Yuga exec warns about ‘true bear market’ Ether price as whales scramble
Yuga Labs’ vice president of blockchain warned that Ether could drop as low as $200 in a prolonged bear market, a 90% decline from its current price.In a March 11 post on X, the executive, known as “Quit,” pushed back against analysts who suggested $1,500 as the possible bottom for Ether (ETH). Instead, Quit argued that a true bear market could see ETH fall significantly lower, similar to previous market cycles.“A true bear market target, if we’re just getting started, would be ~$200-$400. That’s an 80% drawdown from here, 90% total drawdown — in line with past bear markets.”The executive said he’s in a “comfortable” position if things go south. Quit told followers to consider selling their stash if they’re uncomfortable with the asset going down. Source: QuitETH holders discuss potential price trajectoryQuit’s post drew mixed reactions from the crypto community. Some investors agreed that ETH could drop further, while others said such a scenario would require a major systemic collapse.One X user said they set $1,800 as the bottom. However, when the price reached $1,800, they contemplated whether it could go to $1,200. The ETH holder agreed with Quit’s prediction and said, “It could very well go lower” if Bitcoin (BTC) goes to $66,000.Meanwhile, another X user disagreed with the prediction, saying it would only be possible if there were a systemic collapse similar to 2018. The ETH investor said that, unlike previous cycles, Ether has been adopted by institutions and has a maturing ecosystem. “Positioning for both scenarios is what every smart investor should done, but being too bearish at the wrong time can cost just as much as being overly bullish,” they wrote.Related: 4 things must happen before Ethereum can reclaim $2,600ETH whales scramble against liquidation threatQuit’s sentiments came as ETH whales scrambled to avoid liquidation as Ether prices collapsed. On March 11, CoinGecko data showed that ETH prices went to a low of $1,791 on a 22% decline in the past seven days. Because of the sharp price changes, ETH whales moved millions of dollars in ETH to protect their positions against potential liquidation. Blockchain analytics firm Lookonchain flagged an ETH whale dumping $47.8 million and losing $32 million to avoid being liquidated. The whale still has over $64 million at the lending protocol Aave with a liquidation price of $1,316. Another ETH investor who had already used over $5 million in assets to lower the liquidation price to $1,836 started to be liquidated. Lookonchain said the whale’s $121 million balance was being liquidated as the price dropped below $1,800. A whale account suspected of being linked to the Ethereum Foundation also used $56 million in ETH to avoid liquidation amid the price drop. The address deposited over 30,000 ETH to the Sky vault, bringing its liquidation price to $1.127.14. The account was later determined to be unrelated to the foundation. Magazine: ETH whale’s wild $6.8M ‘mind control’ claims, Bitcoin power thefts: Asia Express
3 reasons XRP might drop to $1.60 in March
The XRP (XRP) daily chart registered its lowest candle close in 99 days on March 10. The altcoin dropped below the $2 support level but registered a short-term recovery of 12% on March 11. XRP 1-hour chart. Source: Cointelegraph/TradingViewOn the high time frame (HTF) charts, XRP must hold above its psychological level at $2, but other metrics suggest that a deeper drawdown is possible. XRP markets lack buyers as futures flip bearishXRP price is currently down 37.1% from its all-time high of $3.40. When prices dipped by a similar percentage on Feb. 3, spot market bids quickly absorbed the selling pressure, pushing XRP above $2.50. XRP’s spot and perpetual aggregated data. Source: aggr.tradeHowever, XRP‘s spot and perpetual markets were relatively bearish over the past week. Data from aggr.trade indicates that XRP’s spot cumulative volume delta (CVD) dropped by 50% in March. A negative CVD means that there is more selling volume than buying. The current CVD value is -$408 million, which signals waning demand, with sellers taking control.Likewise, futures traders are also turning bearish, with perpetual CVD dropping to -1.18 billion on March 11. XRP’s open interest-weighted funding rate has also turned significantly negative, which indicates more short positions were added over the past few days. XRP funding rate chart. Source: CoinGlassXRP whales continue selling spreeXRP’s volume bubble map showed a surge in activity toward the end of February. Ki-Young Ju, CryptoQuant founder, observed that this uptick aligned with an ongoing distribution phase for XRP. Distribution refers to a period in the market cycle when large investors slowly offload their positions to secure gains, usually happening close to the peak of an upward trend.Related: Why is the XRP price down today?Current data reveals that the distribution phase has intensified over the past seven days. Specifically, whale outflows, measured as a 30-day moving average, have steadily risen. This increase suggests that large holders continued to offload their XRP positions, further driving the distribution trend.XRP total whale flows. Source: CryptoQuantBetween March 4 and March 10, these large XRP holders offloaded roughly $838 million in positions. This significant sell-off reflects the ongoing bearish trend for XRP.XRP price H&S pattern hints at $1.60 retestOn March 11, XRP’s 1-day chart closed below $2.05, which is the critical neckline of the daily head-and-shoulders pattern. This pattern has potentially strong bearish consequences when observed on a high time frame (HTF) chart. XRP 1-day chart. Source: Cointelegraph/TradingViewLower prices are likely if XRP fails to reclaim $2.05 as support, as illustrated in the chart above. The immediate target zone for the XRP price remains between 0.5 and 0.618 Fibonacci retracement lines. Also known as the “golden zone,” the retest range lies between $1.90 and $1.60. The likelihood of retesting the 0.618 Fibonacci or $1.60 is high in the current bearish environment.Failure to hold this range could lead to a retest of the long-term demand zone between $1.58 and $1.27.This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Is altseason dead? Bitcoin ETFs rewrite crypto investment playbook
