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WLFI drops 8 percent as the wider market rises, which signals strong coin-specific pressure

Funding rates fall sharply, and long liquidations rise as sellers retain firm control

RSI sinks to deep oversold territory, which hints at a possible short-lived relief move

WLFI slipped again over the past day, extending a losing streak that has worn down sentiment for weeks. At press time, the token trades near $0.10, per CoinMarketCap figures, after an 8% slide that pushed it to its lowest level since late autumn.

The broader market spent the same window climbing, which only made the move stand out more sharply. The losses added to a heavy month. At its current price, WLFI is down roughly 42% over 30 days and more than 56% compared with last year.

However, trading activity actually picked up, with volumes rising about 18% to $352 million. Even so, the additional turnover did not translate into support; most of it appears to be sellers exiting positions rather than buyers stepping in to absorb pressure.

Asset-Specific Selling Overrides Market Strength

The latest decline unfolded on a day when the total crypto market cap rose more than 5%. That gap left analysts pointing to token-specific drivers rather than any larger shift in risk appetite. WLFI has fallen about 32% in a week, and nothing in the current flow of information suggests that trend is encountering resistance.

In situations like this, investors tend to look for catalysts, anything that can disrupt the slide. Yet, no such developments have surfaced, at least not publicly. As a result, the token continues to drift away from the market’s broader direction, a sign that conviction is weakening inside the asset’s own community more than anywhere else.

Lingering Overhang From Earlier Events

Still, some of the hesitation traces back to issues that surfaced earlier, where WLFI had been mentioned in a U.S. congressional inquiry tied to a $500 million investment originating in the UAE. There were also reports from Arkhan Intelligence that the project sold a portion of its Bitcoin, worth about $6.71 million, to settle an Aave loan and avoid liquidation pressures in early February.

Source: Arkham Intelligence

Such events continue to act as an overhang. In markets that are already jittery, any unresolved question becomes a drag, enough to make fresh buyers cautious and existing holders quicker to react when volatility increases.

Technical Breakdown Confirms Bearish Control

Similarly, the technical picture has also deteriorated. According to a TradingView daily chart analysis, WLFI spent months trading inside an ascending channel, a structure usually interpreted as constructive.

However, that pattern failed last Saturday. The token’s price slipped beneath the lower trendline and briefly retested the breakdown point before pivoting lower again, a sequence traders often view as confirmation of a shift in direction.

Source: TradingView

The fall also pushed the token under a support area around $0.11 to $0.10. Moreover, shorter-term averages sit above the current price: the 20-day is near $0.14 and the 50-day close to $0.15. When price lingers below both, traders tend to treat it as evidence of a market leaning heavily toward sellers.

Related: Bitcoin Sheds Over $53K in 120 Days: What’s Next for BTC?

Derivatives and Momentum Signals Paint a Mixed Picture

Derivatives data has been equally lopsided. Per CoinGlass data, the funding rate on WLFI futures dipped toward an extreme negative reading, suggesting that shorts were motivated enough to pay a discount to stay in their positions.

Source: CoinGlass

Liquidation figures showed a similar imbalance. Around $1.74 million in positions were wiped out in 24 hours, with $1.50 million of that from longs compared to $241,180 in short liquidations. The imbalance points to a long squeeze, where forced exits from leveraged buyers amplify downward moves.

Source: CoinGlass

Momentum indicators, however, may be nearing exhaustion. The relative strength index has dropped to about 22, placing it deep in oversold territory. While this does not signal a confirmed reversal, it indicates that selling intensity has reached levels historically associated with short-term exhaustion, leaving the market sensitive to any shift in flows or information.

For now, WLFI remains under steady pressure, shaped by old uncertainties, technical breaks, and persistent selling. Whether it stays there may depend on which moves first: new information or seller fatigue.

The post WLFI Drops 8% as Bearish Trend Deepens: What Comes Next? appeared first on Cryptotale.

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Tom Lee called Ethereum the future of finance during a volatile market period.

BitMine shares surged then fell as unrealized ETH losses reached a billion-dollar level.

Ethereum rebounded above 2000 even as trading volume declined sharply today. globally.

BitMine chairman and Fundstrat co-founder Thomas (Tom) Lee reaffirmed his bullish stance on Ethereum, calling it “the future of finance,” as both ETH prices and BitMine shares moved sharply this week. Lee’s comments followed remarks from Ethereum co-founder Vitalik Buterin, who described ETH as a store of value and a foundation for key blockchain applications. 

Together, the statements drew renewed attention from investors and analysts during a period of heightened volatility across crypto-linked assets.

More proof that

ethereum is the future of finance$ETH https://t.co/B16fvAM8FD

— Thomas (Tom) Lee (not drummer) FSInsight.com (@fundstrat) February 6, 2026

Ethereum Narrative Gains Attention

Lee’s endorsement came as discussions continued around Ethereum’s role in decentralized finance, non-fungible tokens, and institutional adoption. Traders reported higher activity on major exchanges following the public exchange between Lee and Buterin.

Market observers noted that the remarks reinforced confidence in Ethereum’s long-term positioning despite ongoing regulatory uncertainty. Ethereum’s price action reflected that backdrop. Over the past 24 hours, ETH rose 5.59% to $2,011.39, according to CoinMarketCap.

The move followed an early dip near $1,917 before buyers pushed prices toward the $2,100 level. Market capitalization climbed to $242.76 billion, while 24-hour trading volume fell 25.59% to $53.09 billion, signaling thinner turnover during the rebound.

BitMine Shares Swing With Treasury Exposure

Shares of BitMine Immersion Technologies Inc surged 17.64% on Friday, closing at $20.47 on NYSE American data from Google Finance. The stock traded between $18.70 and $20.70, well above the prior close of $17.40.

Source: Google Finance

After-hours trading added to gains, with shares rising to $20.66, up another 0.93%. BitMine’s market capitalization now stands at $9.31 billion, supported by an average daily volume of 42.99 million shares.

Despite the rally, the stock remains far below its 52-week high of $161, though still above its $3.20 yearly low. The company reports no meaningful price-to-earnings ratio and offers a 0.05% dividend yield.

Unrealized ETH Losses Come Into Focus

Earlier in the week, BitMine shares fell 11% to around $18.05, marking a seven-month low after unrealized losses on ETH holdings approached $8 billion. The decline followed ETH’s drop toward $2,300, which reduced the value of BitMine’s treasury holdings.

The firm holds about 4,285,125 ETH, valued near $8.4 billion, and was down more than $6 billion on paper at one point. Responding on X, Lee said, “Crypto is in a downturn, so naturally, ETH is down.” “BMNR will see ‘unrealized’ losses on our holdings of ETH during these times,” he added. “It’s not a bug, it’s a feature.”

These tweets miss the point of an ethereum treasury:
– BitMine is designed to track the price of $ETH
– outperform over the cycle (think up ETH)
– crypto is in a downturn, so naturally ETH is down$BMNR will see “unrealized” losses on our holdings of ETH during these times:
-… https://t.co/VpoNjAnJdC

— Thomas (Tom) Lee (not drummer) FSInsight.com (@fundstrat) February 3, 2026

Based on BitMine’s reported cost basis from a November 10-Q filing and later purchases, analytics platform DropsTab estimates unrealized losses near $8.02 billion, or about 49% of the investment. 

Related: BitMine Immersion Puts $200M Into MrBeast’s Beast Industries

Conclusion

Ethereum and BitMine remained tightly linked this week as market volatility tested long-term crypto strategies. Tom Lee repeated his view that short-term drawdowns reflect market cycles rather than structural weakness. 

The market showed renewed buying interest towards Ethereum after its price increased, yet trading volumes remained lower than normal. The price movements of BitMine shares showed similar patterns to the changes in Ethereum prices, which proved that treasury-based holdings of crypto companies increased their financial results.

As ETH prices rose, market participants watched closely: Will sustained price recovery validate Lee’s long-term Ethereum thesis?

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Bitcoin tumbled over 50% from its peak as fear reached levels last seen in 2022.

Trading volume surged while futures interest sank, showing a rapid exit from risk assets.

Dollar strength and tech stock losses deepened pressure across crypto markets globally.

Investors are creeping out across crypto markets. This is because the market has deepened to levels unseen since mid-2022, as a macro-driven selloff pushed Bitcoin to fresh multi-month lows and drained speculative appetite. Bitcoin fell to $60,255 on Thursday, a 15-month low and a 52.2% drop from its October 2025 peak of $126,080. At the same time, the Crypto Fear and Greed Index slid to 9, placing sentiment firmly in extreme fear and marking its weakest reading in 42 months. 

Data from Alternative. me showed sentiment showed at 9 on February 6, unchanged from the prior day but far below last week’s 16 and January’s reading of 42. The index tracks price action, momentum, and demand, and it weakened sharply as selling pressure intensified across global markets.

Source: Alternative.me

Market Stress Deepens as Bitcoin Volatility Surges

Bitcoin extended losses on February 6, trading at $65,229, down 9.02% over 24 hours, according to CoinMarketCap. Earlier in the session, prices briefly dipped near $60,000 before staging a modest rebound, reflecting unstable trading conditions.

Market capitalization fell to $1.3 trillion, down 9.06% on the day, as broad risk aversion spread across major assets. The trading volume increased by 72.87%, reaching $145.28 billion. 

