Circle wants wrapped Bitcoin to look bank grade before institutions trust it as collateral

Bitcoin, DeFi, Ethereum, Institutional cirBTC, Circle, Ethereum, Institutional Crypto, Proof of Reserve, USDC, Wrapped Bitcoin

Circle has launched cirBTC on Ethereum, but the larger play is to make wrapped Bitcoin look like collateral infrastructure institutions can route through DeFi, OTC desks, lending markets, treasury systems, market makers, and settlement flows.

cirBTC is live on Ethereum and backed 1:1 by native BTC, according to Circle’s launch materials. The company says the underlying Bitcoin is held through a Circle entity, segregated from corporate assets, and designed for onchain reserve visibility.

The product also sits inside Circle’s existing stack. Circle is positioning cirBTC around Circle Mint, USDC workflows, Ethereum DeFi, and planned support for Arc and other chains.

This moves wrapped Bitcoin into an issue of trust. BTC itself does not move natively through Ethereum contracts, so any wrapped version asks users to trust a claim on Bitcoin held somewhere else.

For retail DeFi users, that can be a bridge decision. For institutions, it is a collateral decision: who holds the keys, how reserves are checked, what happens during redemption, and whether the operational process can survive internal risk review.

Circle is selling custody before yield

Circle’s cirBTC pitch starts with the same basic promise as other wrapped Bitcoin products: one token for one BTC. The difference is the operating package around that promise.

Its materials say cirBTC is backed by native BTC, reserves are separated from corporate assets, and counterparties can verify reserves onchain. Circle also ties the product to the same institutional interface many firms already use for USDC issuance and redemption.

A desk that already moves USDC through Circle Mint could, in theory, add BTC collateral to the same account-and-settlement relationship instead of stitching together a separate custodian, wrapper, exchange, bridge, and DeFi access point.

The proof-of-reserve component supports that positioning. Proof of Reserve systems can help tokenized assets and DeFi protocols monitor backing data onchain and build safeguards around undercollateralization.

For cirBTC, the next live signal is the reserve feed or dashboard counterparties can use for the token itself.

That leaves counterparty trust in place. cirBTC still depends on custody, redemption, reserve controls, and user confidence in Circle’s process.

The institutional pitch is that those assumptions can be packaged in a cleaner way, with the BTC claim, reserve visibility, and Circle account relationship pointing in the same direction.

The comparison is clearest against cbBTC and WBTC.

Coinbase’s cbBTC is also a 1:1 BTC-backed wrapped asset, held in Coinbase custody and available across Base, Ethereum, Solana, and Arbitrum.

Coinbase also maintains a proof-of-reserves page, giving users a public reserve and supply reference for the product. Availability and terms can vary by jurisdiction.

WBTC remains the incumbent Bitcoin wrapper in Ethereum DeFi. Its own site presents WBTC as backed 1:1 by Bitcoin, with a public reserve dashboard and proof-of-reserve context.

Circle’s opportunity sits in the trust bundle it can offer: the USDC issuer, Circle Mint, reserve transparency, Ethereum access, and future Arc support under one institutional brand.

Product	Main trust promise	What is known now	Open test
cirBTC	Circle-backed BTC collateral for institutional workflows	Live on Ethereum, backed 1:1 by native BTC, with Circle stating reserve segregation and onchain visibility	Whether liquidity, protocol listings, and reserve feeds make it usable as collateral at scale
cbBTC	Coinbase custody and exchange-account workflows	Backed 1:1 by BTC held by Coinbase, with listed support across Base, Ethereum, Solana, and Arbitrum	Whether Circle can compete with Coinbase distribution and Base-native lending activity
WBTC	Incumbent DeFi collateral with public reserves	Backed 1:1 by BTC with a public reserve dashboard and proof-of-reserve context	Whether institutions prefer an incumbent DeFi asset or a Circle-controlled operating model

The comparison shows why cirBTC is more than a token launch. Wrapped Bitcoin products increasingly compete on the legal and operational identity of the issuer, the visibility of reserves, and the pathways by which collateral enters lending markets.

Coinbase has already tied cbBTC to lending through Base. CryptoSlate reported that Coinbase and Morpho introduced Bitcoin-backed loans on Base, using cbBTC and USDC in a consumer-facing borrowing flow.

That comparison shows the distribution Circle has to challenge if cirBTC is to become more than another Ethereum asset.

Coinbase’s cbBTC launches seeking DeFi boom on Base and Ethereum

Coinbase said its Bitcoin Wrapper product cbBTC is supported across major DeFi protocols, including AAVE.

Sep 12, 2024
·
Oluwapelumi Adejumo

Arc gives cirBTC a bigger role

Circle’s Arc ambitions give cirBTC a second layer of meaning.

Arc is being pitched as infrastructure for stablecoin finance, with USDC fees, settlement tooling, privacy controls, and institutional use cases around payments, foreign exchange, tokenized assets, and capital markets.

Circle has described Arc as a chain purpose-built for stablecoin finance, and CryptoSlate has previously reported how the network pushes Circle deeper into territory also occupied by Coinbase and Base.

Circle adds $3 billion Wall Street Arc token risking an uncomfortable rivalry with Coinbase

A longtime stablecoin partnership is entering a new phase as Circle seeks to own more of the infrastructure around USDC.

May 12, 2026
·
Oluwapelumi Adejumo

In that context, cirBTC could become the Bitcoin leg of a broader Circle stack. USDC provides the dollar asset. Circle Mint provides issuance and redemption access. Ethereum provides current DeFi reach.

Arc, if it develops as planned, could give Circle a venue where tokenized dollars, BTC collateral, and settlement workflows operate with fewer handoffs.

The record remains early. Circle says cirBTC is live on Ethereum and points to planned Arc and multichain support. Its launch materials stop short of showing broad DeFi protocol adoption, live Arc usage for cirBTC, or a supply figure that would show market depth.

A token can be fully backed and still fail to become preferred collateral.

Institutions and DeFi protocols still need liquidity, risk parameters, redemption confidence, oracle support, and a clear reason to add another BTC wrapper beside existing options.

Kraken moves Bitcoin to Chainlink as bridge fears spread across DeFi

Kraken is rebuilding how Bitcoin moves through DeFi after the KelpDAO shock.

May 15, 2026
·
Liam ‘Akiba’ Wright

The broader market context is already moving in that direction. CryptoSlate recently framed a Morgan Stanley and Galaxy arrangement as part of Bitcoin’s next institutional test in lending collateral.

The cirBTC launch fits that same issue: Bitcoin can become useful collateral for institutions when the custody and risk controls around the token are strong enough to satisfy the people managing the real BTC.

Arc also gives the Coinbase comparison more weight. Coinbase can route cbBTC through Base and its own account system; Circle is trying to offer a parallel route built around USDC, Mint, and Arc.

The adoption contest centers on which issuer can turn custody relationships into liquidity.

Acceptance decides whether the wrapper becomes infrastructure

Circle has the right ingredients for a bank-grade wrapper: a known issuer, reserve language, onchain verification, institutional access, USDC proximity, and an Arc roadmap.

Collateral infrastructure comes later, when counterparties use those ingredients in production.

