The UK government has finally lifted its ban on crypto exchange-traded notes, citing a maturation of the industry and a greater understanding of digital asset products.
In an announcement on Wednesday, the Financial Conduct Authority (FCA) outlined that retail investors can now access crypto ETNs via FCA-approved exchanges based in the UK
A crypto exchange-traded note is a debt product that allows an investor to gain exposure to a cryptocurrency without owning the underlying asset. These types of products are essentially traded similarly to any other security, with underlying crypto held securely by regulated custodians.
“Since we restricted retail access to crypto ETNs, the market has evolved, and products have become more mainstream and better understood. In light of this, we’re providing consumers with more choice, while ensuring there are protections in place,” said David Geale, FCA executive director of payments and digital finance, as part of the announcement.
The crypto ETN ban initially went into effect in January 2021, with the FCA stating that it considered “these products to be ill-suited for retail consumers due to the harm they pose.” It also argued that there was a “lack of legitimate investment need” for these crypto products at the time.
The latest move by the FCA marks a significant shift in tone, as the government has gradually warmed to the crypto space over the past few years. The country is awaiting the rollout of a comprehensive framework following a government leadership change in July.
As part of the announcement, the FCA also said that its ban on “retail access to cryptoasset derivatives will remain in place,” adding that it will continue to keep an eye on “market developments and consider its approach to high-risk investments.”
How crypto ETNs differ from other investment products. Source: BitPanda
Crypto ETNs allowed in retirement funds
Alongside lifting the crypto ETN ban, the UK government also released a policy statement on the tax treatment for these crypto products in specific types of tax-efficient investment accounts.
From Oct. 8, the government will allow crypto ETNs to be held in “registered pension schemes,” and from April 2026 will open up access for Stocks & Shares Individual Savings Accounts, meaning the citizens will have a few tax-incentivized investment options for these products.
“The government remains supportive of the UK’s growing cryptoasset sector and continues to develop a comprehensive regulatory framework that fosters innovation while protecting consumers,” the statement reads.
Market set for growth with crypto ETNs
A recent research report by IG Group predicts the UK crypto market could grow by up to 20% following the relaunch of crypto ETNs.
The report based this prediction on its own research that found that “30% of UK adults would consider investing in crypto via ETNs,” with the main appeal being the “perceived safety and regulatory oversight” offered by these products.
“This represents a significant potential uplift from current levels of crypto ownership — 12%, according to the FCA’s latest study, and 25% according to IG’s new study.”
Bitcoin experienced profit booking on Tuesday, but the shallow pullback suggests that the bulls are not rushing to the exit, as they anticipate the uptrend to continue.
Many altcoins rebounded off their support levels, indicating buying at lower levels.
Bitcoin (BTC) turned down sharply on Tuesday, but the bears could not pull the price below $120,000. That suggests solid demand at lower levels. The bulls have pushed the price above $123,000 and will next attempt to clear the overhead hurdle at $124,474.
Analysts are bullish on BTC’s prospects in October, which has been the second-best performing month on average since 2013, with an average gain of 20.75%, according to CoinGlass data. Economist Timothy Peterson said in a post on X that there was a 50% chance of BTC finishing the month above $140,000.
Although the trend remains up, traders need to be cautious because the failure to rise and sustain above $126,000 could trigger another bout of selling. The next dip may put the $120,000 support at risk of breaking down. If that happens, analysts anticipate support in the range between $118,000 and $114,000.
Could BTC start the next leg of the uptrend, pulling altcoins higher? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin price prediction
BTC rose to a new all-time high of $126,199 on Monday, but the bulls could not sustain the higher levels.
The BTC/USDT pair turned down and fell below the breakout level of $124,474 on Tuesday. The upsloping 20-day exponential moving average (EMA) ($118,110) and the relative strength index (RSI) in the positive territory indicate that the bulls hold an edge.
Buyers will again try to resume the uptrend by pushing the Bitcoin price above $126,199. If they can pull it off, the BTC/USDT pair may climb to $138,154.
Conversely, if the price continues lower and breaks below the 20-day EMA, it suggests that the market has rejected the breakout above $124,474. The pair could then drop to the 50-day simple moving average (SMA) ($114,276).
Ether price prediction
Ether (ETH) closed above the resistance line on Monday, but the bears pulled the price back below the level on Tuesday.
The ETH/USDT pair is attempting to take support at the moving averages, indicating that the bulls are trying to retain control. Buyers will make one more attempt to clear the resistance line and challenge the all-time high at $4,957.
On the contrary, if the price skids below the moving averages, it suggests that the bears are trying to take charge. The Ether price may then slump to the $4,060 support, where the buyers are expected to step in.
BNB price prediction
BNB (BNB) has been in a strong uptrend for the past several days, indicating sustained buying by the bulls.
The bears are trying to halt the uptrend at $1,350, but the shallow pullback suggests the bulls are holding on to their positions as they expect the rally to continue. If buyers propel the price above $1,350, the BNB/USDT pair could surge to $1,394 and then to $1,479.
The bears will have to pull the BNB price below the 61.8% Fibonacci retracement level of $1,217 to start a deeper correction to the 20-day EMA ($1,097). Buyers are expected to defend the 20-day EMA with all their might because a break below it indicates a weakening momentum.
XRP price prediction
Repeated failure of the bulls to sustain XRP (XRP) above the downtrend line in the past few days suggests the bears are aggressively defending the level.
The XRP price turned down and plunged below the moving averages on Tuesday. That signals the XRP/USDT pair could remain inside the bearish descending triangle pattern for a while longer. Sellers will attempt to strengthen their position by pulling the price below the $2.69 support. If they succeed, the pair may start a downward move toward $2.33.