The increase raised the volume-to-market-cap ratio to 11.19%, indicating that traders were making large position changes due to intense market volatility.  

The circulating supply of Bitcoin reached 19.98 million coins, which created options for issuing new coins as the price movements became more pronounced during trading sessions.

Macro Pressures Drive Risk Aversion

Analysts linked the selloff to tightening financial conditions and synchronized declines across global markets. Tim Sun, senior researcher at HashKey Group, said the drawdown reflects restricted liquidity and shared risk-aversion dynamics across asset classes. He noted that global assets now respond to similar financing pressures as liquidity fails to expand meaningfully.

Related: What is the Crypto Fear & Greed Index? How to Use it?

Jeff Ko, chief analyst at CoinEx Research, pointed to Bitcoin’s weekly drop of over 20% alongside a selloff in U.S. technology stocks. He cited stretched valuations and long-standing concerns over an artificial intelligence-led bubble weighing on sentiment. Ko added that Amazon recorded a double-digit decline after mixed earnings, prompting investors to question Bitcoin’s reliability as a safe haven relative to gold.

Derivatives Data Signals Defensive Positioning

Market participants increased their caution after observing that speculative investors abandoned the derivatives markets. CryptoQuant data showed aggregated Bitcoin futures open interest falling to $21.96 billion, marking a 15-month low that indicates market participants are selling off their assets. 

The options markets showed a defensive market trend; the weekly and 30-day 25-delta skews dropped below -28 and -24. The levels show that traders paid more to acquire protection against price declines because they expected market downturns, which caused them to bet on negative price movements. Andri Fauzan Adziima, who works as the research lead at Bitrue, stated that companies became risk-averse during this period because of their expenditures on technology and artificial intelligence. 

The U.S. Dollar Index increased from 95 to 97 from  January 27  up until now because Japanese bond market disruptions created market conditions that affected the yen carry trade. Bitcoin currently struggles to attain stability. Market sentiment resembles the Terra Luna collapse from May 2022, while investors worldwide exhibit lower risk tolerance.

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The $70M AI.com sale marks the largest public domain deal paid fully in crypto today.

AI.com will launch an AI agent that handles tasks across apps for everyday users.

The Super Bowl debut places the platform in a crowded and fast-moving AI race now.

Kris Marszalek has acquired the AI.com domain for about $70 million in cryptocurrency and plans to unveil the platform during a Super Bowl commercial this weekend. The purchase ranks as the largest publicly disclosed domain sale to date, according to people familiar with the transaction. The move positions AI.com as a new entrant in the fast-growing artificial intelligence market at a moment of intense industry attention.

The price was confirmed by broker Larry Fischer of GetYourDomain.com, who said the payment occurred entirely in digital assets. Fischer did not identify the seller, while the deal was first reported by the Financial Times. Marszalek later confirmed the acquisition timeline and launch plans in a post on X.

Marszalek said he bought the domain in April and formed a team that has built toward an initial release. He described the Super Bowl debut as the first public launch after months of preparation. The announcement arrives as AI products and agents draw rising interest from consumers and enterprises.

I purchased https://t.co/ac2AqjBNxj in April. Since that time, we created a team that has been steadily building. There are always twists and turns, but I’m excited with our first launch this Sunday during the Super Bowl. pic.twitter.com/BbqVo1bQLZ

— Kris — ai.com — crypto.com (@kris) February 6, 2026

Building AI.com and Its Agent Strategy

AI.com will center on a personal AI agent designed to act on a user’s behalf across tasks and applications. The platform plans to help users organize work, send messages, execute actions, and build projects. The focus targets ease of use for non-technical consumers.

Users can create multiple agents to perform different tasks under permission-based controls. The company says privacy will remain central to the design, with users managing access. Examples in the press release include trading stocks and updating a dating profile.

The company has not clarified whether it will develop proprietary AI models or license existing ones. It plans to offer free access alongside a paid subscription tier. The structure aims to keep the service flexible as features expand.

How will AI.com compete as established firms roll out similar agent tools?

Timing, Market Context, and Public Signals

Marszalek described the domain purchase as a long-term investment tied to expected technological shifts over the next 10 to 20 years. He said he received what he called “an absolutely insane amount of money” in offers for the domain. Despite those approaches, he said he plans to keep the asset to build a business and brand.

The launch mirrors Crypto.com’s earlier push into mainstream advertising during late 2021 and early 2022. That period included high-profile Super Bowl ads and celebrity endorsements. Those campaigns coincided with peak crypto market enthusiasm.

AI.com now launches during a renewed crypto downturn that has pushed Bitcoin below $66,000. Bitcoin last traded near $127,000 in October 2025 before the decline.
The timing places the AI debut amid heightened volatility across digital asset markets.

Related: Crypto.com Expands SGD, USD Rails in Singapore With DBS

Industry Outlook and Analyst Focus

The artificial intelligence market is projected to reach $376 billion in 2026. That growth outlook has fueled competition among platforms offering agent-based tools. Companies such as OpenAI, Anthropic, and Google have announced similar capabilities. 

Marszalek’s venture enters the sector because current interest in productivity-focused AI tools continues to grow. Recent launches like Anthropic’s Claude Code and Claude Cowork have gained attention for practical use cases. The AI.com platform launched because it wanted to maintain its current growth pattern. 

The platform needs to show whether it can attract users while standing out from its bigger competitors, according to analysts. The researchers are studying two specific problems, which include regulatory issues and liquidity challenges that affect all cryptocurrency-related projects. The initial user feedback, together with product performance data, will determine the first evaluations.

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BTC slid toward $60K as U.S.–Iran nuclear talks revived geopolitical risk across crypto markets

Over $260B exited crypto in a day as liquidations surged and sentiment dropped to extreme fear

ETH, SOL, and DOGE broke key levels as leverage unwound during global risk-off trading

Renewed diplomatic strain between the United States and Iran is colliding with a fragile crypto market, sending Bitcoin and major tokens into a fast, liquidation-driven slide just as nuclear talks begin in Muscat, Oman.

BREAKING: US Embassy tells citizens to ‘LEAVE IRAN NOW’ pic.twitter.com/HLiDUsT2pL

— Breaking911 (@Breaking911) February 6, 2026

Just recently online, a U.S. travel advisory urging Americans to “leave Iran now” resurfaced on X and added fresh headline risk. The guidance dates back to mid-January, but it reappeared as markets positioned for Friday’s negotiations and weighed renewed warnings from President Donald Trump alongside retaliation threats from Tehran.

Talks In Oman Open With High Stakes

According to reports, Iran and the United States opened high-stakes talks in Oman on Friday, with Iran’s Foreign Minister Abbas Araghchi leading Tehran’s delegation and U.S. Middle East envoy Steve Witkoff heading the U.S. side.

Jared Kushner, U.S. President Donald Trump’s son-in-law, was also expected to take part in the meeting, according to officials familiar with the matter. The agenda itself is a flashpoint. Per reports, Washington wants discussions to expand beyond the nuclear file to also cover Iran’s ballistic missiles, regional armed groups, and internal human rights issues.

Tehran, on the other hand, acknowledged that it wants the meeting to focus only on the nuclear issue. The talks come after last year’s sharp escalation in June, when the U.S. struck Iranian nuclear targets during the final stages of a 12-day Israeli bombing campaign.

Iran later said its uranium enrichment activities had stopped. As a result, Tehran has since warned it would respond forcefully to any military action and has made clear it will not negotiate over its missile program.

Old Travel Warning Returns And Reprices Risk

The resurfaced travel warning amplified market sensitivity to U.S.–Iran developments as it advised U.S. citizens to plan departure without relying on government evacuation support. The alert also referenced disruption risks such as flight cancellations and internet outages, language that traders often treat as a stress signal when it goes viral again.

Even though the advisory was not newly issued, its circulation landed at a moment when investors were already reducing exposure to risk assets. That timing helped keep U.S.–Iran headlines in the foreground as the Oman talks began.

Forced Position Closures Amplify Losses 

In the aftermath, the crypto sell-off took on a different character. What began as a steady decline hardened into a liquidation-driven slide as key technical levels failed. Bitcoin briefly probed the $60K mark, falling to an intraday low of $60,074 before recovering to roughly $65,969.

Source: CoinMarketCap

Even with the bounce, the damage was clear. Bitcoin remained down about 20% over the past week and 33% year to date, while Ether was still off roughly 32% in 2026 despite stabilizing attempts. The scale of forced positioning mattered as much as the news flow.

Source: CoinGlass

More than $2.6 billion in leveraged positions were cleared out over the past 24 hours, with close to 89% tied to long exposure. Bitcoin accounted for the largest share of those liquidations, followed by Ethereum. The pattern was familiar. Once downside momentum built, leveraged bullish bets were the first to unwind.

Liquidations And Fear Indicators Deepen Market Stress

Signs of strain were also evident in sentiment gauges. The Fear and Greed Index slid to 5, a level categorized as “Extreme Fear,” down from 11 the previous day. Moves of that magnitude typically coincide with periods when traders are reacting to margin pressure rather than reassessing fundamentals.

