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US Debt Interest Hits $1T: The Hidden Catalyst for Stablecoin Adoption

24 December 2025 at 09:45

The US federal government’s interest payments on national debt surpassed $1 trillion for the first time in fiscal year 2025. Interest expenditure now exceeds both defense spending and Medicare—a first in American history.

Wall Street analysts and social media users alike are invoking “Weimar” as warnings of fiscal crisis mount. Meanwhile, the US Treasury is positioning stablecoins as a strategic tool to absorb the growing flood of government debt.

The Numbers: A Crisis in Plain Sight

In fiscal year 2020, net interest payments totaled $345 billion. By 2025, that figure nearly tripled to $970 billion—outpacing defense spending by approximately $100 billion. When accounting for all interest on publicly held debt, the figure crossed $1 trillion for the first time.

Source: US Congressional Budget Office via KobeissiLetter

The Congressional Budget Office projects cumulative interest payments over the next decade will total $13.8 trillion—nearly double the inflation-adjusted amount spent over the past two decades.

The Committee for a Responsible Federal Budget warns that under an alternative scenario where tariffs are ruled illegal and temporary provisions of recent legislation are made permanent, interest costs could reach $2.2 trillion by 2035—a 127% increase from current levels.

Why This Is Unprecedented

The debt-to-GDP ratio has reached 100%, a threshold not seen since World War II. By 2029, it will surpass the 1946 peak of 106% and continue climbing to 118% by 2035.

Most concerning is the crisis’s self-reinforcing nature. The federal government borrows approximately $2 trillion annually, with roughly half going solely toward servicing existing debt. CRFB analyst Chris Towner warned of a potential “debt spiral”: “If the people who loan us money get worried we’re not going to pay it all back, we could see higher interest rates—which means we have to borrow more to pay interest.”

Historic FirstYearSignificance
Interest exceeds Defense spending2024First time since World War II
Interest exceeds Medicare2024Debt servicing now largest healthcare expense
Debt reaches 100% of GDP2025First time since WWII aftermath
Debt to surpass 1946 peak (106%)2029Will exceed all-time historical record
Source: BeInCrypto

Market Reaction: “Weimar” and “Buy Gold”

Social media erupted at these projections. “The trajectory is unsustainable if unchanged,” wrote one user. Another posted “weimar”—a reference to 1920s German hyperinflation. “The debt service era,” declared another, capturing the sentiment that America has entered a new phase.

The overwhelming majority called for flight to hard assets—gold, silver, and real estate. Notably absent was little mention of Bitcoin, suggesting traditional “gold bug” thinking still dominates retail sentiment.

Market Implications

Near-term, surging Treasury issuance absorbs market liquidity. With risk-free yields near 5%, equities and cryptocurrencies face structural headwinds. In the medium term, fiscal pressure may accelerate regulatory tightening and cryptocurrency taxation.

Long-term, however, presents a paradox for crypto investors. As fiscal instability deepens, Bitcoin’s “digital gold” narrative strengthens. The worse traditional finance performs, the stronger the case for assets outside the system becomes.

Stablecoins: Crisis Meets Solution

Washington has found an unexpected ally in its fiscal troubles. The GENIUS Act, signed in July 2025, requires stablecoin issuers to maintain 100% reserves in US dollars or short-term Treasury bills. This effectively transforms stablecoin companies into structural buyers of government debt.

Treasury Secretary Scott Bessent declared stablecoins “a revolution in digital finance” that will “lead to a surge in demand for US Treasuries.”

Standard Chartered estimates stablecoin issuers will purchase $1.6 trillion in T-bills over four years—enough to absorb all new issuance during Trump’s second term. This would exceed China’s current Treasury holdings of $784 billion, positioning stablecoins as a replacement buyer as foreign central banks reduce US debt exposure.

The Debt Service Era Begins

America’s fiscal crisis is paradoxically opening doors for cryptocurrency. While conventional investors rush toward gold, stablecoins are quietly becoming critical infrastructure for US debt markets. Washington’s embrace of stablecoin regulation is not merely about innovation—it is about survival. The debt service era has begun, and crypto may be its unlikely beneficiary.

The post US Debt Interest Hits $1T: The Hidden Catalyst for Stablecoin Adoption appeared first on BeInCrypto.

Korean Investors Cashed Out This Year, BOK Says: Global Implications

24 December 2025 at 07:46

The Bank of Korea’s latest Financial Stability Report reveals a significant behavioral shift among Korean crypto investors—from aggressive accumulation to strategic profit-taking, raising questions about the impact on global market dynamics.

This means that, even as Bitcoin surged past $100,000 this year, Korean investors have been cashing out rather than doubling down.

Korea’s Outsized Trading Activity Shows Signs of Cooling

South Korea has long punched above its weight in global cryptocurrency markets. Despite representing a fraction of the world’s population, Korean won (KRW) trading pairs have consistently ranked among the top two fiat currencies globally by volume, often rivaling or exceeding the U.S. dollar during peak periods.

But the BOK’s report suggests a notable change in investor behavior. While Korea’s crypto turnover rate remains elevated at 156.8%—significantly higher than the global average of 111.6%—the nature of that activity has shifted. Rather than chasing rallies, Korean retail investors are now taking profits during the 2025 bull market.

“The domestic crypto market shows high turnover rates as most participants are individual investors who tend to realize gains through short-term trading,” the central bank noted.

Concentration Risks and Market Structure Concerns

The report highlights a striking level of market concentration: the top 10% of investors accounted for 91.2% of total trading volume between 2024 and June 2025, according to Financial Supervisory Service data. This concentration raises concerns about potential price manipulation by a small number of players.

Korea’s unique regulatory environment—which effectively bars corporate participation and prohibits foreign investors from trading on domestic exchanges—has created a market dominated almost entirely by retail traders. The absence of professional market makers has also led to liquidity constraints, as evidenced by Tether’s 5x spike on Bithumb during the October market downturn.

The Global Ripple Effect

When Korean traders pull back, global markets notice. Historical data shows that during the 2017 and 2021 bull runs, Korean exchanges like Upbit and Bithumb frequently ranked among the top in global volume. The so-called “Kimchi Premium“—where Korean crypto prices traded above international benchmarks—served as a reliable indicator of retail euphoria.

The current shift to profit-taking behavior may have contributed to the more measured pace of the 2025 rally compared to previous cycles. With Korean retail investors no longer providing the same level of aggressive bid support, global order books have lost a significant source of buying pressure during key accumulation phases.

The shift is not happening in a vacuum. The BOK’s previous report has attributed the domestic crypto slowdown to a booming local stock market. The KOSPI surged by more than 70% year to date to become the world’s top-performing major index, driven by AI-related stocks such as Samsung Electronics and SK Hynix.