This negative view will be invalidated in the near term if the price turns up and closes above the downtrend line. That could catapult the pair to $3.20 and subsequently to $3.38.
Solana price prediction
Solana (SOL) has been gradually rising inside an ascending channel pattern for several days.
If the price breaks below the 50-day SMA ($216), the SOL/USDT pair could drop to the support line. Buyers are expected to defend the support line, as a break below it may start a downward move to $191 and then to $175.
Contrarily, if the price turns up from the current level and rises above the 20-day EMA ($222), it signals buying on dips. The bulls will then attempt to push the Solana price to the resistance line.
Dogecoin price prediction
Dogecoin (DOGE) turned down from $0.27 on Tuesday but is finding support at the 50-day SMA ($0.24).
The bulls will try to push the Dogecoin price above $0.27 and challenge the stiff overhead resistance at $0.29. If buyers overcome this hurdle, the DOGE/USDT pair could start a new uptrend toward the pattern target of $0.39.
Sellers are likely to have other plans. They will try to pull the price to the uptrend line, which is a critical level for the bulls to defend. The developing ascending triangle pattern will be negated if the bears prevail and tug the price below the uptrend line. That could keep the pair inside the $0.14 to $0.29 range for some more time.
Cardano price prediction
Cardano (ADA) closed above the 50-day SMA ($0.85) on Monday, but the bulls could not sustain the higher levels.
The ADA/USDT pair turned down and fell below the 20-day EMA ($0.83) on Tuesday. That suggests the Cardano price could remain inside the descending triangle pattern for a few more days. Selling could pick up if bears tug the price below the $0.75 support. That opens the doors for a decline to $0.68 and then to $0.60.
Buyers will have to push the price above the resistance line to invalidate the bearish setup. The pair may rally to $0.95 and then to $1.02.
The next support on the downside is at $43. If the price turns up sharply from $43, it suggests demand at lower levels. The HYPE/USDT pair may consolidate between $43 and $52 for a while.
The advantage will tilt in favor of the bulls if they push the Hyperliquid price above $52. The pair could then retest the all-time high at $59.41. On the downside, a break below $43 could sink the pair to $39.68.
Chainlink price prediction
Chainlink (LINK) turned down from the resistance line on Tuesday and fell below the 20-day EMA ($22.31).
The bulls are unlikely to give up easily, and they will again try to drive the Chainlink price above the resistance line. If they manage to do that, it suggests that the corrective phase may be over. The LINK/USDT pair could start an upward move to $25.64 and, after that, to $27.
Alternatively, if the price turns down from the resistance line and breaks below $21.47, it signals that the bears remain in control. The pair could then spend some more time inside the descending channel pattern.
Sui price prediction
Buyers failed to push Sui (SUI) to the downtrend line in the past few days, indicating that the bears are selling on rallies.
The flattish 20-day EMA ($3.48) and the RSI near the midpoint do not give a clear advantage to either the bulls or the bears. If the Sui price skids and maintains below the moving averages, the next stop is likely to be the support line.
Instead, if the price turns up sharply from the current level and breaks above the downtrend line, it signals that the bulls are on a comeback. The SUI/USDT pair could jump to $4 and potentially reach $4.44 later.
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.
Cryptocurrency traders made millions of dollars on small-cap memecoins on the BNB Chain over the past week, signaling a renewed wave of speculative capital fueling the current market cycle.
Among the most profitable investors is trader “0xd0a2,” who turned an initial investment of $3,500 into $7.9 million, generating a 2,260-fold return in three days, according to blockchain intelligence platform Lookonchain.
Trader “hexiecs” turned a $360,000 investment into over $5.5 million by investing in the recently launched “4” memecoin, which went parabolic after an X post from Binance co-founder and former CEO, Changpeng Zhao.
Other speculators also jumped on the token, including trader “brc20niubi,” who turned a $730,000 investment into $5.4 million, printing a 1,200-fold return on investment, according to Lookonchain.
The activity followed a trade earlier in the week when the wallet “0x872” netted nearly $2 million in profits within hours after investing just $3,000 in the 4 token. The trader achieved a 650-fold return after Zhao reshared a post about the token to his 8.9 million X followers on Oct. 1.
The 4 token originated after a phishing attack on the BNB Chain, where the hacker reportedly made only $4,000 in profit before the community turned the event into a meme.
The growing trader activity on the blockchain has garnered attention from industry watchers, including Zhao, who called the phenomenon “BNB meme szn,” something he said he “didn’t expect at all.”
One of the main drivers of the growing investor interest is a recognition of BNB Chain’s potential for digital asset trading, according to Marwan Kawadri, DeFi lead and head of EMEA at BNB Chain.
“BNB Chain has always been strong in DeFi, but right now, it’s becoming the heartbeat of onchain trading,” amid records in active addresses and decentralized exchange (DEX) trading volumes, Kawadri told Cointelegraph, adding:
“What you’re seeing with ‘BNB meme szn’ is the market waking up to the fact that BNB Chain has become the leading ecosystem for trading.”
New cryptocurrency trends may gain traction faster on the blockchain, as the “community is built around trading culture,” said Kawadri.
The industry’s most successful traders, tracked as “smart money” traders on Nansen’s blockchain intelligence platform, have also been prioritizing BNB-native memecoins.
The three largest cryptocurrencies purchased by smart money traders were all BNB native tokens, according to Nansen data, which shows the 24-hour inflow of these tokens.
Leading up to Tuesday, over 100,000 onchain traders had bought into the new BNB-native memecoins, with about 70% in profit at the time, according to blockchain data visualization platform Bubblemaps.
Stablecoins are nearing a $300-billion market cap, but adoption remains limited due to risks around depegging, collateral and trust.