That means lenders need to accept the asset, market makers need to quote it, treasury teams need clean redemption, DeFi protocols need collateral parameters, and risk desks need confidence in the reserve process.

Users also need to move between BTC exposure and dollar liquidity without wondering where the real Bitcoin sits.

That is where cirBTC will face WBTC and cbBTC. WBTC has incumbent DeFi familiarity. Coinbase has distribution, custody, and Base workflows.

Circle has USDC, Mint, compliance credibility, and an ambition to own more of the settlement stack through Arc.

Circle can turn wrapped Bitcoin into institutional collateral infrastructure if cirBTC becomes the wrapper institutions choose because the custody, reserve, and redemption model lowers operational friction.

If liquidity stays elsewhere and Arc remains future context, cirBTC will still read as a product launch rather than infrastructure.

For now, Circle has changed the frame around wrapped BTC. The debate now centers on who institutions trust to hold the Bitcoin while the token moves through programmable finance.

The post Circle wants wrapped Bitcoin to look bank grade before institutions trust it as collateral appeared first on CryptoSlate.

Humanity Protocol Suffers $36M Hack as H Token Crashes Over 80%

Blockchain, DeFi, Legal & Crime BNB Chain, Bridge Exploit, Crypto Security, DeFi Hack, Ethereum, H Token, Humanity Protocol

Breaking — Updated June 9, 2026

DeFi Security / Crypto Markets

Humanity Protocol Suffers $36M Hack as H Token Crashes Over 80%

A compromised employee laptop let attackers seize private keys, drain bridges across two chains, and mint tokens at will — leaving hundreds of wallet holders exposed.

By Staff Reporter June 9, 2026 6 min read

$36M+ Stolen

−82% Token Drop

100s Wallets Hit

One of crypto’s most anticipated decentralized identity projects is in crisis today. Humanity Protocol, the palm-scan-based digital identity network that raised $50 million from backers including Jump Crypto, Hex Trust, and Kingsway Capital, was drained of more than $36 million on Monday night after attackers compromised a foundation member’s private keys and took control of its cross-chain bridge infrastructure.

The attack unfolded across Ethereum and BNB Chain simultaneously, with the theft still in progress as of Tuesday morning. On-chain analyst Specter was among the first to flag the breach, noting that hundreds of addresses holding H tokens were being continuously targeted.

H Token — Before

$0.67

→

H Token — After

$0.13

▼ 82% in 24 hrs

How the Attack Unfolded

In a public statement posted to social media on Tuesday, Humanity Protocol confirmed the attack originated when an employee’s laptop was compromised, giving attackers access to private keys with administrative privileges over the project’s bridge contracts. Once inside, the attackers moved on two fronts: dumping stolen H tokens for ether on the open market, and minting additional H tokens on BNB Chain — a double-pressure attack that accelerated the token’s collapse.

At its low, the H token briefly touched $0.05, representing a decline of over 92% from its Monday price. On-chain data confirmed that approximately $9 million had already been swapped for ETH, with another $9.9 million remaining in H tokens as of Tuesday morning.

⚠️

Official Advisory from Humanity Protocol Users are urged to avoid the Humanity Protocol cross-chain bridge and all associated liquidity pools until further notice. The team is working with security firms and exchange partners to contain the exploit.

The Broader Pattern: Keys, Not Code

The Humanity breach is the latest and most painful illustration of what has become the dominant attack vector in DeFi this year. Attackers are no longer hunting for subtle flaws buried in smart contract code. Instead, they are targeting the humans who hold administrative keys — and the devices those keys live on.

“For a project centered on securing digital identity through biometric verification, the irony of being undone by a compromised laptop is not lost on the crypto community.”

— Staff Analysis

The Humanity hack fits squarely into a year that has already produced two nine-figure key-based heists. Solana exchange Drift lost approximately $285 million in April after a North Korean hacking group spent six months socially engineering access to an administrative key. That same month, Kelp DAO lost roughly $292 million through a single-validator bridge compromise. The pattern is unmistakable: in 2026, the biggest losses come from stolen keys rather than flawed code.

2026’s Worst DeFi Hacks at a Glance

Major DeFi exploits, 2026
Protocol	Date	Amount Lost	Attack Type
Kelp DAO	April 2026	$292M	Single-validator bridge
Drift Protocol	April 2026	$285M	Social engineering / admin key
Humanity Protocol	June 9, 2026	$36M+	Compromised laptop / private key
Step Finance	January 2026	$40M	Private-key compromise

What Comes Next

The timing of the attack adds a further layer of jeopardy for the project. According to blockchain data platform Tokenomist, Humanity Protocol is due to unlock 266.5 million H tokens — roughly 9.4% of its released supply, worth approximately $33 million at pre-crash prices — on June 25, across six allocations that include the foundation treasury and a strategic reserve. That looming unlock threatens to pile additional selling pressure on an already-devastated token price.

As of publication, Humanity Protocol founder Paul Kwok stated the team is working with security experts and exchange partners but offered no details on a user compensation plan. With over $885 million lost to DeFi hacks in the first six months of 2026 alone, the industry faces growing pressure to treat key management and operational security as first-class engineering problems — not afterthoughts.

Ethereum’s $1,500 test shows how quickly Wall Street’s crypto trade has turned

ETF, Ethereum, Institutional Bitcoin, Crypto Selloff, Derivatives Markets, ETF Flows, Ethereum, Institutional Crypto, Market Sentiment

Ethereum’s slide to its lowest level in more than a year is testing the Wall Street trade that brought the token deeper into institutional portfolios.

Data from CryptoSlate shows that the second-largest cryptocurrency fell to as low as $1,506 during the last 24 hours, its weakest level since April 2025, extending a broad crypto selloff that has already drained leverage from derivatives markets and pushed traders toward defensive positioning.

Crucially, the downswing is not confined to ETH’s spot market as the digital asset is also experiencing a broader deterioration across regulated ETF flows, centralized exchange deposits, and derivatives positioning.

This situation comes at a time when the broader crypto market sentiment has significantly weakened, with Bitcoin falling toward a four-month low near $60,000, while Ethereum has erased much of its market support.

ETF outflows weaken Ethereum’s institutional bid

The pressure has been most visible in the ETF market, where the products that gave institutions a regulated way to buy Ethereum have turned into a source of persistent outflows.

Data from SoSoValue shows that spot ETH ETFs have recorded four straight weeks of withdrawals totaling more than $870 million.

Ethereum ETFs Weekly Flows (Source: SoSoValue)

During that period, the funds posted a 17-day outflow streak interrupted by only one day of inflows, when investors added $19.3 million.

As a result, sosoValue data show total spot Ethereum ETF assets have declined more than 70% from their $30 billion peak to $8.71 billion, which is equal to about 4.01% of Ethereum’s circulating market capitalization.

The reversal has weakened one of the main arguments behind Ethereum’s institutional expansion. The ETFs were expected to broaden access to the asset, deepen liquidity, and give traditional investors a cleaner way to gain exposure without handling tokens directly.

However, that demand has softened as ETH’s price moved lower and investors have reduced risk across digital assets.

