Aave’s tokenholders approved a governance proposal to start buying back the decentralized finance (DeFi) protocol’s governance token, AAVE, as part of a broader tokenomics overhaul, Aave said on April 9. 

The proposal — which was approved by more than 99% of AAVE tokenholders — permits the protocol to purchase $4 million in AAVE (AAVE) tokens, enough for one month of buybacks. 

The move is a “first step” toward a broader plan to repurchase $1 million AAVE tokens weekly for six months. It is also the latest instance of DeFi protocols implementing buyback mechanisms in response to tokenholder demands.

“The goal is to sustainably increase AAVE acquisition from the open market and distribute it to the Ecosystem Reserve,” the proposal said. 

The AAVE token’s price rallied more than 13% on April 9, bringing the protocol’s market capitalization to more than $2.1 billion, according to data from CoinGecko.

The buyback proposal passed with overwhelming support. Source: Aave

Related: Aave proposal to peg Ethena’s USDe to USDT sparks community pushback

Buybacks gain popularity

In March, the Aave Chan Initiative (ACI), a governance advisory group, proposed a tokenomics revamp that would include new revenue allocations for AAVE tokenholders, enhanced safety features for users, and the creation of an “Aave Finance Committee.”

Aave is Web3’s most popular DeFi protocol, with total value locked surpassing $17.5 billion as of April 9, according to DefiLlama. 

It is also among DeFi’s biggest fee generators, with an estimated annualized fee income of $350 million, the data shows. 

Aave is DeFi’s most popular protocol by TVL. Source: DeFILlama

DeFi protocols are under increasing pressure to provide tokenholders with a share of protocol revenues — partly because US President Donald Trump has fostered a friendlier regulatory environment for DeFi protocols in the United States.

Projects including Ethena, Ether.fi and Maple are piloting value-accrual mechanisms for their native tokens.

In January, Maple Finance’s community floated buying back native SYRUP tokens and distributing them as rewards to stakers.

In December, Ether.fi, a liquid restaking token issuer, tipped plans to direct 5% of protocol revenues toward buying back native ETHFI tokens. 

Similarly, Ethena, a yield-bearing stablecoin issuer, agreed to share some of its approximately $200 million in protocol revenues with tokenholders in November.

Magazine: DeFi will rise again after memecoins die down: Sasha Ivanov, X Hall of Flame

The United States Securities and Exchange Commission (SEC) has approved options trading for multiple spot Ether (ETH) exchange-traded funds (ETFs), a move that may broaden the investment appeal of Ether among institutional traders.

The SEC issued the approval on April 9 after reviewing a proposed rule change submitted by BlackRock for its iShares Ethereum Trust (ETHA) on July 22, 2024. Similar approvals were granted to Bitwise Ethereum ETF (ETHW), Grayscale Ethereum Trust (ETHE), and Grayscale Ethereum Mini Trust (ETH), as well as Fidelity Ethereum Fund (FETH).

“[T]he Exchange proposes to amend its rules to permit the listing and trading of options on the Trust,” the SEC said in its response to the Nasdaq, adding:

The Exchange states that options on the Trust will provide investors with an additional, relatively lower cost investing tool to gain exposure to spot ether as well as a hedging vehicle to meet their needs in connection with ether products and positions.

The SEC’s approval of options trading on the iShares Ethereum Trust. Source: SEC

Options on ETFs are a portfolio tool that gives investors the ability to hedge against a decline in assets. The strategy’s inclusion is seen as an important step in broadening Ether’s investment appeal after regulators approved the spot Ethereum ETFs last July.

So far, net inflows into the spot Ether funds have been fairly muted, with most of the institutional interest flooding into Bitcoin (BTC) funds.

BlackRock’s ETHA currently has $1.8 billion in net assets, down 56% since the start of the year, according to VettaFi.

Related: Ethereum price falls to 2-year low, but pro traders still have hope

Shifting regulatory tides

Since the election of US President Donald Trump, the SEC has signaled its readiness to scale back its enforcement initiatives against the crypto industry. Although this was expected, legal experts with the Harvard Law School Forum on Corporate Governance were surprised by “how quickly the shifting priorities would come to fruition” since Trump took office.

