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### Stablecoins Gain Momentum Amid Market Challenges Stablecoins are experiencing significant growth, even as major smart contract platforms like Ethereum and Solana face declining activity, according to an April 3 report from asset manager VanEck. #### Market Sentiment and Macroeconomic Factors The recent lull in smart contract platform activity is linked to **cooling market sentiment** driven by geopolitical tension, including U.S. trade policies and a potential trade war, impacting traders' confidence across the cryptocurrency landscape. Matthew Sigel, VanEck’s head of research, noted in an April 4 post that ongoing **macroeconomic uncertainty** might actually bolster crypto’s strategic value, further supporting the development and adoption of stablecoins—a key indicator of the overall health of the Web3 ecosystem. #### Growth in Stablecoin Adoption The report highlighted that stablecoins collectively added nearly **$10 billion** in market capitalization during March. This surge comes despite a decline in average yields for stablecoins, which now range between **3% to 5%**, down from as high as **10%** at the beginning of the year. Interestingly, the issuance of **tokenized Treasury Bills**, a primary source of stablecoin yield, also saw a notable increase of **26%** from February to March, exceeding **$5 billion** in total issuance. #### Challenges for Smart Contract Platforms In stark contrast to the stablecoin market, smart contract platforms reported declines in activity—**revenues** and **trading volumes** dropped by **36%** and **40%**, respectively. Solana was particularly hard-hit, with daily fee revenues and decentralized exchange (DEX) volumes plunging by **66%** and **53%** in March. This downturn has caused Solana's DEX volume share to dip below that of Ethereum, following a brief period in February when it had surpassed Ethereum’s volumes. The decline in Solana's activity is largely attributed to a slowdown in **memecoin trading**, a sector that has struggled since controversies around memecoins negatively impacted retail trader sentiment. #### Comparative Performance While Solana's metrics falter, Ethereum’s layer-2 solutions have also seen trading volumes decrease, albeit not as severely. As of the last week of March, Ethereum’s **blob fees**—a key income source from its layer-2 solutions—plummeted to their lowest levels of the year, showcasing the overall challenges faced by smart contract platforms during this period. In summary, stablecoins are thriving amid broader market challenges, while smart contract platforms like Ethereum and Solana grapple with decreasing activity and revenue.

### Stablecoins Gain Momentum Amid Market Challenges Stablecoins are experiencing significant growth, even as major smart contract platforms like Ethereum and Solana face declining activity, according to an April 3 report from asset manager VanEck.…

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A group of investors from Bakkt Holdings, a cryptocurrency custody and trading firm, has filed a class-action lawsuit against the company and its executives, asserting claims of false or misleading statements and a failure to disclose essential information. The lead plaintiff, Guy Serge A. Franklin, has requested a jury trial in the US District Court for the Southern District of New York. The lawsuit comes in response to Bakkt’s agreements with major clients Webull and Bank of America (BoA), which the investors claim lack transparency and violate US securities laws. The plaintiffs allege that the loss of these partnerships will significantly impact Bakkt's revenue, estimating a 73% decrease due to their importance to the firm's services revenue—74% attributed to Webull and 17% to Bank of America. Bakkt revealed on March 17 that Webull and BoA did not intend to renew their contracts set to expire in 2025, causing a sharp decline of over 27% in Bakkt’s share price within 24 hours of the announcement. The investors argue that Bakkt misrepresented the stability of its revenue and failed to disclose its significant dependence on Webull’s contract. They claim that the actions of Bakkt and its executives have led to substantial financial losses for them and other shareholders. The lawsuit suggests that additional class-action lawsuits may arise as other law firms investigate securities law violations related to Bakkt. At the time of publication, Bakkt's shares were priced at $8.15, having fallen more than 36% over the preceding month. Additionally, Bakkt experienced a notable 162% surge in share price in November 2024 following speculation that Donald Trump's media company was considering an acquisition, although no formal agreement has been announced as of April 2025. Cointelegraph made attempts to reach Bakkt for a comment on the legal situation but received no response.

