Several layer-2 builders responded after Ethereum co-founder Vitalik Buterin said the original vision of L2s as the primary scaling engine “no longer makes sense,” calling for a shift toward specialization.
In a Wednesday post, Buterin argued that many L2s have failed to fully inherit Ethereum’s security due to continued reliance on multisig bridges, while the base layer is increasingly capable of handling more throughput via gas-limit increases and future native rollups.
The comments prompted responses from Ethereum layer 2s, who broadly agreed that rollups must evolve beyond being cheaper versions of Ethereum but diverged on whether scaling should remain central to their role.
The Ethereum ecosystem is grappling with a shifting roadmap that aims to make the base layer more capable, while L2s reposition themselves as specialized environments serving distinct technical needs.
Ethereum L2 builders accept shift, differ on scaling’s role
Karl Floersch, a co-founder of the Optimism Foundation, said in an X post that he welcomed the challenge of building a modular L2 stack that supports “the full spectrum of decentralization.”
He also acknowledged that major hurdles exist. These include long withdrawal windows, the lack of production-ready Stage 2 proofs and insufficient tooling for cross-chain apps.
“Stage 2 isn’t production-ready,” Floersch wrote, adding that existing proofs are not yet secure enough to support major bridges. He also supported native Ethereum precompile for rollups, a concept that Buterin recently emphasized as a way to make trustless verification more accessible.
Steven Goldfeder, the co-founder of Arbitrum developer Offchain Labs, took a more forceful stance in a lengthy X thread. He argued that while the rollup model has evolved, scaling remains a core value of L2s.
Goldfeder said Arbitrum was not built as a “service to Ethereum,” but because Ethereum provides a high-security, low-cost settlement layer that makes large-scale rollups viable.
He also pushed back on the idea that a scaled Ethereum mainnet could replace the throughput currently handled by L2 networks. Goldfeder cited periods of high activity when Arbitrum and Base processed over 1,000 transactions per second, while Ethereum handled fewer.
He warned that if Ethereum was perceived to be hostile to rollups, institutions might launch independent layer-1 chains rather than deploy on Ethereum.
Base frames differentiation, Starknet hints alignment
Jesse Pollak, head of Base, said in an X post that Ethereum’s L1 scaling was “a win for the entire ecosystem.” He agreed that L2s cannot just be “Ethereum but cheaper.”
Pollak said Base has focused on onboarding users and developers while working toward Stage 2 decentralization, adding that differentiation through applications, account abstraction and privacy features align with the direction Buterin outlined.
StarkWare CEO Eli Ben-Sasson, whose company develops the non-EVM Starknet rollup, offered a brief but pointed reaction on X, writing: “Say Starknet without saying Starknet.”
Ben-Sasson’s comment hinted that some ZK-native L2s see themselves as already fitting the specialized role Buterin described.
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy https://cointelegraph.com/editorial-policy
AAVE trades at $128.18 with analysts targeting $137-142 short-term despite oversold conditions. Medium-term Aave forecast eyes $157-162 range as DeFi recovery continues.
Aave (AAVE) finds itself at a critical juncture as the DeFi lending protocol navigates choppy market conditions. Trading at $128.18 with a modest 24-hour decline of 0.09%, AAVE presents both opportunities and risks for traders eyeing the coming weeks.
Recent analyst commentary provides insight into AAVE’s trajectory. According to Caroline Bishop’s February 2nd analysis, “AAVE Price Prediction Summary: Short-term target (1 week): $137-142; Medium-term forecast (2-4 weeks): $157-162 range; Bullish breakout level: $137.58; Critical support: $122.88.”
This Aave forecast aligns with longer-term projections from Peter Zhang, who noted on January 26th that “AAVE shows potential recovery toward analyst targets of $190-195 by February 2026, despite current bearish momentum.”
Earlier analysis from Zach Anderson highlighted the technical tension, observing that “Aave (AAVE) trades at $156.65 with analysts eyeing $190-195 by February 2026, though bearish MACD and oversold conditions suggest near-term caution around $151 support.”
AAVE Technical Analysis Breakdown
The current technical picture for AAVE reveals a token under pressure but potentially oversold. With an RSI of 33.88, AAVE sits in neutral territory, though closer to oversold conditions than overbought levels.
The MACD histogram reading of -0.0000 confirms bearish momentum remains intact, while the token trades significantly below key moving averages. AAVE currently sits below its 7-day SMA of $131.49, 20-day SMA of $150.36, and well beneath its 200-day SMA of $230.13.
Bollinger Band analysis shows AAVE positioned at 0.15, indicating the token trades much closer to the lower band ($118.68) than the upper band ($182.03). This positioning often suggests oversold conditions and potential for mean reversion.
Key resistance levels emerge at $132.52 (immediate) and $136.85 (strong), while support levels sit at $122.37 (immediate) and $116.55 (strong). The Average True Range of $9.72 indicates moderate volatility conditions.
Aave Price Targets: Bull vs Bear Case
Bullish Scenario
In the optimistic case, AAVE could target the analyst-predicted $137-142 range within the next week. This would require breaking through immediate resistance at $132.52 and the critical $136.85 level. A sustained move above $137.58 could trigger additional buying pressure toward the $157-162 medium-term target range.
