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    Bitcoin Due One More Dip Before BTC Price Uptrend Continues, Traders Agree

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    Bitcoin Due One More Dip Before BTC Price Uptrend Continues, Traders Agree

    Bitcoin (BTC) eyed $81,000 into Sunday’s weekly close as traders saw a fresh support retest next.

    Key points:

    • Bitcoin preserves $80,000 over the weekend, but traders are waiting for a dip to retest a familiar chart feature.
    • Continuation higher remains the overall consensus for what happens afterward.
    • US CPI data is due out, with Bitcoin already “pricing in” the result.

    Bitcoin traders: Sub-$80,000 retest next

    Data from TradingView showed BTC price action trending higher after a mostly flat weekend, avoiding a return below $80,000.

    BTC/USD one-hour chart. Source: Cointelegraph/TradingView

    After a midweek trip to near $83,000 failed to hold, however, traders saw the need for BTC/USD to retest support — something that they now reiterated.

    Of particular interest was the bull market support band — two moving averages just below the $80,000 mark.

    “On the low-timeframes, after rejecting at the high-timeframe resistance range marked in purple, I believe the most likely outcome is a short-term pullback toward the 2D Bull Market Support Band, which has been a strong reversal zone over the last couple of months,” analytics account Cryptic Trades wrote alongside a chart in its latest post on X.

    “As long as price continues to hold above the support band and the broader high-timeframe support range marked in blue around $75K, which aligns with the April 2025 bottoming formation, I believe the most likely outcome remains further upside.”

    BTC/USD one-day chart. Source: Cryptic Trades/X

    Trader Daan Crypto Trades agreed, calling the initial move above the support band “not a clean break.”

    “Would want to see a move to at least clear that sticky area around the low $80Ks and hold there for a week or two,” he told X followers.

    BTC/USD one-week chart. Source: Daan Crypto Trades/X

    CPI already “priced in” to BTC

    Ahead of fresh US inflation data next week, trader Killa warned of headwinds returning for BTC price strength.

    Related: Bitcoin Bollinger Bands push key breakout as creator acts on positive signal

    The Consumer Price Index (CPI) for April, due out on Tuesday, was set to show the ongoing impact of the US-Iran war and oil-price rises on the economy.

    “Its priced in,” Killa wrote on X.

    “BTC has rallied after the last two CPI releases. However,  if we follow 2025 CPI price action, we may see bigger players start de-risking into the event counter narrative.”

    BTC/USD chart with CPI releases. Source: Killa/X

    Support levels to watch also included the area around the bull market support band, with $74,000 on the radar, should it fail.

    “I would watch for liquidity sweeps around this pivot to signal the next move,” Killa added.

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    Hyperliquid, EdgeX, Pump.fun Return $96M to Token Holders in 30 Days

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    Hyperliquid, EdgeX, Pump.fun Return M to Token Holders in 30 Days

    Three of DeFi’s relatively young applications, including Hyperliquid, EdgeX and Pump.fun, have distributed a combined $96.3 million to token holders over the past 30 days, as the sector’s focus shifts to actual earnings.

    Hyperliquid led the pack, generating $50.95 million in revenue over the period, all of which went directly to token holders with zero spent on incentives, according to data from DefiLlama. Pump.fun came in second with $22.09 million returned to holders out of $38.81 million in total revenue. EdgeX followed with $23.26 million distributed to holders from $8.26 million in protocol revenue, suggesting that the platform is drawing on reserves or alternative income streams to reward holders.

    On an annualized basis, Hyperliquid has generated $945.87 million in revenue over the past year, all returned to holders, while Pump.fun sits at $481.15 million and EdgeX at $236.42 million.

    Among other major protocols, Chainlink returned $4.63 million to holders, Aerodrome $3.53 million and Uniswap $3.29 million across 44 chains. PancakeSwap generated $3.94 million in revenue but returned $2.48 million to holders while spending $905,260 on incentives.