The depegging of stablecoins such as NuBits (2018), TerraUSD (2022) and USDC (2023) has revealed vulnerabilities across both algorithmic and fiat-backed models.
The collapse of TerraUSD wiped out roughly $50 billion in value and exposed the systemic fragility of algorithmic designs.
In 2025, Yala’s Bitcoin-backed YU lost its peg following an exploit, underscoring issues of thin liquidity and cross-chain security.
Stablecoins just crossed a major milestone, with total market capitalization now above $300 billion. As of Oct. 6, 2025, CoinMarketCap reports roughly $312 billion.
Despite rapid growth, stablecoins still haven’t achieved mainstream adoption. One major reason is the recurring instances of these tokens losing their peg to the assets that back them — whether fiat currencies like the US dollar, commodities like gold or even other cryptocurrencies.
This article discusses real examples of stablecoin depegging, why it happens, the risks involved and what issuers can do to prevent it.
Historical overview of stablecoin depeggings
Stablecoin depeggings have repeatedly exposed flaws in how these assets are designed. Early examples, such as the 2018 collapse of NuBits, showed how fragile unbacked algorithmic models can be. Even Tether’s USDt (USDT) briefly fell below $1 in 2018 and again in 2022, driven by market panic and liquidity shortages — events that fueled concerns about its reserves.
One of the biggest collapses came in May 2022, when TerraUSD — an algorithmic stablecoin — unraveled after a wave of redemptions set off a bank-run-like spiral. Its sister token, LUNA, went into hyperinflation, wiping out about $50 billion in market value and sending shockwaves through the broader crypto industry.
Fiat-backed stablecoins have also depegged. USDT briefly dropped to $0.80 in 2018 amid solvency fears, and USDC (USDC) lost its peg in 2023 after Silicon Valley Bank collapsed — showing how even fiat reserves face traditional banking risks. Dai (DAI) and Frax (FRAX) — both partially backed by USDC — also dipped during the same period, deepening concerns about reserve interlinkages across the market.
Together, these episodes highlight liquidity shortfalls, eroding trust, and systemic risks that continue to challenge stablecoins — even as the market nears the $300-billion mark.
Did you know? Most depegs occur when liquidity pools run thin. Large sell-offs drain available liquidity, making recovery harder. Terra’s Curve pool imbalance in 2022 and Yala’s small Ether (ETH) pool in 2025 showed how limited depth can magnify market shocks.
Case study: The TerraUSD collapse
The May 2022 collapse of TerraUSD (UST) was a major blow to the crypto market, triggering a chain reaction across the industry and exposing the risks of algorithmic stablecoins. Unlike traditional fiat-backed versions, UST tried to maintain its $1 peg through an arbitrage mechanism with its sister token, LUNA.
Adoption of TerraUSD was fueled by the Anchor protocol, which offered unsustainable, subsidized yields of nearly 20% to UST depositors. As doubts about this model grew and crypto markets weakened, confidence collapsed, triggering a bank-run-like spiral. Large, sophisticated investors exited first, accelerating UST’s depeg. The first clear signs appeared on May 7, 2022, when two large wallets withdrew roughly 375 million UST from Anchor.
This triggered a massive wave of swaps from UST to LUNA. In just three days, LUNA’s supply jumped from around 1 billion to nearly 6 trillion, while its price crashed from about $80 to almost zero, completely breaking UST’s peg. The crash exposed major flaws in decentralized finance (DeFi), from unrealistic yield models to how smaller investors, often without timely information, ended up taking the biggest hit.
Did you know? Stablecoin depegs tend to spiral when panic spreads online. During UST’s collapse, social media buzz and forum discussions likely fueled a rush of withdrawals. The speed at which confidence vanished showed how quickly fear can spread in crypto, much faster than in traditional finance.
Case study: Yala’s YU stablecoin
In September 2025, Yala’s Bitcoin-backed stablecoin, YU, suffered a depegging event following an attempted attack. According to blockchain company Lookonchain, an attacker exploited the Yala protocol by minting 120 million YU tokens on the Polygon network. The attacker then bridged and sold 7.71 million YU tokens for 7.7 million USDC across the Ethereum and Solana networks.
By Sept. 14, 2025, the attacker had converted the USDC into 1,501 ETH and distributed the funds among multiple wallets. According to Lookonchain, the attacker still held 22.29 million YU tokens on Ethereum and Solana, with an additional 90 million YU remaining on the Polygon network, which had not been bridged.
The Yala team stated that all Bitcoin (BTC) collateral was safe, but YU still failed to regain its peg. They disabled the Convert and Bridge functions and began an investigation with security partners.
The event highlighted a critical vulnerability. Despite a $119-million market cap, YU had extremely thin onchain liquidity, making it susceptible to such attacks. By Sept. 18, 2025, YU had regained its peg on DEXScreener.
Why stablecoins fail to hold their $1 peg
Stablecoins aim to maintain steady prices, but past events show they can lose their $1 peg during stress. Failures arise from design weaknesses, market sentiment, and external pressures that reveal flaws even in robust systems. Key reasons for depegging include:
Liquidity shortages: When trading pools have low funds, large sell orders cause significant price drops. Yala’s small Ether pool and Terra’s Curve swaps demonstrate how limited liquidity fuels instability.
Loss of trust and runs: Panic can spark bank-run scenarios. Once confidence falters, mass withdrawals can push prices downward, and social sentiment or noisy market reactions may accelerate the spiral.
Algorithmic flaws: Mechanisms using mint-burn, like Terra’s UST, fail when redemptions overwhelm controls. Exploits or market shocks can destabilize these fragile designs.
External pressures: Wider crises, such as bank collapses, hacks or economic downturns, can strain pegs across the market, heightening volatility and systemic risks.