As Cointelegraph recently reported, the securities regulator has closed its investigations into various crypto companies, including exchanges Gemini and Coinbase, decentralized exchange developer Uniswap Labs, and NFT marketplace OpenSea.

On the legislative side, regulators are moving quickly to pass pro-stablecoin legislation. The House Financial Services Committee recently advanced the STABLE Act, which is meant to enshrine the use of stablecoins in the United States, and the Senate Banking Committee pushed through the GENIUS Act, which aims to regulate stablecoin issuers.

Lawmakers have also tipped plans to advance a comprehensive crypto market structure bill, which is expected to be finalized this year.

Related: No crypto project has registered with the SEC and ‘lived to tell the tale’ — House committee hearing

Mounting international trade tensions are rattling cryptocurrency markets — but they could also accelerate institutional crypto adoption, several industry executives told Cointelegraph. 

Since US President Donald Trump announced sweeping tariffs on US imports on April 2, core cryptocurrencies experienced double-digit price swings, worsening an ongoing market rout starting earlier this year. 

However, “[t]he silver lining is that economic uncertainty has historically accelerated institutional interest in digital assets as a diversification strategy,” David Siemer, co-founder and CEO of Wave Digital Assets, told Cointelegraph.

Bitcoin has already shown “signs of resilience” amid the market turbulence, underscoring the cryptocurrency’s potential as a hedge against geopolitical disruption, according to an April 7 Binance report. 

Now, “[a]s traditional banking channels become entangled in geopolitical tensions, we’re witnessing increased demand for blockchain-based settlement solutions that operate outside conventional correspondent banking networks,” Siemer said. 

Bitcoin and the S&P 500’s recent performance. Source: 21Shares

Related: US President Donald Trump issues 90-day pause on reciprocal tariffs

Tariff turmoil

On April 9, Trump paused implementation of a portion of the sweeping tariffs he announced last week on US imports while simultaneously vowing to hike levies on Chinese goods to 125%. 

The S&P 500 — an index of the largest US stocks — jumped more than 8% on the news, partially reversing losses tied to Trump’s original tariff announcement, according to Google Finance.

Bitcoin’s (BTC) spot price, as well as the total cryptocurrency market capitalization, rose by a similar amount, roughly 8%, as of late-day trading on April 9, CoinMarketCap data shows.

Crypto market caps are up on April 9. Source: CoinMarketCap

Decentralized finance (DeFi) protocols are particularly well-positioned to benefit from trade turmoil, which highlights the segment’s “strategic value,” according to Nicholas Roberts-Huntley, co-founder and CEO of Concrete & Glow Finance.

“DeFi offers a neutral, borderless alternative for accessing credit, earning yield, and moving capital,” Roberts-Huntley said. “For builders, this is an opportunity to double down on interoperability and censorship resistance.”

Still, crypto prices will continue to mirror the broader market for the foreseeable future, Aurelie Barthere, a research analyst at Nansen, told Cointelegraph. If the sell-off continues, expect crypto to behave as “just a higher beta risk asset correlated with risk assets at the moment,” Barthere said.

Magazine: DeFi will rise again after memecoins die down: Sasha Ivanov, X Hall of Flame

The Dollar Index (DXY) dipping below 100 has historically aligned with Bitcoin (BTC) bull runs, delivering gains of over 500% during the last two instances. Now, as trade tensions escalate and US Treasurys face sell-offs, some analysts believe China may be actively working to weaken the US dollar. This added pressure on the dollar heightens the likelihood that it could once again serve as a catalyst for another major Bitcoin rally. 

Is China working to weaken the US dollar?

According to an April 9 Reuters report, China’s central bank has instructed state-owned lenders to “reduce dollar purchases” as the yuan faces significant downward pressure. Large banks were reportedly “told to step up checks when executing dollar purchase orders for their clients,” signaling an effort to “curb speculative trades.”

Some analysts have speculated whether China might be attempting to weaken the dollar in response to recent US import tariff increases. However, Jim Bianco, president of Bianco Research, holds a different view.

Source: X/Jim Bianco

Bianco doubts that China is selling US Treasurys with the intent of harming the US economy. He points out that the DXY has remained steady around the 102 level. While China could sell bonds without converting the proceeds into other currencies—thereby impacting the bond market without destabilizing the dollar—this approach seems counterproductive. According to Bianco, it is unlikely that China is a significant seller of Treasurys, if it is selling them at all.