Bitcoin exchange-traded products may have fundamentally altered the concept of a crypto “altseason.”For years, the crypto market followed a familiar rhythm, a near-predictable dance of capital rotation. Bitcoin (BTC) surged, bringing mainstream attention and liquidity, and then the floodgates opened to altcoins. Speculative capital rushed into lower-cap assets, inflating their values in what traders euphorically deemed “altseason.”However, once taken for granted, this cycle shows signs of a structural collapse. Spot Bitcoin exchange-traded funds (ETFs) have shattered records, funneling $129 billion in capital inflows in 2024. This has provided unprecedented access to Bitcoin for both retail and institutional investors, yet it has also created a vacuum, sucking capital away from speculative assets. Institutional players now have a safe, regulated way to gain exposure to crypto without the Wild West risks of the altcoin market. Many retail investors are also finding ETFs more appealing than the perilous hunt for the next 100x token. Well-known Bitcoin analyst Plan B even traded in his actual BTC for a spot ETF. The shift is happening in real time, and if the capital remains locked in structured products, altcoins face a diminishing share of market liquidity and relevance. Is the altseason dead? The rise of structured crypto exposureBitcoin ETFs offer an alternative to chasing high-risk, low-cap assets, as investors can access leverage, liquidity and regulatory clarity through structured products. The retail crowd, once a major driver of altcoin speculation, now has direct access to Bitcoin and Ether (ETH) ETFs, vehicles that eliminate self-custody concerns, mitigate counterparty risk and align with traditional investment frameworks. Institutions have even greater incentives to sidestep altcoin risk. Hedge funds and professional trading desks, which once chased higher returns in low-liquidity altcoins, can deploy leverage through derivatives or take exposure via ETFs on legacy financial rails. Related: BlackRock adds BTC ETF to $150B model portfolio productWith the ability to hedge through options and futures, the incentive to gamble on illiquid, low-volume altcoins diminishes significantly. This has been further reinforced by the record $2.4 billion in outflows in February and arbitrage opportunities created by ETF redemptions, forcing a level of discipline into crypto markets that did not previously exist.The traditional “cycle” starts with Bitcoin and moves to an altseason. Source: Cointelegraph ResearchWill venture capital abandon crypto startups?Venture capital (VC) firms have historically been the lifeblood of alt seasons, injecting liquidity into nascent projects and spinning grand narratives around emerging tokens. However, with leverage being easily accessible and capital efficiency a key priority, VCs are rethinking their approach. VCs strive to make as much return on investment (ROI) as possible, but the typical range is between 17% and 25%. In traditional finance, the risk-free rate of capital serves as the benchmark against which all investments are measured, typically represented by US Treasury yields. In the crypto space, Bitcoin’s historical growth rate functions as a similar baseline for expected returns. This effectively becomes the industry’s version of the risk-free rate. Over the last decade, Bitcoin’s compound annual growth rate (CAGR) over the past 10 years has averaged 77%, significantly outperforming traditional assets like gold (8%) and the S&P 500 (11%). Even over the past five years, including both bull and bear market conditions, Bitcoin has maintained a 67% CAGR. Using this as a baseline, a venture capitalist deploying capital in Bitcoin or Bitcoin-related ventures at this growth rate would see a total ROI of approximately 1,199% over five years, meaning the investment would increase nearly 12x. Related: Altcoin ETFs are coming, but demand may be limited: AnalystsWhile Bitcoin remains volatile, its long-term outperformance has positioned it as the fundamental benchmark for evaluating risk-adjusted returns in the crypto space. With arbitrage opportunities and reduced risk, VCs may play the safer bet. In 2024, VC deal counts dropped 46%, even as overall investment volumes rebounded in Q4. This signals a shift toward more selective, high-value projects rather than speculative funding. Web3 and AI-driven crypto startups are still drawing attention, but the days of indiscriminate funding for every token with a white paper may be numbered. If venture capital pivots further toward structured exposure through ETFs rather than a direct investment in risky startups, the consequences could be severe for new altcoin projects.Meanwhile, the few altcoin projects that have made it onto institutional radars — such as Aptos, which recently saw an ETF filing — are exceptions, not the rule. Even crypto index ETFs, designed to capture broader exposure, have struggled to attract meaningful inflows, underscoring that capital is concentrated rather than dispersed.The oversupply problem and the new market realityThe landscape has shifted. The sheer number of altcoins vying for attention has created a saturation problem. According to Dune Analytics, over 40 million tokens are currently on the market. 