Adam Efrima is the SSV Core team Co-founder. He has been active in the crypto industry since 2013. Over eight years living in China working in the financial industry and fintech space, Adam has worked in CITIC Bank covering outbound investments for Chinese SOEs, he was also in charge of setting up the eToro Shanghai operation. Since then, Adam has been deeply involved in Ethereum staking, co-founding top performing staking project Bloxstaking as well as co-founding SSV Network, a decentralized validator infrastructure for ETH staking.

Adam Simmons is Chief Strategy Officer at RDX Works, a key contributor to the Radix public ledger. He has over 13 years of experience in building &amp; growing businesses in a range of industries including online video, blockchain &amp; digital marketing. With experience in both senior leadership &amp; hands-on roles, he has repeatedly recruited, managed, and trained highly successful teams within marketing, customer success and operations functions. Adam is also a previous member of the UK Paralympic Sprint Kayaking Team and has competed in multiple World and European Championships.


Adam Swick is the Chief Growth Officer at Marathon Digital Holdings. Prior to joining Marathon, he served as a principal at Refinery Ventures, where he was responsible for identifying and recommending business strategies to accelerate the growth of all companies in Refinery’s portfolio. Before Refinery, Swick was the director of strategic finance at Kraken Digital Asset Exchange, where he managed the company’s balance sheet, debt program, investor relations, and all forecasting activities. Prior to Kraken, he founded Swick Capital, a crypto-asset hedge fund, worked at Pritzker Group Venture Capital, and was a consultant at Boston Consulting Group. Swick holds an MBA from the Kellogg School of Management at Northwestern University and a BS in finance from the Wharton School of Business at the University of Pennsylvania.

Adrian Brink is the co-founder of Namada and Anoma, where he focuses on building privacy-preserving systems that are resilient to global crises. Previously, he was a core developer at Tendermint (Cosmos) and worked at the Web3 Foundation. He also co-founded Cryptium Labs, which was later sold to Chorus One, and Metastate, where he contributed to major upgrades to the Tezos protocol​.

Adrien Stern is the founder &amp; CEO of Reveel, the omnichain payments infrastructure that enables one-click cross-chain payments to connect people across borders and networks. Before founding Reveel, Adrien led digital transformation efforts at BNP Paribas CIB. He was also previously a venture builder, and owns Bridge Music, a record label and recording studio. Adrien has a Bachelor’s degree in Sciences of Management from The University of Lausanne and a Master’s degree in Business Administration from Esade. 

Alex Hoffman is Head of Ecosystem at Superposition Finance. Superposition is revolutionizing DeFi by addressing its core challenges through robust risk management powered by Concordia’s best-in-class risk engine, omnichain functionality, and transparency.

Alexei Zamyatin is a co-founder of BOB, a first-of-its-kind hybrid Layer-2 powered by Bitcoin and Ethereum. He has been a Bitcoin and interoperability research contributor since 2015 and is most known for his work on trustless cross-chain bridges and L2s. Alexei holds a PhD in computer science from Imperial College London.


Alison Haire is the CEO and founder of Lilypad, a serverless, decentralized compute network that democratizes access to computational power by providing scalable infrastructure for AI, machine learning and other high-demand processes. Before founding Lilypad, she held roles at companies such as Filecoin, IBM and Accenture. Under her leadership, Lilypad leverages idle GPU capacity worldwide to fuel an open AI economy, providing cost-effective and scalable compute resources. Her work focuses on making high-performance computing accessible to more developers and researchers, while challenging the dominance of large centralized cloud providers​​.

With over 20 years of experience leading and designing games and tech companies, Alun is well-versed in creating innovative products that tackle experiential and developer challenges. In addition to his stewardship of LAOS Network, he is CEO and co-founder of the company building LAOS, Freeverse, which focuses on building scalable blockchain infrastructure. His history as the co-creator of ‘Barcelona World Race - THE GAME,’ a cutting-edge video game enabling virtual participation in real-world events, and his wider passion for gaming, have fed into his vision for LAOS Network as a solution for the intersection of Web3 tech with both gaming and real-world applications. Alun also led Shar3d.io, a pioneering company enabling collaborative 3D web applications, and served as CTO of Bodypal.com, a virtual garment services company. He holds a Ph.D. in Medical Physics from University College London.



Amanda Cassatt is the founder and CEO of Serotonin. Amanda previously served as Chief Marketing Officer of ConsenSys from 2016 through 2019. Joining one year after the launch of Ethereum, Amanda played a crucial role in defining, creating, and growing the narrative for ConsenSys, Ethereum, and blockchain overall.

Amanda stewarded the ConsenSys brand through its global expansion across enterprises, governments, developers, and consumers. She created and scaled the marketing team to over 50 people, serving both the ConsenSys brand and 50+ portfolio companies such as MetaMask, Infura, Truffle, and Gitcoin; managing teams in product marketing, growth, design, content, community, events, email, analytics and SEO. Amanda’s contributions to some of the most successful product launches, token sales and fundraises landed her on Forbes 30 Under 30 in 2016. Amanda is the author of the world's first web3 marketing book, Web3 Marketing: A Handbook for the Next Internet Revolution.

Amanda Keleher currently serves as Chief People Officer at Consensys, one of the largest and fastest-growing companies in the blockchain technology space. A well-rounded business leader with an over 25-year career in the technology space, Amanda is the driving force behind the human element of Consensys where she is responsible for overseeing all of the aspects of people, from building and maintaining the company culture to harnessing human capital as a key driver of business. 

Before joining ConsenSys, Amanda served as the Head of People at ThoughtWorks, a global technology consultancy company, for nearly ten years, where she led the global scale expansion by opening offices around the world and recruiting a diverse workforce at a time when the DevOps movement had just been born and a new skill set were yet to be developed. After her time at ThoughWorks, she served as the Executive Vice President, People &amp; Culture of Index Exchange, one of the world’s premier ad tech organizations; and as VP of People at Little Bits and Intent Media where she excelled in designing effective and creative strategies to attract and retain world-class talent in hyper competitive environments

Andrea Berry is a seasoned online video strategist with 15+ years of experience in transformative media partnerships. 

Her early successes include helping to launch Qello Concerts, the first direct-to-consumer live-music OTT service, later transforming it into Qello Media Services and Vimeo’s OTT channels offering across various industries as their first strategic sales director for their enterprise.

Currently, as the Head of Business Development at Theta Labs, Andrea leverages her expertise in online video and blockchain to drive strategic partnerships and growth opportunities for the company. She helps enterprises take advantage and lean into the opportunities Web3 presents. 

Andrew Redden is the CEO and CTO of Last Network, a blockchain platform focused on sustainable cash flow and reinvestment. Previously, he worked at Gitcoin and has contributed to numerous DeFi and Web3 projects. Redden's career reflects a commitment to developing technologies that prioritize long-term viability and community engagement​.

Andrew Thurman is a Data Editor based in Washington, DC. He previously wrote for CoinDesk and Cointelegraph, and worked in various roles for Chainlink and Nansen. His analysis has been quoted in The Financial Times, The Washington Post, The Wall Street Journal, Bloomberg, Forbes, Fortune, Reuters, The BBC, CNBC, and elsewhere. Contact Andrew at andrew@blockworks.co.

Andrey Sergeenkov writes educational articles as a freelancer. His works have been published in Coindesk, Cointelegraph, Entrepreneur and CoinMarketCap. He believes that transforming society towards lifelong learning, combined with decentralization in government and business, will lead to exponential social development.

Andy Bromberg is CEO of Beam and Contributor to the Eco Protocol. Eco has raised more than $90 million from an array of leading investors, including a16z Crypto, L Catterton, Activant Capital, Founders Fund, Pantera Capital, and others. Prior to Eco, Andy was Co-founder and President of CoinList. Andy is also a founding board member at FreeWorld, a non-profit seeking to end institutionalized poverty in the United States by providing access to living-wage jobs for people with criminal histories. He studied Mathematics and Computer Science at Stanford University and co-founded the Stanford Bitcoin Group.

An established and versatile Financial Executive with over two decades of experience running multiple trading businesses across top-level banks such as HSBC, Barclays, and UBS. After running the top Agency and SSA business for both UBS and Barclays, he took over Emerging Markets macro trading for Barclays. In 2018, wanting to go deeper into Emerging Markets he took a role as Head of Latam local markets trading where he was responsible for trading activities across Brazil, Mexico, Argentina, and Chile. In 2021 DeMartino moved into Crypto when he became CEO and founder of Coinbase Risk Strategies focused on DeFi and Derivatives trading. More recently he started Trident Digital Group, a crypto-native solutions firm that is focused on lending and safe yield generation and stablecoin adoption.


Anthony Scaramucci is the founder and managing partner of SkyBridge, a global alternative investment firm, and founder and chairman of SALT, a global thought leadership forum and venture studio.

Prior to founding SkyBridge in 2005, Scaramucci co-founded investment partnership Oscar Capital Management, which was sold to Neuberger Berman in 2001. Earlier, he worked in Private Wealth Management at Goldman Sachs &amp; Co.

In 2022, Scaramucci was ranked #47 in Cointelegraph’s Top 100 Influencers in Crypto and Blockchain. In 2016, he was ranked #85 in Worth Magazine’s Power 100: The 100 Most Powerful People in Global Finance. In 2011, he received Ernst &amp; Young’s New York Financial Services “Entrepreneur of the Year” Award.  Anthony is a member of the Council on Foreign Relations (CFR) and a board member of the Federal Enforcement Homeland Security Foundation. He is the author of five books.

Scaramucci served on President Donald J. Trump’s 16-person Presidential Transition Team Executive Committee, and in 2017 briefly served as Chief Strategy Officer of the Export-Import (EXIM) Bank and White House Communications Director.

Scaramucci, a native of Long Island, New York, holds a Bachelor of Arts degree in Economics from Tufts University and a Juris Doctor from Harvard Law School.

Antoni is a co-founder of Aleph Zero Foundation (Switzerland), an organization overseeing the development of the Aleph Zero blockchain, and a Managing Partner of Cardinal Cryptography (Poland), firm focused on core development of the Aleph Zero ecosystem.

Ari Juels is the Weill Family Foundation and Joan and Sanford I. Weill Professor in the Jacobs Technion-Cornell Institute at Cornell Tech and the Technion and a Computer Science faculty member at Cornell University. He is a Co-Director of the Initiative for CryptoCurrencies and Contracts (IC3). He is also Chief Scientist at Chainlink Labs. He is the author of crypto thriller novel The Oracle (Talos Press), which was released on 20 February 2024.

Austin Alexander is co-founder of LayerTwo Labs, a company focused on advancing the Bitcoin ecosystem through innovative solutions and specializing in the development of Drivechain, a specific type of blockchain sidechain designed to foster creativity and scalability within Bitcoin.

Austin Campbell is the founder and managing partner of Zero Knowledge Consulting and an adjunct professor at Columbia Business School. Previously, he has run portfolio management at Paxos for the stablecoins as well as being the chief risk officer of Paxos National Trust, has managed fixed income trading desks at JP Morgan and Citi, and has been a portfolio manager and structurer at Stone Ridge, the parent of NYDIG. He holds a BS in Mathematics from CSU Chico and a MBA from NYU Stern.

Ben Mills is the co-founder of Meso, a payments platform connecting banks and blockchains. Prior to Meso, Ben spent a decade building payments products as an early team member at Braintree (acquired by PayPal), as Head of Product at Venmo, and working on Solana Pay at Solana Labs.

Ben Rubin is the CEO and co-founder of Towns, a decentralized messaging platform dedicated to redefining online communication. Rubin has a rich background and a decade of experience in creating digital spaces that build trust and foster human connection. Prior to founding Here Not There Labs, the developer of Towns, Ben founded two venture-backed startups, Meerkat and Houseparty, both of which reimagined how people interact digitally. He scaled his communication products to hundreds of millions of users and raised over $70M in funding from Sequoia Capital and Greylock. After Houseparty was acquired by Epic Games in 2019, Ben went on to found Here Not There Labs, a venture-backed startup with over $30M in funding from a16z crypto and Benchmark Capital.

Ben Strack is a senior reporter covering macro and crypto-native funds, financial advisors, structured products, and the integration of digital assets and DeFi into traditional finance. Prior to joining Blockworks, he covered the asset management industry for Fund Intelligence and was a reporter and editor for various local newspapers on Long Island. He graduated from the University of Maryland with a degree in journalism.

Contact Ben via email at ben@blockworks.co

Bessie is a Brooklyn-based reporter covering DeFi and technology. Bessie worked as a tech journalist for The Org prior to joining Blockworks and was a management consultant for KPMG in another life. She is originally from Melbourne, Australia and holds an MA from New York University. She is also the mother of a bratty cat named Mochi. You can reach Bessie at bessie@blockworks.co

Bezalel Eithan Raviv, an ex-member of IDF Cyber Unit 8200, is a seasoned entrepreneur with deep expertise in technology and innovation. He now leads Lionsgate Network, a blockchain analysis firm specializing in professional money recovery services for digital asset investors in the +$2.5 trillion market. Prior to this role, Bezalel founded an investment banking firm supporting AI startups and developed Halleluiah, a pioneering web3 migration pattern for global music copyrights.

Billy Luedtke is the CEO and founder of Intuition, an information protocol powering a more trustful internet. Billy previously served as senior technology advisor at EY, a leading global professional services organization providing assurance, tax, audit, strategy and transactions. At EY, Billy created the company’s blockchain consulting practice, leading the technical development of blockchain-enabled distributed systems. Billy later became a senior token engineer at Consensys, a leading Ethereum developer (MetaMask, Infura, Linea). Billy continues to serve as an advisor at Consensys and MetaMask.

Billy Sebell is the Executive Director of the XDC Foundation and an early contributor to the XDC Network. Since early 2018, Billy has worked to develop the XDC community, focused on ecosystem and network growth and implementing use cases in trade finance. Billy previously spent more than 25 years in manufacturing and consumer products, dealing with the challenges businesses face in capital markets and international trade.

Blockworks Advisory leverages the curated and tested expertise developed at Blockworks Research to provide comprehensive consulting services rooted in theory and data. We utilize our distribution, conviction, and native understanding of crypto to accelerate our protocol clients' path to success.







Bob Bodily is the Provo, Utah-based CEO and Co-Founder of Bioniq, a BTC Ordinals wallet and marketplace. He has a bachelor’s degree in neuroscience and a Ph.D. in educational/instructional technology from Brigham Young University, with 25 articles and 1K citations. He is a data engineer with 100K+ lines of production Python code, and he has two previous software startups, including an EdTech SaaS that sold in 2021.


Senior Research Analyst at Blockworks Research

Bogdan is the Co-Founder and CTO of Tenderly, the full-stack infrastructure solutions provider powering Web3 developer teams with the essential tools and services throughout their development journeys. 

Prior to co-founding Tenderly, Bogdan worked as a software engineer for major software platforms such as MVP Workshop and Go Daddy where he was responsible for constructing and managing the development of distributed cloud systems before realizing the lack of infrastructural support for Web3 developers. With his vast experience in constructing, expanding, and overseeing extensive distributed cloud systems, he is well-versed in the intricacies of blockchain technologies and their practical applications. 

Brandon Truong is lead product contributor for ZetaChain. He previously co-founded social platform Yada (which was acquired in 2020) and spent time building products for BuzzFeed and Udacity. 


 Brian Pak is CEO &amp; Co-Founder of ChainLight, an award-winning blockchain security firm that specializes in smart contract audits and on-chain monitoring. He is also a co-founder of Theori, an established US-based offensive cybersecurity company, since 2016, which he still leads today, having now amassed trusted partners including Microsoft, Google and Samsung. Brian’s early career started when he co-founded and developed Kaprica Security, inventing and patenting the Skorpion Charger, an Android mobile charger that can detect malicious software with no user action required. He has worked on research and development projects with the Defense Advanced Research Projects Agency (DARPA) of the US. Brian is also a founder of the team PPP (Plaid Parliament of Pwning) which won DEF CON CTF, one of the most prestigious hacker competitions held in Las Vegas, in 2013, 2014, 2016, 2017, 2019, 2022 and 2023. Brian graduated with a Masters Degree in Software Security Research from Carnegie Mellon University.

Three years ago, his act of burning a physical Banksy ignited global discourse on NFTs and Web3, exposing the industry's flaws. Now, through XION, founder Burnt Banksy leads a mission to democratize Web3 to the masses, making ownership accessible to all by removing unnecessary barriers and complications through chain abstraction. To date: XION has raised over $36M in funding with the goal of "making crypto disappear." Ultimately, Burnt Banksy wants to provide the benefits of crypto to people without requiring them to know anything about crypto.

Byron Donalds grew up in Brooklyn, New York, and he is also the proud son of a hardworking and loving single mother. His mother dedicated her time instilling in him that greatness requires sacrifice, which drives him as a devoted family man and United States Congressman.  

Byron is a graduate of Florida State University and received a Bachelor of Arts degree in finance and marketing. Byron's career led him to Southwest Florida, where he worked in the banking, finance, and insurance industries. Elected to the Florida House of Representatives in 2016, Byron represented Hendry County and east Collier County in the State Capitol. During his tenure in the Florida House, Byron served as the PreK-12 Quality Subcommittee Chair during the 2018-2019 Legislative Session and served as the Insurance &amp; Banking Subcommittee's Chairman 2019-2020 Legislative Session. While serving in the Florida House, primarily focused on elder affairs, criminal justice reform, and ensuring that each child has access to a world-class education. 

Byron is committed to serving and giving back to the community that gave him so much. He has served Southwest Florida in many ways, including previously serving on the Board of Trustees for Florida Southwestern State College after being appointed by then-Governor Rick Scott. Byron continues to volunteer in his church as a youth leader and a mentor. He also enjoys volunteering as a coach in youth football and basketball leagues.

Congressman Byron Donalds lives in Naples, Florida, with his wife, Erika, and their three sons: Damon, Darin, and Mason. Byron has spent his entire adult life serving others, whether it be through volunteering, business, or leadership. He is committed to representing Florida's 19th Congressional District's conservative values in Washington DC to ensure a stronger Florida and a stronger nation.