US Dollar Index (DXY). Source: TradingView / Cointelegraph

The DXY Index remains close to the 104 level seen on March 9 and has consistently stayed within the 100-110 range since November 2022. Therefore, claims that its current level reflects widespread distrust in the US dollar or signals an imminent collapse seem unfounded. In reality, stock market performance is not an accurate measure of investors’ risk perception regarding the economy. 

DXY below 100 is usually followed by Bitcoin bull runs

The last time the DXY Index fell below 100 was in June 2020, a period that coincided with a Bitcoin bull run. During those nine months, Bitcoin surged from $9,450 to $57,490. Similarly, when DXY dropped below 100 in mid-April 2017, Bitcoin’s price skyrocketed from $1,200 to $17,610 within eight months. Whether coincidental or not, the 100 level has historically aligned with significant Bitcoin price gains.

A weakening DXY indicates that the US dollar has lost value against a basket of major currencies such as the euro, Swiss franc, British pound, and Japanese yen. This decline impacts US-based companies by reducing the amount of dollars they earn from foreign revenues, which in turn lowers tax contributions to the US government. This issue is particularly critical given that the US is running an annual deficit exceeding $1.8 trillion.

Similarly, US imports for individuals and businesses become more expensive in dollar terms when the currency weakens, even if prices remain unchanged in foreign currencies. Despite being the world’s largest economy, the US imports $160 billion in oil, $215 billion in passenger vehicles, and $255 billion in computers, smartphones, data servers, and similar products annually.

Related: China’s tariff response may mean more capital flight to crypto: Hayes

A weaker US dollar has a dual negative impact on the economy. It tends to slow consumption as imports become more expensive, and it simultaneously reduces tax revenues from the international earnings of US-based companies. For example, more than 49% of revenues for major corporations like Microsoft, Apple, Tesla, Visa, and Meta come from outside the US. Similarly, companies such as Google and Nvidia derive an estimated 35% or more of their revenues internationally.

Bitcoin’s price could potentially reclaim the $82,000 level regardless of movements in the DXY Index. This could happen as investors grow concerned about potential liquidity injections from the US Federal Reserve to stave off an economic recession. However, if the DXY Index falls below 100, investors may find stronger incentives to turn to alternative hedge instruments like Bitcoin.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Legendary professional wrestler Ric Flair launched a tokenized sticker collection on Telegram on April 9, becoming the latest celebrity to launch a tokenized social project.

Spokespeople for the project told Cointelegraph they are considering rewarding early sticker holders with future perks, though no specifics were shared. Flair told Cointelegraph that the project was launched to drive community engagement and added:

“Telegram is where people are really showing up these days. It is global, it is fast, and the way people communicate there just felt like the perfect fit for what we are doing. These stickers are about energy, personality, and culture, and Telegram is the place to bring that to life.”

The wrestler’s tokenized sticker launch follows mixed-martial arts champion and Irish political candidate Conor McGregor’s memecoin launch on April 5, which failed and highlights the struggle of risk-on investments and digital assets amid the recent macroeconomic downturn.

Flair, who retired from wrestling in 2022, has previously ventured into the crypto space. In 2024, he introduced the “Wooooo!” coin (WOOOOO), a memecoin inspired by his iconic catchphrase. The token has no trading activity as of April 9, 2025, with only one address controlling over 70% of the supply, according to CoinMarketCap.The legendary wrestler has a history of merchandising his brand through various collectibles, including physical stickers available on his official online store and Amazon.

Wrestling icon Ric Flair joins Telegram and touts new project. Source: Ric Flair

Related: Melania Trump’s memecoin team ‘quietly sold’ $30M, says Bubblemaps

Memecoins suffer in the turbulent macroeconomic environment

Memecoins were one of the biggest narratives of 2024 and one of the highest-performing asset classes, with top-performing memecoins returning four-figure percentage gains to investors during the year.

The market for memecoins and other social tokens peaked in December 2024 amid a historic rally in the crypto markets. However, since then, memecoin prices have plummeted, with many top-tier memecoins such as Dogecoin (DOGE) and Pepe (PEPE) shedding approximately 70-80% of their value over the period.

