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Analysis has emerged that it is still difficult to say the crypto market has clearly entered a bottom phase. The rationale presented was that investor sentiment on social media has not been sufficiently subdued. On the 21st (local time), according to Cointelegraph, Maksim Balashevich (Santiment) founder mentioned in a recently released video that Bitcoin's price could undergo further correction. He said of the current market mood, "There is not enough fear to judge that a bottom has been formed." Balashevich explained that it is difficult to rule out the possibility that Bitcoin could fall to around 75,000 dollars. This would correspond to an additional decline of about 14.77% from around 88,350 dollars at the time. He pointed to social media investor sentiment as the basis for this view. He said, "There are still many optimistic remarks that it will rebound immediately after the decline," adding, "This mood does not appear in a true bottom phase." He also added, "Crowd sentiment has not yet been sufficiently subdued." He cited as a warning factor that, particularly on retail investor-focused channels, there are increasing comments interpreting the Bank of Japan's monetary policy positively. Balashevich said, "After the Bank of Japan's change in interest rate policy, bearish commentators misjudged, and now there are many narratives that an upward phase will follow again," adding, "These signals are not positive for judging a bottom." The Bank of Japan recently raised its policy rate to 0.75%, marking the highest level in 30 years. In the past, during BOJ rate-hiking phases, Bitcoin has also experienced about a 20% correction. However, he added that further correction does not necessarily mean only negative circumstances. Balashevich said, "If the price falls to that range, it could actually create a very favorable environment for traders." Other experts' views are mixed. Jurrien Timmer, Fidelity Global Macro Research Director, recently mentioned that Bitcoin could undergo a period of correction in 2026, with a possibility of the price falling to around 65,000 dollars. On the other hand, Matt Hougan, Bitwise Chief Investment Officer (CIO), forecasted 2026 to be a Bitcoin-friendly year. Market indicators are sending mixed signals. The Crypto Fear & Greed Index has remained in the 'Extreme Fear' zone since December 14, and the recent reading was 20. The Altcoin Season Index also scored 17 out of 100, indicating a Bitcoin-centered defensive market trend.

Ethereum has drawn market attention as institutions and large holders continue to move funds following a recent price rebound. Amid an upward trend after the Bank of Japan's benchmark rate increase, a large amount of Ethereum was confirmed to have moved to exchanges. On the 21st (local time), AMB Crypto reported that on-chain data tracker Onchain Lens said BlackRock deposited 36,579 ETH to Coinbase over the past 24 hours. The amount was roughly $108.4 million at the time. In the same period, BitMEX co-founder Arthur Hayes transferred about 680 ETH to Binance. That amount was valued at about $2.03 million. Generally, large holders moving funds to exchanges is interpreted as a potential for selling and a factor of market caution. Ethereum's price showed a short-term rebound after the Bank of Japan raised its benchmark rate by 0.25 percentage points. However, the spot market did not show accompanying trading participation. At the time of reporting, Ethereum was trading around $2,980, up 0.85% over 24 hours. Meanwhile, trading volume was about $18.47 billion, down 52% over the same period. This suggests market participation was limited relative to the price increase. A different trend appeared in the derivatives market. Open Interest increased 2.46% to $38.51 billion. This indicates that leverage position increases, rather than spot demand, are supporting the price movement. Technically, Ethereum is consolidating in a narrow range between $2,790 and $3,000. The Average Directional Index (ADX), which indicates trend strength, stood at 30.39, above the baseline of 25. Conversely, the Chaikin Money Flow (CMF) was -0.05, indicating continued capital outflow pressure. The market is paying attention to the simultaneous appearance of large transfers and increased leverage. Some analysts said, "The recent rebound appears to be driven more by positioning changes than strong spot demand."

