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  • Former NYC mayor backed token tumbles on Solana amid liquidity fears

    Former NYC mayor backed token tumbles on Solana amid liquidity fears

    Former NYC mayor-backed NYC token tumbles on Solana amid liquidity fears

    • Some crypto community members accused the project team of removing liquidity, sparking rug pull fears.
    • Rune flagged data suggesting $3.4 million was drained from the token’s liquidity pool.
    • Bubblemaps showed $2.5 million in USDC removed near the peak, with $900,000 not returned after partial additions.

    Former New York City Mayor Eric Adams has launched a Solana-based meme coin that he said is aimed at fighting antisemitism and supporting the next phase of innovation in the city.

    The token, called the New York City token (NYC), was announced in a Jan. 13 post on X and quickly went live for trading on the Solana decentralised exchange Jupiter.

    In the post, Adams shared a link to the token’s official website and said the project was built to fight the spread of antisemitism and anti-Americanism across the US and New York City.

    The NYC token initially saw strong momentum after it began trading.

    It rallied to a high of $0.58 and briefly reached a market cap of $580 million, according to DEXScreener data.

    Liquidity movements trigger rug pull allegations

    As the price fell, accusations surfaced online that the team behind the token may have removed liquidity, adding to fears of a potential rug pull.

    Crypto analyst Rune flagged data indicating that at least $3.4 million had been drained from the token’s liquidity pool.

    Separately, analytics posted by Bubblemaps suggested that a wallet linked to the token’s deployer removed $2.5 million in USDC liquidity when the token was trading near its peak.

    After the price had already plunged by more than 60%, about $1.5 million in USDC was added back.

    Still, roughly $900,000 was not returned, which further fuelled suspicion among some community members and investors.

    The allegations have not been confirmed, but the timing and size of the liquidity movements quickly became a central focus of discussion.

    Team cites TWAP strategy to manage volatility

    In response to the concerns, the NYC token X account released a statement claiming the project is using Time-Weighted Average Price (TWAP) mechanisms to manage price stability.

    The account said funds were being added to the liquidity pool gradually to reduce the risk of further disruption after the initial volatility seen during the launch.

    Despite that explanation, the episode has kept attention on how liquidity is handled for newly launched meme coins, especially when trading activity accelerates rapidly across decentralised markets.

    Website details token split and proposed use cases

    While the token’s official website offers limited detail about the project’s long-term direction, Adams said in a Fox Business interview that proceeds from the NYC token would go toward nonprofits focused on raising awareness about antisemitism and anti-Americanism through educational campaigns.

    Other proposed use cases include funding blockchain and crypto education, along with scholarships for students in underserved communities.

    Adams officially stepped down as mayor on Jan. 1, after being replaced by Zohran Mamdani.

    During his time in office, he was one of the most outspoken political figures in support of cryptocurrency.

    His initiatives included converting his first three paychecks into Bitcoin and Ethereum, creating the Office of Digital Assets and Blockchain Technology, and launching the NYC Blockchain Plan to encourage responsible innovation and attract Web3 businesses.

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  • Risk-on is back, says VanEck, as Bitcoin decouples and short-term signals fade

    Risk-on is back, says VanEck, as Bitcoin decouples and short-term signals fade

    Risk-on is back, says VanEck, as Bitcoin decouples and short-term signals fade

    • VanEck noted that Bitcoin has decoupled from stock and gold markets after the October deleveraging.
    • Justin d’Anethan said Bitcoin’s rise in a low-leverage environment shows excess speculation has eased.
    • Michaël van de Poppe predicted bitcoin could hit $100,000 after a clean move above $92,000.

    Global investment management firm VanEck believes the first three months of 2026 could favour a risk-on environment, as investors regain something markets have lacked for years: clearer direction on key policy forces.

    In a Q1 2026 outlook published on Tuesday, the firm pointed to improving visibility around US fiscal conditions, monetary policy expectations, and major investment themes.

    That set-up is typically supportive for riskier corners of the market, such as AI and tech stocks, as well as crypto.

