Bitcoin gains, is still 'signficantly undervalued,' Bitwise says. 'Extreme fear' dominates.
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Your day-ahead look for Feb. 20, 2026
Bitcoin Price Analysis: The Critical $72K Breakout Needed for a Bullish Reversal
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BitcoinWorld Bitcoin Price Analysis: The Critical $72K Breakout Needed for a Bullish Reversal In the dynamic world of cryptocurrency markets, Bitcoin (BTC) currently faces a decisive technical juncture. Following a recent low near $65,600, the premier digital asset shows tentative recovery signs. However, a comprehensive analysis by CoinDesk, published on May 22, 2025, underscores a critical condition: Bitcoin must achieve a decisive break above the $72,000 resistance level to signal a genuine bullish trend reversal. This threshold represents more than just a price point; it is a key indicator of shifting market structure and trader sentiment. Bitcoin Price Analysis: Decoding the $72,000 Resistance Level Technical analysts closely monitor patterns to gauge market direction. Currently, Bitcoin’s price action exhibits a concerning structure of lower highs and lower lows . This pattern typically suggests sustained selling pressure or a lack of bullish conviction. Consequently, a clean and sustained move above $72,000 is essential. Such a breakout would invalidate the current bearish structure and potentially establish a new foundation for upward momentum. Market participants globally watch this level, as a failure to reclaim it could prolong consolidation or invite further downside tests. The $72,000 zone previously acted as both support and resistance, amplifying its psychological and technical significance for traders and long-term investors alike. Derivatives Data Signals a Potential Market Bottom Beyond spot price movements, derivatives markets provide crucial insights into trader positioning and market health. CoinDesk’s report highlights several stabilizing metrics. Firstly, the total open interest in Bitcoin futures has rebuilt to approximately $15.8 billion. This metric represents the total value of outstanding derivative contracts. Its recovery suggests that capital is gradually returning to the market after a period of deleveraging, where traders exited leveraged positions. This rebuilding phase often precedes or coincides with a market bottom, indicating reduced panic and more calculated positioning. Options Market Sentiment: The put-to-call ratio, a gauge of bearish (put) versus bullish (call) bets, stands at a near-equilibrium 49:51. The slight tilt toward call options indicates a marginal bias for price increases among options traders. Reduced Futures Liquidations: The volume of forced liquidations in futures markets has decreased significantly. This decline points to less extreme volatility and a reduction in over-leveraged positions, creating a more stable foundation for price discovery. Contextualizing the Current Market Phase Understanding this analysis requires context from recent months. The cryptocurrency market experienced significant volatility following the 2024 Bitcoin halving event and evolving macroeconomic conditions, including interest rate policies. The drawdown to the $65,600 level represented a test of a major support zone. Historical data shows that similar periods of deleveraging and open interest contraction have often resolved in strong trend reversals, provided key resistance levels are breached. Analysts from firms like Glassnode and CryptoQuant have previously noted that sustained periods of low futures liquidations often correlate with the end of corrective phases, setting the stage for the next directional move. The Path Forward: Technicals and Fundamentals For a valid bullish reversal, price action must be supported by volume. A breakout above $72,000 on high trading volume would carry far more conviction than a low-volume spike. Furthermore, on-chain metrics such as exchange net flows and the behavior of long-term holders provide additional confirmation. A decisive breakout could trigger a short squeeze, where traders betting against Bitcoin are forced to buy back, accelerating upward momentum. Conversely, rejection at this level would reinforce the current downtrend structure, potentially leading to a retest of lower supports. The interplay between technical levels and derivative market metrics creates a complex but readable map for informed market participants. Conclusion Current Bitcoin price analysis presents a clear narrative. While stabilization is underway, the definitive signal for a bullish reversal hinges on conquering the $72,000 threshold. The accompanying stabilization in derivatives metrics—including recovering open interest, a balanced options skew, and reduced liquidations—suggests the market is maturing past its recent corrective phase. Investors and traders should monitor the $72,000 level closely, as its breach or rejection will likely dictate Bitcoin’s medium-term trajectory. As always, comprehensive analysis combining technicals, on-chain data, and macro context remains paramount in navigating the cryptocurrency landscape. FAQs Q1: What does a “decisive break above $72,000” mean? A decisive break typically means Bitcoin closes several 4-hour or daily