Exchange inflows add another supply risk

As institutional demand-side forces abated, the physical supply available on liquid trading platforms experienced a sudden and substantial expansion.

CryptoQuant data show Ethereum inflows to trading platforms climbed to about 2.24 million ETH in a single day, the highest level in four months. Binance accounted for more than 1.16 million ETH of those inflows, representing more than half of the total.

Ethereum Exchange Inflows (Source: CryptoQuant)

This surge in active supply can be seen in high-profile on-chain movements that served as glaring evidence of the liquidity migration.

Notably, a wallet linked to Ethereum co-founder Joseph Lubin awoke after more than three years of dormancy, mobilizing 80,001 ETH, valued at roughly $122 million.

The massive transfer epitomized the broader trend where long-inactive capital breaks from cold storage to seek out active trading venues and liquid architectures amid the mounting market stress.

Large inflows to trading platforms do not automatically mean investors are selling. They can reflect market-making activity, collateral movement, internal transfers, or portfolio restructuring during periods of stress.

However, traders watch the metric closely because coins held on exchanges are easier to sell or use in derivatives activity than coins sitting in private wallets.

The timing has made the increase harder to dismiss. Ethereum was already trading near $1,580 when the inflows accelerated, while Bitcoin had fallen toward $59,000. That combination suggested investors were moving assets during a marketwide reset rather than during a routine period of repositioning.

If exchange deposits remain elevated, the market could face additional short-term volatility.

Derivatives deleveraging deprives market of rebound capital

The velocity of the current crypto market decline has been accelerated by an extensive deleveraging cycle across leveraged futures platforms.

As spot valuations rapidly deteriorated, automated liquidation engines on major exchanges systematically closed out underwater long positions to protect clearinghouse integrity, amplifying organic selling pressure.

Data analyzed by Santiment illustrates that this liquidation wave effectively flushed out a massive block of speculative capital over a narrow four-day window:

Bitcoin Total Open Interest: Contracted by approximately 25%, dropping to $23.2 billion, which is its lowest operational aggregate since early April.
Ethereum Total Open Interest: Decreased by 13%, settling at $9.8 billion, a structural low point not seen since March.

Bitcoin and Ethereum Open Interest (Source: Santiment)

While this aggressive deleveraging leaves the underlying market structurally healthier by purging speculative excess and over-extended margin, it introduces an immediate liquidity vacuum.

The severe drop in open interest demonstrates that the speculative floor has thinned, leaving the market highly vulnerable to further spot pressure due to the lack of immediate leveraged capital available to front-run a classic V-shaped recovery.

Consequently, retail crowd sentiment has cratered to its most pessimistic footing since mid-February.

The firm noted that social metrics reveal an exponential increase in the phraseology of capitulation, with organic social discussions increasingly pairing terms like “Bitcoin” and “altcoins” alongside terminal descriptors such as “dead,” “finished,” “over,” and “ending.”

Traders hedge for a break below $1,500

The buildup of stress across ETFs, exchange flows, whale cost bases, and leveraged markets has shifted attention to ETH’s options market, where traders are paying more to protect against another leg lower.

Deribit data show demand for downside protection has increased sharply. The ETH options put-to-call premium rose to 3.7 times on Friday and has shown consistent excess demand for put options since Monday. Put contracts give holders the right to sell at a set price, making them a common hedge when traders expect further losses or want protection against a disorderly move.

ETH’s open interest has clustered around several downside strikes. Traders have built roughly $108 million in open interest around the $1,500 strike, while the $1,400 strike has attracted about $75 million. The $1,000 strike has drawn about $78 million in positioning.

Ethereum Traders Options Positioning (Source: Deribit)

Those levels do not mean the market expects ETH to fall to $1,000 immediately. Instead, they show that traders are paying for protection after several support signals weakened at the same time.

BlockScholes data show the shift has also appeared in volatility pricing. ETH short-dated implied volatility has jumped from a year-to-date low of 36% to 67%, signaling that traders now expect larger near-term price swings.

The move has been accompanied by a sharper skew toward out-of-the-money puts. The seven-day ETH options skew has moved to about -14%, compared with roughly -3% to -4% in late May. Additionally, the demand for puts has also spread across 7-day, 14-day, 30-day, and 90-day maturities.

That broadening shows traders are not just hedging a single event or one short-term move. They are preparing for the possibility that Ethereum’s weakness could extend if ETF outflows continue, exchange inflows stay elevated, and large holders remain below key cost levels.

The next test is whether $1,500 becomes a floor or a trigger. A stabilization in ETF flows and a decline in exchange deposits could help ease pressure.

Without that, the options market’s focus on downside strikes may become the clearest signal of where traders expect the next phase of the selloff to concentrate.

The post Ethereum’s $1,500 test shows how quickly Wall Street’s crypto trade has turned appeared first on CryptoSlate.

Bitmine Plans 9.5% Preferred Stock Plan to Fuel Its Ethereum Buying Spree

Equities, Ethereum, Institutional Bitmine, BMNP, ETH Accumulation, Ethereum, NYSE, Preferred Stock, SEC Filing

Ethereum treasury company Bitmine has filed to launch a public offering of 3 million shares of its 9.50% Series A Perpetual Preferred Stock.

The proceeds are expected to support a range of corporate and Ethereum-focused initiatives.

Bitmine’s New Offering

According to the company’s filing with the Securities and Exchange Commission (SEC), the net funds raised may be used for general corporate purposes, including the acquisition of additional ETH and other digital assets, the expansion of its staking and validator infrastructure through its MAVAN platform, working capital requirements, strategic investments tied to the Ethereum ecosystem and broader digital asset adoption, and potential repurchases of its common stock under an existing buyback program.

The preferred shares will carry cumulative dividends at a fixed annual rate of 9.50% based on a stated value of $100 per share. The dividends are payable in cash when declared by the company’s board. If any declared dividend is not paid on schedule, additional compounded dividends will accrue weekly, and the applicable rate will gradually increase up to a maximum of 15% per year until the outstanding amount is fully settled.

Bitmine has applied to list the new preferred shares on the New York Stock Exchange under the ticker symbol “BMNP,” and trading is expected to begin within 30 days of the initial issuance if the listing receives approval.

Interestingly, Bitmine’s application is based on a model similar to Saylor-led Strategy’s STRC perpetual preferred stock, which pays an 11.5% dividend. STRC has attracted investors looking for monthly income while gaining indirect exposure to Bitcoin. After raising around $2.52 billion through its initial public offering in July 2025, the program expanded through follow-on issuances. The total notional amount of STRC is approximately $10.5 billion.

Aggressive ETH Accumulation

With its Ethereum holdings rising to 5.42 million ETH, Bitmine said it has reached roughly 90% of its target to own 5% of all ETH. The company also said 4.72 million ETH are staked, with a portion of those assets secured through its MAVAN staking platform.

As one of the sector’s most active buyers, Bitmine has built the largest ETH treasury and the second-largest overall crypto treasury after Strategy. The sharp drop in Ethereum, which is down more than 45% year to date, has created significant challenges for Ethereum treasury companies. Recent data estimates indicate that Bitmine is carrying unrealized losses of more than $10 billion.