Did you know? To prevent future depegs, projects are experimenting with proof-of-reserves, overcollateralization and real-time audits. These innovations mark a shift from algorithmic fantasies to transparent, trust-building mechanisms, though investors know $1 stability is never guaranteed in crypto.
The risks investors can’t ignore
Stablecoins are designed to offer reliability, but when they lose their peg, they can create serious risks for investors and the broader crypto market. Here are some of the key risks investors should be aware of:
Financial losses: Depegs can lead to irreversible value erosion. In the case of stablecoins, the annual risk run is higher than that of conventional banks, increasing the risk of financial losses for investors.
Security flaws: Attacks, like the one on Yala that minted unauthorized tokens, can disperse assets across blockchains, often leaving investors with little chance of recovery.
Regulatory and reputational concerns: The stablecoin market is approaching $300 billion, led by major players like USDT, USDC and USDe. Growing regulatory scrutiny has raised concerns about the financial stability of issuers. It has also highlighted how limited mainstream adoption still is.
Systemic impacts: A single stablecoin failure can trigger widespread market disruptions. For example, Terra’s collapse wiped out billions and destabilized related DeFi systems, showing how interconnected risks can amplify damage across the crypto ecosystem.
Lessons learned from stablecoin collapses
Repeated stablecoin failures have shown both the potential and the fragility of dollar-pegged digital assets. Each collapse exposed how liquidity gaps, weak collateral and overreliance on algorithms can quickly erode trust.
To address these risks, issuers can focus on stronger collateral — using over-collateralized models and high-quality, liquid assets. Transparency is equally vital. Proof-of-reserves, independent audits and clear disclosures on reserves and redemption policies help restore confidence. Backstop funds can also absorb sudden sell-offs and stabilize the peg.
On the technical side, thorough contract audits, multi-signature controls and limited cross-chain exposure reduce security risks. Solid governance and regulatory alignment — under frameworks like Markets in Crypto-Assets (MiCA) regulation or US stablecoin bills — together with insurance coverage, add further protection and strengthen investor trust.
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.
This had been broadly expected given successive all-time highs without serious upward momentum.
As Cointelegraph reported, rapidly increasing open interest (OI) on derivatives markets had added to suspicions that Bitcoin could retrace a chunk of its recent upside.
Exchange Bitcoin futures OI (screenshot). Source: CoinGlass
“Very efficient price action tbh hence the low volatility thus far,” trader Skew commented in an X post Tuesday as the correction took shape.
Skew subsequently noted “predatory” behavior by large-volume traders on exchange order books.
Clear PvP -> Predatory price action on-going here via binance market on $BTC
spoofing on the ask aka above price on spot spoofing on the bid aka below price on perps
How the predatory strategy works? Aim is to temporarily hold or lift price via perps & then push market lower by…
Overnight, however, liquidity began to flow back into the market, with data from CoinGlass showing thickening bid-side and ask-side liquidity at the time of writing.
BTC liquidation heatmap. Source: CoinGlass
Skew suggested that a “consolidation range” may result.
BTC price support puts $114,000 back in focus
Others considered where BTC/USD could put in a reliable local floor, warning that this may be significantly below the current spot price.
“Between $121K–$120K there isn’t much support, which means price can cut through quickly if selling picks up,” trader ZYN reported on X
“But just below, around $117K, nearly 190K BTC were last bought. That’s a heavy cluster of recent buyers.”
Bitcoin cost basis distribution heatmap. Source: ZYN/X
ZYN used the cost basis of recent buyers to predict where demand should shore up the price.
“If we get a pullback into that range, it’s the kind of zone where demand usually shows up strong buyers defending their entries, new capital stepping in. In short: weak cushion at $121K, but a very real floor forming at $117K,” he concluded.
Using its proprietary trading signals, trading resource Material Indicators also flagged $120,000 support, but said that a stronger foundation for a bounce lay at $114,000, near Bitcoin’s 50-day simple moving average (SMA).
BTC/USD one-day chart. Source: Material Indicators/X
For crypto trader, analyst and entrepreneur Michaël van de Poppe, the next buy zone extended down to $118,000.
“Bitcoin made a new all-time high, which is often a reference for people to be taking profits,” he reasoned.
“Slight pullback and we’re approaching my personal area of interest for potential dip buying.”
BTC/USDT one-day chart with trading volume, RSI data. Source: Michaël van de Poppe/X
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.
GitHub announces the deprecation of Claude Sonnet 3.5 across all Copilot experiences by November 6, 2025, urging users to update workflows and integrations.
GitHub has announced the impending deprecation of Claude Sonnet 3.5, which will affect all GitHub Copilot experiences, including Copilot Chat, inline edits, ask and agent modes, and code completions. This change is set to take effect on November 6, 2025, according to The GitHub Blog.
Transition to Newer Models
In place of Claude Sonnet 3.5, GitHub plans to introduce newer and more capable models. This move is aimed at ensuring that users on the Copilot Free plan continue to experience improvements over time. GitHub has advised users to update their workflows and integrations to accommodate the supported models before the deprecation date.
Guidance for Copilot Enterprise Administrators
For Copilot Enterprise users, administrators may need to enable access to alternative models through their model policies within the Copilot settings. Administrators are encouraged to verify the availability of these models by checking their individual Copilot settings and confirming that the policy is enabled for a specific model. Once activated, the model will appear in the Copilot Chat model selector in VS Code and on github.com. Importantly, no action is required to remove the models once they have been deprecated.
Support for Enterprise Customers
GitHub Enterprise customers with questions or concerns are encouraged to contact their account managers for further assistance. Additionally, users can learn more about the available models in Copilot by referring to the documentation provided by GitHub. Feedback and questions can be directed to the GitHub Community discussions, where users can engage with others regarding Copilot-related topics.