Daily trading volumes on major Korean crypto platforms have collapsed by over 80% compared to 2024 peaks, as local investors redirect capital toward equities and US leveraged ETFs. “Where did all the Korean retail investors in the crypto circle go? Answer: To the stock market next door,” analyst AB Kuai Dong observed.

Diverging Paths: Korea vs. Global Institutional Adoption

The contrast with global market trends is stark. While Korea remains retail-dominated, international markets have undergone rapid institutionalization since the SEC approved spot Bitcoin ETFs in January 2024. These products have attracted over $54 billion in net inflows, with BlackRock’s IBIT alone amassing more than $50 billion in assets under management.

The BOK report acknowledges this divergence, noting that global crypto markets have become increasingly correlated with traditional equities—particularly during periods of macroeconomic stress or monetary policy shifts. Bitcoin’s correlation with the S&P 500 has risen notably since 2020, driven by institutional participation, corporate treasury adoption, and the proliferation of ETFs.

Korea’s market, by contrast, remains relatively insulated from these global dynamics. The central bank attributes this to high retail investor concentration, liquidity constraints, and capital controls that limit arbitrage opportunities.

What Comes Next: Institutionalization on the Horizon

The report suggests that Korea’s market peculiarities may diminish as regulatory reforms proceed. The government permitted non-profit corporations to sell crypto assets starting in June and has since allowed professional investors to trade on a trial basis. Discussions are also ongoing regarding the approval of a spot Bitcoin ETF.

The BOK projects that allowing financial institutions and foreign investors to participate could help establish proper market-making mechanisms and ease liquidity constraints. Increased institutional participation would likely reduce trading volume volatility and lower turnover rates over time.

However, the central bank also warns of potential risks. “When corporate and foreign investors with superior information and capital enter the market, domestic crypto prices may become more sensitive to supply-demand shifts,” the report cautioned, emphasizing the need for careful monitoring during the transition.

The Bottom Line

Korea’s crypto market is at an inflection point. The shift from aggressive buying to profit-taking signals a maturing investor base, but it also removes a key source of global market momentum. As institutional frameworks develop and regulatory barriers fall, Korea’s influence on global crypto dynamics may evolve from raw retail volume to more sophisticated capital flows.

For now, the days of Korean retail traders single-handedly driving global rallies appear to be fading—a transition that could reshape market sentiment patterns for cycles to come.

The post Korean Investors Cashed Out This Year, BOK Says: Global Implications appeared first on BeInCrypto.

Why Silver Could Outperform Gold and Bitcoin in 2026

24 December 2025 at 07:30

Silver emerged as one of the strongest-performing major assets in 2025, sharply outperforming both gold and Bitcoin. 

The rally was not driven by speculation alone. Instead, it reflected a rare convergence of macroeconomic shifts, industrial demand, and geopolitical pressure that could extend into 2026.

Silver’s 2025 Performance in Context

By late December 2025, silver traded near $71 per ounce, up more than 120% year-to-date. Gold rose roughly 60% over the same period, while Bitcoin ended the year slightly lower after a volatile run that peaked in October.

Silver price entered 2025 near $29 per ounce and climbed steadily through the year. Gains accelerated in the second half as supply deficits widened and industrial demand surprised to the upside.

Silver Price Chart In 2025. Source: BullionVault

Gold also rallied strongly, moving from roughly $2,800 to above $4,400 per ounce, supported by falling real yields and central-bank demand. 

However, silver outpaced gold by a wide margin, consistent with its historical tendency to amplify precious-metal cycles.

Gold Price Chart In 2025. Source: BullionVault

Bitcoin followed a different path. It surged to a record near $126,000 in early October before reversing sharply, ending December near $87,000

Unlike metals, Bitcoin failed to hold safe-haven inflows during late-year risk-off moves.

Macro Conditions Favored Hard Assets

Several macroeconomic forces supported silver in 2025. Most importantly, global monetary policy shifted toward easing. The US Federal Reserve delivered multiple rate cuts by year-end, pushing real yields lower and weakening the dollar.

At the same time, inflation concerns remained unresolved. That combination historically favors tangible assets, particularly those with monetary and industrial value.

Unlike gold, silver benefits directly from economic expansion. In 2025, that dual role proved decisive.

This is a 50-Yr chart of Silver futures
The red arrow marks my 1st trade in Silver
The $50 level rejected Silver in 1981 and 2011
The price has now sliced above $50
Corrections should find support in the low $50s
Upside targets exist at $87 and eventually $200-plus$SI_F pic.twitter.com/sz076mdeP1

— Peter Brandt (@PeterLBrandt) December 13, 2025

Industrial Demand Became the Core Driver

Silver’s rally was increasingly anchored in physical demand rather than investment flows. Industrial usage accounts for roughly half of total silver consumption, and that share continues to grow.

The energy transition played a central role. Solar power remained the single largest source of new demand, while electrification across transport and infrastructure added further pressure to already tight supply.

Global silver markets recorded a fifth consecutive annual deficit in 2025. Supply struggled to respond, as most silver production comes as a byproduct of base-metal mining rather than primary silver projects.

Most of silver demand is industrial and those users don't care if the price is 5x, because silver is only a small part of their products.

Industrial demand (mainly solar) continues to rise.

Also retail demand in Asia is now INCREASING along with rising prices.

— GoldSilver HQ (@GoldSilverHQ) December 23, 2025

Electric Vehicles Added Structural Demand

Electric vehicles significantly increased silver consumption in 2025. Each EV uses 25 to 50 grams of silver, roughly 70% more than an internal-combustion vehicle.

With global EV sales rising at double-digit rates, automotive silver demand climbed into the tens of millions of ounces annually. 

Charging infrastructure amplified the trend. High-power fast chargers use kilograms of silver in power electronics and connectors.

Unlike cyclical investment demand, EV-related silver consumption is structural. Production growth directly translates into sustained physical offtake.

Silver $71 today.
Just the beginning.
I completed a detailed analysis of Samsung's new battery technology. Production begins in 2027. (Confirmed by Samsung.) Approximately 1 kg of silver will be needed per EV. And Samsung's silver-carbon batteries will also be widely used across…

— HealthRanger (@HealthRanger) December 23, 2025

Defense Spending Quietly Tightened Supply

Military demand became a less visible but increasingly important factor. Modern weapons systems rely heavily on silver for guidance electronics, radar, secure communications, and drones.

A single cruise missile can contain hundreds of ounces of silver, all of which is destroyed upon use. That makes defense demand non-recyclable.

Global military spending reached record highs in 2024 and continued rising in 2025 amid wars in Ukraine and the Middle East

Europe, the United States, and Asia all expanded procurement of advanced munitions, quietly absorbing physical silver.

