Ethereum Breaks $2,600 as Institutional Demand and DeFi Growth Drive Momentum — But User Growth Lags
Ethereum surged past the $2,600 mark early Wednesday during Asian trading hours, climbing 3.7% and decisively breaking through a key resistance zone near $2,500 after a period of consolidation, according to CoinDesk Research’s AI-driven technical analysis.
The rally is fueled by robust trading volumes and strong institutional confidence. Last week saw $248 million in net inflows into spot Ethereum ETFs, led by BlackRock’s iShares Ethereum Trust. Meanwhile, decentralized finance (DeFi) activity is gaining steam, with Ethereum’s total value locked (TVL) rising 3.59% over the past 24 hours to $64.37 billion, per data from DeFi Llama.
Despite these positives, some headwinds remain. Ethereum’s active addresses are largely unchanged year-over-year, holding near 406,180 compared to roughly 430,000 twelve months ago, pointing to stagnant user growth.
Stablecoin flows offer a mixed picture. While established tokens like USDT and USDC remain steady, newer entrants such as Ethena’s USDe and BUIDL show stronger growth, hinting at shifting dynamics within Ethereum’s stablecoin ecosystem.
Though institutional backing and on-chain metrics signal bullish momentum, muted retail participation and slow user expansion suggest the current Ethereum rally may face short-term limitations.
Bitcoin and Luxury Watches Decouple as Crypto Surges and Timepieces Stall
Once moving in tandem during the pandemic-era stimulus bonanza, Bitcoin (BTC) and luxury watches have sharply diverged over the past year. Bitcoin has soared 56.9% according to CoinDesk data, while the WatchCharts.com luxury watch index declined 4%.
Until mid-2023, Bitcoin and luxury watches tracked closely, buoyed by expansive liquidity policies worldwide. But since then, Bitcoin’s ascent has continued unabated, whereas the luxury watch secondary market has cooled considerably.
OKX Global’s Chief Commercial Officer Lennix Lai attributes Bitcoin’s gains to growing institutional adoption and maturation as a trusted asset. “Collectors held onto watches, but speculators moved on. Bitcoin has matured into a generational asset investors can’t overlook,” Lai said. “Unlike watches, you can’t lose or damage Bitcoin as long as you safeguard your keys.”
The luxury watch market has seen a modest 0.3% rebound in the past three months, driven largely by economic factors such as rising tariffs and surging gold prices, according to Watches.io founder Jake Plonskier.
Plonskier also notes crypto’s demographic impact: “Crypto wealth introduced younger buyers to high-end watches, enabling men under 30 to acquire Patek Philippe and Audemars Piguet pieces, historically uncommon in that age group.”
Circle Files for IPO, Targeting Nearly $625 Million in NYSE Debut
Circle Internet Financial, issuer of the USDC stablecoin, has filed for an IPO on the New York Stock Exchange under the ticker “CRCL,” aiming to sell up to 24 million Class A shares priced between $24 and $26 apiece, CoinDesk reports.
The offering includes 9.6 million new shares potentially raising $250 million for the company, alongside 14.4 million shares from selling shareholders that could fetch around $375 million.
ARK Investment, led by Cathie Wood, has expressed interest in purchasing $150 million worth of shares. The IPO is being led by J.P. Morgan, Citigroup, and Goldman Sachs.
This marks a fresh attempt after Circle’s 2021 SPAC deal fell through and prior talks of a $5 billion sale to Coinbase or Ripple were shelved.
Marathon Digital CEO Calls on U.S. Government to Mine Bitcoin for Strategic Reserve
Marathon Digital’s CEO Fred Thiel urged the U.S. government to begin actively mining Bitcoin as a way to fulfill President Trump’s directive to establish a strategic bitcoin reserve, using excess hydroelectric power to support domestic operations, CoinDesk reported.
Speaking at the Bitcoin 2025 conference, Thiel stressed the importance of moving beyond simply accumulating seized bitcoins—estimated at about 200,000 from forfeitures—toward proactive mining.
Senator Cynthia Lummis supports this vision through her BITCOIN Act proposal, which calls for converting underperforming government gold certificates into bitcoin over the next two to five years to bolster the reserve.
However, Lummis acknowledges that significant legislative hurdles remain, as Congress balances bitcoin-related efforts against ongoing stablecoin and market structure regulatory priorities.
Market Snapshot
- Bitcoin (BTC): After dipping to $107,604, Bitcoin bounced back, stabilizing just under the $110,000 resistance level, supported by easing EU trade tensions and ongoing long-term investor accumulation, per CoinDesk’s technical analysis.
- Ethereum (ETH): Ethereum surged past $2,600 thanks to strong institutional inflows and rising DeFi activity, although flat active address growth could cap near-term gains.
- Gold: Trading at $3,315.30 per ounce, gold slipped 0.77%. Citi raised its near-term forecast to $3,100–$3,500 amid trade uncertainty but remains cautious longer term, expecting economic recovery and Fed rate cuts.
- Nikkei 225: Japan’s Nikkei 225 opened at 38,003.67, with analysts forecasting a 5% rise to 39,600 by year-end, as U.S. trade tensions ease. Volatility persists, with expectations to reach 42,000 by end-2026.
- S&P 500: The index closed 2.1% higher Tuesday, buoyed by hopes of delayed U.S.-EU tariffs and improved trade agreement prospects.