candles above $72,000 with significant trading volume, confirming the move is not a temporary spike. Q2: Why is the $72,000 level so important for Bitcoin? This level has acted as major support and resistance historically. A breakout would break the current pattern of lower highs, signaling a potential shift in market structure from bearish to bullish. Q3: What is open interest, and why does its recovery matter? Open interest is the total number of outstanding derivative contracts. Its recovery to $15.8 billion suggests traders are re-entering the market with new positions, indicating returning confidence and capital. Q4: How does the put-to-call ratio indicate market sentiment? A ratio of 49:51, with calls slightly dominating, shows options traders have a marginal bias toward expecting price increases in the future, which can be a cautiously optimistic signal. Q5: What could happen if Bitcoin fails to break $72,000? Failure to break and hold above $72,000 could reinforce the current downtrend, leading to further consolidation or a retest of lower support levels around $65,000 or below. This post Bitcoin Price Analysis: The Critical $72K Breakout Needed for a Bullish Reversal first appeared on BitcoinWorld .
Pundit Presents List of Banks Partnered With Ripple and Ready to Use XRP
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Institutional adoption remains the backbone of Ripple’s long-term strategy , and every market cycle revives the same question: how deeply has Ripple penetrated the global banking system? As crypto markets regain strength and regulatory uncertainty fades, attention has shifted back to Ripple’s enterprise relationships and whether those partnerships translate into direct XRP usage. Crypto commentator XRP Avengers recently reignited that conversation by publishing an expansive list of banks and financial institutions he says are partnered with Ripple and ready to use XRP. His post quickly gained traction within the XRP community, especially as institutional narratives regain momentum following the formal conclusion of Ripple’s multi-year legal battle with U.S. regulators in 2025. THESE ARE ALL THE BANKS PARTNERED WITH RIPPLE AND READY TO USE #XRP : Banco Santander Bank Of Indonesia Bank Of Thailand Moneygram Cambridge Global Holdings SBI Holdings BBVA Banco Bilbao Vizcaya Argentaria SCB Siam Commercial Bank Zip Remit InstaRem IndusInd Itau Unibanco… pic.twitter.com/ZiXqLutHxH — XRP Avengers (@XRP_Avengers) February 19, 2026 Ripple’s Expanding Global Network Ripple has spent more than a decade building RippleNet, a global payments network designed to modernize cross-border transactions. Through RippleNet, financial institutions can access faster settlement, standardized messaging, and liquidity solutions. Major banks such as Banco Santander, Standard Chartered Bank , SBI Holdings, American Express, and Bank of America have publicly confirmed collaborations with Ripple on cross-border payment initiatives. In Asia, institutions including MUFG, Mizuho Financial Group, DBS Bank, and OCBC Bank have also participated in Ripple-related programs. These partnerships demonstrate Ripple’s significant institutional footprint across Europe, North America, the Middle East, and Asia-Pacific. RippleNet vs. XRP Usage Investors often conflate Ripple partnerships with direct XRP adoption, but the distinction matters . RippleNet provides infrastructure for messaging and settlement regardless of whether institutions use XRP. XRP becomes central when institutions adopt Ripple’s On-Demand Liquidity solution, which uses XRP as a bridge asset to eliminate pre-funded nostro accounts. We are on X, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) June 15, 2025 Companies such as MoneyGram previously utilized this liquidity model before regulatory uncertainty disrupted the partnership. Meanwhile, several Asia-Pacific corridors continue to leverage XRP for cross-border flows, particularly where liquidity optimization offers measurable cost savings. Not every institution listed by XRP Avengers has publicly confirmed active XRP deployment. Some have piloted Ripple technology, others have integrated software solutions, and a smaller subset has implemented XRP-based liquidity. Why the Distinction Matters Now The renewed spotlight reflects a broader market shift. With Ripple’s legal overhang resolved and clearer regulatory frameworks emerging in multiple jurisdictions, investors now reassess XRP’s institutional value proposition. Markets no longer focus solely on speculation; they examine infrastructure, adoption, and real-world utility. Ripple maintains one of the largest enterprise networks in the blockchain sector, and that network forms a critical pillar of XRP’s long-term thesis. However, verified adoption data carries more weight than viral lists. As institutional blockchain integration accelerates globally, the next phase will not hinge on announcements alone. It will hinge on measurable XRP usage within active payment corridors. 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 urged to do in-depth 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 Twitter , Facebook , Telegram , and Google News The post Pundit Presents List of Banks Partnered With Ripple and Ready to Use XRP appeared first on Times Tabloid .