Geopolitical Shocks Reinforced the Trend

Geopolitical tensions further strengthened silver’s case. Prolonged conflicts increased defense stockpiling, while trade fragmentation raised concerns about supply security for critical materials.

Unlike gold, silver sits at the intersection of national security and industrial policy. Several governments moved to classify silver as a strategic material, reflecting its role in both civilian and military technologies.

This dynamic created a rare feedback loop: geopolitical risk boosted both safe-haven investment demand and real industrial consumption.

The rise in the price of gold and silver from 2001 through 2008 was a sign of a major Fed policy error and a harbinger of the 2008 financial crisis. The current rally that began in 2024 is signaling a bigger policy error that will have even more profound consequences for the U.S.

— Peter Schiff (@PeterSchiff) December 22, 2025

Why 2026 Could Extend the Outperformance

Looking ahead, most of the drivers that powered silver price in 2025 remain in place. EV adoption continues to accelerate. Grid expansion and renewable investment remain policy priorities. Defense budgets show no signs of retreat.

At the same time, silver supply remains constrained. New mining projects face long lead times, and recycling cannot offset growing industrial losses from military use.

Gold may continue to perform well if real yields stay low. Bitcoin may recover if risk appetite improves. But neither combines monetary protection with direct exposure to global electrification and defense spending.

That combination explains why many analysts see silver as uniquely positioned for 2026.

Looks like silver is going to be a shocker for most. While a significant group of investors is still in denial and do not realize that we are in a new realities constantly waiting for a pullback, silver keeps pushing higher and higher. My immediate target is $75 – 80. Let's wait… pic.twitter.com/ni35W0lIwd

— Rashad Hajiyev (@hajiyev_rashad) December 22, 2025

Silver’s 2025 rally was not a one-off speculative spike. It reflected deep structural changes in how the global economy consumes the metal.

If current trends persist, silver’s dual role as a monetary hedge and industrial necessity could allow it to outperform both gold and Bitcoin again in 2026.

The post Why Silver Could Outperform Gold and Bitcoin in 2026 appeared first on BeInCrypto.

What are the Top Crypto Narratives Worth Paying Attention to in 2026?

24 December 2025 at 06:30

Crypto’s next phase of growth is unfolding quietly, with crypto narratives shifting toward everyday use. Adoption in 2026 is increasingly shaped by how people already use crypto in daily financial life.

In an interview with BeInCrypto, representatives from CakeWallet and SynFutures explained where crypto is realistically headed over the next year. According to them, payments, savings, and risk management are replacing speculation as the main drivers of sustained activity.

Crypto as Everyday Money

One of the clearest signs of real crypto adoption heading into 2026 is its growing role as everyday money, particularly in regions where traditional financial systems are unreliable or inaccessible. 

Rather than being used for speculation, crypto is increasingly becoming a practical tool for saving, spending, and transferring value.

“The answer to this varies widely based on where in the world you are, but I see two massive cases for growth in 2026,” said Seth for Privacy, Vice President of CakeWallet. “The first is in the Global South, where demand for stablecoins has skyrocketed in the last few years.”

Crypto adoption shifts from wallet counts to weekday spending as new behavioral metrics and loyalty economics redefine what real usage means. pic.twitter.com/Hv014vx6Ej

— Kira (@Kira_Crypto247) December 22, 2025

In these regions, crypto often fills gaps left by inflation, capital controls, or weak banking infrastructure. Stablecoins, in particular, allow people to hold value in a currency that does not rapidly depreciate, while remaining easy to transfer.

“The possibility for an average person in Nicaragua, for instance, to use stablecoins like USDT in a privacy-preserving way to store wealth and pay for real needs will help to protect and shield them against malice and theft,” the executive explained.

As crypto becomes more visible, privacy also becomes more important. For users relying on crypto for daily expenses, protecting transaction data is less about ideology and more about personal safety. 

In this context, adoption is driven by necessity rather than enthusiasm, and growth continues regardless of market cycles.

As these use cases mature, the tools supporting them—especially stablecoins—are becoming increasingly central to how crypto functions globally.

Stablecoin Yield and Payments

While stablecoins have long been associated with emerging markets, their role is expanding rapidly across more developed economies as well. In 2026, they are increasingly positioned as a core financial tool rather than a temporary bridge between crypto and fiat.

“By far the biggest market left untapped today is the West,” Seth said. “Many people have overlooked the usefulness of stablecoins due to easy access to banking and fiat on-ramps.”

Our 2026 Infra Year Ahead Report is out now!

Stablecoins have become the most important infrastructure story in crypto.

Every fintech wave promised to fix payments but just layered better UX on the same infrastructure. Revolut and Nubank delivered better experiences while… pic.twitter.com/zEhC6sndmv

— Delphi Digital (@Delphi_Digital) December 17, 2025

However, that perception may shift as users begin to compare the speed and simplicity of stablecoin transfers with traditional financial rails. For many, the appeal lies in avoiding delays, fees, and unnecessary intermediaries.

“Once these users grasp how much easier it is to move back and forth between something like Bitcoin and USDT instead of fiat, the pace of adoption will escalate exponentially,” he added. 

Stablecoins are increasingly shaping how on-chain financial activity functions. More users will likely be attracted to stablecoins for passive income in 2026, tapping into DeFi yield.

“Stablecoins are becoming the base layer of DeFi trading and derivatives markets,” said Wenny Cai, COO at SynFutures. She added that, rather than sitting idle, these assets are increasingly used as active balances. Users are beginning to treat stablecoins as “working capital—funds that are actively deployed, not just parked.”

This shift in how value is held and moved is also changing how users interact with crypto beyond simple payments.

When Usage Becomes Intentional

As crypto markets mature, user behavior is changing alongside them. Instead of chasing short-term price movements, many users are focusing on using crypto in more controlled and intentional ways.

“We’ll see them shift to using crypto as money, finally!” Seth told BeInCrypto. “When speculation dies down and prices stabilize, we will continue to see massive growth in usage of crypto to actually pay for goods and services.”

At the same time, some users are engaging with tools that allow them to better manage exposure and uncertainty. According to Cai, retail users in 2026 are gravitating toward active capital management, not passive speculation.

Rather than overdiversifying, users are narrowing their focus.

“Instead of buying and holding dozens of tokens, users increasingly prefer to trade major assets with leverage, hedge downside risk, or deploy structured strategies—all on-chain,” she explained.

While the underlying mechanics can be complex, the motivation is straightforward. Users want more control, clearer outcomes, and fewer surprises.

As user behavior evolves, adoption is also broadening across different groups and industries.