As the U.S. government faces about $8 trillion of Treasury maturities in 2026, changes in liquidity policy are emerging as a major variable for the virtual asset market. With large-scale debt rollover scheduled amid a high interest rate environment, market attention is focused on whether the Federal Reserve (Fed) will respond. According to AMB Crypto on the 19th (local time), the U.S. government must reissue about $8 trillion of bonds issued during the pandemic in 2026. As the current policy rate remains significantly higher than in 2020–2021, there is a possibility that rollover costs will increase. U.S. fiscal conditions are also cited as a burden. As of fiscal year 2025, U.S. government debt reached about $38 trillion, a record high. Over the same period, the debt-to-GDP ratio rose to 124.3%, the highest level in four years. The dollar's weakness continues. The dollar index (DXY) is down 9.16% year-to-date, marking the largest annual decline since 2017. Given that the U.S. is a major importer, a weaker dollar could translate into price pressures. In this environment, markets are paying attention to the possibility of liquidity provision by the Fed. Former U.S. President Donald Trump recently said at a press conference that the next Fed chair is "very likely to have a tendency to keep interest rates low." Market participants view these remarks and fiscal conditions as grounds for the Fed to provide liquidity during the Treasury rollover process. Some analyses also suggest this could create a favorable environment for risk assets. In the virtual asset market, because Bitcoin (BTC) has been sensitive to changes in the macro environment, future liquidity policies could affect its price trajectory. However, the Fed's actual policy direction and timing have not yet been determined.

A large number of crypto asset exchange-traded products (ETPs) are expected to be launched in the United States in 2026, but a significant portion of them could be liquidated from the market before 2027 due to lack of demand. According to Cointelegraph, James Seyffart, an analyst at Bloomberg Intelligence, said on the 18th (local time), "It is highly likely that more than 100 crypto asset ETPs will be launched in 2026, but a significant number could be liquidated before 2027 due to lack of demand." Seyffart agreed with asset manager Bitwise's projection of 'more than 100 crypto ETFs to be launched in 2026,' while noting that there are more than 126 ETP applications currently pending with the U.S. Securities and Exchange Commission (SEC), and criticized that "issuers are putting too many products on the market at the same time." In fact, product liquidations due to weak demand are already common in the ETF market. Last year, 622 ETFs were liquidated worldwide, and 189 of them closed in the U.S. market alone. According to Morningstar, the average lifespan of 244 ETFs liquidated in the U.S. in 2023 was only 5.4 years. Most were due to a lack of assets under management (AUM) and low inflows. Crypto asset ETPs are no exception. This year alone, products such as the active Bitcoin·Ethereum strategy ETF (ARKY) and the on-chain Bitcoin strategy ETF (ARKC), jointly launched by ARK Invest and 21Shares, have already entered liquidation procedures. The market expects this trend to accelerate further in line with regulatory changes by the SEC. In September last year, the SEC introduced 'Generic Listing Standards,' simplifying the procedure so that ETP listings can proceed if requirements are met without individual review. As a result, the number of approved crypto asset ETPs is expected to surge in 2026. Even before this regulatory change, asset managers have been launching ETFs tracking major altcoins such as Litecoin, Solana, and XRP. These products are considered extensions following the spot Bitcoin (BTC) and Ethereum (ETH) ETFs launched in 2024, and have shown relatively stable early performance. The scale of inflows also demonstrates the growth of crypto asset ETPs. The U.S. spot Bitcoin ETF has gathered a cumulative $57.6 billion in assets since its launch in January 2024, and the spot Ethereum ETF recorded $12.6 billion in net inflows since July 2024. In addition, Solana spot ETFs launched since late October 2025 have attracted a total of $725 million in inflows. However, Seyffart said, "Not all crypto asset ETPs can secure the same level of demand," adding, "Ultimately only the top products centered on Bitcoin and Ethereum will survive, and the rest are likely to enter a phase of restructuring."

An analysis has found that Bitcoin's price volatility in 2025 has been recorded at a lower level than that of leading tech stock Nvidia. It is assessed that the investor base has widened due to an influx of institutional investors and the spread of exchange-traded funds (ETF), and that the asset's characteristics are entering a mature stage. According to a Cointelegraph report, asset manager Bitwise said in a report on the 18th (local time) that "Bitcoin's volatility has steadily declined over the past 10 years and will remain lower than Nvidia's volatility in 2026." It explained that this suggests Bitcoin has entered a so-called derisking phase, gradually moving away from being a high-risk asset. Bitwise pointed to the spread of institutional investment products as the background for this change. It analyzed that as new investors flowed in through traditional financial products such as spot Bitcoin ETFs, investor composition diversity expanded, and accordingly price movements have become more gradual compared to the past. The volatility gap between the two assets is clear in actual figures as well. Bitcoin showed about 68% price movement from this year's April low of $75,000 to the early October all-time high of $126,000. In contrast, Nvidia recorded a price swing of about 120% from an early April low of $94 to a late October high of $207. Differences were also seen in year-to-date performance. Nvidia's stock rose about 27% year-to-date, while Bitcoin fell about 8% over the same period. Bitwise said this indicates that "since the second half of 2025 the crypto market is gradually decoupling from the stock market." However, Bitwise remained optimistic about the medium- to long-term outlook. The report analyzed that Bitcoin is likely to set a new all-time high in 2026 and that the existing four-year cycle is also gradually weakening. It explained that the market is changing into a structure in which the halving effect, interest rate cycles, and leverage-driven rapid rises and falls do not act as strongly as in the past. It also forecast that in 2026 participation in the crypto market by major traditional financial institutions such as Citigroup, Morgan Stanley, Wells Fargo, and Merrill Lynch will expand, and allocations to spot crypto ETFs will increase. It projected that the regulatory environment will also continue to be pro-crypto, accelerating companies' adoption. Bitwise added, "While tech stocks have risen about 140% over the past three years, crypto-related stocks have outperformed this," and "in future phases, crypto-related stocks may perform better than tech stocks."