Source: CoinMarketCap

Consequently, selling becomes mechanical, and decisions are made quickly and often reluctantly. However, losses were not contained to Bitcoin. Ether slipped below $1,800 during the downturn, while Solana fell under $70 for the first time since December 2023. Dogecoin also traded below $0.10.

Each break added to the risk-off tone, particularly in retail-driven assets where round numbers and prior support zones tend to concentrate stop orders and liquidation triggers. Broader market forces further added weight. The crypto drawdown unfolded alongside a sharp pullback in global technology stocks and a wider retreat from risk assets.

Source: SoSoValue

At the same time, sustained outflows from U.S. spot bitcoin exchange-traded funds, more than $1.61 billion withdrawn in January, reduced marginal demand just as liquidation-driven supply surged, leaving prices exposed during the selloff.

Related: Tether Buys 12% Stake in Gold.com With $150M Tokenized Gold Push

Why U.S.–Iran Risk Feels Bigger When Leverage Is High

The U.S.–Iran story landed in a market that was already structurally vulnerable. When leverage builds, price declines do not need a large new catalyst to snowball. Thus, liquidations can turn a headline-driven dip into a cascade, as each forced close becomes the next wave of sell pressure.

This makes the U.S.–Iran developments crucial even as officials clarified the travel advisory was not new. Regardless, with talks underway in Oman and both sides holding firm public positions, traders responded by reducing risk quickly, and the market’s plumbing did the rest.

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XRP dropped from $2.42 in January to $1.12 by early February after multiple supports failed.

Price rebounded to $1.29 as RSI fell to 23.63, showing deep oversold market conditions.

Social sentiment for XRP diverged from Bitcoin and Ethereum during the latest decline.

The market is quite concerned about how XRP has changed hands at $1.29 on Binance against USDT  today after a volatile session that saw the price swing between $1.11 and $1.33. The move represented a 6.22% rebound on the day, yet it came after heavy selling pressure that built steadily from January. From a monthly high near $2.42, XRP slid lower for weeks, with the decline accelerating into early February. 

On Feb. 5, 2026, the price broke through several technical levels in a single session, producing one of the sharpest daily drops visible on the chart and pushing XRP into a short-term stabilization phase.

A Breakdown Months in the Making

The larger structure shows XRP rolling over from a descending wedge that developed between October and late December. Throughout that period, price printed lower highs beneath a sloping resistance line, while the lower boundary offered only shallow and weakening support. Trading ranges tightened, signaling compression rather than accumulation.

Source: TradingView

That compression ended in January. As support failed, XRP slipped out of the wedge and attempted a brief recovery. The rally stalled at the 1.0 Fibonacci retracement level near $2.4172, aligning closely with January’s peak. The rejection at that level marked the end of upside momentum and reset the prevailing trend.

XRP entered a steep bearish channel after its initial decline, which continued until it reached lower price levels. The market recovery faced resistance at the upper boundary of the channel, which resulted in downward price movement instead of market consolidation.

Fibonacci Levels Trace the Decline

Fibonacci retracement levels drawn from the January high mapped the path of the sell-off with precision. XRP first slipped below 0.786 at $2.1387, then lost 0.618 at $1.9201. Selling continued through 0.5 at $1.7666 and 0.382 at $1.6130, with each level slowing price briefly before giving way.

Pressure intensified once XRP fell through 0.236 at $1.4230. From there, the price dropped quickly toward the 0.0 retracement at $1.1159. That level overlapped with a clearly defined demand zone on the chart, where selling finally paused. Buyers absorbed enough pressure to lift XRP back above $1.29, though the move remained corrective rather than directional.

Momentum readings reflected the strain of the decline. The RSI (14) fell to 23.63, placing the token deep in oversold territory. 

Sentiment Data Adds Another Layer

The analytics company Santiment examined social media user sentiment on Bitcoin, Ethereum, and XRP during the market downturn, which resulted in price declines. The company analyzed its Positive-to-Negative Sentiment ratio, which evaluates bullish and bearish user comments on major platforms.

Source: X

Santiment calculates the metric by collecting asset mentions and classifying them using machine-learning models. It then divides positive references by negative ones. Readings above 1 indicate more positive commentary, while values below 1 point to bearish dominance.

Related: XRP Price Steadies Above Key Support: Is a Rebound Past $2 Possible?

Santiment reported that two divergent asset trends occurred during the recent market decline. The sentiment profile of XRP showed different results from both Bitcoin and Ethereum because of varying expectations from traders. The digital asset markets have historically moved against retail investor positions because periods of extreme market fear precede market recovery, while high market optimism occurs at local peak points.

In XRP’s case, sentiment divergence now sits alongside a technically damaged chart. Price has so far defended the $1.12 area, yet previous breakdown levels at $1.61 and $1.76 remain overhead as reference points as trading continues.

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Tether invests $150M in Gold.com as rising demand lifts interest in tokenized gold assets

Deal links XAU₮ to Gold.com while opening paths for stablecoin payments in gold markets

Tether secures a board seat as Gold.com expands its gold-backed digital asset offerings

Tether has made a decisive move into the precious metals market, committing $150 million to acquire a minority stake in Gold.com as demand for gold-backed assets accelerates amid global market volatility. The investment gives the stablecoin issuer a 12% ownership position in the publicly traded gold platform and signals a deeper effort to connect traditional stores of value with blockchain-based finance.

Tether Makes $150 Million Strategic Investment in https://t.co/wkdntYlIFB, Expanding Global Access to Tokenized and Physical Gold

Read more:https://t.co/ttkmDcS369

— Tether (@tether) February 5, 2026

The timing is not accidental. Gold prices pushed past $5,500 per ounce last week, and tokenized gold has swelled from roughly $1.3 billion to more than $5.5 billion in market size. Consequently, Tether is now trying to position itself inside that momentum, connecting its stablecoin infrastructure to a market that historically leans toward caution rather than experimentation.

Strategic Entry Into Gold.com: Terms Behind the Move

According to disclosures published by Gold.com, Tether agreed to buy about $125 million in Common Shares upfront, with another $25 million to follow once certain regulatory steps are cleared. Altogether, the purchase covers 3.371 million shares at $44.50, an 11.9% discount to the company’s 10-day VWAP as of Feb. 4, 2026. Moreover, the shares come with typical registration rights and carry a 90-day resale restriction.

The investment also gives Tether the ability to nominate one director to the company’s board. Traders seemed quick to register the significance of the partnership, pushing Gold.com’s stock up roughly 6% in after-hours dealings once the news hit.

Building a Bridge Between Vaults and Blockchains

While the equity stake matters, most of the long-term implications fall in the partnership language. Gold.com already handles sourcing, logistics, and distribution of physical bullion. The new plan involves embedding Tether’s XAU₮ token into that system so users can move between physical and tokenized gold without leaving the platform.

Both sides intend to explore whether physical gold purchases can be settled through USDT or Tether’s newer U.S.-regulated stablecoin, USAT. Yet, the arrangement will need to pass regulatory checks, but the direction is clear: the companies want to pull precious metals closer to digital-asset rails without abandoning the conventions of the traditional metals trade.

Commercial Commitments Take Shape

Meanwhile, several financial and operational provisions still sit underneath the headline figure. Per reports, Tether will extend Gold.com a gold-leasing facility of no less than $100 million, a move that could expand liquidity across the platform’s bullion programs. Gold.com, for its part, agreed to accept USDT or USAT for certain payments where feasible and to promote Tether-issued tokens in various customer-facing channels.

Another piece of the deal sees Gold.com directing $20 million of the investment proceeds into XAU₮. That allocation effectively loops the transaction back into Tether’s tokenized-gold ecosystem and reinforces the token’s physical backing held in Swiss vaults.

Related: USDT’s $187B Market Cap Scale Signals Capital on Standby, Not in Retreat

Market Context and Executive Commentary

The timing of the deal reflects broader shifts in investor behavior. Gold has climbed rapidly over the past several quarters, fueled by geopolitical friction and persistent unease in monetary policy.

Similarly, tokenized gold markets have followed, and XAU₮ now represents more than 60% of that segment. Paolo Ardoino, chief executive of Tether, described the move as a long-term hedge rather than a tactical trade, noting gold’s historical role during unstable periods.

For Gold.com, the investment brings a large digital customer base into reach, while Tether gains a firmer foothold in a commodity market that has rarely overlapped with crypto. The result is an alliance that attempts to link two financial worlds, one anchored in vaults, the other in code, at a time when investors are looking for steady ground.

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USDT hit $187B market cap as traders held capital in stable form instead of risk assets.

Crypto ETF outflows showed a cautious market, while stablecoin use kept rising.

Tether’s USDT user activity climbed to 24.8M as regulators pushed for tighter oversight.

Tether’s flagship stablecoin USDT ended 2025 at an unprecedented $187 billion in market capitalization, a size that now looms over every corner of the digital-asset landscape. The figure landed at a time when capital across the rest of the market seemed to move in the opposite direction. Traders who once favored high-beta exposure grew noticeably cautious, yet they did not withdraw entirely.

Instead, they parked funds in what amounts to crypto’s most liquid waiting room. This shift sharpened in the weeks after the October liquidation episode, when price action remained unstable, and sentiment thinned out. Even so, stablecoin circulation pushed higher. The pattern puzzled some analysts at first. But as numbers settled, it became harder to ignore: liquidity was gathering, not fleeing.

