RAKBANK is preparing to enter the United Arab Emirates’ growing stablecoin market after receiving in-principle approval from the Central Bank of the UAE (CBUAE) to issue a dirham-backed payment token. The approval allows the bank to proceed toward launch once it meets final regulatory, technical, and operational requirements set by the central bank.

The lender said the planned stablecoin will be fully backed one-to-one by UAE dirhams held in segregated, regulated accounts. It will also rely on audited smart contracts and real-time reserve attestations, aligning with the CBUAE’s framework for payment tokens designed to function within the existing financial system rather than outside it.

For RAKBank, the move extends its broader digital assets strategy, which already includes enabling retail crypto trading through a regulated brokerage partner in 2025. Chief Executive Raheel Ahmed said the approval reflects the bank’s focus on innovation that remains compliant and trust-based, positioning tokenized payments as an extension of regulated banking rather than a replacement.

Multi-Regulator Approach to Digital Assets

The UAE has emerged as one of the most active jurisdictions globally in building a structured digital asset regime. Oversight is shared among the central bank, Abu Dhabi Global Market, Dubai’s Virtual Assets Regulatory Authority, and other federal and free-zone regulators, each covering specific aspects of virtual assets and tokenized finance.

Dirham-referenced stablecoins sit at the center of this framework, with policymakers viewing them as tools to modernize domestic payments and improve efficiency in cross-border transfers. The UAE’s large expatriate population and high remittance volumes make faster, lower-cost settlement an institutional priority rather than a purely crypto-native use case.

RAKBank’s approval follows similar initiatives from both local and international players. Telecom group e& has been piloting a regulated dirham stablecoin for bill payments, while Circle and Ripple have secured approvals in Abu Dhabi for USDC and Ripple USD, respectively, targeting institutional and regional applications.

Adoption Questions Remain

Despite regulatory momentum, several practical questions remain unresolved. RAKBank has not disclosed which blockchain infrastructure will underpin the stablecoin or how interoperable it will be with existing global payment rails. It is also unclear how settlement between federal and free-zone jurisdictions will function once banks begin using stablecoins for live commercial flows.

Market adoption may prove the largest hurdle. While regulators and financial institutions are positioning for a tokenized future, widespread use will depend on integration into corporate treasury systems, pricing incentives, and clear advantages over existing payment channels.

Still, the entry of a domestically focused bank like RAKBank suggests that stablecoins in the UAE are moving beyond pilot programs toward mainstream financial infrastructure, reinforcing the country’s ambition to anchor digital finance within a regulated banking environment.

Barclays has made its first equity investment in a stablecoin-related company, taking a stake in US-based startup Ubyx as it expands its work on regulated forms of digital money. The British lender confirmed the investment this week, describing it as part of a broader effort to explore tokenized cash and next-generation settlement systems.

Founded in 2025, Ubyx positions itself as a clearing and settlement layer for stablecoins, aiming to standardize how tokens issued by different providers are redeemed and treated across platforms. The company’s core proposition is to make stablecoins interoperable so that one issuer’s dollar-pegged token is functionally equivalent to another in settlement workflows.

Barclays did not disclose the size of its stake or Ubyx’s valuation. A bank spokesperson said the investment aligns with Barclays’ strategy to develop tokenized money “within the regulatory perimeter,” underscoring a cautious approach to crypto-adjacent innovation.

Strategic Fit with Banks’ Tokenized Cash Ambitions

The investment reflects a wider trend among global banks seeking exposure to stablecoin infrastructure without directly issuing digital tokens. By backing a neutral clearing layer, institutions can participate in the evolution of tokenized payments while maintaining compliance with existing banking and regulatory frameworks.

Stablecoins have become a critical component of crypto market liquidity, facilitating trading, lending, and cross-border transfers. However, most activity remains concentrated within crypto-native venues. Banks see potential for these instruments to improve settlement speed and reduce operational friction in wholesale payments, provided regulatory concerns are addressed.

Ubyx has also attracted backing from crypto-focused investors, including venture arms linked to Coinbase and Galaxy Digital, according to industry data. That mix of traditional bank capital and crypto-native funding highlights growing convergence between established financial institutions and blockchain-based payment infrastructure.

For Barclays, the Ubyx investment complements earlier initiatives. In October, the bank joined a consortium of lenders exploring a fully reserve-backed form of digital money linked to major G7 currencies, signaling interest in programmable cash models that resemble deposits rather than unregulated private tokens.