World Liberty Financial, a crypto project linked to former U.S. President Donald Trump and his family, will use part of the foundation's funds to expand its own stablecoin USD1. On the 18th (local time), World Liberty Financial proposed through a governance forum using 5% of the WLFI token foundation allocation to expand USD1 circulation. The project said, "Expanding USD1 supply is essential in an increasingly competitive stablecoin market environment." According to the proposal, the additionally supplied USD1 will be primarily used through partnerships with certain major centralized finance (CeFi) and decentralized finance (DeFi) partners. The plan is to expand USD1 use cases and strengthen the value capture structure across the WLFI ecosystem. The project said, "As USD1 grows, more users, platforms, institutions, and blockchain networks will integrate with World Liberty Financial's infrastructure," adding, "This results in an expansion of the size and influence of the network governed by WLFI holders." It added, "An increase in USD1 circulation leads to increased demand for WLFI-based services, liquidity incentives, and ecosystem programs." The WLFI token began exchange listings last September. Previously, the project stated that 19,960,000,000 of the total WLFI supply would be allocated to the foundation. At current prices, that allocation is worth about $2.4 billion, and using 5% of that would amount to about $120 million. The vote on this agenda will be carried out with three options: for, against, or abstain. However, the specific voting method and calculation criteria have not been clearly disclosed. Community reactions are currently mixed, with opposing opinions slightly outweighing support. Meanwhile, since its launch in March this year, USD1 has recorded a market capitalization of $2.74 billion, ranking seventh among dollar-pegged stablecoins. However, compared with PayPal's PYUSD, which is sixth, there is about a $1.1 billion gap by market cap, meaning additional growth drivers are needed to overturn the competitive landscape.

The Hyper Foundation (Hyper Foundation) proposed a governance proposal to essentially burn the HYPE tokens held in the Assistance Fund (Assistance Fund) within the Hyperliquid (Hyperliquid) protocol, excluding them from circulation. If the proposal passes, approximately $1 billion worth of HYPE tokens would be removed from market circulation. On the 17th (local time), The Block reported that the Hyper Foundation requested a vote via Discord the previous day on whether to officially consider the HYPE tokens deposited in the Assistance Fund as burned and permanently exclude them from circulation and total supply calculations. The Assistance Fund is a core mechanism built into the Hyperliquid Layer 1 execution layer that automatically converts a significant portion of blockchain transaction fees into HYPE tokens. Tokens generated in this process are managed at the protocol level and operated by the Hyper Foundation. The foundation explained that the fund effectively operates similarly to a continuous buyback-and-burn (buyback-and-burn) system. The Assistance Fund is designed so that no private keys or control mechanisms exist, storing tokens at an address that is mathematically inaccessible except via a hard fork. As a result, the tokens cannot be retrieved, but technically remain included in the total supply, raising concerns that they could distort metrics such as market capitalization. According to The Block data, the Assistance Fund currently holds about 37 million HYPE tokens. This accounts for more than 13% of the total circulating supply of about 270 million. The foundation's position is to consider that amount permanently burned and exclude it from supply metrics through this proposal. The Hyper Foundation said, "If a majority of votes are in favor, validators will agree to treat the HYPE in the Assistance Fund as burned," adding, "No additional on-chain action is required, and it is a procedure to bindingly confirm the social agreement not to upgrade the protocol to allow access to that address." On Discord, multiple validators are reported to have expressed support. Voting runs until 13:00 on the 21st Korea time, and the final result will be determined by stake-weighted consensus.