The macroeconomic uncertainty from the ongoing trade war has also damped the appetite for riskier assets as investors flee into more stable investments like cash, government bonds, and stablecoins.

Crypto markets bleed amid macroeconomic downturn, particularly altcoins, memes, and other social tokens. Source: TradingView

Conor McGregor’s REAL token launched amid the macroeconomic crash and failed to meet its $1 million minimum funding requirement.

The project only managed to raise $392,315 during its April 5-6 sealed-bid auction presale — well under the $3 million goal set by the team and the Real World Gaming decentralized autonomous organization (DAO).

REAL’s developers announced a full refund to bidders after failing to reach the minimum funding target. Despite this, the Real World Gaming DAO signaled that this would not be the end of the project.

Magazine: Memecoins: Betrayal of crypto’s ideals… or its true purpose?

United States President Donald Trump has issued a 90-day pause for “reciprocal tariffs” and lowered the tariff rate to 10% on countries that do not retaliate with counter-tariffs.

However, the President also said he would increase the reciprocal tariff rate on China to 125% due to the country’s counter-tariffs against the US. Trump wrote in an April 9 Truth Social post:

“At some point, hopefully, in the near future, China will realize that the days of ripping off the USA and other countries is no longer sustainable or acceptable.”

According to data from TradingView, the S&P 500 index rallied by close to 7% following the announcement, showcasing the high volatility of capital markets amid the macroeconomic uncertainty and the potential for a protracted trade conflict.

Source: Donald Trump

Related: Trump tariff negotiations are ‘all about’ China deal — Raoul Pal

Markets experience high volatility following every Trump announcement

Capital markets are currently experiencing extraordinarily high volatility, swinging between price extremes in response to tariff announcements made by President Trump.

The stock market wiped away trillions of dollars in shareholder value within days of Trump signing the reciprocal tariff order, only for the pendulum to swing the other way every time a pause in the tariffs was announced or Trump walked back his rhetoric.

On April 7, rumors began circulating on social media that Trump was considering a tariff pause, triggering the US stock market to rally and add $2 trillion in value in hopes of a pause.

Stocks rebound following Trump’s tariff pause. Source: TradingView

The volatility index, a measure of the S&P 500 stock market index’s volatility, broke above 60 on April 7 — the highest level since the unwinding of the yen carry trade in August 2024.

At the time of this writing, the VIX has dropped to 37.5, which still signals extreme market volatility despite the dramatic drop in the last 2 days.

The Volatility S&P 500 Index dropped dramatically following Trump’s tariff pause announcement but remains elevated. Source: TradingView

BitMEX founder and market analyst Arthur Hayes recently predicted that a devaluation of the Chinese yuan as a response to the Trump administration’s trade tariffs could spark capital flight into crypto.

Hayes added that devaluations of the yuan led to Chinese investors shifting capital from traditional investments into digital assets in 2013 and 2015.

Magazine: DeFi will rise again after memecoins die down: Sasha Ivanov, X Hall of Flame

United States President Donald Trump issued a 90-day pause on “reciprocal tariffs” and lowered the tariff rate to 10% on countries that do not retaliate with counter-tariffs.

The president also said he would increase the reciprocal tariff rate on China to 125% due to the country’s counter-tariffs against the US. Trump wrote in an April 9 Truth Social post:

“At some point, hopefully, in the near future, China will realize that the days of ripping off the USA, and other Countries, is no longer sustainable or acceptable.”

According to data from TradingView, the S&P 500 index rallied close to 7% following the announcement, showcasing the high volatility of capital markets amid the macroeconomic uncertainty and the potential for a protracted trade conflict.

Source: Donald Trump

Related: Trump tariff negotiations are ‘all about’ China deal — Raoul Pal

Markets experience high volatility following every Trump announcement

Capital markets are currently experiencing extraordinarily high volatility, swinging between price extremes in response to tariff announcements made by President Trump.

The stock market wiped away trillions of dollars in shareholder value within days of Trump signing the reciprocal tariff order, only for the pendulum to swing the other way every time a pause in the tariffs was announced or Trump walked back his rhetoric.

