Market Movement:

  • Solana's ETF-related outflows contributed to a slight decline in risk appetite, with Solana trading at roughly $141, despite a 3.6% increase, following an outflow of $8.1 million on Wednesday.

Key Events:

  • Ripple’s RLUSD stablecoin surpassed $1 billion in supply on Ethereum, indicating strong regulated demand growth.
  • South Korean police officers were indicted for facilitating a $186 million crypto-laundering scheme, with authorities freezing assets totaling approximately $1.1 million.
  • Balancer outlined a plan to reimburse roughly $8 million in assets to liquidity providers after a $128 million exploit, salvaging about $28 million through various interventions.

Trading Signals:

  • U.S. spot Solana ETFs experienced their first outflow of $8.1 million, breaking a 21-day inflow streak since launch, driven mainly by a $34.37 million redemption from 21Shares’ fund.
  • Ripple’s RLUSD stablecoin's growth to over $1 billion suggests increasing institutional and regulated investor activity.
  • Balancer’s proposed reimbursement plan and recovered assets indicate ongoing resilience in DeFi protocols despite recent exploit risks.

Narrative Shifts:

  • Focus on regulated demand is accelerating, exemplified by RLUSD surpassing $1 billion, and South Africa prioritizing payments system upgrades over retail CBDC deployment.
  • Sector rotation from riskier assets like Solana to more stable, regulated tokens is evident, with Solana ETFs experiencing outflows after 21 days of inflows.

Risk Alerts:

  • The $128 million exploit on Balancer underscores ongoing security vulnerabilities in DeFi, with $28 million recovered but significant risk remains.
  • South Africa’s central bank warns that crypto and stablecoins pose financial risks and could be used to bypass exchange controls, delaying retail CBDC plans.
  • The outflow from Solana ETFs signals potential risk aversion among retail investors amid market volatility and riskier high-beta assets.

Opportunities:

  • The growth of Ripple’s RLUSD to over $1 billion indicates opportunities in regulated stablecoin markets.
  • The planned reimbursements and asset recoveries in DeFi point to opportunities for strategic liquidity provision and risk management in the space.

Flows & Positioning

South Korean Police Indicted in $186 Million Crypto-Laundering Case

Two South Korean police officers have been indicted for allegedly accepting bribes from operators of illegal crypto exchanges involved in a $186 million voice-phishing laundering operation. Prosecutors claim the officers provided investigative information and facilitated account access in exchange for payments, highlighting serious corruption within law enforcement. Authorities have frozen approximately $1.1 million in assets as part of an ongoing investigation into the network that converted criminal proceeds into USDT through cash-for-crypto shops. This case underscores the challenges of regulatory enforcement in the rapidly evolving crypto landscape.

Spot Solana ETFs Experience $8.1 Million Outflow

U.S. spot Solana exchange-traded funds (ETFs) recorded their first outflow of $8.1 million, breaking a 21-day streak of inflows since their launch. The outflow was primarily driven by a $34.37 million redemption from the 21Shares' TSOL fund, which has seen significant volatility in its net assets. Despite the outflows, Solana remains relatively stable, trading around $141, reflecting a 3.6% increase over the past 24 hours. However, the overall sentiment in the market remains cautious as investors assess the implications of these ETF movements on future capital flows.

Bitcoin Trading Near $91,000 Amid Options Expiry

Bitcoin is currently trading around $91,389, showing a recovery from recent lows. This price action comes ahead of a significant options expiry event, with over $16 billion in Bitcoin and Ethereum options set to expire, which could influence short-term price movements. Traders are closely monitoring the maximum pain point at $100,000, indicating a bullish sentiment despite recent market turbulence. The upcoming expiry could lead to increased volatility as positions are adjusted ahead of the event.

Market Sentiment and Future Outlook for Bitcoin

Market sentiment remains cautious, with Bitcoin's recent bounce above $90,000 not yet solidifying a robust recovery. Analysts suggest that without increased volume and demand, the market may remain in a low-conviction consolidation phase. As traders await clearer signals from the options expiry and macroeconomic developments, the focus will be on whether Bitcoin can reclaim key resistance levels. The current market dynamics indicate a fragile state, with liquidity concerns persisting as traders navigate potential risks.

Ethereum's Roadmap and Gas Limit Increase

Vitalik Buterin has outlined a roadmap for Ethereum that includes a significant 5x increase in the gas limit, potentially enhancing transaction efficiency and reducing costs. This upgrade aims to position Ethereum more competitively against Solana, which has been known for its lower transaction fees. If implemented, this change could attract more developers and users to the Ethereum ecosystem, fostering greater adoption and usage.

Memecoin Expansion with BONK ETP Listing

The introduction of the BONK memecoin as an Exchange Traded Product (ETP) on Switzerland’s SIX exchange marks a notable expansion for this Solana-based token. This listing brings BONK into one of Europe's largest stock markets, despite the broader trend of declining valuations for memecoins in 2025. The move could enhance BONK's visibility and legitimacy, potentially attracting institutional investors and increasing trading volume.