    However, VanEck said Bitcoin is sending a different message, with short-term signals becoming harder to trust after a break in its usual cycle behaviour.

    VanEck sees clearer policy conditions for early 2026

    VanEck said markets are entering 2026 with “visibility,” framing it as a more stable phase compared to the uncertainty that dominated previous years.

    The firm’s base case is that investors will face fewer shocks linked to fiscal and monetary decisions, creating a backdrop where risk assets can perform more confidently.

    It added that improved clarity around policy direction is part of what makes the first quarter attractive for risk-taking.

    At the same time, VanEck stressed that its views are medium-term in nature, rather than based on short-lived market events.

    Bitcoin cycle break complicates the near-term picture

    Despite expecting supportive conditions for risk assets, VanEck said bitcoin’s typical four-year cycle “broke in 2025,” making it difficult to rely on traditional timing signals.

    The firm said this has contributed to a more cautious stance over the next three to six months.

    VanEck also noted that not everyone inside the company shares the same level of caution, with some executives still taking a more constructive view on bitcoin’s immediate cycle.

    The split highlights how unclear the near-term set-up has become, even as broader macro direction appears easier to read.

    Bitcoin decouples after October deleveraging

    VanEck also flagged that bitcoin has decoupled from stock and gold markets in recent months.

    The move followed a major deleveraging event in October, which changed how bitcoin has traded relative to both equities and traditional safe-haven assets.

    This matters because bitcoin’s correlation with other markets has often shaped how investors position it in a broader portfolio.

    If those relationships weaken, it becomes harder to treat bitcoin as a simple extension of risk sentiment, particularly when leverage conditions shift.

    Analysts debate the next move as BTC retests $92,000

    Crypto investor Will Clemente said the current mix of market and geopolitical conditions is closely aligned with what Bitcoin was built for.

    He pointed to pressure on the Fed chair, rising metals as countries diversify reserves, record highs in stocks and risk assets, and increasing geopolitical risk.

    Meanwhile, crypto analyst Michaël van de Poppe said he expects Bitcoin to reclaim six figures before the end of January.

    He noted there has been no dip below the 21-day moving average, with buyers stepping in to accumulate around these levels.

    He added that a clear move above $92,000 could push BTC to $100,000 within a maximum of 10 days.

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  • Story Protocol’s IP token surges 22%, outpacing top altcoins: check forecast

    Story Protocol’s IP token surges 22%, outpacing top altcoins: check forecast

    Story Price Pumps

    • Story traded at lows of around $2.12 on Monday but has since staged a sharp recovery.
    • IP rose to above $2.65, with trading volume spiking over 400% to $198 million.
    • Buyers may ride bullish sentiment to target $3 or higher.

    IP, the native token of the Story Protocol, has outperformed top altcoins in the past 24 hours.

    At the time of writing, the token’s price had pumped by more than 22% to its highest level since early December 2025.

    Other coins seeing notable gains include Monero, Canton and Aerodrome Finance. Ethereum targets $3,500 as price holds key level.

    Story is a layer-1 blockchain project focused on tokenizing and making intellectual property programmable for creators in the AI era, leading this pack.

    Its gains come amid broader upside moves for privacy-focused altcoins, and the IP price was up amid a more than 400% increase in daily trading volume.

    IP price breaks above $2.50 on mega volume

    As noted, the Story token has experienced a breakout moment.

    But as its price decisively broke above the $2.50 level, buyers did so on a significantly higher 24-hour trading volume.

    With bulls breaching $2.10,  the asset soared to above $2.65. Data showed trading volume exploded by more than 450% to $198 million.

    The surge reflects strong bullish momentum, and IP could extend its upward trajectory toward the $3 mark. Bulls see the level as a psychological barrier and a breakout might allow for new gains.

    From a technical perspective, the token trades above the 50-day Exponential Moving Average (EMA) at $2.31, providing solid support for further advances.

    If broader top cryptocurrencies flip decisively positive, IP could see additional rally potential.

    Story IP Chart
    Story price chart by TradingView

    However, the Relative Strength Index (RSI) on the daily chart stands at 73 and in the overbought zone.

