Ethereum Breaks Above $2,600 as Institutional Demand and DeFi Growth Fuel Momentum, But User Growth Remains Flat

Ethereum advanced past the $2,600 threshold early Wednesday in Asian trading, climbing 3.7% and breaking through a key resistance level near $2,500 after a period of consolidation, according to CoinDesk Research’s AI-powered technical analysis.

This upward move is supported by strong trading volumes and solid institutional backing. Spot Ethereum ETFs saw net inflows totaling $248 million last week, led by BlackRock’s iShares Ethereum Trust. DeFi activity also shows strength, with Ethereum’s total value locked (TVL) increasing 3.59% over the past 24 hours to $64.37 billion, per DeFi Llama data.

Despite the bullish signs, Ethereum faces challenges. The number of active addresses remains almost unchanged from last year, currently near 406,180 compared to approximately 430,000 twelve months ago, indicating limited growth in user adoption.

Stablecoin data also paints a mixed picture: established coins like USDT and USDC remain steady, while newer stablecoins such as Ethena’s USDe and BUIDL exhibit faster growth, suggesting evolving dynamics within Ethereum’s stablecoin landscape.

Though institutional interest and on-chain metrics favor a positive outlook, subdued retail participation and stagnant user growth may restrict Ethereum’s near-term upside.

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Bitcoin Outpaces Luxury Watches as Pandemic-Era Correlation Fades

Bitcoin (BTC) and luxury watches, which once moved in sync during the pandemic-driven liquidity surge, have diverged sharply over the past year. Bitcoin has surged nearly 57%, while the luxury watch index tracked by WatchCharts.com has declined by 4%.

This marks a break from mid-2023, when stimulus-fueled markets boosted both assets in tandem. The divergence is attributed to Bitcoin’s growing institutional adoption and maturation as a mainstream asset, while the secondary market for luxury watches cools off.

OKX Global’s Chief Commercial Officer Lennix Lai notes, “Serious watch collectors stayed the course, but speculators left the market. Bitcoin has grown into a generational asset — one that can’t be lost or damaged, provided keys are secure.”

The luxury watch sector has shown minor recovery recently, gaining 0.3% over three months, driven by external factors like rising tariffs and increased gold prices, according to Watches.io founder Jake Plonskier.

Crypto’s influence remains visible demographically, as younger buyers now afford high-end watches previously beyond their reach, Plonskier says.

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Circle Files for IPO, Targeting Nearly $625 Million on NYSE

Circle Internet Financial, issuer of the USDC stablecoin, has submitted paperwork for an IPO on the New York Stock Exchange under ticker “CRCL,” intending to sell up to 24 million Class A shares at $24–$26 each.

The offering includes 9.6 million new shares, potentially raising $250 million, and 14.4 million shares from selling shareholders, potentially worth $375 million.

Cathie Wood’s ARK Investment has signaled interest in acquiring $150 million of shares. The IPO is led by J.P. Morgan, Citigroup, and Goldman Sachs.

This comes after Circle’s 2021 SPAC deal failed and earlier proposals to sell the company to Coinbase or Ripple did not materialize.

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Marathon Digital CEO Urges U.S. Government to Mine Bitcoin for Strategic Reserve

At Bitcoin 2025, Marathon Digital CEO Fred Thiel called on the U.S. government to begin mining Bitcoin domestically to build the strategic bitcoin reserve mandated by President Trump’s executive order, using surplus hydroelectric power.

Thiel emphasized the importance of tangible action beyond the current stockpile of roughly 200,000 forfeited bitcoins.

Senator Cynthia Lummis backs a broader plan via the BITCOIN Act to convert underperforming government gold assets into bitcoin over several years to expand the reserve.

Lummis cautioned that legislative progress could be slow, given Congress’s focus on stablecoin regulation and market structure reforms.

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Market Summary

• Bitcoin (BTC): Rebounded from a dip to $107,604, trading just below the $110,000 resistance level, buoyed by eased EU trade tensions and ongoing accumulation by long-term holders.
• Ethereum (ETH): Surpassed $2,600 amid strong ETF inflows and rising DeFi activity, though stagnant active address counts may limit further gains.
• Gold: Trading near $3,315 per ounce, down 0.77%, with Citi upgrading near-term forecasts amid trade uncertainties, while maintaining cautious longer-term views.
• Nikkei 225: Opened at 38,003.67 with forecasts of a 5% year-end rise, although volatility remains amid trade uncertainties.
• S&P 500: Closed up 2.1%, supported by optimism over delayed U.S.-EU tariffs and trade negotiations.