    Related: DeFi can freeze stolen funds, but not everyone agrees it should

    Crypto community now focuses on revenue

    The data comes as revenue is becoming the metric that matters most in crypto, with token holders pushing protocols to justify their valuations through actual earnings rather than transaction volumes or network growth figures.

    “Nobody cares that your chain does 10x the TPS anymore,” wrote Robbie Klages, co-founder of The Rollup, referring to a blockchain’s measure of transactions per second. “The market is ‘show me the money right now.’ Treat it like a business not a network growth thesis,” he added.

    Top DeFi protocols by Holders Revenue. Source: DefiLlama

    Another X user wrote that the shift from narrative to earnings is “permanent now,” warning that protocols unable to show real revenue will be valued like pre-revenue startups in a rate hike environment, a reference to the kind of sharp devaluations that hit speculative assets when capital gets expensive.

    Related: Aave-Linked DeFi United Details rsETH Recovery Plan

    DeFi is becoming backend for onchain economy

    Andre Cronje, founder of the popular DeFi protocol Yearn.Finance, said that DeFi in 2026 looks less like a speculative playground and more like functioning financial infrastructure. He noted that stablecoins have grown into a $320 billion market led by Tether and Circle, decentralized exchanges are processing over $160 billion in monthly spot volume and perpetual DEXs are handling $540 billion monthly.

    Cronje added that lending protocols, including Aave, Morpho and Maple Finance, are sitting on $28 billion in active loans, while real-world assets are increasingly being used as onchain collateral. “DeFi is no longer just competing for APY. It is becoming the backend for the onchain economy,” he wrote on X.

    Magazine: Guide to the top and emerging global crypto hubs — Mid-2026

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    AAVE Price Prediction: $105 Target by June as DeFi Lending Momentum Builds

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    AAVE Price Prediction: 5 Target by June as DeFi Lending Momentum Builds


    James Ding
    May 10, 2026 08:39

    AAVE sits perfectly positioned at $96.92 with whales loading 65% long positions and aggressive buying pressure emerging. Technical setup points to $105 within 8 weeks, though failure below $92 inva…

    Market Context: Why AAVE is Moving Now

    The DeFi lending space is quietly heating up again, and AAVE is catching the early wave at $96.92. While the broader crypto market remains choppy, decentralized finance protocols are showing renewed institutional interest as traditional finance continues embracing on-chain lending mechanisms.

    AAVE’s current positioning above its 20-day moving average at $94.21 signals the end of the recent consolidation phase. The protocol’s fundamental strength in capturing lending market share positions it well for the next leg up, especially as Blockchain.news reports increasing institutional adoption across DeFi protocols.

    Indicator Alignment

    The technical picture presents a compelling setup despite mixed signals. With RSI at 52.28, momentum sits in neutral territory but shows room for expansion. More telling is the Bollinger Band position at 0.89 – AAVE is pressing against the upper band at $97.65, indicating building pressure for a breakout.

    The MACD histogram sitting at zero with a slightly bearish reading of -0.90 suggests momentum is coiling rather than fading. This compression often precedes significant moves, and given the strong support base around $94, the path of least resistance points upward.

    Whales & Smart Money Positioning

    Smart money is positioning aggressively long on AAVE. The top traders’ long/short ratio of 1.82 (64.6% long) reveals institutional confidence, while the aggressive buy/sell ratio of 1.44 shows active accumulation. When whales position this heavily, they typically see something retail hasn’t caught onto yet.

    The current funding rates and derivative positioning support the bullish sentiment. This institutional backing provides the foundation for sustained price appreciation, particularly as Blockchain.news analysis shows increasing activity in the DeFi lending sector.

    Strategic Positioning

    Bull Case (70% probability): AAVE breaks above $98.57 resistance within the next 10 days, triggering momentum toward $105 by early July. The combination of whale positioning, positive funding rates, and DeFi sector rotation supports this scenario. Key catalyst: sustained volume above $15M daily.

    Bear Case (30% probability): Failure to hold $94.21 support sends AAVE back to test the $92.37 strong support level. This scenario activates if Bitcoin drops below $67,000 or if DeFi faces renewed regulatory headwinds. Break below $90 invalidates the bullish structure entirely.