A group of investors from Bakkt Holdings, a cryptocurrency custody and trading firm, has filed a class-action lawsuit against the company and its executives, alleging false or misleading statements and a failure to disclose crucial information. Lead…

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Global payments platform PayPal has expanded its cryptocurrency offerings to include Chainlink (LINK) and Solana (SOL). This update allows US-based users to buy, sell, and transfer these popular tokens. The support for LINK and SOL will be rolled out in the coming weeks and will also be extended to users of Venmo, PayPal's mobile payment platform, as disclosed on April 4. Venmo reportedly had around 83 million users in 2023, while PayPal's global reach encompassed approximately 428 million accounts by December, with the majority located in the US. These services are currently exclusive to US residents due to regulatory considerations. May Zabaneh, an executive in PayPal's crypto division, emphasized that this expansion is a response to rising consumer demand. She stated, “Offering more tokens on PayPal and Venmo provides users with greater flexibility, choice, and access to digital currencies.” With this addition, PayPal now supports a total of seven digital assets, including its own stablecoin, PayPal USD (PYUSD). The launch of PYUSD in 2023 marked PayPal's official entry into the cryptocurrency market, achieving a total market capitalization of over $1 billion shortly after its launch. However, its circulating supply has since decreased to around $760 million. In an effort to demonstrate PYUSD's utility, PayPal successfully settled an invoice with consulting giant Ernst & Young using this stablecoin. Despite PYUSD's current market positioning being less prominent than leading stablecoins like Tether (USDT) and USD Coin (USDC), industry figures like Polygon Labs CEO Marc Boiron recognize PayPal's significant role in advancing stablecoin adoption amidst a landscape of uncertainty among regulators and enterprises.

Global payments platform PayPal has enhanced its cryptocurrency service by adding Chainlink (LINK) and Solana (SOL) to its offerings. This new update allows US-based users to buy, sell, and transfer these popular tokens, with the rollout set to occu…

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Analysts predict that Bitcoin (BTC) could potentially fall to $70,000 in the coming ten days, largely influenced by concerns surrounding a US trade war's impact on investor sentiment towards risk assets. Timothy Peterson, a network economist, indicated in his latest analysis that Bitcoin's price could return to its 2021 all-time high, suggesting that $70,000 might represent a "practical bottom" for the cryptocurrency. Peterson referred to a chart comparing Bitcoin's bear markets, using a metric called the Lowest Price Forward (LPF), which has a history of accurately predicting price bottoms. While he clarified that this chart does not serve as a prediction, it offers data-driven expectations for Bitcoin's future movement. If Bitcoin follows historical trends, the $70,000 mark could be seen as a reasonable bottom based on the 75th percentile of bear market behavior. The immediate outlook for Bitcoin appears pessimistic, with Peterson noting a stark decline in market expectations. His analysis showed a rapid shift from a 75% likelihood of a positive month for Bitcoin to a 75% probability of a negative month within just two days. In addition to Peterson's warnings, on-chain analytics firm Glassnode has reported an increase in the demand for downside protection within the options market, signaling heightened fear among traders. Interestingly, while the market has faced pressure, Bitcoin has not experienced the same dramatic decline seen in equities following trade tariff announcements, suggesting that while panic levels are rising, the price stability may indicate a potential bottom. In summary, while predictions for Bitcoin's future prices may vary, signs point to a period of volatility where $70,000 could be a critical threshold in the near term. Investors are advised to proceed with caution, recognizing the inherent risks involved in trading and investing in cryptocurrency markets.

