imagine investing in what seemed like the next big thing, only to watch its value evaporate. This is the stark reality facing many blockchain startups today. Recent data reveals an alarming trend: once highly valued blockchain startups are seeing their market caps plunge dramatically. A liquidity crunch has exposed the fragile gap between venture capital hype and real-world market performance, leaving investors and founders grappling with a harsh new reality. What Caused the Blockchain Startups Market Cap Collapse? The numbers tell a sobering story. According to data from CryptoRank reported by Cointelegraph, several blockchain startups valued at over $1 billion by venture capital firms have experienced severe market cap declines. This isn’t just a minor correction; it’s a fundamental reassessment of value in a tightening market. The liquidity crunch has acted like a pressure test, revealing which projects have sustainable models versus those built on speculative hype. For example, Humanity Protocol (H) received a $1 billion valuation from venture capitalists. However, its current market cap sits at just $285 million. That represents a staggering 71.5% drop from its VC valuation. Similarly, Fuel Network (FUEL) was valued at nearly $1 billion but now trades with a market cap of only around $11 million. Even projects with smaller initial gaps haven’t been spared. Which Startups Suffered the Worst Market Cap Drops? Let’s examine specific cases to understand the severity of this trend. The disparity between venture capital valuations and actual market performance reveals much about current market conditions. Humanity Protocol (H) : VC valuation $1 billion → Current market cap $285 million Fuel Network (FUEL) : VC valuation ~$1 billion → Current market cap ~$11 million Plasma (XPL) : VC valuation $500 million → Current market cap $220 million These examples demonstrate that no project is immune. The liquidity crunch has affected blockchain startups across different sectors and with varying initial valuation gaps. The common thread is the dramatic compression between private funding rounds and public market performance. Is Venture Capital Still Investing in Blockchain Startups? The report adds crucial context about the broader investment landscape. Venture capital investment in the cryptocurrency sector has been sluggish throughout the second half of the year. While a few large deals have propped up total capital raised numbers, overall investment activity remains low. This creates a challenging environment for blockchain startups seeking funding. The combination of declining market caps and reduced venture capital interest creates a perfect storm. Startups must now demonstrate real utility and sustainable business models rather than relying on hype and speculation to attract investment. What Does This Mean for Future Blockchain Startup Valuations? The current situation suggests several important shifts in how we value blockchain projects. First, there’s likely to be increased scrutiny of venture capital valuations versus actual market performance. Second, liquidity will become a more important factor in investment decisions. Finally, projects with clear utility and revenue models may fare better than those built primarily on technological promises. This market correction, while painful for some, could ultimately strengthen the blockchain ecosystem. It separates serious projects from speculative ventures and encourages more sustainable growth strategies. The focus may shift from pure technological innovation to practical applications and user adoption. How Can Investors Navigate This Changing Landscape? For investors watching blockchain startups market cap fluctuations, several strategies emerge. First, pay closer attention to the gap between private valuations and public market performance. Second, consider liquidity as a key metric when evaluating investments. Third, look for projects with demonstrated user adoption and revenue generation rather than just technological promises. The current liquidity crunch serves as a reminder that all investments carry risk, especially in emerging sectors like blockchain. However, it also creates opportunities to identify fundamentally strong projects that may be undervalued in the current market sentiment. In conclusion, the alarming plunge in blockchain startups market cap reveals important truths about our current market environment. The liquidity crunch has exposed valuation gaps and prompted a necessary market correction. While challenging in the short term, this period of reassessment could lead to a healthier, more sustainable blockchain ecosystem. The projects that survive this pressure test will likely emerge stronger and better positioned for long-term success. Frequently Asked Questions What is causing the market cap plunge for blockchain startups? A liquidity crunch in the broader cryptocurrency market is exposing the gap between venture capital valuations and actual market performance. Reduced investment activity and changing market sentiment are contributing factors. How severe are the market cap declines? Some blockchain startups have seen declines of over 70% from their venture capital valuations. For example, Fuel Network dropped from nearly $1 billion valuation to approximately $11 million market cap. Is venture capital still investing in blockchain startups? While a few large deals continue, overall venture capital investment in the cryptocurrency sector has been sluggish in the second half of the year, with reduced activity across the board. Will this affect all blockchain startups equally? No, projects with stronger fundamentals, clearer utility, and sustainable business models are likely to weather this period better than those built primarily on hype and speculation. What should investors look for during this period? Investors should pay closer attention to the gap between private valuations and public market performance, consider liquidity as a key metric, and focus on projects with demonstrated user adoption. Is this market correction ultimately positive for the blockchain ecosystem? While painful in the short term, this correction could strengthen the ecosystem by separating serious projects from speculative ventures and encouraging more sustainable growth strategies. Found this analysis of the blockchain startups market cap situation helpful? Share this article with fellow investors and crypto enthusiasts on your social media channels to continue the conversation about navigating these challenging market conditions. To learn more about the latest cryptocurrency market trends, explore our article on key developments shaping blockchain startup valuations and institutional adoption. This post Alarming Plunge: How Blockchain Startups Market Cap Collapsed in the Liquidity Crunch first appeared on BitcoinWorld .

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Shiba Inu End Of Year Predictions Remain Bearish, High Volatility Expected

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The Shiba Inu price action over the last few months has been incredibly bearish, especially as attention begins to shift away from meme coins. The current trend suggests that investors are leaning more toward selling as the altcoin’s price is now almost 92% below its 2021 all-time high. Even as the year draws to a close, the prognosis for the meme coin has not changed, with a machine learning algorithm predicting that the SHIB price will continue to fall. Expect The Shiba Inu Downtrend Into The New Year Shiba Inu is already down by more than 14% this month, and it looks like the decline is far from over. The algorithm at the CoinCodex website has predicted that the meme coin will see further decline into the end of the year, amplifying the already brutal losses . The 5-day prediction puts the Shiba Inu price somewhere around $0.000007038, pushing its monthly losses toward 20%. This comes as the sentiment around the Shiba Inu altcoin hovers in Extreme Fear, meaning investors are still scared to put money into the digital asset. In addition to the downtrend, volatility is also expected to spike during this time. The website rates it at 5.62%, which is a high percentage, putting investors in Shiba Inu at a higher risk of losing their money. Thus, it might be better to wait for the downtrend to play out before getting into the cryptocurrency. Over the medium to longer term, though, the expectations begin to lean toward the bullish end . The 1-month prediction expects a 15.89% surge to push the price above $0.000008. Then, the 3-month prediction also expects that Shiba Inu will continue to trend above $0.000008. Why SHIB Decline Could Continue In January While January has usually been a bullish month for the likes of Bitcoin, Shiba Inu has usually gone in a much different direction . In the last four years, the meme coin has only closed the month of January in the green one time. This also coincides with its performance from December, usually ending in the red and carrying over into the new year. If this trend holds, then it is likely that the Shiba Inu price will see another double-digit decline in January 2026. Usually, it is by the month of February that the SHIB price begins to pick up, making it one of its most bullish months since the meme coin first launched back in 2020, as shown by data from CryptoRank.

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