    The risk/reward strongly favors the bulls here. With increased DeFi lending activity and strong whale positioning, AAVE appears ready for its next major move. Position accordingly, but respect the $92 invalidation level.

    Blockchain.news Crypto Market

    Image source: Shutterstock


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    CLARITY Can Bring Crypto Industry Back to US: Attorney

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    CLARITY Can Bring Crypto Industry Back to US: Attorney

    Passing the Digital Asset Market Clarity Act of 2025, also known as CLARITY, will help to reshore the crypto industry in the United States, according to Bill Hughes, the senior counsel and director of global regulatory matters at Consensys, a crypto infrastructure company. 

    “The US dollar is the world’s largest fiat on-ramp for cryptocurrency, accounting for over $2.4 trillion in volume between July 2024 and June 2025,” Hughes said.

    However, the vast majority of crypto trading volume takes place on exchanges based outside of the United States, Hughes said, adding that Binance alone accounted for over 38% of all centralized exchange trading volume in December 2025.

    Coinbase was the only US-based exchange out of the 10 listed on Coingecko’s top 10 centralized exchanges report for 2025, and it only had a 6.1% market share. 

    Top 10 centralized crypto exchanges by trading volume in 2025. Source: Coingecko

    Passing the CLARITY Act would cement clear rules for the crypto industry in the US, formally ending years of regulatory uncertainty for the sector and encouraging projects to build in the US; however, time is running out for passing the bill, according to Hughes and other crypto industry executives.

    Related: US senator says crypto market structure vote may happen by August

    The window to pass the bill is closing due to midterms

    The window to pass crypto market legislation is “unforgiving” due to the upcoming US midterm elections in November and the midterm campaign season preceding the elections, Hughes said. 

    “The Senate has only weeks to move the bill before the August recess, after which the midterm election calendar takes over,” he said. 

    If no progress is made on the bill, the next opportunity to pass a comprehensive crypto market regulatory framework may not occur until 2030, he warned.

    The Senate Banking Committee has scheduled a markup for the bill on Thursday of the week following this publication. 

    Speaking at the Consensus 2026 crypto industry conference in Miami, Florida, Brad Garlinghouse, the CEO of crypto software company Ripple Labs, warned that despite recent progress on the bill, its passage into law still isn’t guaranteed. 

    A HarrisX poll found that a majority of those surveyed supported the CLARITY Act. Source: HarrisX

    A poll published by HarrisX in May found that 52% of the 2,028 registered US voters surveyed supported passing the CLARITY Act.

    “Support for the CLARITY Act crosses party lines,” according to HarrisX, which found that the bill had strong support in both the Democratic and Republican political parties.

    Magazine: Will the CLARITY Act be good — or bad — for DeFi?

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    TeraWulf’s AI Revenue Surges 117% but Posts $427M Loss

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    TeraWulf’s AI Revenue Surges 117% but Posts 7M Loss

    Bitcoin miner TeraWulf posted a net loss of $427 million in the first quarter of 2026, up from the $61.4 million loss recorded in the same period a year earlier.

    Total revenue for the quarter came in at $34 million, with high-performance computing (HPC) lease revenue accounting for $21 million, roughly 60% of the total and a 117% jump from the prior quarter, according to a Friday announcement. Bitcoin mining revenue fell 50% to around $13 million.

    The HPC revenue was driven by 60 megawatts of operational critical IT capacity at Lake Mariner, one of North America’s largest HPC campuses, leased to Core42. TeraWulf is also coordinating infrastructure delivery with Fluidstack and Google, with additional capacity buildings on track for delivery in 2026.  The company ended the quarter with approximately $3.1 billion in cash.

    “Our capital structure is designed to align long-term financing with contracted cash flows, supporting disciplined growth while maintaining financial flexibility,” chief financial officer Patrick Fleury said.