Byron Gilliam writes The Breakdown newsletter, in which he tries to explain crypto markets to traditional investors and traditional markets to crypto investors (while trying to explain both to himself). Before joining Blockworks, Byron spent 25 years trading international equities for banks and brokers in Frankfurt, London, Paris and New York. He holds a bachelor's degree in History from Binghamton University. Contact Byron at byron@blockworks.co.

Cameron B. Pick is a partner and patent attorney at the Chicago-based intellectual property boutique law firm Marshall, Gerstein &amp; Borun. He prosecutes patents for emerging technologies, including blockchain and crypto, among other innovative areas. He may be reached at cpick@marshallip.com. 

Candace Kelly is the Chief Legal and Policy Officer for the Stellar Development Foundation (SDF), a non-profit organization that supports the development and growth of Stellar, an open-source network that connects the world's financial infrastructure. She leads the team responsible for SDF’s legal affairs and the policy team that is focused on bridging the gap between the public and private sectors. Previously, Candace worked for Uber Technologies, Inc., where she helped navigate the company’s response to regulatory investigations and advised on safety, security, privacy, consumer protection, and law enforcement response. Prior to that she served for 17 years at the United States Department of Justice.

Carlos is a Research Analyst based in Guatemala covering Solana and DeFi applications. Carlos previously held a research role at 21Shares. Contact Carlos at carlos.campos@blockworks.co.

Carlos Mercado is a data scientist at Flipside Crypto, specializing in the convergence of data science, cryptocurrency, economics, and open-source research. His expertise spans the Ethereum ecosystem and over 20 other blockchains, where he leverages SQL, R, Python, and Solidity to develop innovative data models and analytics tools. Carlos's notable contributions include the creation of the True Freeze DeFi primitive and leading the production of the 2023 Crypto Users Report, generating significant industry impact. Prior to Flipside, he applied his skills in AI strategy and product development at Guidehouse and offered data science consulting services.


Casey Wagner is a senior reporter on the scoops and investigations team, based in New York. Casey covers crypto regulation, markets and central banks. Prior to joining Blockworks, she reported on macroeconomics at Bloomberg News. She graduated from the University of Virginia with a degree in Media Studies. Contact Casey or send her tips via email at casey@blockworks.co


Charles Hoskinson is a Colorado-based technology entrepreneur and mathematician. He attended Metropolitan State University of Denver and University of Colorado Boulder to study analytic number theory before moving into cryptography through industry exposure.

His professional experience includes founding three cryptocurrency-related start-ups – Invictus Innovations, Ethereum and IOHK – and he has held a variety of posts in both the public and private sectors. He was the founding chairman of the Bitcoin Foundation’s education committee and established the Cryptocurrency Research Group in 2013.

His current projects focus on educating people about cryptocurrency, being an evangelist for decentralization and making cryptographic tools easier to use for the mainstream. This includes leading the research, design and development of Cardano, a third-generation cryptocurrency that launched in September 2017.

Chris Barrett serves as the Director of Communications at Chainlink Labs and has been involved with Chainlink since 2017. Chainlink is the only on-chain data and cross-chain platform that enables financial institutions to develop customized, flexible, compliant, and future-proof blockchain applications and tokenized assets. Before this role, he founded a leading PR agency for technology startups, where he worked with over 1,000 innovative companies. Chris is also an avid runner, having maintained a streak of running for over five consecutive years. 

Chris Brooks founded CryptoAssetRecovery.com in 2017 to help digital asset owners recover lost assets. Chris was a programmer at Fidelity Investments, VP of Technology at venture-backed Carescout (which sold to GenWorth, a spinoff of General Electric) and has founded and sold three bootstrapped internet companies. 

Chris Swenor is a seasoned entrepreneur and blockchain pioneer with a 20-year career that kicked off as a self-taught programmer at age 13. He swiftly moved from corporate roles into startups, leading several to successful acquisitions. Chris started venturing into blockchain and cryptocurrency in 2013, founding Reach in 2019, a platform that has since attracted over $13M in funding and onboarded more than 8,000 developers.

In recent years, Chris founded Humble, a decentralized exchange on Algorand, and Alloy, a blockchain gaming platform acquired in 2023. He is currently working on Voi Network, a layer 1 blockchain empowering its community with user-centric governance and economics. 

Christopher Perkins is President of CoinFund, a web3 focused Registered Investment Advisor.  He is also a member of the CFTC’s Global Markets Advisory Committee and its Digital Asset Markets Subcommittee.

Ciarán Murray is a seasoned veteran of the blockchain industry. Aside from advising on numerous blockchain projects over the years, and releasing a synthetics assets proof-of-concept last year, Ciarán previously worked in the media industry for British Sky Broadcasting. He is not only well placed to understand the issues facing the media industry but also how to apply blockchain and other distributed technologies to remedy them.

Da Hongfei is the founder of Neo, an open-source, community-driven blockchain platform designed to welcome developers into the Smart Economy. Hongfei operates as CEO of Neo Global Development (NGD), the executive arm of the Neo Foundation that is committed to developing the Neo protocol and its supporting ecosystem. He is seen as a luminary in the Web3 space and as a blockchain pioneer in Asia. Hongfei received his education at the South China University of Technology, receiving degrees in technology and English.

Damian Alvarez is a communications professional helping Web3 clients get their stories heard. He is currently the Head of Communications at Aori, an omni-chain logic layer that leverages off-chain data storage to enable high-frequency on-chain trading. He has worked at agencies such as Edelman and YAP Global to assist a variety of emerging and established clients to engage in industry-wide narratives surrounding technology. He may be contacted at damian@aori.io.

Dan Keeler is Editor-in-Chief at Blockworks. Prior to joining Blockworks, he was Frontier Markets Editor at the Wall Street Journal where he managed the Journal’s coverage of smaller emerging markets as well as created a number of high-profile events and a highly regarded newsletter. Before joining the WSJ, he was the Editor of Global Finance magazine. He is also the founder of New York’s FM Network, a group that hosts gatherings of finance professionals focused on smaller emerging markets.

Contact Dan via email at dan@blockworks.co

Dan Smith is a Senior Research Analyst based in the United States covering Curve, Convex, Aave, and Compound. Daniel previously worked in tax and valuation at EY and Bennett Thrasher. He is focused on using data visualization tools to better understand the health and profitability of various DeFi protocols. Contact Dan at daniel@blockworks.co

Daniel Batten is a ClimateTech investor, Bitcoin environmental impact analyst, CEO advisor and author. He is most widely known for his data-driven approach to Bitcoin mining research.


Daniel Cawrey has been involved full-time in the crypto space since 2013, including as an editor at CoinDesk. He is author of 2020’s “Mastering Blockchain” and 2023’s “Understanding Crypto” books, both available on Amazon.

Daranee Ganesh is Blockworks' editorial operations manager based in New Mexico. Prior to Blockworks, Daranee worked on several legal and non-profit projects aimed at integrating decentralized solutions in the social justice framework, specifically within immigration and environmental law. Contact Daranee at daranee@blockworks.co.

Darren Kleine is an Alberta-based reporter covering podcast content at Blockworks. Previously reporting for Cointelegraph, he wrote feature content and a weekly series focused on the personal stories of influential figures in the Web3 space. He has been an active participant in the NFT art scene since 2020, creating works on curated platforms including SuperRare and KnownOrigin and hosting an NFT art-focused podcast called NFP with DKleine. Contact Darren Kleine at darren@blockworks.co.

David is an Editor based in the Netherlands focused on data-driven journalism. Previously, he wrote for TheNextWeb's crypto vertical before launching Protos in 2021. He's a reformed hardline Bitcoiner passionate about permissionless and decentralized networks. Contact David at david@blockworks.co

David Schwed serves as the Chief Operating Officer at Halborn, an elite blockchain security firm. Prior to Halborn, he was the Global Head of Digital Assets Technology at BNY Mellon, the world's biggest custodian bank, where he integrated the IT strategy for the company's digital asset services. David was also CISO for Galaxy Digital, where he led the development of information security and IT infrastructure, and served as a risk committee advisor, evaluating emerging threats in financial services. He also founded the Cybersecurity Master's Program at Yeshiva University’s Katz School of Science and Health, sharing his expertise as a practitioner-in-residence.


Delphine Forma is the policy lead for Europe &amp; UK at Solidus Labs, a leading market compliance and market integrity firm in digital assets. With a career spanning roles in major banks and blockchain ventures, she brings extensive experience in compliance and legal across sectors. She is the founder of the crypto compliance and legal TG group with 1,400 members. A Sciences Po Lyon alumna, Delphine also holds advanced degrees in European Criminal Business Law and anti-money laundering.

Denelle Dixon is the CEO and Executive Director of the Stellar Development Foundation (SDF), a non-profit organization focused on working with and supporting changemakers to create equitable access to the global financial system through blockchain technology. She leads the teams that help maintain Stellar's codebase, support the communities around Stellar, and advocate on behalf of the network with international stakeholders. Before joining Stellar, Dixon served as COO of Mozilla, one of the most successful mission-driven open-source organizations.. During her tenure at Mozilla, she led the organization’s business, revenue and policy teams including the ongoing fight for net neutrality and the global effort to ensure that people can control their personal data.

Dermot O’Riordan serves as a Director at the POKT Network Foundation where he helps steer product development and strategy. From Ireland to Silicon Valley, Dermot’s career ranged from advising tech companies and VC firms to leading marquee industry events. His interest in Web3 was sparked in 2016 with the rise of DAOs, leading him to dive deeper into the blockchain space, where he served as an advisor to projects like Radix and Dusk, and later, spearheading growth at Eden Block.

Donovan is a reporter based in Singapore and the author of the Lightspeed newsletter. He previously worked in editorial at Bankless and is a huge fan of spaghetti Westerns and the Wu-Tang Clan. Contact Donovan at donovan@blockworks.co.

Elena leads product marketing at Hiro Systems, a developer tooling company bringing smart contracts to Bitcoin. She has spent the past six years working in blockchain and cryptocurrency startups. Elena co-founded Blockchain Latinx, an online community that explores what blockchain means for Latinos and for Latin America. She has an MBA from NYU Stern School of Business.

Eli Cohen is a corporate lawyer with 25+ years of experience in commercial transactions, financial services and regulatory matters and has worked in Asia, Europe and the United States. He is the General Counsel for Centrifuge, a real-world asset (RWA) tokenization and securitization platform and Chief Compliance Officer for Anemoy Capital SPC Limited a British Virgin Islands fund company issuer of the tokenized Anemoy Liquid Treasury Fund 1. He is a graduate of the Georgetown University Law Center, has a Masters in International Relations from the University of Pennsylvania and a Bachelor of Arts from the University of Michigan, Ann Arbor.

Eli Zeger writes about democracy and its relationship with technology. His work has been published in the Boston Review, Noema Magazine, Strange Matters, Zora Zine, among numerous other publications.

Elliot is the Head of Climate Strategy at Sustainable Bitcoin Protocol, where he is helping unlock Bitcoin's clean energy potential by bridging sustainable miners and climate-conscious investors. In his role at Sustainable Bitcoin Protocol, Elliot educates policymakers and NGOs on Bitcoin’s relationship with the energy system. He is a climatetech operator focused on alleviating energy poverty, bridging the digital divide, and promoting financial inclusion through technologies such as Bitcoin. Elliot was previously a Schwarzman Scholar and has served in the military, US Department of Energy, Clinton Foundation, and more. 

Evan Thomas is General Counsel for Alluvial, a software development company supporting the Liquid Collective liquid staking protocol. He was previously at Wealthsimple, Canada’s largest consumer fintech, where he was Head of Legal for Wealthsimple’s crypto trading platform. While at Wealthsimple, Evan helped launch Canada’s first regulated staking product. Before Wealthsimple, Evan was a litigator at Osler, Hoskin &amp; Harcourt LLP for nearly 15 years. Among other notable cases, Evan was hearing counsel to 3iQ Corp. in its appeal securing regulatory approval for Canada’s first publicly traded bitcoin fund in 2019.

Felix Jauvin is the host of the On the Margin podcast. Based in British Columbia, Canada, he lives and breathes where crypto and macroeconomics intersect.

Felix Xu, crypto geek, early adopter, and NFT collector. Felix graduated from NYU Stern and founded two crypto projects, ARPA and Bella Protocol, among the global top 500 by market cap. Felix previously worked at Fosun Investment, Sackler family office, and Vertical Research in New York and Beijing. Felix loves sailing, kitesurfing and was featured in the Wall Street Journal and The New York Times for his NFT collection.

Frank has a diverse career that spans creative writing, day trading, and a 12-year stint in financial planning. After experimenting with blockchain and being an early adapter to the Solana ecosystem, Mathis co-founded GenesysGo in 2021 to create a faster, more reliable and more secure decentralized data storage protocol. Their flagship product, shdwDrive is built on Solana and aims to bridge the gap between blockchain technology and traditional business infrastructure. GenesysGo is powered by a new type of decentralized data storage consensus mechanism, built from the ground up by the GenesysGo team.

Fraser is co-founder &amp; CTO of Cubist and an Assistant Professor at Carnegie Mellon University. She is an expert in software correctness: her research focuses on systems security, automated bug finding, and formal verification, from verifying (parts of) production systems like browser JITs, to finding exploitable bugs in real codebases. Her tools have found many zero-day bountied bugs and CVEs in the Chrome and Firefox browsers and multiple operating systems. Fraser received her BA in English and her MS and PhD in Computer Science from Stanford.


Garrett Harper is the producer for the Empire podcast. Garrett worked in private equity and product management before jumping into crypto full-time in 2021. His favorite thing about crypto? It conflates art, gaming, finance, software, and psychology into one hyper-growth industry.

Gijs op de Weegh is the CEO and Founder of StablR, where he leads the strategy, business operations, and investor relations. He founded StablR out of his passion for implementing blockchain technology in the financial industry and exploring its possibilities. Before founding StablR, Gijs co-founded Payvision, an e-commerce payment service provider, in 2002. Under his leadership, Payvision grew to over 300 employees and achieved a turnover exceeding €4 billion.

Gísli Kristjánsson is co-founder and CTO of Monerium, the first company to issue fiat onchain. He fell in love with programming at the age of 13. After working as a bonds broker, Gísli saw the inefficiencies of securities settlements firsthand and recognized the potential of Bitcoin. Prior to co-founding Monerium in 2015, Gísli founded and sold a platform to give users access to geo-blocked content. Fun fact: Gísli’s Ethereum address is among the 1% of the oldest addresses.

Haden Patrick is Director of Business Operations of Cordial Systems, a provider of institutional-grade self custody software using a Zero Trust security model.  Haden has executive experience in team leadership, engineering and education originating from his 24 year career as a Naval Officer. After co-founding SoloKeys, the first open-source security key company, he went on to manage projects connecting web3 to traditional finance at a cryptocurrency trading firm before joining Cordial Systems.

Hadley Stern, Advisor to MPCH, has extensive experience in leadership roles within TradFi and digital asset industries. As Global Head of Custody at the Bank of New York Mellon (BNYM) from 2021 to 2023, Hadley spearheaded the creation of the industry’s first bank-grade crypto-custody platform. Hadley also previously served as Chief Operating Officer at Bloq where he was responsible for the P&amp;L, product roadmap, and general operations. Hadley was Founding President of Fidelity Digital Asset Services where he led Fidelity's Blockchain Incubator and Digital Currency group and was pivotal in early product launches, including activating Bitcoin donations to Fidelity Charitable and building and running Fidelity first Bitcoin mining Operation.



Hannah Finnerty is Blockworks' head of media ops and is based in the US. Hannah previously worked in podcast production for The National in Abu Dhabi. She graduated from Bowling Green State University with a degree in multiplatform journalism and Middle Eastern politics. Contact Hannah at hannah@blockworks.co.

Hatu Sheikh is the co-founder and CMO of DAO Maker, the largest on-chain funding platform with 1.5M+ users. The platform's contracts have distributed over $600M, with a cumulative return of around 10x. Hatu has a strong background in marketing and strategy and has played a pivotal role in driving the success of various blockchain-based projects and tokens, crafting effective marketing strategies, and forging powerful synergies within the industry.

Harry Duckworth, a law graduate, embarked on a unique journey that led him to become the youngest trader at global commodities giant Trafigura. He then went on to set up desks for several hedge funds worldwide, accumulating over a decade of experience in trading, hedge funds, and emergent technologies. 

Through his work, he became fascinated by the revolutionary power of blockchain tech soon after the inception of Bitcoin. Years later he founded AgriDex International, to provide digital marketplaces and supply chain information for all participants in the global food chain. 

Hind Kurhan is a Co-Founder of Thesis Defense, a decentralized technology security auditing company whose mission is the facilitation of broad adoption of decentralized technology by improving security and audit consistency throughout the blockchain sphere.


Ian Rogers is the Chief Experience Officer at Ledger, leading the consumer-facing business delivering the world’s #1 way to buy and secure cryptocurrency.  Prior, Ian was the Chief Digital Officer at LVMH for five transformative years, working with a portfolio of nearly one hundred brands across luxury including Louis Vuitton, Dior, Sephora, and Hennessy.  Ian also sits on the boards of Dr Marten’s and Lyst.

Ian spent twenty years bringing digital music to the mainstream, first with Winamp then Yahoo!, Beats, and Apple.  Ian contributed to the 2015 launch of Apple Music including Beats 1, their digital streaming channel. Ian graduated with a Bachelor of Arts in Computer Science (with honors, Phi Beta Kappa) from Indiana University in 1994.  Ian built some of the earliest music-related Web sites in the early 90s and has been working with Beastie Boys since 1993.

Igor Telyatnikov is the CEO and co-founder of the blockchain and financial services technology company AlphaPoint. Headquartered in New York, AlphaPoint supports over 10 million users, powering marketplaces and wallets in over 35 countries. With 15 years of experience in tech and innovation, Igor has empowered over 150 clients, including CME Group and Scotiabank. In 2022, he partnered with the Government of El Salvador to upgrade its Chivo Wallet into a national Bitcoin and dollar wallet, creating the first nationalized crypto ecosystem. Igor previously held roles at Cvetlo, LiftDNA, and Ingersoll Rand/Allegion, and has a Bachelor’s degree in Business Marketing from Penn State University. He is a frequent speaker at industry events.