1.2 million new tokens were launched on average per month in 2024, and over 5 million have been created since the start of 2025.With institutions gravitating toward structured exposure and a lack of retail-driven speculative demand, liquidity is not trickling down to altcoins as it once did.This presents a hard truth: Most altcoins will not make it. The CEO of CryptoQuant, Ki Young Ju, recently warned that most of these assets are unlikely to survive without a fundamental shift in market structure. “The era of everything pumping is over,” Ju said in a recent X post. The traditional playbook of waiting for Bitcoin dominance to wane before rotating into altcoins may no longer apply in an era where capital stays locked in ETFs and perps rather than free-flowing into speculative assets.The crypto market is not what it once was. The days of easy, cyclical altcoin rallies may be replaced by an ecosystem where capital efficiency, structured financial products and regulatory clarity dictate where the money flows. ETFs are changing how people invest in Bitcoin and fundamentally altering liquidity distribution across the entire market.For those who built their strategies on the assumption that an altcoin boom would follow every Bitcoin rally, the time may have come to reconsider. The rules may have changed as the market has matured.Magazine: SEC’s U-turn on crypto leaves key questions unansweredThis article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Bitcoin $70K retracement part of ‘macro correction’ within bull market: analysts
Bitcoin’s potential retracement to $70,000 may be an organic part of the current bull market, despite crypto investor concerns of an early arrival of a bear market cycle.Bitcoin (BTC) fell more than 14% during the past week to close around $80,708 after investors were disappointed with the lack of direct federal Bitcoin investments in President Donald Trump’s March 7 executive order that outlined a plan to create a Bitcoin reserve using cryptocurrency forfeited in government criminal cases.Despite the drop in investor sentiment, cryptocurrencies and global markets remain in a “macro correction” as part of the bull market, according to Aurelie Barthere, principal research analyst at the Nansen crypto intelligence platform.BTC/USD, 1-month chart. Source: CointelegraphMost cryptocurrencies have broken key support levels, making it hard to estimate the next key price levels, the analyst told Cointelegraph, adding:“This is a macro correction (US tech will be down by 3% in the future, as discussed), so we have to monitor BTC. Next level will be $71,000 – $72,000, top of the pre-election trading range.”“We are still in a correction within a bull market: Stocks and crypto have realized and are pricing; a period of tariff uncertainty and fiscal cuts, no Fed put. Recession fears are popping up,” added the analyst.Other analysts have also warned that Bitcoin may experience a deeper retracement toward the “low $70,000’s range, which may “provide a foundation for a more sustainable recovery,” Iliya Kalchev, dispatch analyst at digital asset investment platform Nexo, told Cointelegraph.Related: Bitcoin reserve backlash signals unrealistic industry expectationsBitcoin’s 36% correction to $70,000 “normal” for a bull market: Arthur HayesBitcoin’s potential retracement to the $70,000 psychological mark would still fall within the regular price movement of a bull market, according to Arthur Hayes, co-founder of BitMEX and chief investment officer of Maelstrom.Hayes wrote in a March 11 X post:“Be fucking patient. $BTC likely bottoms around $70k. 36% correction from $110k ATH, v normal for a bull market.”Source: Arthur Hayes“Then we get Fed, PBOC, ECB, and BOJ all easing to make their country great again,” added Hayes, referring to quantitative easing, a monetary policy where central banks increase the money supply by buying government bonds and other financial assets.Related: Bitcoin may benefit from US stablecoin dominance pushQuantitative easing has historically been positive for Bitcoin price.Bitcoin’s price rose over 1,050% during the last quantitative easing period, from just $6,000 in March 2020 to $69,000 by November 2021, after the Federal Reserve’s quantitative easing policy was announced during the COVID-19 pandemic on March 23, 2020, buying over $4 trillion worth of assets such as treasuries.BTC/USD, 1-week chart, 2020-2021. Source: Cointelegraph/TradingViewAnalysts remained optimistic about Bitcoin’s price trajectory for late 2025, with price predictions ranging from $160,000 to above $180,000.Magazine: SCB tips $500K BTC, SEC delays Ether ETF options, and more: Hodler’s Digest, Feb. 23 – March 1
Bitcoin price bounces 4% as data gives '89% chance' stocks bottom is in
Bitcoin (BTC) rebounded above $81,000 on March 11 as US stocks’ futures sought relief from a brutal sell-off.BTC/USD 1-hour chart. Source: Cointelegraph/TradingViewBTC price bounces back amid calls for short squeezeData from Cointelegraph Markets Pro and TradingView showed daily BTC price gains approaching 4%.New four-month lows had accompanied the previous day’s Wall Street trading session as recession fears sent risk-asset investors fleeing.The S&P 500 and Nasdaq Composite Index finished the day down 2.7% and 4%, respectively. At the time of writing, Nasdaq 100 futures had recovered around 0.4% from a trip to their lowest levels since September 2024.Commenting, trading resource The Kobeissi Letter suggested that markets had entered an unsustainable downtrend.“Are we overdue for a massive short squeeze?” it queried in a thread on X, noting risk-asset sentiment in “extreme fear” territory.“Even bears who are calling for a prolonged bear market would need to see some relief rallies. Markets do not move in a straight-line long-term. Eventually, a (tradable) short squeeze is inevitable.”Nasdaq 100 futures 1-day chart. Source: Cointelegraph/TradingViewKobeissi and others referenced unusually high readings from the VIX volatility index while making the case for a sustained recovery.“$VIX has only been higher 11% of the time, going back to 1990,” network economist Timothy Peterson, creator of several Bitcoin price forecasting tools, continued.