Lead
Bitcoin climbed back to $103,700 as risk appetite improved following news that a government shutdown was averted. Meanwhile, DeFi protocols announced major restructurings: Aerodrome and Velodrome are merging into a new protocol, and the dYdX Foundation outlined an aggressive token buyback plan. A reported attack on Hyperliquid triggered a $4.9 million loss, while global policy and legal developments added to a busy day for crypto markets.
Market Snapshot
Bitcoin (BTC) rebounded to $103.7K. Analyst PlanB suggested the recent pullback was driven by 2024 whale buyers taking profits at around 50%, with some capital rotating toward the AI sector.
On-chain analytics indicate normal market conditions in 2025, with roughly 7 million BTC moved on-chain so far this year. While a notable 84,000 BTC transaction tied to a 2011-era wallet drew attention, data suggests claims of widespread "old whale dumping" are overstated, with most selling pressure coming from cohorts accumulated during 2017–2023.
DeFi and Protocol Updates
Aerodrome and Velodrome to Merge into Aero
- Decentralized exchanges Aerodrome (on Base) and Velodrome (on Optimism) announced a merger into a unified protocol called Aero.
- The combined protocol will launch on Ethereum and Circle’s
Arcblockchain. - Token allocation for the new asset will be distributed as follows:
- 94.5% to Aerodrome holders
- 5.5% to Velodrome holders
dYdX Foundation to Direct Revenues to DYDX Buybacks
- The dYdX Foundation said it plans to allocate 75% of protocol revenues to open-market buybacks of
DYDX. - Of the remaining revenue:
- Up to 5% will support liquidity,
- 15–20% will fund staker rewards, and
- 5% will go to the Foundation treasury.
Hyperliquid Faces Loss After Liquidation Liability Attack
- Perpetuals DEX Hyperliquid encountered another instance of a liquidation liability transfer exploit.
- An unknown trader reportedly opened about $30 million in positions on the meme token
POPCAT, then intentionally removed collateral, pushing losses to the protocol. - Result: the
HLPvault absorbed approximately $4.9 million in losses.
Regulation, Policy, and Legal
Taiwan’s parliament has begun discussions on creating a strategic Bitcoin reserve, highlighting growing sovereign interest in BTC as a macro asset.
Former U.S. SEC commissioner Paul Atkins stated that the SEC is preparing to provide clearer rules for digital assets and has “released a clear classification system” for cryptocurrencies.
A Dubai court has frozen $456 million linked to TUSD and Justin Sun. The freeze is described as a temporary measure pending a decision from a Hong Kong court.
ETFs and Market Movers
Canary Capital has filed to launch a MOG ETF, signaling continued experimentation with memecoin-linked exchange-traded products.
Top 24-hour movers:
- AB: $0.007533 (+32.45%)
- Quant (QNT): $89.41 (+7.02%)
- Zcash (ZEC): $499 (+5.10%)
Outlook
Macro sentiment, sovereign interest in Bitcoin, and protocol-level tokenomics are steering market dynamics as BTC defends six figures. Investors will watch implementation timelines for the Aero merger, the impact of dYdX buybacks on DYDX supply, and outcomes from ongoing legal proceedings involving TUSD. On-chain data suggests market structure remains intact despite headline-grabbing whale activity.