Analysts are forecasting that Bitcoin (BTC) may drop to $70,000 within the next ten days, largely due to concerns regarding the impact of the US trade war on investor sentiment surrounding risk assets. Timothy Peterson, a network economist, suggests…

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**The Future of DeFi: Why Bitcoin Is the Next Frontier** *Opinion by: Matt Mudano, CEO of Arch Labs* Decentralized finance (DeFi) has faced significant challenges recently, especially within the Ethereum ecosystem. Once the leading platform for DeFi applications, Ethereum is now grappling with issues such as fragmented liquidity and changing roadmaps that threaten its long-term sustainability. This has prompted some developers and users to migrate to Solana in search of better opportunities, only to find themselves in an ecosystem characterized by memecoin speculation rather than genuine financial innovation. ### The Struggles in Ethereum's DeFi Landscape Ethereum's original promise of a unified DeFi platform has deteriorated. Layer-2 (L2) solutions were introduced to scale the network, but they have only resulted in isolated liquidity silos, causing capital inefficiencies. The proposed solution, chain abstraction, fails to address the core issue—the misalignment of incentives within the network. As a consequence, Ethereum is slowly losing its competitiveness in the DeFi space. ### Solana: A Shallow Alternative As Ethereum's grip on DeFi loosens, many are looking to Solana, which has witnessed a remarkable increase in developer activity. Despite this growth, Solana's DeFi ecosystem is primarily driven by speculation, particularly centered around memecoins. The sudden influx of speculative trading is not sustainable; rather, it leads to volatility and short-term gains with little focus on building lasting financial structures. While Solana does present advantages such as speed and low transaction costs, its dependence on memecoin-driven dynamics raises concerns about its viability as a long-term DeFi solution. ### Bitcoin: The True DeFi Innovator In contrast to Ethereum’s and Solana’s shortcomings, Bitcoin is emerging as the new frontier for DeFi. With the total value locked (TVL) in Bitcoin DeFi surging from $300 million to $5.4 billion recently, it’s clear that Bitcoin can no longer be viewed merely as digital gold. Instead, it's evolving into a robust platform for decentralized finance. Innovative financial models are emerging within Bitcoin DeFi—projects are pioneering dual staking and finding novel ways to tokenize Bitcoin’s hashrate for collateral in lending and staking. Furthermore, the advent of Ordinals and BRC-20 tokens has resulted in record-high transaction activity, signaling a growing demand for diverse asset tokenization on the Bitcoin network. ### A Promising Future for Bitcoin DeFi The future of DeFi appears to be rooted in Bitcoin, which stands out for its alignment with long-term value creation. Unlike the fragmented structures of Ethereum and the speculative nature of Solana, Bitcoin’s DeFi initiatives are fostering institutional-grade liquidity and sustainable growth. With a market cap of $1.7 trillion and significant interest from institutional investors, Bitcoin is in a prime position to facilitate a new wave of DeFi activities. As projects continue to develop on the Bitcoin network, users will be able to leverage the most trusted digital asset in productive and innovative ways. Ethereum had its time, Solana captured a fleeting moment, but Bitcoin is poised to turn Satoshi's original vision of a decentralized financial system into reality. *Disclaimer: This article is for informational purposes only and should not be considered legal or investment advice. The views expressed are those of the author and do not necessarily reflect the opinions of Cointelegraph.*

The article presents an opinion piece by Matt Mudano, CEO of Arch Labs, discussing the evolving landscape of decentralized finance (DeFi) and the reasons why he believes Bitcoin is poised to be the next frontier for DeFi applications. Below are the …

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Stablecoin adoption grows with new US bills, Japan’s open approach

Recent developments have placed stablecoins in the spotlight, particularly with the introduction of pivotal legislation in the U.S. Congress, concerns surrounding First Digital's coin, and pushback against Coinbase's banking initiatives from lawmakers.

As the cryptocurrency market grapples with the implications of the dollar-backed stablecoins, the future of U.S. economic stability becomes a significant discussion point, especially against the backdrop of President Donald Trump's controversial policies.