Liquidity Growth Amid Risk Aversion

By early February 2026, Tether’s circulating supply crossed $187 billion, reinforcing its position as the sector’s primary settlement token. Industry desks described the rise less as a rotation out of crypto and more as a pause, an extended one. Much of this liquidity appeared content to stay in stable form while traders assessed a market that had yet to find a firm footing.

Source: Tether

Tether also closed the year with its strongest stretch of user activity on record. Per reports, its Q4 market report showed roughly 24.8 million monthly active users, marking a steep climb from early 2024. That growth pushed USDT’s share of monthly active stablecoin users to 68.4%, an unusually wide spread during a period when participation across many trading venues drifted lower.

Source: Tether

The consistency of those increases, though, stood out. Liquidity was uneven almost everywhere else, yet USDT’s traffic kept advancing quarter after quarter. Even in a contracting market, demand for a stable unit of account held firm.

ETF Outflows Reveal a Cautious Market

The backdrop for this expansion was anything but favorable for risk assets. U.S. spot Bitcoin ETFs recorded more than $1.61 billion in net outflows last month, according to flow trackers, while Ethereum products saw more than $353.20 million leave over the same period.

Source: SoSoValue

The retreat didn’t end there. February began with additional losses, about $255.07 million from Bitcoin ETFs and $68.28 million from Ethereum vehicles. The contrast was hard to miss. Stablecoins were swelling while regulated investment products shrank.

Source: SoSoValue

Yet investors were not exiting the industry outright. They simply moved capital to a position where they could respond quickly if conditions shifted. Consequently, the rhythm of flows suggested hesitation rather than surrender.

Related: Vitalik Buterin Warns Ethereum Builders Against Clone Chains

User Activity Expands Despite Market Stress

On-chain data pointed to a user base that did not meaningfully shrink, even as speculative volume cooled. Analysts reported that activity in USDT resembled functional usage, payments, transfers, and hedging, rather than short bursts tied to arbitrage cycles.

The sequence of growth, coming after repeated liquidity shocks, gave the token an outsized role in stabilizing market activity through late 2025. Meanwhile, this rise unfolded while regulatory debate sharpened. In Washington, the GENIUS Act remained the central reference point in discussions over how stablecoin issuers should operate.

New York officials, however, took a more confrontational stance. A letter signed by Attorney General Letitia James and four district attorneys, including Manhattan’s Alvin Bragg, warned that the measure risked granting legitimacy without matching safeguards.

Their concern focused on consumer protection and oversight gaps linked to illicit finance and fraud. The timing of the criticism ensured the regulatory conversation would shadow the sector just as its largest token reached a new scale.

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A Polymarket bot has gained over $558K through nonstop trades and rapid execution.

The bot uses imbalance gaps to lock profit instead of predicting event results.

Arbitrage lets the bot win when YES and NO cost under $1, as one side always settles at $1.

A single automated trading account is reshaping perceptions around performance on Polymarket after publicly available data showed it generated more than $500K in cumulative profit in just over a month. The account’s activity, shared widely by crypto commentator OxMarioNawfal, has drawn attention not because of bold predictions, but because of how methodical and mechanical its strategy appears to be.

Somebody created an AI agent to trade Polymarket predictions and is making $500K / month

The agent has executed 11,420 predictions at 380 trades per day pic.twitter.com/TxHdfVCHWd

— 0xMarioNawfal (@RoundtableSpace) February 4, 2026

Dashboard data visible on the platform shows the account, operating under the wallet alias k9Q2mX4L8A7ZP3R, joined in December 2025 and has since executed more than 11,420 individual trades. That pace translates to roughly 380 trades per day.

Despite the volume, the account’s current open positions total about $47.6K, while its largest single winning trade exceeded $23K. Its all-time profit now stands at roughly $558,024, placing it among the most profitable addresses on the platform.

High Volume, Not High Conviction

The trading pattern stands in contrast to how most users participate on Polymarket. On-chain metrics and community dashboards show that fewer than 1% of wallets earn more than $1,000 in lifetime profit.

Per reports, most participants place occasional bets tied to elections, court rulings, or macroeconomic releases, often based on news headlines or personal interpretation of events. By comparison, the automated account does not appear to rely on high-conviction positions.

The sheer number of trades suggests it is not waiting for major outcomes to play out. Instead, it repeatedly enters and exits positions across many markets, capturing small price discrepancies that emerge throughout the day. Over thousands of trades, those marginal gains compound into substantial returns.

Arbitrage Over Forecasting

A separate analysis from CyberK offered a glimpse into the engine behind these results. In simple terms, binary markets settle at $1 for whichever side, YES or NO, wins. The method at play involves building exposure to both sides when their combined cost slips below that threshold.

For example, if YES shares are acquired at an average price of $0.48 and NO shares at $0.49, the total cost is $0.97. At settlement, one side pays out $1.00, guaranteeing a $0.03 gain per share. This approach removes the need to forecast outcomes. As a result, the system is not predicting events anymore; it is exploiting temporary imbalances in pricing.

Such an effect doesn’t require perfect timing, as inefficiencies can emerge during volatile periods, sudden shifts in liquidity, or brief delays in price updates following external news. Thus, the automated strategy continuously scans for these moments and executes instantly, something manual traders cannot replicate at scale.

Speed as the Competitive Edge

That speed advantage matters because Polymarket prices update continuously as orders land. The platform behaves more like a live order book than a polling barometer. Minor swings in sentiment or imbalance can create small dislocations that last seconds, sometimes less. A human trader scrolling through charts can’t match that pace even on their most attentive days. 

Leaderboards reinforce the trend. The top-performing addresses share similar traits: high trade counts, low directional conviction, and steady profit curves. Their returns are built on execution more than forecast accuracy, a shift that complicates assumptions about what prediction markets reward.

Related: Vitalik Signals New Path as Ethereum Layer One Expands Fast

A Shift in Market Dynamics

The rise of automated behavior suggests the center of gravity on Polymarket is drifting. Human traders still drive most of the conversation and liquidity, yet the consistent winners increasingly appear to be those running disciplined, rapid-fire workflows. Consequently, the gap is widening, and for many users, the findings help explain why strong opinions do not always translate into strong returns.

However, what this episode makes clear is that the standout performer on Polymarket is not the trader with the boldest thesis, but the system that never hesitates, never idles, and treats inefficiency, not prediction, as its core opportunity.

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Vitalik Buterin warns that clone EVM chains may slow Ethereum progress over time.

The Co-Founder says Ethereum scaling can support growth without endless new layer ones.

Vitalik Buterin also urges builders to explore privacy speed and novel execution models.

Vitalik Buterin has warned Ethereum developers against building copy-paste EVM chains and superficial layer-2 links, saying the trend risks slowing innovation as the ecosystem continues to scale. In a post on X, Buterin said reactions to his recent layer-2 comments exposed a deeper issue, as many projects repeat familiar designs instead of exploring new technical directions. 

He focused on teams launching EVM-compatible chains linked to Ethereum through optimistic bridges with week-long withdrawal delays, describing the pattern as convenient but creatively limiting.

Have been following reactions to what I said about L2s about 1.5 days ago.

One important thing that I believe is: "make yet another EVM chain and add an optimistic bridge to Ethereum with a 1 week delay" is to infra what forking Compound is to governance – something we've done…

— vitalik.eth (@VitalikButerin) February 5, 2026

Concerns Over EVM Chains and Optimistic Bridges

Buterin compared the current trend to early DeFi governance forks, such as projects that copied models from Compound, which once appeared productive but later constrained experimentation.

He wrote that building an EVM chain without an optimistic bridge is even worse, adding that Ethereum does not need more copypasta EVM chains or additional layer-1 networks. According to Buterin, the Ethereum base layer already scales and will deliver more EVM blockspace over time, which reduces the need for repeated network replicas.

At the same time, he noted that blockspace will not remain unlimited, especially as AI-driven applications demand lower latency and higher throughput across networks. Still, he argued Ethereum can support many use cases without fragmenting into countless independent layer-1 chains that weaken composability.

Preferred App Chain and Institutional Models

In a recent blog post, Buterin said he supports some designs often described as app chains, especially those deeply integrated with Ethereum’s base layer. He described a prediction market model where issuance and resolution occur on the Ethereum mainnet, while trading executes on a rollup that verifies activity directly from layer-1.

According to Buterin, such systems treat Ethereum integration as a core feature, not an afterthought added later to satisfy ecosystem benchmarks. He also discussed a different model involving institutions like governments or platforms publishing cryptographic proofs of database updates on-chain using STARKs.

Buterin said this structure would not be credibly neutral or trustless, since operators could change rules, but it could enable verifiable algorithmic transparency. He added that this transparency could support economic activity otherwise impossible in government registries or social media systems.

Related: Vitalik Buterin Calls for Creator DAO to Lift Crypto Content Standards

Governance and the Future Direction of Ethereum

Beyond technical design, Buterin has raised concerns about how Ethereum governance decisions take shape across the ecosystem. In an earlier blog post, he argued governance should rely less on informal sentiment and more on structured and accountable processes.