Broader Implications
The deprecation of Claude Sonnet 3.5 is part of a broader trend within the tech industry to continuously update and improve AI models, ensuring that users have access to the latest advancements. As AI continues to evolve, platforms like GitHub are increasingly focused on providing users with the most efficient and effective tools available.
Builders: Look for active repositories, steady commits and external validation to confirm real progress.
Usage: Fees and retained revenue matter more than hype — use clean, consistent definitions.
Liquidity: Depth and spread across venues show true tradability, not inflated volumes.
Token design: Check float, fully diluted valuation and unlock cliffs to spot supply overhang.
Security: Audits alone aren’t enough — review who conducted them, when they were done and how upgrades are controlled.
Being early to the table means spotting real progress before the crowd: teams shipping useful code, people actually using the product and designs that won’t collapse at the first unlock or exploit.
There’s plenty to sort through. Developers are shipping across thousands of repositories, while new layer 2s, appchains and protocols launch every week.
This guide offers five simple checks — builders, usage, liquidity, token design and unlocks and security — to help you separate early momentum from a mirage.
1) Builders: Who’s shipping and where
Start with the people and the code. The clearest early sign is a team putting out useful updates in public: multiple active maintainers, recent merges, tests and docs that keep up with new features and recognition in grants or hackathons.
Good places to check include developer reports like Electric Capital for big-picture trends, a project’s GitHub for commit pace and issue activity, hackathon showcases such as ETHGlobal and public grant records like Optimism RetroPGF or Arbitrum.
Steady, consistent progress is better than sudden “big drops,” and builders who win funding or prizes from programs with clear rules and public results stand out. Visible work plus outside validation helps filter out empty projects.
Did you know? Over 18,000 developers contribute each month to open-source Web3 and blockchain projects; Ethereum alone accounts for more than 5,000 active developers monthly.
2) Usage: Are real users doing valuable things?
Once the builders check out, make sure people are actually paying to use the product. Two key metrics matter most: fees (what users spend to access the protocol) and revenue (what the protocol keeps after paying participants like validators or LPs).
Use standard definitions from platforms like Token Terminal so you don’t confuse fees paid to liquidity providers (LPs) or miners with the protocol’s retained take rate. Strong usage shows up as rising fees per user and growing profit alongside steady daily or weekly active wallets — not temporary spikes from incentive programs.
Cross-check metrics with independent sources like Messari or Token Terminal to avoid vanity stats and thin volume. When evaluating total value locked (TVL), ask whether deposits are genuine and active or simply chasing rewards. Favor projects where paid use, retention and take rate rise together, and be cautious of those that lose traction once incentives end.
3) Liquidity: Can you get in and out without moving the market?
Don’t trust trading volume alone. What really matters is order-book depth and consistent spreads (how much money actually sits on the books and how stable it stays during volatility).
Research from firms like Kaiko shows that depth is a stronger measure than raw volume, which can be faked with wash trading.
Look for growing depth across multiple reliable venues and for spreads that stay tight even during peak hours. It’s a red flag if most liquidity is concentrated in a single pool or exchange, or if reported volumes far exceed actual depth — both signal shallow liquidity and a higher risk of slippage.
4) Token design and unlocks: Don’t ignore the supply curve
Many “gems” fail not because the product is bad but because the token design sets them up to fail.
A classic risk is low float paired with a high fully diluted valuation (FDV): Only a small share of tokens circulates, while the price assumes years of growth. When vesting cliffs arrive, new supply can overwhelm demand and drive prices lower.
Always review the unlock schedule first. How much is circulating today? How steep are the cliffs? And will upcoming releases outweigh average daily liquidity?
Research shows how damaging supply overhang can be, especially when insiders hold large allocations. Strong projects publish clear, gradual unlock schedules with defined budgets for the community and liquidity — not vague “ecosystem” pools that can be reallocated without transparency.
5) Security and upgrade path: Audits aren’t the finish line
Security is where many early investors lose money. An audit badge only matters if you know who performed it, what was checked, when it was done and whether the issues were resolved. Review the scope and severity of findings, then examine governance: Can the code be upgraded, and who holds that authority?
Proxies, pause functions and admin keys are standard, but if a single person controls them, the entire protocol could be altered overnight. Ethereum’s own guidance, along with companies like Trail of Bits, emphasizes that audits can reduce risk but never eliminate it.
The strongest signs are multiple recent reviews, upgrades controlled by timelocks and multisigs and transparent reporting of past bugs and fixes. Anything less leaves you exposed to accidents or outright exploits.
A note on airdrops and points: Use momentum and don’t become exit liquidity
Points and airdrops are useful for gauging early momentum, but they don’t guarantee long-term viability. Think of them as an early-user survey: They show where builders and communities are focusing, but the real test comes after the token launches and incentives face real usage.
Recent examples show the pattern. EigenLayer’s Season 1 “stakedrop” had clear rules and a modest initial supply share; it was transparent, but activity still needed to continue after claims opened.
Blast moved from non-transferable points to liquid Blast (BLAST) incentives, shifting attention toward onchain activity and mobile onboarding. Ethena’s campaign sparked a burst of short-term growth — useful for discovery but still requiring a stickiness check once rewards ended.
For any campaign, read the official docs for eligibility, supply share and timing. Then, in the month after claims, track fees, user retention and liquidity depth to see whether activity holds up.
Did you know? In many open-source projects studied historically, a project can be “abandoned” if core developers leave. However, in 41% of those cases, new core developers stepped in and revived it.
Trust in the process
Think of “early” as a process, not a guess. Start with builders and code you can verify, then confirm real usage through clear fee and revenue data so incentives aren’t mistaken for product-market fit. Finally, check liquidity through actual order book depth to ensure trades can be executed without moving the market.