    This suggests a potential retreat as profit-taking emerges. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator shows indecisiveness, with the histogram showing increased weakness.

    Story gains as Monero leads top altcoins higher

    As the chart below shows, IP has posted impressive gains today.

    The fresh bullish wave to highs of $2.65, with the token pumping more than 22% in 24 hours, aligned with notable upticks for several other cryptocurrencies.

    Monero (XMR) led privacy coins higher as XMR price hovered near $600 in a strong rally.

    As the coin gathered pace, coins that had dumped in recent sessions, including Zcash (ZEC), also rose. The token is looking to ignore developer turmoil to recover and was up 5% to above $410.

    Monero and Zcash remain top privacy coins, but with regulatory scrutiny, such as Dubai’s ban, putting the tokens into the spotlight.

     

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  • H100 Group signs preliminary deal to acquire Swiss Bitcoin firm Future Holdings

    H100 Group signs preliminary deal to acquire Swiss Bitcoin firm Future Holdings

    Bitcoin treasury firm Future Holdings AG agrees to H100 Group acquisition as BTC Tops $92K

    • H100 Group signs preliminary deal to acquire Future Holdings AG.
    • Bitcoin tops $92K as mining difficulty dips to 146.4 trillion.
    • Adam Back supports the expansion of corporate BTC treasury operations.

    Sweden-listed H100 Group has signed a preliminary agreement to acquire Swiss Bitcoin treasury company Future Holdings AG.

    The deal, backed by Bitcoin pioneer Adam Back, aims to expand H100 Group’s presence into Switzerland’s institutional crypto market.

    Future Holdings AG, co-founded and funded by Adam Back, specialises in managing Bitcoin treasuries for corporate clients.

    The transaction is currently a non-binding letter of intent, with formal documentation and regulatory approvals needed before closing.

    H100 Group Bitcoin treasury strategy

    H100 Group has been actively growing its Bitcoin holdings through convertible loan agreements and treasury acquisitions.

    By acquiring Future Holdings AG, H100 Group gains access to established Swiss infrastructure for managing institutional Bitcoin assets.

    The proposed purchase consideration is around CHF 600,000, which includes Future Holdings’ cash on hand and payment in newly issued H100 shares.

    This acquisition aligns with H100 Group’s strategy to strengthen its position as a leading corporate Bitcoin treasury company.

    Adam Back’s involvement adds credibility and highlights the growing trend of institutional Bitcoin adoption across Europe.

    Future Holdings AG previously raised significant capital, roughly CHF 28 million, to develop its Bitcoin treasury solutions.

    The company’s expertise in regulatory compliance and treasury management makes it a valuable partner for H100 Group.

    This move reflects a broader pattern of Bitcoin treasury consolidation in public markets, with firms seeking to combine expertise and infrastructure.

    Bitcoin price breaks $92 as Bitcoin mining difficulty drops

    Notably, the Future Holdings AG acquisition deal comes amid notable Bitcoin market developments.

    To start with, Bitcoin has surpassed $92,000.

    In addition, the mining difficulty has adjusted downward to approximately 146.4 trillion, providing temporary relief for miners after months of rising difficulty.

    The decline in mining difficulty signals a slight decrease in total hash power, which can affect block times and miner profitability.

    For H100 Group, these market conditions highlight the growing importance of strategic BTC treasury management.

    Corporate treasury companies like H100 and Future Holdings AG are positioning themselves to benefit from both price growth and institutional adoption trends.

    Adam Back has been instrumental in supporting these initiatives, contributing capital and expertise to strengthen Bitcoin treasury operations.

    Bitcoin price outlook

    Market analysis shows that Bitcoin’s price momentum remains strong as it surpasses $92K.

    However, short-term volatility is expected, with potential retracements near support levels around $88,000 to $90,000.

    Bitcoin price analysis
    Bitcoin price analysis | Source: TradingView

    Continued institutional adoption, such as the H100–Future Holdings deal, could provide upward pressure on BTC.

    Mining adjustments, macroeconomic conditions, and liquidity events may also influence price movements over the coming weeks.

