Ethereum Climbs Beyond $2,600 Backed by Institutional Flows and DeFi Growth, Though User Engagement Stalls
Ethereum surged past the $2,600 mark during early Asian trading, gaining 3.7% and decisively breaking its $2,500 resistance after a period of consolidation, reports CoinDesk Research’s AI-driven technical analysis.
This price jump is buoyed by strong trading volumes and robust institutional interest. Spot Ethereum ETFs attracted a net inflow of $248 million last week, led by BlackRock’s iShares Ethereum Trust. Meanwhile, decentralized finance (DeFi) protocols on Ethereum show renewed vitality, with total value locked (TVL) climbing 3.59% in the past 24 hours to $64.37 billion, according to DeFi Llama.
However, despite these positives, Ethereum’s ecosystem displays signs of stagnation. Active addresses linger near 406,000, almost unchanged from a year ago’s 430,000, indicating limited growth in user participation.
Stablecoin trends further complicate the picture. While stalwart coins like USDT and USDC remain steady, emerging stablecoins such as Ethena’s USDe and BUIDL demonstrate stronger growth, hinting at shifting preferences within Ethereum’s stablecoin landscape.
In sum, Ethereum’s rally enjoys solid institutional and on-chain support but faces potential headwinds from muted retail engagement and a flat user base.
Bitcoin Outshines Luxury Watches as Pandemic-Era Correlation Unravels
Once intertwined during the stimulus-fueled pandemic boom, Bitcoin and luxury watch markets have parted ways dramatically over the past year.
Bitcoin (BTC) has surged roughly 57%, while luxury watch prices, tracked by WatchCharts.com, have slipped 4%, underscoring a divergence from mid-2023 when the two assets closely moved together.
OKX Global’s CCO Lennix Lai credits Bitcoin’s strong institutional adoption and growing legitimacy as a key driver. “Bitcoin has matured into a generational asset. Unlike watches, it’s impervious to damage or theft, provided your keys are safe,” Lai explained.
The luxury watch market shows tentative signs of revival, gaining 0.3% over the last quarter. Watches.io founder Jake Plonskier attributes this to external economic factors like tariffs and rising gold prices, rather than crypto-fueled demand.
Crypto’s legacy on watches is largely demographic, having enabled younger buyers access to high-end models previously out of reach.
Circle Files for IPO on NYSE, Targeting Up to $625 Million
Circle Internet Financial, issuer of the USDC stablecoin, has filed for an IPO under ticker “CRCL” on the New York Stock Exchange, planning to offer up to 24 million Class A shares priced between $24 and $26 each.
The deal includes 9.6 million new shares potentially raising $250 million, plus 14.4 million shares from existing shareholders.
ARK Investment, led by Cathie Wood, has expressed interest in purchasing $150 million of shares. Major banks J.P. Morgan, Citigroup, and Goldman Sachs are joint lead bookrunners.
This marks a renewed attempt after Circle’s 2021 SPAC deal collapsed and previous acquisition talks with Coinbase and Ripple faltered.
Marathon Digital CEO Calls on U.S. Government to Mine Bitcoin for Strategic Reserve
At Bitcoin 2025, Marathon Digital’s Fred Thiel urged the U.S. government to begin domestic bitcoin mining, using surplus hydroelectric energy, to fill the strategic bitcoin reserve mandated by President Trump’s executive order.
Currently, the reserve comprises roughly 200,000 bitcoins seized by the government, but Thiel emphasized the need for active accumulation beyond these assets.
Senator Cynthia Lummis supports expanding the reserve by converting underperforming government gold certificates into bitcoin over several years, as outlined in her BITCOIN Act.
However, Lummis warns that legislative progress may be slow amid competing priorities like stablecoin regulation and market structure reforms.
Market Snapshot:
- Bitcoin (BTC): Recovering from a dip to $107,604, trading near $110,000 resistance amid easing EU trade tensions and accumulation by long-term holders.
- Ethereum (ETH): Surpasses $2,600 on ETF inflows and DeFi growth but tempered by stagnant active addresses.
- Gold: Trades at $3,315.30 per ounce, down 0.77%, with Citi revising near-term forecasts amid trade uncertainties.
- Nikkei 225: Opens at 38,003.67 with a 5% year-end gain forecast despite volatility.
- S&P 500: Climbs 2.1% on optimism over U.S.-EU tariff delays and trade talks.
About The Author
More Stories
$250M Bitcoin-Backed Deal Sealed as KindlyMD Partners with Antalpha
BTC Faces Potential Slide to $118K Amid Dollar Gains and Bond Caution, While MOVE Index Bolsters Bull Case
BNB Surpasses $1,280 as Network Activity Accelerates