EUR/USD Reversal: January’s Surprising Rally Unravels Amid Mounting ECB Risks
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BitcoinWorld EUR/USD Reversal: January’s Surprising Rally Unravels Amid Mounting ECB Risks LONDON, January 2025 – The EUR/USD currency pair’s strong January rally has abruptly reversed course, according to fresh analysis from Mitsubishi UFJ Financial Group (MUFG). Market participants now confront a shifting landscape where earlier optimism about the Eurozone is colliding with renewed concerns surrounding European Central Bank (ECB) policy risks. Consequently, the euro has surrendered significant ground against the US dollar this week, erasing nearly half of its monthly gains. This development signals a pivotal moment for forex traders and global investors who had bet on continued European currency strength. EUR/USD January Rally Faces ECB Pressure The euro’s ascent against the dollar in early January appeared robust and well-founded. Initially, traders reacted to perceived dovish signals from the Federal Reserve and encouraging Eurozone economic data. However, the rally’s foundation began to show cracks as ECB governing council members delivered a series of unexpectedly hawkish communications. Specifically, commentary focused on persistent core inflation and the challenges of a tight labor market. These statements forced a rapid recalibration of interest rate expectations across financial markets. Market pricing for ECB rate cuts in the first half of 2025 subsequently plummeted, removing a key pillar of support for the euro’s valuation. MUFG currency strategists highlighted this shift in a recent client note. They pointed to the stark divergence between market expectations and the ECB’s communicated data dependency. “The market got ahead of itself pricing in aggressive easing,” the note stated. “The ECB is clearly signaling that the last mile of inflation control is the most difficult, and policy will remain restrictive until they are certain of victory.” This recalibration has directly impacted the EUR/USD pair’s momentum. The table below illustrates the rapid change in key market indicators over the past week: Indicator Start of January Current Level Change EUR/USD Spot Rate 1.1050 1.0875 -1.58% Market-Implied ECB Cut (Mar 2025) 25 bps 10 bps -15 bps 2-Year DE-US Yield Spread -180 bps -165 bps +15 bps Analyzing the Core ECB Risks Several interconnected risks emanating from Frankfurt now weigh heavily on the common currency. First, the threat of policy error looms large. The ECB must navigate a narrow path between stifling a fragile economic recovery and allowing inflation to become entrenched. Second, geopolitical fragmentation within the Governing Council presents a communication challenge. Divergent economic conditions across member states complicate consensus on a single policy path. Third, the bank’s balance sheet reduction, or quantitative tightening, continues to drain liquidity from the financial system. This process introduces an element of market volatility that can amplify currency moves. Furthermore, recent data adds complexity to the ECB’s mandate. While headline inflation has cooled, services inflation and wage growth remain stubbornly high. The latest Eurostat flash estimate showed services inflation holding at 4.0% year-on-year. This stickiness suggests underlying price pressures are more persistent than headline figures indicate. Simultaneously, PMI data points to continued contraction in the manufacturing sector, highlighting the growth side of the ECB’s dilemma. Analysts refer to this environment as a ‘high-for-longer’ rate scenario, which typically supports a currency but also raises recession risks that ultimately undermine it. MUFG’s Expert Perspective on Forex Dynamics MUFG’s analysis provides critical context for this reversal. Their research team emphasizes that currency markets are forward-looking discounting mechanisms. The January rally, they argue, priced in an ideal scenario of a ‘soft landing’ for the Eurozone with timely ECB rate cuts. Recent communications have shattered that narrative. “The market is now pricing a higher probability of a policy mistake—either cutting too late and deepening a recession, or cutting too early and