    Related: CoreWeave shows how crypto-era infrastructure quietly became AI’s backbone

    TeraWulf accelerates AI transition

    In October last year, TeraWulf announced a 25-year lease deal with Fluidstack, backed by Google, worth around $9.5 billion in contracted revenues, an expansion of an earlier 10-year commitment. The miner is also building out a national pipeline of power-advantaged sites, including a newly acquired 480 MW site in Hawesville, Kentucky, a 300 MW project in Lansing, New York, and a 210 MW site in Morgantown, Maryland, with potential to scale to 1 gigawatt.

    “We are building a power-advantaged platform that we believe is increasingly differentiated in a market constrained by access to power,” CEO Paul Prager said, noting that the company’s Abernathy joint venture, a 168 MW HPC project under a 25-year lease, remains on track for delivery in the fourth quarter of 2026.

    Shares of WULF closed the day down 2.6%, though the stock has gained more than 105% since the start of the year and is up over 30% in the past month.

    TeraWulf shares decline. Source: Yahoo! Finance

    Related: Bitcoin Miner Bitdeer Liquidates Entire BTC Treasury, Holdings Fall to Zero

    Riot’s data center business generates $33 million in revenue

    As Cointelegraph reported, Riot Platforms posted $167.2 million in revenue for the first quarter of 2026, with its newly launched data center business contributing $33.2 million, helping offset a decline in Bitcoin mining revenue, which fell to $111.9 million from $142.9 million a year earlier.

    Bitcoin miners are pivoting to AI infrastructure as shrinking margins push the industry toward more predictable revenue, with Core Scientific, MARA Holdings, Hive, Hut 8 and Iren converting mining facilities into data centers or acquiring AI compute assets.

    Magazine: Bitcoin will not hit $1M by 2030, says veteran trader Peter Brandt

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    AAVE Price Prediction: Bulls Eye $105 Breakout as DeFi Momentum Builds

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    AAVE Price Prediction: 5 Target by June as DeFi Lending Momentum Builds


    Felix Pinkston
    May 09, 2026 08:43

    AAVE breaks above key resistance with technical indicators aligning for a push toward $105. The confluence of moving average support and positive market structure suggests upside potential, though …

    The Technical Foundation

    AAVE has cleared a significant resistance zone around $96, establishing a platform for the next phase of price discovery. The breakout comes with legitimate conviction as buyers step in at higher prices, demonstrating appetite for exposure despite the asset trading near recent highs. Moving averages are providing support underneath current price action, creating a foundation that suggests the path of least resistance points upward.

    The daily chart reveals a consolidation pattern that appears to be resolving to the upside. Volume patterns during recent sessions indicate institutional interest rather than retail speculation, with sustained accumulation visible across multiple timeframes. This type of controlled buying typically precedes measured moves rather than violent squeezes that quickly reverse.

    Market Structure Analysis

    The broader DeFi sector is experiencing renewed interest as lending protocols demonstrate resilience through various market cycles. AAVE’s position as a leading protocol in the space positions it to benefit from sector rotation into yield-generating assets. Blockchain.news analysis shows that DeFi tokens have been quietly building strength while attention focuses on other narratives.

    Key resistance levels cluster around the $100 psychological barrier, followed by the more significant $105 zone where profit-taking could emerge. The technical setup suggests these levels are achievable within a 10-day timeframe assuming current momentum persists. Support has been established in the low-$90s range, providing a backstop for any temporary pullbacks.

    Risk Assessment and Strategy

    The probability-weighted scenario favors continued upside, but traders should remain aware of potential reversal points. A failure to hold above $94 would signal that the breakout lacks conviction and could trigger a retest of lower support around $88. However, the current price structure suggests buyers are committed to defending recent gains.

    For position sizing, the setup rewards patience with measured entries rather than aggressive speculation. Blockchain.news data indicates that successful DeFi trades typically develop over 1-2 week timeframes, allowing fundamentals to catch up with technical moves. The $105 target represents a logical profit-taking zone where resistance could materialize, making it prudent to scale out positions rather than holding for extended runs.