Jito Foundation, a nonprofit that supports development of MEV infrastructure based on Solana, announced it will return to the U.S. It had previously operated overseas due to worsening regulatory conditions in the U.S., but recently judged that regulations related to digital assets have become relatively clearer. On the 17th (local time), according to Cointelegraph, Jito Foundation said in a statement it plans to resume activities in the U.S. Jito is a project that builds MEV infrastructure on the Solana network, providing technology that efficiently manages revenues generated by adjusting transaction order within blocks. Lucas Bruder, co-founder and CEO of Jito Labs, pointed to the so-called 'Operation Chokepoint 2.0' as the reason the foundation had to go overseas. He said, "Banks refused services and vendors were reluctant to contract," and "Every product decision carried legal risks from hostile and arbitrary regulators." Bruder explained that recent changes in the regulatory environment were a key factor in the return decision. He mentioned that the GENIUS Act, a U.S. bill related to stablecoins, has passed and discussions on legislation for the market structure of virtual assets are progressing, and evaluated that the rules surrounding digital assets have become clearer than before. Jito Foundation's decision coincides with shifts in regulatory stance after the 2024 U.S. presidential election. With the new administration taking office and Paul Atkins being appointed chair of the U.S. Securities and Exchange Commission (SEC), the virtual asset industry as a whole is assessing that the regulatory environment is easing. However, despite the pro-virtual-asset stance, debanking issues continue, critics note. In November last year, Jack Mallers, CEO of Strike, disclosed that JPMorgan Chase closed his personal accounts without much explanation. He added that his father had been a private client of the bank for more than 30 years. Earlier in August, Alex Rampell, a partner at Andreessen Horowitz (a16z), warned that banks are effectively continuing Operation Chokepoint by, for example, imposing excessive fees or blocking transfers to certain virtual asset platforms. Nevertheless, Jito Foundation believes the regulatory environment in the U.S. is structurally improving and plans to continue development and ecosystem expansion based in the U.S. The industry regards Jito Foundation's return as a symbolic case of change in the U.S. virtual asset regulatory environment.

Bitcoin (BTC) has shown a recent bearish trend, raising growing concerns about the possibility of further corrections. However, some market analysts interpret that even if Bitcoin falls to the $70,000 level, it is closer to a macro cycle adjustment than the start of a new bear market. On the 17th (local time), according to Cointelegraph, Bitcoin was trading around $85,792 and continuing to exhibit volatility. Market analysts have identified a short-term downside risk range of $65,000 to $75,000. They assess that this range differs in character from past large-scale sell-off periods, unlike systemic risk or phases of strong macro risk-off. Crypto trader Jackis described the current correction as a macro price range that will span through 2025. He analyzed, "This decline is different from a typical bear market like in 2022 or early 2024," adding, "It is a correction that occurs as supply moves from early holders to institutional investors." He also cited the lack of strong risk-off signals across the macro environment as supporting evidence. Technical indicators have also picked up signals suggesting the possibility of a rebound. Market analyst Jelle mentioned the potential formation of a bullish divergence on Bitcoin's 3-day chart. He said that in past cycles, similar 3-day divergences often coincided with the formation of short-term lows. He added, however, that additional consolidation and time accumulation are needed for the signal to become valid. Julien Bittel, head of macro research at a global macro investor, expressed a similar view. Referring to past cases where Bitcoin followed a certain recovery path after the relative strength index (RSI) entered the oversold zone below 30, he analyzed, "Forming a bottom takes time and is often accompanied by highly volatile price movements." He also assessed that the influence of the traditional four-year halving cycle that explained Bitcoin's price is weakening, and that debt restructuring cycles and changes in the liquidity environment are creating a new market structure. Jurrien Timmer, Fidelity's global macro director, interpreted the current phase as part of a long wave structure extending from 2022 to 2025. During this period, Bitcoin recorded a compound annual growth rate of approximately 105% over about 145 weeks. Timmer emphasized that while he does not rule out the possibility of further adjustment into the $65,000 to $75,000 range in 2026, that range has historically acted as a strong buying zone. In the long term, Bitcoin adoption is expected to enter a mature phase, flattening the slope of the cycle. Timmer analyzed that if a new expansion phase opens, a path toward $300,000 by 2029 is theoretically possible. Market views are increasingly gaining strength that this correction phase may be a process of preparing for the next structural rise.