For this AAVE price prediction to materialize, traders should watch for RSI recovery above 40 and positive MACD divergence. Volume confirmation above the recent $17.88 million daily average would provide additional bullish validation.
Bearish Scenario
The downside case sees AAVE testing critical support at $122.88. A break below this level could accelerate selling toward the strong support zone at $116.55, representing potential downside of approximately 9% from current levels.
Risk factors include continued DeFi sector weakness, broader crypto market correction, and failure to hold above the lower Bollinger Band. The current position below all major moving averages suggests the path of least resistance remains downward.
Should You Buy AAVE? Entry Strategy
For traders considering AAVE exposure, a layered approach appears prudent. Initial positions could be established around current levels ($128), with additional accumulation planned near the $122.88 support zone.
Stop-loss orders below $116.55 would limit downside exposure while allowing room for normal volatility. Target scaling begins around $137-142 for short-term traders, with longer-term holders eyeing the $157-162 range.
Given the current technical setup, risk management remains paramount. Position sizing should account for AAVE’s $9.72 daily trading range and the potential for increased volatility during breakout attempts.
Conclusion
This AAVE price prediction suggests cautious optimism despite current technical headwinds. The analyst consensus around $137-142 short-term targets appears reasonable given oversold conditions, though the bearish momentum backdrop requires careful risk management.
The medium-term Aave forecast toward $157-162 depends heavily on broader DeFi sector recovery and successful defense of key support levels. While the long-term $190-195 targets remain possible, near-term focus should center on the immediate $137.58 breakout level.
Disclaimer: This AAVE price prediction is for informational purposes only and should not be considered financial advice. Cryptocurrency investments carry significant risks, and past performance does not guarantee future results. Always conduct your own research and consider your risk tolerance before making investment decisions.
World Liberty Financial has entered DeFi lending with the launch of World Liberty Markets, an onchain borrowing and lending platform built around its dollar-pegged stablecoin USD1.
The platform uses smart contracts to manage lending terms, replacing centralized intermediaries with transparent and automated risk controls that are visible on the blockchain.
USD1 plays a central role as the primary borrowing and settlement asset, allowing users to unlock liquidity from volatile holdings such as ETH or tokenized Bitcoin without selling those assets.
Supported collateral includes major cryptocurrencies and stablecoins, with plans to add tokenized real-world assets, extending onchain credit beyond purely crypto-native markets.
World Liberty Financial is a new entrant in the decentralized finance (DeFi) space. Connected to the family of US President Donald Trump, the project has entered the crypto lending market with the launch of World Liberty Markets.
World Liberty Markets is an onchain borrowing and lending platform built around the project’s US dollar-backed stablecoin, USD1. With USD1’s circulating supply now at around $3.4 billion, the project positions stablecoins not only as payment tools but also as a core component of blockchain-based credit markets.
This article examines the debut of World Liberty Markets and USD1 and the broader expansion of DeFi lending and credit access. It explores how onchain lending works, why stablecoins play a central role in decentralized credit, World Liberty’s long-term strategy and how users can navigate smart contract-based platforms safely.
What is World Liberty Financial?
World Liberty Financial is a DeFi initiative focused on building blockchain-based financial services, including payments, lending and treasury management. The project has drawn additional attention due to its reported links to members of the Trump family. It emphasizes the development of compliant and transparent crypto financial products.
While its political associations have attracted notice, the project’s broader vision aligns with a wider DeFi industry trend toward creating financial systems that integrate stablecoins, collateralized lending and tokenized assets within unified onchain frameworks.
Did you know? Some DeFi lending protocols can process liquidations in seconds, faster than many stock exchanges can halt trading. During sharp crypto market moves, automated bots — rather than humans — typically compete to execute these liquidations.
Debut of World Liberty Markets and USD1
World Liberty Financial has entered the digital asset lending sector, reflecting a growing focus on decentralized credit as legal frameworks become clearer. Its new platform, World Liberty Markets, debuted on Jan. 12, 2026, to facilitate cryptocurrency borrowing and lending. The system operates using World Liberty’s dollar-pegged stablecoin, USD1, alongside its WLFI governance token.
Prior to the launch of its lending initiative, USD1 was already used for:
The rapid increase in USD1’s supply suggests that it is being adopted not only as a trading pair but also as a settlement asset for a broader range of financial activities. This liquidity is now extending into onchain credit markets through World Liberty Markets.
World Liberty Markets expands DeFi lending and credit access
World Liberty Markets is an onchain protocol for lending and borrowing. It enables users to:
Deposit assets to earn yield as lenders
Provide collateral and borrow against it
Manage all positions through smart contracts rather than centralized intermediaries.
The platform supports both sides of the credit market within a single decentralized system. It is similar in structure to established DeFi lending protocols, with USD1 serving as a central liquidity asset.
Rather than relying on offchain balance sheets or manual underwriting, lending terms, collateral ratios and liquidation thresholds are enforced by automated smart contracts. Risk parameters are visible directly on the blockchain.