“Put another way, there is an 89% chance that today was the bottom.”VIX volatility index. Source: Timothy Peterson/XBitcoin analysis sees “very rough time” aheadBitcoin thus saw some much-needed upside on short timeframes after reaching $76,600 on Bitstamp.Related: Biggest red weekly candle ever: 5 things to know in Bitcoin this week“$BTC just had a bullish divergence on the 4H timeframe,” trader Cas Abbe said while analyzing relative strength index (RSI) signals. “I’m not saying this is the reversal but a short-term pump looks imminent now.”BTC/USD 4-hour chart with RSI data. Source: Case Abbe/XPreviously, trader and analyst Rekt Capital told X followers to watch for similar RSI cues from the daily chart to confirm a more sustainable BTC price comeback.Zooming out, other popular crypto market participants remained gloomy. Among them was the pseudonymous X trader HTL-NL, who concluded that BTC/USD was unlikely to match all-time highs.BTC/USDT 1-day chart. Source: HTL-NL/X“Before anyone of you think this is specifically happening in crypto: it’s not,” another of his latest posts said alongside a chart of S&P 500 futures. “It happens to all risk off assets. It’s called a recession probably. US is in for a very tough time.”S&P 500 futures 1-day chart. Source: HTL-NL/XThis article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
What is yield farming in decentralized finance (DeFi)?
What is yield farming? Yield farming, also known as liquidity mining, is a decentralized finance (DeFi) strategy where cryptocurrency holders lend or stake their assets in various DeFi protocols to earn rewards. These rewards often come in the form of additional tokens, interest or a share of transaction fees generated by the platform. In the yield farming ecosystem, individuals known as liquidity providers (LPs) supply their assets to liquidity pools, smart contracts that facilitate trading, lending or borrowing on DeFi platforms.By contributing to these pools, LPs enable the smooth operation of decentralized exchanges (DEXs) and lending platforms. In return for their participation, LPs earn rewards, which may include:Transaction fees: A portion of the fees generated from trades or transactions within the pool.Interest payments: Earnings from lending assets to borrowers.Governance tokens: Native tokens of the platform that often grant voting rights on protocol decisions and can appreciate in value.Key components of yield farmingLiquidity pools: These are collections of funds locked in smart contracts that provide liquidity for decentralized trading, lending or other financial services. Users deposit their assets into these pools, enabling various DeFi functions.Automated market makers (AMMs): AMMs are protocols that use algorithms to price assets within liquidity pools, allowing for automated and permissionless trading without the need for a traditional order book.Governance tokens: Tokens distributed to users as rewards for participating in the protocol. These tokens often grant holders the right to vote on changes to the protocol, influencing its future direction.Yield farming vs. traditional financial yield mechanismsYield farming in DeFi differs significantly from traditional financial yield mechanisms:Accessibility: DeFi platforms are typically open to anyone with an internet connection, removing barriers associated with traditional banking systems.Potential returns: While traditional savings accounts offer relatively low interest rates, yield farming can provide substantially higher returns. However, these higher yields come with increased risks, including market volatility and smart contract vulnerabilities.Intermediaries: Traditional finance relies on centralized institutions to manage funds and transactions. In contrast, DeFi operates on decentralized protocols, reducing the need for intermediaries and allowing users to retain control over their assets. Is yield farming profitable in 2025? As of February 2025, yield farming remains a profitable strategy, though it is less lucrative than in previous years due to reduced token incentives and heightened competition among liquidity providers. That being said, the DeFi sector continues to expand rapidly, with the total value locked (TVL) reaching $129 billion in January 2025, reflecting a 137% year-over-year increase.Projections suggest that this figure could escalate to over $200 billion by the end of 2025, driven by advancements in liquid staking, decentralized lending and stablecoins.This growth, fueled by innovations in liquid staking, decentralized lending and stablecoins, is creating new and potentially lucrative yield farming opportunities.Moreover, the macroeconomic environment plays a crucial role in shaping DeFi yields. In 2024, the US Federal Reserve implemented rate cuts, lowering its policy rate by half a percentage point for the first time in four years. This monetary easing has historically increased the attractiveness of DeFi platforms, as lower traditional savings rates drive investors toward alternative high-yield opportunities. As a result, despite overall yield compression, some DeFi platforms still offer double-digit annual percentage yields (APYs), far surpassing traditional financial instruments.However, note that yield farming isn’t just about earning passive income — it’s a cycle of reinvesting rewards to maximize gains. Farmers earn tokens as rewards and often reinvest them into new liquidity pools, creating a fast-moving loop of capital flow or token velocity. This cycle helps DeFi grow by keeping liquidity high, but it also introduces risks. If new users stop adding funds, some farming schemes can collapse like a Ponzi structure, relying more on fresh liquidity than on real value creation. How does yield farming work? Embarking on yield farming within the DeFi ecosystem can be a lucrative endeavor. This step-by-step guide will assist you in navigating the process, from selecting a platform to implementing effective risk management strategies.Step 1: Choosing a platformSelecting the right DeFi platform is crucial