    Also, with H100 Group expanding its Swiss operations, the alignment of corporate treasury strategies and rising BTC prices may create further market interest.

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  • Tether freezes $182M in USDT, highlighting centralized control in stablecoins

    Tether freezes $182M in USDT, highlighting centralized control in stablecoins

    Tether tightens compliance grip as major USDT freeze hits Tron

    • The action was detected by Whale Alert and ranks among the largest single-day USDT freezes.
    • Tether has frozen over $3 billion in assets from more than 7,000 addresses since 2023.
    • Stablecoins now account for the majority of illicit crypto activity tracked by Chainalysis.

    Tether, the issuer of the world’s largest stablecoin, froze more than $180 million worth of USDT within 24 hours, underscoring the growing role of centralized control and law-enforcement coordination in the stablecoin market.

    The event stands out not only for its size but also for what it reveals about issuer-level control in the crypto economy.

    As regulators scrutinise digital dollars more closely, the mechanics behind this freeze offer insight into how compliance now shapes on-chain liquidity.

    Large-scale freeze on Tron

    On Jan. 11, Tether froze roughly $182 million worth of USDT held across five Tron-based wallets in a single day.

    The action was flagged by on-chain tracker Whale Alert, which showed individual wallet balances ranging from about $12 million to nearly $50 million.

    The timing and concentration of the freezes marked it as one of the largest single-day USDT enforcement events recorded on the Tron network.

    The wallets were not drained or moved.

    Instead, the tokens were locked at the contract level, making them unusable while remaining visible on-chain.

    This approach is consistent with how fiat-backed stablecoins are restricted when issuers respond to external requests.

    Enforcement-linked coordination

    While Tether did not publish a detailed explanation, the freezes appear linked to cooperation with US authorities, including the Department of Justice and the Federal Bureau of Investigation.

    Historically, similar actions have followed investigations tied to scams, hacking incidents, sanctions breaches, or other forms of illegal crypto usage.

    Tether maintains administrative control through special keys embedded in the USDT smart contracts it issues.

    These keys allow the company to halt or freeze tokens at the issuer level.

    Such functionality is central to how stablecoin operators comply with anti-money-laundering rules and legal enforcement demands, particularly when funds are suspected of being linked to criminal activity.

    Scale of past USDT freezes

    Data from analytics firm AMLBot places the Jan. 11 action in a broader context.

    Between 2023 and 2025, Tether froze more than $3 billion in assets spread across over 7,000 addresses.

    That cumulative figure far exceeds comparable actions by other stablecoin issuers, underlining USDT’s dominant role in enforcement-led interventions.

    Tron has become one of the largest settlement layers for USDT, with more than $80 billion in circulation on the network.

    Its low fees and fast settlement times have driven adoption, particularly in emerging markets and high-frequency trading environments.

    At the same time, this scale makes Tron-based USDT a focal point for monitoring illicit flows.

    Centralisation and market implications

    The episode has renewed debate around centralised control in stablecoins.

    Unlike decentralised assets such as Bitcoin, USDT can be paused or frozen by its issuer when legal pressure is applied.

    This structural difference has practical consequences for users who rely on stablecoins as cash equivalents.

    According to Chainalysis, stablecoins accounted for around 84 % of illicit crypto activity by the end of 2025.

    The data reflects how dollar-pegged tokens have become a primary medium in fraud cases and sanctions-related transfers.

    As enforcement actions grow in size and frequency, issuer-controlled stablecoins continue to sit at the intersection of regulatory compliance and decentralised finance.

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  • Bitcoin extends consolidation amid ETF outflows, echoing pre‑2025 surge patterns

    Bitcoin extends consolidation amid ETF outflows, echoing pre‑2025 surge patterns

    Bitcoin echoes pre-2025 rally patterns

    • Bitcoin currently trades in a tight range near $90K amid a 3-day streak of ETF outflows.
    • The current market consolidation mirrors pre‑2025 surge patterns with low volatility.
    • The key levels to watch include the support at $90K, the immediate resistance at $95K, and $100k in case of a breakout.

