A lag in Tether’s wallet blacklisting process allowed over $78 million in illicit funds to be moved before enforcement actions took effect, according to a new report from blockchain compliance company AMLBot.

Tether’s address blacklisting becomes effective only after a considerable delay from when the process is initiated on Ethereum and Tron, according the report published May 15.

“This delay originates from Tether’s multisignature contract setup on both Tron and Ethereum, transforming what should be an immediate compliance action into a window of opportunity for illicit actors,“ the report reads.

Tether’s blacklisting procedure is a multi-step process with a first transaction effectively warning of the upcoming blacklisting. First, a Tether administrator multisignature transaction submits a pending call to “addBlackList” on the USDT-TRC20 contract.

This results in a public “submission” of the target address as a blacklist candidate. This is followed by a second multisignature transaction confirming the submission, resulting in an “AddedBlackList” emission, making the blacklisting effective.

Related: Tether, Tron and TRM Labs jointly froze $126M USDT in 2024

A warning on incoming blacklisting

In one example shared with Cointelegraph, an onchain transaction submitting a Tron address as a blacklist candidate took place at 11:10:12 UTC. The second transaction that actually enforced the action did not occur until 11:54:51 UTC on the same day, a 44-minute delay.

In practice, this delay can be treated by owners of USDt about to be blacklisted as a notice to move their assets to avoid them being frozen. The report stated:

“This delay between a freeze request and its on-chain execution creates a critical attack window, allowing malicious actors to front-run enforcement and move or launder funds before the freeze takes effect.“Example of USDt blacklisting transactions. Source: AMLBot

The report says that “for blockchain-savvy attackers, these delays are golden.” By tracking Tether’s calls in real time, a fraudster can be instantly alerted that their address is being targeted. When asked by Cointelegraph whether the delay is a technical limitation or just a delay in the actions of a multisignature wallet key holder, AMLBot researchers said that they cannot determine it without knowledge of Tether’s internal procedures.

Tether had not responded to Cointelegraph’s request for comment at time publication.

Related: Tether stablecoin issuer and Tron launch financial crime unit

Not just theoretical

AMLBot said its data shows that over $28.5 million in USDT was withdrawn during the delay between the two transactions on the Ethereum blockchain. This amount of freeze avoidance occurred between Nov. 28, 2017, and May 12, 2025. The average amount moved during the delay exceeded $365,000.

Similarly, $49.6 million was reportedly withdrawn during freeze delay windows on the Tron blockchain, resulting in a total on Ethereum and Tron of $78.1 million. Exploiting this delay on Tron is not particularly rare, according to AMLBot:

“170 out of 3,480 wallets (4.88%) on Tron blockchain exploited the lag before getting blacklisted. Each of these wallets made 2–3 transfers during the delay, withdrawing: Average: $291,970.“

Tether has previously promoted its ability to freeze assets as a compliance feature. In 2024, Tether, Tron, and analytics firm TRM Labs cooperated to freeze over $126 million in USDT linked to illicit activity.

Still, the AMLBot report raises questions about the effectiveness and speed of those enforcement actions.

Magazine: Chinese Tether laundromat, Bhutan enjoys recent Bitcoin boost: Asia Express

Stablecoin issuer Tether minted another 1 billion USDt tokens on Tron, pushing the network’s authorized USDT supply to surpass Ethereum’s.

On May 15, blockchain data showed that Tether’s treasury minted $1 billion of its dollar-pegged stablecoin, USDt (USDT), into the Tron network. 

As of May 14, Tether’s stablecoin transparency page shows that Tron’s authorized USDT totals $73.7 billion, while Ethereum has $74.5 billion in authorized USDT tokens. If the newly minted tokens are added to the number of authorized USDT assets, Tron’s supply surpasses Ethereum’s. 

In terms of circulating supply, Tron also has the lead with $73.6 billion USDT on the network, while Ethereum only has $71.8 billion. 

Source: PeckShieldAlertTether’s USDT mints replenish the company’s token inventory

Tether CEO Paolo Ardoino previously said on X that some of the company’s blockchain-based USDT mints are used to replenish their USDT inventory on blockchain networks. This means the tokens will be used for the next batch of issuance requests and chain swaps. 

In traditional business settings, inventory replenishment requires stock orders to meet demands. Similarly, Tether may mint USDT to maintain a sufficient supply and hold on to the assets until they are issued officially. This ensures that the firm’s liquidity management is smooth. 

This means that the authorized USDT supply on a network indicates the stablecoin issuer anticipates future issuance demand of the stablecoin on a blockchain. 