for a successful yield farming experience. Established platforms such as Aave, Uniswap and Compound are often recommended due to their reliability and user-friendly interfaces.Additionally, platforms such as Curve Finance, which specializes in stablecoin trading with low fees and minimal slippage, and PancakeSwap, operating on the BNB Smart Chain (BSC), which offers lower transaction fees and a variety of yield farming opportunities, are also worth considering.Step 2: Selecting a liquidity poolWhen selecting a liquidity pool for yield farming, it’s essential to evaluate the tokens involved, the pool’s historical performance and the platform’s credibility to mitigate risks, such as impermanent loss, which will be discussed later in this article.Did you know? Annual percentage yield (APY) accounts for compounding interest, reflecting the total amount of interest earned over a year, including interest on interest, while annual percentage rate (APR) denotes the annual return without considering compounding.Step 3: Staking and farming tokens — How to deposit and withdraw fundsEngaging in yield farming involves depositing (staking) and withdrawing funds:Depositing funds:Connect your wallet: Use a compatible cryptocurrency wallet (e.g., MetaMask) to connect to the chosen DeFi platform.Select the liquidity pool: Choose the desired pool and review its terms.Approve the transaction: Authorize the platform to access your tokens.Supply liquidity: Deposit the required tokens into the pool.Withdrawing funds:Navigate to the pool: Access the pool where your funds are staked.Initiate withdrawal: Specify the amount to withdraw and confirm the transaction.Confirm the transaction: Approve the transaction in your wallet to receive your tokens back.Step 4: Risk management tipsMitigating risks is essential in yield farming:Stablecoin pools: Participating in pools that involve stablecoins like Tether’s USDt (USDT) and USD Coin (USDC) to reduce exposure to market volatility.Diversification: Spread investments across multiple pools and platforms to minimize potential losses.Research and due diligence: Investigate the security measures, audits and reputation of platforms before committing funds. DeFi yield farming calculator: How to estimate returns Yield farming calculators estimate returns by factoring in capital supplied, fees earned and token rewards, with several tools aiding projections.To accurately estimate potential returns in yield farming, calculators require inputs such as the amount of capital supplied to a liquidity pool (liquidity provided), the portion of transaction fees distributed to liquidity providers (fees earned) and any additional incentives or tokens granted by the protocol (token rewards). By inputting these variables, calculators can project potential earnings over a specified period.Several platforms provide tools to assist in estimating DeFi yields:DefiLlama: Offers comprehensive analytics on various DeFi protocols, including yield farming opportunities.Zapper: Allows users to manage and track their DeFi investments, providing insights into potential returns.Yieldwatch: A dashboard that monitors yield farming and staking, offering real-time data on earnings.CoinGecko’s APY calculator: Breaks down annual percentage yield across different timeframes, helping estimate earnings based on principal and APY percentage.Did you know? In yield farming, frequent compounding boosts returns. Manual compounding requires reinvesting earnings, while automated compounding reinvests them for you. The more often it happens, the higher your APY. Understanding impermanent loss in yield farming Impermanent loss occurs when the value of assets deposited into a liquidity pool changes compared to their value if held outside the pool. This phenomenon arises due to price fluctuations between paired assets, leading to a potential shortfall in returns for LPs. The loss is termed “impermanent” because it remains unrealized until the assets are withdrawn; if asset prices revert to their original state, the loss can diminish or disappear.In AMM protocols, liquidity pools maintain a constant ratio between paired assets. When the price of one asset shifts significantly relative to the other, arbitrage traders exploit these discrepancies, adjusting the pool’s composition. This rebalancing can result in LPs holding a different proportion of assets than initially deposited, potentially leading to impermanent loss.Consider an LP who deposits 1 Ether (ETH) and 2,000 Dai (DAI) into a liquidity pool, with 1 ETH valued at 2,000 DAI at the time of deposit. If the price of ETH increases to 3,000 DAI, arbitrage activities will adjust the pool’s balance. Upon withdrawing, the LP might receive less ETH and more DAI, and the total value could be less than if the assets were simply held, illustrating impermanent loss.For detailed strategies on managing impermanent loss, refer to Step 4 of card 3 in this article. The future of yield farming The early days of sky-high, unsustainable returns fueled by inflationary token rewards are fading. Instead, DeFi is evolving toward more sustainable models, integrating AI-driven strategies, regulatory shifts and crosschain innovations.1. Real yield replaces inflationary rewardsDeFi is moving away from token emissions and toward real yield — rewards are generated from actual platform revenue like trading fees and lending interest. In 2024, this shift was clear: 77% of DeFi yields came from real fee revenue, amounting to over $6 billion. 2. AI-driven DeFi strategiesAI is becoming a game-changer in yield farming. DeFi protocols now use AI to optimize strategies, assess risks, and execute trades with minimal human input. Smart contracts powered by AI can adjust lending rates in real-time or shift funds between liquidity pools for maximum efficiency. 