triggering a second inflation wave,” explained a senior MUFG forex strategist. This uncertainty premium is inherently negative for the euro, as capital seeks the relative safety and clarity of other markets. The strategist further detailed the technical damage done to the EUR/USD chart. The pair failed to sustain a break above the key 1.1100 psychological level, triggering a wave of stop-loss orders and algorithmic selling. This technical breakdown then fueled a fundamental reassessment, creating a self-reinforcing downward spiral. Key support levels at 1.0950 and 1.0850 were breached in quick succession, confirming the shift in market sentiment from bullish to cautiously bearish in the short term. Comparative Global Central Bank Outlook The EUR/USD move cannot be viewed in isolation. Its trajectory is a function of the relative monetary policy stance between the ECB and the Federal Reserve. While ECB risks have moved to the forefront, the Federal Reserve’s own communications remain pivotal. Recent US data on non-farm payrolls and consumer prices suggest the Fed, too, may delay its easing cycle. This creates a scenario where both central banks are extending restrictive policies, but the perceived risks are currently higher in Europe. The resulting dynamics keep the US dollar bid as a global reserve currency, especially during periods of policy uncertainty elsewhere. Other major banks have echoed aspects of MUFG’s caution. For instance, analysts at Goldman Sachs recently revised their EUR/USD forecast lower, citing “asymmetric risks” for the ECB. They noted that the Eurozone economy has less fiscal buffer than the US to withstand prolonged high rates. Meanwhile, the Bank of Japan’s tentative steps away from ultra-loose policy add another layer to global forex volatility, potentially diverting some investment flows away from European assets. The interplay between these major central banks will define forex trends throughout 2025. Conclusion The EUR/USD pair’s reversal underscores the fragile nature of currency rallies in a data-dependent monetary policy world. The January rally unwound decisively as markets priced in heightened ECB risks , including policy error and persistent inflation. MUFG’s analysis provides a crucial framework for understanding this shift, highlighting the clash between market expectations and central bank guidance. Going forward, traders will scrutinize every ECB speech and Eurozone data release for clues on the timing and pace of any policy shift. The path for the euro remains fraught with uncertainty, suggesting volatility will persist as the central bank navigates its complex dual mandate. FAQs Q1: What caused the EUR/USD January rally to reverse? The reversal was primarily triggered by a shift in European Central Bank communication. Hawkish comments from ECB officials led markets to scale back expectations for early 2025 interest rate cuts, removing a key support for the euro. Q2: What are the main ‘ECB risks’ mentioned by MUFG? The main risks include the potential for a monetary policy error (cutting rates too early or too late), internal divisions within the Governing Council, and the market volatility associated with ongoing balance sheet reduction (quantitative tightening). Q3: How does US Federal Reserve policy affect the EUR/USD pair? EUR/USD is a relative price. Its movement depends on the difference between ECB and Fed policy expectations. If the Fed is also seen delaying rate cuts, it can limit the dollar’s downside, but currently, the perceived risks are greater for the ECB, favoring the dollar. Q4: What key economic data are traders watching now? Traders are closely monitoring Eurozone services inflation, wage growth agreements, and GDP growth figures. Any signs of entrenched inflation will delay ECB cuts, while weak growth data will increase recession fears. Q5: What is the technical outlook for EUR/USD after this reversal? Technically, the failure at 1.1100 and break below 1.0950 support has turned the short-term trend bearish. Analysts now watch the 1.0800 level as the next major support. A break below could open the path toward 1.0700. This post EUR/USD Reversal: January’s Surprising Rally Unravels Amid Mounting ECB Risks first appeared on BitcoinWorld .
