Coin360 Weekly Dispatch | Crypto Market Updates & Highlights | May 25 - May 31, 2025

Crypto Weekly Market Update

Table of Contents

Market Movements and Trends

• Crypto Weekly Recap

Major Market Events

• SEC clarifies protocol staking; REX Shares files for ETH and SOL staking ETFs
• Arkham reveals 97% of Strategy's Bitcoin reserves following Saylor's PoR critique
• FTX launches $5 billion stablecoin payout to creditors amid market optimism
• $99.3M liquidation hits Hyperliquid trader amid Bitcoin price plunge

Regulatory and Legal Developments

• Global crypto regulatory shifts: U.S. embraces 401(k) Bitcoin options, SEC clarifies staking, Thailand blocks exchanges, and more

Institutional and Corporate Activity

• Corporate Bitcoin acquisitions surge: Strategy, GameStop, Trump Media lead the charge
  Circle aims for $624M IPO on NYSE, targeting $6.7B valuation amid strong institutional interest
• Telegram partners with xAI for $300M Grok AI integration; TON token surges amid Musk’s clarification

Blockchain Ecosystem and DeFi

• Sui community votes to repay $162M to Cetus exploit victims following proposal approval

NFT and Web3 Developments

• OpenSea prepares for SEA token launch as OS2 exits beta and introduces 'Voyages' rewards program
• Yuga Labs sells Moonbirds NFT IP to gaming startup Orange Cap Games
• NFT market shows sign of recovery in May 2025 with 15% sales increase and 50% rise in unique buyers

Crypto Weekly Recap

Total crypto market cap: 3.21T

Crypto Fear & Greed Index: 50 (Neutral)

BTC.D: 64.37%

Bitcoin:

• Weekly performance: -3.18%
• US Spot BTC ETFs: -$157.40M
• Bitcoin held above $103,500 after peaking near $110,700 on Tuesday.
• Bitcoin Conference 2025 was the main event this week, featuring top industry insights.
• Bitcoin jumped to $110,000 on Monday on delayed EU tariffs, hit $107,000 Wednesday as Fed cut hopes faded, then fell to $103,500 Friday on a U.S.-China trade truce.
• Crypto investment products saw $3.3B in inflows last week, bringing YTD inflows to $10.5B, with $2.9B going into Bitcoin-based vehicles.
• BlackRock’s IBIT ETF had 19 days of inflows until May 30, but sentiment turned negative as the Fed signaled no cuts until at least September 2025.
• Analysts emphasized $100,000 as a key psychological level and $110,700 as a breakout point for further upside.
• Support sat at $103,000; a break risked testing $100,000. A break above $110,700 could have opened the path to $113,000.

Ethereum:

• Weekly performance: +0.21%
• US Spot ETH ETFs: +$285.84M
• ETH briefly diverged from BTC this week due to ETF inflows and rising gas usage but failed to sustain the move.
• ETH started at $2,570, hit $2,770 on Thursday, then dropped to $2,500 over the weekend.
• The Ethereum Foundation borrowed $2M in GHO from Aave, with founder Stani Kulechov calling it a “full DeFi circle” as EF also supplied ETH to Aave.
• JPMorgan said Ethereum’s upgrades, including Pectra, didn’t boost onchain activity, and the market cap rise was driven by institutional interest.

Altcoins:

• Legal developments included a kidnapping case, new sanctions, and the SEC's plan to drop its Binance lawsuit.
• TradFi expanded crypto ties with bank-issued stablecoins and a surge in RWA tokenization.
• Weekly crypto fund updates featured new staking ETFs, an AI-focused fund, and a CRO filing.
• Tether aimed to become the world’s largest Bitcoin miner, committing billions in investments.
• Alpaca Finance announced it would sunset all products following its Binance delisting.
• Cryptographer Adam Back led an investment in H100 Group to support Bitcoin reserve strategies.
• Coinbase said it would suspend trading for RNDR, RBN, MOBILE, and SYN starting June 26, 2025.
• Dragonfly co-led a $36M Series A in cross-border payments startup Conduit.
• Stablecoin startup Atticus neared a $2B valuation after a funding round led by a defense-tech CEO, according to reports.

SEC Clarifies Protocol Staking; REX Shares Files for ETH and SOL Staking ETFs

On May 29, 2025, the SEC clarified that various forms of protocol staking do not constitute securities transactions under federal law, differentiating between network-generated staking rewards and securities as defined by the Howey Test. Concurrently, REX Shares filed for Ethereum (ETH) and Solana (SOL) staking ETFs using a 40-Act filing to expedite approval. These ETFs will use C-corporation structures and Cayman Islands subsidiaries for regulatory advantages. Each is expected to stake at least half of its assets for yield, marking a significant advancement in crypto ETF offerings amid ongoing regulatory challenges.

Arkham Reveals 97% of Strategy's Bitcoin Reserves Following Saylor's PoR Critique

Michael Saylor criticized on-chain proof-of-reserves (PoR) as risky and inadequate during the Bitcoin 2025 event, advocating instead for traditional audits. Arkham Intelligence publicly disclosed wallet addresses linked to Strategy, revealing 97% of its BTC reserves totaling $59.92 billion, amidst Saylor's claims of privacy. Strategy holds 580,250 BTC, acquired at an average of $69,979, with estimated unrealized gains over $23 billion. The exposure raised concerns over market stability, while some praised transparency. Critics argue this undermines Bitcoin’s decentralization, contrasting with Arkham’s stance on accountability in light of substantial crypto holdings.