Related: Altcoins’ roaring returns and falling USDT stablecoin dominance suggest ‘altseason’ is here

Ethereum and Tron battle for USDT supply dominance

Tron led USDT circulation between July 2022 and November 2024. CryptoQuant data showed that an $18 billion USDT mint on Ethereum pushed the network ahead in 2025. Tron’s USDT supply quickly caught up, with the latest mint pushing it past Ethereum again. 

According to Tether’s transparency page, Solana has the third-biggest supply of USDT in the market, with $2.3 billion authorized on the network. Avalanche has $1.8 billion in authorized USDT, making it the fourth-largest. While Avalanche has over $1 billion in authorized USDT, the network has a net circulation of only $752 million in tokens. 

The Open Network, Aptos, Near, Celo and Cosmos have smaller authorized and circulating USDT supplies. 

CoinGecko data shows that Tether’s total circulation is at a record high of $150 billion, a 9.4% increase over its supply at the start of 2025. This gives the stablecoin issuer 61% of all the USD stablecoins in the market. 

Circle, its closest competitor, has $60.4 billion in stablecoins, giving it a market share of 24.6%, according to CoinGecko. 

Magazine: Danger signs for Bitcoin as retail abandons it to institutions: Sky Wee

Stablecoin issuer Tether minted another 1 billion USDt tokens on Tron, pushing the network’s authorized USDT supply to surpass Ethereum’s.

On May 15, blockchain data showed that Tether’s treasury minted $1 billion of its dollar-pegged stablecoin, USDt (USDT), into the Tron network. 

As of May 14, Tether’s stablecoin transparency page shows that Tron’s authorized USDT totals $73.7 billion, while Ethereum has $74.5 billion in authorized USDT tokens. If the newly minted tokens are added to the number of authorized USDT assets, Tron’s supply would surpass Ethereum’s USDT supply. 

In terms of circulating supply, Tron also has the lead with $73.6 billion USDT on the network, while Ethereum only has $71.8 billion. 

Source: PeckShieldAlertTether’s USDT mints replenish the company’s token inventory

Tether CEO Paolo Ardoino previously said on X that some of the company’s blockchain-based USDT mints are used to replenish their USDT inventory on blockchain networks. This means the tokens will be used for the next batch of issuance requests and chain swaps. 

In traditional business settings, inventory replenishment requires stock orders to meet demands. Similarly, Tether may mint USDT to maintain a sufficient supply and hold on to the assets until they are issued officially. This ensures that the firm’s liquidity management is smooth. 

This means that authorized USDT supply on a network means that the stablecoin issuer anticipates future issuance demand of the stablecoin on a blockchain. 

Related: Altcoins’ roaring returns and falling USDT stablecoin dominance suggest ‘altseason’ is here

Ethereum and Tron battle for USDT supply dominance

Tron led USDT circulation between July 2022 and November 2024. However, CryptoQuant data showed that an $18 billion USDT mint on Ethereum pushed the network ahead in 2025. However, Tron’s USDT supply quickly caught up, with the latest mint putting it on top of Ethereum again. 

According to Tether’s transparency page, Solana has the third-most supply of USDT in the market, with $2.3 billion authorized on the network. Avalanche has $1.8 billion in authorized USDT, making it the fourth-largest network in authorized USDT supply. While Avalanche has over $1 billion in authorized USDT, the network only has a net circulation of $752 million in tokens. 

Meanwhile, The Open Network, Aptos, Near, Celo and Cosmos have smaller authorized and circulating USDT supplies. 

CoinGecko data shows that Tether’s total circulation is at a record high of $150 million, a 9.4% increase compared to its supply at the start of 2025. This gives the stablecoin issuer 61% of all the USD stablecoins in the market. 

Circle, its closest competitor, has $60.4 billion in stablecoins, giving it a market share of 24.6%, according to CoinGecko. 

Magazine: Danger signs for Bitcoin as retail abandons it to institutions: Sky Wee

As more and more businesses are impacted by tariff volatility, some executives, like Ridhima Kahn, vice president of business development at Dapper Labs, are viewing the assault on the cost of physical goods as another use case for digital markets powered by blockchain to shine.

“I’m seeing a lot of brands rethinking where revenue and fan engagement come from,” Kahn said during an exclusive interview with Cointelegraph. “A lot of franchises, like the ones we work with — NBA, NFL, Disney — have already had years of success with digital collection, and we’re seeing a lot of brands express interest in digital collectibles as a way to engage with fan bases at a time when physical costs are riskier and unknown.”

Propelling brands to take a deeper look at digital merch is the desire to better understand fandom. Flow now has tradable highlights like a “LeBron Dunk” or a “Steph Curry 3-Pointer” that live inside the NBA app and has commemorative NFTs tied to NFL game highlights in NFL All Day.