DeFi and TradFi Integration

Crypto adoption in 2026 is not limited to a single demographic

Instead, it spans individuals, businesses, and professional market participants, each driven by different needs.

“The biggest overall growth is still happening in the Global South, where real people have real needs today, not just a desire to speculate,” Seth explained. “Poor access to banking, rapidly depreciating fiat currencies, and harsh remittance controls make these countries especially ready to accelerate their usage of crypto in 2026.”

"But no one uses it as money!"

For years, skeptics dismissed Bitcoin with the same tired line: "No one actually uses it for payments."

That argument no longer stands up under scrutiny.

As of mid-December 2025, there are now 24,113 verified bitcoin-accepting merchants… pic.twitter.com/xpL00iY8cp

— Alex Stanczyk ∞/21m (@alexstanczyk) December 17, 2025

In parallel, professional users are increasingly integrating crypto tools into existing operations.

“Beyond fintech, trading firms, digital asset managers, and online brokerages are leading adopters of DeFi tools in 2026,” Cai said.

What has changed is readiness. Infrastructure has improved, platforms are more stable, and tools now support consistent, high-volume activity. As a result, adoption is no longer framed as experimentation but as a practical business decision.

Yet even as adoption broadens, one challenge continues to shape how far crypto can realistically expand.

Platforms that Make Crypto Easy to Use

Across both interviews, one common conclusion stands out: the main barrier to broader adoption is no longer technical capability, regulation, or liquidity.

“Absolutely user experience,” said Seth when asked what would most unlock crypto’s growth in 2026. “For too long, crypto tools have been built ‘by nerds and for nerds’.”

Cai echoed that view from the trading side

“The infrastructure works, liquidity exists, and demand is proven—but advanced trading tools still feel intimidating to many users,” she said.

As crypto enters its next phase, success will increasingly depend on clarity and simplicity. Platforms that make powerful tools feel intuitive and safe are likely to capture sustained usage.

In 2026, the crypto narratives that matter most may be the ones users barely notice—because they simply work.

The post What are the Top Crypto Narratives Worth Paying Attention to in 2026? appeared first on BeInCrypto.

Ethereum Nears $3,000 as Bitmine Expands Holdings to 4 Million ETH

24 December 2025 at 06:00

Ethereum is once again attempting to reclaim the $3,000 level after several failed efforts this month. ETH briefly pushed higher during early trading but continues facing resistance amid fragile broader market conditions. 

Despite muted momentum, on-chain data suggests investors may be positioning to support a potential recovery.

Ethereum Holders Continue To Grow

Ethereum’s network growth has surged to a four-year and seven-month high. This metric reflects the pace at which new addresses are joining the network. The increase signals renewed interest at current price levels, even as ETH struggles to break higher.

Rising network growth often introduces fresh capital. New participants expand liquidity and strengthen demand foundations. For Ethereum, this trend is particularly important as price recovery depends on sustained inflows rather than short-term speculative trading. Strong address growth suggests long-term confidence remains intact.

Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.

Ethereum Network Growth
Ethereum Network Growth. Source: Santiment

Bitmine Could Be Aiding Price Recovery

A major contributor to this growth is Bitmine. The firm has quickly accumulated Ethereum through its treasury strategy. Bitmine now holds approximately 4.066 million ETH, representing 3.37% of the total supply within six months.

The company has publicly targeted ownership of 5% of all ETH, a move that could further tighten circulating supply and support price appreciation.

Macro indicators present a mixed backdrop. The MVRV Long/Short Difference remains at low negative levels, indicating neither long-term holders nor short-term traders are currently in profit. This lack of profitability often slows transaction activity, as participants hesitate to move assets at a loss.

Low profit conditions can suppress velocity across the network. However, such environments also reduce sales pressure. If broader macro conditions improve, long-term holders typically act as stabilizers. Their reluctance to sell at unfavorable prices can provide a base for recovery when demand returns.

Ethereum’s current setup reflects this balance. Weak profitability limits enthusiasm, yet it also prevents aggressive distribution. A positive external catalyst could shift sentiment quickly, allowing stronger hands to absorb supply and push ETH higher.

Ethereum MVRV Long/Short Difference
Ethereum MVRV Long/Short Difference. Source: Santiment

ETH Price Faces Its Challenge

Ethereum trades near $2,968 at the time of writing, sitting just below the $3,000 resistance. The level has capped price action repeatedly in recent weeks. Continued failure to reclaim it keeps ETH vulnerable to volatility and short-term pullbacks.

To revisit December’s high of $3,447, ETH requires a recovery of roughly 16%. The first hurdle remains $3,131, a key resistance zone. Sustained network growth and continued accumulation by large entities like Bitmine could provide the buying pressure needed to reach this level.

ETH Price Analysis.
ETH Price Analysis. Source: TradingView

Downside risks persist if Ethereum fails to secure $3,000 as support. A rejection could send the price back toward $2,798, a level previously tested. Given ETH’s tendency for sharp moves in this range, a breakdown could accelerate losses before stability returns.

The post Ethereum Nears $3,000 as Bitmine Expands Holdings to 4 Million ETH appeared first on BeInCrypto.

Three Financial Giants Predict Why Crypto Faces Its Hardest Test Yet in 2026

24 December 2025 at 05:30

This year, crypto looked less like an experiment and more like a maturing market, shaped by institutional consolidation, faster-moving regulation, and growing macroeconomic pressure. 

As the industry moves toward 2026, its direction will depend on which assets can withstand institutional scrutiny and how recession risk, monetary policy shifts, and stablecoin adoption reshape crypto’s place within the dollar-based financial order.

Institutional Capital Forces Crypto Consolidation

Throughout 2025, BeInCrypto spoke with veteran investors and leading economists to assess where the crypto industry is headed and what lies ahead for a sector long defined by uncertainty.

Shark Tank investor Kevin O’Leary starts from a simple premise. As institutional capital moves in, crypto shifts away from endless token hunting and toward a narrow set of assets that can justify long-term allocation.

He pointed to his own experience as a case study. O’Leary began as a crypto skeptic, but as regulation started to take shape, he chose to gain exposure.

At first, that meant buying broadly. His portfolio grew to 27 tokens. He later concluded that the approach was excessive. Today, he holds just three cryptocurrencies, which he said are more than enough for his needs.

“If you statistically look at the volatility of just Bitcoin and Ethereum and a stablecoin for liquidity… That’s all I need to own,” O’Leary told BeInCrypto in a podcast episode.

For O’Leary, each asset serves a specific function. He described Bitcoin as an inflation hedge, often comparing it to digital gold defined by scarcity and decentralization. 

Ethereum, by contrast, serves not as a currency but as core infrastructure for a new financial system, with long-term growth tied to its technology. Stablecoins, he noted, were held for flexibility rather than upside.