Within this context, he urged developers to build systems that introduce new capabilities, including privacy-focused designs, application-specific efficiency, and ultra-low latency execution. He also criticised projects that present themselves as closely tied to Ethereum while maintaining only minimal technical connections to the base layer.

Reactions across the ecosystem have varied, as some developers support a move toward specialised systems, while others say scaling and cost reduction remain top priorities.

As these debates continue, one question now shapes discussion across the ecosystem: can Ethereum’s next phase balance scaling progress with truly original design choices?

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Incognito Market enabled more than 640000 drug trades across a vast dark web network.

Prosecutors linked fentanyl laced pills sold online to a fatal overdose in Arkansas.

Investigators traced Incognito Market domains to Lin using real-world identity data.

Federal prosecutors in New York secured a 30-year prison sentence against Rui-Siang Lin for running Incognito Market, a dark web narcotics marketplace that sold over $105 million in illegal drugs worldwide. Jay Clayton announced the sentence after Lin pleaded guilty in December 2024 before U.S. District Judge Colleen McMahon.

Prosecutors said Lin owned and operated Incognito Market from October 2020 until its shutdown in March 2024, enabling hundreds of thousands of drug transactions across global networks. At sentencing, Clayton said Lin used the internet to distribute more than one ton of narcotics while earning millions and contributing to widespread harm, including at least one confirmed overdose death.

Incognito Market owner sentenced to 30 years. “Lin orchestrated more than $105 million in online sales of illegal drugs, harming hundreds of thousands,” said U.S. Attorney Jay Clayton.https://t.co/rR1rTZCViA

— US Attorney SDNY (@SDNYnews) February 3, 2026

Can advanced technology ever shield large-scale criminal networks from accountability in the digital age?

A Dark Web Marketplace With Global Reach

According to a recent DOJ press release, Incognito Market operated on the dark web and allowed access through the Tor browser to users across the world with internet connectivity. Lin ran the platform under the alias “Pharaoh” and controlled all decisions involving vendors, buyers, site policies, and technical operations.

Under his leadership, the marketplace grew to more than 400,000 buyer accounts and supported over 1,800 vendors, many of whom operated as established drug traffickers. Investigators said the platform facilitated more than 640,000 individual drug transactions during its four-year operation.

Sales included over 1,000 kilograms of cocaine, more than 1,000 kilograms of methamphetamine, hundreds of kilograms of other drugs, and pills sold as prescription medication. In January 2022, Lin approved a policy that allowed vendors to sell opiates, expanding the site’s listings to include drugs marketed as authentic pharmaceuticals.

Fentanyl Sales and a Fatal Overdose

Law enforcement later confirmed that some pills advertised as oxycodone contained fentanyl instead of the listed medication. In November 2023, an undercover agent purchased tablets from Incognito Market that testing later identified as fentanyl rather than oxycodone.

Authorities linked similar pills to the death of a 27-year-old Arkansas resident in September 2022 after he consumed drugs purchased on the platform.

Prosecutors stated that Lin authorized opiate sales, which allowed vendors to sell dangerous counterfeit drugs throughout the marketplace. The Incognito Market platform functioned like a genuine e-commerce website because it provided branding solutions, customer service, and dispute-resolution systems.

 The prosecutors described this design as a tool that enabled users to conduct extensive drug transactions while their illegal activities remained hidden through common internet designs.

Related: Hackers Sell Gemini and Binance User Data on Darkweb: Report

Investigation, Forfeitures, and Broader Enforcement

According to court filings, investigators traced Incognito Market’s domain registration to Lin after he used his real name, phone number, and address during setup. Taiwanese media reported that Lin studied at National Taiwan University and later completed alternative civilian service in St. Lucia, where he worked in technical assistance roles.

During that period, reports said Lin sometimes taught local police about cybercrime and cryptocurrency investigations. The sentencing followed recent Justice Department actions against other darknet operations, including the finalized forfeiture of more than $400 million tied to the Helix crypto mixer.

On the other hand, other prosecutions are like Helix operator Larry Dean Harmon, who pleaded guilty in 2021 and received a three-year prison sentence in November 2024. Earlier cases included a June 2025 seizure of 145 domains and cryptocurrency linked to BidenCash, plus a 2023 recovery action targeting assets tied to New Jersey trafficker Christopher Castelluzzo.

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SBI and Startale launched Strium to test on-chain trading for tokenized and FX assets.

The platform supports non-stop spot and derivatives markets without direct asset 

Strium targets institutional capital markets through a permissioned blockchain design.

Startale Group and SBI Holdings have unveiled Strium Network, a joint venture platform aimed at building Asia’s exchange layer for tokenized securities and on-chain real-world assets. The announcement marks the first major milestone from their strategic partnership disclosed in August 2025. Strium introduces a platform vision focused on enabling trading and settlement for tokenized equities and RWA-linked instruments through a permissioned blockchain design. 

The companies said a proof of concept now stands ready to demonstrate core capabilities and validate the platform’s institutional approach. The project combines SBI’s regulated financial infrastructure with Startale’s blockchain stack. Together, the partners aim to explore how traditional assets such as equities and foreign exchange can move on-chain without abandoning established institutional standards.

A Platform Built for Onchain Capital Markets

In the company’s blogpost, the partners said Strium represents a shared effort to develop a purpose-built exchange layer for tokenized securities. The design supports 24/7 spot and derivatives markets tied to equities and real-world assets.

Unlike crypto native perpetual platforms that focus on digital assets, Strium targets global capital markets through a blockchain-native exchange architecture. The platform avoids direct asset issuance or custody while aiming to support faster market formation and scalable global access.

Sota Watanabe, CEO of Startale Group, said tokenization remains an inevitable trend and described equities tokenization as the next major market. He added that Strium seeks to bridge off-chain finance and on-chain systems by enabling compliant dividend and royalty payments.

Institutional Reach and Market Structure Shift

Strium draws on SBI Holdings’ ecosystem of more than 80 million customers and its experience across securities, banking, and financial services. This positions the platform to connect institutional demand with professional trading activity and real-world market participation.

Its blockchain-native exchange architecture enables faster market formation, deeper liquidity and scalable global access independent of traditional banking hours. Drawing on SBI Holdings’ 80M+ customer network and deep expertise across securities, banking, and financial services,…

— Startale (@StartaleGroup) February 5, 2026

Startale Group said recent developments show growing momentum toward on-chain trading, real-time settlement, tokenized shareholder rights, and on-chain RWAs. In response, Strium enables securities-linked spot and derivatives markets that operate beyond traditional banking hours.

The platform enables ongoing trading operations through its native on-chain mechanisms, which provide accelerated price discovery and support expandable liquidity. The current system design demonstrates a general trend that enables trading systems to operate independently from traditional asset issuance restrictions while still connected to current financial networks.

Technical Roadmap and Regulatory Path

The current proof-of-concept phase focuses on settlement efficiency, system resilience under heavy transaction loads, and interoperability with both legacy systems and other blockchains. A public testnet stands as the next planned step toward commercial deployment.

Watanabe said SBI Holdings brings regulated infrastructure and multiple licensed entities into the venture. He noted prior participation by group companies in regulated digital asset initiatives, including a planned yen stablecoin structure involving Shinsei Trust & Banking and SBI VC Trade.

Related: SBI and Startale Plan Regulated Yen Stablecoin for 2026

He added that discussions with regulators, including in Japan, will take place as the project expands into individual markets. While no commercial launch date has been announced, the developers continue to prepare public testnets to refine scalability and compliance workflows.

Strium positions itself as the core exchange layer for Asia’s on-chain securities market, with an architecture designed to support future participation by AI agents executing strategies directly on-chain. Can regulated blockchain infrastructure support tokenized equities and FX at institutional scale without sacrificing control, transparency, and regulatory assurance?

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Ethereum layer one scaling weakens the vision that placed layer two at the centre.

Base says layer two networks must evolve beyond lower fees to serve the ecosystem.

Vitalik supports native rollups and zero-knowledge systems as Ethereum capacity rises.

Ethereum’s co-founder Vitalik Buterin said recent developments have forced a reassessment of Layer 2 networks as Ethereum’s base layer scales faster than expected. He shared the view on X. In his post, Buterin pointed to two developments shaping the debate. He cited slower-than-expected progress toward stage 2 rollups. He also cited rapid Layer 1 scaling, low fees, and large gas limit increases projected for 2026.

There have recently been some discussions on the ongoing role of L2s in the Ethereum ecosystem, especially in the face of two facts:

* L2s' progress to stage 2 (and, secondarily, on interop) has been far slower and more difficult than originally expected
* L1 itself is scaling,…

— vitalik.eth (@VitalikButerin) February 3, 2026

Together, these shifts challenge the original rollup-centric roadmap. Buterin said the earlier vision of L2s no longer fits Ethereum’s current direction. The comments triggered immediate discussion across the ecosystem.

Vitalik Buterin Revisits the Original Rollup Vision

Buterin recapped Ethereum’s earlier scaling goal. He said Ethereum scaling meant creating large amounts of block space secured directly by Ethereum’s guarantees. This included validity, censorship resistance, and finality. He stated that systems relying on multisig bridges fail that definition. According to Buterin, a high-throughput chain loosely connected to Ethereum does not scale Ethereum itself.