On April 7, rumors began circulating on social media that Trump was considering a tariff pause, triggering the US stock market to rally and add $2 trillion in value in hopes of a pause.

Stocks rebound following Trump’s tariff pause. Source: TradingView

The volatility index, a measure of the S&P 500 stock market index’s volatility, broke above 60 on April 7 — the highest level since the unwinding of the yen carry trade in August 2024.

At the time of this writing, the VIX had dropped to 37.5, which still signals extreme market volatility despite the dramatic drop in the last two days.

The Volatility S&P 500 Index dropped dramatically following Trump’s tariff pause announcement but remains elevated. Source: TradingView

BitMEX founder and market analyst Arthur Hayes recently predicted that a devaluation of the Chinese yuan as a response to the Trump administration’s trade tariffs could spark capital flight into crypto.

Hayes added that devaluations of the yuan led to Chinese investors shifting capital from traditional investments into digital assets in 2013 and 2015.

Magazine: DeFi will rise again after memecoins die down: Sasha Ivanov, X Hall of Flame

United States President Donald Trump issued a 90-day pause on “reciprocal tariffs” and lowered the tariff rate to 10% on countries that do not retaliate with counter-tariffs.

The president also said he would increase the reciprocal tariff rate on China to 125% due to the country’s counter-tariffs against the US. Trump wrote in an April 9 Truth Social post:

“At some point, hopefully, in the near future, China will realize that the days of ripping off the USA, and other Countries, is no longer sustainable or acceptable.”

According to data from TradingView, the S&P 500 index rallied close to 7% following the announcement, showcasing the high volatility of capital markets amid the macroeconomic uncertainty and the potential for a protracted trade conflict.

Source: Donald Trump

Related: Trump tariff negotiations are ‘all about’ China deal — Raoul Pal

Markets experience high volatility following every Trump announcement

Capital markets are currently experiencing extraordinarily high volatility, swinging between price extremes in response to tariff announcements made by President Trump.

The stock market wiped away trillions of dollars in shareholder value within days of Trump signing the reciprocal tariff order, only for the pendulum to swing the other way every time a pause in the tariffs was announced or Trump walked back his rhetoric.

On April 7, rumors began circulating on social media that Trump was considering a tariff pause, triggering the US stock market to rally and add $2 trillion in value in hopes of a pause.

Stocks rebound following Trump’s tariff pause. Source: TradingView

The volatility index, a measure of the S&P 500 stock market index’s volatility, broke above 60 on April 7 — the highest level since the unwinding of the yen carry trade in August 2024.

At the time of this writing, the VIX had dropped to 37.5, which still signals extreme market volatility despite the dramatic drop in the last two days.

The Volatility S&P 500 Index dropped dramatically following Trump’s tariff pause announcement but remains elevated. Source: TradingView

BitMEX founder and market analyst Arthur Hayes recently predicted that a devaluation of the Chinese yuan as a response to the Trump administration’s trade tariffs could spark capital flight into crypto.

Hayes added that devaluations of the yuan led to Chinese investors shifting capital from traditional investments into digital assets in 2013 and 2015.

Magazine: DeFi will rise again after memecoins die down: Sasha Ivanov, X Hall of Flame

Prediction marketplace Kalshi has started taking Bitcoin (BTC) deposits in a bid to onboard more crypto-native users.

The company that lets users bet on events ranging from election outcomes to Rotten Tomatoes film ratings has seen a strong uptake among crypto traders, Kalshi told Cointelegraph on April 9. For instance, event contracts for betting on Bitcoin’s hour-by-hour price changes have seen $143 million in trading volume to date, a spokesperson said.

Kalshi is a derivatives exchange regulated by the US Commodity Futures Trading Commission (CFTC). As of April 9, it listed some 50 crypto-related event contracts, including markets for betting on coins’ 2025 highs and lows, as well as on headlines such as US President Donald Trump’s proposed National Bitcoin Reserve. 

Kalshi has doubled down on crypto event contract markets. Source: Kalshi

The platform started accepting crypto payments in October when it enabled stablecoin USD Coin (USDC) deposits. 

Kalshi relies on ZeroHash — a crypto payments infrastructure provider — for off-ramping BTC and USDC and converting the deposits to US dollars. The exchange accepts BTC deposits only from the Bitcoin network.