Even so, Chairman and Fundstrat co-founder Tom Lee remains optimistic on Ethereum, as he predicted the end of the bull market and the beginning of crypto spring.

The post Bitmine Plans 9.5% Preferred Stock Plan to Fuel Its Ethereum Buying Spree appeared first on CryptoPotato.

Bitcoin Critic Peter Schiff Predicts USDT Will Eclipse BTC

Bitcoin, Stablecoins Bitcoin, Ethereum, Market Cap, Peter Schiff, Stablecoins, Tether, USDT

Bitcoin dropped to around $61,500 in recent days, its weakest level in roughly four months, and Peter Schiff wasted no time connecting that slide to a broader argument he has been making about stablecoins.

A Stablecoin On The Move

Tether’s USDT has already climbed to a market capitalization of nearly $188 billion, according to data from DeFiLlama, closing the gap with Ethereum to just under $26 billion. Schiff, the economist and longtime Bitcoin critic, says the numbers point to an inevitable outcome.

“The market cap of Tether will soon surpass the market cap of Ethereum,” Schiff wrote on X. “It will eventually surpass the market cap of Bitcoin, too. The only question is how long it will take.”

USDT has become a dominant tool for moving money across crypto markets, and its reach now extends into payments, remittances, and digital dollar transfers — a trend he says supports his case.

USDT holds a one-dollar peg, setting it apart from Bitcoin and Ethereum, and that stability makes it the go-to choice for users who want to move money without taking on price risk.

The market cap of Tether will soon surpass the market cap of Ethereum. It will eventually surpass the market cap of Bitcoin too. The only question is how long it will take.

— Peter Schiff (@PeterSchiff) June 4, 2026

Not His First Warning

Schiff has been sounding alarms about Bitcoin for years. His latest comments include a prediction that BTC could eventually fall below $20,000, which would represent a drop of roughly 80% from its October 2025 peak near $126,200.

He has also pointed to weakness in tech stocks as a pressure point for Bitcoin, noting that the crypto asset has relied on the broader tech rally for support.

“It looks like the correction in tech stocks has finally begun,” Schiff said. “As tech stocks sell off, Bitcoin should crash. Gold will likely head in the opposite direction.”

Bitcoin recently suffered a sharp hourly decline of more than $2,000, briefly touching $61,460, as selling pressure spread across the market and triggered over $1 billion in leveraged liquidations.

USDT’s Growing Reach

Reports indicate Ethereum’s position as the second-largest crypto asset is now under pressure from a stablecoin rather than another blockchain competitor.

At current figures, USDT would need to grow by roughly 15% to pull ahead of Ethereum, while matching Bitcoin’s $1.28 trillion market cap would require a far larger expansion of nearly seven times its present size.

Schiff’s prediction has drawn attention not just for its boldness but for its timing, arriving as stablecoin adoption continues rising and crypto markets face renewed turbulence.

Whether the prediction holds up remains an open question, though the narrowing gap between USDT and Ethereum suggests the first part of his forecast may not be far off.

Featured image from Unsplash, chart from TradingView

Bitmine acquires 26,497 ETH, slowing ETH purchase pace drastically from previous week amid stock struggles

Equities, Ethereum, Institutional Bitmine, Crypto Treasury, ETH Holdings, Ethereum, Ethereum Staking, MAVAN Platform, Tom Lee

Bitmine (BMNR) has once again purchased ETH this week, acquiring 26,497 ETH for about $53 million, a massive 75% cut from its last weekly purchase of 120,000 ETH. This comes amid dips in the company’s stock in addition to a drop in Ethereum’s market performance in the past week.

The approximately 75% reduction in buying pace comes as BMNR shares have fallen 38% over the past year, trading near $19.27, with a slip in Ethereum itself by almost 1.8% over the past 24 hours to roughly $1,980.

Bitmine approaches 5% target

Bitmine’s total Ether holdings now sit at about 5.42 million tokens, or 4.49% of the entire network’s circulating supply of about 120.7 million ETH, the company said. That puts the firm at about 90% of the way toward its well publicized goal of controlling 5% of ETH’s total supply.

Chairman Tom Lee, who is also Fundstrat’s co-founder, has mentioned repeatedly that the deceleration in ETH purchases are intentional. At Consensus 2026 in Miami last month, Lee said Bitmine planned to reduce its rate of accumulation as it closed in on the 5% threshold, as previously reported by Cryptopolitan.

“In our view, ETH prices are not reflecting the strengthening of Ethereum fundamentals,” Lee said in Monday’s statement. “But then again, this is not surprising given we are in the early stages of crypto spring.”

The company has purchased more than one million ETH since January, making it the largest publicly traded Ethereum treasury firm by holdings.

Bitmine’s portfolio and staking plans

Bitmine reported total crypto and cash holdings of $11.6 billion as of May 31, holding 203 Bitcoin, $446 million in cash, a $180 million stake in Beast Industries, and a $93 million position in Eightco Holdings (ORBS) beyond its total ETH holdings.

Staking has become a massive revenue stream for Bitmine, as about 4.7 million tokens of Bitmine’s 5.4 million ETH have been staked through its MAVAN platform. This makes the company the largest Ethereum staker globally. The firm estimates an annual staking revenue of $258 million currently, with projections reaching $300 million by the end of 2026.

Markets have been negative

This ETH purchase slowdown has also come during a rough stretch for the general crypto markets. Bitcoin dropped by about 2.5% and briefly fell below $72,000 after Michael Saylor’s Strategy (MSTR) disclosed its first BTC sale since 2022, selling 32 coins for $2.5 million to cover dividend payments.

Retail traders on Stocktwits also expressed frustration regarding BMNR’s stock decline, comparing its poor performance to Hyperliquid Strategies (PURR), whose stock was approaching a record high as Hyperliquid’s native token topped $74 and entered the top 10 cryptocurrencies by market cap.

Bitmine needs to purchase roughly another 61,000 ETH to hit the 5% total ETH supply ownership mark. At last week’s buying pace, that would take the company about two weeks. This means the firm is right on the cusp of its 2026 goal, and it is yet to be seen how this would positively or negatively impact the BMNR stock price.

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Hyperliquid Enters Top 10 Crypto With New ATH, But How High Will It Be If It Overtakes Ethereum?

Blockchain, DeFi, Ethereum Altcoins, Cryptocurrency Market Cap, DeFi, Ethereum, HYPE Token, Hyperliquid, Perpetual Futures DEX, Price Prediction

Hyperliquid (HYPE) recently broke into the top 10 cryptocurrencies by market capitalization, sitting alongside top players like Bitcoin (BTC) and Ethereum (ETH), after its price surged past $50 and set a new all-time high. Now, on-chain analytics platforms are showing what HYPE’s ultimate price could become if it surpasses Ethereum’s market cap.

Hyperliquid’s ATH Price If It Surpasses Ethereum’s Market Cap

Hyperliquid skyrocketed past $50 a few days ago, surpassing Dogecoin’s ranking to take the 9th spot as one of the largest cryptocurrencies in terms of market capitalization. The move marks the first time the token has traded above this zone since late October 2025.