Caroline Ellison, the former chief executive of Alameda Research who pleaded guilty and is serving time in connection with the FTX collapse, has been transferred from a federal prison. With about two months remaining until her scheduled release, it has become increasingly likely she will spend the end of the year outside prison. According to records from the U.S. Federal Bureau of Prisons (BOP) on the 17th (local time), Ellison was moved from the federal correctional institution (FCI Danbury) in Danbury, Connecticut, to a facility under the New York City Residential Reentry Management. This is the first confirmed change of residence since her incarceration in November 2024. Ellison was indicted on charges including fraud for her role in the FTX collapse and was sentenced to 2 years in prison. This sentence is relatively light compared with FTX founder and CEO Sam Bankman-Fried, who was sentenced to 25 years. According to the BOP, Ellison's official release date is February 20, 2026, which is about nine months earlier than the end of her full term. Ellison was charged alongside Bankman-Fried after the November 2022 collapse of FTX, later pleaded guilty, and cooperated with prosecutors, testifying during trials. By contrast, another key figure, former co-CEO of FTX Digital Markets Ryan Salame, pleaded guilty but did not testify and was sentenced to 7 years and 6 months. Ellison met Bankman-Fried while working at Jane Street and joined Alameda Research in 2017. She later served as co-CEO and was named sole CEO in August 2022. After the FTX collapse she kept a low public profile but appeared as a witness in Bankman-Fried's trial in October 2023, testifying that the structure that funneled $14 billion of FTX customer funds into Alameda was designed by Bankman-Fried. In a September 2024 sentencing memorandum, prosecutors noted that Ellison had been exposed to excessive public criticism and online mockery after the case. With Ellison's release approaching, interest in figures related to the FTX collapse is expected to rise again. The Netflix series covering the stories of Sam Bankman-Fried and Ellison, "The Altruists," is also scheduled for release.

Bitcoin (BTC) and major altcoins attempted a short-term rebound but were stopped by selling pressure near highs, somewhat weakening expectations for a year-end rally. Technical indicators show clear major support and resistance levels, and the market appears to be in a wait-and-see phase. On the 17th (local time), according to Cointelegraph, Bitcoin briefly recovered the $90,000 level intraday but gave back gains under selling pressure. Bitcoin is currently trading around $85,969. According to Farside Investor data, spot Bitcoin exchange-traded funds (ETFs) have seen net outflows totaling $634,800,000 so far this week, indicating continued caution among institutional investors. On-chain analyst MorenoDV_ pointed to the 'True Market Mean (TMM)', which denotes the average acquisition price excluding inactive coins and mined supply, as a psychological baseline. The current TMM is around $81,500, and if that zone breaks, Bitcoin could face additional mid-term downward pressure. Meanwhile, Grayscale maintains the possibility that Bitcoin could reach a new all-time high in the first half of 2026, citing improved macro conditions and clearer U.S. regulation. Technically, Bitcoin's $84,000 level is viewed as the short-term key support. If that zone breaks, there is scope for a correction toward the $80,600–$73,777 range. Conversely, if it reclaims the 20-day moving average near $90,037, challenges toward $94,589 and $100,000 are being discussed. Ethereum (ETH) attempted a rebound near $2,960 but faced resistance at $3,066. The $2,716 and $2,623 zones are cited as main downside supports, and a break above $3,350 is seen as necessary for a trend reversal. Binance Coin (BNB) is testing support near $840, and a breach of $791 could open the door to further declines. Ripple (XRP) continues testing support at the lower edge of a descending channel and around $1.61. On a rebound, selling pressure is expected around $2.03 and $2.18. Solana (SOL) remains weak near $122, with $110 and $95 noted as key supports. Dogecoin (DOGE) and Cardano (ADA) are also in weak trends. Dogecoin's rebound attempts have been limited since falling below $0.13, although selling pressure on the relative strength index (RSI) has somewhat eased. Cardano could adjust to $0.32 and $0.27 if the $0.37 support is lost. Bitcoin Cash (BCH) rebounded from $534 but faces the question of whether it can break above $558. HYPE is encountering resistance near $30.26, and Chainlink (LINK) defending $10.94 support could determine short-term direction. Across the market, attention is focused on the repeated pattern of short-term rebounds being capped by selling near highs for both Bitcoin and altcoins. Considering ETF capital flows and technical resistance zones, many assess that a directionless volatile market is likely to continue through year-end.