Did you know? In DeFi, interest rates can change block by block, meaning borrowing costs may update every few seconds on faster blockchains. This differs from traditional loans, where rates are typically fixed for months or even years.
How the onchain credit system functions
At its core, World Liberty Markets operates as a collateralized lending market. Users deposit assets into pools that are made available to borrowers. Collateral must exceed the loan value to protect lenders against default.
Stablecoins such as USDC (USDC) and Tether’s USDt (USDT)
USD1.
Interest rates vary based on supply and demand within each asset pool. When collateral values fall below required thresholds, positions may face automatic liquidation to preserve solvency.
World Liberty has also signaled plans to support tokenized real-world assets (RWAs), which could allow tokens linked to real estate or treasury instruments to be used as collateral. If implemented, this would extend onchain credit beyond purely crypto-native assets.
Why stablecoins are important for onchain lending
Stablecoins play a key role in crypto credit markets because they offer:
In World Liberty’s setup, USD1 serves as the primary currency for borrowing and lending. Users can supply volatile assets such as ETH or tokenized BTC and borrow USD1, gaining liquidity without selling those holdings.
This model resembles conventional secured lending, where borrowers pledge assets in exchange for cash, but it operates entirely on blockchain-based systems.
Stablecoin-based lending also supports more advanced financial activities, including leveraged trading, hedging strategies and treasury funding for crypto-focused businesses.
World Liberty’s OCC application and long-term strategy
World Liberty’s lending launch follows its application for a national trust bank charter with the US Office of the Comptroller of the Currency (OCC). While approval remains uncertain, the application signals a long-term strategy focused on regulatory compliance.
If granted, such a charter could potentially allow World Liberty to:
Provide custodial services
Combine stablecoin issuance with regulated financial activities
Form partnerships more easily with traditional payment systems.
This approach reflects a broader shift in the crypto industry, where companies are increasingly pursuing regulated structures rather than operating entirely outside traditional finance.
Greater regulatory clarity around stablecoins and digital asset custody in the US and other regions has reduced uncertainty for institutional participants, encouraging renewed interest in blockchain-based credit systems.
Did you know? Stablecoin issuers collectively hold more short-term US Treasury bills than many mid-sized countries’ central banks, making stablecoins an unexpected but growing participant in global government debt markets.
Evolution of crypto lending
Crypto lending markets failed in the last cycle largely due to centralized entities that:
Cases such as BlockFi and Celsius highlighted risks in centralized credit models rather than flaws in blockchain technology itself.
By comparison, DeFi lending protocols operate with:
Meanwhile, venture investment and developer activity in decentralized credit continue to grow. Projects focused on Bitcoin-backed lending, RWA tokenization and institutional DeFi systems are gaining renewed attention, suggesting that onchain credit is maturing into a more established market segment.
Navigating smart contracts and market volatility
Even with rising interest, onchain lending still carries risks, including:
Smart contract vulnerabilities
Market shocks that can trigger rapid liquidations
Regulatory uncertainty around stablecoin reserves
Liquidity concentrated in a limited set of assets.
In addition, while overcollateralized lending reduces default risk, it limits access for users without substantial crypto holdings. As a result, onchain credit currently serves mainly as a tool for capital efficiency among existing asset holders rather than a mechanism for broad financial inclusion.
Expanding support for tokenized RWAs could widen the scope of onchain credit, but it also introduces challenges related to asset verification, legal enforceability and cross-border regulation.
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The Spanish Red Cross (Creu Roja) has deployed a new blockchain-based aid distribution system, RedChain, that promises real-time donor transparency without exposing the identities of the people receiving assistance.
According to a release shared with Cointelegraph, the platform, developed with Barcelona-based infrastructure provider BLOOCK and zero-knowledge credential firm Billions Network, aims to digitize “the entire aid lifecycle from donation to disbursement.”
It replaces paper vouchers and prepaid cards with ERC‑20 aid credits issued on the Ethereum (ETH) blockchain, delivered to a mobile wallet that can be used at participating merchants via quick response (QR) codes.
Beneficiary data, including names, contact information, and case records, is kept entirely offchain in Creu Roja’s own systems. The public blockchain is used purely as a verification layer, anchoring hashes, timestamps and integrity proofs of transactions rather than personal information.
RedChain aims to separate transparency from identity
Donors and administrators can audit when and where funds were allocated and spent, while the system is designed so that no party can reconstruct individual identities from onchain records.
A spokesperson from Creu Roja told Cointelegraph, “Donors can see aggregated, verifiable information on how funds are allocated and spent,” such as how much was distributed within a program and when disbursements occurred. However, “what donors will never see are the identities of beneficiaries or their personal circumstances.”
The spokesperson said that RedChain was “explicitly designed so that transparency applies to flows and outcomes, not to individuals, allowing the Red Cross to be “accountable to donors without compromising the privacy or dignity of its beneficiaries.”
Creu Roja frames RedChain as a response to mounting pressure on humanitarian organizations to demonstrate that aid reaches its intended purpose without turning vulnerable communities into data sources.