Regulatory Backdrop Shapes Adoption Path

Regulators remain central to how far and how fast stablecoins move into mainstream finance. In the UK, the Bank of England and the Financial Conduct Authority have proposed limits on large-scale stablecoin holdings to prevent sudden outflows from bank deposits during periods of stress. Similar discussions are unfolding in the US and Europe as lawmakers assess the systemic implications of privately issued digital money.

At the same time, the scale of existing stablecoins illustrates market demand. Tether, the largest issuer, has nearly $190 billion in tokens outstanding, demonstrating how quickly dollar-pegged instruments can grow once users adopt them.

Against this backdrop, infrastructure providers like Ubyx are positioning themselves as a bridge between innovation and regulation. By offering familiar settlement mechanics layered on blockchain rails, they aim to lower the barriers for banks that want efficiency gains without taking on issuer risk.

Barclays’ move suggests that major lenders increasingly see stablecoin infrastructure not as a speculative bet, but as a potential component of future payment and settlement systems.

Ripple has reaffirmed that it does not intend to pursue an initial public offering, citing its financial strength and ability to fund growth without accessing public equity markets. Speaking in an interview with Bloomberg, President Monica Long said the company remains well capitalized and sees no strategic urgency to go public.

Long noted that IPOs are often driven by a need for liquidity or broader investor access, neither of which Ripple currently requires. Instead, the company plans to continue operating privately while investing in product development, infrastructure, and selective acquisitions. The stance reflects a broader trend among large private technology and crypto firms delaying listings amid volatile market conditions.

Recent Funding Highlights Institutional Support

Ripple’s position is underpinned by a $500 million private funding round completed in November 2025 at a reported $40 billion valuation. The round included participation from Fortress Investment Group, Citadel Securities, and several crypto-focused investment firms, signaling continued institutional appetite for established digital asset infrastructure providers.

Long characterized the financing terms as favorable to the company, emphasizing flexibility and long-term alignment with investors. While she declined to provide detailed disclosures, she described the overall structure as supportive of Ripple’s strategic objectives. The fundraising provided additional capital without the regulatory and disclosure burdens associated with becoming a public company.

From a competitive standpoint, access to private capital allows Ripple to move quickly in a consolidating market. Crypto infrastructure firms are increasingly competing for enterprise clients, payment partners, and regulatory clarity, making balance sheet strength a key differentiator.

Broader Market and Strategic Context

Ripple’s decision comes as equity markets remain selective toward new listings, particularly in the technology and digital asset sectors. While IPO activity has shown signs of recovery, valuation scrutiny and post-listing performance remain concerns for late-stage private companies. Remaining private enables Ripple to focus on execution rather than quarterly earnings expectations.

Institutionally, Ripple continues to position itself as a long-term payments and blockchain infrastructure provider rather than a short-term growth story. The company has previously indicated interest in acquisitions that complement its cross-border payments and liquidity solutions, areas where scale and regulatory engagement are increasingly important.

Long’s comments suggest that Ripple views its current capital structure as sufficient to navigate both market cycles and regulatory developments. With significant private backing and a focus on operational expansion, the company appears comfortable deferring any consideration of a public listing. For investors and competitors alike, the message underscores Ripple’s confidence in its balance sheet and its belief that remaining private best supports its growth trajectory in the current environment.

A sweeping US crypto market structure bill is increasingly likely to face delays until at least 2027, according to a report from TD Cowen’s Washington Research Group. The legislation, known as the CLARITY Act in the House and the Responsible Financial Innovation Act in the Senate, is viewed as vulnerable to shifting political dynamics ahead of the 2026 midterm elections. Analysts warned that electoral uncertainty could discourage Senate Democrats from backing the bill in the near term.

With control of Congress at stake, lawmakers may be reluctant to advance a framework that could carry political risks during a high-stakes election cycle. TD Cowen noted that Democrats could opt to stall negotiations until after the midterms, when the balance of power may change, and political incentives become clearer. While bipartisan engagement continues, timing rather than substance appears to be the primary obstacle.

Conflict Provisions and Institutional Concerns

A key source of friction centers on conflict of interest safeguards included in a bipartisan Senate draft released in November. These provisions aim to limit direct involvement in crypto markets by senior government officials, including the president and immediate family members. The issue has drawn heightened attention as lawmakers scrutinize perceived ties between political leadership and digital asset ventures.