Currently, HYPE has extended its rally well beyond $60. The breakout reflects a strong shift in trading activity around the token, as well as renewed interest and confidence in DeFi protocols and AI-backed tokens. HYPE’s move back into this historic price range also suggests that traders and investors are once again engaging more actively with Hyperliquid’s perpetual futures DEX.

Interestingly, the recent rally in the HYPE price has brought renewed focus on Ethereum, one of Hyperliquid’s biggest crypto and DeFi rivals. While Ethereum remains a dominant benchmark for decentralized applications, Hyperliquid is designed specifically for financial trading and derivatives.

Nevertheless, data from Marketcapof has revealed how high HYPE’s price could reach if its market capitalization of $15.99 billion surpasses Ethereum’s, which is around $250.99 billion. Projections indicate the token could move well beyond its previous all-time high, potentially reaching approximately $1,127, marking a 17.92x from present levels.

At more extreme ATH levels, where market euphoria is likely at its peak, estimates place HYPE as high as $2,633. This would represent a gain of about 42x from current prices, underscoring the scale of the cryptocurrency’s potential upside.

Competition Intensifies As HYPE Captures More ETF Inflows Than ETH

Before recording an ATH, Hyperliquid has been strengthening its market position as capital continues to rotate away from major legacy assets like Bitcoin and Ethereum toward newer, high-growth protocols. HYPE’s recent performance reflects both rising adoption of its DEX platform and a broader shift in liquidity across the crypto sector.

A key driver behind the bullish momentum was the launch of spot HYPE ETFs by investment management firms Bitwise and 21Shares in May. The products have attracted millions of dollars in inflows, underscoring steady institutional demand for HYPE amid heightened derivatives activity.

Earlier in the year, market volatility linked to the US-Iran war triggered record perpetual futures volume on Hyperliquid, pushing activity on the platform to new highs. Liquidity conditions also improved after Coinbase, the world’s largest crypto exchange, became the official USDC provider on Hyperliquid.

Against this backdrop, Ethereum dominance is waning significantly. The cryptocurrency’s price has struggled to maintain momentum, falling roughly 30% year-to-date. ETF flow data reflects this shift, with about $1 billion exiting Bitcoin and Ethereum products while XRP and HYPE funds recorded about $94 million in combined inflows.

“Ethereum Is a Giver, Not a Taker”: David Hoffman Explains ETH Exit

Blockchain, DeFi, Ethereum Bankless, Bitcoin Comparison, Cryptocurrency Exit, David Hoffman, DeFi, ETH Price, Ethereum, layer 2.

Bankless co-founder David Hoffman said he sold his Ether holdings because he believes the long-standing “ETH is money” thesis has already largely played out. Despite this, he remains strongly bullish on Ethereum as a network.

According to Hoffman, the decision did not come lightly, given that he built his career, business, community, and identity around Ethereum.

Ethereum Chose the Hard Path Unlike Bitcoin

In his latest tweet, Hoffman stated that the “ETH is money” thesis depended on Ethereum succeeding across multiple layers of coordination, including decentralized leadership, governance, Layer 2 ecosystems, roadmap execution, and technological development.

Hoffman described Ethereum as “not Bitcoin,” and said that Bitcoin simplified its blockchain to maximize the value of BTC, while Ethereum pursued a more ambitious path by expanding utility across decentralized applications, finance, tokenization, and infrastructure. He even went on to add that Ethereum achieved part of that vision and earned the market capitalization it currently has, but said the opportunity for ETH to be significantly rerated higher by the market now appears to be closing.

The Bankless co-founder also explained that the broader “strong version” of crypto, which focused on decentralized finance, NFTs, DAOs, and crypto-native systems, failed to maintain long-term mainstream support outside the 2020 to 2022 period. He said crypto’s reputation later became associated with scams, grifts, and speculative behavior, which ended up weakening the social belief system required for ETH to function as money at a global scale.

He further stated that Ether’s utility increasingly benefits other forms of money, especially stablecoins and tokenized dollars, rather than ETH itself. Hoffman described Ethereum as a “giver, not a taker,” while saying that the network provides secure blockspace, tokenization infrastructure, and DeFi support at minimal cost rather than extracting maximum value for ETH holders. He said Ethereum’s architecture prioritizes applications, rollups, and ecosystem growth over ETH itself, which makes it difficult for the underlying crypto asset to fully achieve global money status without overwhelming market dominance.

Ethereum in Crisis?

Hoffman’s decision also comes at a time when bearish sentiment around Ethereum has been intensifying. A recent report by Santiment found that social media discussions have increasingly shifted from optimism toward frustration and concerns about further downside.

The analytics firm said traders have increasingly viewed ETH as “dead money” compared to stronger-performing crypto assets in 2026, as weakening ETF flows, declining on-chain activity, and growing competition from ecosystems such as Solana and BNB Chain added pressure on sentiment.

Rumors about prominent Ethereum figures reducing or exiting ETH positions, including discussions surrounding Hoffman, have also contributed to rising uncertainty in the market, especially as traders worried about insiders losing confidence in the asset.

The post “Ethereum Is a Giver, Not a Taker”: David Hoffman Explains ETH Exit appeared first on CryptoPotato.

SNX price prediction 2026-2032: Is SNX a good investment?

DeFi, Regulation & Policy Crypto Investment, DeFi Protocol, Ethereum, Price Prediction, SNX Token, Synthetix, Technical Analysis

Key takeaways:

The average SNX price prediction for 2026 is $0.560931.
In 2028, it will range between $0.99721 and $1.18, with an average price of $1.09.
In 2032, it will range between $2.24 and $2.43, with an average price of $2.34.

SNX is the native token for the Synthetix Network and is used for governance. It is listed on top exchanges like Binance, Uniswap, Coinbase, OKX, and Bybit. Synthetic is a decentralized protocol that allows you to create and transact synthetic tokens on the Ethereum blockchain.

Is SNX a good investment? Will it go up? Where will it be in five years? Let’s get into the SNX price prediction and technical analysis.

Overview

Cryptocurrency	Synthetix
Abbreviation	SNX
Current Price	$0.322 (+6.68%)
Market Cap	$110.61M
Trading Volume (24-hour)	$7.58M
Circulating Supply	344.51M SNX
All-time High	$28.77 (Feb 14, 2021)
All-time Low	$0.03258 (Jan 5, 2019)
24-hour High	$0.3252
24-hour Low	$0.295

SNX price prediction: Technical analysis

Metric	Value
Price Prediction	$0.2820 (-8.41%)
Fear & Greed Index	30 (Fear)
Market Sentiment	Neutral
Volatility	5.30% (High)
Green Days	12/30 (40%)
50-Day SMA	$0.3115
200-Day SMA	$0.4025
14-Day RSI	42.28 (Neutral)

Synthetix price analysis

TL;DR Breakdown:

Synthetix coin price analysis confirmed a solid bullish trend, with the price set at $0.322.
The altcoin gained a significant 6.68% in the last 24 hours.
SNX coin faces resistance around $0.329.