In Europe, the regulatory landscape for stablecoins has tightened considerably. Exchanges are increasingly delisting coins not compliant with the EU's Markets in Crypto-Assets (MiCA) regulatory framework. The rapid evolution of policies and market entries means the stablecoin realm is undergoing substantial changes. Here’s a summary of the latest developments.

Stablecoin Adoption Legislation in the U.S.

The Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act has progressed through the U.S. House Financial Services Committee and is set for a vote by the entire House. The STABLE Act aims to establish guidelines for the use of stablecoins in payments, tied to the U.S. dollar, while also implementing disclosure requirements for issuers.

Stablecoin adoption grows with new US bills, Japan’s open approach
Source: Financial Services GOP

However, not everyone supports these bills; Democratic Representative Maxine Waters criticized the STABLE Act for potentially benefiting Trump’s new stablecoin venture while undermining economic stability.

Depeg of FDUSD Stablecoin

The First Digital USD (FDUSD) stablecoin faced a depeg issue recently, following claims by Tron founder Justin Sun regarding the issuer's insolvency. First Digital has denied these claims, insisting they remain solvent and that FDUSD maintains its 1:1 redemption rate with the U.S. dollar.

Stablecoin adoption grows with new US bills, Japan’s open approach
Source: CoinMarketCap

Trump's WLFI Announces New Stablecoin

World Liberty Financial, associated with the Trump family, has launched a new stablecoin pegged to the U.S. dollar, with a supply exceeding $3.5 million. Released on BNB Chain and Ethereum, the coin has faced skepticism from critics suggesting it is an attempt by Trump to undermine the U.S. dollar's position.

Recent communications from several U.S. senators express concern that Trump’s proposed regulations may unfairly favor his stablecoin over others.

Interest on Stablecoins Rejected by Congress

Coinbase CEO Brian Armstrong proposed that stablecoin issuers should be permitted to offer interest on stablecoin holdings, comparable to traditional savings accounts. However, this proposal faces opposition in Congress, especially from Representative French Hill, who contends that stablecoins should solely serve as payment methods.

Stablecoin adoption grows with new US bills, Japan’s open approach
Source: Brian Armstrong

European Delistings of Stablecoins

Binance and other exchanges are halting trading of Tether's USDT stablecoin as part of compliance with the MiCA regulations enacted in 2023. Customers will still be able to hold these tokens but cannot execute trades until regulatory adjustments are made.

Stablecoin adoption grows with new US bills, Japan’s open approach
Source: Binance

Stablecoins Experience Capital Inflows

New data shows significant capital influxes into stablecoins, with investors viewing these assets as safe havens amid economic uncertainty brought on by geopolitical tensions and tariffs.

Stablecoin adoption grows with new US bills, Japan’s open approach
Total Market Capitalization of Stablecoins. Source: IntoTheBlock

Stablecoins on the Rise in Japan

In a shift towards a more favorable regulatory environment, Japanese firms are increasingly interested in launching stablecoins. SBI VC Trade is set to support USDC, and collaborations are forming among various financial entities to promote stablecoin use in Japan.

As the landscape for stablecoins develops, the intersection of regulation, political dynamics, and investor sentiment will continue to shape their future.

Recent developments in the stablecoin sector are drawing significant attention, particularly due to new legislation in the U.S. Congress, ongoing controversies involving certain stablecoins, and shifts in regulatory practices in different regions. …