Several Democrats have publicly raised concerns about potential conflicts linked to crypto-related businesses and endorsements connected to President Donald Trump and his family. From an institutional perspective, these concerns complicate efforts to deliver a neutral regulatory framework that balances innovation with public trust. TD Cowen suggested that delaying the bill could reduce political sensitivity, as the conflict provisions would be less relevant if implementation occurs after the current administration.

Regulatory Implications for the Crypto Industry

If enacted, the Responsible Financial Innovation Act would significantly reshape the US regulatory landscape by assigning greater oversight of digital assets to the Commodity Futures Trading Commission. This shift would reduce the Securities and Exchange Commission’s role in regulating crypto markets, an outcome long favored by industry participants seeking clearer jurisdictional boundaries.

However, further delays would extend regulatory uncertainty for exchanges, issuers, and institutional investors. Without a comprehensive framework, firms continue to operate under fragmented guidance and enforcement-driven oversight. TD Cowen noted that passage in 2027, with implementation potentially delayed until 2029, may represent a pragmatic compromise that allows political tensions to ease while preserving the bill’s core structure.

The Senate Banking Committee and Senate Agriculture Committee are expected to begin markups this month, signaling continued momentum despite the longer-term outlook. Still, analysts cautioned that legislative progress will remain closely tied to electoral developments. For the crypto industry, the outcome underscores how political cycles increasingly shape the pace and direction of regulatory reform in the United States.

Tether has introduced Scudo, a new unit of account for its gold-backed stablecoin, Tether Gold (XAU₮), designed to simplify fractional ownership and on-chain transactions. Each Scudo represents one-thousandth of a troy ounce of gold, enabling users to price, transfer, and settle assets without handling complex decimal fractions.

The initiative addresses a long-standing usability challenge for digital gold, making it more practical as a medium of exchange while maintaining its traditional role as a store of value. By providing a smaller, intuitive unit, Tether seeks to expand adoption across retail users, institutional participants, and developers building blockchain-based payment solutions.

Scudo is integrated with Tether’s WDK technology layer, which allows developers, companies, and AI agents to deploy self-custodial wallets supporting XAU₮ alongside Bitcoin and stablecoins.

Transactions can be denominated in whole or fractional Scudo units, simplifying pricing for goods, remittances, and other on-chain operations. Importantly, the introduction of Scudo does not change the backing of Tether Gold, which remains fully collateralized by physical gold stored in secure vaults. Users can verify ownership and asset movements on-chain through Tether’s asset-tracking tools, ensuring transparency and institutional-grade accountability.

Implications for Investors and Digital Payments

The launch of Scudo coincides with historically high global gold prices, driven by inflationary pressures, record central bank purchases, and demand for safe-haven assets. Tether Gold’s market capitalization has doubled in recent months as investors seek gold exposure without traditional custodial challenges.

Scudo addresses structural barriers to gold’s usability in everyday economic activity, particularly in emerging markets where small, divisible units are essential for micro-transactions and financial inclusion.

Analysts note that Scudo may also enhance institutional adoption, improving accounting clarity and settlement efficiency for blockchain-based financial products. By combining full physical backing with a more intuitive unit of account, Tether strengthens the role of digital gold as both a store of value and a practical medium of exchange.

The introduction of Scudo aligns with broader trends in tokenized assets, where fractionalization and user-friendly denominational units are increasingly necessary for integrating traditional assets into decentralized finance and digital payment systems.

Telegram reported operating revenue of $870 million for the first half of 2025, reflecting a 65% increase from $525 million in the same period last year. Approximately $300 million of this total came from Toncoin-related exclusivity deals, highlighting the increasing contribution of cryptocurrency-linked income streams.

While advertising revenue grew modestly to $125 million and premium subscriptions reached $223 million, Toncoin transactions through Telegram’s Fragment marketplace now represent a significant share of the company’s financial performance. The messaging platform achieved an operating profit near $400 million, indicating profitability before accounting for cryptocurrency losses.

Impact of Toncoin Decline on Net Results

Despite strong revenue growth, Telegram posted a net loss of $222 million, compared with a net profit of $334 million in H1 2024. The swing is largely attributed to a write-down in Toncoin holdings after the token declined roughly 69% over 2025.

Telegram’s total digital asset holdings decreased to $787 million from $1.3 billion year-over-year due to both token depreciation and ongoing asset sales, which included more than $450 million worth of Toncoin. Toncoin remains near $1.93, well below its all-time high of $8.25, though up 60% over the past year.