    Bitcoin (BTC) price has remained stuck in a narrow trading range around $90,000.

    The cryptocurrency is showing signs of consolidation after a volatile start to 2026.

    Bitcoin ETF flows and macroeconomic uncertainties are playing a key role in the price movement.

    Bitcoin ETF outflows weigh on BTC price

    In early January, Bitcoin spot ETFs initially attracted strong inflows, signalling renewed institutional interest.

    However, a three-day streak of outflows totalling over $1 billion has nearly erased those gains.

    This shift indicates waning conviction among institutional investors.

    The outflows have contributed to Bitcoin’s inability to break above $95,000.

    Traders are cautious as geopolitical tensions between the USA, Latin American countries and Iran, and broader risk-off sentiment, weigh on the market.

    ETF redemption patterns are currently a major driver of near-term price behaviour.

    These flows may represent tactical rotation rather than long-term liquidation.

    Investors could be reallocating capital to other assets while maintaining exposure to Bitcoin.

    Nonetheless, the short-term pressure has kept BTC trading in a tight range between roughly $88,000 and $95,000.

    Echoes of pre‑2025 rally patterns

    Bitcoin’s current sideways trading resembles the consolidation phase before its 2025 rally.

    In the months leading up to the surge, BTC spent nearly 50 days in a narrow range, a phenomenon called time-based capitulation.

    This period allowed weak hands to exit and set the stage for a powerful upward move.

    The current market consolidation mirrors that pattern, suggesting the market may be quietly building momentum.

    Bitcoin price analysis
    Current consolidation mirrors pre-2025 rally consolidation | Source: TradingView

    Unlike traditional capitulation, this phase does not involve panic selling or sharp drops.

    Instead, low volatility and a steady range characterise this pre-rally accumulation period.

    Some analysts see this as a signal that Bitcoin could be preparing for a significant breakout.

    The ETF outflows and geopolitical pressures may simply be temporary obstacles.

    If history repeats, a sustained push above resistance could trigger renewed bullish momentum.

    The key Bitcoin price levels to watch

    One of the key price levels to watch out for is the key support that remains near $90,000.

    A break below this support could open the door to further declines toward $86,000–$88,000.

    However, a sustained move above $95,000 would signal renewed institutional buying and potential acceleration.

    If Bitcoin overcomes $100,000, the market could revisit mid‑2025 highs and even target $110,000 in the medium term.

    Moving forward, traders and investors should monitor both technical levels and macro catalysts to gauge the timing and scale of the next potential surge.

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  • Sky token slides over 5% as altcoin weakness deepens

    Sky token slides over 5% as altcoin weakness deepens

    Bitcoin Cash Bull Vs Bear

    • Sky token price dropped over 5% as altcoins struggled.
    • The token could fall further amid broader market weakness.
    • Anchorage Digital has reportedly transferred over 69 million SKY tokens.

    Sky (SKY), the governance asset of the decentralized Sky Protocol (formerly MakerDAO), has dropped by over 5% in the past 24 hours as major cryptocurrencies face downward pressure.

    After renewed uptrends in early 2026, Bitcoin has retreated to support at $90,000, Ethereum to $3,000 and XRP to around $2.15.

    Increased trading volume as the token faces significant downward pressure suggests there could be further downside movement.

    SKY price falls amid large token transfer

    SKY’s price declining nearly 6% to trade near $0.056 is a drop that aligns with a broader altcoin market weakness observed on Friday.

    Sky Price Chart
    Sky price chart by TradingView

    The token’s struggles come as profit-taking adds to risk-off sentiment.

    For Sky, sellers have been on top since prices fell from highs of $0.096 in July 2025.

    Bears even tested the support levels around $0.041 in November.

    Recent gains saw buyers top $0.068, but things have looked tough on the upside across the cryptocurrency market, and SKY is following a similar trajectory.

    On Jan. 9, the price decline happened as onchain data showed that Anchorage Digital, a prominent institutional crypto custodian and federally chartered bank, had moved over 69 million SKY tokens.