But with Super Bowl ticket stubs and other digital mementos powered by blockchain, digital goods are proving they can unlock deeper in real life (IRL) fan experiences, courtside or on the field.

“When you look at the amount of time folks are spending online or in digital environments, it’s only increasing,” Kahn said. “That’s really motivating brands to identify where their fans are spending time and where they can reach them where they’re at. It’s also a great way to engage a more global fan base simultaneously, versus in a more limiting, geo-targeted way, which caters more toward the global fan bases that want to engage with these brands.”

Digital as a go-to-market strategy

Because fan bases have become more globalized, the online experience just happens to offer a faster, more accessible environment for digital goods, particularly collectibles, versus the current marketplace for physical goods that’s being hampered by enigmatic tariffs.

Related: Are Donald Trump’s tariffs a legal house of cards?

“Average NFT sales are up 7% quarter-over-quarter, with NFL All Day and NBA Top Shot delivering $2.5 million and $5.6 million, respectively,” Kahn said. “We’re also seeing total value locked (TVL) at an all-time high of $44.4 million on Flow, led by protocols like KittyPunch and other markets that offer next-gen investing and trading opportunities — a trend that’s signaling a broadening use case for blockchain and crypto beyond just NFTs.”

Helping broaden the blockchain use case is the recently enhanced onramping and offramping technology that’s permeated throughout the industry, enabling a smoother user experience for those getting started in crypto and the world of digital commodities than what was available three years earlier.

Per Kahn:

A lot of blockchain companies are realizing the number of users they can have is capped if they don’t enhance the user experience. We’re seeing the enhanced user experience as a core driver of adoption, and from a regulatory standpoint, the positive moment for blockchain is also really exciting.NBA Top Shot sales have dropped significantly since 2022, but the start of the 2024-2025 season reignited interest. Source: FlowLess fear, more utility 

As more defined blockchain regulation is established, companies that might have initially been skeptical of blockchain are now taking it more seriously because regulators are taking it more seriously, helping boost confidence in the tech, especially among well-known brands.

“IP-backed collections are winning,” Kahn said. “Upon Flow’s recent integration with OpenSea, NBA Top Shot was ranked among OpenSea’s top-five trending collections for four consecutive weeks. We go deep into specific fan bases to understand user behavior, and we A/B test our experiences, meaning the products we ultimately put out to market for fans are very well-vetted to ensure they’re actually what fans want.”

Kahn and Dapper Labs CEO Roham Gharegozlou took a group of VIP collectors during the NBA’s in-season tournament to dinner and openly solicited their opinions on what they wanted to see more of on the platform. It’s the kind of swift, efficient, real-life research and development (R&D) that can more easily impact the end product, because the end product is digital.

Related: 4chan rises from the dead: How the imageboard moves crypto markets

“We take those insights back to our product team, and we embed those insights into our product to ensure we’re creating the best fan experience, agnostic of the technology we’re using to get there,” Kahn said. “It’s about what the fans want, and we leverage blockchain technology to deliver the fan experiences people might not be able to get elsewhere.”

Elsewhere being the physical goods market.

“The technology in our products really fades into the background, and what’s left is a collectible that feels meaningful, shareable and valuable,” Kahn said. “Digital collectibles unlock layers of engagement that physical goods cannot: They can be personalized, connected to real-world access, or used to reward loyalty for years and years to come. They’re also remixable, lightweight and global from day one.”

But Khan doesn’t believe the physical goods market is going to go by the wayside anytime soon.

I don’t think brands are turning their backs on merchandise. It’s more about expanding the playbook and looking to one of the few revenue streams immune to the volatility of physical goods as a way to engage with fans further.

Outside of the internet, sports and media fans are limited to where they are physically when it comes to purchasing a physical good and where they can take that physical good. But Kahn believes the next evolution of fandom is mobile.

“We love the concept of being able to take your most prized possessions with you on your phone, wherever you are,” Kahn said. “Being limited to trading in a physical environment isn’t nearly as fun as being able to trade wherever you are with people all across the world.”

Moving forward, Kahn believes brands will continue to expand their playbooks by engaging more with fans in digital spaces.

“Consumers are also going to be more willing to adopt new ways to engage with brands in digital spaces if the value proposition is there,” Kahn said. “If we’re able to continue to offer utility to fans for what they do in a digital space — and what they do in a digital space benefits them in a physical world — that’s going to be the recipe for success.”

Magazine: Crypto ‘more taboo than OnlyFans,’ says Violetta Zironi, who sold song for 1 BTC

As more and more businesses are impacted by tariff volatility, some executives, like Ridhima Kahn, vice president of business development at Dapper Labs, are viewing the assault on the cost of physical goods as another use case for digital markets powered by blockchain to shine.

