Weekly Market Highlights: Ethereum Reclaims USDT Dominance from Tron

Brazil Proposes Sovereign Federal Bitcoin Reserve

A newly proposed bill in Brazil's Congress aims to establish a sovereign federal Bitcoin reserve. This initiative seeks to mitigate currency fluctuations and geopolitical risks while potentially serving as collateral for the country's forthcoming central bank digital currency (CBDC), Real Digital (Drex).

MicroStrategy Expands Bitcoin Holdings

In a significant move, Michael Saylor's MicroStrategy has acquired a massive 55,500 BTC for approximately $5.4 billion in the past week. This acquisition has brought the company's total Bitcoin holdings to nearly $38 billion, showcasing an unwavering confidence in the cryptocurrency.

MARA Rises Above as Largest Bitcoin Miner

Bitcoin miner Marathon Digital Holdings (MARA) has added 6,474 BTC, valued at $615 million, to its reserves. The company now holds a total of 34,794 BTC, worth around $3.3 billion, making it the largest among public miners.

Spot ETF Developments

Bitwise has recently filed an S-1 registration for a spot ETF, offering balanced exposure to both BTC and ETH. This move aims to provide investors with easier access to the two largest cryptocurrencies.

Additionally, VanEck has decided to extend its fee waiver for its HODL spot BTC ETF, which covers the first $2.5 billion in assets or is available until January 10, 2026, whichever comes first. Meanwhile, WisdomTree has taken the preliminary step of targeting an XRP ETF by filing for a trust entity in Delaware.

Ethereum Reclaims USDT Dominance

Ethereum has reclaimed its position as the dominant network for Tether (USDT) for the first time in two years, following a 10% surge in USDT supply on the Ethereum network in recent weeks. This resurgence highlights Ethereum's continued strength in the stablecoin market.

Innovations in DeFi and Blockchain

Ondo Finance is making strides in DeFi by partnering with LayerZero to enable its USDY yieldcoin to be fully fungible across multiple blockchain networks. Furthermore, Hyperliquid, a new decentralized trading platform and Layer 1 chain, has launched its HYPE token, with 31% of its 1 billion supply distributed via a community airdrop.

In another significant development, Phantom wallet is expanding its multi-chain capabilities by adding support for the Ethereum Layer 2 network, Base. MetaMask has also integrated with Venmo to enable U.S. users to purchase cryptocurrency directly through the payment app.

Stablecoins and New Launches

Tether has announced its decision to discontinue its Euro-pegged stablecoin, EURt, due to regulatory challenges and burgeoning competition from MiCA-compliant alternatives like Circle’s EURC. On a different note, Binance launched BFUSD, a reward-bearing margin asset designed to generate returns through delta hedging and staking strategies, with its APY varying based on market conditions.

Avant, an Avalanche-based protocol providing yield-bearing products similar to Ethena, has raised $6.5 million in its seed funding round, achieving a valuation of $25 million. In legal news, Tornado Cash won a critical ruling from a U.S. appeals court, where a three-judge panel deemed the Treasury's sanctions on its immutable smart contracts unlawful.

New Insights from Binance Research

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Conclusion

This week has brought about significant developments in the cryptocurrency ecosystem, from policy proposals in Brazil to major acquisitions by leading companies. With increasing innovation in blockchain technology and investment opportunities, the landscape continues to evolve.