3. RegulationsWith DeFi’s expansion, regulatory scrutiny is ramping up. Governments are pushing for frameworks to protect investors and prevent illicit activities. While increased oversight might add compliance hurdles, it could also attract institutional players, bringing more liquidity and legitimacy to the space. 4. Crosschain yield farmingSingle-chain ecosystems have limited features. Crosschain yield farming and interoperability solutions are breaking down barriers, allowing users to move assets seamlessly across blockchains. This opens up more farming opportunities and reduces reliance on any single network’s liquidity. What’s next?Several emerging trends are reshaping yield farming. Liquid staking lets users stake assets while still using them in DeFi. Automated vaults simplify farming by dynamically shifting funds for optimized returns. Decentralized index funds offer exposure to multiple assets through a single token, reducing risk while maintaining yield potential.In short, yield farming is becoming more sophisticated, sustainable and interconnected. The days of easy money are gone, but the opportunities for smart, long-term strategies are only getting better. Yield farming vs staking: Key differences The primary distinction between yield farming and staking is that the former necessitates consumers depositing their cryptocurrency cash on DeFi platforms while the latter mandates investors put their money into the blockchain to help validate transactions and blocks.Yield farming necessitates a well-considered investment strategy. It’s not as simple as staking, but it can result in significantly higher payouts of up to 100%. Staking has a predetermined reward, which is stated as an annual percentage yield. Usually, it is approximately 5%; however, it might be more significant depending on the staking token and technique.The liquidity pool determines the yield farming rates or rewards, which might alter as the token’s price changes. Validators who assist the blockchain establish consensus and generate new blocks are rewarded with staking incentives.Yield farming is based on DeFi protocols and smart contracts, which hackers can exploit if the programming is done incorrectly. However, staking tokens have a tight policy that is directly linked to the consensus of the blockchain. Bad actors who try to deceive the system risk losing their money.Because of the unpredictable pricing of digital assets, yield farmers are susceptible to some risks. When your funds are trapped in a liquidity pool, you will experience an impermanent loss if the token ratio is unequal. In other words, you will suffer an impermanent loss if the price of your token changes when it is in the liquidity pool. When you stake crypto, there is no impermanent loss.Users are not required to lock up their funds for a set time when using yield farming. However, in staking, users are required to stake their funds for a set period on various blockchain networks. A minimum sum is also required in some cases.The summary of the differences between yield farming and staking is discussed in the table below: Is yield farming safe? Every crypto investor should be aware of the risks, including liquidation, control and price risk related to yield farming.Liquidation risk occurs when the value of your collateral falls below the value of your loan, resulting in a liquidation penalty on your collateral. When the value of your collateral diminishes or the cost of your loan rises, you may face liquidation.The difficulty with yield farming is that small-fund participants may be at risk because large-fund founders and investors have greater control over the protocol than small-fund investors. In terms of yield farming, the price risk, such as a loan, is a significant barrier. Assume the collateral’s price falls below a certain level. Before the borrower has an opportunity to repay the debt, the platform will liquidate him.Nevertheless, yield farming is still one of the most risk-free ways to earn free cash. All you have to do now is keep the above mentioned risks in mind and design a strategy to address them. You will be able to better manage your funds if you take a practical approach rather than a wholly optimistic one, making the project worthwhile. If you have a pessimistic view of yield farming, on the other hand, you’ll almost certainly miss out on a rich earning opportunity.
Trump’s Strategic Bitcoin Reserve and Digital Asset Stockpile, explained
A quick history of Trump’s statements and policies on crypto Donald Trump’s stance on cryptocurrency has shifted significantly over time. From 2019 to 2021, Trump expressed skepticism toward Bitcoin (BTC), calling it volatile and a threat to the US dollar, but by 2024, he reversed his stance, pledging support for crypto, proposing a US Strategic Bitcoin Reserve and criticizing the Biden administration’s anti-crypto policies.Early skepticism (2019–2021)July 2019: While in office, Trump tweeted that he was “not a fan” of Bitcoin, calling it “not money” and criticizing its volatility. He also opposed Facebook’s Libra (Diem) project, arguing that tech companies shouldn’t issue currency without a banking charter.June 2021: After leaving office, Trump labeled Bitcoin a “scam” and a threat to the US dollar, advocating for strict regulation to prevent it from undermining the US financial system.Crypto policy during his presidency (2017–2020)Trump’s administration generally took a cautious stance on crypto:Treasury Secretary Steven Mnuchin warned of Bitcoin’s risks and dismissed its long-term viability.The Treasury Department proposed stricter tracking rules for digital wallets, which faced industry backlash.Some Trump appointees supported crypto-friendly banking policies, but these were exceptions to an overall skeptical approach.Pro-crypto pivot in 2024Ahead of the 2024 election, Trump reversed course, pledging to end the Biden administration’s “anti-crypto” stance. He:Declared himself “very positive and open-minded” on Bitcoin.Promised to fire top crypto-skeptic regulators if reelected.Proposed a US Strategic Bitcoin Reserve, vowing to hold on to seized