“People seeking assistance shouldn’t have to choose between getting help and protecting their privacy,” said Francisco López Romero, CTO at Creu Roja Catalunya, in the release.
Recipients will receive digital credits in a wallet on their phone and pay at normal checkouts, making transactions indistinguishable from standard purchases and avoiding visible markers that signal someone as an aid recipient.
“We grant them credit, and they can purchase, in line with regulations, at the supermarket chain that adheres to our program,” the spokesperson said. “No one can be excluded due to technical limitations.”
The system implements a hybrid trust model. ERC‑20 tokens represent allocated aid, while spending records and eligibility checks remain in offchain databases linked to onchain proofs.
BLOOCK describes its role as operating a “blockchain as a certification layer” architecture, where cryptographic anchors make tampering with internal records detectable without ever publishing underlying data.
BLOOCK CEO Lluís Llibre told Cointelegraph, “Becauseevery relevant state change is cryptographically anchored to a public blockchain, any post-hoc modification of internal records would immediately fail verification against the immutable onchain proofs.”
He said that, essentially, the blockchain functions as a “public notary, confirming that an event occurred without revealing the content or the parties involved.”
Billions Network, meanwhile, provides the zero‑knowledge credential layer so that beneficiaries can prove eligibility or authorization without disclosing their identity or attributes. Proofs are held in the user’s own wallet rather than in a centralized identity registry.
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy https://cointelegraph.com/editorial-policy
Chainlink (LINK) outlines five key services for stablecoin issuers including real-time reserve verification and cross-chain liquidity as LINK trades at $9.44.
Chainlink (LINK) is making a direct play for stablecoin issuer business, publishing a detailed framework outlining five infrastructure services designed to help issuers scale adoption. The pitch comes as LINK trades at $9.44, down 5.23% in 24 hours and still recovering from a brutal 22% drop below $11 on February 1.
Colin Cunningham, Head of Tokenization and Alliances at Chainlink Labs, authored the breakdown. The five pillars: real-time verified reserves, built-in privacy with programmable compliance, seamless cross-chain liquidity via CCIP, automated workflows connecting legacy systems, and distribution through Chainlink’s existing network of integrations.
Why Stablecoin Issuers Should Care
The reserve verification piece addresses a persistent industry pain point. After the USDC depeg scare in March 2023 and ongoing questions about Tether’s backing, real-time proof of reserves has become table stakes for institutional adoption. Chainlink’s Proof of Reserve product already powers several major stablecoins, and the company is positioning this as essential infrastructure rather than optional.
Cross-chain liquidity might be the more compelling sell. Stablecoin issuers currently face fragmented liquidity across dozens of chains. Chainlink’s Cross-Chain Interoperability Protocol lets tokens move between networks without issuers maintaining separate deployments everywhere. For smaller issuers competing against USDT and USDC’s network effects, that’s meaningful.
The Institutional Angle
Chainlink has been quietly stacking enterprise partnerships. Swift, J.P. Morgan, and Mastercard are already using the platform for tokenized asset experiments. The company expanded its data streams to cover the U.S. stock market on January 20, using a pull-based model for sub-second updates—infrastructure that could support tokenized securities and the stablecoins used to settle them.
The compliance automation piece targets regulated issuers who need to screen transactions without sacrificing blockchain’s speed advantages. Think bank-issued stablecoins or regulated fintech players who can’t afford the reputational risk of facilitating illicit flows.
Market Reality Check
Here’s the tension: Chainlink keeps adding to its reserves (99,000 LINK on January 31) and expanding capabilities, but the token price hasn’t responded. That disconnect suggests the market is either unconvinced by the revenue potential or simply rotating out of infrastructure plays into more speculative bets.
For traders, the stablecoin issuer push represents a long-term thesis rather than an immediate catalyst. The real question is whether Chainlink can convert its institutional relationships into meaningful protocol revenue—and whether that revenue will ever flow back to LINK holders in a material way.
AAVE trades at $128.06 with analysts targeting $157-162 in the short term and $190-195 by month-end, though bearish MACD and oversold conditions suggest caution.
Aave (AAVE) is currently trading at $128.06, showing modest gains of 0.31% in the past 24 hours. Despite recent technical weakness, several analysts maintain optimistic price targets for the leading DeFi lending protocol token in the coming weeks.
Recent analyst coverage has painted a cautiously optimistic picture for AAVE’s price trajectory. Caroline Bishop provided an AAVE price prediction on January 27, stating: “AAVE Price Prediction Summary: Short-term target (1 week): $157-162; Medium-term forecast (1 month): $190-195 range; Bullish breakout level: $157.68; Critical support: $149.32.”
Peter Zhang echoed similar sentiment on January 26, noting that “AAVE shows potential recovery toward analyst targets of $190-195 by February 2026, despite current bearish momentum.” Meanwhile, Zach Anderson highlighted the mixed technical picture, observing that “Aave (AAVE) trades at $156.65 with analysts eyeing $190-195 by February 2026, though bearish MACD and oversold conditions suggest near-term caution around $151 support.”