    This significant on-chain transfer is likely a repositioning for custody services, institutional allocation, or other strategic purposes.

    However, such large transfers often trigger heightened selling activity.

    What next for SKY price?

    Technical indicators on the daily chart point to continued downside risk for SKY in the near term.

    The Relative Strength Index (RSI) is hovering in the mid-40s, suggesting weakening momentum and leaving room for a further slide toward oversold conditions.

    At the same time, the Moving Average Convergence Divergence (MACD) remains bearish, with the MACD line below the signal line and a negative histogram.

    Despite the recent decline of roughly 9% over the past week, some investors remain constructive on the token’s longer-term outlook.

    Supportive factors cited include ongoing token buybacks funded by protocol revenue and signs of growing real-world usage.

    Data also shows that annualised SKY repurchases have risen sharply alongside a jump in revenue, placing the project among the top-ranked protocols by buyback activity.

    While Hyperliquid leads the group, Sky ranks second, ahead of names such as Pump.fun, TRON and Solana.

    The positive fundamentals may provide a boost that could see bulls counter macro-driven headwinds.

    If bulls take control, bullish price targets include $0.080 and $0.10. Conversely, bears might eye $0.050 and $0.037 lows.

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  • Babylon pushes Bitcoin into on-chain finance as a16z crypto backs expansion

    Babylon pushes Bitcoin into on-chain finance as a16z crypto backs expansion

    Babylon pushes Bitcoin into on-chain finance as a16z crypto backs expansion

    • Trustless BTCVaults aim to use Bitcoin as on-chain collateral without wrappers or custodians.
    • Babylon’s staking previously reached over $2 billion in total value locked.
    • An integration with Aave V4 is expected to bring native Bitcoin collateral to DeFi by April 2026.

    Babylon is moving to widen Bitcoin’s role in on-chain finance, following fresh backing from venture capital firm a16z Crypto.

    The investment supports Babylon’s transition from a single-purpose staking platform toward a broader financial infrastructure built directly on Bitcoin.

    Rather than focusing only on yield, the project is positioning BTC as usable collateral across lending and other decentralised applications, without relying on wrapped tokens or custodial bridges.

    The shift reflects a growing push across crypto markets to unlock capital efficiency from Bitcoin’s large but largely inactive supply, while keeping security anchored to the Bitcoin network itself.

    a16z crypto investment

    On Dec. 7, a16z Crypto disclosed a $15 million investment in Babylon, made through the purchase of Babylon’s native BABY tokens.

    Babylon was originally developed as a Bitcoin staking protocol that allows BTC holders to earn yield without transferring assets off the Bitcoin network.

    The firm said the investment reflects confidence in Babylon’s approach to extending Bitcoin’s functionality beyond staking, while preserving Bitcoin’s core security assumptions.

    a16z positioned the project as a potential neutral alternative to wrapped BTC models, which currently dominate decentralised finance but introduce reliance on issuers, custodians, or multi-signature structures.

    Trustless BTCVaults explained

    Babylon is now expanding into lending infrastructure through what it calls Trustless BTCVaults.

    These vaults are designed to allow Bitcoin to act as verifiable on-chain collateral without bridges, wrappers, or custodians.

    The architecture relies on cryptographic tools such as witness encryption and garbled circuits to enable conditional execution tied directly to Bitcoin transactions.

    The aim is to let Bitcoin interact with decentralised applications while remaining native to its own network.

    According to a16z, this design could reduce counterparty and settlement risks that arise when BTC is represented on other blockchains via synthetic tokens.

    Babylon’s approach targets the large pool of Bitcoin capital that currently sits idle, estimated at more than $1.4 trillion, by making it usable in lending, credit, and other capital-efficient use cases.

    Founders and technical roots

    Babylon was founded by David Tse and Fisher Yu.

    Tse is a professor at Stanford University and is known for his academic work in information theory and blockchain research.

    a16z highlighted Tse’s long-standing role in mentoring crypto founders and researchers as part of its rationale for backing the project.

    The firm framed the investment as support for technically driven infrastructure that could reshape how Bitcoin integrates with decentralised finance, rather than incremental improvements to existing staking models.