Bitcoin instead of auctioning it off.This dramatic shift set the foundation for Trump’s strategic Bitcoin reserve. The Strategic Bitcoin Reserve: What does it mean? One of Trump’s headline proposals is creating a Strategic Bitcoin Reserve for the US, treating Bitcoin as a national reserve asset akin to digital gold. The plan centers on stockpiling Bitcoin seized in criminal cases rather than purchasing it with taxpayer funds.Key componentsBitcoin as a reserve asset: The US government would officially recognize Bitcoin as a strategic holding, similar to gold in Fort Knox, leveraging its fixed supply and decentralized nature.Seized crypto, not taxpayer purchases: Instead of selling confiscated Bitcoin at auction (as has been past practice), the government would retain it in a central reserve account. Trump’s executive order explicitly states that any Bitcoin deposited “shall not be sold.”No immediate buying spree: The plan does not include direct federal purchases of BTC but allows for “budget-neutral” methods to expand reserves, such as using proceeds from other seized assets.Does the US already have a Bitcoin stockpile? Yes, indirectly. Over the past decade, agencies have seized large amounts of BTC but historically auctioned it off rather than holding it. Trump’s policy would change that, aiming to preserve Bitcoin as a national asset.Supporters believe this could strengthen US finances and ensure the nation isn’t left behind in a Bitcoin-driven global economy. However, critics warn of Bitcoin’s volatility and the risks of integrating a decentralized asset into government reserves. Is the Bitcoin strategic reserve the same as the digital asset stockpile? No, a digital asset stockpile is a separate reserve that would hold other forfeited cryptocurrencies.The Strategic Bitcoin Reserve focuses solely on holding Bitcoin as a reserve asset, while the Digital Asset Stockpile includes other forfeited digital assets such as Ether (ETH) or USDC (USDC), though these assets might be strategically managed or sold over time. Bitcoin, however, would be held indefinitely in the reserve.Notably, Trump’s executive order does not explicitly mention what specific crypto assets will be included in the US Digital Asset Stockpile. Here are the commonalities and differences between the Strategic Bitcoin Reserve and the US Digital Asset Stockpile: Historical context: US government and Bitcoin Trump’s Bitcoin reserve plan builds on a history of US government interactions with cryptocurrency, primarily through law enforcement and asset seizures.Seizures and auctions (Silk Road era)The government’s relationship with Bitcoin began in 2013–2014 with the Silk Road takedown, where federal agents seized 144,000 BTC — one of the largest Bitcoin hauls ever. Rather than holding the coins, the US Marshals Service auctioned them off, setting a precedent for liquidating seized crypto. Did you know? In 2014, venture capitalist Tim Draper bought 30,000 BTC for $18 million, a fraction of its later value.Accumulating and selling crypto holdingsSince then, US agencies have continued seizing and auctioning Bitcoin from various cases, selling nearly 200,000 BTC between 2014 and early 2023, netting around $366 million. However, with Bitcoin’s price surge, those sold coins would now be worth over $18 billion — raising questions about whether the government should have held onto them. Crypto advocates argue this history justifies a hodl policy rather than continued liquidation.Past administration policiesObama administration: Focused on regulating exchanges and curbing illicit use.Trump’s first term: Emphasized enforcement, sanctioning crypto accounts linked to adversaries and targeting tax evaders.Biden administration: Prioritized investor protection and regulatory enforcement, pursuing lawsuits against major exchanges in 2023 and continuing liquidation of seized Bitcoin rather than holding it.The idea of a national Bitcoin reserve was largely absent from previous administrations — until Trump’s 2024 proposal.Global contextOther governments, including China and Germany, have seized Bitcoin, but most — like the US — chose to auction it rather than stockpile it. No major economy has yet integrated Bitcoin into its sovereign reserves. The closest example is El Salvador, which made Bitcoin legal tender in 2021 and began accumulating it. If fully implemented, Trump’s Bitcoin reserve strategy would make the US the first major nation to officially hold Bitcoin as a strategic asset, a significant shift in global crypto policy.Did you know? In 2024, Bhutan’s sovereign investment arm quietly amassed $750 million in Bitcoin holdings through hydroelectric-powered mining, amounting to 28% of the country’s gross domestic product. Potential impact of a Strategic Bitcoin Reserve If the US establishes a Strategic Bitcoin Reserve, the implications could be significant for markets, regulation and financial strategy.Market dynamicsA no-sell policy would remove key selling pressure, as seized Bitcoin would no longer be auctioned off, effectively reducing circulating supply. Some analysts see this as bullish for Bitcoin’s price. Anticipation of Trump’s pro-crypto stance already fueled market optimism in late 2024. However, political shifts could bring uncertainty — future administrations might reverse the policy and sell, making government-held Bitcoin a new market-moving factor.Legitimacy and mainstreamingIf the US holds Bitcoin as a strategic asset, it would mark the strongest government endorsement of crypto to date. This could encourage institutional investors and pressure other nations to consider similar policies. If multiple governments start stockpiling Bitcoin, it could integrate crypto more deeply into global finance, potentially affecting reserve diversification and even international sanctions.Regulatory shiftA national Bitcoin reserve aligns with a broader pro-crypto shift in US regulation. Trump has already signaled a friendlier stance, calling