AAVE Technical Analysis Breakdown
The current technical setup for AAVE presents a mixed picture with both concerning and encouraging signals. The token is trading well below all major moving averages, with the 20-day SMA at $152.67 and the 50-day SMA at $159.40 acting as significant resistance levels.
The RSI reading of 32.31 places AAVE in neutral territory but approaching oversold conditions, which could signal a potential bounce. However, the MACD histogram at 0.0000 indicates bearish momentum remains intact, suggesting any recovery may face headwinds.
Bollinger Bands analysis reveals AAVE is positioned at 0.10, very close to the lower band at $121.87, indicating the token is trading near technical support. The upper band sits at $183.47, highlighting the significant distance to overhead resistance.
Key technical levels show immediate resistance at $130.84 and stronger resistance at $133.63, while support levels are found at $125.46 and $122.87. The daily Average True Range of $9.77 indicates moderate volatility in recent trading sessions.
Aave Price Targets: Bull vs Bear Case
Bullish Scenario
In the optimistic case for this Aave forecast, AAVE could rally toward the $157-162 target zone if it breaks above the immediate resistance at $133.63. A sustained move above the 7-day SMA at $136.46 would likely trigger momentum buying, potentially carrying the token toward the $157.68 breakout level identified by analysts.
Should AAVE clear the $157-162 resistance zone with strong volume, the path opens toward the medium-term target of $190-195. This scenario would require a broader DeFi sector recovery and positive sentiment around lending protocols.
Bearish Scenario
The bearish case centers around the current technical weakness evidenced by the bearish MACD and position below all major moving averages. A break below the critical support at $122.87 could trigger further selling pressure toward the Bollinger Band lower support at $121.87.
If selling accelerates, AAVE could retest psychological support levels around $115-120, representing a potential 10-15% downside from current levels. The oversold RSI conditions might limit extreme downside, but weak market sentiment could extend any decline.
Should You Buy AAVE? Entry Strategy
For investors considering AAVE, the current oversold technical conditions present both opportunity and risk. A conservative approach would involve waiting for a break above $133.63 resistance with confirming volume before initiating positions.
More aggressive buyers might consider dollar-cost averaging near current levels around $125-130, with a stop-loss below the critical support at $122.87. The risk-reward setup favors patience, as a successful break toward $157-162 would offer attractive upside potential.
Position sizing should account for AAVE’s volatility, with the $9.77 daily ATR suggesting meaningful intraday price swings. Consider scaling into positions rather than taking full exposure immediately.
Conclusion
This AAVE price prediction suggests cautious optimism for the coming weeks, with analyst targets of $157-162 in the short term appearing achievable despite current technical weakness. The medium-term Aave forecast of $190-195 by month-end requires significant momentum shifts and broader market cooperation.
The current setup favors patient investors willing to wait for technical confirmation above key resistance levels. While the oversold conditions may limit downside, the bearish momentum indicators suggest any rally may face early resistance.
Disclaimer: Cryptocurrency price predictions are highly speculative and subject to extreme volatility. This analysis is for informational purposes only and should not be considered financial advice. Always conduct your own research and consider your risk tolerance before making investment decisions.
Bitcoin-backed borrowing at the Gibraltar-based Xapo Bank is increasingly being used for long-term financial planning rather than short-term liquidity, according to the bank’s 2025 Digital Wealth Report.
Shared with Cointelegraph, the report says 52% of the Bitcoin-backed loans issued by Xapo in 2025 carried a 365-day term, with many of those loans remaining open even as new loan creation slowed later in the year.
The bank, which primarily caters to high-net-worth individuals and private clients, said the trend reflects members using Bitcoin as collateral to unlock liquidity while preserving long-term exposure, rather than tapping loans for temporary cash needs.
“Long-term Bitcoiners, many of whom are now holding the majority of their wealth in Bitcoin, finally felt comfortable taking some profit,” the report said. “At the same time, the underlying conviction didn’t waver. Most of our long-term members continued to hold the bulk of their Bitcoin through periods of heavy market movement.”
The data comes from Xapo’s first calendar year of operating its Bitcoin-backed lending product, which allows qualified clients to borrow US dollars against their Bitcoin holdings. It offers a view into how Bitcoin is being used inside regulated banking rails as productive collateral integrated into longer-term financial planning.
From launch narrative to observed behavior
Xapo launched its Bitcoin-backed USD loans on March 18, 2025, targeting long-term Bitcoin holders seeking liquidity without selling their assets.
At the time, the bank positioned the product as a conservative alternative to earlier crypto lending models, offering loan terms of up to 365 days and relatively low loan-to-value ratios.
Xapo Bank CEO Seamus Rocca previously told Cointelegraph that growing confidence in Bitcoin’s long-term outlook was encouraging holders to borrow rather than liquidate their positions, signaling a shift away from short-term speculation toward longer-term thinking.
The 2025 report suggests that expectation has materialized in practice. While loan issuance moderated later in the year, outstanding loan balances continued to grow, indicating that borrowers were keeping loans open rather than using them as short-term liquidity tools.