On May 25, 2026, Synthetix price analysis reveals an upward trend with a solid bullish recovery, as the altcoin’s price climbs back to $0.322 over the day. Overall, the cryptocurrency gained a significant 6.68% in value in the last 24 hours, rebounding sharply from yesterday’s steep correction. However, resistance is also present at $0.329, which may slow down the current bullish trend.

SNX/USD 1-day chart analysis

The one-day chart for Synthetix (SNX) reflects a bullish trend following recent corrections; however, the market has yet to shift into a fully buyer/seller-dominated phase. The token has registered significant gains of 6.68% for the last 24 hours, as it has increased to $0.322 today. A new green candlestick on the price chart highlights the presence of bullish dominance.

The distance between the Bollinger Bands defines the intensity of volatility. This distance is wide, leading to high volatility at the moment. Currently, the upper limit of the Bollinger Bands indicator, indicating resistance, sits at $0.369. Meanwhile, its lower limit, serving as support, has moved to $0.285.

SNX/USD 1-day price chart. — *SNX/USD* *1-day price chart. Source: TradingView*

The Relative Strength Index (RSI) indicator curve is trending in the neutral area, currently at 51. This situation suggests that buyers are currently controlling the momentum, and bullish pressure might increase if they continue to lead as the coin gains value.

SNX/USD 4-hour chart analysis

The four-hour price analysis of Synthetix Coin also signals buying interest for the coin at the current price level. The SNX/USD price significantly increased to $0.322 after going through a recovery in the last four hours. The volatility levels are increasing on the 4-hour chart, suggesting a high probability of an upcoming reversal or further price appreciation.

The upper Bollinger Band has shifted to $0.319, indicating a broken resistance level. The lower Bollinger Band has moved to $0.292, showing the support level. Overall, the indicator suggests that the bulls have taken the price above the upper limit of the indicator.

SNX/USD 4-hour price chart. — *SNX/USD* *4-hour price chart. Source: TradingView*

The RSI indicator is in the neutral region. Its value increased to 64 over the past four hours. The upward curve on the RSI graph reflects a positive market sentiment. The bulls have been dominating the price chart for the past few hours, and this trend has also resulted in a relatively balanced trading setup for intraday traders for the time being.

SNX technical indicators: Levels and action

Daily simple moving averages

Period	Value ($)	Action
SMA 3	0.3038	BUY
SMA 5	0.3086	BUY
SMA 10	0.3097	BUY
SMA 21	0.3268	SELL
SMA 50	0.3115	BUY
SMA 100	0.3137	BUY
SMA 200	0.4025	SELL

Daily exponential moving averages

Period	Value ($)	Action
EMA 3	0.3044	BUY
EMA 5	0.3067	BUY
EMA 10	0.3120	BUY
EMA 21	0.3170	BUY
EMA 50	0.3166	BUY
EMA 100	0.3394	SELL
EMA 200	0.4166	SELL

What can we expect from the SNX price analysis next?

Synthetix Coin price analysis shows a bullish trend regarding current market events. The coin’s price has been trending near $0.322 for the last 24 hours. If the buying momentum continues, the SNX price might retest resistance at the $0.347 level. Conversely, if selling pressure overwhelms, the altcoin may again plunge to the $0.292 level.

Is SNX a good investment?

The Synthetix rebranding in 2018 rejuvenated the ecosystem, which has grown continually with multiple listed synths. Despite concerns over the stability of its stablecoins, SNX, the native token, is set to mark new records, as seen in Cryptopolitan’s SNX price predictions from 2026 to 2032. It is expected that SNX will reach $1.81 by 2030.

Why is SNX up?

The cryptocurrency market is getting positive sentiment today, and SNX is following suit. From a larger perspective, the token is slowly recovering as the SNX price is trading at $0.322, and it has seen an appreciation of 6.68% of its total value in the last 24 hours, and the gains are on the higher side.

What is the target price for SNX?

The target price for SNX is $0.560931 for the current year, which is still quite higher than the current Synthetix price.

Will SNX reach $5?

The current price action does not justify predicting a $5 target. However, in the cryptocurrency market, things change rapidly, and if the token maintains its price levels, a recovery can be initiated. It can be expected that SNX will reach a maximum of $2.43 by 2032. However, this is not investment advice, and anyone willing to purchase SNX tokens should seek independent professional consultation.

Will SNX reach $1?

Considering the future price movements, SNX will reach the $1 level by 2028. The last time SNX was seen at the $1 level was in November 2025.

Will SNX reach $10?

According to crypto analysts’ price predictions, SNX may not reach this level in the next five years. Considering the current market cap of the token, it seems like a distant target.

Will SNX reach $100?

No, market analysts don’t expect SNX to reach $100 during the next 10 years, considering the long term Synthetix price forecast.

How high can SNX go?

The highest expected price for SNX is $2.14, which it will achieve in 2032.

Does SNX have a future?

SNX is trading significantly lower than its mid-December price levels, making it an ideal time for buyers to enter the market. Given its current low price and a favorable future valuation of $2.43 by the end of 2032, the asset appears to be a worthwhile investment. However, one’s own research is advised.

Recent news/ updates on SNX

Synthetix introduced the new Synthetix Markets page. The option will show live stats for market sentiment, open interest, 24h volume, funding rate, token dominance, and implied volatility + alt dominance.

Introducing the new & improved Synthetix Markets page ⚔️

Synthetix Markets now shows live stats for:

🔹 Market Sentiment
🔹 Open Interest
🔹 24h Volume
🔹 Funding Rate
🔹 Token Dominance
🔹 Implied Vol + Alt Dominance

Get a read on conditions before you dial up the leverage pic.twitter.com/BTS3tC2AKI

— Synthetix ⚔️ (@synthetix) April 29, 2026

SNX price prediction May 2026

This month, SNX is expected to reach a high of $0.430, with an average price of $0.310 and a minimum trading price of $0.243.

Month	Potential Low ($)	Potential Average ($)	Potential High ($)
May	$0.243	$0.310	$0.430

SNX price prediction 2026

The price of SNX is predicted to reach a minimum value of $0.211 by Q4 of 2026. Traders can anticipate a maximum value of $0.560931 and an average trading price of $0.467442.

Year	Potential Low ($)	Potential Average ($)	Potential High ($)
2026	$0.211	$0.467442	$0.560931

SNX price predictions 2027 – 2032

Year	Potential Low ($)	Potential Average ($)	Potential High ($)
2027	0.685582	0.77907	0.872559
2028	0.99721	1.09	1.18
2029	1.31	1.40	1.50
2030	1.62	1.71	1.81
2031	1.93	2.03	2.12
2032	2.24	2.34	2.43

Synthetix price prediction 2027

The year 2027 will experience more bullish momentum. According to the SNX price prediction, it will range between $0.685582 and $0.872559, with an average trading price of $0.77907.

Synthetix price prediction 2028

The Synthetix Network token prediction climbs even higher into 2028. According to the projections, the price of SNX will range between $0.99721 and $1.18, with an average of $1.09.

Synthetix price prediction 2029

According to our Synthetix Network token price prediction for 2029, we expect a maximum price of Synthetix to be $1.50, a minimum price of $1.31, and an average price of $1.40.

