Gm, frens!

What a week for crypto—Bitcoin smashes $100,000 while Ethereum ETFs quietly stack $1.4 billion in inflows.

What else is up?

Well, we dive into Stylus activation on Arbitrum and why it’s set to change the game, bringing Solana-style Rust devs into the EVM world.

Let’s get into it.

🔍️ MARKET WATCH

MARKET SECTOR PERFORMANCE

Bitcoin stole the spotlight today, breaking $100,000 for the first time after trading as low as $15,460 just two years ago. It posted a solid +6.21% gain over the last 24 hours, dominating the market with a 54.42% share.

Ethereum also saw healthy growth, up +5.32%, while Layer 1 and Layer 2 solutions showed mixed performances, with Layer 1 down -2.82% and Layer 2 slightly positive at +0.34%. The PayFi sector experienced the biggest losses, dropping -6.20%, meme tokens and SocialFi sectors also dipped, losing -2.65% and -2.21%.

Now, the big question is — where do we go from here? Based on the current analysis, we’re only just stepping into the bullish phase, and, while this rally may not match the intensity of previous post-halving cycles, the trend is undeniably upward. Bitcoin breaking $100,000 serves as a strong indicator of market optimism, and the broader market appears to be aligning with this momentum.

BTC seems to be following the historical post-halving patterns.

TOKEN UNLOCKS

This week nearly $812 million worth of tokens will be unlocked, the impact of which has the potential to drive significant activity in the market. Here are some token unlocks to keep an eye on.

ETHEREUM ETF INFLOWS GAINING MOMENTUM

Bitcoin has crossed the monumental $100,000 mark, solidifying its dominance in the market, while Ethereum remains 20% below its ATH. However, momentum is building for ETH as ETF inflows pick up pace. Over the past month, 9 Ethereum ETFs have significantly accelerated their holdings, collectively adding 362,474 ETH, valued at $1.42 billion. This surge reflects growing institutional interest and is a potential catalyst for Ethereum’s next move toward its ATH.

💙 Arbitrum Corner - Stylus

Blockchains were intended to build a better internet, with both users and developers at its core.

This quote captures one of Offchain Labs’ core values.

Whether your goal is creating powerful onchain apps and vibrant ecosystems, self-governing your community, or simply stewarding your funds — Arbitrum gives you the technology, tools and freedom you need to succeed.

As you may know, smart contracts on Ethereum are generally written in Solidity. Whilst Solidity is the foundation of the smart contract ecosystem we see today and is undoubtedly integral to its future, it does bring with it some challenges. The biggest of these is the developer pool. It’s estimated that there are currently just 20,000 Solidity developers, several orders of magnitude less than Rust (3,000,000) or C/C++ (12,000,000).

Stylus is here to solve that.

The activation of Stylus provides a range of tools for developing smart contracts beyond Solidity, in performant and secure languages. Stylus introduces a co-equal virtual machine (an AltVM) that is completely interoperable with the EVM (Ethereum Virtual Machine) — designed to execute WASM (Rust etc.) rather than EVM (Solidity) bytecode.

WASM programs are a huge unlock.

Not only are they more efficient, their compilers are much more advanced. This means developers can create complex computation and cryptography inside their smart contracts that would normally be extremely gas-intensive (and expensive!).

The best part?

Solidity contracts & WASM contracts are completely interoperable, meaning they can call one another.

Run a protocol written in Solidity already? That's not an issue, there’s no need to overhaul the contracts, just bring in Rust expertise for specific heavy-load contracts.

You have probably heard of Rust from our frens over at Solana - it’s the core smart contract language there, meaning this also unlocks Solana protocols and contracts to migrate, fork or collaborate on everyone’s favourite EVM — Arbitrum!

Do More. With Stylus.

• Read more about Stylus here

• Check out the 5M ARB up for grabs for Stylus Builders here

📈 PRICE ACTION

Gm frens!

Last week BTC broke down a bit and I anticipated another re-accumulation. Since then, the price has shown signs of accumulation and then started to run higher still.

• Sideways price action

• Price breaking back above 50 MA

• Re-accumulation

If we zoom out we can also see that on the daily there is yet another re-accumulation forming above the uptrending 10/20 EMA - a very bullish sign indeed. Therefore, the overall expectation is still bullish and I’m expecting to see new ATHs beyond the highs of this week.

• Above uptrending 10/20 EMA

• Uptrending 50 MA

For as long as BTC continues trending above the 10/20 EMA it’s a good idea to follow long and also to look for relatively stronger cryptos that have the potential to outperform BTC. Very exciting times!

Trade responsibly and I’ll see y’all next week.

🔑 KEY NEWS

MAJOR HEADLINES

• Valour Launches First Dogecoin (DOGE) ETP while Wisdom Tree files for spot XRP ETF

• Celsius Network to begin 2nd distribution of $127M

• MARA buys $615M worth of BTC and plans to propose private offering to buy more

• Putin signed digital currency taxation law

• South Korea to postpone the implementation of virtual asset tax for two years

• South Korea President declares Martial Law, exchanges experiencing downtime

• Coinbase now allows users to purchase cryptocurrency with Apple Pay

PROJECT UPDATES

• Alpaca Finance, XT Exchange, Spectral Labs, YEI Finance and Clipper DEX exploited/hacked

• XRP becomes 3rd largest crypto, overtaking Tether & Solana

• Ethena Labs Pendle PT tokens coming to Aave

• Ren Protocol updates on Ren v2

• Kraken shutting down its NFT marketplace while RTFKT is winding down

• Sonic Labs first genesis block completed

• Hyperliquid launched their long anticipated $HYPE token

• Rumours of ENRON to launch a token

INTERESTING PROJECTS

• comLayer: Secure communication layer protocol for the megaETH blockchain

• Alchemist AI: AI coding platform on Solana

• Bleap: Wallet-connected debit card by ex-Revolut guys

• Rubix: Decentralized Finance and Liquidity Provision on Hyperliquid

The market is thriving and it’s clear momentum is building across the board. This is just the beginning of the next chapter—one fuelled by technology, adoption, and a renewed sense of optimism.

We are going so much higher.

Keep stacking that alpha, and we’ll see you next week!

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In our newsletter, we may discuss projects or tokens in which we hold positions. While we aim to provide informative content, our views are not financial advice. Please conduct your research and consult professionals before making investment decisions. Crypto markets are volatile, and past performance doesn't guarantee future results. Invest responsibly, and be aware of the risks. Your capital is at risk, and we do not accept liability for any losses.