Ishan is a University of Texas McCombs School of Business graduate with a BBA in Finance &amp; Marketing. He founded and managed a Private Equity Fund that reached an eight-figure Assets Under Management (AUM) and has also gained experience with many top 200 projects of crypto market cap. In 2022, he helped found SCRIB3, a Web3 Marketing and PR venture. He was notably among the first to raise an alert about potential deceptive and unethical business practices by FTX. Ishan contributes as a DeFi analyst, an active angel investor, and an advisor in projects like Polygon Technologies.

Jack Kubinec is a New York-based reporter and podcast host. He focuses on scoops and investigations at the intersection of money and power in crypto. In 2024, he was awarded Best Impact by a New Journalist by the Association of Cryptocurrency Journalists and Researchers. Jack can be reached for tips (not pitches) at jackkubinec.23 on Signal and jackkubinec@proton.me.













Jag is the CEO and co-founder of re.al, an L2 build to facilitate deep onchain liquidity for tokenized RWAs. re.al seeks to redefine how RWAs are integrated into DeFi, using yield-generating real-world assets as novel building blocks in existing DeFi primitives.

James Cirrone is a breaking news reporter based in New York. Prior to joining Blockworks, James was a reporter and newsletter writer at Bloomberg News. He graduated from the University of Maryland with a degree in journalism. He also played trumpet in the university’s marching band. Contact James via email at james.cirrone@blockworks.co.

Jason Allegrante is the Chief Legal and Compliance Officer at Fireblocks. He is an experienced Counsel with a demonstrated history of working in the financial services industry with both large, traditional financial institutions as well as early stage fintech startups.



Jason Dehni is the co-founder and group CEO of Credbull, a leading DeFi platform offering structured high fixed yield solutions in SME private credit. Jason has over 25 years of senior management experience in asset management, private banking, SME lending, insurance, risk management, and crypto across North America, Latin America, Asia, and the Middle East. His background includes serving as group COO &amp; MENA CEO of a publicly traded crypto asset management company, co-founder &amp; CEO of an SME trade finance platform, and senior leadership roles in asset management, wealth management,  insurance, and management consulting. Jason holds an MBA from Harvard Business School and an Honours BA in Economics &amp; Political Science from the University of Toronto. 

Jean-Marie Mognetti is Chief Executive Officer of CoinShares, a publicly listed investment firm that manages over five billion in digital assets on behalf of a global investor base, and an experienced commodities trader with a background in quantitative strategies. A veteran of the Global Advisors group of companies since 2011, Jean-Marie has served in various leadership roles throughout his tenure, most recently as CEO of Global Advisors (Jersey) Limited and director of GABI, the world’s first regulated Bitcoin fund. In addition to his management responsibilities as CEO, Jean-Marie oversees the firm’s proprietary trading arm, capital markets portfolio, and risk management practices – areas in which he has developed unique expertise over his career. Prior to joining Global Advisors, Jean-Marie was a quantitative strategist with Hermes Commodities Fund Managers, and an Energy Trader Assistant at Lehman Brothers. He holds Master of Science degrees in Mathematical Trading and Finance from Sir John Cass Business School in London, and Bank-Finance-Insurance from Université Paris Dauphine in Paris, in addition to a Bachelor of Science degree in Economics and Finance from Université Paris Dauphine.

Jeff is an editor at Blockworks, based in the United States. He has been a part of the blockchain space for nearly 15 years. His areas of focus include empowering artists and creators through technology, using proof-of-participation methods to reward self-improvement, reducing the effectiveness of Sybil attacks, seeking transparent equity for disadvantaged communities and exploring fairer models of world governance. Contact Jeff at Jeffrey@blockworks.co.


Jesper Johansen is the founder and CEO of NORTHSTAKE, a regulated custodial staking company specialized in building regulatory compliant crypto staking products for institutional investors and financial institutions. The team holds backgrounds from financial institutions, pension funds, large investment companies to consulting, technology and audit firms, such as Accenture, Deloitte, PwC as well as blockchain and crypto projects e.g. DAI Foundation (MakerDao), Ethereum and L1/L2s. 

Prior to NORTHSTAKE, Jesper held leadership positions with Accenture Strategy and Deloitte Consulting advising clients in heavily regulated industries to implement new technologies and drive business transformation. He holds a MBA from Copenhagen Business School and a B.Sc. in International Business. 

Jess is the CEO of Reown, the onchain UX platform and builders of the WalletConnect Network. Previously she led Crypto at Checkout.com, a global fintech company. Jess was also a member of the Bank of England CBDC Engagement Forum and a member of UK Finance New Digital Money Steering Group, Innovate Finance Fintech Strategy Group and Department for International Trade Fintech Group.

Jess Sun is an independent writer and content strategist. She loves bringing good ideas to light, helping the people behind them shine, and bridging gaps in understanding. Follow her on Twitter or LinkedIn. Go to her website to learn about working with her.

Jesse Knutson is the head of operations at Bitfinex Securities, where he is responsible for expanding the platform’s issuance pipeline, overseeing distribution and building its user base while ensuring compliance with regulatory standards. Prior to this role, Knutson served as vice president of financial products at Blockstream, and held roles at prominent investment banks including Macquarie Group and Barclays.

Jim Myers is an engineer, early-stage investor, and the CTO &amp; Co-Founder of Flipside Crypto, a leading blockchain data analytics and business intelligence platform. Prior to co-founding Flipside, Jim developed the core technology that took products from 0 to 1 at companies such as Mylestone, Pluralsight, and Smarterer. Jim’s journey into the crypto industry began in 2015, eventually co-founding Flipside Crypto in 2017 to help empower crypto communities to create and share data-driven insights on the projects they care most about. Jim's passion for building extends to the broader startup community via his developer event series, Stack Dive, and as an angel investor to several local Boston-area startups, including AdHawk and LinkSquares. In a previous life, Jim developed advanced models to quantify risk and abnormal returns in the market for Financial Transmission Rights, a type of energy derivative.

Byron Gilliam

This is a segment from The Breakdown newsletter. To read full editions, <a href="https://blockworks.co/brand/the-breakdown" target="_blank" rel="noreferrer noopener">subscribe</a>.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
“Conventional measures of economic growth omit some of the largest gains in living standards and therefore underestimate economic progress.”



— William Nordhaus
</blockquote>



In 1906, Upton Sinclair went undercover in Chicago&#8217;s meatpacking plants to expose the brutal realities of poverty that he depicted in The Jungle: families living in overcrowded squalor, children working in hazardous, dehumanizing factories, workers maimed and discarded by industrial capitalism with no safety net whatsoever.



In 2025, we have a new kind of data-driven muckraker: Michael W. Green, an asset manager, whose brave discovery that American families making less than $140,000 are living in poverty has gone viral.&nbsp;



One can only marvel at how these families survive on such meager six-digit incomes! By Green’s logic, two-thirds of Americans should be eligible for food stamps.



Unlike Sinclair, however, Green doesn&#8217;t appear to have spent any time with the families he&#8217;s championing. If he had, he might have sensed that his spreadsheet was leading him astray.



Economists who are more adept at interpreting data are seemingly unanimous in their assessment of Green’s <a href="https://www.yesigiveafig.com/p/part-1-my-life-is-a-lie">viral thesis</a>.



Scott Winship <a href="https://scottwinship.substack.com/p/how-not-to-redefine-poverty">calls</a> it “the worst poverty analysis I have ever seen.”&nbsp;



Tyler Cowen <a href="https://www.thefp.com/p/the-myth-of-the-140000-poverty-line">finds</a> that Green’s study is “all wrong. The underlying concepts are wrong, the details are wrong, and the use of evidence is misguided.”



Jeremy Horpedahl <a href="https://economistwritingeveryday.com/2025/11/26/the-poverty-line-is-not-140000/">says</a> “it’s ridiculous to use $140,000 as a poverty measure.”&nbsp;



Noah Smith <a href="https://www.noahpinion.blog/p/the-140000-poverty-line-is-very-silly">says</a> Green “gets his own numbers completely wrong” and that his conclusions are “very silly.”



Green responds to some of these critiques <a href="https://substack.com/home/post/p-179828750">here</a>, but you probably don’t need to be a credentialed economist to sense the critics are right — because surely no one making $139,000 a year is going hungry?



Green’s argumentation is admittedly more nuanced than that.



He cites, for example, MIT’s “cost of thriving” index which estimates that it took 30 weeks of the median male’s earnings to live a good life in 1985 vs. 63 weeks now.&nbsp;



I’m not an economist, and I would not have even made the waitlist at MIT. But, having been alive in 1985, I can authoritatively say that things are now both easier and better than they were back then — economically, at least.



(Television shows, movies, music, fashion and celebrities were all far better in the 1980s, of course. Not to mention the blissful lack of both cellphones and adult supervision.)



But cars, appliances, power tools, video games, beer? Virtually anything you can buy to make your life better is better today than it was then.&nbsp;



In nearly all cases it’s cheaper too, when adjusted for quality.



Even housing.



“Green notes that housing costs have risen,” Cowen writes, “but Americans today have more living space on average than ever before, and live alongside fewer people.”



And healthcare!&nbsp;



Cowen explains that “the overall trend in healthcare has been deflationary, rather than inflationary — or, in economics speak, that the cost of buying an extra expected year of life has been going down rather than up.”



More intuitively, Cowen says simply, “I would rather have current healthcare at current prices than 1972 healthcare at 1972 prices.”&nbsp;



Me, too: I’d rather have current anything at current prices than 1985 anything at 1985 prices.



This intuition — that the statistics Green is looking at miss massive improvements in what our dollars actually buy us — is more than just anti-nostalgia, if that’s a word. (Presentism? Currentism?)&nbsp;



William Nordhaus famously demonstrated this systematically by measuring the cost of lighting in lumens. By tracking lumen-hour costs across technologies like candles, kerosene and electric bulbs, Nordhaus showed how ignoring quality change (more light per unit input, in the case of lighting) massively underestimates historical assessments of economic growth.



The cost of lighting a room for three hours — which took about three hours of work to afford in 1800 — requires just a fraction of a second of labor now: a roughly 43,000-fold improvement that official statistics missed almost entirely.



With this, Nordhaus demonstrated the larger point that because technological change is not fully reflected in GDP statistics, we tend to underappreciate how much our standard of living has improved.



The flip side is that failing to account for these changes can lead to some absurd conclusions about the cost of living, as expressed in this classic <a href="https://x.com/dril/status/384408932061417472?s=20">tweet</a>:



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="816" height="297" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-48.png" alt="" class="wp-image-110300" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-48.png?w=816 816w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-48.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-48.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-48.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-48.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-48.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-48.png?w=80 80w" sizes="auto, (max-width: 816px) 100vw, 816px" /></figure>



The joke is that someone stuck buying 1800s lighting technology at 1800s costs would indeed be impoverished because they wouldn’t have anything left over to spend on modern healthcare, housing or smartphones.



Green seems to make the same statistical mistake: He looks at modern families spending on vastly superior goods and services without accounting for the vastly superior value they’re getting.



“There is a major conceptual error in Green’s focus on high prices,” Cowen concludes. “Prices are high in large part because demand is high, which can only happen because so many more Americans can afford to buy things.”



$140,000 a year buys a lot of things.&nbsp;



Let’s check the charts.&nbsp;



Moving on up:



<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="842" height="574" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-56.png" alt="" class="wp-image-110308" style="width:660px;height:auto" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-56.png?w=842 842w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-56.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-56.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-56.png?w=377 377w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-56.png?w=383 383w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-56.png?w=321 321w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-56.png?w=80 80w" sizes="auto, (max-width: 842px) 100vw, 842px" /></figure>



The US middle class has been shrinking, but only because the upper class has been expanding. In 1967, 5.2% of US families earned over $150,000 (inflation adjusted) vs. nearly 34% now.



People have been moving up into the middle class, too:



<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="802" height="570" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-52.png" alt="" class="wp-image-110304" style="width:644px;height:auto" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-52.png?w=802 802w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-52.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-52.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-52.png?w=362 362w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-52.png?w=367 367w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-52.png?w=308 308w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-52.png?w=80 80w" sizes="auto, (max-width: 802px) 100vw, 802px" /></figure>



The percentage of Americans with income more than 200% of the federal poverty line (c. $60,000 for a family of four) has risen by 8.5 percentage points since 1975.&nbsp;&nbsp;



Poverty, however measured, is trending down:



<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="965" height="439" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-55.png" alt="" class="wp-image-110309" style="width:706px;height:auto" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-55.png?w=965 965w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-55.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-55.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-55.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-55.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-55.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-55.png?w=80 80w" sizes="auto, (max-width: 965px) 100vw, 965px" /></figure>



This chart from the <a href="https://www.economicstrategygroup.org/publication/kearney-sullivan-poverty/">Economic Strategy Group</a> shows that poverty has fallen by roughly half according to income-based measures and by more than 80% using consumption-based measures — in both cases, more than government statistics indicate.



Consumption is up:



<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="1203" height="737" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-57.png?w=1024&amp;h=1024" alt="" class="wp-image-110307" style="width:688px;height:auto" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-57.png?w=1203 1203w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-57.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-57.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-57.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-57.png?w=419 419w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-57.png?w=426 426w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-57.png?w=357 357w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-57.png?w=80 80w" sizes="auto, (max-width: 1203px) 100vw, 1203px" /></figure>



An <a href="https://sites.nd.edu/james-sullivan/files/2023/10/2022-Consumption-Poverty-Report_10_20_2023.pdf">academic study</a> of &#8220;consumption poverty&#8221; (in green) and &#8220;after-tax poverty&#8221; (in red) shows that the official, CPI-based measure of poverty fails to capture decades of improvement.



More food:



<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="1254" height="743" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-50.png?w=1024&amp;h=1024" alt="" class="wp-image-110302" style="width:746px;height:auto" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-50.png?w=1254 1254w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-50.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-50.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-50.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-50.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-50.png?w=441 441w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-50.png?w=370 370w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-50.png?w=80 80w" sizes="auto, (max-width: 1254px) 100vw, 1254px" /></figure>



Americans consume about 3,800 calories a day — 15% more than we did in 1985 and roughly 50% more than we’re supposed to.



More healthcare:



<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="1033" height="619" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-51.png?w=1024&amp;h=1024" alt="" class="wp-image-110303" style="width:701px;height:auto" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-51.png?w=1033 1033w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-51.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-51.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-51.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-51.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-51.png?w=436 436w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-51.png?w=365 365w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-51.png?w=80 80w" sizes="auto, (max-width: 1033px) 100vw, 1033px" /></figure>



8.2% of Americans were uninsured in 2024, down from 16% in 2010.



Candles were once a luxury good:



<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="789" height="752" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-54.png" alt="" class="wp-image-110306" style="width:618px;height:auto" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-54.png?w=789 789w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-54.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-54.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-54.png?w=270 270w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-54.png?w=274 274w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-54.png?w=230 230w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-54.png?w=80 80w" sizes="auto, (max-width: 789px) 100vw, 789px" /></figure>



This is a reminder that as recently as 1800, candles were so expensive that it was economic for people to venture out into the oceans and risk their lives hunting whales.&nbsp;



Illuminating:



<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="1001" height="609" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-49.png" alt="" class="wp-image-110301" style="width:729px;height:auto" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-49.png?w=1001 1001w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-49.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-49.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-49.png?w=422 422w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-49.png?w=429 429w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-49.png?w=360 360w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-49.png?w=80 80w" sizes="auto, (max-width: 1001px) 100vw, 1001px" /></figure>



A million lumen-hours is roughly the amount of light you’d get from an ordinary household light bulb running continuously for about two months. In the year 1300, that would have cost the equivalent of $52,000. Yikes.



In Nordhaus terms:



<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="960" height="592" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-53.png" alt="" class="wp-image-110305" style="width:664px;height:auto" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-53.png?w=960 960w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-53.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-53.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-53.png?w=417 417w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-53.png?w=423 423w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-53.png?w=355 355w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-53.png?w=80 80w" sizes="auto, (max-width: 960px) 100vw, 960px" /></figure>



William Nordhaus made economic progress more tangible by calculating the “time-price” of light. In 1830, you had to work three hours to afford a single hour of candlelight. Today, you earn that same hour of light in one-thirteenth of a second.



Have a great weekend, upper-class readers.



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Economy

Illuminating progress: Is a $140K income ‘poor’?

Carlos

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Crypto markets are ending the week on a muted note, with BTC giving back part of its rebound and equities largely flat ahead of next week’s FOMC meeting. Against this backdrop, Solana ecosystem tokens showed remarkable relative strength.



BTC retraced part of its recent rebound on Thursday, closing down -1.38%, though it remains up nearly 10% from Monday’s $84,000 intraday low. As seen below, the S&amp;P 500 and gold were flat on the day, while the Nasdaq slipped -0.14%.&nbsp;



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="898" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-45.png?w=1024&amp;h=1024" alt="" class="wp-image-110282" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-45.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-45.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-45.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-45.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-45.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-45.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-45.png?w=465 465w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-45.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-45.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



On the macro front, Kevin Hassett now appears to be the frontrunner for Fed Chair, with Polymarket pricing his nomination at roughly 75%. Currently the Director of the National Economic Council and a close Trump ally, Hassett’s appointment would mark a clear shift toward tighter alignment between Fed policy and the administration’s economic agenda. As for the current Fed, a December rate cut is almost certain just five days ahead of the final FOMC meeting of the year, with the CME FedWatch tool assigning an 87% probability to a 25 bps cut.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-47.png?w=1024&amp;h=1024" alt="" class="wp-image-110284" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-47.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-47.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-47.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-47.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-47.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-47.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-47.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-47.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-47.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



Regarding cross-sector performance, the only three crypto-related indices that were positive on the day were Miners (+6.1%), Solana Eco (+1.8%), and Crypto Equities (+0.9%). Even with Thursday’s bounce, the Miners index is still down 28% over the past 30 days, making it the worst-performing index after Memecoins (-33%).&nbsp;



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="902" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-44.png?w=1024&amp;h=1024" alt="" class="wp-image-110281" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-44.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-44.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-44.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-44.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-44.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-44.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-44.png?w=463 463w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-44.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-44.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



Looking at Solana ecosystem tokens, amongst the top 10 components on our index, CLOUD (Sanctum) was the best-performer yesterday (+13%). The move comes after Forward Industries launched its own LST (fwdSOL) powered by Sanctum earlier this week. Back in May, DeFi Dev Corp. launched dfdvSOL, also using Sanctum’s infrastructure.