When those signals line up — and token unlocks, upgrade controls and admin powers look solid — you’ve earned the right to keep watching or to take a measured position.
Discipline is what matters most. Risks are still high, and a single incident can wipe out strong fundamentals overnight.
Build a simple gem-scan checklist, note your assumptions, size positions with smart contract and counterparty risk in mind and be ready to walk away often. In the long run, process compounds — fear of missing out (FOMO) never does.
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.
Dubai’s crypto regulator fined 19 companies for operating without licenses, signaling a continued push to strengthen oversight and protect investors.
On Tuesday, Dubai’s Virtual Assets Regulatory Authority (VARA) announced that it had issued financial penalties and cease-and-desist orders against 19 companies found to be operating outside its regulatory perimeter.
VARA said the sanctions were part of its ongoing effort to safeguard the emirate’s fast-growing digital asset ecosystem and limit the risks of unlicensed crypto activities.
“Enforcement is a critical component of maintaining trust and stability in Dubai’s Virtual Asset ecosystem,” said VARA’s Enforcement Division. “These actions reinforce VARA’s mandate: to ensure that only firms meeting the highest standards of compliance and governance are permitted to operate.”
Dubai regulator cracks down on unlicensed companies
The enforcement actions followed a series of investigations into unauthorized operations. According to the regulator, the companies were penalized for offering crypto-related services without approval and for violating VARA’s marketing rules.
In 2024, VARA tightened its rules on crypto marketing, requiring disclaimers to be placed on promotional materials. The regulator also required prior authorization before promoting products and services to citizens and residents.
At the time, VARA CEO Matthew White said this compels virtual asset service providers (VASPs) to “deliver their services responsibly,” adding that it fosters transparency and trust in the market.
All penalized entities were directed to immediately cease their operations and halt any promotion of unlicensed services in or from Dubai. These entities were also fined from 100,000 to 600,000 dirhams ($27,000–$163,000), depending on the seriousness and scope of each violation.
“Unlicensed activity and unauthorised marketing will not be tolerated,” said VARA’s Enforcement Division. “VARA will continue to take proactive measures to uphold transparency, safeguard investors, and preserve market integrity.”
The move follows a similar enforcement action in October 2024, when the regulator fined seven unlicensed crypto entities between $13,600 and $27,200 and issued cease-and-desist orders for breaching its rules.
While the United Arab Emirates is known to be a crypto-friendly jurisdiction, Dubai’s crypto regulator reminded the public that it’s committed to keeping the market regulated and transparent through its licensing framework that aims to “balance innovation with robust safeguards for all stakeholders.”
VARA added that the announcement served as a public reminder to consumers, investors and institutions that engaging with unlicensed crypto operators carries significant legal, financial and reputational risks. The regulator reiterated that only VARA-licensed entities are allowed to offer crypto services in or from Dubai.
The move followed other regulatory developments in the region. On Aug. 7, VARA partnered with the Securities and Commodities Authority (SCA) to unify the country’s approach to crypto regulations.
VARA acknowledged Cointelegraph’s request for comments.
ETH ETFs have opened access, but flows remain cyclical.
SOL’s plumbing is set: CME futures are live, with options slated for Oct. 13 (pending approval).
The SEC’s generic standards now allow faster spot-commodity ETP listings beyond BTC and ETH.
For SOL to outperform ETH, it will need sustained creations, tight hedging, real onchain usage and continued developer momentum.
It’s true that Ether (ETH) already has the head start in the exchange-traded fund (ETF) race: Spot Ether ETFs began trading on July 23, 2024, attracting approximately $107 million in first-day net inflows and opening a mainstream path for investors through brokers and retirement accounts.
However, Solana’s (SOL) market infrastructure is catching up. The Chicago Mercantile Exchange (CME) launched Solana futures on March 17, 2025, with options slated for Oct. 13.
In September 2025, the US Securities and Exchange Commission adopted “generic listing standards” that streamline how exchanges can list spot commodity exchange-traded products (ETPs), potentially widening the gate beyond Bitcoin (BTC) and Ether.
Also, outside the US, SOL already trades in regulated investment wrappers through Europe’s 21Shares and Canada’s 3iQ.
With that access already in place, the question is whether a US SOL ETF can fuel lasting demand that allows Solana to outperform Ether on both price and fundamentals.
Before tackling that, let’s set the context.
What ETH ETFs changed, and what they didn’t
Spot Ether ETFs began trading in the US on July 23, 2024. On the first day, they recorded approximately $1 billion in trading volume and about $107 million in net inflows, opening a mainstream channel for investors such as registered investment advisers (RIAs) and institutions. However, this still trailed the scale of Bitcoin’s ETF debut in January.
Flows since then have been cyclical. Through mid-2025, ETH experienced periods of net creations punctuated by outflows. By late August and mid-September 2025, reports showed renewed strength, with multi-week inflows into Ether products that lifted total crypto assets under management (AUM). In short, ETFs improved access, but they did not eliminate market cycles.
At times in 2025, Ether outperformed many large-cap crypto assets, supported by steady ETF demand and visible institutional and treasury accumulation. This pattern suggests that while ETFs do not alter core network fundamentals, they can influence which asset leads during phases of capital rotation.
One design choice still matters: US ETH ETFs launched without staking, limiting their income potential compared with holding native ETH directly. The SEC is actively reviewing proposals to allow staking, but, as of October 2025, has delayed decisions across multiple issuers. If staking is permitted — even partially — it could shift the trade-offs between ETF holdings and direct ownership.
Did you know? US exchanges publish an indicative net asset value (iNAV) approximately every 15 seconds, allowing traders to see where an ETF should be priced intraday.