Rocca said in the report that the pattern reflects “disciplined, private-bank-style financial behaviour,” with members using Bitcoin as productive capital rather than a short-term liquidity tool.
Loan volumes are also concentrated in regions like Europe and Latin America. According to Xapo Bank, the two regions accounted for 85% of total loan volume, at 56% and 29% respectively.
Members’ BTC holdings, per region, quarter-on-quarter. Source: Xapo Bank
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy https://cointelegraph.com/editorial-policy
Fellow analyst Titan of Crypto said that after sweeping the previous monthly low at $84,000 and past quarterly low around $80,000, BTC price could rebound toward the first fair value gap (FVG) between $79,000 and $81,000.
Above that, the next area of interest is the second FVG between $84,000 and $88,000.
BTC/USD daily chart. Source: Titan of Crypto
A FVG happens when the price moves very fast, leaving a gap in a three-candle pattern. The first candle’s wick and the third candle’s wick don’t overlap at all, showing an imbalance where no trading occurred.
Additionally, exchange order-book liquidity data from CoinGlass showed the price pinned below two sell-order clusters at $80,000 and just above $85,000.
“2 strong liquidity levels shining bright for $BTC,” Bitcoin analyst AlphaBTC said in his latest post on X, adding:
“Will markets get enough of a bounce at the start of Feb to take both out? IMO yes, but it may take a little time and the US passing the Crypto bill as a catalyst.”
Bitcoin liquidation heatmap. Source: CoinGlass
If the $80,000 level is broken, it could spark a liquidation squeeze, forcing short sellers to close positions and driving prices toward $85,000, which is the next major liquidity cluster.
February’s first Bitcoin ETF inflows give hope
Discussing whether demand is returning at lower BTC prices, market analyst CoinBureau was optimistic.
“Bitcoin spot ETFs recorded $561.9M in net inflows yesterday, ending 4 straight days of outflows. Not a single ETF saw outflows,” the analyst said in a Tuesday post on X, adding:
“February’s first inflow day has already outpaced all of January. The bid is back.”
Data from market intelligence platform Santiment shows that Bitcoin’s latest rebound to $78,300 from $74,600 came after FUD (fear, uncertainty and doubt) levels reached their highest levels since November 2025.
This signals the potential for a relief rally as seen in “previous two instances following FUD,” Santiment said.
Bitcoin: positive vs. negative commentary. Source: Santiment
As Cointelegraph reported, the (MVRV) z-score has reached its lowest level ever recorded, signalling “fire-sale valuations for Bitcoin,” and also hinting at a potential rebound in the near term.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
Bitcoin has started a relief rally, which is expected to face selling near $84,000.
Several major altcoins are at risk of breaking below their support levels if the bulls fail to clear the overhead resistance levels.
Bitcoin (BTC) turned up from the $74,508 level on Monday, and the buyers are attempting to maintain the price above $79,000. BTC analyst PlanC said in a post on X that the fall to the $75,000 to $80,000 zone might be “the deepest pullback opportunity this Bitcoin bull run.”
The Crypto Fear & Greed Index, which measures overall crypto market sentiment, plunged into the “Extreme Fear” zone with a score of 14, the lowest in 2026. Crypto analytics platform Santiment said in a report on Friday that the extreme negativity on social media was a silver lining as “historically, crypto markets move in the opposite direction of the crowd’s expectations.”
Crypto market data daily view. Source: TradingView
However, not everyone believes that a bottom is in. Several analysts are bearish on BTC and expect it to fall further. Traders on Polymarket also anticipate the downtrend to continue, with the odds of BTC falling below $65,000 rising to 72% on Monday.
Could BTC and the major altcoins start a strong relief rally in the near term? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
S&P 500 Index price prediction
The S&P 500 Index (SPX) fell to the 50-day simple moving average (6,864) on Thursday, but the bulls successfully defended the level.
The bulls will have to thrust the price above the resistance line of the ascending channel pattern to indicate the resumption of the uptrend. The index may then rally to 7,290.
Contrary to this assumption, if the price turns down from the resistance line and breaks below the 20-day exponential moving average ($6,929), it suggests that the index may remain inside the channel for a while longer. The bears will gain the upper hand on a close below the support line. The index may then decline toward the 6,550 support.
US Dollar Index price prediction
The US Dollar Index (DXY) tumbled below the 96.21 support on Tuesday, but the bears could not sustain the lower levels.
The bulls pushed the price back above the 96.21 level on Wednesday, but the recovery is expected to face selling at the 20-day EMA ($97.78). If the price turns down sharply from the 20-day EMA, the bears will attempt to sink the index below the 96.21 level.
On the other hand, a break and close above the 20-day EMA suggests that the break below the 96.21 level may have been a bear trap. The index may then rally toward the stiff overhead resistance of 100.54.
Bitcoin price prediction
BTC fell below the Nov. 21, 2025, low of $80,600 on Saturday and reached the critical support of $74,508 on Monday.