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On April 3, 2025, Malta's Financial Intelligence Analysis Unit (FIAU) issued a fine of €1.1 million (approximately $1.2 million) to Okcoin Europe, the European arm of the cryptocurrency exchange OKX, for past violations of Anti-Money Laundering (AML) laws. This action came after an examination revealed multiple significant compliance failures within the platform during 2023. The FIAU noted that while OKX had made considerable improvements to its AML policies in the past 18 months, the authority could not overlook the systematic deficiencies identified in its risk assessment methodologies. The investigation highlighted several risks associated with money laundering, including threats from cryptocurrency mixers, privacy coins, stablecoins, and decentralized exchanges. Despite the exchange's commitment to serving only European customers, the FIAU emphasized the importance of assessing risks related to funding sources from jurisdictions outside of Europe. Concurrent with the fine, media reports from Bloomberg indicated that OKX was under investigation by EU regulators regarding its alleged facilitation of laundering $100 million in funds stemming from a hack on rival exchange Bybit. Bybit's CEO accused OKX of allowing hackers to launder substantial amounts through its Web3 proxy. As the situation unfolds, OKX maintains its focus on bolstering a secure, compliant trading platform for its users globally, striving to address past compliance issues. The FIAU's actions signal that holding licenses under new regulations like MiCA does not exempt firms from responsibility for historical breaches.

On April 3, 2025, Malta's Financial Intelligence Analysis Unit (FIAU) fined Okcoin Europe, the European arm of the cryptocurrency exchange OKX, €1.1 million (approximately $1.2 million) for prior violations of Anti-Money Laundering (AML) regulat…

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The recent surge in Bitcoin-based decentralized finance (BTCFi) has seen a growth of over 2,700% in value locked over the past year. This transformation could shift Bitcoin's perception from a passive store of value to a yield-bearing asset, according to a report from Binance Research. The total value locked in BTCFi has surpassed $8.6 billion, and experts believe interest rate cuts could bolster positive sentiment for Bitcoin in the medium to long term. BTCFi aims to integrate DeFi functionalities with Bitcoin's foundational technology, and its development has gained momentum since the April 2024 Bitcoin halving, which introduced the Runes protocol—the first fungible token standard on the Bitcoin blockchain. Notable projects, such as Babylon's Bitcoin staking and Hermetica's Bitcoin-backed synthetic dollar, are contributing to the growth of this sector. In addition to the expansion of BTCFi, long-term Bitcoin holders have resumed accumulation after a dip in supply in February. This accumulation trend is reducing Bitcoin availability on exchanges, potentially leading to a supply shock-driven price rally. The positive momentum aligns with broader adoption factors, including increasing institutional interest and the establishment of a U.S. strategic Bitcoin reserve. Overall, the developments in BTCFi and the accumulation by long-term holders may enhance Bitcoin's status in the cryptocurrency landscape and stimulate further demand and investment.

The recent surge in Bitcoin-based decentralized finance (BTCFi) has seen an astonishing growth of over 2,700% in value locked within the sector over the past year. This transformation signals a potential shift in Bitcoin's perception—from merely…

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The European Union (EU) is reportedly considering a substantial $1 billion fine against Elon Musk’s platform, X (formerly Twitter), due to alleged violations of the Digital Services Act. According to a report by The New York Times, the EU plans to calculate the fine based on Musk's overall revenue, which includes income from his other enterprises like Tesla and SpaceX. The Digital Services Act, which was enacted to regulate social media platforms and curb illegal online activities, allows for penalties of up to 6% of a company's global revenue for noncompliance. In response to the potential fine, X's Global Government Affairs team criticized the move as "an unprecedented act of political censorship" that threatens free speech. The team emphasized their commitment to comply with the EU laws and assured that they would explore all options to defend their operations and user safety in Europe. Besides the financial penalties, the EU regulators may also require X to implement product changes, with a clearer outline of potential penalties expected in the coming months. X is already under investigation for allegedly fostering an environment of disinformation and hate speech. This investigation began in 2023, with a preliminary ruling in July 2024 confirming violations of the Digital Services Act, specifically regarding X's failure to provide transparency to researchers and maintain user authenticity. Musk and X's representatives have expressed intentions to fight the rulings in court, revealing a complex interaction between regulatory compliance and concerns about freedom of speech in the EU.

The European Union (EU) is reportedly weighing a significant $1 billion fine against Elon Musk’s platform X (formerly known as Twitter) due to purported violations of the Digital Services Act. A report by The New York Times indicates that the fine m…

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