Ethereum Momentum Builds as Crypto Infrastructure Expands Beyond Finance
Institutions Bet on ETH as Derivatives Activity Surpasses Bitcoin
Ethereum (ETH) continues to outpace bitcoin in institutional interest, now commanding 45.2% of perpetual futures trading volume versus BTC’s 38.1%, according to OKX Chief Commercial Officer Lennix Lai. ETH was trading near $2,770 as Asia opened Thursday, logging an 11% month-to-date gain — more than double BTC’s 5% increase.
“Ethereum is increasingly seen as the on-ramp to regulated DeFi,” Lai told CoinDesk, pointing to rising activity among sophisticated traders and asset managers. The trend is echoed across other venues like Deribit, confirming that ETH is becoming a preferred tool for leveraged exposure.
Long-term holders are also showing resilience. Despite bitcoin’s recent drawdowns, Glassnode reports nearly $930 million in daily realized profits from long-term holders during rallies — a sign that conviction is growing rather than waning. Instead of triggering major selloffs, long-term supply has continued to increase.
Though geopolitical shocks like the Trump-Musk rift inject volatility into markets, institutional conviction in ETH and BTC appears unfazed. ETH, in particular, is emerging as the asset of choice for those seeking long-term DeFi exposure through regulated pathways.
“With momentum this strong, $3,000 ETH seems like a matter of ‘when,’ not ‘if,’” said Lai.
Stablecoins Surge to Record High, Tron Captures Liquidity Lead
The total stablecoin market cap has soared to $228 billion — a 17% year-to-date jump — amid resurgent investor confidence, improved regulatory clarity, and DeFi yield opportunities, according to CryptoQuant.
Exchange-based reserves of ERC20 stablecoins hit a record $50 billion, with USDC balances up 1.6x this year. But it’s Tron that’s emerged as the largest liquidity sink, thanks to deep Tether integration and low-cost transactions.
Presto Research notes that Tron drew more than $6 billion in net stablecoin inflows in May, outpacing all other blockchains. It also notched the second-highest daily active user count behind Solana and posted the top growth in native total value locked (TVL).
Meanwhile, Ethereum and Solana saw stablecoin outflows and reduced bridge activity — symptoms of fewer protocol upgrades and stagnant yield generation. Capital is clearly rotating toward faster, more incentivized ecosystems like Tron, Base, and Solana.
Crypto Could Be the Backbone of Autonomous AI
Autonomous agents are gaining power — but lack infrastructure to coordinate. According to an essay by a16z Crypto’s Scott Duke Kominers, today’s agents operate in isolated silos, relying on rigid APIs and proprietary platforms.
Blockchain-based systems could change that.
Crypto networks offer composability, neutrality, and forward compatibility — ideal conditions for interoperable AI economies. Protocols like Halliday are working on open agent coordination layers, while startups like Catena and Skyfire are enabling peer-to-peer payments between bots using on-chain rails.
Coinbase has also begun supporting these efforts, betting that crypto could underpin a global network of cooperating agents. If this thesis plays out, blockchains could become the connective tissue for AI itself — enabling bots to find, pay, and collaborate with one another transparently and trustlessly.
Web3 Gaming Faces Harsh Reality: Fun Still Wins
Even as gaming remains the largest dApp category by user count, its dominance is slipping. DappRadar reports that Web3 gaming’s market share dropped to 19.4% in May, down from 21% in April. Venture funding plummeted to just $9 million last month, from $220 million in late 2024.
Several well-funded projects — Nyan Heroes, Ember Sword, The Mystery Society — shut down this year, underscoring a painful truth: gameplay has been sidelined in favor of token launches and speculative mechanics.
“Without fun, none of this matters,” the DappRadar report states bluntly. Engagement is flatlining because core game design has lagged behind the financialized layers. Industry veterans argue that the next phase of Web3 gaming will need to look more like Steam than like a token launchpad.
Market Recap: Volatility Returns, But Underlying Demand Holds
- BTC: Fell 2% to test support near $108.5K, following geopolitical uncertainty. ETF inflows suggest dip-buying continues.
- ETH: Up 5%, breaking $2,800 with $815M in ETF inflows and rising confidence after new SEC guidance on staking and wallets.
- Gold: Climbed 0.97% to $3,363 as U.S. inflation data boosted Fed rate cut expectations.
- Nikkei 225: Opened down 0.22% as yen strength pressured exporters despite optimism around a U.S.–Japan trade deal.
- S&P 500: Hovering near all-time highs amid cautious optimism on macro policy.
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