Most Kalshi traders no longer expect core tokens to earn positive returns this year. Source: Kalshi

Related: Kalshi traders place the odds of US recession in 2025 at over 61%

More accurate than polls

Launched in 2021, Kalshi rose to prominence ahead of the US’s November elections. 

It became a top venue for trading on 2024 political events after winning a lawsuit against the CFTC, which tried to block Kalshi from listing contracts tied to elections. 

The regulator argued that political prediction markets threaten the integrity of elections, but industry analysts say they often capture public sentiment more accurately than polls. 

For instance, prediction markets, including Kalshi, accurately predicted Trump’s presidential election win even as polls indicated a tossup.

“Event contract markets are a valuable public good for which there is no evidence of significant manipulation or widespread use for any nefarious purposes that the Commission alleges,” Harry Crane, a statistics professor at Rutgers University, said in an August comment letter filed with the CFTC.

As of April 9, Kalshi traders peg the odds of the US entering a recession at 68%, according to its website.

In March, Kalshi partnered with Robinhood to bring prediction markets to the popular online brokerage platform. Robinhood’s stock rose some 8% on the news. 

Kalshi competes with Polymarket, a Web3-based prediction platform. Polymarket processed more than $3 billion in trading volumes tied to the US presidential election despite being off-limits for US traders.

Magazine: Bitcoin heading to $70K soon? Crypto baller funds SpaceX flight: Hodler’s Digest, March 30 – April 5

United States securities laws are not flexible enough to account for digital assets, as evidenced by the parade of crypto-native companies that have tried and failed to get into the Securities and Exchange Commission’s (SEC) good graces, Rodrigo Seira, special counsel to Cooley LLP, told a House Committee hearing on April 9.

The hearing, titled American Innovation and the Future of Digital Assets Aligning the U.S. Securities Laws for the Digital Age, featured Seira, WilmerHale partner Tiffany J. Smith, Polygon chief legal officer Jake Werrett and Alexandra Thorn, a senior director at the Center for American Progress.

“It is clear that the current securities regulatory framework is not a viable option to regulate crypto. It fails to achieve its stated policy goals,” Seira said in his opening remarks. “[T]he idea that crypto projects can come in and register with the SEC is demonstrably false.”

Cooley LLP special counsel Rodrigo Seira addresses the committee on April 9. Source: House Committee on Financial Services

Seira acknowledged that crypto promoters who raise capital for a new enterprise should be subject to federal securities laws. 

“In practice, however, virtually no crypto projects have successfully registered their tokens under federal securities laws and lived to tell the tale,” he said, adding: 

Projects that tried to comply with [the] SEC’s current regulatory requirements expended significant resources and effort only to fail or survive in a state of regulatory uncertainty. Moreover, registration is not a simple one-time process. Registering a token in the same manner as a stock triggers an obligation to operate as a publicly reporting company […].”

Related: Crypto has a regulatory capture problem in Washington — or does it?

Righting the ship

In introducing the witnesses, Representative Bryan Steil, who heads the Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence, acknowledged regulatory roadblocks, which he said were put in place by the previous administration. 

Congressman Bryan Steil addresses the hearing on April 9. Source: House Committee on Financial Services

Under President Donald Trump, lawmakers are attempting to right the ship by passing sensible legislation, said Steil.

One of the first steps occurred last week when the House Financial Services Committee advanced the STABLE Act, which is designed to regulate payment stablecoins tied to the US dollar and other fiat currencies. 

Source: Financial Services GOP

A month earlier, the Senate Banking Committee advanced the GENIUS Act, which aims to regulate stablecoin issuers by establishing reserve requirements and requiring full compliance with Anti-Money Laundering laws.

The next step is “advancing the second half of this agenda: comprehensive digital asset market structure legislation,” said Steil.

Representative Ro Khanna told a digital asset conference last month that a market structure bill will cross the finish line this year.

The purpose of such legislation is to establish a clear regulatory framework for digital assets, including their legal categories and the enforcement jurisdiction of agencies such as the SEC and Commodity Futures Trading Commission.

Magazine: Unstablecoins: Depegging, bank runs and other risks loom