    From staking to DeFi integration

    Babylon’s staking protocol has previously drawn significant demand.

    Earlier staking caps recorded more than $2 billion in total value locked, with participation from institutional custodians such as BitGo and exchange partners including Kraken.

    More recently, development has shifted toward BTCVaults and native Bitcoin lending.

    In early December 2025, Babylon and Aave announced that native Bitcoin would be used as collateral on Aave V4.

    The proposed integration includes Aave’s first Bitcoin-backed “Spoke”, enabling borrowing and lending against BTC without converting it into ERC-20 tokens.

    The launch is expected around April 2026.

    If successful, it could open new decentralised finance markets built directly on Bitcoin’s base layer, with potential extensions into perpetual futures, stablecoins, and other financial primitives.

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  • Starknet faces fresh mainnet disruption

    Starknet faces fresh mainnet disruption

    Starknet faces fresh mainnet disruption as Ethereum layer 2 enters 2026

    • Starknet uses zero-knowledge rollups to batch transactions off chain and settle on Ethereum.
    • The project is also pursuing Bitcoin DeFi integration through its BTCFi initiative.
    • The STRK token price remained stable despite the disruption.

    Starknet, an Ethereum layer-2 network built on zero-knowledge rollups, entered 2026 dealing with an unexpected mainnet disruption that temporarily interrupted network activity.

    The incident surfaced at a moment when layer-2 infrastructure is increasingly critical to Ethereum’s scaling roadmap, with developers and users relying on these networks for faster execution and lower costs.

    As decentralised applications expand across finance, gaming, and experimental Bitcoin-linked use cases, even short periods of downtime draw attention to operational resilience.

    The latest disruption placed Starknet under that spotlight, testing its response processes while the broader ecosystem monitored network stability.

    The Starknet team acknowledged the issue through an X post, confirming that the network was experiencing downtime and that engineers were actively investigating the cause.

    The update stressed that work was underway to restore full functionality as quickly as possible, although no technical explanation was shared at the time.

    When the message was published, the mainnet had already been unavailable for just over two hours, marking a notable interruption for developers and users relying on live applications.

    Network interruption

    The disruption did not come with immediate details on whether transaction sequencing, proof generation, or another component was affected.

    Starknet’s architecture relies on batching large volumes of transactions off chain before submitting cryptographic proofs to Ethereum.

    Any failure along that pipeline can temporarily halt activity, even if user funds remain secure on the base layer.

    During the outage window, on-chain data indicated stalled execution rather than loss of state, aligning with typical safety mechanisms used by ZK-rollup networks.

    How Starknet works

    Starknet operates as a ZK-rollup based layer-2, processing transactions away from Ethereum’s main chain and periodically settling them with validity proofs.

    This design aims to deliver higher throughput and lower fees while inheriting Ethereum’s security guarantees.

    The network has positioned itself as an infrastructure for complex smart contracts, decentralised finance protocols, and gaming applications that require fast settlement.

    Its reliance on cryptographic proofs means performance gains are tied closely to the reliability of off-chain components.

    Bitcoin DeFi focus

    Beyond Ethereum-native use cases, Starknet has been promoting a Bitcoin DeFi, or BTCFi, arc.

    The initiative frames the network as a bridge for Bitcoin-related financial applications seeking exposure to Ethereum’s programmability.

    By enabling Bitcoin-linked assets or logic to interact with decentralised applications, Starknet has aimed to broaden its relevance beyond a single ecosystem.

    The timing of the disruption, however, highlights how operational stability remains central as these cross-ecosystem ambitions develop.

    Market response

    Despite the mainnet downtime, the STRK token price held steady at $0.08898 at the time of writing, suggesting limited immediate market reaction.

    Starknet price
    Source: CoinMarketCap

    Short-term resilience in the token contrasted with the technical interruption, indicating that traders may be viewing the issue as operational rather than structural.

    As engineers continued work on restoring full functionality, attention remained focused on updates from the team and the duration of the disruption rather than price volatility.