“I’m seeing a lot of brands rethinking where revenue and fan engagement come from,” Kahn said during an exclusive interview with Cointelegraph. “A lot of franchises, like the ones we work with — NBA, NFL, Disney — have already had years of success with digital collection, and we’re seeing a lot of brands express interest in digital collectibles as a way to engage with fan bases at a time when physical costs are riskier and unknown.”

Propelling brands to take a deeper look at digital merch is the desire to better understand fandom. Flow now has tradable highlights like a “LeBron Dunk” or a “Steph Curry 3-Pointer” that live inside the NBA app and has commemorative NFTs tied to NFL game highlights in NFL All Day.

But with Super Bowl ticket stubs and other digital mementos powered by blockchain, digital goods are proving they can unlock deeper in real life (IRL) fan experiences, courtside or on the field.

“When you look at the amount of time folks are spending online or in digital environments, it’s only increasing,” Kahn said. “That’s really motivating brands to identify where their fans are spending time and where they can reach them where they’re at. It’s also a great way to engage a more global fan base simultaneously, versus in a more limiting, geo-targeted way, which caters more toward the global fan bases that want to engage with these brands.”

Digital as a go-to-market strategy

Because fan bases have become more globalized, the online experience just happens to offer a faster, more accessible environment for digital goods, particularly collectibles, versus the current marketplace for physical goods that’s being hampered by enigmatic tariffs.

Related: Are Donald Trump’s tariffs a legal house of cards?

“Average NFT sales are up 7% quarter-over-quarter, with NFL All Day and NBA Top Shot delivering $2.5 million and $5.6 million, respectively,” Kahn said. “We’re also seeing total value locked (TVL) at an all-time high of $44.4 million on Flow, led by protocols like KittyPunch and other markets that offer next-gen investing and trading opportunities — a trend that’s signaling a broadening use case for blockchain and crypto beyond just NFTs.”

Helping broaden the blockchain use case is the recently enhanced onramping and offramping technology that’s permeated throughout the industry, enabling a smoother user experience for those getting started in crypto and the world of digital commodities than what was available three years earlier.

Per Kahn:

A lot of blockchain companies are realizing the number of users they can have is capped if they don’t enhance the user experience. We’re seeing the enhanced user experience as a core driver of adoption, and from a regulatory standpoint, the positive moment for blockchain is also really exciting.NBA Top Shot sales have dropped significantly since 2022, but the start of the 2024-2025 season reignited interest. Source: FlowLess fear, more utility 

As more defined blockchain regulation is established, companies that might have initially been skeptical of blockchain are now taking it more seriously because regulators are taking it more seriously, helping boost confidence in the tech, especially among well-known brands.

“IP-backed collections are winning,” Kahn said. “Upon Flow’s recent integration with OpenSea, NBA Top Shot was ranked among OpenSea’s top-five trending collections for four consecutive weeks. We go deep into specific fan bases to understand user behavior, and we A/B test our experiences, meaning the products we ultimately put out to market for fans are very well-vetted to ensure they’re actually what fans want.”

Kahn and Dapper Labs CEO Roham Gharegozlou took a group of VIP collectors during the NBA’s in-season tournament to dinner and openly solicited their opinions on what they wanted to see more of on the platform. It’s the kind of swift, efficient, real-life research and development (R&D) that can more easily impact the end product, because the end product is digital.

Related: 4chan rises from the dead: How the imageboard moves crypto markets

“We take those insights back to our product team, and we embed those insights into our product to ensure we’re creating the best fan experience, agnostic of the technology we’re using to get there,” Kahn said. “It’s about what the fans want, and we leverage blockchain technology to deliver the fan experiences people might not be able to get elsewhere.”

Elsewhere being the physical goods market.

“The technology in our products really fades into the background, and what’s left is a collectible that feels meaningful, shareable and valuable,” Kahn said. “Digital collectibles unlock layers of engagement that physical goods cannot: They can be personalized, connected to real-world access, or used to reward loyalty for years and years to come. They’re also remixable, lightweight and global from day one.”

But Khan doesn’t believe the physical goods market is going to go by the wayside anytime soon.

I don’t think brands are turning their backs on merchandise. It’s more about expanding the playbook and looking to one of the few revenue streams immune to the volatility of physical goods as a way to engage with fans further.

Outside of the internet, sports and media fans are limited to where they are physically when it comes to purchasing a physical good and where they can take that physical good. But Kahn believes the next evolution of fandom is mobile.