Instead of natively staking SOL and losing liquidity, an LST enables Solana DATCOs to earn staking yield while distributing their liquidity into other DeFi applications to expand yield earnings. Working with Sanctum, DATCOs can easily design and deploy their own LSTs to fulfill their mandate of increasing SOL per share. The Forward Industries team has bootstrapped fwdSOL with ~25% of their SOL holdings (represented by over 1.7 million fwdSOL), leading to an all-time high of 13.1 million SOL locked in Sanctum LSTs. 



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="889" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-46.png?w=1024&amp;h=1024" alt="" class="wp-image-110283" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-46.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-46.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-46.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-46.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-46.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-46.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-46.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-46.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-46.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



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0xResearch Newsletter

Solana tokens see gains amidst weeklong crypto slump

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<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
“Even when I was little, I was big.”



— William Perry
</blockquote>



<a href="https://pca.st/episode/421fde7c-e03b-452e-b0dc-e12b35d63e4f?t=1087">The first prop bet</a>



Michael Lewis dates the beginning of betting on everything to 1985 when Caesars Palace offered 20-1 odds on William “Refrigerator” Perry scoring a touchdown in the Super Bowl.



He did — a one-yard rumble into the end zone — and Caesars lost at least $250,000 on the bet (a substantial sum in an era when bettors had to call Las Vegas by phone to place wagers).



That was the first known &#8220;proposition” bet — a bet on anything other than the score or result of a game, and as such, the primordial ancestor to today’s prediction markets that offer odds on seemingly everything.



Despite the loss it took, the president of Caesars called it the best bet they’d ever taken: “We’ve had so much publicity on the bet, whatever we’ve lost was worth it.”



“The next day, just about every book in town, your phone started to light up from every big city in the country,” the bookmaker Jimmy Vaccaro told Lewis. “They heard about Perry scoring a touchdown.”



Now, bookmakers “write” more business on the props — will the coin toss be heads or tails? what will the first commercial be for? will there be a wardrobe malfunction? — than they do on the games.



Before The Fridge, there were only about three bets to make on the Super Bowl: the winner, the total points, the halftime score.



Now, there are hundreds.



As it turned out, that was the last of The Fridge’s three career touchdowns despite his 10 additional years in the league (playing on defense).



But those three short rumbles set us on the path to today’s world of betting on virtually anything with prediction markets.&nbsp;



(Although we still mostly want to <a href="https://x.com/AlexKolicich/status/1995936524492476798?s=20">bet on sports</a>.)



<a href="https://open.substack.com/pub/freesystems/p/inside-the-markets-aggregating-political?utm_source=share&amp;utm_medium=android&amp;r=3qcul">A look inside political markets</a>



Here’s a measure of how sophisticated prediction markets have gotten: When Andy Hall watches sports, he’s now gotten in the habit of checking prediction markets right before a big play “because the markets move several seconds before my TV feed does.”



Hall teaches political science at Stanford, so he’s more interested in how prediction markets are “changing how we monitor and understand politics.”



Hall seems cautiously optimistic that booming prediction markets will prove to be a public good because they should offer “a clearer shared picture of a highly complex political environment.”



But he’s also concerned about the “strange feedback loops” they create.



As an example, he cites a Virginia Attorney General race where unverified claims about exit polls circulating on social media moved prediction markets, which caused social media to post the “BREAKING NEWS” of the move in prediction markets, which, in turn, caused the prediction markets to move even further.&nbsp;



That probably did not do the public any good.&nbsp;



Hall notes that prediction markets are also raising questions about what it means to “win” an election.



“In a world where prediction markets are increasingly seen as sources of truth — many people pointed to when Kalshi ‘called’ the mayoral election in New York City as the proof that Mamdani had won — determining these edge cases will be exceedingly fraught.”



So what does it mean if Kalshi calls a close presidential election in 2028?



I’m not sure I want to find out.



(For another foreboding example of prediction markets affecting reality, see this <a href="https://archive.is/IS2cx">story</a> about bettors changing maps of the frontline in Ukraine.)



<a href="https://red.anthropic.com/2025/smart-contracts/">AI agents are very good at hacking smart-contracts</a>



Researchers at Anthropic report that their AI agents successfully exploited 56% of smart contracts known to have vulnerabilities.&nbsp;



More impressively (or worryingly), when tested on 2,849 smart contracts with no known vulnerabilities, the agents also discovered two novel “zero-day” exploits — a demonstration that agents can find new vulnerabilities autonomously.



Perhaps most worryingly, the agents are getting better at an astonishing rate: “Over the last year, frontier models&#8217; exploit revenue…doubled roughly every 1.3 months,” the researchers report.



(They want you to know that no blockchains were harmed in this experiment — they tested on “blockchain simulators.”)



To put that in perspective, Moore&#8217;s Law describes the performance of semiconductors doubling every two years.



These AI agents are doubling their capacity to exploit smart contracts every six weeks.



Amazing. And terrifying.&nbsp;



Anthropic does not have a particular interest in crypto. Instead, it has run this experiment to measure how adept agents will be at hacking code of any sort: “The same capabilities that make agents effective at exploiting smart contracts — such as long-horizon reasoning, boundary analysis, and iterative tool use — extend to all kinds of software.”



Here’s another amazing thing it’s found: “It costs just $1.22 on average for an agent to exhaustively scan a contract for vulnerability.”



“As costs continue to fall,” it concludes, “attackers will deploy more AI agents to probe any code that is along the path to valuable assets, no matter how obscure.”



Consider investing in a lockbox to hold all the physical cash and gold coins we’ll soon be back to using.&nbsp;



<a href="https://epicenter.tv/episode/627-what-will-quantum-computing-change">Quantum computers are coming for crypto first</a>



The risk that quantum computers pose to crypto is often dismissed with a hand-wavy assertion that once the computers get that good, everything will be at risk, so we’ll have bigger things to worry about.&nbsp;



But the latest episode of Epicenter explains why crypto is uniquely vulnerable.



“Most of the classical cryptography community…has been working on this for years,” Stefano Gogioso explains. “They already have protocols they could use if quantum were to happen tomorrow.”



In Web2, “you have centralized authorities,” he adds. If worse comes to worst, “you have banks that would refuse to transact for a day or two.”



In crypto, however, there are two problems: 1) blockchains use “new applications of cryptography” that have gotten little attention from researchers studying quantum resistance and 2) even if we had solutions, there are so many different voices, opinions and vested interests in decentralized crypto, “it would be challenging to change the infrastructure.”



Even more fundamentally, Gogioso notes, “we built an entire ecosystem for the very purpose of making [our data] available to everybody at all times” — which means that once quantum computers are available, they’ll be able to decrypt the entire transaction history of every blockchain.&nbsp;



So, if you’ve been using a privacy chain like Monero to make illicit transactions, you might want to relocate to a non-extradition country sometime soon.&nbsp;



“Monero is already broken,” Gogioso says.&nbsp;



Gogioso also expects governments to use quantum computers to identify who hasn’t been paying capital gains taxes on their crypto winnings: “They’re certainly going to send them a bill for the money they haven’t been paid yet.”



(Personally, I look forward to the refund I&#8217;ll get on all the crypto losses I&#8217;ve been too lazy to report.)



Other fun scenarios include someone moving one of Satoshi&#8217;s coins — how will we know if that’s Satoshi himself or just a guy with a quantum computer?



Or consider a US rival like China targeting Bitcoin — not to make money, but to destabilize a system that&#8217;s become ingrained in US finance.



But the biggest threat of all might be Gogioso’s final prediction: that quantum technology could create a form of permissionless, digital money that solves the double-spend problem without resorting to crypto’s exploit-prone model of distributed consensus.&nbsp;



Whatever the risks, the response has been woefully inadequate.&nbsp;



John Lilic notes that because crypto has a $3 trillion market capitalization, if there’s even a 1% chance of total loss, &#8220;we should be spending $30 billion” on making crypto quantum resistant.



His assessment of the current investment? “We’re not spending anything.”



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Thursday links: Prediction markets, agent hackers, quantum risks

Shaunda Devens

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One of Hyperliquid’s core innovations is builder codes. These codes function as a protocol-level parameter in transaction payloads, allowing interfaces to append a builder address for automated, onchain fee capture. Builders can attach a surcharge of up to 100 basis points (1%) on spot and 10 basis points (0.1%) on perps.



This decoupling of execution from settlement enables frontends to monetize proprietary flow without the technical complexities of maintaining an orderbook or the capital inefficiency of bootstrapping liquidity. As shown below, third-party frontends integrate Hyperliquid perps and add their own variable fee tiers on top, effectively creating a differentiated pricing landscape for the same underlying execution.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-38.png?w=1024&amp;h=1024" alt="" class="wp-image-110261" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-38.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-38.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-38.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-38.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-38.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-38.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-38.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-38.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-38.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



As such, builder codes have unlocked a powerful distribution flywheel. Nearly 40% of daily active users now trade through third-party frontends rather than the native UI, a share that briefly crossed 50% in late October. The top three builders alone, Based, Phantom, and pvp.trade, have collectively captured more than $31 million in fees.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-39.png?w=1024&amp;h=1024" alt="" class="wp-image-110262" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-39.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-39.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-39.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-39.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-39.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-39.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-39.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-39.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-39.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



From a market structure perspective, this pushes Hyperliquid away from the fully-integrated crypto exchange model and closer to the layered intermediation of traditional equities. In a centralized exchange like Binance, one entity controls the full stack across onboarding, routing, matching and custody.



Hyperliquid’s design mimics the US equity market, where retail brokers (Robinhood, Schwab) own the client relationship and monetize distribution, while routing orders to wholesalers (Citadel Securities, Virtu) that handle execution and settlement. In effect, the stack becomes two-tiered:



<ul class="wp-block-list">
<li>A broker-like distribution layer, where builders compete for order flow and differentiate on product and fee pass-through.</li>



<li>A central execution venue, where Hyperliquid concentrates liquidity and handles matching and margining.</li>
</ul>



While new to crypto perps, this decoupling mechanism has already played out on Solana. Trading terminals like Photon and Axiom controlled the user flow by focusing on the consumer layer. Photon grew first by being the fastest Solana memecoin sniper, while Axiom eventually challenged it with a broader product suite and more aggressive points and rebate designs. These terminals effectively functioned as builders: They sat on top of DEXs, bolted on their own fee markups, and maintained accounting manually. Hyperliquid’s builder codes essentially turn that pattern into a native protocol primitive.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-42.png?w=1024&amp;h=1024" alt="" class="wp-image-110265" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-42.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-42.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-42.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-42.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-42.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-42.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-42.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-42.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-42.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



However, the Solana example also highlights the risk. Trading terminals captured 77% of Solana&#8217;s DEX revenue over the past year, $633 million vs. $188 million for DEXs, a 3.4x multiple that highlights that owning the frontend is often more valuable than owning the backend. Specifically, is the frontend too valuable for Hyperliquid to give away?



The relationship between frontends and backends is rarely purely symbiotic. Frontends like Jupiter aggregate various backends (Meteora, Raydium, Orca) and return the best route given size, fees and slippage constraints. 



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1072" height="494" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-43.png?w=1024&amp;h=1024" alt="" class="wp-image-110266" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-43.png?w=1072 1072w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-43.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-43.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-43.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-43.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-43.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-43.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-43.png?w=80 80w" sizes="auto, (max-width: 1072px) 100vw, 1072px" /><figcaption class="wp-element-caption"><a href="https://jup.ag/">Source: Jupiter Frontend Aggregation Example</a></figcaption></figure>







This forces DEX backends into severe margin compression. With zero moat, they must be the cheapest route to win flow. Since they don&#8217;t own the user, backends are also at risk of replacement. We see this when pump.fun replaced Raydium as its liquidity backend with its own in-house AMM, significantly impacting Raydium&#8217;s volume share.&nbsp;



Right now, Hyperliquid does not face this problem. By pioneering builder codes on perps, it is effectively a singular-builder code environment. However, if builders evolve from a UI on top of HL into true routers that can send flow to competing backends, they start to resemble a smart-order router in traditional finance. In this scenario, builders can:



<ul class="wp-block-list">
<li>Optimize all-in cost: Calculate spread/slippage + taker/maker fees + builder surcharge − rebates + expected funding.</li>



<li>Bargain with venues: Demand higher builder shares or rebates with the threat of routing flow elsewhere.</li>



<li>Capture the user relationship: While venues are forced to compete purely to be the cheapest, best-execution wholesale liquidity provider.</li>
</ul>



Similarly, in traditional finance, wholesalers compete with broker-dealers for volume. Robinhood routes to Citadel Securities, Virtu, and Jane Street based on which provides the best execution and payment for order flow.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1318" height="748" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-40.png?w=1024&amp;h=1024" alt="" class="wp-image-110263" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-40.png?w=1318 1318w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-40.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-40.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-40.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-40.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-40.png?w=460 460w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-40.png?w=386 386w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-40.png?w=80 80w" sizes="auto, (max-width: 1318px) 100vw, 1318px" /><figcaption class="wp-element-caption"><a href="https://www.federalreserve.gov/econres/feds/files/2024080pap.pdf">Source</a></figcaption></figure>







While rival DEXs like Drift and Ostium have integrated builder codes, none have emerged as genuine competitors to date. However, a significant structural risk remains: If a venue like Lighter were to pair builder rebates with its zero-fee model, it could theoretically allow wallets like Phantom and Rabby to bypass Hyperliquid’s 4.5 bps fee. This would enable frontends to capture the entire fee stack, effectively doubling their revenue per trade compared to the current Hyperliquid model.&nbsp;



<a href="https://docs.tryliquid.xyz/trading/trading">LiquidTrading</a> serves as a leading indicator of this future. The Paradigm-backed terminal, which raised $7.6 million in its seed round, has facilitated $5.6 billion in volume on Hyperliquid. But crucially, it also allows users to trade on Ostium and Lighter via the same interface. If larger builders follow this path and begin actively routing flow based on venue rebates rather than loyalty, Hyperliquid builder frontends could evolve into a commoditized perp aggregator, directly threatening the protocol&#8217;s ability to capture value.



Still, there is a fundamental difference. Spot is easy to aggregate because each swap is atomic and the asset is fungible across venues. One transaction equals one fill, and a router can seamlessly split a trade across multiple pools. However, with perps, positions are persistent and venue-specific. A BTC-PERP position on Venue A is not fungible with a BTC-PERP position on Venue B due to differences in index composition, funding rates, liquidation engines and risk limits.



To route perps across venues meaningfully, the market needs one of two difficult solutions:



<ul class="wp-block-list">
<li>User fragmentation: Users must keep collateral on multiple venues, which is capital inefficient and results in poor UX.</li>



<li>Prime brokerage layers: The router must act like a clearing layer, solving the hard problems of credit extension, cross-margining and liquidation coordination.</li>
</ul>



While non-fungibility offers a short-term defense, the harsh reality is that frontends are rational economic actors; they will migrate if a competitor offers superior margins. Yet, the data suggests this threat is currently contained. Despite the high user counts on third-party interfaces, the vast majority of volume, over 90%, still originates from Hyperliquid’s native frontend.&nbsp;



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-41.png?w=1024&amp;h=1024" alt="" class="wp-image-110264" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-41.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-41.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-41.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-41.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-41.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-41.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-41.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-41.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-41.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



Furthermore, the HYPE token adds a retention layer. Builders can hold HYPE to access fee discounts, allowing them to stack revenue streams: referrals, builder fees, and volume-based discounts. With this, the cost of switching for incrementally better fees may not be worth it for existing frontends. Finally, the flow coming from builders appears to be additive rather than cannibalistic. These are new users entering the ecosystem via wallets and terminals, not users switching interfaces.&nbsp;



Therefore, while builder codes offer an effective expansion vector, expecting Hyperliquid to maintain total dominance over its distribution layer is unrealistic. As the sector matures, Hyperliquid will face a tougher grind to defend its lead against aggregators and low fee competitors. However, building a performant onchain orderbook remains an immense technical moat, and with frontend margins remaining healthy, the incentives for builders to switch are low. Still, in a rapidly expanding market, this is not a battle to retain volume, but rather a more competitive race for growth where Hyperliquid remains the heavyweight to beat.



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Hyperliquid: The frontend wars

Kunal Doshi

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Markets continued to claw back losses from Monday’s selloff, with BTC, the S&amp;P 500, and the Nasdaq up 2.52%, 0.22%, and 0.05%, respectively, yesterday. Even safe haven gold has given back some gains and is down -0.12% on the day as risk appetite improves.



The uptick came after a surprise <a href="https://tradingeconomics.com/united-states/adp-employment-change">decline</a> in private sector employment. Private employers shed 32,000 jobs in November, compared with expectations for job growth. This pushed the <a href="https://www.investing.com/central-banks/fed-rate-monitor">odds</a> of a rate cut next week to 85%, up from 80% a week ago. Microsoft dragged on the Nasdaq, falling more than -2% after reports that the company has <a href="https://www.tradingview.com/news/gurufocus:6c14c4ac7094b:0-microsoft-stock-falls-amid-slow-corporate-adoption-of-ai-solutions/">lowered</a> AI software sales quotas due to softer than expected demand.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1174" height="628" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-34.png?w=1024&amp;h=1024" alt="" class="wp-image-110254" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-34.png?w=1174 1174w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-34.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-34.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-34.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-34.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-34.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-34.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-34.png?w=80 80w" sizes="auto, (max-width: 1174px) 100vw, 1174px" /></figure>



Across crypto sectors, most indices finished in the green except Gaming, which fell -1.65%. Gaming has been one of the weakest performers this year and is down -77% year to date. Memes, typically the most reflexive sector during market rebounds, also lagged with a modest 1.24% gain. The index was weighed down by PUMP and PENGU, which fell -2.54% and -1.80%, respectively, on the day.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1169" height="625" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-35.png?w=1024&amp;h=1024" alt="" class="wp-image-110255" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-35.png?w=1169 1169w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-35.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-35.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-35.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-35.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-35.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-35.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-35.png?w=80 80w" sizes="auto, (max-width: 1169px) 100vw, 1169px" /></figure>



On the upside, the AI sector led the market with a 7.46% gain. TAO continues to drive the index higher and climbed 7.6% ahead of its halving next week. L1s followed with a 6.45% move, powered by ETH and BNB, which make up 63% of the index and were up 6.6% and 5.2%, respectively.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="950" height="365" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-31.png" alt="" class="wp-image-110251" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-31.png?w=950 950w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-31.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-31.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-31.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-31.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-31.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-31.png?w=80 80w" sizes="auto, (max-width: 950px) 100vw, 950px" /></figure>



Flows tell a more cautious story. After five days of inflows, BTC ETF flows turned negative again with a modest -$14.9 million in outflows. ETH ETFs, however, saw a strong rebound with $140.2 million of inflows after two days of declines earlier in the week. Even so, flows have yet to show real conviction when set against the -$4.4 billion in net outflows seen across November.