for clearer rules and protecting crypto firms’ banking access. This could reverse past regulatory hostility, making the US a more attractive hub for blockchain businesses.With the government holding Bitcoin, it may also incentivize policies that promote crypto growth, though balancing innovation and consumer protection remains a challenge.Did you know? In 2025, President Trump appointed David Sacks as the White House AI and crypto czar to establish a legal framework for the cryptocurrency industry.Financial strategy and the dollarTrump insists Bitcoin won’t replace the US dollar, but holding it as a reserve asset could complement rather than compete with the dollar — similar to gold. If Bitcoin appreciates, it could strengthen US financial standing, but if it gains too much influence in global reserves, it might challenge fiat dominance over time.While speculative for now, a national Bitcoin reserve could reshape the role of digital assets in global finance. Challenges and controversies Trump’s Bitcoin reserve plan has sparked both enthusiasm and criticism. Key concerns include volatility, political optics and legal hurdles.Volatility and riskBitcoin’s price swings make it a risky reserve asset. Unlike gold or US Treasurys, Bitcoin can drop 10% in a day, raising concerns about exposing taxpayer-linked reserves to major losses. Critics compare it to gambling with public funds, while supporters argue that not holding Bitcoin poses a bigger risk if it continues to appreciate.Political “flip-flop”Trump once called Bitcoin a threat to the dollar, but now champions it. Opponents see this as opportunism, driven by campaign donations from crypto investors rather than a genuine policy shift. Supporters argue it reflects Republican modernization, appealing to a younger, crypto-friendly voter base.Favoring Bitcoin over other cryptocurrenciesBy stockpiling Bitcoin, the government may be seen as picking winners and losers in the crypto market. This could marginalize smaller tokens and raise concerns over market intervention. Some fear Trump’s crypto agenda could slow down broader regulation by making the issue partisan.Legal and logistical hurdlesTransferring seized Bitcoin into a government reserve isn’t simple. Current laws mandate auctions, meaning Congress may need to intervene. Additionally, securing billions in crypto requires top-tier cybersecurity, as hacks or key losses could be disastrous. Lawmakers are also pushing for transparency on how much Bitcoin the government actually holds.Economic strategy uncertaintyHow does Bitcoin fit into US monetary policy? The Federal Reserve does not currently treat crypto as part of its system. If the Treasury holds Bitcoin, would it influence monetary decisions or simply remain an investment? Trump’s policy also bans a US central bank digital currency to prevent competition with private crypto, raising questions about the coherence of US financial strategy.The Bitcoin reserve experiment could reshape US crypto policy — or create new complexities that challenge its long-term viability.
Ethereum Foundation not behind $56M Sky deposit, developer says
An Ethereum developer rejected speculation that the Ethereum Foundation (EF) was behind a recent deposit of more than 30,000 Ether into the decentralized finance (DeFi) protocol Sky, formerly known as MakerDAO.On March 10, a wallet address deposited 30,098 Ether (ETH), worth about $56 million, into Sky. Crypto intelligence platform Arkham labeled the address “Ethereum Foundation?,” raising speculation that the EF may have moved funds into the lending protocol — a strategy recommended by the community — instead of directly selling ETH to fund its operations. However, community members quickly dismissed the claims, clarifying that the wallet in question does not belong to the Ethereum Foundation. Eric Conner, the co-author of Ethereum Improvement Proposal (EIP-1559), called a Wu Blockchain report “completely fake,” implying that the address doesn’t belong to the EF. Anthony Sassano, host of The Daily Gwei, also cited the report, saying that the wallet does not belong to the EF. Source: Anthony Sassano Ethereum wallet likely from an early investorWu Blockchain later clarified that while the account was suspected of belonging to the Ethereum Foundation, transaction history suggested it was more likely associated with an early Ethereum investor.The address received a 4 million Dai (DAI) transfer from the EF ETH Sale in May 2022, and initial ETH funding was traced back to a wallet called jonny.eth. The address deposited the $56 million into the Sky vault to avoid liquidation as ETH prices tumbled. On March 10, ETH dropped from a high of $2,138 to $1,813, a 15% decline. The move allowed the wallet to avoid liquidation, lowering its liquidation price to $1,127.14, 40.19% below ETH’s price of $1,896 at the time of writing.Related: Ethereum Foundation forms external council to uphold core blockchain valuesEthereum Foundation deployed $120 million into DeFi protocolsWhile the recent deposit into Sky was not linked to the Ethereum Foundation, the EF has faced criticism in the past for selling ETH for stablecoins to fund team salaries and operations. In January, community members suggested that the foundation could instead borrow stablecoins against its ETH holdings rather than sell the assets.At the time, Sassano said that instead of swapping ETH for stablecoins, the foundation should consider using Aave to borrow stablecoins against ETH. Sky allows users to do something similar. By depositing ETH, users can borrow DAI. On Feb. 13, the EF listened to the community and deployed 45,000 ETH, about $120 million at the time, to DeFi protocols Aave, Spark and Compound. Community members celebrated the move, with Aave founder and CEO Stani Kulechov saying, “DeFi will win.” The EF also said there’s “more to come,” suggesting this is not their last foray into DeFi. Magazine: MegaETH launch could save Ethereum… but at what cost?