    The swing trading approach involves monitoring how AAVE handles the $100 level – a clean break with volume would confirm the bullish thesis and open the door to $105+. Conversely, rejection at round numbers with expanding selling pressure would suggest the need for patience and potential re-entry at lower levels.

    Blockchain.news Crypto Market

    Image source: Shutterstock


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    DePIN: Decentralized Physical Infrastructure Networks Explained

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    DePIN: Decentralized Physical Infrastructure Networks Explained

    DePIN (Decentralized Physical Infrastructure Networks) is a movement that uses blockchain technology and token incentives to build and maintain real-world infrastructure.

    By crowdsourcing resources like wireless connectivity, computing power, and energy, DePIN projects challenge traditional centralized providers by offering more efficient, cost-effective, and resilient alternatives.

    The Shift from Centralized CapEx to Decentralized Incentives

     

    Building physical infrastructure—like 5G towers, data centers, or weather stations—historically required billions of dollars in upfront capital (CapEx) from massive corporations. DePIN flips this model. Instead of a single company building everything, a network of individual contributors provides the hardware (routers, GPUs, or dashcams).

    In return for their contribution, these participants earn crypto tokens. This creates a “flywheel effect”: as the network grows, the service becomes more valuable, attracting more users and further rewarding the hardware providers.

    The Four Pillars of DePIN

    By mid-2026, the DePIN sector has matured into four dominant categories:

    1. Wireless Networks: Projects like Helium and World Mobile allow individuals to host hotspots or towers to provide 5G and IoT coverage. This has significantly expanded internet access in underserved and rural areas where traditional telcos find it unprofitable to build.

    2. Computing and AI: With the global explosion in AI demand, networks like Akash and Render aggregate idle GPU and CPU power from around the world. Enterprises now use these networks to run complex AI models at a fraction of the cost of legacy cloud providers.

    3. Data Storage: Filecoin and Arweave provide decentralized alternatives to services like Amazon S3. In 2026, these are increasingly used by institutions that require “permanent” and uncensorable data storage for historical or legal records.

    4. Sensors and Mapping: Projects like Hivemapper use dashcams in thousands of vehicles to build real-time, high-definition maps. These networks often surpass the update frequency of traditional mapping services by incentivizing everyday drivers to contribute data.

    Impact on Emerging Markets

    In 2026, the most profound impact of DePIN is seen in developing regions. In cities like Nairobi and Manila, decentralized energy grids and community-owned internet networks are providing essential services where centralized infrastructure has failed. By turning idle hardware into income-generating assets, DePIN is fostering a new era of “micro-entrepreneurship” on a global scale.

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    Zondacrypto (formerly BitBay) Faces Estonia FSA Warning

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    Zondacrypto (formerly BitBay) Faces Estonia FSA Warning


    Jessie A Ellis
    May 08, 2026 21:27

    Estonia’s FSA issues an investor warning for Zondacrypto, citing MiCA compliance issues amid ongoing withdrawal crises and investigations.

    Estonia’s Financial Supervision and Resolution Authority (FSA) has issued an investor warning against Zondacrypto, operated by BB Trade Estonia OÜ, for alleged non-compliance with the European Union’s Markets in Crypto-Assets (MiCA) regulations. The regulator flagged the exchange’s failure to provide a white paper for its “TeamPL” token, a key requirement under MiCA Article 9.

    The FSA stated that crypto issuers are obligated to maintain a white paper on their website for as long as the tokens remain publicly traded. Zondacrypto has yet to publicly respond to the warning.

    Withdrawal Crisis and Missing Funds

    The warning comes at a turbulent time for Zondacrypto, which is already under scrutiny over unresolved withdrawal issues. In April, CEO Przemysław Kral revealed that the exchange could not access a cold wallet containing approximately 4,500 Bitcoin (worth $360 million at the time). Kral blamed the issue on the company’s founder and former CEO, Sylwester Suszek, who has been missing since 2022 and allegedly never handed over the private keys.

    Kral has denied insolvency rumors, insisting that Zondacrypto will fulfill all customer obligations. However, these assurances have not quelled concerns among users, particularly as Polish authorities opened an investigation into the exchange last month following multiple complaints about frozen withdrawals.