Change Of Heart? Hacker Returns $21M Stolen Bitcoin To South Korean Prosecutors
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A hacker has returned 320 Bitcoin (BTC) stolen from South Korean prosecutors throughout a phishing scam last year. As authorities face backlash over repeated incidents, officers have pledged to continue the investigation to uncover the full details and strengthen their custody practices. Stolen Bitcoin Returned To Gwangju Prosecutors On Thursday, the Gwangju District Prosecutors’ Office announced it recovered 320.8 Bitcoin lost in August to a phishing attack after the malicious actors willingly sent back the assets earlier this week. Local news outlet Digital Asset reported on Tuesday that the on-chain data showed the lost BTC, worth $21 million, had been transferred to a wallet managed by South Korean authorities. The assets were seemingly moved through multiple addresses before being transferred to a domestic crypto exchange wallet. As reported by Bitcoinist, South Korean prosecutors faced backlash last month after discovering that a large stash of seized BTC had gone missing months ago. Authorities reportedly learnt of the loss during a routine check of seized financial assets held as criminal evidence. After an internal review, prosecutors found that the crypto assets were lost to a scam in August during the handling of the sized assets. Reportedly, malicious actors drained the wallets after investigators mistakenly accessed a phishing website. Notably, the lost Bitcoin was originally seized during a 2021 investigation into an illegal gambling website. Prosecutors launched an investigation after discovering the incident. They also took measures to recover the assets, including blocking transactions from the perpetrator’s address to domestic exchanges and sending cooperation requests to overseas exchanges. According to the report, authorities believe that these measures exerted pressure on the hackers, ultimately pushing them to return the funds. Meanwhile, prosecutors are currently continuing to track down the malicious actors while also conducting related investigations and inspections. “(Regardless of the recovery of the Bitcoin), we will do our utmost to apprehend the perpetrators in the future,” The Gwangju District Prosecutors’ Office stated. “We plan to continue conducting a rigorous investigation to clearly uncover the full details of the case.” Authorities Slammed Over Repeated Incidents The Gwangju incident has led to a nationwide review of law enforcement’s handling of virtual assets. The review has revealed another security breach at the Seoul Gangnam Police Station. Last Friday, the Gangnam station announced it had lost 22 BTC that were voluntarily submitted to authorities during an investigation in November 2021. According to local reports, the leak had not been detected until now, since the investigation into that case had been suspended. The inspection revealed that the cold wallet storing the Bitcoin was not stolen, but the assets stored inside “had vanished without a trace.” As a response, the Gyeonggi Northern Provincial Police Agency launched a full-scale internal investigation to determine the details of the leak and whether any internal personnel were involved. The incidents have raised concerns about South Korea’s Bitcoin custody practices, just as the country prepares for the Second Phase of the Virtual Asset User Protection Act, which is expected to serve as a comprehensive framework for the entire industry. Financial authorities are also conducting an inspection of local exchanges’ internal controls following the “ghost Bitcoin” incident at Bithumb. Earlier this month, the crypto exchange accidentally distributed 620,000 BTC, worth over $40 billion, to 249 users due to an employee’s mistake. Bithumb’s system failed to block the transaction and distributed assets that did not actually exist, distorting market prices. Lawmakers highlighted that the incident exposed “structural vulnerabilities” in the sector that must be addressed in the upcoming legislation. The Financial Services Commission (FSC) announced last month that it is studying a proposal for prosecution measures against suspects of crypto asset price manipulation. Some officials argue it’s necessary “to complement the current Virtual Asset User Protection Act by implementing measures for the confiscation of criminal proceeds or the preservation of recovery funds in advance.”