Corporate & Capital Markets

OpenAI Partners Amass $100bn Debt Pile to Fund Ambitions

OpenAI partners amass $100bn debt pile to fund its ambitions.

BitMine Purchases $44 Million Worth of Ethereum

BitMine Chair Tom Lee said Ethereum could possibly trade between $7,000 and $9,000 by the end of January 2026.

German Spy Drone Maker Quantum Systems Secures €3bn Valuation

German spy drone maker Quantum Systems secures €3bn valuation.

Singapore Wealth Fund GIC Moving to Bigger Office in Tokyo Finance District

Shin-Marunouchi Building in Tokyo.

On-Chain & Network

Ethereum Increases Block Gas Limit to 60 Million

Ethereum has raised its block gas limit to 60 million, a move aimed at enhancing network capacity ahead of the upcoming Fusaka upgrade. This adjustment is expected to facilitate greater transaction throughput and improve overall network performance. Vitalik Buterin, co-founder of Ethereum, indicated that growth is anticipated to continue into the next year, emphasizing the need for smarter adjustments to avoid new bottlenecks as capacity expands.

Security Concerns Arise from Malicious Chrome Extension Targeting Solana Traders

A new malicious Chrome extension, named Crypto Copilot, has been identified as a threat to Solana traders, siphoning off 0.05% of every transaction executed through it. The extension, which has been available since June 2024, inserts an additional transfer instruction into Raydium swaps, diverting funds to an attacker-controlled wallet. This incident highlights ongoing security vulnerabilities within the ecosystem, emphasizing the need for enhanced protective measures for users engaging in decentralized finance activities.

Liquidity and Refunds in the Wake of MegaETH's Pre-Deposit Bridge Issues

Following operational failures during the launch of its native stablecoin USDm, MegaETH has announced plans to refund all pre-deposit funds raised through its bridge. The project faced significant disruptions, including a misconfigured multisig transaction that allowed deposits to exceed $400 million prematurely. This incident underscores the importance of robust operational protocols in managing liquidity and user funds during critical launch phases.

Balancer's Reimbursement Plan Following Major Exploit

In response to a significant exploit that drained over $128 million from its V2 pools, Balancer has outlined a reimbursement plan for affected liquidity providers. The proposal includes returning approximately $8 million in rescued assets, with a total of $28 million salvaged through various interventions. This incident serves as a reminder of the vulnerabilities present in decentralized finance protocols and the importance of having effective recovery strategies in place.

Macro & Policy

Ripple's RLUSD Stablecoin Surpasses $1B Amid Regulated Demand

Ripple's RLUSD stablecoin has achieved a significant milestone, surpassing $1 billion in supply on the Ethereum network. This growth is attributed to an increase in regulated demand for stablecoins, indicating a shift in market dynamics favoring compliant digital assets. The development reflects broader trends in the cryptocurrency market, where regulatory clarity is becoming increasingly important for investor confidence and adoption.

South Africa Central Bank Prioritizes Payments System Over Retail CBDC

The South African Reserve Bank (SARB) has decided to shelve plans for a retail central bank digital currency (CBDC), stating that there is no urgent need for such a currency at this time. Instead, the bank will focus on upgrading the existing payments system to improve efficiency and accessibility. This decision highlights the SARB's commitment to enhancing the national payments infrastructure rather than pursuing a digital currency for everyday transactions. In a research paper, the SARB indicated that while a consumer-facing CBDC is technically feasible, it is not necessary in the near term.

The bank aims to enhance wholesale digital currency applications and improve cross-border payment efficiency, reflecting a strategic pivot towards infrastructure upgrades that could yield quicker benefits than a broad consumer rollout. The SARB also noted potential risks associated with cryptocurrencies and stablecoins, which could be used to bypass exchange controls, emphasizing the need for careful monitoring of these developments.

Security & Incidents

Upbit Reports $36 Million Hack Linked to North Korea's Lazarus Group

Upbit reported about $36 million drained from its Solana hot wallet on Thursday. Local reporting indicates officials link the theft to Lazarus and plan an on-site probe. Dunamu, its operator, has frozen wallets, moved funds offline, and pledged full reimbursement for victims as inquiries continue.

Malicious Chrome Extension Siphons Fees from Solana Traders

A Chrome extension marketed as a convenient trading tool has been secretly siphoning SOL from users' swaps since last June, injecting hidden fees into every transaction while masquerading as a legitimate Solana trading assistant. The extension, called Crypto Copilot, has been available on the Chrome Web Store since June 2024 and markets itself as a shortcut for executing Solana trades directly from users’ X feeds. Researchers found that the extension appends a second instruction that transfers SOL to the wallet address Bjeida, diverting at least 0.0013 SOL, or 0.05% of each transaction, to an attacker-controlled wallet. The extension remains online at the time of reporting, and Socket has submitted a takedown request to Google.

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