<h2 class="wp-block-heading">Market Update: Monad</h2>



Now that we are about one and a half weeks past the Monad TGE, it is a good moment to step back and assess how the chain is actually performing post launch. After a strong initial rally, MON has cooled off and is down -28% on the week, leaving it up a modest 16% from its ICO price. On the ecosystem side, DeFi TVL continues to climb and now sits at <a href="https://defillama.com/chain/monad">$277.5 million</a>.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-37.png?w=1024&amp;h=1024" alt="" class="wp-image-110257" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-37.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-37.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-37.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-37.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-37.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-37.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-37.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-37.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-37.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



A large portion of that TVL is concentrated in AUSD. Around <a href="https://defillama.com/stablecoin/agora-dollar">$144 million</a> of the $277.5 million sits inside Agora’s stablecoin, which is being farmed across various protocols to earn ecosystem incentives. Upshift holds $73 million and is deploying AUSD across DeFi protocols such as Morpho, Uniswap and Euler. Morpho currently offers 4.5% APY on AUSD and 5.98% on USDC, with most of the yield coming from <a href="https://app.morpho.org/monad/earn">MON incentives</a> rather than organic borrow demand. Incentives are an acceptable way to jump start early liquidity, but the real test will be whether Monad can attract DeFi applications that generate sustainable, organic yield once the incentive fire hose tapers off.



Looking at native apps, Nad.fun has been the breakout leader in both accounts and transactions since day one. It is Monad’s native memecoin launchpad, but its staying power is not guaranteed. Only <a href="https://nad.fun/">two tokens</a> launched there have crossed the $1 million market cap mark. Even Chog, the chain’s first community token, is <a href="https://nad.fun/tokens/0x350035555E10d9AfAF1566AaebfCeD5BA6C27777">down</a> more than 65% from its highs and sits at $4.5 million today. Not exactly the early momentum you would want for a vibrant meme ecosystem.



Other homegrown projects are <a href="https://monadvision.com/ecosystem?day=1D">gaining</a> traction. FastLane has become the primary LST on Monad. Pinot Finance is emerging as an alternative DEX to Uniswap. Lumiterra, an MMORPG, has quietly put up strong usage numbers and <a href="https://monadvision.com/ecosystem?day=1D">ranked</a> third by accounts and second by transactions yesterday.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1332" height="602" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-33.png?w=1024&amp;h=1024" alt="" class="wp-image-110253" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-33.png?w=1332 1332w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-33.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-33.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-33.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-33.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-33.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-33.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-33.png?w=80 80w" sizes="auto, (max-width: 1332px) 100vw, 1332px" /></figure>



On the chain level, activity looks promising for a network this early. Monad generated $100,000 in fees over the last seven days, placing it ahead of chains like Avalanche and Ton. <a href="https://monad.socialscan.io/charts/tx">Daily transactions</a> and <a href="https://monad.socialscan.io/charts/active-address">active addresses</a> have been hovering around 2.2 million and 117,000, respectively. These are respectable metrics for a chain that just came out of the gate.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1599" height="432" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-32.png?w=1024&amp;h=1024" alt="" class="wp-image-110252" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-32.png?w=1599 1599w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-32.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-32.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-32.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-32.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-32.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-32.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-32.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-32.png?w=80 80w" sizes="auto, (max-width: 1599px) 100vw, 1599px" /></figure>



But one data point stands out. WormholeScan shows that 75% of the assets bridged into Monad have already flowed back out to other chains. That is an early sign that users may be farming and rotating rather than sticking around.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="728" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-36.png?w=1024&amp;h=1024" alt="" class="wp-image-110256" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-36.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-36.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-36.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-36.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-36.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-36.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-36.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-36.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-36.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



For Monad, the next phase is all about conversion. Can the chain turn early speculative inflows into sticky liquidity and real economic activity? The charts above are the ones I’ll be watching closely to see whether this ecosystem can turn early hype into lasting traction.



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After Monad’s TGE, can the chain turn hype into long-term conversion?

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<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
“Growth in revenues cannot exceed growth in people who can execute and sustain that growth.”



— Packard’s Law
</blockquote>



Arboreal ecosystems operate on a brutal but necessary paradox: For a forest to grow, it occasionally needs to burn.



Without these seemingly-apocalyptic conflagrations, the forest floor becomes choked with underbrush, preventing the new growth needed for regeneration and long-term viability.



Dion Lim <a href="https://ceodinner.substack.com/p/the-ai-wildfire-is-coming-its-going?utm_source=share&amp;utm_medium=android&amp;r=3qcul&amp;triedRedirect=true">says</a> this is how technology cycles work, too.



“The first web cycle,” he explains, “burned through dot-com exuberance and left behind Google, Amazon, eBay, and PayPal: the hardy survivors of Web 1.0. The next cycle, driven by social and mobile, burned again in 2008-2009, clearing the underbrush for Facebook, Airbnb, Uber, and the offspring of Y Combinator.”



The speculative frenzy of investment bubbles burns off non-productive capital much like a wildfire consumes dense fuel — and the inevitable crash clears the way for the market’s resources to be reallocated.



Without these seemingly apocalyptic market conflagrations, a permanent underbrush of failed startups would drain the technology sector of the resources it needs to grow.



This might be why crypto feels so left behind this year: A tangled undergrowth of big projects that never seem to die has been hoarding the resources the ecosystem needs to evolve.&nbsp;



In the real economy, labor is constantly being reallocated from failed companies to successful or promising ones: “Many of Google’s best early employees,” Lim notes, “were founders or early employees of failed Web 1.0 startups.”



This seems to happen less in crypto.



To cite just one example, the Polkadot blockchain — which collected <a href="https://tokenterminal.com/explorer/projects/polkadot/metrics/fees?granularity=day&amp;interval=7d">$72 of fees</a> yesterday — is <a href="https://www.developerreport.com/">supported</a> by 482 full-time developers and 1,404 contributors.



If a project like that — in its sixth year of operations — was funded by stock and not tokens, I’m guessing those resources would have been released back into the ecosystem by now.



This is a problem because <a href="https://www.jimcollins.com/article_topics/articles/the-timeless-physics.html">Packard’s Law</a> suggests that if the scarce resource of crypto developers is not being redistributed to successful projects, crypto will struggle to grow.



Unproductive crypto projects hoard investment resources, too.&nbsp;



Crypto founders are notorious for <a href="https://x.com/hasufl/status/1995417501321040346?s=20">over-raising from investors</a> and living off the proceeds, with no market-imposed urgency to find product market-fit.



For example: One of the original crypto projects, Golem, stockpiled 820,000 ETH in its 2016 ICO, and still held <a href="https://x.com/WuBlockchain/status/1810148153087173023?s=20">231,400</a> of it as recently as last year.



Traditional startup investors expect their capital to be deployed far more quickly than that.&nbsp;



In other cases, projects with inexplicably large market valuations fund themselves seemingly forever by selling their native token out of treasury. Cardano, for example, <a href="https://messari.io/report/state-of-cardano-q3-2025">holds</a> roughly $700 million of its ADA token in treasury, which should keep the project funded approximately forever.



Collectively, crypto protocols are sitting on billions in capital and have little or no incentive to deploy it efficiently — no activist shareholders to placate, corporate raiders to fear or quarterly earnings estimates to meet.



In short, crypto may be too funded to fail.



Ben Thompson has recently articulated a similar fear about traditional tech, worrying that giants like TSMC, Nvidia and Alphabet have become so dominant that the entire ecosystem risks stagnation.



He therefore welcomes the bubble: “What is invigorating or why we should embrace the mania, embrace the bubble, is [that] ‘too-big-to-fail’ was starting to afflict tech as well.”



Thompson notes that the benefit of private enterprise is that &#8220;stupid stuff&#8221; eventually goes out of business. But when companies become entrenched monopolies (or government-backed entities), the stupid stuff doesn’t die. It just becomes over-engineered and inefficient.



He argues we need investment bubbles precisely because they bring risk back into the equation: “You don’t get upside risk without downside risk.”



This might explain why crypto has felt so stagnant this cycle. We have the &#8220;stupid stuff&#8221; — protocols with few users and minimal revenue — but lack the mechanism to make them go out of business.



“Growth becomes difficult when everyone’s roots are tangled,” Lim warns.



Until a forest fire is allowed to burn through the tangled roots of over-funded zombie protocols, the nutrients — capital and developers — will remain trapped, and the next era of growth will remain out of reach.



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amazon

Too funded to fail: Crypto needs a forest fire

Marc Arjoon

Sam Schubert

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Today markets leaned decisively risk-on, with crypto leading the move while traditional assets stayed muted. Ethereum’s Fusaka upgrade arrived with PeerDAS, BPO hard forks, and the under-discussed EIP-7918, which together may finally restore deflationary pressure on ETH. On the thematic front, Sui is making an aggressive full-stack push into robotics, positioning onchain coordination, settlement and telemetry as critical primitives for a coming wave of real-world machines.



<h2 class="wp-block-heading">Indices</h2>



Markets leaned firmly risk-on, with crypto broadly outperforming traditional assets. BTC (+5.8%) sat mid-pack, while equities were muted. The S&amp;P 500 (+0.3%) and Nasdaq 100 (+0.9%) barely budged. Gold (-0.3%) slipped, and crypto miners were the clear outlier to the downside (-8.7%), suggesting profit-taking and sensitivity to BTC’s consolidation.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-29.png?w=1024&amp;h=1024" alt="" class="wp-image-110222" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-29.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-29.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-29.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-29.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-29.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-29.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-29.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-29.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-29.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



The crypto sector breadth was exceptionally strong. Oracles, lending and the broader Ethereum ecosystem led the board, signaling a clear rotation back into core infrastructure and high-utilization protocols. DeFi, Modular, the Solana ecosystem, and perps followed close behind with similarly solid showings, pointing to broad appetite for beta across liquid alt sectors. Lower down the stack, L2s, AI plays, launchpads and gaming tokens all moved higher, while more speculative areas like memes lagged. The only clear pockets of weakness were crypto equities and miners especially, which saw meaningful pullbacks.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-27.png?w=1024&amp;h=1024" alt="" class="wp-image-110218" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-27.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-27.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-27.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-27.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-27.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-27.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-27.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-27.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-27.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



The move fits with improving sentiment as macro headwinds ease. Yields stabilized, liquidity indicators firmed, and positioning metrics suggest investors are adding risk after a muted stretch. Strong rebounds in infra sectors imply expectations for higher onchain activity and potential catalysts from upcoming protocol upgrades. Looking ahead, attention turns to macro prints later this week, which could test the durability of this risk-on tone. Volatility remains compressed, but with crypto sector dispersion widening, traders should expect sharper rotations as narratives evolve.



<h2 class="wp-block-heading">Market update&nbsp;</h2>



Today is Fusaka day in Ethereum land, the second upgrade this year (the <a href="https://blockworks.co/news/ethereum-pectra-fork-live">Pectra hard fork</a> was in May). It’s not often that Ethereum has two upgrades in one year, and that’s because Fusaka is more of a half-upgrade. Over a dozen EIPs were removed after <a href="https://blockworks.co/news/ethereum-consensus-evm-upgrade-fusaka-devs">EOF was mothballed</a> in April.



Of the 12 EIPs remaining, PeerDAS, is the most significant, according to Gabriel Trintinalia, protocol engineer at Consensys.



&#8220;During the initial development of the Fusaka upgrade, any feature that carried a risk of delaying the fork, such as those requiring more research or having high complexity, was deprioritized and removed from the scope,&#8221; Trintinalia told Blockworks.



PeerDAS introduces <a href="https://ethereum.org/developers/docs/data-availability/">data availability sampling</a>, which allows validators to share the load of blobs, effectively allowing for an increase in blobs per block. There is one upgrade being overlooked, but first, some background:&nbsp;



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-28.png?w=1024&amp;h=1024" alt="" class="wp-image-110219" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-28.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-28.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-28.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-28.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-28.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-28.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-28.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-28.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-28.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



Blobs have failed to hit their target of six per block, and just when it looked like they were about to, Ethereum is looking to raise the target again. Technically, Fusaka will not be raising the blob target, but is instead introducing <a href="https://blockworks.co/news/ethereum-fusaka-dec3-launch">Blob Parameter Only</a> (BPO) hard forks. This creates a separate and easier process to adjust blob storage parameters. So instead of waiting for a major upgrade, Ethereum can make smaller, more frequent adjustments to blob capacity.&nbsp;



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1124" height="624" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-25.png?w=1024&amp;h=1024" alt="" class="wp-image-110216" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-25.png?w=1124 1124w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-25.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-25.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-25.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-25.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-25.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-25.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-25.png?w=80 80w" sizes="auto, (max-width: 1124px) 100vw, 1124px" /></figure>



The larger point still stands: With supply exceeding demand, the blob gas price has been largely immaterial (apart from a few blips here and there when the blob price reached a measly 1 gwei).&nbsp; 



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1124" height="624" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-30.png?w=1024&amp;h=1024" alt="" class="wp-image-110224" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-30.png?w=1124 1124w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-30.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-30.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-30.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-30.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-30.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-30.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-30.png?w=80 80w" sizes="auto, (max-width: 1124px) 100vw, 1124px" /></figure>



Post-Pectra, between June and October, Ethereum generated around $900 in blob fees. The brief spike in November brought this to ~$23,000. Still not material, but it highlighted the order-of-magnitude difference when blobs actually have a market.&nbsp;



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1124" height="624" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-24.png?w=1024&amp;h=1024" alt="" class="wp-image-110215" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-24.png?w=1124 1124w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-24.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-24.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-24.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-24.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-24.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-24.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-24.png?w=80 80w" sizes="auto, (max-width: 1124px) 100vw, 1124px" /></figure>



This is why <a href="https://eips.ethereum.org/EIPS/eip-7918">EIP-7918</a> needs more attention. It addresses the blob fee market problem by introducing a reserve price tied to execution costs (a floor price of sorts). When L2 execution costs dominate blob costs, this prevents the blob fee market from becoming ineffective at 1 wei. For example, as shown below, if EIP-7918 was introduced on June 1, 2025, burnt blob fees would have been nearly 8x more. The upgrade isn’t only a reserve pricing model, it also presents more price stability and predictability, avoiding dramatic fee spikes when the blob market becomes inelastic.&nbsp;



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="917" height="445" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-26.png" alt="" class="wp-image-110217" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-26.png?w=917 917w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-26.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-26.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-26.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-26.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-26.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-26.png?w=80 80w" sizes="auto, (max-width: 917px) 100vw, 917px" /></figure>



Together with PeerDAS and BPO, this suggests that as Ethereum scales L2 capacity, blob fees should go up as well (historically, this relationship has been strictly inverse). For ETH holders, this, combined with L1 scaling, can hopefully return the ETH supply to a deflationary phase.



Updated Dec. 4, 2025 at 2:12 am ET: Clarified comment



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Ethereum’s Fusaka upgrade lands today

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<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
“In economics, things take longer to happen than you think they will, and then they happen faster than you thought they could.”



― Rudiger Dornbusch
</blockquote>



The opening scene of Philip K. Dick’s 1969 sci-fi classic <a href="https://www.amazon.com/Ubik-Philip-K-Dick-ebook/dp/B005LVR6ZA/ref=tmm_kin_swatch_0?_encoding=UTF8&amp;dib_tag=se&amp;dib=eyJ2IjoiMSJ9.JF_a_3YBqUArh4K_Z-iE6I6X9p5rZmjuOVdoQJ2WB_pOXJYsddjBJD-C4GbxF5PWnydxdgUc4oqmKMArafhTlD7WDLvesTxtppG3tuVe4le3qpVkyrP5ILCHmxpK4PwQzG84S5zO1_X4hBi3WbFsSCuYetIwZlBHM-aeR3h0knDZvx-eCVN1xWYCwvl9yP_BRaaMJLQFiMfUchLg7OnMpClGXXjn1Q_bDHY_GK-k04o.yw3FYUPmpQ7IHVLHZEGZAiB6TQljO59oXPF-sq8ttjI&amp;qid=1764648536&amp;sr=8-1">Ubik</a> features an apartment door demanding payment from its owner.&nbsp;



When Joe Chip, behind on his rent, attempts to open the door for a guest, it replies, “Five cents, please.” Short of change, he offers to pay tomorrow, but his credit score is shot so the door ignores him.&nbsp;



He tries to reason with it:&nbsp; “What I pay you,” he informed it, “is in the nature of a gratuity; I don’t have to pay you.”&nbsp;



“I think otherwise,” the door responds, before instructing Chip to check his contract.



“You discover I’m right,” the door says. It sounds smug.



When Chip starts to unscrew the bolt mechanism with a knife, the door threatens legal action, but Chip is undeterred — “I’ve never been sued by a door. But I guess I can live through it.”



Before any damage is done, Chip’s guest pays from the other side and the door finally opens.&nbsp;



Later, the refrigerator, coffee maker and shower all demand payment before rendering their services — and the guest has to pay the door again to leave.



Such was Philip Dick’s dystopian vision of the future: Apartments turned into pay-as-you-go vending machines.



But this might also be the u-topian future of decentralized finance.&nbsp;



The dream of decentralized finance is to transform every asset into a programmable financial instrument that automatically enforces the terms of its own contract.