🦈 Kevin O’Leary says Ethereum is not just a trend but a market shift.

What drives this shift: scalability, trust, or something bigger? pic.twitter.com/yLV5sE7Bhi

— BeInCrypto (@beincrypto) September 9, 2025

That framework informs his outlook for 2026. As regulation advances and institutional participation deepens, O’Leary expects capital to concentrate around Bitcoin and Ethereum as the market’s core holdings. Other tokens will struggle to justify sustained allocation and will compete largely on the margins.

In that environment, crypto investing shifts away from speculation and toward disciplined portfolio construction, closer to how traditional asset classes are managed.

But even as investors narrow their holdings, the issue of who ultimately controls crypto’s monetary rails is becoming more complicated.

Dollar Control Moves Onchain

While investors like O’Leary focus on narrowing exposure, Greek economist and former finance minister Yanis Varoufakis pointed to a different shift.

In a BeInCrypto podcast episode, he argued that control over crypto’s monetary infrastructure is tightening, particularly as stablecoins move under closer state and corporate oversight.

Varoufakis pointed to recent US policy as a turning point. By advancing legislation such as the GENIUS Act, Washington is embracing a stablecoin-based extension of the dollar system. Rather than challenging the existing financial order, stablecoins are being positioned to reinforce it.

Wall Street’s next move to control crypto https://t.co/ixPa4ZoOZh

— Yanis Varoufakis (@yanisvaroufakis) October 30, 2025

He linked this approach to the logic of the so-called Mar-a-Lago Accord, which seeks to weaken the dollar’s exchange value while preserving its dominance in global payments. That contradiction sits at the center of his concern.

Varoufakis warned that this model outsources monetary power to private issuers, increasing financial concentration while reducing public accountability. The risks, he said, extend beyond the US, as dollar-backed stablecoins spread across foreign economies.

“As we speak, there are Malaysian companies, Indonesian companies, and companies here in Europe that increasingly use Tether… which is a huge problem. Suddenly, these countries… end up with central banks that do not control their money supply. So their capacity to effect monetary policy diminishes and that introduces instability,” Varoufakis said in a BeInCrypto podcast episode.

Looking ahead to 2026, he described stablecoins as a systemic fault line. 

A major failure could trigger a cross-border financial shock, exposing crypto’s deepest vulnerability, not volatility, but its growing entanglement with legacy power structures.

These risks remain largely theoretical in calm conditions. The real test comes when growth slows, liquidity tightens, and markets begin to strain.

Former economic advisor to Ronald Reagan, Steve Hanke, warned that such a stress test is approaching.

Economic Slowdown Stress Tests Markets

In a BeInCrypto podcast episode, the Johns Hopkins professor of applied economics said the US economy is heading toward a recession, driven not by inflation but by policy uncertainty and weak monetary growth.

Hanke pointed to inconsistent tariff policy and expanding fiscal deficits as key drags on investment and confidence. 

“When you have that, investors that are investing in, let’s say, a new factory or something, hunker down and say, ‘well, we’re going to wait and let the dust settle to see what’s going to happen.’ They stop investing,” Hanke said.

As economic conditions deteriorate, Hanke expects the Federal Reserve to continue to respond with looser monetary policy.

He did not address crypto directly. His macro outlook, however, defines the conditions under which crypto will be tested.

Tight liquidity followed by sudden easing has historically exposed weaknesses across financial markets, particularly in systems reliant on leverage or fragile confidence.

For crypto, the implication is structural rather than speculative. 

In an environment shaped by recession risk and policy volatility, stress reveals what growth conceals. What endures is not what expands fastest, but what is built to withstand contraction.

The post Three Financial Giants Predict Why Crypto Faces Its Hardest Test Yet in 2026 appeared first on BeInCrypto.

Russia Plans New Crypto Regulation for 2026

24 December 2025 at 04:30

The Central Bank of Russia unveiled a long-awaited conceptual framework to regulate crypto trading on December 23, marking a decisive shift from ad-hoc restrictions toward a structured, licensed market.

Under the proposal, cryptocurrencies and stablecoins will be legally recognized as currency values that can be bought and sold. However, they remain prohibited as a means of payment inside Russia. 

What the New Framework Introduces

The central bank submitted its legislative proposals to the Government of Russia for review.

The announcement marks the largest effort yet to bring crypto activity under formal financial supervision, while maintaining strict controls on retail risk and capital flows.

The proposal establishes a two-tier investor model, separating retail and professional participants.

Non-qualified investors will be allowed to purchase only the most liquid cryptocurrencies, as defined in future legislation. 

Access will require passing a mandatory risk-knowledge test, and purchases will be capped at 300,000 rubles per year.

Qualified investors will face fewer restrictions. They will be permitted to buy any cryptocurrency except anonymous tokens whose smart contracts conceal transaction data. 

Volume limits will not apply, although risk-awareness testing remains mandatory.

The central bank emphasized that cryptocurrencies remain high-risk instruments, citing volatility, lack of sovereign backing, and sanctions exposure.

Russia is leading Europe in crypto use, over $376B moved in a year, says Chainalysis.

While others talk about regulation, Russians are actually using crypto for real needs; trading, saving, and moving money fast.

Quiet adoption, big numbers. pic.twitter.com/2XcmYx8ioB

— Tom Tucker (@WhatzTheTicker) October 16, 2025

How This Differs From Russia’s Current Stance

Until now, Russia’s crypto policy has been fragmented. Ownership and trading were legal in practice but lacked a clear regulatory pathway. 

Retail access operated in a gray zone, intermediaries faced uncertainty, and enforcement relied on informal restrictions rather than explicit market rules.

The new concept formalizes what was previously tolerated, while sharply narrowing how retail investors can participate. 

It also confirms that Russia will regulate crypto activity through existing financial infrastructure, allowing exchanges, brokers, and trust managers to operate using their current licenses. Additional requirements will apply to crypto-specific depositaries and exchange services.

The framework also clarifies cross-border rules. Russian residents will be allowed to buy crypto abroad using foreign accounts and transfer crypto overseas through Russian intermediaries, provided they notify tax authorities.

Timeline and Enforcement

The central bank plans to finalize the legislative base by July 1, 2026. From July 1, 2027, illegal crypto intermediation will trigger liability comparable to penalties for illegal banking activity.

This phased approach gives market participants time to align with licensing, disclosure, and compliance requirements.