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  • Here’s why Virtuals Protocol (VIRTUAL) price is pumping

    Here’s why Virtuals Protocol (VIRTUAL) price is pumping

    Virtuals Protocol (VIRTUAL) price is pumping

    • January 15 AI agent marketplace launch is driving renewed Virtuals Protocol (VIRTUAL) demand.
    • Rising users, revenue, and partnerships support Virtuals Protocol’s growth.
    • Bullish technicals and long positioning are accelerating VIRTUAL price momentum.

    The Virtuals Protocol price is surging as focus shifts to AI crypto ecosystems.

    Today, VIRTUAL crypto has surged by 22.3%, emerging as one of the strongest daily gainers, outperforming much of the broader crypto market.

    At the time of writing, Virtuals Protocol (VIRTUAL) was trading around the $1.00–$1.05 range.

    This price action is not random, and several aligned catalysts are driving momentum higher.

    January 15 catalyst puts Virtuals Protocol back in focus

    The most immediate reason the Virtuals Protocol price is pumping is anticipation around January 15.

    Virtuals Protocol is preparing to launch its first decentralised AI agent marketplace.

    This launch introduces the concept of autonomous, revenue-generating AI agents that can be deployed, traded, and monetised on-chain.

    For many traders, this represents a tangible use case rather than a purely speculative AI crypto narrative.

    As excitement builds around this milestone, capital has flowed back into VIRTUAL crypto ahead of the event.

    AI crypto momentum lifts VIRTUAL price

    Recently, the broader AI crypto sector has also regained momentum.

    Renewed interest in AI infrastructure has followed high-profile developments across the industry.

    This sector-wide rotation has benefited projects with clear execution and real-world applications.

    Virtuals Protocol sits directly at the intersection of AI, agents, and on-chain automation.

    As a result, the VIRTUAL price has captured spillover demand from traders seeking exposure to AI-driven protocols.

    OpenMind AGI partnership strengthens the narrative

    Another major factor supporting the Virtuals Protocol price is its partnership with OpenMind AGI.

    This collaboration connects Virtuals AI agents with physical robotics.

    Recent demos showed robots running on OM1 OS autonomously executing voice-commanded DeFi tasks.

    These tasks included cross-chain USDC transfers targeting yield opportunities.

    This “embodied AI” angle adds depth and credibility to the VIRTUAL crypto investment thesis.

    On-chain usage is rising, not just hype

    Beyond headlines, Virtuals Protocol is showing improvement in on-chain activity.

    Active decentralised exchange users have rebounded to roughly 3,700.

    These levels were last seen during the previous mid-December rally.

    More importantly, daily protocol revenue has climbed back to around $26,000.

    This suggests usage is translating into real economic activity rather than short-lived speculation.

    Ecosystem updates reinforce execution strength

    Recent ecosystem updates from Virtuals Protocol have further boosted confidence.

    The project updated its website to clearly outline its 2026 roadmap and four core pillars.

    A full recap of 2025, shared on X by Virtuals Protocol, highlighted consistent shipping across the ecosystem.

    Multiple agent platforms, infrastructure tools, and analytics dashboards reached new milestones.

    These updates reinforce the view that Virtuals Protocol is actively building, not stalling.

    Elliott Wave perspective highlights key timing

    Some analysts note that the recent rally appears to be a three-wave move.

    Price reacted cleanly from the Fibonacci support associated with a potential wave 2 low.

    The next one to two weeks are considered critical.

    Holding a higher low on the next pullback would favour a five-wave advance.

    Such a move would help confirm a larger trend reversal for Virtuals Protocol.

    Short-term outlook for Virtuals Protocol price

    The short-term outlook for the Virtuals Protocol price remains constructive as long as the price holds above $1.00.

    Sustained upside will depend on follow-through after the January 15 launch and continued growth in real usage across the Virtuals ecosystem.

    However, while the current bullish momentum is being driven by a mix of catalysts, usage growth, and bullish positioning, the market appears to be stretched after a rapid move higher.

    This could result in a pullback as the market cools from the multi-day rally, with the next target being at $0.9408 if $1 gives way.

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