Synthetix price prediction 2030

According to the Synthetix price prediction for 2030, the price of SNX will range from $1.62 to $1.81, with an average price of $1.71.

Synthetix price prediction 2031

The Synthetix Network token price prediction for 2031 indicates the price will range between $1.93 and $2.12. The average Synthetix price forecast is $2.03.

SNX price prediction 2032

The Synthetix forecast for 2032 is a high of $2.43. According to the SNX coin price prediction, it will reach a minimum price of $2.24 and average at $2.34.

Synthetix (SNX) price prediction 2026 – 2032. Source: Cryptopolitan

Synthetix market price prediction: Analysts’ SNX price forecast

Firm	2026	2027
DigitalCoinPrice	$0.16	$0.13
CoinCodex	$0.2749	$ 0.2305

Cryptopolitan’s Synthetix (SNX) price prediction

Our analysis shows that SNX has been highly volatile since its historical listing price. It remains unpredictable at current levels, with predictions indicating it will break out higher. SNX will achieve a high of $0.560931 by the end of 2026. SNX is expected to trade between $0.685582 and $0.872559 in 2027. In 2032, SNX will be priced between $2.24 and $2.43 with an average price of $2.34.

Synthetix historic price sentiment

SNX price history. — SNX price history | Coinmarketcap

Kain Warwick launched Synthetix in September 2017 under Havven (HAV).
The HAV Airdrop Campaign ran between 4 and 14 February 2018 and offered two million tokens for around $1 million.
On November 30, 2018, Synthetic announced its rebranding from Havven. This included renaming its native token, HAV (Havven token), to SNX. The contract address did not change.
It registered its lowest price at $0.03258 on January 5, 2019.
Unlike most mega-altcoins, SNX did not rally after launch; it consistently traded below $0.5 until the last quarter of 2019.
In 2020, it made a mega rally to $7.3, as per historical SNX market data. In the 2021 bull cycle, it shot higher, and on February 14, it registered its all-time high at $28.77.
It reversed to $5 in July before pumping again to $15 in September.
In the 2022 crypto winter, SNX shed most of its value as it retreated to the $2 mark by the end of the year.
In 2023, it consistently traded between $1.5 and $3 until the last quarter, when it had its break.
In March 2024, SNX reached a high of $5; in July, SNX came down from the $2.01 to $1.65 range.
In August 2024, the SNX token’s price dipped as low as $1.20, and September saw a maximum price of $1.71.
In October 2024, SNX dipped and became rangebound. It closed the month with a $1.31 price tag, while December saw a stream of improved prices with a peak price of $3.38.
During the remainder of December, SNX kept shedding its value, and it entered 2025 with a wave of correction to $1.90.
The highest price of the SNX token was 2.27 in January, but it corrected to $1.20 in February.
In March, SNX price declined to $0.89, and in April it further descended to the $0.77 range.
In May 2025, it saw some recovery to $0.926, improving its market capitalization, and in July, the token peaked at $0.781, showing significant growth.
From August to September, SNX’s average price remained around $0.65 to $0.67, and in October 2025, SNX was trading above $1, finally peaking at $2.58 on the 13th of the month.
At the start of November, the SNX token was trending below $1.00. By the end of November, the price of SNX declined toward $0.55.
SNX started 2026 with a price tag of $0.45 under bearish pressure, and it decreased to $0.34 in February. The token was maintaining its price level near the same range till April.
In May, SNX is trending near $0.314, as the current market sentiment is neutral.

Ethereum’s selloff tests whether its neutrality-first model can defend ETH’s value amid Foundation ‘brain drain’

Blockchain, Ethereum, Institutional Bear Market, ETH, Ethereum, Ethereum Foundation, Institutional Outflows, Layer-1 Networks, Market Sentiment

Ethereum’s market sentiment has deteriorated significantly as the blockchain network’s native ETH token moves through a medium-term bear phase.

Data from blockchain analytics platform Santiment shows that while ETH-related discussions increased in frequency throughout May, the tone of that commentary has shifted toward frustration, disappointment, and concern about deeper downside potential.

Ethereum Market Sentiment (Source: Santiment)

Analysts at the firm noted that this shift in sentiment reflects a combination of market pressures building simultaneously, including weak spot price action, persistent exchange-traded fund (ETF) outflows, high-profile departures from the Ethereum Foundation, public criticism from longtime ecosystem supporters, and stronger price momentum across competing layer-1 networks like Hyperliquid, Zcash, and Solana.

Broader market data from CryptoQuant reinforces this picture of institutional deceleration. The firm’s spot market and fundamental indicators point to severe structural weakness as ETH prices drop toward the critical $2,000 support level.

This spot weakness is most apparent in Ethereum’s performance relative to the broader market. The ETH/BTC ratio recently fell to roughly 0.02758, a 10-month low, signaling that Ethereum has lagged behind Bitcoin amid current weak market conditions.

This has created a split-market identity in which spot investors are steadily reducing exposure, market liquidity has thinned, and institutional buying pressure has largely vanished from major trading desks.

Spot selling leaves Ethereum without a durable bid

Indeed, CryptoQuant’s fund-tracking data highlights the extent of the contraction in the institutional bid over the last two quarters.

According to the firm, total fund holdings, which peaked above 7 million ETH in October 2025, have steadily declined to a range around 5.5 million ETH.

This persistent unwinding indicates that large-scale allocators have systematically reduced their core exposure throughout the current multi-month drawdown.

Notably, the regulated ETF market has reinforced this structural pressure. Total assets under management across Ethereum ETFs now stand near $12.14 billion, marking a 23% decline from their January peak.

Data from SoSoValue shows that May proved particularly challenging, with two consecutive weeks of net outflows totaling approximately $470 million, representing one of the largest episodes of concentrated capital flight of the year.

Ethereum ETFs Weekly Outflows (Source: SoSoValue)

This institutional withdrawal is further illustrated by the Coinbase Premium Index, which tracks the price disparity between Coinbase Pro and major offshore platforms.

The index remained negative throughout May, signaling an absence of spot demand from US institutional buyers.

At the same time, ETH liquidity has thinned alongside this reduction in fund reserves.

According to CryptoQuant, daily fund trading volume has trended downward since February 2026, dropping well below its trailing 1-year moving average to a recent range of $17 million to $42 million.

This volume compression points to a thinner spot market where dip-buying appetite has faded, leaving the asset highly exposed to volatility spikes during periods of negative news.

ETH options traders hedge as leveraged longs hold on

Beneath the spot market liquidation, derivatives data reveal an ongoing debate over whether ETH is breaking into a structural decline or forming a base for a leveraged rebound.

This disconnect has left the derivatives market divided, with professional traders aggressively hedging downside risk even as speculative perpetual futures traders maintain long positioning.

Data from Block Scholes reveals that ETH’s 25-delta risk reversal skew over a seven-day horizon has traded near-7%, indicating that options market participants are paying a premium for downside put protection.

This defensive posture is supported by clearing data from the Deribit exchange, where open interest for put options targeting the $2,100 and $2,000 strike prices has concentrated past $380 million, placing those technical areas at the center of short-term institutional positioning.