The Bitcoin layer-2 payment network Lightning Network has recorded its largest-ever capacity, helped by major crypto exchanges' expanded adoption and feature improvements. The amount of Bitcoin deposited in the network has rapidly increased, drawing renewed attention to its role as a low-cost, high-speed payment infrastructure. On the 17th (local time), Cointelegraph reported that the Lightning Network's total capacity was 5,606 Bitcoin as of the previous day, surpassing the previous peak recorded in March 2023. Bitcoin Visuals counted 5,606 Bitcoin as the peak, and the Lightning Network analytics platform Amboss said it rose to 5,637 Bitcoin as of the 17th, a day later. This is about $490 million. According to the data, Lightning Network capacity declined through the first half of this year but sharply rebounded in November and December. This is interpreted as a result of increased Bitcoin flowing into the network, improving payment processing speed and cost efficiency. Meanwhile, network participation indicators showed mixed trends. The current number of Lightning nodes is 14,940, down from 20,700 recorded in March 2022. The number of payment channels between nodes is 48,678, also down from the 2022 peak. This means that although more Bitcoin is deposited in the network, it is not translating into increases in node and channel counts. Industry observers see exchange-centered adoption expansion as the key background to this capacity increase. Amboss said, "It's not one particular company, but overall more Bitcoin is flowing into the Lightning Network," explaining that large exchanges such as Binance and OKX have recently added Bitcoin deposits to the Lightning Network. Expansion of the Lightning ecosystem is also increasing the potential for integration with stablecoins. Tether recently invested $8 million in the Bitcoin startup Speed and said it would support Lightning Network-based stablecoin payments. By contrast, MetaMask added Bitcoin support this week but did not use the Lightning Network, adopting the native SegWit method. Technical progress is also continuing. Lightning Labs upgraded Taproot Assets to v0.7, saying it supports reusable addresses, auditable asset issuance, and larger, more reliable transactions. Taproot Assets is a multi-asset protocol that allows various assets such as stablecoins to be issued on top of Bitcoin and transmitted via the Lightning Network. Lightning Labs said the update lays the groundwork for Bitcoin and the Lightning Network to evolve into a multi-asset payment network, and projected that trillions of dollars could move over Bitcoin payment infrastructure in the long term.

Former senior executives of blockchain company Theta Labs have filed whistleblower lawsuits against the chief executive officer (CEO), alleging fraud and retaliatory conduct. Allegations of token price pumping, false partnership announcements, and insider trading have emerged, spreading controversy over the credibility of the Theta ecosystem as a whole. On the 17th (local time), according to Decrypt, former Theta Labs executives Jerry Kowal and Andrea Berry each filed separate lawsuits in the Los Angeles Superior Court in California. The two allege that Theta Labs, parent company Sliver VR Technologies, and CEO Mitch Liu deceived investors over several years and retaliated against employees who raised internal concerns. According to the complaints, CEO Liu is accused of artificially inflating token prices through misleading partnership announcements and undisclosed insider token sales. The Theta network operates based on the Theta (THETA) token, used for governance and staking, and the TFUEL token for network fees and services. The plaintiffs claim that this token structure was exploited for the CEO's personal benefit. Mark Mermelstein, an attorney at the Holmes Ashi Cowan & Mermelstein law firm representing Kowal, said, "Mitch Liu used Theta Labs as a personal trading vehicle to commit fraud, self-dealing, and market manipulation," and added, "Through planned pump-and-dump actions he repeatedly harmed the value of investors and employees." He emphasized that the lawsuit is intended to hold him accountable. Berry also said she witnessed and reported numerous improper acts while employed. The complaints include a plan to boost Theta token prices to enrich CEO Liu and false or exaggerated partnership announcements with prominent companies. In particular, they allege that the partnership with Google announced by Theta in 2020 was promoted as a strategic collaboration, even though it was in fact only a cloud services usage contract worth approximately $7 million. In addition, allegations were raised that false bids were generated during the operation of some non-fungible token (NFT) marketplaces or that collaborations with celebrities were exaggerated. The plaintiffs allege that some companies introduced as external partners of Theta were actually companies owned by CEO Liu. So far, CEO Liu and Theta Labs have not issued an official statement regarding the lawsuits. However, the lawsuits suggest that regulatory authorities and market scrutiny of partnership disclosures and token operation transparency in crypto projects could intensify.