The problem with decentralized finance is that it’s limited to crypto assets, because a smart contract can’t reach into the physical world to repossess a car or evict a tenant.



But what if a smart contract could lock the door to your house, car or refrigerator? In that world, a lender could accept those kinds of real-world assets — anything that can be locked — as collateral against onchain loans.&nbsp;



It’s not a new idea.



Way back in 1997, Nick Szabo <a href="https://nakamotoinstitute.org/library/the-idea-of-smart-contracts/">described</a> the utility of turning smart contracts into smart locks: “Many kinds of contractual clauses (such as collateral, bonding, delineation of property rights, etc.) can be embedded in the hardware and software we deal with, in such a way as to make breach of contract expensive (if desired, sometimes prohibitively so) for the breacher.”



“These protocols would give control of the cryptographic keys for operating the property to the person who rightfully owns that property,” he added, “based on the terms of the contract.”&nbsp;



So far, that property has only been tokens, because that’s the only property whose ownership can be embedded in smart contracts.



But smart locks, controlled by smart contracts with verifiable, immutable rules, could turn the whole world into a vending machine.&nbsp;



Szabo called vending machines the &#8220;primitive ancestor of smart contracts”: a mechanical contract that holds an asset (a can of soda, say) and releases it to anyone who satisfies the conditions of that contract (inserting a coin). No human or corporate shopkeeper needed.



The rules-based machine becomes the shopkeeper — much like Joe Chip’s door becomes his landlord.



Szabo thought something like the latter was where we were headed: “Smart contracts go beyond the vending machine in proposing to embed contracts in all sorts of property that is valuable and controlled by digital means.”&nbsp;



Sixteen years before the advent of Ethereum, Szabo envisioned smart locks granting digital control of real-world property, citing cars as the “most straightforward” use of smart locks.&nbsp;



“We can create a smart lien protocol: If the owner fails to make payments, the smart contract invokes the lien protocol, which returns control of the car keys to the bank.”



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="839" height="314" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-23.png" alt="" class="wp-image-110212" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-23.png?w=839 839w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-23.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-23.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-23.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-23.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-23.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-23.png?w=80 80w" sizes="auto, (max-width: 839px) 100vw, 839px" /></figure>



Nothing exactly like that has happened as of yet, but Szabo was at least directionally correct — on two counts: Smart contracts exist, on Ethereum and elsewhere, and auto-loan lenders are securing their collateral with remote locks.



Starter interrupt devices (SIDs) that allow lenders to remotely disable a car when a borrower has fallen behind on their payments have become popular with sub-prime auto lenders in recent decades.



This raises some obvious questions: What if you need the car to get to work to make money to catch up on your loan? What if you’re doing 80 on the freeway when your lender decides to disable your auto? 



Unlike Joe Chip’s door, you can’t drop coins into the dashboard of a SID-disabled car to unlock it. And good luck getting someone on the phone at the lender to plead your case or even make a payment.



You could, however, quickly top up your payment via smart contract, on a smart phone with a digital wallet.



This is not a new idea, either.



In 2015, Slock.it promised exactly the kind of digital locks (Slocks) that Joe Chip negotiated with: “With Slock, the person who rents your house pays directly to the lock itself. The lock enters into a smart contract with the renter.”



For reasons that remain unclear, Slocks didn’t catch on — or get into production, even.



(The Slock.it team may have taken their eyes off the ball when their side project, The DAO, nearly sank Ethereum.)



But it might also be that they were just early.



If so, now may finally be the time for blockchain-based smart locks.



The infrastructure is built: Chains are fast, transactions are cheap, frontends are user-friendly.



TradFi wants to tokenize everything: Crypto assets have flopped this year, but the enthusiasm for bringing real-world assets onchain has only grown.&nbsp;



Investors want alternative assets: The demand for productive yield outside the shrinking universe of public equities is seemingly insatiable.



Smart contract smart locks might be the way to provide it.



Consider Turkey, for example, where borrowers pay 5% per month on their <a href="https://www.fibabanka.com.tr/en/product-and-service-fees/personal-interest-rates/auto-loans">auto loans</a>, which works out to over 100% per year — 70 percentage points above inflation.



If those loans were tokenized and governed by a smart contract that automatically disables a car when a borrower defaults, wouldn’t that attract investors from everywhere?



BlackRock’s Larry Fink <a href="https://www.economist.com/by-invitation/2025/12/01/larry-fink-and-rob-goldstein-on-how-tokenisation-could-transform-finance">said</a> this week that “tokenization can greatly expand the world of investable assets beyond the listed stocks and bonds that dominate markets today.”



Philip K. Dick predicted the technology. Nick Szabo wrote the manual.&nbsp;



Now, finance just needs to build the door to this investors’ utopia.



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smart contracts

The sci-fi future of onchain assets and smart locks

Strategy stress, liquidity strain

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<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
“It is essential for human flourishing that we conduct substantial parts of our lives unobserved.”



— Tiffany Jenkins
</blockquote>



Hallways were the first privacy tech.



In 1716, the Duchess of Marlborough questioned the architect designing Blenheim Palace because of all the long, narrow rooms he had planned. The architect had to explain that these were “no more than a passage” between rooms.



Another contemporary builder articulated the purpose of this revolutionary new design:&nbsp; “All the Rooms in this House are private; that is, there is a Way into each of them without passing through any other Room.”



In other words, hallways created privacy.&nbsp;



“It took a century for this architectural feature to become commonplace,” Tiffany Jenkins writes in <a href="https://www.amazon.com/Strangers-Intimates-Rise-Fall-Private/dp/1529034167">Strangers and Intimates; the Rise and Fall of Private Life</a>. “But once it did, the Victorians embraced it wholeheartedly.”



Before the time of hallways, “there was no strictly separate private sphere, no aspect of life where others could not legitimately intrude,” she explains. “The outside world could pry into anyone’s business and was expected to do so. Curiosity and nosiness were mandated.”



Counterintuitively, that began to change with the Puritans, whose insistence that matters of religion and conscience were private freedoms established the first barrier the state could not cross.



Once established, this zone of non-interference expanded into a Victorian definition of privacy that protected bedrooms, communications and commerce.&nbsp;



In 1844, the privacy zone was tested when the British government was caught opening the letters of the political exile Giuseppe Mazzini to snoop on his correspondence with Italian revolutionaries.&nbsp;



Mazzini proved the surveillance by having friends mail him grains of sand and poppy seeds. When the letters arrived otherwise empty — the grains having fallen out during the government’s clumsy inspection — the breach of privacy sparked national outrage.



Thomas Carlyle called opening a man’s letters a “scoundrelism” equivalent to picking his pocket.



Radical MP Thomas Duncombe said the practice was “subversive of the public confidence essential to a commercial country.”



Most tellingly, the plots of two Charles Dickens novels — Bleak House and Little Dorrit — revolved around stolen letters that threatened to expose family connections and economic dealings.



All of which confirmed, as Tiffany Jenkins says, that “a revolution in the value and esteem of privacy had taken place.”



But while Victorians were the first to embrace this cultural ideal, the United States was the first to write it into law — sort of.



In 1890, Samuel Warren and Louis Brandeis published <a href="https://www.brandeis.edu/library/archives/exhibits/ldb-100/career/privacy.shtml">The Right to Privacy</a> — a foundational article arguing for a fundamental &#8220;right to be let alone&#8221; that was written in response to the privacy intrusions of newspapers and early photography.



This was a &#8220;seminal moment&#8221; in the history of privacy, Jenkins writes. But, in researching their article, the two lawyers observed a surprising gap: There is no mention of privacy in the Constitution — not even in the Amendments.



Despite the influence of the article, the constitutional silence on privacy persisted for decades.



In 1928, the Supreme Court upheld the government’s use of warrantless wiretaps in Olmstead v the United States, which ruled that wiretapping did not violate the Fourth Amendment (because there was no physical trespass onto the defendant&#8217;s property).&nbsp;



Writing on behalf of the four dissenting justices, Justice Brandeis warned that “the progress of science in furnishing the Government with means of espionage is not likely to stop with wiretapping. Ways may someday be developed by which the Government, without removing papers from secret drawers, can reproduce them in court, and by which it will be enabled to expose to a jury the most intimate occurrences of the home.”



Exactly that has happened, of course.&nbsp;



(Less prophetically, Brandeis also warned that “advances in the psychic and related sciences may bring means of exploring unexpressed beliefs, thoughts and emotions.”)



It was not until Griswold v Connecticut in 1965 that the Supreme Court asserted a constitutional right to privacy. And even then it took some creative logic.&nbsp;



“To rule that privacy is a constitutional right,” Jenkins writes, “Justice Douglas argued that the Bill of Rights’ specific guarantees have ‘penumbras’ which, when drawn together, add up to a de facto right to privacy.” Penumbras — a concept that sounds more astronomical than legal — seems like a precarious legal foundation for privacy.



In 1967, the right to privacy got a little more concrete when the Supreme Court ruled in Katz v the United States that the Fourth Amendment protected not just places, but people, too.



This was celebrated by privacy advocates because it decoupled privacy rights from property rights, ensuring that the Fourth Amendment applied in places like the telephone booth where Charles Katz was illegally betting on college basketball.



In hindsight, though, the celebrations look misplaced because the court simply required that the government get a warrant for its eavesdropping.&nbsp;



“The ruling actually normalized wiretapping surveillance as a tool of law and order,” Jenkins writes.



For privacy advocates, things have only gone downhill from there.



“Through a series of rulings,” Jenkins writes, “the Supreme Court narrowed the definition of prohibited searches while broadening the scope of permissible searches and warrants. As a result, constitutional protections for privacy were progressively undermined.”



To illustrate just how undermined, Jenkins cites the case of Monica Lewinsky, who was forced to surrender her private correspondence, gifts, and clothing simply because her infamous correspondent was accused of a crime (and not even a big one).



With the government granting itself that kind of subpoena power, privacy is no longer a locked door at the end of a hallway — instead, it’s just a paperwork requirement.



Jenkins laments this.



“It’s essential to have a private space shielded from corporate, state and public scrutiny,” she concludes; “a place where we can be alone.”



But her history of privacy demonstrates that, contrary to popular belief, “it’s neither ‘natural’ nor universal to have a private life.”



So if we want one, we’ll have to build it.



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Cybersecurity

Privacy is not a ‘natural’ right — it’s an invention

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Today, we break down the BTC move during Asia hours and the renewed pressure from Japan’s carry unwind. We then look at China’s latest crypto FUD and track the continued USDe deleveraging cycle ahead of Pendle expiries, mapping what needs to shift for Ethena yields to recover.



<h2 class="wp-block-heading">Indices</h2>



BTC dropped about 5% in early Asia hours, trading near $86K. The move hit thin late-weekend liquidity and flushed several hundred million of long leverage.



On the rates side, Japan is again reactivating the yen-carry unwind. Two-year Japanese Government Bonds (JGBs) trade near 1%, 10-year yields are around 1.9%, both the highest since 2008. Overnight Interest Swaps now price about 80% odds of a December hike from the BOJ.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="920" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-1.png?w=1024&amp;h=1024" alt="" class="wp-image-110158" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-1.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-1.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-1.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-1.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-1.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-1.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-1.png?w=454 454w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-1.png?w=381 381w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-1.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



The last surprise move in mid-2024, when the BOJ lifted rates to 0.25%, drove a sharp USD-JPY reversal and contributed to a near 30% BTC drawdown to roughly 49K as macro books de-grossed risk. A similar pattern appeared today, with BTC tracking the Nikkei lower during Asia hours.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="920" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-2.png?w=1024&amp;h=1024" alt="" class="wp-image-110159" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-2.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-2.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-2.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-2.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-2.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-2.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-2.png?w=454 454w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-2.png?w=381 381w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-2.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



The underlying mechanism is unchanged. Global macro funds and institutions borrow yen or short JGBs to fund higher-yielding USD and EUR assets. As JGB yields rise, the yen funding leg becomes more volatile and more expensive. Investors reduce carry books and cut the highest beta exposures first, so BTC sits at the front of the liquidation stack.



The September 2024 BIS Quarterly Review quantified the size and opacity of this ecosystem:



<ul class="wp-block-list">
<li>Notional FX swaps and forwards with JPY on one side reached $14.2 trillion dollars (about 1,994 trillion yen). These positions sit off-balance-sheet and do not appear in conventional debt metrics.</li>



<li>Visible on-balance-sheet yen loans to foreign non-banks totaled only $271 billion dollars, confirming that most yen borrowing happens through derivatives rather than loans.</li>



<li>About $1.7 trillion dollars of yen liquidity is provided by non-bank financial institutions like trustee accounts. These allocators are volatility-sensitive and are prone to withdraw liquidity quickly under stress.</li>
</ul>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="965" height="703" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-4.png" alt="" class="wp-image-110161" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-4.png?w=965 965w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-4.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-4.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-4.png?w=353 353w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-4.png?w=358 358w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-4.png?w=301 301w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-4.png?w=80 80w" sizes="auto, (max-width: 965px) 100vw, 965px" /><figcaption class="wp-element-caption"><a href="https://www.bis.org/publ/qtrpdf/r_qt2409y.htm">Source: Sizing up carry trades in BIS statistics</a> </figcaption></figure>







As yen becomes more expensive, positions need to be unwound. This forces both de-risking in high beta assets and mechanical JPY buying, which can feed a reinforcing loop as yen strengthens.



Adding fuel to the fire, China contributed another catalyst. The PBoC reiterated that all virtual-currency trading remains illegal and explicitly categorized stablecoins under AML and capital flight restrictions. Hong Kong crypto-linked equities reacted immediately: Yunfeng Financial fell more than 10%, Bright Smart dropped about 7%, and OSL Group declined over 5%.



The substance of the policy is not new, and it seems this is the hundredth time China is banning crypto. However, the price reaction is significant, and shows we are still in a highly skittish regime.



<h2 class="wp-block-heading">Charts for The Week</h2>



This year’s Oct. 11 liquidation episode was the largest in crypto’s history. A Trump tariff tweet sent BTC from about $120K to roughly $102K and wiped out about $19 billion dollars of open positions in 24 hours. USDe traded as low as $0.65 on Binance and about $0.92 on Bybit. Despite this, Ethena processed $1.9 billion of redemptions, maintained full backing and contained systemic contagion. Combined with Bybit’s February $1.5 billion exploit, this was a second major stress event that USDe passed with flying colors. However, despite that resilience, USDe supply has fallen almost 50% from the $14 billion dollar peak to about $7 billion.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1350" height="712" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-6.png?w=1024&amp;h=1024" alt="" class="wp-image-110163" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-6.png?w=1350 1350w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-6.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-6.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-6.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-6.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-6.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-6.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-6.png?w=80 80w" sizes="auto, (max-width: 1350px) 100vw, 1350px" /><figcaption class="wp-element-caption"><a href="https://app.ethena.fi/dashboards/transparency">Source: Ethenas Dashboard</a></figcaption></figure>







The driver behind this is unattractive carry. Following October&#8217;s OI wipeout, funding rates for BTC and ETH are muted to negative, with Ethena’s dashboard showing negative funding across majors. Since November, the sUSDe spread has been below three-month Treasury yields.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1354" height="718" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-5.png?w=1024&amp;h=1024" alt="" class="wp-image-110162" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-5.png?w=1354 1354w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-5.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-5.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-5.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-5.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-5.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-5.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-5.png?w=80 80w" sizes="auto, (max-width: 1354px) 100vw, 1354px" /></figure>



With core delta-neutral strategy being unprofitable or returning low yields, 63.3% of the system is now held in liquid stables rather than deployed in delta neutral carry.&nbsp;



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1342" height="672" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-3.png?w=1024&amp;h=1024" alt="" class="wp-image-110160" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-3.png?w=1342 1342w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-3.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-3.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-3.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-3.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-3.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-3.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-3.png?w=80 80w" sizes="auto, (max-width: 1342px) 100vw, 1342px" /></figure>



The unwind also shows up in Aave and Pendle TVL.



<ul class="wp-block-list">
<li>sUSDe looping became unattractive as sUSDe yields fell below USDC borrow rates (4.87% USDC borrow vs 4.77% sUSDe APY).</li>



<li>The November Pendle sUSDe PT expiry removed most of the size from Aave, and exposure fell from more than $5.4 billion to about $340 million.</li>
</ul>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1184" height="864" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image.png?w=1024&amp;h=1024" alt="" class="wp-image-110157" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image.png?w=1184 1184w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image.png?w=352 352w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image.png?w=358 358w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image.png?w=80 80w" sizes="auto, (max-width: 1184px) 100vw, 1184px" /><figcaption class="wp-element-caption"><a href="https://dune.com/sealaunch/ethena-on-aave">Source: SeaLaunch Dunes</a></figcaption></figure>







Going forward, the market needs to assess whether new expiries will attract significant utilization. The February 2026 PT implies a yield of only 5.8%, the lowest of any previous expiry, and at current levels, looping against Aave borrow rates is not profitable, so Aave PT utilization should remain low. Secondly, sUSDe rates must climb back above USDC borrow rates to continue to see demand on Aave.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1426" height="822" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-9.png?w=1024&amp;h=1024" alt="" class="wp-image-110166" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-9.png?w=1426 1426w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-9.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-9.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-9.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-9.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-9.png?w=453 453w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-9.png?w=380 380w, https://blockworks-co.imgix.net/wp-content/uploads/2025/12/image-9.png?w=80 80w" sizes="auto, (max-width: 1426px) 100vw, 1426px" /></figure>



Therefore, until funding turns frothy, Ethena’s core engine remains impaired. And as crypto becomes more institutionalized, with larger market makers and deeper derivatives liquidity, our base case is that funding rates trend structurally lower. For yields to recover, directional appetite must return so perp basis widens, and ETH vol needs to rise so positive funding can re-establish itself.



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Yen pressures meet soft crypto carry

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As the holiday week wraps up, the spotlight has shifted to fundamental valuation concerns. Monad’s mainnet launch, L1/L2 valuation debates, and new details around Berachain’s refund terms are driving most of the conversation. We also cover this week’s top reads and the key takeaways from Monday’s 0xResearch livestream to keep you plugged in.