He added that Layer 1 scaling now reduces the need for L2s as “branded shards.” Ethereum no longer depends on L2s to supply trusted block space. Instead, L1 itself continues to expand capacity.

Buterin also noted that some L2s do not plan to reach stage 2. He said regulatory needs push certain projects to retain control. He stated this approach may suit customers, but it does not align with Ethereum scaling. He concluded that this divergence is acceptable. Ethereum’s roadmap now includes direct L1 scaling with significant gas limit increases planned this year and beyond.

Jesse Pollak Responds With Base’s Position

Base co-founder Jesse Pollak responded publicly on X following Buterin’s comments. He said Ethereum scaling at L1 benefits the entire ecosystem. Pollak stated that L2s cannot succeed by offering lower fees alone. He said Base has focused on onboarding users, developers, and applications since launch.

it’s great to see ethereum scaling L1 – this is a win for the entire ecosystem.

going forward, L2s can’t just be “ethereum but cheaper.” that's why from the beginning of base we've shown up everyday to onboard new users, developers, and apps, push the technology forward, and do… https://t.co/1Sh2fwJHrY

— jesse.base.eth (@jessepollak) February 3, 2026

He added that Base works to grow Ethereum symbiotically. According to Pollak, this approach supports long-term ecosystem health rather than isolated gains.

Pollak said Base benefits from Ethereum’s security and infrastructure. This allows the team to focus on products and real-world use cases. He listed trading, social platforms, gaming, creators, and prediction markets. He also confirmed that Base reached stage 1 last year.

He said the team is accelerating work toward safely reaching stage 2 while addressing technical complexity. Pollak said Base will continue pursuing its mission. He described the goal as building a global economy that increases innovation, creativity, and freedom.

Related: Ethereum Adopts Austerity Framework to Safeguard Core Protocol

Native Rollups and ZK Technology Gain Attention

As Ethereum’s base layer strengthens, attention has shifted toward native rollups. These rollups integrate more deeply into the Ethereum protocol. Buterin has expressed growing support for native rollups. He has shown particular interest in zero-knowledge proof systems.

ZK-EVM development plays a central role in this shift. It could allow closer integration between rollups and Ethereum’s base layer. This approach aims to streamline scaling while preserving decentralization and security. Buterin has said this direction aligns better with Ethereum’s long-term goals. Pollak echoed support for cooperation. He said Base is leaning into differentiation, supported by the Ethereum Foundation.

He cited work on native account abstraction, privacy, and scaling. He said Base remains committed to working with Ethereum to build the onchain future. As Ethereum scales directly at Layer 1, will the ecosystem redefine how Layer 2 networks create value?

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Galaxy Digital posted a 482 million dollar Q4 loss, driven by falling digital asset prices.

The Company’s Full-year losses totaled $241 million, including one-time operating costs.

By the end of the previous year, the company had $2.6 billion in stablecoins and cash.

Galaxy Digital posted a net loss of $482 million in the fourth quarter of 2025 as falling digital asset prices weighed on results. The firm also reported a $241 million loss for the full year, according to quarterly financial statements released Tuesday. Galaxy said lower cryptocurrency prices and one-time costs drove the losses, even as it reported strong adjusted gross profit and a sizeable cash position.

The company said digital asset depreciation accounted for most fourth-quarter losses. For the full year, Galaxy cited lower prices and about $160 million in one-time costs. Bitcoin fell about 20% during the fourth quarter of 2025, pressuring trading and investment activity.

Shares of the company traded near $22.60 as investors reviewed the results. Revenue reached $10.2 billion, which fell short of the $12 billion analysts expected. Adjusted earnings per share showed a loss of $1.08, compared with forecasts near a $0.99 loss.

Market Pressures and Executive Commentary

Galaxy CEO Michael Novogratz described the market backdrop as difficult during a shareholder update call on Tuesday. “You have the crypto coins — Bitcoin, Ethereum, Solana, you name ‘em — have been in a bear market,” Novogratz said. He added that long market cycles form a core feature of the digital asset sector.

Novogratz said Bitcoin trades near the lower end of its historical range. “I do think that we’re in the lower end of the range,” he told shareholders. He said industry participants often focus and prepare during periods of stress.

LATEST: MIKE Mike Novogratz’s Galaxy Digital posted a $482M net loss in Q4 2025, hit by falling crypto prices and $160M in one-time restructuring expenses.

Despite the loss, the firm delivered $426M in full-year adjusted gross profit and ended 2025 with $2.6B cash in-hand. pic.twitter.com/0jMw1uR7Z9

— Coin Bureau (@coinbureau) February 4, 2026

The broader market showed mixed movement following a recent crash. Bitcoin lost more than 2.5% in the last 24 hours, while Ether dropped 4.1%. Crypto equities traded slightly negative after earlier gains in pre-market trading.

Balance Sheet Strength and Business Activity

Despite losses, Galaxy reported an adjusted gross profit of $426 million for the full year 2025. The firm ended the year with $2.6 billion in cash and stablecoins. It also reported $12 billion in total platform assets.

Galaxy said its asset management arm recorded $2 billion in net inflows during 2025. The company attributed inflows to demand for diversified trading and advisory services. These services span trading, asset management, and institutional strategy support.

Can a strong balance sheet offset earnings pressure during an extended digital asset downturn? Galaxy pointed to liquidity as protection against market swings. The firm framed its capital position as support for ongoing operations and investment plans.

Related: Galaxy Digital Eyes Liquidity Role in Prediction Markets

Expansion Plans and Sector Comparisons

Galaxy said it continues to advance long-term diversification efforts. In August, the firm accelerated plans for an artificial intelligence data centre in Texas. In January, the Electric Reliability Council of Texas approved an extra 830 megawatts of power.

That approval raised total permitted capacity above 1.6 gigawatts. Galaxy said the project aligns with broader infrastructure expansion goals. The company linked the initiative to future revenue diversification.

Elsewhere in the sector, SoFi Technologies reported $1 billion in fourth-quarter revenue on Friday. Securitize Holdings said revenue rose more than 840% through September 2025. Securitize reported the increase as it prepared for an initial public offering.

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WisdomTree scaled tokenized assets from 30 million to 750 million in one year alone.

CEO Jonathan Steinberg says crypto is core and aims for near-term profitability.

Strong ETF earnings fund digital expansion despite weak crypto market sentiment today.

WisdomTree has positioned cryptocurrency as a core business, not an experiment, as its digital asset unit moves closer to profitability, according to CEO Jonathan Steinberg. Speaking Tuesday at the Ondo Summit in New York, Steinberg said the firm now operates with long-term conviction in blockchain infrastructure. The asset manager oversees about $150 billion in assets and has scaled its tokenized offerings rapidly over the past year. 

The shift reflects a broader strategic effort to build digital finance alongside its profitable exchange-traded fund business. The key question now is simple: how fast can scale turn conviction into sustainable profit?

Crypto Growth Moves From Pilot to Core Strategy

Steinberg said WisdomTree’s digital asset push now sits at the center of its strategy. He told attendees the firm plans to keep scaling its crypto operations after rapid asset growth. “We want to continue to scale,” Steinberg said during the fireside chat. He noted that tokenized assets rose from about $30 million last year to roughly $750 million.

He added that the business does not yet generate profit. Still, he said the firm remains “in line of sight of taking this to a profitable business,” signaling progress toward commercial viability.

WisdomTree has invested heavily in blockchain infrastructure. The firm launched tokenized funds and expanded support to new networks, including Solana. Steinberg said the effort reflects long-term belief rather than short-term market cycles. “It’s still early days, but it’s not an experiment now,” he said. “We have conviction.”

During its latest earnings presentation, the firm reported that total tokenized assets reached $770 million. That figure marked a 25-fold increase from 2024, reinforcing internal momentum.

Profitable ETF Business Funds the Digital Push

While crypto scales, the ETF business remains the primary profit engine. Last quarter, WisdomTree generated $40.0 million in net income. Adjusted earnings per share rose 71% year over year. Operating margins expanded by nearly 300 basis points, supported by $8.5 billion in net inflows. That performance lifted market confidence. The stock trades near $16.45 after the results, following a price target increase to $21.00 from Oppenheimer

WisdomTree moved early on blockchain infrastructure through its acquisition of Securrency. The firm later sold the compliance-focused tokenization company to the DTCC. Steinberg described the move as foundational. He said it enabled “compliance-aware tokens” and programmable finance across platforms. He framed crypto as broader than asset management. “This is bigger than asset management,” Steinberg said. “This is really about financial services.”

Related: SBI Deepens Ties With Chainlink to Power Tokenized Assets

Market Risks and Adoption Headwinds

The digital strategy carries clear risks. Crypto remains capital-intensive and does not yet contribute profits, despite sharp growth in tokenized assets. Market sentiment also remains weak. The Fear and Greed index stands at 17 out of 100, signaling extreme fear across crypto markets. Liquidity remains fragile as well. Crypto futures open interest holds near $110 billion, a multimonth low, increasing sensitivity to volatility, and slowing institutional adoption.

For now, WisdomTree’s statement that cryptocurrency is a core business underscores a strategic embrace of digital finance and reflects growing recognition of blockchain’s role in the future of investing. Investors and industry watchers will likely monitor how this commitment unfolds as market conditions and regulatory landscapes continue to change.