FTX Launches $5 Billion Stablecoin Payout to Creditors Amid Market Optimism

FTX has initiated a $5 billion stablecoin payout to creditors as part of its complex insolvency strategy. This follows a previous $1.2 billion repayment in February. Current distributions show varied recovery rates: 72% for Dotcom Customer Claims, 54% for U.S. Customer Claims, and notably 120% for Convenience Class claims under $50,000. Analysts believe this repayment could energize the crypto market, aided by improved macro conditions and rising institutional interest. However, legal disputes over reimbursement calculations based on Bitcoin's 2022 prices and exclusions affecting residents in 163 jurisdictions continue to generate controversy surrounding the process.

$99.3M Liquidation Hits Hyperliquid Trader Amid Bitcoin Price Plunge

On May 30, Bitcoin's price dipped below $105,000, triggering a significant liquidation event that wiped out $99.3 million in leveraged long positions held by trader James Wynn. The liquidation involved 949 BTC across three key positions, with Wynn subsequently opening a 40x leveraged long position totaling $1.25 billion at $107,993. His position faced extreme volatility, swinging from $82 million in unrealized profits to a $100 million loss. Despite this, Wynn remains focused on achieving a $1 billion profit, illustrating the precarious nature of high leverage in crypto markets and the influence of public trading personas on market behavior.

Global Crypto Regulatory Shifts: U.S. Embraces 401(k) Bitcoin Options, SEC Clarifies Staking, Thailand Blocks Exchanges, and More

This week's global policy recap covers significant regulatory shifts in the cryptocurrency landscape. The U.S. Labor Department has reversed its stance on cryptocurrency in 401(k) plans, while the bipartisan CLARITY Act of 2025 aims to clarify regulatory roles between the SEC and CFTC. Thailand plans to block five unlicensed exchanges, and the SEC has declared most PoS staking activities non-securities. New York City proposes Bitcoin Bonds, and Pakistan will establish a strategic Bitcoin reserve. Additionally, Russia allows qualified investors access to crypto derivatives, while Bolivia bans YPFB from using cryptocurrencies for energy transactions. Bitcoin is priced at $108,228.74.

Corporate Bitcoin Acquisitions Surge: Strategy, GameStop, Trump Media Lead the Charge

This week saw significant Bitcoin acquisitions across corporate sectors. Strategy (formerly MicroStrategy) purchased 4,020 BTC for $427 million, raising total holdings to 580,250 BTC. GameStop’s CEO Ryan Cohen revealed a $505 million Bitcoin acquisition strategy, while Metaplanet aims to boost holdings to 10,000 BTC through $21 million in zero-interest bonds. Trump Media signed a $2.32 billion Bitcoin treasury deal, increasing liquid assets to $3 billion. Strive Asset Management raised $750 million for innovative Bitcoin strategies, reflecting growing institutional interest. Meanwhile, Meta shareholders rejected a Bitcoin treasury proposal, favoring a focus on stablecoins instead.

Circle Aims for $624M IPO on NYSE, Targeting $6.7B Valuation Amid Strong Institutional Interest

Circle Internet Group is launching an IPO on the NYSE under the ticker “CRCL,” aiming to raise up to $624 million by selling 24 million shares priced between $24 and $26, valuing the company at $6.7 billion. Despite a decrease in net income to $155.7 million for 2024, revenue rose to $1.68 billion. Institutional interest is strong, with BlackRock expected to acquire about 10% of shares and ARK Investment planning a $150 million investment. Proceeds will fund international expansion, regulatory compliance, and new tokenized products, amid growing optimism for digital asset regulation under the current administration.

Telegram Partners with xAI for $300M Grok AI Integration; TON Token Surges Amid Musk’s Clarification

Telegram claimed it had secured a $300 million partnership with Elon Musk's xAI to integrate Grok AI into its messaging platform, enhancing monetization and user interaction. The deal entails Telegram receiving 50% of subscription revenue from xAI-powered services. Following the announcement, the Open Network (TON) token surged 18.5%, reflecting investor optimism. Telegram aims to become a comprehensive super-app, bolstered by $1.4 billion in revenue and a $540 million profit in 2024. However, clarity around the partnership emerges amid Musk's contradictory statements regarding formal agreements, stirring questions about the collaboration's execution and scope.

Sui Community Votes to Repay $162M to Cetus Exploit Victims Following Proposal Approval

The Sui community approved a governance proposal to repay $162 million in frozen assets from the recent $220 million Cetus exploit. The vote, concluded on May 29, saw 90.9% approval, leading to the funds being moved to a multisig wallet for user recovery. While some criticized validators' power to freeze funds, others welcomed the swift action against crypto exploits. Cetus plans to restart and fully recover within a week, implementing upgrades for fund transfers and developing a compensation contract, enabling liquidity providers to regain access to their assets while pursuing claims for remaining losses.