How Russia’s Approach Compares Globally

AreaRussia (BoR Concept)EU (MiCA)United States
Legal statusInvestment asset (“currency value”), not paymentRegulated crypto marketFragmented federal & state oversight
Retail accessAllowed with testing and strict capsAllowed via disclosure regimeBroad, no federal caps
IntermediariesExisting licenses + added crypto rulesMandatory CASP licensingMulti-agency framework
StablecoinsTradable, payment banHeavily regulatedFederal stablecoin law in place
EnforcementPhased, starts 2027Already activeOngoing agency enforcement

Overall, Russia is not liberalizing crypto in the Western sense. 

Instead, it is moving crypto out of the gray market, tightening supervision, limiting retail exposure, and positioning regulated crypto trading as an extension of its traditional financial system.

The post Russia Plans New Crypto Regulation for 2026 appeared first on BeInCrypto.

Solana Eyes Recovery as Investors Quitely Accumulate $345 Million Worth of SOL

24 December 2025 at 04:00

Solana slipped out of last week’s consolidation after failing to sustain upside momentum, delaying a recovery toward $150. SOL has since traded cautiously, awaiting stronger confirmation. 

Recent on-chain and institutional activity suggests investors are positioning for a rebound, potentially setting the stage for renewed price strength into year-end or early January.

Solana Holders Have The ETF Leash

Solana’s ecosystem is introducing a novel catalyst through on-chain “Creator ETFs,” also known as Bands, launched via Bands.fun. These products differ from traditional exchange-traded products. They operate directly on the Solana blockchain as programmable portfolios curated by creators, analysts, or influencers.

Creator ETFs can bundle tokens or NFTs and rebalance automatically based on a predefined rule. Increased adoption could lift on-chain activity and transaction volume. Higher network usage often supports price recovery by strengthening demand for SOL as a utility asset.

Institutions See Potential

Exchange balance data adds another constructive signal. Solana balances on centralized exchanges have dropped sharply over the past 10 days. During this period, investors accumulated roughly 2.65 million SOL, valued at $345 million.

Declining exchange balances typically indicate accumulation rather than distribution. Holders appear willing to move assets into self-custody, reducing immediate sell pressure. This behavior suggests confidence in Solana’s longer-term outlook and supports the case for stabilization following recent weakness.

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Solana Exchange Balance
Solana Exchange Balance. Source: Glassnode

Institutional sentiment toward Solana remains resilient despite broader market uncertainty. CoinShares’ weekly report shows SOL attracted $48.5 million in inflows for the week ending December 20. Month-to-date inflows now stand at $117.6 million.

These allocations indicate sustained institutional interest. Professional investors often accumulate during consolidation phases. Continued inflows can help offset retail selling and provide a foundation for recovery when market conditions improve.

Solana Institutional Flows.
Solana Institutional Flows. Source: CoinShares

SOL Price Is Aiming At Recovery

Solana trades near $124 at the time of writing, sitting below the $126 resistance. The combination of on-chain innovation, exchange outflows, and institutional inflows could support a recovery attempt by late December or early January.

A break above $126 would be an initial confirmation. Reclaiming $130 would further strengthen sentiment. The key upside target sits near $136. Clearing this level would signal progress toward recouping losses recorded earlier this month.

Solana Price Analysis.
Solana Price Analysis. Source: TradingView

Downside risks persist if selling resumes or broader markets weaken. Solana’s price dropping below $123 could expose the $118 support. Losing that level would invalidate the bullish thesis and delay any recovery driven by ecosystem or institutional catalysts.

The post Solana Eyes Recovery as Investors Quitely Accumulate $345 Million Worth of SOL appeared first on BeInCrypto.

Chinese Groups Have Transformed Telegram into the Dark Web of Crypto Scams

24 December 2025 at 02:30

Chinese-language networks operating on Telegram have become the backbone of the world’s largest illicit crypto economy. 

These groups have surpassed the dark web in fusing scams, AI-driven deception, and money laundering into a single, industrial system.

Telegram Markets Now Dwarf Historical Dark Web Giants

The scale is unprecedented. Elliptic data shows Huione Guarantee, later rebranded as Haowang Guarantee, processed $27 billion between 2021 and 2025. 

That figure exceeds every major dark web market in history.

Over recent years, we've supplied @okx with crypto threat intelligence via multiple channels, and their compliance progress is notable.

Data shows a significant decrease in risky USDT deposits from Huione&Tudou Guarantee.

We will continue monitoring this. @star_okx pic.twitter.com/f7zHpzra8j

— Bitrace (@Bitrace_team) October 15, 2025

After Telegram banned Huione in May, activity migrated. Two markets now dominate:

  • Tudou Guarantee: roughly $1.1 billion per month
  • Xinbi Guarantee: roughly $850 million per month

Combined monthly volume now surpasses what AlphaBay processed over its entire lifetime.

Why Telegram Replaced the Dark Web

Telegram offers public channels, escrow-like systems, and instant global reach. Users need no Tor browser or technical knowledge.

Markets recreate classic darknet features:

  • Vendor reputation systems
  • Escrow and dispute resolution
  • Stablecoin settlement
  • Rapid rebranding after bans

In practice, Telegram has become a “dark web without friction.”

Be careful ⚠️⚠️⚠️

a FAKE telegram channel is trying to scam Smardex holders

There is NO V3 migration,
DO NOT FALL FOR SUCH SCAM

the official updates can ONLY be received through their website https://t.co/Ghz45GSSnI, their X: @SmarDex and their official TG (its link is in… pic.twitter.com/cESr07yx4e

— Crypto Feras  (@CryptoFeras) November 5, 2025

Crypto Scam Markets Feed a Global Fraud Industry

These markets do not sell drugs or weapons at scale, but they sell scam infrastructure.

The primary customer base is the pig-butchering scam industry. These long-term romance and investment scams generate roughly $10 billion annually from US victims alone, according to federal data.

Operations are concentrated in Southeast Asia. Many rely on trafficked labor held in scam compounds.

Telegram markets provide:

  • Money-laundering services
  • Fake investment platforms
  • Stolen identities
  • Telecom and social-engineering tools

The scam economy and the markets grow together.

AI Face-Swap Tools Supercharge Fraud

A key accelerant is artificial intelligence. Chinese-language Telegram groups actively sell:

  • Real-time face-swap software
  • Voice-cloning tools
  • Deepfake identity kits

These tools allow scammers to impersonate real people on video calls. They dramatically increase trust and conversion rates.

Threat analysts describe this as the industrialization of social engineering. Scams now operate with assembly-line efficiency.

Look at this, what appears to be a SCAM site that is fully AI generated.

What is the government doing to stop these? Nothing at all?

All that talent going toward scamming new crypto users… on Twitter, Telegram, etc.

www_youtube_com/@cryptotopstories <– SCAM!!!… pic.twitter.com/HG1w0Lkx3e

— Jae Kwon – "godfather of proof-of-stake" (@jaekwon) November 22, 2025

USDT Is the Financial Backbone

Nearly all transactions settle in Tether (USDT). Unlike decentralized cryptocurrencies, USDT can be frozen. That capability exists but is rarely used at scale.