Solana today: Usage, growth and risks
In Q2 2025, Solana generated over $271 million in network revenue, marking its third consecutive quarter leading all layer-1 (L1) and layer-2 (L2) chains. In June, data showed Solana matched the combined monthly active addresses of all other major L1s and L2s — strong indicators of usage intensity.
In January 2025, Solana processed $59.2 billion in peer-to-peer (P2P) stablecoin transfers, a sharp rebound from the lows of late 2024. The supply of USDC on Solana stands at approximately $9.35 billion, while the network’s total stablecoin supply more than doubled in early 2025, climbing from $5.2 billion in January to $11.7 billion in February.
Even so, Ethereum still carried the majority of value moved by stablecoins year-to-date — roughly 60% as of mid-2025 — showing Solana’s gains are meaningful but not yet dominant.
Cost and speed remain key draws: Sub-cent fees, 400-millisecond block times and high throughput have made Solana a hub for decentralized exchange (DEX) and perpetual futures activity — and a focal point of 2025’s memecoin boom. That volume supports liquidity but also concentrates flows in speculative segments.
Two structural risks are worth watching.
Reliability: A five-hour outage on Feb. 6, 2024, required a coordinated restart and client patch (v1.17.20).
Regulation: Past US SEC complaints have referenced Solana as an unregistered security — a characterization the Solana Foundation disputes. Outcomes in this area remain highly policy-dependent.
Access and flows: Approval would open SOL to mainstream brokerage and retirement channels used by registered investment advisers (RIAs). That reduces operational friction for allocators and broadens the buyer base beyond crypto-native venues.
Market-making and hedging: Listed derivatives give authorized participants (APs) and market makers the tools to hedge creations and redemptions, as well as to run basis or relative-value trades. These mechanics help keep ETF prices close to their NAV and support day-one liquidity.
Regulatory runway: The SEC’s “generic listing standards” widen the path beyond BTC and ETH if sponsors satisfy the rules.
Ex-US demand signals: Already, Canada’s 3iQ Solana Staking ETF (TSX: SOLQ) and Europe’s 21Shares Solana Staking ETP (SIX: ASOL) show that regulated investment wrappers for Solana can attract investor interest.
Did you know? In Europe, cryptocurrencies cannot be included in Undertakings for Collective Investment in Transferable Securities (UCITS) ETFs, so issuers use ETPs instead. That is why “ETP” appears on SIX and London Stock Exchange (LSE) tickers.
Can SOL actually outperform ETH?
The bull case (six to 12 months post-approval)
A timely US spot SOL ETF with strong early net creations could outpace Ether on total return.
Two key levers:
Broader access: RIAs and brokerages gain exposure under the new generic listing standards.
Improved market mechanics: Tighter spreads and greater capacity as APs hedge via CME Solana futures and listed options.
The base case
Even if a SOL ETF launches strongly, flows may revert to tracking general risk appetite. Ether retains a structural institutional edge — thanks to its longer history, deeper allocator familiarity and established ecosystem. Weekly fund flow fluctuations in crypto reflect how relative performance may be choppy rather than decisively tilted toward SOL.
The bear case
Timelines slipping or eligibility questions under the US SEC framework could dampen expectations. Alternatively, liquidity may soften, and APs could run smaller books despite the availability of derivatives, limiting creations. In that scenario, Solana would underperform Ether, which already benefits from a more mature distribution.
It is also worth noting that some regulators have expressed concerns about reduced case-by-case scrutiny under the generic listing standards, adding policy uncertainty for assets beyond Bitcoin and Ether.
What to keep an eye on
If a US spot SOL ETF is approved, the real story could be what happens next.
The key signals to watch are straightforward. Do creations and redemptions show persistent demand? Does CME open interest and options activity deepen liquidity? Do onchain metrics like active users, fee revenue, stablecoin settlement and developer growth hold up beyond speculative bursts? If those needles move together, the odds of SOL outpacing ETH rise sharply.
A Solana ETF would remove a major access bottleneck and arrive with stronger market infrastructure than past cycles. Yet Ether has already proven it can attract billions through ETFs while anchoring the institutional conversation.
ETH remains the benchmark, and its flows — though cyclical — demonstrate its staying power. Whether Solana truly outperforms will depend less on hype and more on whether ETF inflows translate into sustained onchain adoption.
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.
At a time when Bitcoin (BTC) mining is dominated by large-scale mining farms with advanced, specialized hardware, the odds of a solo miner striking the so-called digital gold are astronomically low. Yet 2025 has delivered a remarkable surprise.
Five solo miners, operating outside massive mining pools, have each successfully mined a block and earned rewards exceeding $350,000 each. While these wins may be anomalies, they highlight the unpredictable yet democratic nature of Bitcoin, where even small-scale participants can occasionally outshine corporate giants.
Bitcoin mining is the process of validating transactions and securing the Bitcoin network by solving complex cryptographic puzzles. Mining is dominated by huge mining farms with specialized hardware, making solo mining, which refers to a lone individual attempting to discover a block, an exceedingly rare feat.
In 2025, the mining difficulty is at an all-time high. For a solo miner with standard hardware, the probability of success is comparable to winning a major lottery. With the Bitcoin network’s total hash rate consistently increasing, the probability of a small-scale miner with computing power of a few terahashes per second (TH/s) successfully mining a block is exceptionally low.
For instance, a miner with a 100-TH/s machine, such as a high-end Antminer S19, has a less than 0.0001% probability of solving a block on any given day. As a result, it could take a solo miner months or even years to earn a single block reward.
Did you know? Bitcoin mining began with Satoshi Nakamoto’s “genesis block” on Jan. 3, 2009. That block was created by mining the first block, which awarded 50 BTC as the mining reward. Every miner since has built on that foundational proof-of-work legacy.