“We love the concept of being able to take your most prized possessions with you on your phone, wherever you are,” Kahn said. “Being limited to trading in a physical environment isn’t nearly as fun as being able to trade wherever you are with people all across the world.”

Moving forward, Kahn believes brands will continue to expand their playbooks by engaging more with fans in digital spaces.

“Consumers are also going to be more willing to adopt new ways to engage with brands in digital spaces if the value proposition is there,” Kahn said. “If we’re able to continue to offer utility to fans for what they do in a digital space — and what they do in a digital space benefits them in a physical world — that’s going to be the recipe for success.”

Magazine: Crypto ‘more taboo than OnlyFans,’ says Violetta Zironi, who sold song for 1 BTC

As more and more businesses are impacted by tariff volatility, some executives, like Ridhima Kahn, vice president of business development at Dapper Labs, are viewing the assault on the cost of physical goods as another use case for digital markets powered by blockchain to shine.

“I’m seeing a lot of brands rethinking where revenue and fan engagement come from,” Kahn said during an exclusive interview with Cointelegraph. “A lot of franchises, like the ones we work with — NBA, NFL, Disney — have already had years of success with digital collection, and we’re seeing a lot of brands express interest in digital collectibles as a way to engage with fan bases at a time when physical costs are riskier and unknown.”

Propelling brands to take a deeper look at digital merch is the desire to better understand fandom. Flow now has tradable highlights like a “LeBron Dunk” or a “Steph Curry 3-Pointer” that live inside the NBA app and has commemorative NFTs tied to NFL game highlights in NFL All Day.

But with Super Bowl ticket stubs and other digital mementos powered by blockchain, digital goods are proving they can unlock deeper in real life (IRL) fan experiences, courtside or on the field.

“When you look at the amount of time folks are spending online or in digital environments, it’s only increasing,” Kahn said. “That’s really motivating brands to identify where their fans are spending time and where they can reach them where they’re at. It’s also a great way to engage a more global fan base simultaneously, versus in a more limiting, geo-targeted way, which caters more toward the global fan bases that want to engage with these brands.”

Digital as a go-to-market strategy

Because fan bases have become more globalized, the online experience just happens to offer a faster, more accessible environment for digital goods, particularly collectibles, versus the current marketplace for physical goods that’s being hampered by enigmatic tariffs.

Related: Are Donald Trump’s tariffs a legal house of cards?

“Average NFT sales are up 7% quarter-over-quarter, with NFL All Day and NBA Top Shot delivering $2.5 million and $5.6 million, respectively,” Kahn said. “We’re also seeing total value locked (TVL) at an all-time high of $44.4 million on Flow, led by protocols like KittyPunch and other markets that offer next-gen investing and trading opportunities — a trend that’s signaling a broadening use case for blockchain and crypto beyond just NFTs.”

Helping broaden the blockchain use case is the recently enhanced onramping and offramping technology that’s permeated throughout the industry, enabling a smoother user experience for those getting started in crypto and the world of digital commodities than what was available three years earlier.

Per Kahn:

A lot of blockchain companies are realizing the number of users they can have is capped if they don’t enhance the user experience. We’re seeing the enhanced user experience as a core driver of adoption, and from a regulatory standpoint, the positive moment for blockchain is also really exciting.NBA Top Shot sales have dropped significantly since 2022, but the start of the 2024-2025 season reignited interest. Source: FlowLess fear, more utility 

As more defined blockchain regulation is established, companies that might have initially been skeptical of blockchain are now taking it more seriously because regulators are taking it more seriously, helping boost confidence in the tech, especially among well-known brands.

“IP-backed collections are winning,” Kahn said. “Upon Flow’s recent integration with OpenSea, NBA Top Shot was ranked among OpenSea’s top-five trending collections for four consecutive weeks. We go deep into specific fan bases to understand user behavior, and we A/B test our experiences, meaning the products we ultimately put out to market for fans are very well-vetted to ensure they’re actually what fans want.”

Kahn and Dapper Labs CEO Roham Gharegozlou took a group of VIP collectors during the NBA’s in-season tournament to dinner and openly solicited their opinions on what they wanted to see more of on the platform. It’s the kind of swift, efficient, real-life research and development (R&D) that can more easily impact the end product, because the end product is digital.

Related: 4chan rises from the dead: How the imageboard moves crypto markets

“We take those insights back to our product team, and we embed those insights into our product to ensure we’re creating the best fan experience, agnostic of the technology we’re using to get there,” Kahn said. “It’s about what the fans want, and we leverage blockchain technology to deliver the fan experiences people might not be able to get elsewhere.”

Elsewhere being the physical goods market.