Altcoin Liquidity Crunch: 83% Of Crypto Tokens Slip Into Bear Trend
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Altcoin breadth on Binance has deteriorated sharply, with a large majority of tokens now trading below a widely watched long-term trend level, an exhaustion signal that CryptoQuant contributor Darkfost frames as a liquidity problem as much as a price problem. In a post on X, Darkfost (@Darkfost_Coc) shared a CryptoQuant chart tracking the share of Binance-listed altcoins trading below their 50-week moving average alongside Bitcoin’s price. His headline claim: “LIQUIDITY CRUNCH PUSHES 83% OF ALTCOINS INTO BEAR TREND,” arguing that most investors exposed to non-Bitcoin, non-stablecoin assets are “now in significant difficulty,” particularly those still holding positions. Altcoin Breadth Breaks Down On Binance Darkfost’s chart, titled “Altcoins performance (Binance)”, shows the percentage of altcoins below the 50-week moving average rising back into historically stressed territory. In his latest read, 83% of Binance altcoins are below that threshold, a sign that weakness is not isolated to a handful of names but spread across the tape. He also pointed to an even more extreme episode earlier this month. “Since the end of the bear market in 2023, a new record was set on February 7, with more than 92% of altcoins on Binance trading below this key technical support,” he wrote, describing it as a post-2023-cycle high in downside participation. Related Reading: House Democrats Urge Treasury Probe Into Trump Family’s Crypto Venture That stands in stark contrast to the conditions seen during earlier upside phases. Darkfost noted that in March 2024 only 6% of Binance altcoins traded below the 50-week line, and in December 2024 the figure was 7%. Outside of those multi-month windows, he added, at least half of altcoins remained under the threshold, behavior he characterized as meaningfully different from the prior cycle’s breadth dynamics. Darkfost framed the altcoin drawdown as inseparable from Bitcoin’s trend and the macro backdrop, suggesting that the market’s risk budget has tightened while altcoin supply has expanded. Related Reading: House Democrats Urge Treasury Probe Into Trump Family’s Crypto Venture “The market continues to be driven by BTC’s movements, which has been in a downtrend since October 2025 following an ATH at $126,000. At present, BTC’s momentum remains highly uncertain, with price still hovering at roughly 46% of its all time high. Rising geopolitical tensions, particularly between the US and Iran, alongside increasingly hawkish projections and tone from the Fed expressed in the latest FOMC minutes, are making the current environment especially challenging for highly volatile assets such as altcoins,” he wrote. The chart itself marks BTC near the mid-$60,000 range, underscoring his broader point: in a regime where Bitcoin direction is unclear and macro inputs are hostile to duration and volatility, breadth in higher-beta tokens can deteriorate quickly and then stay impaired. Why The 50-Week Line Matters Darkfost emphasized the 50-week moving average as a long-horizon filter used by market participants to separate corrective phases from structurally constructive ones. When a majority of tokens sit below it, rallies tend to be narrower, selection pressure rises, and “alt season” narratives become harder to sustain without a decisive shift in liquidity conditions. He attributed the current setup to “the increase in altcoin supply across the broader crypto market combined with still constrained liquidity conditions,” a combination that can mechanically dilute marginal flows. In that environment, he argued, outperforming becomes less about broad beta exposure and more about understanding how market structure has changed. At press time, the total crypto market cap excluding Bitcoin stood at $943.46 billion. Featured image created with DALL.E, chart from TradingView.com
Ethereum Fees Plunge a Staggering 70% as DeFi Activity Slows, Sparking Market Concern
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BitcoinWorld Ethereum Fees Plunge a Staggering 70% as DeFi Activity Slows, Sparking Market Concern In a dramatic shift for the world’s leading smart contract platform, Ethereum weekly fees have plunged a staggering 70.3%, plummeting to just $2.12 million and signaling a pronounced slowdown across the decentralized finance (DeFi) ecosystem. This sharp decline, reported by analytics firm Sentora, coincides with a concerning $1.1 billion net inflow of ETH to centralized exchanges, a movement that often precedes selling pressure. Consequently, these intertwined metrics are painting a complex picture of network health and investor sentiment as we move through 2025. Ethereum Fees Experience a Historic Weekly Plunge Data from the newly rebranded analytics firm Sentora, formerly known as IntoTheBlock, reveals a