The big solo wins of 2025 in Bitcoin mining
Each solo Bitcoin owner successfully solved a block on their own, earning rewards valued at around $350,000. This feat is nearly unprecedented in Bitcoin’s mining environment.
Block 883,181 (Feb. 10, 2025)
An independent Bitcoin miner successfully mined a block, receiving a reward of 3.125 BTC, valued at over $300,000 at the time. On Feb. 10, 2025, the anonymous miner secured block 883,181, which processed 3,071 transactions. This block yielded a total reward of 3.15 BTC.
Block 903,883 (July 4, 2025)
On July 4, 2025, a solo miner with only 2.3 petahashes per second (PH/s) mined block 903,883 and received 3.173 BTC, valued at approximately $349,028 at the time. The likelihood of such a success was about one in 2,800 per day, or roughly once every eight years for that hash rate.
Block 907,283 (July 26, 2025)
Another independent Bitcoin miner, using the Solo CKPool service, successfully mined a block on July 26, 2025. The miner received the block reward of 3.125 BTC, which was valued at $372,773 at the time. The mined block number 907,283 included 4,038 transactions and generated $3,436 in transaction fees.
Block 910,440 (Aug. 17, 2025)
On Aug. 17, 2025, another solo miner using Solo CKPool successfully mined block 910,440, collected the standard 3.125 BTC and about 0.012 BTC in transaction fees and received about $373,000 in Bitcoin rewards. The block had 4,913 transactions, which totaled $1,455.
Block 913,632 (Sept. 8, 2025)
On Sept. 8, 2025, an individual Bitcoin miner successfully mined block 913,632. The miner’s reward was 3.14 BTC, then valued at $348,111. This total included the standard 3.125 BTC block reward and an additional 0.019 BTC from transaction fees. The block contained 1,956 transactions.
These successes demonstrate how, despite mining being dominated by large-scale operations, individual miners can still overcome the odds and achieve significant rewards. Together, these wins showcase Bitcoin’s unique combination of unpredictability, decentralization and opportunity.
Did you know? Bitcoin block rewards halve roughly every four years. In 2024, the reward dropped to 3.125 BTC per block. Halvings reduce miner income but often precede price rallies, creating anticipation across the crypto market. These events highlight how mining shapes Bitcoin’s monetary policy and scarcity over time.
How solo miners struck it rich in 2025
Individual miners rarely succeed in solving a block. Large mining companies, such as Bit Digital, Riot Blockchain and Marathon Digital, typically validate the majority of Bitcoin blocks due to their immense computational power.
In 2025, solo Bitcoin miners earned block rewards due to a unique blend of network and market factors. High levels of onchain activity resulted in miners receiving not only the standard 3.125-BTC block reward but also substantial additional fees, significantly increasing their earnings.
Moreover, Bitcoin’s price has been consistently around or above $100,000 since the start of 2025, making the rewards highly valuable. What made these earnings stand out was that the solo miners were able to win the rewards with their small-scale equipment.
Typically, solo miners with just a few rigs face extremely low odds of solving a block. However, when they succeeded, they gained the same large, fee-enhanced rewards as large-scale mining operations, turning their modest setups into one-time gains of over $350,000.
The foundational concept of Bitcoin, as outlined in Satoshi Nakamoto’s white paper, has set up a fixed supply of 21 million BTC. Of this total, over 19 million has already been distributed to miners as block rewards.
Did you know? Bitcoin mining consumes significant amounts of electricity, comparable to the annual consumption of some nations. Critics highlight environmental impact, but miners are increasingly shifting to renewable sources such as hydropower, solar and geothermal.
Role of hash rate in Bitcoin mining
Hash rate is a key factor in Bitcoin mining, as it measures the total computing power used to solve the network’s cryptographic puzzles. A higher hash rate strengthens the network’s security, making it harder for malicious actors to tamper with transactions.
For miners, the hash rate determines their probability of successfully mining a block. Large mining pools combine hash rates to improve their chances of consistent rewards, while solo miners with lower hash rates have much smaller odds. The Bitcoin network adjusts its mining difficulty every 2,016 blocks to maintain an average block time of about 10 minutes, regardless of the total computing power.
This adjustment ensures fairness and stability but also increases competition as the global hash rate rises. Overall, the hash rate indicates both the security of the Bitcoin network and the economic feasibility of mining.
According to CoinWarz, on Jan. 1, 2025, the hash rate on the Bitcoin network was 702.8319 exahashes per second (EH/s), which went up to 1,285.6948 EH/s on Sept. 20, 2025. This suggests how the mining difficulty on the Bitcoin network consistently increases.
Tools and platforms that enabled the success of Bitcoin miners
Platforms like Solo CKPool provide the necessary technical framework for independent miners to connect directly to the Bitcoin network. Unlike large mining pools that distribute rewards among numerous participants, these platforms allow a solo miner to receive the entire payout if they successfully solve a block.
This approach supports decentralization while offering stable connections and reliable software support. However, the journey is challenging. Solo miners face significant expenses, including energy costs and the purchase and maintenance of ASIC hardware, all while competing against a global network with immense computational power. The chances of success are very slim, requiring considerable patience, as many miners may never solve a block.
Nevertheless, the potential for substantial rewards, particularly during times of high transaction fees, makes the effort worthwhile for some. These platforms create opportunities for independent miners, enabling remarkable victories against formidable odds.
Solo successes in Bitcoin mining are a reminder of the network’s open and permissionless structure. The vision of Satoshi Nakamoto, the creator of Bitcoin, was of a decentralized network where anyone with computational power could mine and compete for block rewards. These wins suggest that successful Bitcoin mining isn’t the monopoly of mining pools and that even small, independent miners can achieve success.