“The technology in our products really fades into the background, and what’s left is a collectible that feels meaningful, shareable and valuable,” Kahn said. “Digital collectibles unlock layers of engagement that physical goods cannot: They can be personalized, connected to real-world access, or used to reward loyalty for years and years to come. They’re also remixable, lightweight and global from day one.”

But Khan doesn’t believe the physical goods market is going to go by the wayside anytime soon.

I don’t think brands are turning their backs on merchandise. It’s more about expanding the playbook and looking to one of the few revenue streams immune to the volatility of physical goods as a way to engage with fans further.

Outside of the internet, sports and media fans are limited to where they are physically when it comes to purchasing a physical good and where they can take that physical good. But Kahn believes the next evolution of fandom is mobile.

“We love the concept of being able to take your most prized possessions with you on your phone, wherever you are,” Kahn said. “Being limited to trading in a physical environment isn’t nearly as fun as being able to trade wherever you are with people all across the world.”

Moving forward, Kahn believes brands will continue to expand their playbooks by engaging more with fans in digital spaces.

“Consumers are also going to be more willing to adopt new ways to engage with brands in digital spaces if the value proposition is there,” Kahn said. “If we’re able to continue to offer utility to fans for what they do in a digital space — and what they do in a digital space benefits them in a physical world — that’s going to be the recipe for success.”

Magazine: Crypto ‘more taboo than OnlyFans,’ says Violetta Zironi, who sold song for 1 BTC

Bitcoin’s (BTC) next evolution isn’t just about price. It’s about potential. 

On this week’s episode of The Clear Crypto Podcast, hosts Nathan Jeffay and Gareth Jenkinson sit down with Isabel Foxen Duke, general partner at Unbroken Chain and longtime Bitcoin advocate, to unpack what she calls “Bitcoin Season 2.”

Bitcoin beyond money

“Bitcoin Season 2 is really about seeing what we can do with Bitcoin outside of just being money,” said Duke.

“What are the broad range of financial use cases for [Bitcoin] other than just being money by itself?”

New developments like ordinals, runes, and decentralized financial (DeFi) tools are pushing Bitcoin beyond its traditional identity as a digital store of value.

One key innovation under discussion is trustless lending — allowing users to borrow against their Bitcoin without involving third-party intermediaries. “We don’t have the ability to lend against our Bitcoin in a trustless way without third-party intermediaries,” Duke said.

“I would argue that is the second most important and second most used use case in the real world other than making payments.”Lending on Bitcoin

One emerging solution involves Discreet Log Contracts (DLCs), which let users maintain control of their Bitcoin while locking it as collateral. Smart contract logic enforces repayment, not a central authority. “That’s proven by math rather than trust,” Duke said.

Related: Bitcoin looks ‘ridiculous’ as bulls attempt $2T market cap flip — Analyst

Duke said she is equally excited about trustless bridging, which could allow Bitcoin to interact with external computation platforms without compromising its decentralized ethos. 

“If you could use Bitcoin not just as money but as a base asset that can trustlessly plug into any financial system, that would be… the end of the road for this asset.”

Looking ahead, Jenkinson highlighted how Bitcoin-native DeFi could unlock real-world financial access for people excluded from traditional banking. “A few little changes to some lines of code might just unlock [permissionless finance] for all of us,” he said. “And that’s the kind of future I’m hopeful about.”

To hear the full conversation on The Clear Crypto Podcast,  listen to the full episode on Cointelegraph’s Podcasts page, Apple Podcasts or Spotify. And don’t forget to check out Cointelegraph’s full lineup of other shows! 

Magazine: ZK-proofs are bringing smart contracts to Bitcoin — BitcoinOS and Starknet

Bitcoin’s (BTC) next evolution isn’t just about price. It’s about potential. 

On this week’s episode of The Clear Crypto Podcast, hosts Nathan Jeffay and Gareth Jenkinson sit down with Isabel Foxen Duke, general partner at Unbroken Chain and longtime Bitcoin advocate, to unpack what she calls “Bitcoin Season 2.”

Bitcoin beyond money

“Bitcoin Season 2 is really about seeing what we can do with Bitcoin outside of just being money,” said Duke.

“What are the broad range of financial use cases for [Bitcoin] other than just being money by itself?”

New developments like ordinals, runes, and decentralized financial (DeFi) tools are pushing Bitcoin beyond its traditional identity as a digital store of value.

One key innovation under discussion is trustless lending — allowing users to borrow against their Bitcoin without involving third-party intermediaries. “We don’t have the ability to lend against our Bitcoin in a trustless way without third-party intermediaries,” Duke said.