Debt and Regulatory Considerations

Telegram’s growth comes alongside financial and regulatory pressures. Roughly $500 million of the company’s bonds are frozen in Russia’s central securities depository due to Western sanctions, though the firm plans repayment at maturity. Founder Pavel Durov’s exploration of an initial public offering has been delayed by legal proceedings in France related to platform content moderation.

The combination of rising Toncoin-linked revenue, subscription growth to 15 million, and ongoing user expansion (over 1 billion monthly users) demonstrates the firm’s scale, yet regulatory and market risks continue to influence strategic financial decisions.

Fundstrat Global Advisors co-founder Tom Lee said Bitcoin may still have room to run in the opening weeks of 2026, arguing that the market has not yet reached a cyclical peak. Speaking in an interview on January 5, Lee said he expects Bitcoin to push to a new all-time high before the end of January, despite recent pullbacks across digital assets.

Bitcoin has rebounded from the late-2025 weakness and was trading near $94,000 on Monday, supported by renewed institutional positioning and improving sentiment toward risk assets. Lee framed the recent consolidation as a pause rather than a reversal, noting that similar patterns have historically preceded renewed upside during early-year periods.

Volatility Expected before Second-Half Recovery

While near-term momentum appears constructive, Tom Lee warned that 2026 is unlikely to be a smooth ride for crypto markets. He described the year as a tale of two halves, with institutional rebalancing and profit-taking likely to pressure prices during the first several months.

According to Lee, large allocators are reassessing exposure after several years of outsized returns, creating short-term volatility even as longer-term fundamentals remain intact. He said this reset phase should not be mistaken for structural weakness, but rather a digestion period that could lay the groundwork for stronger performance later in the year.

The view aligns with broader macro uncertainty as investors weigh slowing global growth, shifting central bank policy paths, and elevated geopolitical risk. Within that backdrop, Lee argued that crypto remains increasingly intertwined with traditional markets, making short-term drawdowns more sensitive to cross-asset positioning.

Ether Conviction and Equity Optimism

Lee reiterated a bullish stance on Ethereum, calling it materially undervalued relative to its network activity and long-term adoption potential. He pointed to continued accumulation by corporate and treasury-focused entities as evidence that Ether is transitioning from a speculative asset to a balance-sheet consideration.

From a competitive standpoint, Lee suggested Ethereum could benefit disproportionately if institutional demand for yield-bearing and programmable blockchain infrastructure continues to expand. He characterized Ether exposure as a strategic allocation rather than a tactical trade, particularly for firms seeking asymmetric upside over multi-year horizons.

Beyond digital assets, Lee outlined one of the more optimistic equity forecasts on Wall Street, projecting the S&P 500 could reach 7,700 by the end of 2026. He attributed the outlook to resilient corporate earnings, productivity gains tied to artificial intelligence, and sustained capital investment despite tighter financial conditions.

Lee acknowledged that market pullbacks are likely across both crypto and equities, but maintained that volatility should be viewed as an opportunity. In his view, the combination of technological innovation and institutional capital flows continues to support a constructive medium-term outlook, even if the path forward proves uneven.

Bitcoin moved higher on January 5, approaching the $93,000 level as geopolitical tensions resurfaced following comments by US President Donald Trump on potential actions involving Colombia and Mexico. The price increase came days after a US military operation in Venezuela, which markets appeared to absorb with limited disruption. Analysts said the latest gains reflected Bitcoin’s sensitivity to geopolitical risk rather than any single macro catalyst.

Speaking over the weekend, Trump criticized Colombia’s role in cocaine trafficking and suggested that tougher US action, including military measures, could be considered. He also warned that “something is going to have to be done” in Mexico after President Claudia Sheinbaum rejected US assistance in combating cartels. The remarks extended uncertainty across Latin America, a region already under scrutiny after Venezuela’s leadership was removed in a surprise operation.

Geopolitical Signals and Market Response

Bitcoin rose roughly 3% from late-week levels near $90,000, trading just below $93,000 as global markets digested the comments. Unlike previous geopolitical flashpoints, the Venezuela operation produced little immediate volatility, in part because it concluded before prolonged uncertainty could develop. Market participants noted that crypto assets held steadier than oil and emerging market currencies during the initial response.

