Ethereum Breaks Through $2,600 Amid Strong Institutional Backing and DeFi Gains, But User Growth Remains Limited
Ethereum surged past the $2,600 level during early Asian trading hours, gaining 3.7% and surpassing a key resistance around $2,500 after a lengthy period of consolidation, according to CoinDesk Research’s AI-driven technical analysis.
This upward momentum is fueled by healthy trading volumes and significant institutional confidence. Last week, spot Ethereum ETFs saw net inflows of $248 million, led by BlackRock’s iShares Ethereum Trust. DeFi activity on the network also strengthened, with the total value locked (TVL) climbing 3.59% in the past 24 hours to reach $64.37 billion, per data from DeFi Llama.
Despite this strong rally, Ethereum faces some challenges. The number of active addresses currently hovers around 406,180 — nearly flat compared to roughly 430,000 one year ago — suggesting stagnant user growth.
Stablecoin flows within Ethereum’s ecosystem send mixed signals as well. While established coins like USDT and USDC remain relatively steady, newer entrants such as Ethena’s USDe and BUIDL show robust growth, hinting at evolving dynamics within the stablecoin market.
The combination of bullish institutional inflows and rising DeFi usage paints a positive picture, but the flat user base and modest retail engagement could constrain near-term upside.
Bitcoin and Luxury Watches Part Ways: Pandemic-Era Correlation Fades
Bitcoin and luxury watches, which moved largely in tandem during the pandemic’s stimulus-fueled rally, have taken divergent paths in the past year.
Bitcoin (BTC) has surged nearly 57%, according to CoinDesk data, while luxury watch prices measured by WatchCharts.com have dropped by 4%.
Mid-2023 still saw strong correlation, but since then, Bitcoin’s growing institutional adoption and maturation have propelled it upward, while luxury watch markets cooled off.
OKX Global’s Chief Commercial Officer Lennix Lai attributes Bitcoin’s ascent to increased legitimacy and adoption as a generational asset. “Unlike watches, Bitcoin can’t be lost, scratched, or stolen if you safeguard your seed phrase,” Lai said.
The luxury watch market has shown signs of a modest rebound, gaining 0.3% in the last three months, largely driven by external factors like tariffs and rising gold prices, says Watches.io founder Jake Plonskier.
Crypto’s impact remains demographic, enabling younger collectors to afford premium timepieces previously out of reach.
Circle Files for IPO on NYSE, Aiming to Raise Up to $625 Million
Circle Internet Financial, issuer of the USDC stablecoin, has filed for an initial public offering on the New York Stock Exchange under ticker “CRCL,” planning to sell up to 24 million Class A shares priced between $24 and $26 each.
The IPO includes 9.6 million new shares, potentially raising $250 million, alongside 14.4 million shares from selling shareholders.
Cathie Wood’s ARK Investment has expressed interest in buying $150 million worth of shares. The offering is led by J.P. Morgan, Citigroup, and Goldman Sachs.
This filing follows prior failed attempts including a 2021 SPAC deal collapse and abandoned acquisition talks with Coinbase and Ripple.
Marathon Digital CEO Calls on U.S. to Mine Bitcoin for Strategic Reserve
At the Bitcoin 2025 conference, Marathon Digital CEO Fred Thiel urged the U.S. government to begin mining Bitcoin domestically using excess hydroelectric power to meet President Trump’s directive for a strategic bitcoin reserve.
Currently, the reserve includes around 200,000 bitcoins seized from government forfeitures, but Thiel stressed the need for active acquisition strategies.
Senator Cynthia Lummis supports a broader approach, proposing the BITCOIN Act to convert government gold certificates into bitcoin over several years.
Lummis also cautioned that legislative progress may be slow amid congressional focus on stablecoin regulation and market structure reforms.
Market Highlights
- BTC: Bitcoin bounced from a low of $107,604, trading just below $110,000 resistance, aided by easing EU trade tensions and accumulation from long-term holders.
- ETH: Ethereum broke through $2,600 fueled by ETF inflows and DeFi gains, though flat active addresses may cap further upside.
- Gold: Currently at $3,315.30 per ounce, down 0.77%, with Citi revising near-term outlook amid trade uncertainty.
- Nikkei 225: Opened at 38,003.67, forecast to rise about 5% by year-end despite near-term volatility.
- S&P 500: Closed up 2.1%, boosted by optimism over delayed U.S.-EU tariffs and improved trade prospects.