<h2 class="wp-block-heading">Weekend Reading</h2>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1174" height="742" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-161.png?w=1024&amp;h=1024" alt="" class="wp-image-110148" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-161.png?w=1174 1174w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-161.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-161.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-161.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-161.png?w=407 407w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-161.png?w=413 413w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-161.png?w=347 347w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-161.png?w=80 80w" sizes="auto, (max-width: 1174px) 100vw, 1174px" /></figure>



<a href="https://x.com/santiagoroel/status/1992963918768054331">Crypto Is Priced for Network Effects It Does Not Have</a>



Santiago argues that crypto already trades as if it has Facebook-level network effects, with non-BTC crypto at a roughly $1 trillion market cap. This implies about $2,500 per broad user, $9,000 per active user and $23,000 per monthly onchain user, despite much weaker monetization and retention. He shows L1s are around 90% of market cap but their fee share has fallen from roughly 60% to 12% as DeFi and other apps capture most fees on a small share of value. That shift suggests real network effects sit in forkable aggregation layers rather than bases, and that while Ethereum and Solana are building stronger flywheels, the asset class is already priced for an internet scale settlement role it has not yet earned.&nbsp;



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="640" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-163.png?w=1024&amp;h=1024" alt="" class="wp-image-110150" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-163.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-163.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-163.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-163.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-163.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-163.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-163.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-163.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-163.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



 <a href="https://4pillars.io/en/issues/to-see-tethers-future-look-at-its-investments">To See Tether’s Future, Look at Its Investments</a> 



Four Pillars reviewed several Tether investments to argue that USDT’s relentless growth and $135 billion Treasury portfolio shows Tether is building a digital financial empire. In capitalizing on MiCA friendly issuers in Europe, on- and off-ramps and wallets in several countries, and bets on BTC backed lending, bitcoin mining and gold royalties, Tether is stitching together global rails for USDT that serve both retail users and institutions. The piece concludes that instead of being weakened by regulation, Tether is becoming a too-big-to-fail onchain extension of the dollar system, with bitcoin and gold as strategic reserves. 



<img loading="lazy" decoding="async" src="blob:https://cms.blockworks.co/970f1aab-81ab-4918-b6e1-cd6912273413" width="372" height="209"> <a href="https://coinmetrics.substack.com/p/state-of-the-network-issue-338">Zcash’s breakout and the revival of onchain privacy</a>



Coin Metrics’ State of the Network argues that ZEC’s nearly 10x rally since October is a repricing of onchain privacy. Shielded supply has climbed to 4.9 million ZEC, or about 30% of circulating supply — up from 11% at the start of 2025. It highlights how the Orchard shielded pool, unified address wallets like Zashi and crosschain rails (such as NEAR Intents) have lowered friction for partially shielded flows, even as fully shielded transfers remain a small share of activity. The report also frames Zcash as a bitcoin-like, 21 million cap asset whose improving UX, faster proofs and growing anonymity set are finally being recognized by the market.



<img loading="lazy" decoding="async" src="blob:https://cms.blockworks.co/751adf3c-161b-4b9e-8763-41fed8bb09c9" width="544" height="217"> <a href="https://x.com/PineAnalytics/status/1992378885288194309">Understanding SIMD-0411</a>



Pine Analytics walks through Solana’s SIMD-0411 proposal, which doubles the disinflation rate from 15% to 30% so that inflation reaches the 1.5% terminal level in about three years instead of six. The proposal roughly cuts 22 million SOL of emissions, or about $3 billion at current prices. The piece contrasts this minimal parameter tweak with the more complex SIMD-0228 idea, arguing that a deterministic schedule is easier to model, govern and explain. It notes that slightly lower staking yields and pressure on weaker validators are worth the trade for less dilution, better capital efficiency and a stronger long-term monetary profile for SOL.



<h2 class="wp-block-heading">Monad Mainnet, L1 Valuations, and Berachain News</h2>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1280" height="720" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-162.png?w=1024&amp;h=1024" alt="" class="wp-image-110149" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-162.png?w=1280 1280w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-162.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-162.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-162.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-162.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-162.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-162.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-162.png?w=80 80w" sizes="auto, (max-width: 1280px) 100vw, 1280px" /></figure>



Takeaways from Monday’s 0xResearch livestream:&nbsp;



<ul class="wp-block-list">
<li>Monad mainnet launch: The hosts highlight a few early apps, but TVL is tiny, with day one typically representing a gap between huge expectations and limited initial utility until incentives and more products arrive. </li>



<li>ICO pricing and perps: The panelists discuss Monad’s Coinbase sale priced around a $2.5 billion FDV, while MegaETH still trades near $3.5 billion pre-TGE and is expected to reprice once spot liquidity appears. </li>



<li>Throughput vs. value: The discussion highlights new L1s like Monad and MegaETH promising higher TPS, yet the hosts argue raw speed alone no longer justifies multi-billion valuations without clear economic activity and value capture. </li>



<li>Who captures fees: The group notes Solana has seen more ZEC spot volumes than Hyperliquid, but Hyperliquid likely earns more per unit of trading activity because it owns the orderbook, which shows why chains need canonical revenue apps. </li>



<li>Neutral infra or app owner: The group prefers models where chains also ship their own DEX, lending and stablecoin rails, pointing to Berachain’s stack as directionally right and questioning why many L1s let external apps take most of the economics. </li>



<li>Berachain refund scoop: Reports that Brevan Howard’s Nova fund had a post-TGE refund on a $25 million allocation is being called highly unusual, raising MFN questions for other investors and highlighting how some funds face limited downside. </li>



<li>L1 tokens and launch design: James Christoph argues most new L1 tokens still trade on narratives and flows, that very few will reach Ethereum or Solana style valuations, and that future launches need lower FDV, broader public float and earlier onchain price discovery if they want anything other than down-only charts.</li>
</ul>



Look for the full podcast on <a href="https://www.youtube.com/watch?v=feFxJmFnpu0">YouTube</a>, <a href="https://spoti.fi/3NlP1hA">Spotify</a>, <a href="https://apple.co/3SNhUEt">Apple Podcasts</a> and <a href="https://x.com/0xResearch/status/1992987496230047899">X</a>.



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New chains, old problems

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Happy Thanksgiving, everyone! Prediction markets are exploding with record volumes, billion dollar raises and new players shaking up the landscape. At the same time, Neutrl is opening up one of the strongest and least talked about yield opportunities in crypto, and early numbers are already turning heads. Plenty to be thankful for in the middle of this market chop.



<h2 class="wp-block-heading">Market Update</h2>



Since my last update on prediction markets, the space has only gotten more competitive. New entrants want a slice of the rapidly growing pie, and the race for dominance now feels like a full-blown fundraising arms race. Kalshi’s valuation jumped to $11 billion after <a href="https://techcrunch.com/2025/11/20/source-kalshis-valuation-jumps-to-11b-after-raising-massive-1b-round/">announcing</a> a $1 billion round, following the NYSE’s $2 billion <a href="https://pitchbook.com/news/articles/polymarket-lands-2b-from-nyses-parent-company-as-prediction-markets-go-mainstream">investment</a> in Polymarket at a $9 billion valuation. Polymarket is already in <a href="https://www.coindesk.com/business/2025/10/23/polymarket-seeks-investment-at-valuation-of-usd12b-usd15b-bloomberg">early conversations</a> to raise at a $12 billion to $15 billion valuation, suggesting that the market is heating up faster than expected.



On the activity side, weekly volumes have broken past previous all-time highs, hitting $3.68 billion two weeks ago, which is 2.4x above last year’s election peak. A major reason for this surge is a new entrant called Opinion Labs. Backed by investors like YZi Labs, the platform is already doing close to one third of total volumes across prediction markets.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="803" height="470" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-156.png" alt="" class="wp-image-110138" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-156.png?w=803 803w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-156.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-156.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-156.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-156.png?w=446 446w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-156.png?w=374 374w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-156.png?w=80 80w" sizes="auto, (max-width: 803px) 100vw, 803px" /></figure>



However, most of this growth appears to be farming-driven. Opinion Labs is running a points program, and the data quickly shows it. One market alone, titled <a href="https://app.opinion.trade/detail?topicId=1274">Will Satoshi move any Bitcoin in 2025</a>, has done $1.28 billion in volume, which accounts for 32% of its <a href="https://dune.com/queries/6047958/9725367">total notional volume</a>. It is not the type of market one would expect to generate that level of activity organically. Despite the volume surge, Opinion Labs only represents 14% of total open interest, another sign of inorganic participation.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="803" height="471" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-159.png" alt="" class="wp-image-110141" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-159.png?w=803 803w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-159.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-159.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-159.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-159.png?w=445 445w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-159.png?w=373 373w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-159.png?w=80 80w" sizes="auto, (max-width: 803px) 100vw, 803px" /></figure>



Looking across categories, Polymarket has a more balanced distribution with Sports, Crypto, and Politics making up 38%, 28%, and 17%, respectively, of last week’s volumes.&nbsp;



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="802" height="468" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-157.png" alt="" class="wp-image-110139" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-157.png?w=802 802w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-157.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-157.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-157.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-157.png?w=447 447w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-157.png?w=375 375w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-157.png?w=80 80w" sizes="auto, (max-width: 802px) 100vw, 802px" /></figure>



On Kalshi, Sports is the clear story, with 85.5% of weekly volumes coming from that category. Regardless of platform, it is now undeniable that Sports is becoming the primary driver of prediction market growth.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="801" height="468" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-158.png" alt="" class="wp-image-110143" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-158.png?w=801 801w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-158.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-158.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-158.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-158.png?w=447 447w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-158.png?w=375 375w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-158.png?w=80 80w" sizes="auto, (max-width: 801px) 100vw, 801px" /></figure>



One protocol well positioned to benefit from this trend is Sire, which we covered in a <a href="https://app.blockworksresearch.com/research/sire-and-score-where-ai-meets-prediction-markets">research piece</a> recently. Sire functions as an onchain sports betting hedge fund that captures inefficiencies in sports odds. It does this by using Score Subnet’s AI models that extract alpha directly from gameplay footage. In the last 32 days, the agent has executed <a href="https://x.com/Kunallegendd/status/1992942075189588425?s=20">$267,700</a> in volume on an initial vault size of $500,000, with an average win rate of <a href="https://x.com/Kunallegendd/status/1992942075189588425?s=20">58%</a> and weekly returns on traded volume near <a href="https://x.com/Kunallegendd/status/1992942075189588425?s=20">10%</a>.



What is clear is that this market is just getting started. With FanDuel <a href="https://press.fanduel.com/press-releases/fanduel-and-cme-group-unveil-new-prediction-markets-platform-to-launch-in-december">preparing</a> to launch its own prediction product, the next phase will reveal whether this becomes a winner-take-all environment or whether different platforms carve out their own niches in Sports, Crypto and beyond.



<h2 class="wp-block-heading">How Neutrl is cracking open the OTC market</h2>



Amid the ups and downs of the market, innovative protocols continue to emerge, and one that has stood out to me recently is <a href="https://www.neutrl.fi/">Neutrl</a>. It introduced NUSD, a synthetic dollar built on top of OTC arbitrage, funding rate inefficiencies and market neutral strategies. These sources of yield usually sit behind OTC desks or require constant hands-on management, but Neutrl wraps them into a product that everyday users can access.



Around 20% of deposits are deployed into hedged OTC positions. Neutrl acquires discounted locked tokens from early investors, foundations or teams, then hedges them in perps markets to capture the spread. Discounts vary depending on the lockup period, and can reach well above 50%.



<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="1280" height="805" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image.jpeg?w=1024&amp;h=1024" alt="" class="wp-image-110140" style="width:728px;height:auto" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image.jpeg?w=1280 1280w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image.jpeg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image.jpeg?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image.jpeg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image.jpeg?w=409 409w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image.jpeg?w=415 415w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image.jpeg?w=348 348w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image.jpeg?w=80 80w" sizes="auto, (max-width: 1280px) 100vw, 1280px" /></figure>



This strategy benefits from the supply overhang in crypto markets and performs best in bearish periods when locked token holders under pressure are willing to accept deeper discounts just to access liquidity.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="1040" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-1.jpeg?w=1024&amp;h=1024" alt="" class="wp-image-110144" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-1.jpeg?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-1.jpeg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-1.jpeg?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-1.jpeg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-1.jpeg?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-1.jpeg?w=395 395w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-1.jpeg?w=402 402w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-1.jpeg?w=337 337w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-1.jpeg?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /><figcaption class="wp-element-caption">Source: https://app.stix.co/listings</figcaption></figure>







60% of the portfolio runs delta neutral strategies similar to the ones popularized by Ethena. These strategies hold spot exposure while shorting perpetuals to collect funding payments and basis spreads. The remaining share of the portfolio is held in liquid reserves such as USDC, USDT and USDe, which supports redemptions and cushions volatility.



The strategy seems to be working. Based on Neutrl’s first epoch results, the effective APY sits at 16.58%, compared with <a href="https://app.ethena.fi/dashboards/market-data">5.12%</a> on sUSDe. The difference comes from the OTC component, where the unrealized APR on deployed capital currently sits at <a href="https://x.com/behrin/status/1991491863317213536?s=20">42%</a>. OTC yield is proving to be a powerful source of return, especially in an environment where buyers can negotiate steep discounts.



<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="1600" height="1398" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-160.png?w=1024&amp;h=1024" alt="" class="wp-image-110142" style="width:550px;height:auto" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-160.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-160.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-160.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-160.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-160.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-160.png?w=294 294w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-160.png?w=299 299w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-160.png?w=251 251w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-160.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



The protocol launched on Plasma in October and the initial deposit cap of $50 million was filled in 20 minutes, which prompted the team to raise the cap by $25 million a few days after. Since removing the caps on Nov. 10, total <a href="https://app.neutrl.fi/metrics">deposits</a> now sit at $125 million. Beyond yield, depositors accumulate XPL incentives, Neutrl Points and UpShift points. With NUSD set to integrate with Pendle, speculation around point values could increase TVL further.



Neutrl benefits from a team with experience across both TradFi and DeFi, and it is backed by STIX, one of the largest OTC desks in the industry. That relationship likely gives Neutrl preferred access to locked token flow. Still, no strategy comes without risk. The main concern is the management of the short legs of these trades, especially in the event of auto deleveraging on perp platforms, which could leave the protocol with a naked long position. There is also the question of how scalable returns will remain as TVL grows.



Even with these uncertainties, Neutrl is one of the more compelling protocols I’ve come across in the last six months, and one worth keeping an eye on as it scales.



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Prediction markets surge to new highs as Neutrl unlocks hidden yield

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Markets bounced as December rate cut odds swung back above 80%, lifting BTC, equities and gold. In crypto, MegaETH, one of the industry’s more beloved projects, had a slight problem with its predeposit program yesterday.



<h2 class="wp-block-heading">Indices</h2>



Markets tilted risk-on in the latest session, with most major crypto-adjacent sectors posting gains even as BTC (-1.1%) softened slightly. Traditional benchmarks were steady as the S&amp;P 500 eked out a small move higher (+0.9%), while Gold (+0.7%) and the Nasdaq 100 (+0.5%) saw modest strength. Overall tone skewed constructive, led by thematic crypto sectors rather than broad-based flows.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="837" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-153.png?w=1024&amp;h=1024" alt="" class="wp-image-110128" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-153.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-153.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-153.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-153.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-153.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-153.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-153.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-153.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-153.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



Crypto sector indices showed a clear rotation into high-beta themes. AI was the standout performer, ripping +6.3% on the day, followed by strong moves across RWA (+4.9%) and Crypto Miners (+4.4%). On the downside, Modular networks lagged sharply (-1.7%), followed by Meme (-1.3%) and High-FDV Low-Rev tokens (-1.0%), signaling selective risk-taking rather than a wholesale chase across the curve.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="833" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-155.png?w=1024&amp;h=1024" alt="" class="wp-image-110130" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-155.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-155.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-155.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-155.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-155.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-155.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-155.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-155.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-155.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



The moves fit a familiar narrative as investors gravitate toward sectors with strong storytelling momentum, such as AI, RWA, and miners (also AI), while trimming from overextended or lower-quality pockets of the market. With BTC drifting sideways and macro catalysts sparse, sector dispersion continues to dominate short-term performance.



<h2 class="wp-block-heading">Market Update: Klarna</h2>



Klarna announcing KlarnaUSD on <a href="https://blockworks.co/news/tempo-stripe-paradigm-planned-l1">Tempo</a> (the new Stripe/Paradigm payments chain) is a clean validation of the “stablecoin rail-replacement” trade that’s been building behind the scenes. With McKinsey pegging stablecoin settlement at <a href="https://www.mckinsey.com/industries/financial-services/our-insights/the-stable-door-opens-how-tokenized-cash-enables-next-gen-payments">$27 trillion</a> annually, the narrative is shifting from speculative infra to industrial-scale payments plumbing. Klarna’s 114 million users and $118 billion GMV aren’t crypto-native flow, but they’re exactly the kind of volume that can reshape onchain settlement curves once mainnet access opens. This initiative could help improve its weak stock performance by cutting payment costs and opening new revenue streams through faster, cheaper global transactions. It also signals innovation and business-model diversification, which may boost investor confidence after a period of poor market sentiment.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-154.png?w=1024&amp;h=1024" alt="" class="wp-image-110129" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-154.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-154.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-154.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-154.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-154.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-154.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-154.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-154.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-154.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



Tempo’s positioning as a purpose-built payments L1 (low latency, predictable fees, Stripe-grade compliance rails) sets up a clear competitive lane vs. Solana/ETH L2s on consumer payments. A Stripe + Klarna distribution stack is a real threat — not only to crypto protocols, but to entities working on the $120 billion cross-border segment that Klarna is explicitly hunting. The interesting angle is that KlarnaUSD is built via Bridge’s Open Issuance, keeping issuance modular and likely multichain over time.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="900" height="506" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-150.png" alt="" class="wp-image-110125" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-150.png?w=900 900w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-150.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-150.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-150.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-150.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-150.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-150.png?w=80 80w" sizes="auto, (max-width: 900px) 100vw, 900px" /></figure>



For crypto markets, this reopens the “fintech-stablecoin adoption” trade that last peaked during PayPal’s PYUSD rollout. Watch for rotation into payment-aligned infra, high-throughput chains, issuer infra, compliance middleware and real-world settlement protocols. However, despite the institutional appetite, the regulatory overhang isn’t gone, as a bank-issued stablecoin hitting global distribution will likely trigger scrutiny in both the EU and the US. Either way, watch Tempo ecosystem assets and payment-rail narratives — Klarna just put real enterprise weight behind onchain settlement.