Trump’s comments also referenced Cuba, a key Venezuelan ally, which he described as economically fragile following disruptions to its oil supply. The broader rhetoric reinforced perceptions of an assertive US foreign policy stance early in the year. For some institutional investors, such dynamics continue to frame Bitcoin as an asset that can attract flows during periods of political stress.

Broader Macro and Institutional Context

The move higher in Bitcoin occurred alongside relatively muted action in traditional risk assets. Equity markets were mixed, while volatility measures remained contained, suggesting that crypto-specific positioning and portfolio rebalancing may have amplified the price response. Institutional flows into Bitcoin-linked products have remained resilient into early January, supporting spot prices.

Analysts cautioned that while geopolitical headlines can drive short-term momentum, sustained upside typically depends on liquidity conditions and regulatory clarity. With US monetary policy expectations largely unchanged and digital asset regulation progressing incrementally, Bitcoin’s recent advance underscores its growing role as a macro-sensitive asset rather than a purely speculative trade.

As geopolitical developments unfold across the Americas, market participants are closely watching whether crypto markets continue to absorb uncertainty with relative stability compared to traditional assets.

Metaplanet’s Bitcoin treasury strategy is drawing increased attention as currency dynamics amplify the company’s BTC-denominated performance. The Japanese firm has benefited from prolonged yen weakness, which lowers the real cost of financing Bitcoin accumulation while enhancing returns when measured against local currency. Analysts say this creates a structural advantage compared with companies operating in stronger currency environments.

Japan’s accommodative monetary policy and high public debt have pressured the yen for years, reshaping capital allocation decisions for domestic firms. When Bitcoin is priced in yen terms, its performance since 2020 has materially outpaced dollar-based returns, creating a compounding effect for local holders. This macro backdrop has made yen-funded Bitcoin exposure comparatively more attractive for Japanese treasury strategies.

Yen Financing and Cost-of-Capital Advantage

Metaplanet finances its Bitcoin purchases using yen-denominated instruments, including perpetual preferred shares with coupons below 5%. As the yen depreciates, the real cost of servicing these obligations declines when measured against Bitcoin or the US dollar. This dynamic effectively reduces the firm’s long-term financing burden.

By contrast, US-based Bitcoin treasury companies often issue debt in dollars at higher interest rates. Dollar liabilities tend to retain value more effectively during periods of fiat weakness, limiting the upside from currency depreciation. As a result, Metaplanet benefits from a carry-trade-like structure, borrowing in a weakening currency to acquire an asset that has historically appreciated against fiat.

The strategy creates divergence in treasury outcomes across regions. Companies borrowing in softer currencies can achieve stronger BTC accumulation efficiency than peers operating in harder currency regimes, assuming Bitcoin prices remain resilient.

Accumulation Strategy and Broader Implications

Throughout 2025, Metaplanet increased its Bitcoin holdings, reinforcing its position as Asia’s largest corporate holder. A late-year acquisition pushed total reserves above 35,000 BTC, placing the firm among the world’s largest corporate Bitcoin treasuries. While share issuances used to fund purchases weighed on equity performance during parts of the year, Bitcoin per fully diluted share continued to rise.

Analysts view yen weakness as a structural tailwind rather than a temporary condition. Japan’s fiscal constraints suggest limited near-term relief for the currency, potentially extending Metaplanet’s cost-of-capital advantage. If Bitcoin resumes sustained gains, the firm’s currency mismatch could continue to magnify returns relative to global competitors.

The case highlights how macroeconomic conditions and currency policy are increasingly shaping corporate Bitcoin strategies, creating uneven outcomes across regions.

Hundreds of cryptocurrency wallets across Ethereum Virtual Machine-compatible blockchains have been drained in an ongoing attack that has yet to be fully understood, according to onchain investigator ZachXBT. The incident involves a large number of wallets losing relatively small amounts, typically less than $2,000 each, but the aggregate losses continue to climb as new cases emerge.

As of the latest update shared by ZachXBT, total losses were estimated at roughly $107,000, with the figure expected to rise. The attacker appears to be prioritizing scale over individual payout size, a tactic that can delay detection while steadily accumulating funds. At the time of reporting, the initial attack vector had not been identified, leaving open the possibility of further wallet compromises.

Unclear Entry Point Raises Broader Security Concerns

The lack of clarity around how the wallets are being accessed has raised concerns among security researchers and infrastructure providers. ZachXBT noted that the attacker’s point of entry remains unknown, suggesting the issue could stem from compromised private keys, malicious approvals, phishing campaigns, or vulnerabilities in third-party tooling rather than a single protocol-level flaw.