    CEO’s Silence and Speculation

    Adding to the uncertainty, Kral has gone silent on social media, with his last post dated April 16, 2026. Reports from Polish media suggest Kral may have fled to Israel, where he holds citizenship, amid the ongoing legal probe.

    In prior statements, Kral argued that Poland’s lack of alignment with MiCA regulations pushed the company to operate outside its home country. Despite its Polish origins, Zondacrypto has positioned itself as an international player, but recent events highlight the regulatory and operational risks associated with such a strategy.

    Regulatory Pressure Mounting

    The investor warning from Estonia’s FSA underscores the growing enforcement of MiCA standards across the EU. Smaller firms like Zondacrypto, which have historically operated in regulatory gray areas, are finding it increasingly challenging to navigate the stricter compliance environment.

    For Zondacrypto, the combination of regulatory scrutiny, unresolved wallet access issues, and customer withdrawal problems poses a critical test of its ability to regain user trust and ensure operational transparency. Whether the exchange can address these challenges remains to be seen.

    More developments are expected as the Estonian and Polish investigations progress.

    Image source: Shutterstock


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    Bitcoin Continues Its $80K Battle as US Jobs Data Smash Expectations Despite Iran

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    Bitcoin Continues Its K Battle as US Jobs Data Smash Expectations Despite Iran

    Bitcoin (BTC) struggled with an $80,000 reclaim at Friday’s Wall Street open as strong US jobs data added to headwinds.

    Key points:

    • Bitcoin crisscrosses $80,000 as US jobs data notionally reduces the odds of US interest-rate cuts.
    • US jobs vastly outpace expectations, adding almost twice the anticipated number of jobs in April.
    • Traders avoid giving up on the local uptrend, seeing a “healthy” support retest.

    Bitcoin stays undecided on fate of $80,000

    Data from TradingView showed ongoing BTC price volatility as buyers and sellers sparked gyrations around the key $80,000 mark.

    BTC/USD one-hour chart. Source: Cointelegraph/TradingView

    US nonfarm payrolls revealed that the economy added far more jobs than expected in April, despite ongoing inflation pressure thanks to the Iran war.

    The Bureau of Labor Statistics reported 115,000 jobs — far beyond the expected 65,000.

    “The change in total nonfarm payroll employment for February was revised down by 23,000, from -133,000 to -156,000, and the change for March was revised up by 7,000, from +178,000 to +185,000,” an accompanying news release stated.

    “With these revisions, employment in February and March combined is 16,000 lower than previously reported.”

    US civilian unemployment rate. Source: BLS

    The unemployment rate remained unchanged at 4.3%.

    Bitcoin initially fell on the numbers, as outperformance implied less need for the Federal Reserve to relax financial policy.

    As Cointelegraph reported, the Fed made it clear at its latest meeting on interest rates that conditions were conducive to tightening, and that rate cuts were unlikely.

    The latest data from CME Group’s FedWatch Tool reflected market expectations of a potential rate hike at the Fed’s next meeting on June 17.

    Fed target rate probabilities for June 17 FOMC meeting (screenshot). Source: CME Group

    BTC price sees “healthy bullish backtest”

    Among traders, the mood was one of cautious optimism with acceptance that recent gains may not hold for long.

    Related: Bitcoin Bollinger Bands push key breakout as creator acts on positive signal

    “Retesting the highs from the previous consolidation,” Daan Crypto Trades summarized in his latest X analysis. 

    “Good bounce so far but this is a key level for the bulls to hold.”

    BTC/USDT perpetual contract 12-hour chart. Source: Daan Crypto Trades/X

    Trading account Cryptic Trades saw Bitcoin retesting its bull market support band, an area formed by two daily moving averages.

    “For now, this looks like a healthy bullish backtest before a continuation higher,” it wrote on the day.

    BTC/USD one-day chart. Source: Cryptic Trades/X

    Earlier, Cointelegraph noted signs that a local top could be in for BTC/USD, notably an “overbought” warning on the relative strength index indicator.