Tether has moved to expand the payment infrastructure for stablecoins based on the Bitcoin Lightning Network. It is investing 8 million dollars in Speed, a Bitcoin layer-2 payments startup, with a strategy to broaden the payment use of Tether (USDT) into the corporate payments sector. On the 17th (local time), Cointelegraph reported that Tether led an 8 million dollar investment round for Bitcoin startup Speed. The round also included participation from Bitcoin ecosystem-focused investment firm Ego Death Capital. Speed is developing payment infrastructure that uses the Bitcoin Lightning Network to support USDT transfers. In a statement, Tether said, "Speed's architecture demonstrates that the Lightning Network and stablecoins can work together as a payment method with low fees, high scalability, strong regulatory compliance, and global accessibility." Paolo Ardoino, Tether's chief executive officer (CEO), also said, "Speed's execution and adoption speed indicate that Bitcoin-based networks are ready for mainstream commerce." Speed supports more than 1.2 million consumers, creators, platforms, and corporate merchants through its Speed Wallet and Speed Merchant products. Its annual processed payment volume is reported to exceed 1.5 billion dollars. Tether explained that this investment aligns with its strategy to support Bitcoin-centered payment platforms and expand real-world use cases for USDT. CEO Ardoino said, "We support teams building tangible infrastructure that reduces friction in payments and increases access to trusted payment rails." Stablecoin payments over the Lightning Network are evaluated as offering advantages in cost and speed for cross-border remittances and corporate payments. This investment is interpreted as a continuation of Tether's aggressive business expansion. Tether has currently invested in more than 140 companies and has broadened its investment scope to include Bitcoin mining, artificial intelligence, energy finance, and even soccer clubs. These investments are analyzed as originating mainly from Tether's high profitability based on interest income from U.S. Treasury securities. In fact, Tether recorded net profits of more than 10 billion dollars during the first three quarters of 2025. This follows 13.4 billion dollars in profit for the year 2024, and the company is regarded as one of the world's top firms in terms of profitability per employee.

Decentralized finance (DeFi) protocol Aave disclosed a mid-to-long-term growth strategy targeting 2026 immediately after the end of a prolonged investigation by the U.S. Securities and Exchange Commission (SEC). The plan aims to broaden both institutional reach and user base through protocol expansion, inflows of real-world assets (RWA), and mainstreaming the mobile app. On the 17th (local time), Cointelegraph reported that Stani Kulechov, founder and CEO of Aave, revealed the 2026 'masterplan' via social media X. While he assessed 2025 as the most successful year in Aave's history, he said, "From the perspective of what lies ahead, it's still only the beginning." Kulechov presented three pillars as the core of the 2026 strategy. The first is Aave V4. He said V4 will "be the backbone of all finance" and explained it will implement a bespoke lending market through a Hub and Spoke structure. The model centers a single cross-chain liquidity pool as the hub, which various specialized markets will utilize. He said, "This structure will form the basis for handling assets worth trillions of dollars." The second pillar is the real-world asset market, Horizon. The goal is to expand net deposits, currently around $550 million, to over $1 billion by 2026. Kulechov said, "We will bring global assets onto Aave by partnering with major institutions such as Circle, Ripple, Franklin Templeton, and VanEck." The third pillar is the mobile strategy. He described the Aave app, released on the Apple App Store in November last year, as "a Trojan horse to bring DeFi into the mainstream." Valuing the mobile fintech market at over $2 trillion, he said, "We will start full-scale app expansion from early next year to secure the first 1 million users." He emphasized, "Without product-level mass adoption, Aave cannot grow to a scale of trillions of dollars." This blueprint came alongside the resolution of regulatory uncertainty. On the same day, Kulechov officially confirmed that the SEC has closed the roughly four-year investigation related to Aave. He said, "Now we put this behind us and enter a new era where developers can truly build the future of finance." Kulechov also disclosed a personal investment. He said he purchased $9.8 million worth of Aave (AAVE) with personal funds, separate from Aave DAO's buyback program. This move is interpreted as a demonstration of confidence in the long-term vision following the easing of regulatory risk.