precipitous drop in total weekly fees on the Ethereum network. Specifically, fees fell by over 70% week-on-week, landing at approximately $2.12 million. This figure represents one of the most significant single-week declines in recent years. Network fees, paid by users in the form of gas to execute transactions and smart contracts, serve as a direct barometer of on-chain demand. Therefore, such a steep drop provides a clear, quantitative signal of reduced activity. Historically, Ethereum fee revenue has experienced volatile cycles closely tied to market sentiment and technological upgrades. For instance, the period following the Merge to Proof-of-Stake saw reduced issuance but did not immediately lower fees. Subsequently, the full implementation of proto-danksharding in 2024 provided substantial scalability relief. However, the current fee plunge suggests a demand-side contraction rather than a supply-side improvement. Analysts are now scrutinizing whether this indicates a temporary lull or the beginning of a more sustained downturn in network utilization. DeFi Slowdown Drives the Fee Collapse Sentora’s analysis directly attributes the sharp fee decline to a measurable slowdown in DeFi activity. Decentralized finance protocols, which encompass lending, borrowing, trading, and yield farming, traditionally generate the bulk of Ethereum’s transactional demand. When users interact less with platforms like Uniswap, Aave, or Compound, the competition for block space diminishes, leading to lower gas prices and, consequently, lower total fees. This relationship is fundamental to understanding Ethereum’s economic model. Several key metrics illustrate this DeFi cooldown: Total Value Locked (TVL): Aggregate TVL across Ethereum DeFi has shown stagnation or slight decline. Daily Active Users (DAUs): User engagement on major DeFi dApps has tapered off from previous highs. Transaction Volume: Trading volume on decentralized exchanges (DEXs) has receded significantly. This slowdown is not occurring in isolation. Broader macroeconomic factors, including potential regulatory scrutiny and shifting investor risk appetite, often influence capital flows into and out of speculative crypto assets. Furthermore, the maturation of Layer 2 scaling solutions like Arbitrum and Optimism has successfully offloaded a portion of activity, but the current fee drop on the mainnet indicates a reduction in aggregate demand across all layers. Expert Analysis on Network Health Blockchain economists point to fee revenue as a critical health indicator for proof-of-work and proof-of-stake networks alike. “While low fees are beneficial for user experience, an abrupt collapse in fee revenue can signal weakening fundamental demand for block space,” notes a researcher from a major crypto analytics firm. “The key is to differentiate between scalability-driven fee reduction and demand-driven fee reduction. Current data strongly suggests the latter.” This perspective underscores the importance of contextualizing the 70% plunge beyond surface-level user benefits. Concurrent $1.1 Billion ETH Exchange Inflow Raises Alarms Compounding the narrative of the fee plunge is a substantial movement of ETH tokens. This same week witnessed a net inflow of roughly $1.1 billion worth of Ethereum into major centralized exchanges (CEXs) like Coinbase and Binance. On-chain analysts treat such movements as a critical sentiment indicator. Typically, investors transfer assets from private wallets to exchange-hosted wallets with the intent to sell or trade. Consequently, large inflows are widely interpreted as a bearish signal, suggesting increased selling pressure may be imminent. The table below contrasts recent weekly metrics: Metric Previous Week Current Week Change Weekly Network Fees ~$7.15M ~$2.12M -70.3% ETH Net Exchange Flow Variable +$1.1B (Inflow) Significant Inflow Avg. Gas Price (Gwei) Elevated Multi-month lows Sharp Decline This combination of low fees and high exchange inflows creates a paradox. On one hand, low congestion suggests a lack of urgent transactional demand. On the other hand, the movement of assets to exchanges indicates a segment of the holder base is preparing for action, likely liquidation. This dynamic often creates a tense equilibrium in the market, where price can be susceptible to sudden moves based on order book dynamics on these centralized platforms. The Impact on Validators and Network Security For Ethereum validators, fee revenue constitutes a vital component of their total rewards, supplementing the base issuance of new ETH. A prolonged period of depressed fees could impact the net annual percentage yield (APY) for stakers. While the network’s security is not immediately threatened by a weekly drop, a persistent trend could influence the economic calculus for existing and prospective validators. However, the current staking participation rate remains high, suggesting