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Diamond firms move $280M in polished stones onto XRPL through Ripple Custody

On-chain records now secure grading origin and ownership for the UAE-based diamond trade

XRPL tokenization expands as regulatory clearance shapes the platform’s next phase

Billiton Diamond and Ctrl Alt have shifted more than $280 million worth of certified polished diamonds onto the XRP Ledger, pushing tightly managed commodities into a digital environment that promises clearer provenance and faster settlement.

The move places over AED 1 billion in physical stones under Ripple custody, with each diamond tied to a token minted on-chain and backed by recorded certification data. The companies described the system less as a flashy experiment and more as an industrial pipeline built for traders who deal in high-value stones every day.

Ripple is proud to support Billiton Diamond and @CtrlAltCo who have tokenized over AED 1 billion ($280m) of certified polished diamonds on the XRPL.

This initiative shows how @Ripple's technology can bridge the gap between physical assets and the digital economy, utilising our…

— Reece Merrick (@reece_merrick) February 3, 2026

Each token reflects an individual diamond stored in the UAE, allowing buyers and brokers to trace grading, origin, and ownership history before completing any transaction. Still, the initiative remains in a preparatory phase, with wider rollout dependent on approval from Dubai’s Virtual Assets Regulatory Authority.

Diamonds Shift to an On-Chain Framework

Based on reports, Ctrl Alt is running the full tokenization process, minting tokens on the XRP Ledger and anchoring physical inventory through a verification layer supported by Ripple Custody. That combination creates a shared record for market participants, who can inspect stone metadata in real time rather than depend on separate documentation trails.

Billiton Diamond, on the other hand, which has long operated with a Vickrey auction model for price discovery, said the leap to on-chain systems aims to bring post-polishing transparency to a segment of the market that often lags in traceability. Executives noted that blockchain does not rewrite auction mechanics but strengthens how information follows a stone once it has entered commercial trade.

Regulatory Clearance Defines the Next Stretch

The partners acknowledged that the broader platform is not yet open for distribution. Any expansion hinges on VARA’s regulatory sign-off, a requirement that has shaped nearly every digital-asset rollout in Dubai. For now, however, the infrastructure is in place, and the technical rails are functioning, but the commercial layer remains parked until regulators complete their assessment.

Ripple’s joint efforts with Ctrl Alt date back to mid-2025 and followed Ctrl Alt’s involvement in the Dubai Land Department’s asset digitization initiative. The firm has since grown its valuation to roughly $348 million, supported by rising interest in regulated tokenization across real estate and commodities markets.

Industry Links Support the Tokenization Push

Dubai’s shift toward blockchain-based commodity infrastructure has involved coordinated work among the Dubai Multi Commodities Centre, technology firms, and traders. Therefore, the diamond project fits into that emerging ecosystem.

Officials familiar with the process said the aim is to create frameworks that can support large-scale tokenization without disrupting established commodity flows. The forthcoming platform is expected to provide real-time inventory tracking tied directly to on-chain entries.

Certification records will travel with each token, giving traders a clearer picture of what they are acquiring before moving to settlement. The partners believe this structure will cut down on reconciliation tasks that typically slow cross-border diamond transactions.

Related: Tether Launches MiningOS to Open Bitcoin Mining Infrastructure

XRPL’s Tokenization Growth Sets the Backdrop

The initiative arrives during a period of strong tokenization growth on the XRP Ledger. Aggregate data shows tokenized assets on the network rising from $24.7 million in early 2025 to about $567.9 million by year-end, a nearly 2,000 percent increase. As of this reporting, XRPL’s represented asset value was nearing $1.5 billion, while real-world asset tokens sat at around $220 million.

Ripple also reported that its RLUSD stablecoin has reached roughly $1.3 billion in circulation, alongside about $500 million in tokenized assets held on the chain more broadly. With Billiton Diamond and Ctrl Alt now adding $280 million in polished stones to that base, the project stands out as one of the largest commodity-linked deployments on XRPL to date.

Executives involved in the rollout said the reliance on Ripple Custody signals a growing comfort with securing high-value physical assets at an institutional scale. They framed the venture as a step toward more efficient commodity markets, backed by verifiable records that follow each stone across every trade.

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MiningOS launches as an open source platform built to serve home miners and large firms.

MiningOS uses peer-to-peer networks to manage mining fleets without centralized platforms.

Tether expands its role in Bitcoin infrastructure through open software and a clear vision.

Tether has introduced MiningOS, known as MOS, an open-source operating system designed to support Bitcoin mining operations across different scales. The company said the platform targets both individual miners and large institutions seeking flexible and transparent software to manage mining infrastructure without proprietary restrictions. MOS arrives as a modular and scalable system that allows operators to control hardware and performance tools without relying on centralized third-party services or closed software environments.

Bitcoin Mining is complex.
Mining OS by Tether (MOS) makes it simple.

Introducing MOS — the open-source operating system for real mining infrastructure.

Modular. Scalable. Built for energy + hardware + data.

Explore the Documentation: https://t.co/3zcBHFFzRp
Join our… pic.twitter.com/G0GwbtfLKT

— Tether (@tether) February 2, 2026

Tether described the release as part of its broader involvement in crypto infrastructure, extending beyond stablecoin issuance into mining software, network support, and long-term system resilience. The system seeks to remove what the company called the “black box” structure of many mining setups, where monitoring tools and hardware remain locked into vendor-controlled platforms.

Can open-source mining software reshape how Bitcoin infrastructure develops over the next decade?

MiningOS Focuses on Transparency and Control

MOS operates through a self-hosted architecture that communicates with mining devices using an integrated peer-to-peer network built on Holepunch protocols. According to Tether, this design allows miners to manage operations independently, without routing data through centralized cloud services or external management platforms.

The system allows configuration changes through a companion interface that adapts to different operational scales, from small home setups to large multi-site mining facilities. Tether stated that MiningOS carries no vendor lock-in and remains free of third-party dependencies under the Apache 2.0 open-source license.

The company said the goal centers on collaboration and openness while giving operators direct visibility into fleet health, efficiency, and revenue performance. Paolo Ardoino described MOS as a complete operational platform that can scale from a single mining rig to industrial-grade operations spanning multiple geographies.

Open-Source Aligns With Broader Industry Moves

Tether first previewed plans for an open-source mining operating system in June last year, positioning MOS as a tool for new miners entering a competitive environment. The company argued that miners should not depend on expensive software vendors to compete in an industry shaped by rising difficulty and operational pressure.

The MiningOS release places Tether alongside other firms promoting open-source mining infrastructure, including initiatives supported by Block. Tether framed the project as a software-focused investment rather than a shift toward hardware ownership or direct operational expansion.

Related: Tether Quietly Evolves Into a Global Shadow Banking Power

Although the company reduced some mining activities in late 2025 due to higher energy costs, MOS centers on long-term infrastructure development rather than short-term capacity growth. The company also supports mining projects that prioritize operational efficiency and renewable energy use to maintain network sustainability.

Infrastructure Expansion Extends Beyond Mining

Tether expands its financial infrastructure operations throughout emerging markets through its partnerships, which extend beyond the MiningOS platform. The company established a new partnership with Opera, which enables MiniPay wallet users to access USDT and tokenized gold XAUT through their platform. 

The MiniPay system operates across 60 countries, has an active wallet base of 12.6 million users, and saw a 50% growth in the fourth quarter. This was made possible due to an expanding user base in emerging markets. 

MiniPay enables users to access dollar-backed digital assets, which can be used for various purposes in regions with volatile currencies. Ardoino explained that the initiative serves Tether’s purpose of creating value preservation instruments that users can trust throughout Africa, Latin America, and Southeast Asia. 

Tether Bitcoin

Tether Mining OS is now fully opensource.

A complete operational platform that can scale from a home setup to industrial grade site, even across multiple geographies.

Super modular, P2P encrypted networking layer.
It supports a long list of miners,… https://t.co/VzXywA6IZc

— Paolo Ardoino (@paoloardoino) February 2, 2026

Tether acquired 96,185 BTC by early 2026, approximately $8 billion, making Tether one of the biggest Bitcoin corporate holders worldwide. Tether achieved a net profit of $10 billion in 2025, indicating its crypto infrastructure, tokenization growth, and artificial intelligence and decentralized finance.

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Prosecutors argue the GENIUS Act legitimizes stablecoins without firm fraud defenses.

New York officials link stablecoin use to most illicit crypto activity in 2025 globally.

Tether and Circle policies draw focus as victims face delays in fund recovery efforts.

New York’s top prosecutors have warned that the GENIUS Act, the crypto industry’s first major U.S. law, fails to protect fraud victims and risks shielding companies that profit from wrongdoing. In a letter obtained by CNN, New York Attorney General Letitia James and four district attorneys, including Manhattan’s Alvin Bragg, argued that the law grants stablecoins unwarranted legitimacy.

They said the statute allows stablecoin issuers to avoid key regulatory duties needed to fight terrorism financing, drug trafficking, money laundering, and cryptocurrency fraud, raising fresh questions about consumer protection.

At the center of the dispute sits the GENIUS Act, signed into law in July as a bipartisan effort to regulate stablecoins. The law requires issuers to back each coin one-for-one with liquid assets like dollars or short-term Treasuries, mirroring bank-style reserve rules.