ETH Options Traders Positioning (Source: Deribit)

Market Note: This concentrated options activity reflects a market preparing for extended weakness. Having already slipped below the $2,100 support shelf, Block Scholes’ risk appetite indexes show slowing momentum, leaving the asset dependent on defensive hedging in the absence of spot accumulation.

Concurrently, the perpetual futures market sends a more complicated signal. CryptoQuant data shows that Ethereum’s derivatives funding rate has settled firmly in positive territory, reaching 0.0082 on May 21, 2026.

Ethereum Funding Rates (Source: CryptoQuant)

This positive rate indicates that speculative long bias has not fully collapsed despite declines in market capitalization, fund holdings, and spot trading volume.

The resulting split identity creates a delicate technical backdrop: while options traders position for a breakdown, perpetual futures traders continue to hold leveraged long exposure.

This structural disconnect can fuel rapid short-squeezes if spot demand unexpectedly returns, but it significantly elevates the risk of cascading liquidations if the spot price breaches the heavy open interest concentrated at the $2,000 floor.

Ethereum Foundation exits collide with a weaker ETH value thesis

Ethereum’s financial underperformance has coincided with an acceleration of senior personnel departures from the Ethereum Foundation (EF), the Swiss non-profit entity that stewards the blockchain’s core development.

The internal churn intensified following the formal resignations of research veterans Carl Beek and Julian Ma. Beek had spent seven years focused on Beacon Chain design, while Ma authored the network’s Forwarding Oversight Committee for Incentivized Labs (FOCIL) framework.

Their departures bring the total number of senior exits or step-backs to at least nine since February, with five landing in May alone.

The list includes former co-Executive Director Tomasz Stańczak, board co-steward Josh Stark, Protocol Guild contributor Trent Van Epps, and protocol cluster leads Barnabé Monnot and Tim Beiko.

Additionally, senior researcher Alex Stokes recently commenced a three-month sabbatical, further thinning the organization’s visible technical leadership during a period of acute market stress.

Ecosystem analysts trace this administrative migration back to the publication of the foundation’s “Mandate” document in mid-March.

The 38-page framework codified the foundation’s dedication to “CROPS” principles: censorship resistance, open-source deployment, privacy, and base-layer security.

Crucially, the document framed the foundation as an ecosystem steward rather than a corporate enterprise, explicitly stating that its purpose is to protect network neutrality, not to maximize token price, optimize investor returns, or aggressively coordinate commercial expansion.

This neutrality-first posture has become increasingly difficult for parts of the market to accept as alternative networks capture speculative market share.

Tommy Shaughnessy, co-founder of Delphi Ventures, noted that the departures are more serious than they appear, adding that the exit of reform-minded personnel leaves fewer internal voices to challenge the foundation’s structural direction.

Reform calls test Ethereum’s neutrality-first model

The perceived lack of commercial execution by the foundation has prompted several prominent former insiders to call for structural governance reforms.

Dankrad Feist, a notable researcher who left the foundation last year to join the Stripe-backed layer-1 network Tempo, publicly advocated creating an entirely separate entity to safeguard the network’s economic relevance.

Feist proposed establishing an independent, alternative organization backed by at least $1 billion in capital, funded in part by network staking revenues. This proposed body would be directly accountable to token holders and expressly tasked with driving ETH’s financial adoption and market value.

Feist highlighted that the current foundation controls less than 0.1% of the total circulating ETH supply and receives no direct inflows from base-layer staking yields or network transaction fees.

According to him, this leaves the ecosystem without an agile institution incentivized to promote the asset in capital markets.

Bankless co-founder Ryan Sean Adams supported this view, stating that Ethereum’s future cannot depend solely on the foundation.

Adams argued that the ecosystem requires competitive, well-capitalized institutions dedicated to capital efficiency, aggressive communication, and commercial execution. These are roles the foundation was never structurally designed to fulfill.

The consensus among these reform proposals is not to replace the foundation, but to establish a dual-institution model: one to protect base-layer neutrality and public goods, and another to promote the asset and compete for institutional capital.

This push for reform has drawn a direct response from Ethereum bulls, who argue that the market is overreacting to short-term price action and natural organizational transitions.

ETH investor member Ryan Berckmans characterized the talent turnover as a healthy handoff to a younger generation of developers.

Berckmans argued that Ethereum has successfully navigated previous periods of regulatory pressure and leadership transitions while still delivering major upgrades like the Merge, blob transactions, and a dominant position in on-chain application capital.

He noted that the expanding deployment of stablecoins and tokenized assets by global corporations continues to support the network’s long-term trajectory.

This perspective is shared by substantial institutional holders.

Thomas Lee, chairman of BitMine, dismissed the current market anxiety as typical cyclical capitulation. BitMIne is the largest publicly traded corporate holder of ETH, with a portfolio of 5.2 million ETH and over $10 billion actively staked tokens.

BitMine Key Metrics (Source: BitMine Tracker)

Lee asserted that blockchain infrastructure represents the foundational settlement highway for agentic artificial intelligence commerce and institutional finance, positions where Ethereum maintains a distinct structural advantage due to its established security record, deep liquidity, and institutional familiarity.

How Ethereum can recover from the current FUD

Market observers have noted that Ethereum’s near-term trajectory now hinges on whether its technical roadmap and commercial moats translate into a coherent investment thesis for ETH.

Strategic analysis from Galaxy Digital indicates that the network must execute a disciplined operational agenda to reverse ongoing capital flight.

According to Galaxy’s recovery framework, the immediate focus must center on shipping the Glamsterdam upgrade, keeping the subsequent Hegotá deployment on track, clarifying administrative responsibilities within the foundation, and concentrating resources on core commercial verticals.

These key areas include high-value decentralized finance, institutional asset issuance, tokenized RWAs, stablecoin settlement, and privacy-preserving financial infrastructure. These are sectors where Ethereum’s credible neutrality and security record serve as a commercial necessity rather than an abstract principle.

Galaxy also pointed to the need for Ethereum to move faster on narratives likely to define the next cycle, including layer-1 scaling, on-chain privacy, post-quantum security, and AI-native economic infrastructure.

While much of this technical architecture is documented in the open-source “Strawmap” development framework, the more complex challenge remains the coordination among commercial and institutional actors.

This coordination gap sits at the center of Ethereum’s current market friction.

The foundation’s Mandate provides a clear statement of base-layer engineering principles, but it does not provide capital markets with a simple answer on value accrual, nor does it create an entity designed to defend the asset against aggressive layer-1 competitors.

Consequently, the current drawdown has evolved into more than a simple price correction; it is an active test of whether a decentralized structure can distribute commercial responsibility across new institutions without losing operational coherence.

If the ecosystem can turn its current administrative churn into clearly defined roles and convert its technical roadmap into a concise asset case, this period of underperformance could serve as a necessary governance reset.

However, if it cannot, the market may continue to treat weak spot demand, senior departures, and the application-layer economic shift as evidence that Ethereum’s network strength no longer guarantees protection of the underlying token’s value.

The post Ethereum’s selloff tests whether its neutrality-first model can defend ETH’s value amid Foundation ‘brain drain’ appeared first on CryptoSlate.