long-term confidence in the protocol’s roadmap outweighs short-term fee volatility. Historical Context and Future Trajectory The current situation echoes previous crypto market cycles where periods of frenzied activity and high fees were followed by prolonged ‘crypto winters’ characterized by low engagement. However, the present ecosystem is fundamentally different, with institutional involvement, mature derivatives markets, and established regulatory frameworks. The fee plunge may also reflect a natural consolidation after a period of innovation, as developers build on newly implemented scalability features and users await the next wave of compelling applications. Looking ahead, market participants will monitor several signals. A resurgence in fee revenue would indicate returning DeFi or novel on-chain activity, perhaps driven by new token launches or NFT trends. Conversely, sustained low fees coupled with continued exchange inflows could reinforce a bearish market structure. Furthermore, the evolution of Ethereum’s fee-burning mechanism, EIP-1559, means low fee periods also result in minimal ETH being burned, affecting the net supply dynamics of the asset. Conclusion The 70% plunge in Ethereum weekly fees to $2.12 million, driven by slowing DeFi activity, presents a multifaceted signal for the network’s immediate trajectory. When analyzed alongside the substantial $1.1 billion ETH inflow to exchanges, the data paints a picture of cooling on-chain demand and potential building selling pressure. While lower fees improve accessibility, their abrupt decline primarily reflects a contraction in core utility. Ultimately, monitoring how these metrics evolve in the coming weeks will be crucial for understanding the next phase for Ethereum, as the network balances scalability achievements with the fundamental need for sustained user demand and robust economic security. FAQs Q1: What does a plunge in Ethereum fees actually mean? A plunge in Ethereum fees means users are paying significantly less to conduct transactions. This typically occurs when network congestion eases due to reduced demand for block space, often stemming from lower activity in DeFi, NFTs, or other on-chain applications. Q2: Why is a large ETH inflow to exchanges considered bearish? Large inflows of ETH to centralized exchanges are considered bearish because they often indicate holders are moving assets to a platform where they can be easily sold. This increases the readily available supply on the market, which can lead to downward price pressure if sell orders are executed. Q3: Could lower Ethereum fees be a positive sign? Yes, lower fees can be a positive sign of improved network scalability and efficiency, especially if driven by technological upgrades like Layer 2 adoption. However, if driven by a lack of user demand, as the current data suggests, it may indicate waning interest in on-chain activities. Q4: How does low fee revenue affect Ethereum validators? Low fee revenue reduces the total rewards validators earn for securing the network, as their income comes from both newly issued ETH and transaction fees. This can lower the overall staking yield (APY), potentially affecting incentives for existing and new validators over the long term. Q5: What is the difference between Sentora and IntoTheBlock? Sentora is the new brand name for the analytics firm formerly known as IntoTheBlock. The company rebranded to reflect an expanded focus on holistic blockchain intelligence and data science beyond its original DeFi analytics offerings. The core data reporting remains consistent and authoritative. This post Ethereum Fees Plunge a Staggering 70% as DeFi Activity Slows, Sparking Market Concern first appeared on BitcoinWorld .
TrenDex.One Launches a Hyper-Frequency Crypto Prediction Protocol on Base
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This content is provided by a sponsor. Crypto markets move every minute, but much of on-chain participation still forces longer time horizons, higher starting capital, or custody tradeoffs. A growing segment of the market is looking for products that keep user control intact while compressing market feedback into short, repeatable cycles. TrenDex.One was built to
Bitcoin – ‘Rainbow zones,’ five-month losing streaks, and what next for BTC’s price
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Bitcoin's next few weeks will be worth looking out for.
Crypto Market Sheds $730 Billion in 100 Days as Altcoins Lead Declines
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The crypto market lost over $730 billion in value over the past 100 days. Altcoins suffered the steepest decline, with mid- and small-cap tokens hit hardest. Continue Reading: Crypto Market Sheds $730 Billion in 100 Days as Altcoins Lead Declines The post Crypto Market Sheds $730 Billion in 100 Days as Altcoins Lead Declines appeared first on COINTURK NEWS .