“I would argue that is the second most important and second most used use case in the real world other than making payments.”Lending on Bitcoin

One emerging solution involves Discreet Log Contracts (DLCs), which let users maintain control of their Bitcoin while locking it as collateral. Smart contract logic enforces repayment, not a central authority. “That’s proven by math rather than trust,” Duke said.

Related: Bitcoin looks ‘ridiculous’ as bulls attempt $2T market cap flip — Analyst

Duke said she is equally excited about trustless bridging, which could allow Bitcoin to interact with external computation platforms without compromising its decentralized ethos. 

“If you could use Bitcoin not just as money but as a base asset that can trustlessly plug into any financial system, that would be… the end of the road for this asset.”

Looking ahead, Jenkinson highlighted how Bitcoin-native DeFi could unlock real-world financial access for people excluded from traditional banking. “A few little changes to some lines of code might just unlock [permissionless finance] for all of us,” he said. “And that’s the kind of future I’m hopeful about.”

To hear the full conversation on The Clear Crypto Podcast,  listen to the full episode on Cointelegraph’s Podcasts page, Apple Podcasts or Spotify. And don’t forget to check out Cointelegraph’s full lineup of other shows! 

Magazine: ZK-proofs are bringing smart contracts to Bitcoin — BitcoinOS and Starknet

Key takeaways:

Bitcoin’s price is retracing, but strong ETF inflows, high network activity and whale accumulation suggest BTC is on track to $140,000.

Spot Bitcoin ETFs saw $2.9 billion in net inflows in two weeks, mirroring past rallies.

Declining exchange balances and a rising transaction volume Z-score suggest increasing overall demand.

Bitcoin (BTC) price was down 1.4% over the last 24 hours. It traded 6% below its all-time high of $109,000, reached on Jan. 20. Nevertheless, several fundamental, onchain and technical metrics suggest that Bitcoin’s upside is not over.

Spot Bitcoin ETF inflows mirror past BTC rallies

Bitcoin’s latest recovery was accompanied by strong investor appetite for spot Bitcoin exchange-traded funds (ETFs), which recorded $2.9 billion in net inflows over the last two weeks.

The chart below shows that after the launch of the US-based spot Bitcoin ETFs in January 2024, these investment products saw net inflows of about $8.5 billion between Feb. 13, 2024, and March 13, 2024, peaking at a record single-day inflow of $1.045 billion on March 12, 2024.

Spot Bitcoin ETF flows. Source: Glassnode 

Similarly, between Nov. 6, 2024, and Dec. 16, 2024, cumulative daily inflows hit $5.7 billion, aligning with Bitcoin’s 60% rally from $67,000 to $108,000 over the same period. 

If ETF inflows continue, Bitcoin is likely to resume its uptrend toward new all-time highs. 

Bitcoin market volatility index: risk-on

Increased inflows into spot Bitcoin ETFs signal high risk-on sentiment, as evidenced by a drop in the CBOE Volatility Index (VIX), which measures 30-day market volatility expectations.

Bitcoin network economist Timothy Peterson highlighted that the VIX index has dropped substantially to 18 from 55 over the past 25 trading days.

A VIX score below 18 implied a “risk-on” environment, favoring assets like Bitcoin. 

The analyst said:

“This will be a ‘risk on’ environment for the foreseeable future.”CBOE Volatility Index. Source: Timothy Peterson

Peterson’s model, which has a 95% tracking accuracy, predicted a $135,000 target within the next 100 days if the VIX remains low.

Strong Bitcoin accumulation continues

Reinforcing the risk-on sentiment are Bitcoin whales, who have been increasing their holdings even as the price rallied. Glassnode data shows the Bitcoin Accumulation Trend Score (ATS) at 1 (see chart below), which signifies intense accumulation by large investors

According to Glassnode, the spike in trend score indicates a transition from distribution to accumulation across almost all cohorts. This shift mirrors a similar accumulation pattern observed in October 2024, which preceded Bitcoin’s rise from $67,000 to $108,000, spurred by US President Donald Trump’s election victory.

Bitcoin accumulation trend score. Source: Glassnode

Additional data from Santiment reveals that addresses holding between 10 BTC and 10,000 BTC have accumulated 83,105 more BTC in the past 30 days.

In a May 13 post on the X social platform, Santiment said,

“With the aggressive accumulation from these large wallets, it may be a matter of time until Bitcoin’s coveted $110K all-time high level is breached, particularly after the U.S. and China tariff pause.”Bitcoin 10-10,000 BTC chart holdings. Source: Santiment

Overall, this is a positive sign as continued accumulation signals bullish sentiment among this cohort of investors.