The relative strength index (RSI) plunged into the oversold territory, signaling a possible relief rally in the near term. The Bitcoin price is expected to face selling in the $80,600 to $84,000 zone. If the BTC/USDT pair turns down sharply from the overhead zone, the risk of a break below the $74,508 level increases. The next support on the downside is at $60,000.
The first sign of strength will be a break and close above the moving averages. That suggests the $74,508 level will continue to behave as a floor for some more time.
Ether price prediction
Ether (ETH) broke below the $2,623 level on Saturday and fell to the next major support of $2,111 on Monday.
The RSI has slipped into the oversold category, indicating that the selling may have been overdone in the near term. That increases the possibility of a relief rally, which is expected to face selling at the 20-day EMA ($2,833).
A shallow bounce off the current level or a sharp reversal from the 20-day EMA suggests that the advantage remains with the bears. If the $2,111 support cracks, the Ether price may descend to $1,750. The bulls will be back in the game after the ETH/USDT pair rises above the moving averages.
BNB price prediction
BNB (BNB) plummeted below the uptrend line and the $790 support on Saturday, indicating aggressive selling by the bears.
The bulls are attempting to protect the $730 support, but the relief rally is expected to face selling at the breakdown level of $790. If the BNB price turns down sharply from $790, it signals that the bears have flipped the level into resistance. That increases the prospects of a drop to $700.
Instead, if the price closes above $790, it suggests that the lower levels are attracting buyers. The BNB/USDT pair may then rally to the moving averages, where the bulls are expected to encounter solid selling by the bears.
XRP price prediction
XRP (XRP) is witnessing a tough battle between the buyers and sellers at the crucial $1.61 support.
A shallow bounce increases the likelihood of a drop to the support line of the descending channel pattern. Buyers are expected to defend the support line, as a break below it might sink the XRP/USDT pair to the Oct. 10, 2025, low of $1.25.
The moving averages are the critical resistance to watch out for on the upside. A close above the moving averages suggests that the XRP price may remain inside the channel for a few more days.
Solana price prediction
Solana (SOL) collapsed below the $117 level on Saturday and reached the critical support at $95.
The bulls have successfully defended the $95 level, but the failure to start a strong bounce suggests that the bears continue to exert pressure. If the $95 support gives way, the SOL/USDT pair may start the next leg of the downtrend to $79.
Contrarily, if the Solana price rises above $107, the recovery may reach the 20-day EMA ($121). Sellers will attempt to defend the 20-day EMA, but if the bulls prevail, the pair may march toward the $147 resistance.
The bulls have started a relief rally, which is expected to face selling at the 20-day EMA ($0.12). If the Dogecoin price turns down sharply from the 20-day EMA, the risk of a break below the $0.10 level increases. The DOGE/USDT pair may then nosedive to $0.08.
Alternatively, if buyers pierce the 20-day EMA, it suggests that the market has rejected the break below the $0.10 level. The pair will then attempt a rally to the solid overhead resistance at $0.16.
Cardano price prediction
Cardano (ADA) fell below the Oct. 10, 2025, low of $0.27 on Saturday, signaling that the bears remain in charge.
The Cardano price has bounced off the support line but is expected to face selling at the 20-day EMA ($0.34). If the price turns down sharply from the 20-day EMA, the bears will again try to yank the ADA/USDT pair below the support line. If they succeed, the downtrend may extend to $0.20.
The bulls will have to catapult the price above the downtrend line to suggest that the downtrend may be ending. The pair may then ascend to the breakdown level of $0.50.
Bitcoin Cash price prediction
Bitcoin Cash (BCH) fell toward its pattern target of $456 on Saturday, where the buyers stepped in.
The bulls have started a relief rally, which is expected to face resistance in the zone between the 50% Fibonacci retracement level of $535 and the 61.8% retracement level of $551. If the Bitcoin Cash price turns down from the resistance zone, the bears will attempt to pull the BCH/USDT pair below $500.
On the contrary, if buyers propel the price above $551, the pair may reach the 20-day EMA ($571). A close above the 20-day EMA signals that the bulls are back in the game.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
India’s e-rupee has evolved from a domestic digital payment experiment into a strategic instrument aimed at influencing cross-border trade, remittances and tourism flows.
The e-rupee represents sovereign digital money, enabling direct and final settlement without relying on multiple intermediaries for international payments.
India views cross-border CBDC use as a way to address long-standing inefficiencies in global payments, including high costs and slow settlement times.
Proposals to link the e-rupee with other countries’ CBDCs reflect India’s effort to simplify trade and tourism settlements using sovereign digital currencies.
India’s e-rupee is no longer just a tech experiment; it has become an important part of the country’s financial plans. With emerging proposals to take it beyond India’s borders, the e-rupee is now positioned as a critical tool for streamlining international trade, remittances and tourism. It is also increasingly discussed in the context of India’s geopolitical strategy.
This article explores what the e-rupee is and how India plans to use it to address cross-border challenges. It examines the strategic objectives behind the move, how such transactions could function and what a successful implementation may entail.
What is the e-rupee?