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    Kelp DAO Fallout Pushes Solv, DeFi Protocols Toward Chainlink

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    Kelp DAO Fallout Pushes Solv, DeFi Protocols Toward Chainlink

    Decentralized finance protocols are reevaluating their blockchain oracle providers’ security after the fallout from the $293 million Kelp DAO exploit last month. Several protocols have announced migrations to Chainlink infrastructure in recent days, citing security concerns around third-party oracle and bridge providers.

    On Thursday, Bitcoin DeFi platform Solv Protocol announced it would migrate to Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and replace LayerZero bridges, citing an “extensive security review” concluding that CCIP provided the “strongest security assurances.” 

    A day earlier, liquidity protocol Tydro also said it was moving to Chainlink after its previous oracle provider, Chaos Labs, suffered an incident that prompted Tydro to pause markets over concerns about inaccurate price feeds.

    The migrations come after an April 18 exploit in which attackers drained 116,500 Kelp DAO restaked ETH (rsETH) tokens worth between $290 million and $293 million. Following the exploit, Kelp DAO also migrated its rsETH token to Chainlink, moving away from its previous LayerZero-powered bridge after attributing the incident to weaknesses in its cross-chain setup.

    Source: Solv Protocol

    LayerZero, however, said on April 20 that the exploit resulted from a single point of failure in Kelp DAO’s implementation, which relied on a single LayerZero DVN as the only verified path despite prior warnings against that configuration.

    DeFi protocols review oracle security after Kelp exploit

    The Kelp DAO exploit triggered a “wake-up call” for DeFi providers, according to Zach Rynes, strategic initiatives lead at Chainlink Labs.

    Related: Aave liquidates Kelp DAO hacker’s rsETH positions on Ethereum, Arbitrum

    Rynes told Cointelegraph that DeFi teams conducting security reviews are increasingly deciding to replace older oracle and bridge systems with Chainlink infrastructure to strengthen baseline security protections, and multiple other DeFi protocols are discussing potential migrations to Chainlink following the exploit.

    Oracle providers with long operating histories and strong reliability are becoming increasingly important as hacks continue across the sector, Marcin Kazmierczak, co-founder of RedStone, the fourth-largest blockchain oracle provider, told Cointelegraph, adding that RedStone has also kept a “fully reliable track record.”

    Redstone was also contacted by Tydro as an emergency measure after the Chaos Labs oracle attack and provided support to help restore oracle feeds for the protocol.

    Source: Redstone

    Oracle consolidation raises new questions for DeFi

    Following the Kelp DAO exploit, only a smaller group of specialized providers may be able to meet the “demand and reliability requirements” created by growing institutional participation in DeFi, Kazmierczak said.

    “A smaller set of trusted oracles is forming in the market,” he said, adding that as capital concentrates around providers with proven track records, the risk of oracle-related exploits could decline.

    When asked about the risks of multiple DeFi protocols depending on fewer providers, Rynes said Chainlink’s infrastructure was designed to withstand extreme market conditions.

    He pointed to periods including the 2020 Covid market crash, the 2022 FTX collapse and major volatility events in 2025, saying Chainlink continued operating throughout those disruptions.

    Related: Arbitrum vote to release $71M in frozen Kelp exploit ETH set to pass

    Nik Kunkel, founder of Chronicle, the second-largest oracle provider, said that an overreliance on a single infrastructure provider will always present additional risks.

    “There are risks anytime a large portion of an ecosystem depends on a single piece of infrastructure,” Kunkel told Cointelegraph, adding that reducing those risks also requires data infrastructure to remain independently transparent and verifiable.

    Top Oracle providers by market share. Source: DefiLlama.com

    Chainlink remains the largest oracle provider with a 58% market share and more than $32 billion in value secured, according to DefiLlama. Chronicle ranks second with $7.6 billion in total value secured, while RedStone holds fourth place with $3.7 billion, representing a 6.7% market share.

    Magazine: 53 DeFi projects infiltrated, 50M NEO tokens could be ‘given back’: Asia Express

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