<h2 class="wp-block-heading">Oops</h2>



Yesterday, there was an unfortunate mistake with the MegaETH predeposit process. The predeposit launch failed at first due to an incorrect SaleUUID inside the predeposit contract, which blocked all transactions until a multisig update was executed. Once fixed, Sonar’s KYC service began rejecting traffic because of a misconfigured rate limit, leaving users unable to fund for about 23 minutes. When service resumed, the $250 million cap filled almost instantly from users who had been refreshing the site. The team planned to raise the cap to $1 billion in the next hour, but the transaction was executed about 30 minutes early by chud_eth.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="640" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-152.png?w=1024&amp;h=1024" alt="" class="wp-image-110127" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-152.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-152.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-152.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-152.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-152.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-152.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-152.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-152.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-152.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



Once a Safe transaction has the required signatures, anyone can broadcast/execute it, including someone not on the multisig. Deposits surged again, and the team attempted to control inflows by lowering the cap to $400 million, then $500 million, with the latter taking effect and filling. Because KYC issues were still affecting users, the planned expansion to $1 billion was canceled. A withdrawal page is being prepared for those who want to remove funds.



Despite this unfortunate situation, MegaETH’s USDm experiment seems to have begun! For context, USDm is a partnership between MegaETH and Ethena, and represents Ethena’s first (popular) attempt at offering white-labelled stablecoins. USDm is MegaETH’s native/aligned stablecoin, where underlying Treasury bill yield generated by USDm is set to be used to subsidize gas costs and internalized as revenue.&nbsp;



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1439" height="697" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-151.png?w=1024&amp;h=1024" alt="" class="wp-image-110126" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-151.png?w=1439 1439w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-151.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-151.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-151.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-151.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-151.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-151.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-151.png?w=80 80w" sizes="auto, (max-width: 1439px) 100vw, 1439px" /></figure>



Over the past day, MegaETH generated ~$55,000 in revenue off USDm, putting it in seventh place in terms of highest revenue-generating blockchains. Building out basic primitives on your own chain is a great way for chains to monetize more efficiently, as revenue through transaction fees has proven to be highly volatile and relatively low.



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Klarna steps into stablecoins

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Markets bounced as December rate-cut odds swung back above 80%, lifting BTC, equities and gold.



Monad launched mainnet yesterday, but MON’s day-one listing on Solana and Hyperliquid was arguably the bigger story. Finally, we dive into Galaxy’s investment case, with GLXY allowing investors to express a bullish crypto view while also getting exposure to AI compute infrastructure demand.



<h2 class="wp-block-heading">Indices</h2>



Markets bounced on Monday as odds swung back toward a potential December rate cut. Bitcoin climbed as much as 2.73%, briefly pushing above $89,000 before closing the day at $88,200 (+1.72%). The standout performer, however, was the Nasdaq 100 (+2.22%), posting its strongest daily gain since mid-May. The S&amp;P 500 (+1.20%) also logged its best session in six weeks, while Gold (+1.75%) edged out BTC on the day, closing at its highest level since Nov. 14.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="894" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-144.png?w=1024&amp;h=1024" alt="" class="wp-image-110110" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-144.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-144.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-144.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-144.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-144.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-144.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-144.png?w=467 467w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-144.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-144.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



It seems markets have been hyperfocused on US rate developments over the past two weeks. Yesterday, Fed Governor Waller reiterated that the labor market’s weakness could justify a 25 bps cut in December. The latest dovish comments led to probabilities of a December rate cut rising above 80% on both Polymarket and the CME’s <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">FedWatch Tool</a>.



The chart below shows Polymarket’s odds for the Fed decision in December. Over the past two weeks, odds have swung sharply between a 25 bps cut and no change, underscoring the challenge the market faces in pricing near-term rates in the absence of economic data after the longest US government shutdown recorded.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-145.png?w=1024&amp;h=1024" alt="" class="wp-image-110111" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-145.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-145.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-145.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-145.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-145.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-145.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-145.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-145.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-145.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



Back on the crypto side, most indices outperformed BTC, catching a bid after a tough month for risk assets. The best-performing index was Crypto Miners (+8.4%), with Cleanspark (CLSK) up more than 10% after JP Morgan raised its guidance for the company. Notably, the No Revenue index (+7.9%) was the second-best performer in the cohort, suggesting that investors’ risk appetite may be increasing as macro concerns ease.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="904" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-143.png?w=1024&amp;h=1024" alt="" class="wp-image-110109" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-143.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-143.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-143.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-143.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-143.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-143.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-143.png?w=462 462w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-143.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-143.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



<h2 class="wp-block-heading">Market Update</h2>



Monad went live on mainnet yesterday, almost three years after the team <a href="https://blockworks.co/news/paradigm-leads-monad-parallel-evm-fundraise">first raised</a> in January 2023. <a href="https://app.blockworksresearch.com/research/monad_a-supercharged-evm-layer-1">Monad</a> represents a bold attempt to supercharge the EVM experience from the ground up, introducing a new consensus algorithm, a parallel execution engine, and a custom data architecture. The chain targets 10K+ TPS, 400ms blocks, and 800ms deterministic finality, though it remains to be seen how this fares in production.&nbsp;



While Monad’s architecture may be novel, the fact that it took so long to come to market means it now faces an uphill battle catching up to more mature networks like Solana or even L2s like Base in terms of ecosystem activity, DEX volumes, TVL, stablecoins in circulation and so on. The chart below shows the top applications on Monad by TVL, as of today. The four largest apps are well established players in the EVM ecosystem, with Uniswap v4 topping the cohort with $25 million in TVL.&nbsp;



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-146.png?w=1024&amp;h=1024" alt="" class="wp-image-110112" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-146.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-146.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-146.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-146.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-146.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-146.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-146.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-146.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-146.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



The only “Monad-native” applications in the chart above are Kuru and Neverland.



<a href="https://kuru.io/">Kuru</a> is a DEX with a hybrid order book-AMM design. The platform also offers a DEX aggregator. Kuru hopes to take advantage of Monad’s speed and low fees to provide a venue for market makers to handle liquid assets, while also offering passive liquidity solutions to support long-tail assets. The team raised <a href="https://blog.kuru.io/p/kuru-labs-raises-2-million-seed-round">$2 million</a> in a seed round led by Electric Capital in July 2024.&nbsp;



Neverland is a lending protocol built on Aave v3’s architecture. Per DeFi Llama, the protocol has about $1 million in deposits and $420,000 in borrows. So far, Monad apps are not particularly exciting, but rather things we’ve already seen time and again in other ecosystems (DEXs, money markets, etc.). It will be interesting to monitor if truly innovative apps emerge on the chain over the coming months. Personally, I’m interested to see if<a href="https://x.com/ThogardPvP/status/1963379267871613138"> prop AMMs</a> will be able to thrive on Monad, or if they remain a Solana-only phenomenon.



Perhaps more exciting than Monad’s launch itself was the day-one listing of MON by Solana and Hyperliquid. While Hyperliquid has already supported other high profile launches on day one (e.g., PUMP, XPL, 2Z), it was the first time Solana users were able to trade a non-native asset at launch with relatively deep liquidity. The game changer that allows Solana to be competitive with CEXs and Hyperliquid on this front is prop AMMs combined with hardened bridge infrastructure (e.g. Wormhole).MON trading volumes on Solana have surpassed <a href="https://orb.helius.dev/address/CrAr4RRJMBVwRsZtT62pEhfA9H5utymC2mVx8e7FreP2/markets?cluster=mainnet-beta&amp;sort_by=volume24h&amp;sort_type=desc">$60 million</a> over the past 24 hours, roughly 60% more than Hyperliquid spot ($37 million). When stacked against CEXs, Solana would have been the fifth-largest venue by trading volume, only behind Upbit, Coinbase, Bybit and Bithumb. With xStocks, battle-tested bridge infrastructure and prop AMMs, there is no technical barrier preventing Solana from supporting every relevant asset. While it’s tempting to frame yesterday’s events as Hyperliquid vs. Solana (competition is good), the more important story is onchain, decentralized trading venues gradually outcompeting CEXs over the coming years.



<h2 class="wp-block-heading">Galaxy Digital ($GLXY) Investment Case&nbsp;</h2>



Galaxy Digital (“Galaxy”) is turning into one of the cleanest listed ways to own the institutional build out of crypto markets, while also getting exposure to AI compute infrastructure demand. Here we take a closer look at its business segments in light of the recent selloff. The market still mostly files it as a volatile trading shop, but the mix is shifting toward more durable revenue being at the center of institutional crypto flows and contracted infrastructure income, which should support a more stable earnings profile through the cycle.



Recent results show what the model can earn when conditions are favorable, with the latest quarter delivering about $505 million of net income against $3.2 billion of balance sheet equity. In Q3, earnings mix translated into about $250 million of EBITDA from Digital Assets and $376 million from Treasury and Corporate, with Data Centers still negligible. Investors are buying a scaling digital asset platform with significant crypto and equity holdings, and essentially a call option on AI infrastructure. Earnings will still swing with asset prices and volumes, but the fact that Q3 2025 nearly matches full year 2024’s net income underlines Galaxy’s earnings leverage to a growing digital asset market. <img loading="lazy" decoding="async" src="blob:https://cms.blockworks.co/ce4295fc-6c7b-4ce6-bb87-7b53f1822df0" width="720" height="340">



Galaxy has three key segments.&nbsp;



<ul class="wp-block-list">
<li>About 40% of equity capital sits in Digital Assets, which encompasses Global Markets and Asset Management &amp; Infrastructure Solutions. Global Markets drives most of the earnings here, with its sell-side trading desk (spot and derivative OTC, lending, structured products), coupled with the investment banking arm, adding M&amp;A advisory and equity and debt capital markets fees. Asset Management &amp; Infrastructure Solutions earns fee income from active and passive investment products, crypto services, and staking and custody solutions that offer clients customized exposure and stronger security. </li>



<li>35% of equity capital sits in Treasury and Corporate, which manages Galaxy’s own portfolio of digital assets and strategic equity stakes, so Q3’s profit reflects mark to market gains of those holdings. </li>



<li>The remaining 25% is tied to Data Centers, mainly the Helios build in Texas, which is effectively pre-revenue today but is expected to generate contracted rent from 2026 with CoreWeave its anchor tenant. Phase I targets delivery of 133 MW of contracted critical IT load by 1H26, with capacity rising to 526 MW when Phase III is completed in 2028.</li>
</ul>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1225" height="543" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-149.png?w=1024&amp;h=1024" alt="" class="wp-image-110117" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-149.png?w=1225 1225w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-149.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-149.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-149.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-149.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-149.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-149.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-149.png?w=80 80w" sizes="auto, (max-width: 1225px) 100vw, 1225px" /></figure>



GalaxyOne is Galaxy’s consumer platform for US individual investors, bundling high yield cash, premium yield notes, and simple-crypto and US-equity trading in one app. If it scales, it can grow fee and spread income on client balances, provide cheaper and stickier funding for the trading and lending book, and create a direct funnel into Galaxy asset management and staking products. In big picture terms, it is a way for Galaxy to capture more of the economics of retail flows instead of relying only on institutional clients.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1229" height="550" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-148.png?w=1024&amp;h=1024" alt="" class="wp-image-110116" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-148.png?w=1229 1229w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-148.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-148.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-148.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-148.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-148.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-148.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-148.png?w=80 80w" sizes="auto, (max-width: 1229px) 100vw, 1229px" /></figure>



Galaxy is also putting its Class A common shares onchain on Solana in partnership with Superstate, creating fully SEC registered tokenized stock that trades and settles on a blockchain. That is less about near-term earnings and more about proving out tokenized capital markets, giving them a live case study to sell to issuers, funds and banks who want to bring other securities onchain. Supply of onchain GLXY can be tracked with this <a href="https://dune.com/glxyresearch_team/glxy-class-a-common-stock-token">Dune dashboard</a>.&nbsp;



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1100" height="599" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-147.png?w=1024&amp;h=1024" alt="" class="wp-image-110115" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-147.png?w=1100 1100w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-147.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-147.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-147.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-147.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-147.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-147.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-147.png?w=80 80w" sizes="auto, (max-width: 1100px) 100vw, 1100px" /></figure>



Galaxy is still a high beta way to express a bullish crypto view, with trading and principal investing a big swing factor, but it offers a cleaner way to play the broader adoption theme than a single coin. There is regulatory risk with the evolving political environment, meaningful execution risk around Helios delivering its planned AI leasing economics, and GalaxyOne gaining real traction in a competitive consumer market.



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Monad ships mainnet, while markets rebound

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Crypto opened the week with uneven signals. BTC gained +2.5%, but application and network revenues hit multi-month lows, and BTC ETFs saw their fourth-straight week of outflows. While AI and DePIN jumped +9%, broader activity remains soft, highlighting a market still searching for conviction.



<h2 class="wp-block-heading">Indices</h2>



Risk assets leaned modestly risk-on, with BTC (+2.5%) posting a steady gain while traditional equities lagged, as both the S&amp;P 500 (-0.1%) and Nasdaq 100 (-0.1%) slipped slightly. Gold (+0.1%) was essentially flat, reflecting a muted macro backdrop. Overall tone skewed constructive, driven largely by strength across crypto-native sectors.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="832" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-142.png?w=1024&amp;h=1024" alt="" class="wp-image-110101" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-142.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-142.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-142.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-142.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-142.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-142.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-142.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-142.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-142.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



Over the last 36 hours, crypto sector breadth was notably strong. DePIN (+9.0%) and AI (+9.0%) led the board, continuing their multi-week momentum as investors rotate toward higher-beta thematic plays. DeFi (+4.2%) followed alongside solid showings from Ethereum-aligned assets (+3.5%). On the downside, Modular (-1.7%) was the only meaningful decliner, marking a sharp divergence from the otherwise broad green sweep.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="849" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-139.png?w=1024&amp;h=1024" alt="" class="wp-image-110099" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-139.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-139.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-139.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-139.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-139.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-139.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-139.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-139.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-139.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



The dispersion suggests a clear preference for high-growth, high-narrative segments rather than broad-based macro buying. AI and DePIN’s outsized moves (both +9%) signal renewed speculative appetite in infrastructure and computation themes as traders position ahead of upcoming macro releases. With equities pausing and volatility suppressed, crypto remains the higher-beta expression of incremental risk-taking. Looking ahead, attention turns to this week’s macro catalysts, which could dictate whether BTC’s grind follows through or stalls. Sector rotation remains active, suggesting volatility may pick back up as positioning normalizes.



<h2 class="wp-block-heading">Charts for The Week</h2>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1124" height="624" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-140.png?w=1024&amp;h=1024" alt="" class="wp-image-110100" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-140.png?w=1124 1124w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-140.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-140.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-140.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-140.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-140.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-140.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-140.png?w=80 80w" sizes="auto, (max-width: 1124px) 100vw, 1124px" /></figure>



Overall, application revenue was down 11% week over week from $49 million to $43.5 million — the lowest weekly revenue since March 2025. Hyperliquid continues to lead in terms of application revenue, making $18.5 million over the past week (up 8%), followed by pump.fun, which made $7.7 million (down 22%). Ore took third place for the first time, generating $2.3 million in the last week.&nbsp;



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1124" height="624" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-137.png?w=1024&amp;h=1024" alt="" class="wp-image-110097" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-137.png?w=1124 1124w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-137.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-137.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-137.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-137.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-137.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-137.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-137.png?w=80 80w" sizes="auto, (max-width: 1124px) 100vw, 1124px" /></figure>



Weekly Network REV has been faring even worse, with the last two prints (both around $29.5 million) the lowest since 2022. Ethereum took top spot ($8.9 million), a position it’s been in and out of for the past few weeks. Solana remains in third with $5.1 million (down 15%) and Tron in second with $6.3 million (down 12.5%). Solana was the market leader in only one of the last seven weeks, after holding top spot for months in a row.&nbsp;



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1124" height="624" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-138.png?w=1024&amp;h=1024" alt="" class="wp-image-110098" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-138.png?w=1124 1124w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-138.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-138.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-138.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-138.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-138.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-138.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-138.png?w=80 80w" sizes="auto, (max-width: 1124px) 100vw, 1124px" /></figure>



Over the four weeks, US spot bitcoin ETFs have seen consistent net outflows, with each of the last three weekly bars recording over $1 billion in withdrawn funds. IBIT has been responsible for the largest share of redemptions, while smaller but steady outflows also appear across funds like FBTC, BITB and ARKB. Overall, the trend reflects sustained investor derisking, with cumulative withdrawals building into late November.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="832" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-142.png?w=1024&amp;h=1024" alt="" class="wp-image-110103" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-142.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-142.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-142.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-142.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-142.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-142.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-142.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-142.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-142.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



Nubank is one of the world’s largest digital financial services platforms, operating in Latin America with over 127 million customers as of Q3 2025. Nubank has an impressive activity ratio of 83%, and like many neobanks, has no physical branches. The company has become a major crypto gateway with 6.6 million crypto users (up 42% YoY) and transaction volumes jumping 250% after eliminating exchange fees. Future initiatives include a US bank charter application and a pilot for dollar-pegged stablecoin payments (<a href="https://app.blockworksresearch.com/research/the-nu-era-of-banking">Read more</a>).



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1600" height="900" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-141.png?w=1024&amp;h=1024" alt="" class="wp-image-110102" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-141.png?w=1600 1600w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-141.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-141.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-141.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-141.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-141.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-141.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-141.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2025/11/image-141.png?w=80 80w" sizes="auto, (max-width: 1600px) 100vw, 1600px" /></figure>



Survey data confirms user awareness of these threats. Among respondents to our survey, 88% identify connecting to malicious sites as their primary concern, compared to 77% citing smart contract vulnerabilities. These results show that the market recognizes that frontend attacks are a significant threat vector (<a href="https://app.blockworksresearch.com/research/securing-de-fi-frontend-security-infrastructure-and-user-behavior-in-web3-applications">read more</a>).



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