As a result, the most centralized stablecoin underpins the largest illicit crypto markets ever recorded. This dependency concentrates risk across scams, money laundering, and cross-border fraud.

Telegram has removed major markets before. Each time, replacements emerged within weeks.

Ownership stakes shift between markets. Liquidity follows instantly.

Elliptic tracks roughly 30 Chinese-language Telegram markets today. Together, they move tens of billions of dollars annually, mostly through crypto. 

Enforcement pressure remains fragmented and inconsistent.

Overall, this is no longer a niche cybercrime story.

Public messaging platforms now host global illicit finance at scale. Language-based networks matter more than geography; tools are reshaping fraud economics.

The result is a criminal ecosystem larger than anything the dark web ever produced. And it operates in plain sight.

Without a coordinated platform, stablecoin, and law-enforcement action, this system will keep growing.

The post Chinese Groups Have Transformed Telegram into the Dark Web of Crypto Scams appeared first on BeInCrypto.

XRP Sentiment Has Collapsed — And That May Be the Setup Bulls Are Waiting For

24 December 2025 at 02:00

XRP price has quietly slipped into an uncomfortable spot. The price is down about 9% over the past 30 days, momentum feels stale, and positive social chatter around the token has turned noticeably sour. At first glance, that looks like weakness. But XRP has a history of doing its best work when enthusiasm disappears.

This time, the problem dragging sentiment lower may also be the exact condition that sets up the next move. Possibly led by a key holder group.

The Problem: Positive Sentiment Collapses as Short-Term Holders Exit

The core issue is not price. It is sentiment.

XRP’s positive social sentiment has dropped to a three-month low, falling sharply from recent highs. This metric tracks how often XRP is discussed positively across social platforms. When it collapses, it signals crowd fatigue rather than panic buying.

History shows this matters.

In mid-October, a similar sentiment drop preceded a rally of roughly 15% over the following days. In early November, another local low in positive sentiment was followed by a 17% advance within a week. Late November showed the same pattern, with prices rising about 14% after sentiment hit a trough.

Collapsing Positive Sentiment: Santiment

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This time, the sentiment drop is deeper than those prior lows.

😨 XRP is seeing far more negative social media commentary than average. Historically, this setup leads to price rises. When retail has doubts about a coin's ability to rise, the rise becomes significantly more likely.

🔗 Monitor $XRP sentiment here: https://t.co/hYbezd8qH0 pic.twitter.com/FOcIlRb9BQ

— Santiment (@santimentfeed) December 22, 2025

That sentiment dip could be powered by the short-term holders. HODL Waves, which track how long coins have been held, show that wallets holding XRP for one day to one week have reduced their supply share sharply. This cohort held about 2.97% of the supply earlier this month. That figure has now fallen to roughly 1.18%, a drop of more than 60%.

Short-Term Cohorts Fueling The Lack Of Positivity
Short-Term Cohorts Fueling The Lack Of Positivity: Glassnode

In simple terms, fast, possibly retail, money has lost interest and moved on. That is the problem weighing on XRP sentiment. The next section highlights why it isn’t such a bad thing.

The Solution: Long-Term Holders Are Selling Less, Not More

Here is where the story changes.

While short-term holders are exiting, long-term holders are doing the opposite. Data tracking long-term holder net position change shows that selling pressure from these wallets has dropped meaningfully.

Earlier this month, long-term holders were selling roughly 216 million XRP per day. That figure has steadily fallen to about 103 million XRP, a reduction of more than 50% in selling activity.

Long-Term XRP Holders Doing The Opposite
Long-Term XRP Holders Doing The Opposite: Glassnode

This matters because long-term holders tend to act early, not late. When they slow distribution during periods of weak sentiment, it often signals quiet accumulation or strategic patience.

The problem for XRP is crowd apathy. The solution is that experienced holders are no longer feeding supply into that apathy.

XRP Price Levels That Decide Whether the Solution Works

If this sentiment-driven setup plays out again, the XRP price levels will confirm it quickly.

An initial move toward the next resistance at $2.03 implies an upside of roughly 8% from current levels. Clearing that zone would open room for a larger push toward the next resistance bands, $2.09 and $2.17, where prior rallies stalled.

On the downside, XRP must hold its key support at $1.77. A breakdown there would invalidate the sentiment-driven thesis and signal that long-term holders are no longer absorbing supply.

XRP Price Analysis
XRP Price Analysis: TradingView

For now, the structure remains intact.

XRP’s biggest problem is that positive sentiment has vanished. But history shows that when optimism disappears, weak hands leave first and strong hands step in. If that pattern repeats, the same problem weighing on the XRP price today could become the solution that unlocks its next move.

The post XRP Sentiment Has Collapsed — And That May Be the Setup Bulls Are Waiting For appeared first on BeInCrypto.

US GDP Surprise Signals Trouble for Altcoins, Not Bitcoin

24 December 2025 at 00:58

The latest US GDP report delivered a strong economic signal—but for crypto markets, especially altcoins, it may be bad news.

Data released on December 23 showed the US economy growing faster than expected in Q3, reinforcing the idea that monetary conditions may stay tighter for longer. While Bitcoin remains relatively resilient, broader crypto markets are flashing warning signs.

US GDP Growth Beats Expectations

The US economy expanded at an annualized rate of 4.3% in Q3, well above the market forecast of 3.3% and higher than the previous 3.8% reading.

The year of the tariff is powering America’s economy as real GDP accelerated to a 4.3% annualized rate and exports rose to an 8.8% SAAR in the third quarter.

This is just the beginning of new era of economic prosperity thanks to President Trump’s trade program unlocking new… pic.twitter.com/kWeBtxQ7aN

— United States Trade Representative (@USTradeRep) December 23, 2025

At the same time, core PCE inflation rose to 2.9%, up from 2.6%, remaining sticky above the Federal Reserve’s 2% target.

Also, Real personal consumption expenditures jumped 3.5%, far exceeding expectations of 2.7%.

In simple terms, Americans are still spending aggressively, and inflation pressures have not cooled enough for policymakers to declare victory.

Why Strong Growth Is a Problem for Crypto

Stronger-than-expected growth reduces the urgency for interest-rate cuts.

Combined with recent CPI data and still-elevated inflation expectations from the University of Michigan survey, the GDP report strengthens the case for higher-for-longer rates in 2026.

For risk assets like crypto, that matters because:

  • Higher rates increase the return on cash and bonds.
  • Liquidity becomes more selective.
  • Speculative assets struggle to attract new capital.