The e-rupee is India’s central bank digital currency (CBDC), a digital form of the Indian rupee issued by the Reserve Bank of India (RBI) on par with physical cash. It functions like digital cash stored in a wallet, with the RBI acting as the guarantor of its value. The RBI is currently running pilot programs for both retail (public use) and wholesale (institutional use) versions to test the technology, distribution and practical applications.
Unlike India’s Unified Payments Interface (UPI), which facilitates real-time transfers between bank accounts, the e-rupee represents sovereign digital money itself. This allows for direct, instantaneous and final settlement without relying on multiple intermediaries.
Did you know? The idea of cross-border CBDCs gained momentum after central banks realized that even instant domestic payments can take days to settle internationally because of legacy correspondent banking layers.
The cross-border challenges India aims to address
Current international payments depend heavily on correspondent banking networks and systems tied to the US dollar. These often involve delays, high costs, limited transparency and dependence on intermediary banks. Such inefficiencies affect businesses, remittance senders and travelers.
India views the e-rupee as a potential solution by enabling a digital, interoperable infrastructure for cross-border settlements.
Recent policy discussions have increasingly focused on international applications beyond domestic use. The RBI has proposed linking the e-rupee with other countries’ CBDCs, particularly those of BRICS nations, to streamline cross-border trade and tourism transactions.
Four strategic motivations behind India’s global e-rupee push
A blend of economic, financial and strategic priorities drives India’s interest in taking the e-rupee beyond domestic borders. These objectives reflect how New Delhi aims to modernize cross-border payments while strengthening the rupee’s role in global transactions.
Reducing costs and improving speed for remittances and payments: India is one of the world’s top recipients of remittances, and many Indians travel or work abroad. Traditional cross-border transfers involve multiple banks and foreign exchange conversions, increasing both time and cost. A direct e-rupee corridor or interoperability with other CBDCs could reduce intermediaries, enabling faster and lower-cost transfers that benefit migrant workers, families and small businesses.
Simplifying trade and tourism settlements: Proposals to connect CBDCs among BRICS countries aim to ease payments for trade and tourism by allowing direct settlement in sovereign digital currencies. This would reduce the need for dollar-based conversions or complex intermediary processes, which is especially relevant given growing trade volumes within BRICS.
Promoting the internationalization of the rupee: India has long sought to expand the rupee’s use in global trade settlements and financial flows without framing the effort as de-dollarization. Linking the e-rupee with other CBDCs could enhance its efficiency and international appeal, particularly in Asia and among BRICS partners.
Providing a regulated alternative to private stablecoins: While US dollar-pegged stablecoins and other private digital assets are seeing wider global adoption, the RBI has warned that they carry monetary and systemic risks due to limited oversight and lack of sovereign backing. A CBDC-based cross-border system offers a regulated alternative that reduces the risk of financial fragmentation.
Did you know? In early global CBDC pilots, banks reported that real-time cross-border settlement reduced the need for large pre-funded nostro accounts, freeing up idle capital for lending or liquidity management.
How cross-border e-rupee transactions could work
Experts and policymakers have outlined several practical approaches to enable seamless cross-border use of the e-rupee:
Bilateral CBDC corridors: Central banks from two countries establish direct agreements for e-rupee settlement, including foreign exchange conversion mechanisms and aligned regulatory standards.
Multilateral platforms: A shared technical infrastructure connects CBDCs from multiple countries, modeled on initiatives such as the multi-CBDC Bridge, to promote broader interoperability.
Linking domestic payment systems with CBDC settlement: India has seen success in connecting UPI with select foreign payment networks. This approach integrates interoperable payment rails, with the e-rupee serving as the underlying settlement asset.
Barriers to global CBDC interoperability
Cross-border CBDC integration remains complex. Countries must harmonize technology standards, governance frameworks, compliance requirements, including Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) rules, and mechanisms for dispute resolution. A persistent challenge is managing settlement imbalances, where one country accumulates excess holdings of another’s digital currency without corresponding outflows.
Geopolitical factors also play a role, as such initiatives could prompt responses from dominant currency issuers or key trade partners. Navigating these efforts requires careful consideration of broader strategic dynamics.
Did you know? Several countries exploring CBDC linkages see tourism as a surprisingly strong use case, as visitors could pay digitally in sovereign money without opening local bank accounts or converting cash.
Key outcomes and milestones for the global e-rupee
For India, taking the e-rupee beyond its borders would mean delivering measurable outcomes. These include lower transaction costs and faster settlement times for cross-border payments, wider international use of the rupee in trade and tourism, and successful operational pilots that enable banks and fintech firms to conduct borderless transactions using the e-rupee.
Key milestones could include launching pilot corridors with strategic partners, strengthening regulatory frameworks and securing broader participation from financial institutions.
Positioning India in the future of money
India’s efforts to extend the e-rupee internationally reflect a broader strategic vision. The policy aims to modernize cross-border payments, safeguard financial system resilience and expand the rupee’s global footprint within a digital, regulated environment.
Whether achieved through bilateral linkages, multilateral platforms or enhanced interoperable systems, the e-rupee could alter how international money flows are structured over time. Realizing this potential, however, will require policymakers to address the underlying technical, regulatory and geopolitical complexities effectively.