Related: Bitcoin looks ‘ridiculous’ as bulls attempt $2T market cap flip — Analyst

Declining Bitcoin balance on exchanges

BTC balance on exchanges reached a six-year low of 2.44 million BTC on May 15. According to the chart below, more than 110,000 BTC have been moved off exchanges over the last 30 days. 

BTC reserve on exchanges. Source: CryptoQuant

Decreasing BTC balances on exchanges means investors could be withdrawing their tokens into self-custody wallets, indicating a lack of intention to sell in anticipation of a future price increase.

Increasing network activity

Bitcoin’s potential to rise is supported by increased network activity, as highlighted by crypto investor Ted Boydston in a May 15 post on X. 

The Bitcoin transaction volume Z-score measures the difference between the current transaction volume and the average. It is often used to gauge network activity and market interest.

The chart below shows the metric has risen sharply from the negative zone and is approaching 1. A rising transaction volume Z-score, especially when it approaches or exceeds 1, is historically associated with Bitcoin price rallies.

“This is a good sign for Bitcoin price acceleration,” remarked Boydston, adding:

“Bitcoin should be full bull once the Z-score breaches 1.”Source: Ted BoydstonBTC rounded bottom pattern targets $140K

From a technical perspective, Bitcoin’s price has formed a rounded bottom chart pattern on the daily chart (see below). Bulls are now focused on pushing the price above the neckline of the governing chart pattern at $106,660.

A daily candlestick close above this level would confirm a bullish breakout from the rounded bottom formation, ushering BTC into price discovery with the technical target set at $140,000, or a 37% increase from the current level.

BTC/USD daily chart. Source: TradingView

The relative strength index, or RSI, is at 70, and a bullish cross from the SMAs suggests that the market conditions still favor the upside, which can top out at even higher than $140,000.

As Cointelegraph reported, BTC price had broken out of a bull flag in the weekly timeframe, projecting a rally to $150,000.

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.

A Bahrain-based, listed catering company with a $24.2 million market cap has adopted a Bitcoin treasury strategy in partnership with investment firm 10X Capital.

According to a May 15 announcement, AlAbraaj Restaurants Group partnered with 10X Capital to adopt a Bitcoin (BTC) treasury strategy similar to top corporate BTC holder Strategy (previously known as MicroStrategy). The firm also aims to explore Sharia-compliant access to Bitcoin for the Islamic world.

“Our initiative to become a Bitcoin treasury company reflects our forward-looking approach and our commitment to enhancing shareholder value,” said Abdullah Isa, head of AlAbraaj’s Bitcoin Treasury Committee.

Isa added that the company believes “Bitcoin will play a central role in the future of finance.” He cited Strategy’s legacy as an inspiration:

“We look forward to building the ‘MicroStrategy of the Middle East’ with their support.”

Related: Strive to become Bitcoin treasury company

A photo shared by the company on X shows a meeting between a company representative and Strategy chairman Michael Saylor.

Source: AlAbraaj Restaurants GroupCompany makes initial Bitcoin purchase

AlAbraaj Restaurants Group made an initial investment of 5 BTC and announced the intention to keep accumulating more. The decision is reportedly a response to the evolving financial landscape and growing institutional interest.

The company plans to allocate a significant portion of its corporate treasury to Bitcoin, making it its primary reserve asset. AlAbraaj said it prides itself on being profitable, with $12.5 million of earnings before interest, taxes, depreciation and amortization reported in 2024.

The company also said it hopes to strengthen its portfolio and expand into the finance industry. As part of this initiative, it plans to develop its own Sharia-compliant financial instruments to tap the Islamic market.

Related: Blockchain is the best fintech to ensure Sharia ethics — Web3 exec

Backed by 10X Capital

The firm’s partnership with 10X Capital eases its introduction into the Bitcoin market and digital asset treasury management. The same company advised Nakamoto in its recent $710 million raise.

On May 12, healthcare services provider KindlyMD merged with Bitcoin-native holding company Nakamoto Holdings to form a BTC treasury also named Nakamoto. David Bailey, a crypto adviser to US President Donald Trump, founded the latter company.

AlAbraaj Restaurants Group plans to rely on 10X Capital to help it raise more capital to acquire additional Bitcoin, increasing the BTC-per-share ratio for investors. 10X Capital CEO Hans Thomas highlighted that the deal provides potential Bitcoin exposure to the entire Gulf Cooperation Council:

“The GCC has a combined GDP of over $2.2 trillion — larger than Canada, Russia, Italy, Brazil, Australia, South Korea, or Spain — and sovereign wealth exceeding $6 trillion, yet until now, lacked a public Bitcoin treasury company like MicroStrategy.“

Magazine: Rise of MicroStrategy clones, Asia dominates crypto adoption: Asia Express 2024 review