This environment historically pressures altcoins more than Bitcoin.

The US economy has now been in an expansion for 65 months with annualized real GDP growth of 4.3% over that time.
The average expansion length since 1949: 67 months.
Longest: 128 months.
Shortest: 12 months. pic.twitter.com/QE6WnhhMA5

— Charlie Bilello (@charliebilello) December 23, 2025

Bitcoin Holds Better Than Altcoins

Market reaction following the GDP release reflected this dynamic.

Bitcoin remained relatively stable near $87,800, down modestly on the day but still holding key structural levels. Its market cap stayed above $1.75 trillion, showing limited panic selling.

Altcoins, however, underperformed sharply:

  • Ethereum fell over 3% on the day.
  • Solana, Cardano, and Dogecoin dropped between 3%–6%.
  • Mid-cap and small-cap tokens saw deeper losses with weaker recoveries.

This divergence highlights Bitcoin’s role as a liquidity sink during macro uncertainty.

Crypto MACD Confirms Bearish Breadth

Momentum indicators reinforce the concern.

According to CoinMarketCap’s normalized MACD, 68% of tracked crypto assets are now in negative momentum. The average market MACD sits at –0.16, firmly in bearish territory.

Most assets below the $10 billion market-cap range remain deeply negative.

When momentum weakens across the market, capital tends to retreat toward fewer, more liquid assets—again favoring Bitcoin over altcoins.

Average Crypto MACD. Source: CoinMarketCap

Why Altcoins Are More Exposed

Altcoins rely heavily on cheap liquidity, retail inflows, and risk-on sentiment. Strong GDP growth combined with persistent inflation reduces all three.

With US consumers still spending but facing higher costs, disposable income for speculative investment may shrink in early 2026. 

Institutions, meanwhile, remain cautious amid Bank of Japan risks and global rate uncertainty. That combination creates a difficult environment for altcoins to sustain rallies.

What This Means For Crypto Markets Going Into 2026

The GDP report does not signal an immediate crypto crash. However, it raises the probability of prolonged consolidation or downside pressure, particularly outside Bitcoin.

If macro conditions remain unchanged:

  • Bitcoin may continue to range rather than collapse.
  • Altcoins could face extended drawdowns.
  • Market leadership may narrow further.

Overall, strong US economic data is no longer bullish—it is a liquidity warning.

The post US GDP Surprise Signals Trouble for Altcoins, Not Bitcoin appeared first on BeInCrypto.

Whales Add $3 Million in AAVE as Governance Uncertainty Pressures Price

24 December 2025 at 00:00

The AAVE price has been under steady pressure. The token is down nearly 5% over the past 24 hours and more than 18% over the past seven days. That weakness has played out alongside ongoing DAO governance disputes and renewed sell-off fears.

On the surface, this looks like a distribution. Exchange balances are rising, and sentiment has cooled. But under the hood, something does not line up. While supply is moving toward exchanges, large holders have quietly stepped in, treating the sell-off as an entry point rather than an exit. The question now is simple. What bullish setup are whales positioning for while the market focuses on governance risk?

Exchange Supply Rises as Governance Pressure Lingers

Aave’s sell-off did not appear out of nowhere. Governance tensions have been building for weeks, creating uncertainty around revenue flows and DAO control. That uncertainty has shown up clearly in on-chain supply data.

🚨 @aave is having a full blown civil war

And it might be the biggest governance fight defi has ever seen.

Heres a clean breakdown 👇

Aave has two sides:
– Aave labs → a centralised entity founded by stani
– Aave dao → token holders who govern the protocol

Now heres what… pic.twitter.com/zFnhcN5vSc

— Observe (@obsrvgmi) December 22, 2025

Since December 16 (Poison Pill proposal day), AAVE supply on exchanges has climbed from roughly 1.22 million tokens to about 1.42 million tokens. That is an increase of nearly 200,000 AAVE, or roughly 16%, in just over a week.

Aave DAO Faces Governance Clash Over Control of Aave Labs 👀

An AAVE token holder has proposed a controversial “poison pill” strategy that would allow the Aave DAO to seize control of Aave Labs’ intellectual property, brand, and equity, effectively turning the company into a DAO… pic.twitter.com/SC1gd1KYhs

— Karon (@pangestu_karon) December 18, 2025

Rising exchange balances usually signal potential selling pressure, and the price action confirms that concern, with AAVE sliding almost 18% over the same period.

Exchange Balances Grow
Exchange Balances Grow: Santiment

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This shift is notable because it reverses what happened earlier in the month, on December 16. When Aave’s regulatory overhang eased in mid-December, exchange balances dropped sharply as confidence improved. Now, with governance issues dragging on, supply has moved back toward exchanges, reinforcing near-term caution.

On its own, this setup looks bearish. But the exchange supply is only one side of the market.

Whales Buy the Dip as Sell-Off Fears Peak

While exchange balances have increased, large holders have moved in the opposite direction.

Over the past 24 hours, Aave whales increased their holdings by 12.63%, bringing their total stash to 183,987 AAVE. That implies fresh accumulation of roughly 20,600 tokens, worth about $3.1 million at current prices.

At the same time, public figure wallets, which include verified funds and well-tracked entities, raised their holdings by 13.55%, lifting their balance to 274,652 AAVE. That increase represents roughly 32,700 tokens, or about $5 million.

AAVE Whales
AAVE Whales: Nansen

Combined, these two cohorts added more than 53,000 AAVE in a single day. At the current price, that is over $8 million accumulated directly into weakness.

This divergence matters. When exchange supply rises, but whales accumulate, it often reflects short-term fear being absorbed by longer-term conviction. Instead of reacting to governance noise, large holders appear to be positioning around structure, not headlines.

That brings us to the chart.

The Bullish AAVE Price Trigger Whales Are Positioning For?

The price action provides the missing link.

AAVE has repeatedly defended the $147 zone, forming the head of a developing inverse head-and-shoulders pattern. This pattern typically signals a possible trend reversal after prolonged downside pressure, especially when it forms during elevated fear.

The structure remains compressed under a descending neckline line, meaning sellers still control the broader trend. But the trigger is clear. A decisive move above $182 would begin to shift momentum. Clearing $193 would confirm the breakout and open upside toward $207, then $232, with $248 as the larger recovery target.

AAVE Price Analysis
AAVE Price Analysis: TradingView

The risk is equally defined. If AAVE loses $147, the bullish structure breaks. That would likely invite renewed selling pressure, with downside risk toward $127. For now, whales appear to be betting that support holds, and structure resolves higher.

The post Whales Add $3 Million in AAVE as Governance Uncertainty Pressures Price appeared first on BeInCrypto.

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