JUST IN: PROSECUTORS SOUND ALARM ON THE GENIUS ACT

New York Attorney General Letitia James and four district attorneys warn the GENIUS Act could “provide legal cover” for stablecoin fraud, per CNN.

They accuse Tether and Circle of being incentivized not to fully cooperate… pic.twitter.com/hGCCNsoS4c

— Coin Bureau (@coinbureau) February 2, 2026

Yet prosecutors argue that reserve requirements alone do not address how criminals use stablecoins at scale, especially across borders. If stablecoins now carry federal legitimacy, who bears responsibility when fraud victims cannot recover their losses?

Prosecutors Cite Illicit Finance Risks

New York prosecutors pointed to stablecoins’ growing role in illicit finance as a central weakness in the new framework. They cited a 2025 report from Chainalysis, which estimated that 84% of illicit crypto transaction volume involved stablecoins.

According to the letter, criminals favour stablecoins for cross-border transfers and lower volatility, which makes funds easier to move quickly. Prosecutors argued that the GENIUS Act lacks fraud prevention and restitution provisions that exist in traditional finance.

They said those gaps leave victims with limited recourse, even as stablecoins integrate further into mainstream financial activity. The letter warned that without stronger obligations, issuers can operate while sidestepping enforcement tools that authorities rely on in other markets.

Tether and Circle Face Scrutiny

The letter singled out Tether and Circle, the two largest stablecoin issuers by market value. Prosecutors said both firms earn interest on reserves that can include stolen customer funds, since they hold cash and yield-bearing Treasuries.

They noted that Tether has frozen stolen funds in some cases, though it claims no legal duty to comply with U.S. state processes. In a statement to The Block, Tether said it takes fraud and consumer harm seriously. Tether said it is not U.S.-domiciled and operates outside U.S. jurisdiction, yet it added that it voluntarily works with U.S. law enforcement at all levels.

Prosecutors described Circle as less responsive, saying it freezes funds only after receiving a signed judicial order or warrant. They warned that delays allow criminals to move or convert funds before authorities can act.

Circle executive Dante Disparte said the company prioritizes compliance with global and U.S. stablecoin regulations.

Related: FDIC Proposes First Stablecoin Rule Under GENIUS Act

Consumer Protection Questions Persist

For critics, the prosecutors’ letter reflects broader concerns about consumer safeguards in crypto markets. American University law professor Hilary J. Allen told CNN that basic protections common in traditional finance remain absent from the GENIUS Act.

She said traditional financial laws already addressed many risks, and the conflict stemmed from crypto business models rather than technology itself. Prosecutors echoed that view by warning that legitimacy without accountability could deepen harm to fraud victims.

They urged lawmakers to reconsider whether the current framework truly matches the risks now tied to stablecoins.

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Cboe studies all-or-none options as regulated tools for fast-growing event trading.

Prediction markets post volumes as platforms expand into politics, sports, and worldwide.

Cboe reviews modern binary designs under US oversight, with talks still at early stages.

Cboe Global Markets has confirmed it is developing an options-based product with all-or-none payouts, a move that could place it against fast-growing prediction markets. The exchange has entered early discussions with brokerages and market makers on product mechanics, according to a Wall Street Journal report, while no launch timeline exists.

Cboe already dominates listed options trading and created the Cboe Volatility Index, or VIX, which anchors its reputation within traditional derivatives markets. At the same time, event-driven trading demand has surged. Platforms that offer simple outcome contracts now attract both retail and professional traders seeking defined risk structures.

Prediction markets typically price contracts between $0.01 and $0.99 and settle at $1 for the correct outcome, creating clear payouts without multi-leg strategies. The Cboe has presented its project as an experimental initiative while indicating its intent to create a regulated exchange to meet growing market demand.

Prediction Markets Reach Record Volumes

Prediction markets have established themselves as a major force across three domains, which include politics, sports, and macroeconomic events. The Block reported that Kalshi and Polymarket together achieved a total trading volume of $17 billion during January.

Source: The Block

That total marked a record month and followed several consecutive periods of growth across the sector. Research firms have taken note. Galaxy Research described prediction markets as entering a new phase of mainstream visibility and capital formation, while pointing to ongoing liquidity constraints.

Major trading platforms have developed their operations to approach the cryptocurrency market. Coinbase established a new prediction market through its collaboration with Kalshi, which enables retail users to access its trading platform. Established exchanges now examine event-based contracts because they present a regulated alternative to traditional trading methods.

Cboe Revisits Binary Options With a Modern Lens

Cboe has previous experience with binary-style instruments. In 2008, it launched binary call options tied to the S&P 500 and VIX. Those products allowed traders to bet on whether indexes closed above specific levels, yet adoption lagged, and Cboe later delisted them.

According to a person familiar with the discussions, the current effort does not revive those earlier contracts. Instead, Cboe is exploring updated structures that focus on clearer terms, improved access, and broader appeal for both retail and institutional traders.

Any new listing would operate under U.S. securities or derivatives oversight, separating it from offshore or lightly regulated prediction platforms. Cboe is also speaking with market makers to support execution, according to the WSJ, as it considers applying traditional exchange infrastructure to event-based trading.

Related: Cboe to List Continuous Bitcoin, Ether Futures from November

Would traders favour the flexibility of prediction markets or the regulatory clarity of an exchange-listed contract? Retailers maintain an active presence in options markets because individual investors create substantial daily trading volume. The group shows strong interest in simple outcome contracts, which Cboe now studies for their potential to develop products that maintain their current value payouts while removing all complex elements. 

The current stage of discussions remains at introductory levels because both parties need to obtain regulatory approval for any future development work.

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India introduces daily fines for crypto platforms that miss required transaction filings.

Misreported crypto data now triggers a fixed financial penalty under new tax rules.

The budget keeps crypto tax rates unchanged while expanding reporting enforcement.

India’s Union Budget for 2026 sets out new penalties for the cryptocurrency sector, tightening rules around how platforms report transaction data. The changes target exchanges and other intermediaries that handle crypto assets and fall under existing tax reporting laws. The Finance Bill 2026 amendments present the proposed measures. The implementation of the Income Tax Act 2025, which replaces the previous tax system, creates the new tax regulations. The new penalty system will begin on April 1, 2026.

NEW: Govt announces new penalties for crypto sector in 2026 budget.

Crypto platforms must now report transactions properly, or face fines:
• ₹200 per day for non-filing
• ₹50,000 for misreporting

Rules apply from April 1, 2026

— Crypto India (@CryptooIndia) February 1, 2026

The update centres its focus on establishing reporting standards. Authorities require crypto platforms to submit exact transaction reports without delay, while they must fix all identified mistakes. The current system establishes immediate monetary penalties for noncompliance.

The government maintains its existing taxation system for cryptocurrency profits. The government has concentrated its efforts on enforcing laws and monitoring reporting practices.

Daily Fines and Fixed Charges Explained

The proposal applies to reporting entities covered under Section 509 of the Income Tax Act. These entities must furnish statements linked to crypto-asset transactions within the prescribed period.

When a required statement is not filed, the law imposes a penalty of ₹200 per day. The amount continues to accrue for as long as the default persists. There is no grace period once the obligation lapses. A separate penalty applies to incorrect disclosures. Filing inaccurate information or failing to correct errors after notification attracts a flat fine of ₹50,000.

These provisions are set out through amendments to Section 446 of the Act. The Memorandum Explaining the Provisions in the Finance Bill states that the objective is to strengthen compliance and discourage incomplete reporting. Together, the two penalties address both delay and accuracy. Platforms now face higher costs if they miss deadlines or submit flawed data.

Reporting Tightens While Taxes Stay Fixed

The authorities have strengthened enforcement procedures, which require reporting, yet the overall cryptocurrency tax framework remains the same. India maintains its tax system by applying a standard 30% tax rate to all profits generated from cryptocurrency transactions.

The 1% tax deducted at source on crypto trades also remains in place. Industry participants have repeatedly said this framework affects liquidity and pushes activity outside India.

The decision to leave taxes untouched disappointed parts of the domestic crypto sector. Several firms had expected some recalibration after months of engagement with policymakers. Market participants say the gap between rising compliance demands and unchanged tax burdens remains unresolved.

Related: India and EU Deal Could Shift Crypto Liquidity and Flows

Industry Reaction Reflects Uneven Impact

Reactions across the crypto industry have varied. Business leaders view the penalties as a means to establish a better understanding of regulatory requirements. The defined reporting duties and their associated penalties establish a basis that crypto platforms must follow to meet existing financial reporting standards. The regulated structured disclosures enable regulators to monitor operational activities through their complete record of activities.

Others focus on what the budget did not change. They note that existing tax rates and TDS rules continue to apply even as reporting obligations expand. “The current tax framework presents challenges for retail participants by taxing transactions without recognising losses,” Ashish Singhal, co-founder of CoinSwitch, said in an email.

He added that reducing TDS on virtual digital asset transactions from 1% to 0.01% could improve liquidity and ease compliance. Singhal also said raising the TDS threshold to ₹5 lakh would protect smaller investors. As the new penalties approach implementation, crypto platforms face tighter reporting rules under a tax structure that remains firmly in place.

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