A suspicious address associated with the activity has been flagged, though no attribution has been confirmed. Without a clearly identified exploit mechanism, wallet providers and users face difficulty implementing targeted defenses, increasing the risk of continued losses. The incident underscores the fragmented security landscape across EVM chains, where shared standards coexist with a wide array of wallet software, extensions, and signing practices.

The episode also highlights a recurring challenge for retail users. Even modest individual losses can be financially and psychologically significant, particularly when assets are irrecoverable and transactions are irreversible. For institutions, such events reinforce the need for stricter custody controls, hardware isolation, and transaction monitoring.

Part of a Wider Pattern of Crypto Exploits

The wallet-draining campaign comes amid a broader wave of crypto-related security incidents, though recent data suggests overall losses have moderated. According to blockchain security firm PeckShield, December recorded around 26 major exploits with total losses of approximately $76 million, a sharp decline from nearly $195 million reported in November.

One of December’s most notable incidents involved Trust Wallet, where a vulnerability linked to a specific version of its browser extension led to roughly $7 million in losses. The firm has since initiated a compensation process and released an updated version of the extension. Trust Wallet’s management said the extension was temporarily unavailable on the Chrome Web Store due to a platform-side issue during the update process.

From a macro perspective, the persistence of wallet-level attacks reflects growing adversarial pressure as crypto adoption expands. While protocol security has improved, attackers increasingly target end users and off-chain infrastructure, where defenses are uneven. For the industry, the current incident serves as another reminder that usability gains often come with new security trade-offs, and that vigilance remains essential as activity across EVM chains continues to grow.

Ethereum closed 2025 with its highest level of onchain activity on record, underscoring a shift in how the network is being used nearly four years after the peak of the NFT cycle. Data shows the seven-day moving average of daily transactions reached 1.87 million on December 31, exceeding both the 2021 NFT and DeFi boom and more recent highs set earlier in 2025.

The rise in transactions was accompanied by a sharp increase in network participation. Active addresses climbed to nearly 729,000, the strongest reading since mid-2021, while new addresses surpassed 270,000 in a single day, the largest increase since early 2018. Together, the figures suggest broader engagement rather than isolated bursts of speculative activity.

Network Upgrades Reshape Ethereum Usage

The surge follows a year of significant technical changes aimed at improving scalability and lowering transaction costs. In 2025, Ethereum implemented the Pectra and Fusaka upgrades, which expanded blob throughput, introduced account abstraction features, and enhanced data availability through PeerDAS. These changes reduced fees and eased network congestion while supporting higher transaction volumes.

The upgrades align with Ethereum’s longer-term rollup-centric roadmap, which shifts much activity to layer-2 networks while keeping settlement on the main chain. Higher gas limits and improvements in zkEVM performance also contributed to more efficient processing, allowing activity to scale without placing additional strain on validators. For developers and users, the result has been a more predictable and cost-effective environment.

Another round of upgrades is planned for 2026. Glamsterdam is expected to focus on overall performance and decentralization, while the Hegota upgrade later in the year aims to strengthen the network’s long-term sustainability. These changes are closely watched by institutions that rely on network stability and throughput.

Institutional Demand and Competitive Pressure

Beyond technical factors, institutional participation has played a growing role in Ethereum’s activity. Spot ETFs, stablecoin settlement, and real-world asset tokenization have driven consistent transaction flows that differ from the speculative bursts seen during earlier cycles. Much of the current usage reflects financial infrastructure rather than short-term trading behavior.

Despite increased competition from alternative layer-1 networks, Ethereum continues to dominate key segments, including stablecoins, tokenized assets, and decentralized finance protocols. Many competing platforms offer lower fees or faster execution, but Ethereum’s liquidity depth and EVM compatibility remain significant advantages for large allocators.

Market pricing has not fully reflected the increase in network usage. Ether is trading just above $3,000 in early January, modestly higher on the day but well below prior cycle highs. The divergence between price performance and onchain activity highlights a market that remains cautious even as fundamentals strengthen.

Taken together, the record transaction levels point to Ethereum’s evolution from a speculative playground into a core settlement layer for digital finance. Whether that activity translates into sustained market repricing will depend on macro conditions, regulatory clarity, and the network’s ability to maintain its competitive edge.