The election of US President Donald Trump was supposed to usher in a golden era of crypto. Although the regulatory stars are aligning, the crypto industry just experienced its worst quarter in years.

The prices of Bitcoin (BTC) and Ether (ETH) recorded their worst Q1 in seven years, market sentiment fell to its lowest point since the last bear market, and Coinbase stock experienced its worst sell-off since the FTX debacle. 

With the first quarter finally in the books, investors are looking forward to positive catalysts for Bitcoin and the broader market. This could come in the form of favorable Spring seasonality, more clarity on Trump’s tariff policy and shifting policy winds at the Federal Reserve. 

Coinbase stock suffers worst quarter since 2022

Coinbase stock, which has long been considered an important bellwether for the crypto industry, plunged by 33% in the first quarter despite reporting strong business fundamentals and a solid revenue outlook. As Cointelegraph reported, it was the worst quarterly decline since the FTX exchange collapse in late 2022.

Like other crypto-native businesses, Coinbase’s performance languished under the pressure of Trump’s tariff war, volatile digital asset prices and the overhang of tightening financial conditions from the previous quarter.

Beyond these short-term headwinds, though, Coinbase is booming. The company’s revenues more than doubled in 2024, reaching $6.6 billion. Its adjusted earnings rose to $3.3 billion, marking two consecutive years of growth. 

COIN stock’s volatile year so far. Source: Google Finance

Trump family backs Bitcoin mining venture

Despite fear and volatility gripping the crypto markets, Donald Trump’s family is doubling down on its long-term investments in the industry. 

On March 31, two of Trump’s sons, Eric and Donald Jr., announced they are backing a new crypto-mining venture called American Bitcoin. The venture is majority-owned by Hut 8, a public crypto miner. 

American Bitcoin “aims to become the world’s largest, most efficient pure-play Bitcoin miner while building a robust strategic Bitcoin reserve,” the announcement said.

Although crypto prices are down, it’s getting harder for investors to remain bearish on the industry with the Trump family investing so heavily. The family is behind the DeFi project World Liberty Financial, which has amassed a large portfolio of digital assets that include Ether, Wrapped Bitcoin (WBTC), Aave (AAVE) and Chainlink (LINK).

Tether stacks more BTC

Stablecoin issuer Tether bolstered its balance sheet in the first quarter by acquiring 8,888 Bitcoin, according to onchain data that was later confirmed by CEO Paolo Ardoino. The company now holds 100,521 BTC valued at roughly $8.7 billion.

Tether is able to acquire Bitcoin and expand its venture capital business thanks in large part to its highly profitable stablecoin operations. The company generated $13 billion in profit last year on the back of its massive holdings of interest-bearing US Treasury bonds. 

Despite its success, Tether has been the subject of negative reports by the media, industry and politicians. A recent JPMorgan report argued that Tether would be forced to sell a portion of its Bitcoin holdings to comply with forthcoming US stablecoin regulations. 

A company spokesperson threw cold water on the conclusion, telling Cointelegraph that JPMorgan understands “neither Bitcoin nor Tether.” 

GameStop raises $1.5B for Bitcoin purchases

Video game retailer turned meme stock GameStop Corporation is poised to add Bitcoin to its balance sheet after finalizing a $1.5 billion convertible debt offering.

“The company expects to use the net proceeds from the offering for general corporate purposes, including the acquisition of Bitcoin in a manner consistent with the Company’s Investment Policy,” GameStop said.

GameStop’s board approved the plan to invest in Bitcoin last month. The approval also green-lighted the company’s acquisition of US dollar-denominated stablecoins. 

In addition to raising debt to buy Bitcoin, GameStop hinted at potentially using a portion of its $4.8 billion cash reserves to fund future acquisitions. 

GameStop shares have experienced extreme volatility since March 26, when the company first disclosed its plan to acquire BTC. Source: Google Finance

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First Trust Advisors has launched two Bitcoin (BTC) strategy exchange-traded funds (ETFs) designed to provide investors with Bitcoin exposure while capping losses and earning yield, the asset manager said. 

The move comes amid an outpouring of funds seeking to enhance Bitcoin’s appeal to traditional investors by offering tailored exposure to the cryptocurrency’s performance.

The FT Vest Bitcoin Strategy Floor15 ETF (BFAP) is designed to track Bitcoin’s performance up to a capped upside while limiting drawdown risk to approximately 15%, First Trust said in an announcement.

“Over the past few years, investors have shown a remarkably strong appetite for bitcoin-linked ETFs, but the potential for sharp drawdowns has kept many on the sidelines,” Ryan Issakainen, an ETF strategist at First Trust, said in a statement.

First Trust launched two new Bitcoin strategy funds. Source: First Trust

The FT Vest Bitcoin Strategy & Target Income ETF (DFII) is an actively managed fund aiming to offer partial Bitcoin exposure while generating a yield that beats short-dated US Treasurys by at least 15%, according to the asset manager. 

The DFII fund “will seek to take advantage of bitcoin’s high volatility to generate income by selling call options,” Issakainen said. The BFAP fund also uses financial derivatives to hedge downside risk. 

Options are contracts granting the right to buy or sell — “call” or “put,” in trader parlance — an underlying asset at a certain price.

Related: Trump-linked Strive files for ‘Bitcoin Bond’ ETF

Structured Bitcoin funds

Launched in January 2024, Bitcoin ETFs emerged as one of last year’s hottest investment products. 

As of April 4, spot BTC ETFs collectively manage approximately $93 billion in assets, according to data from Bitbo. 

Bitcoin ETFs saw outflows after US President Trump announced tariffs. Source: Farside Investors

Other types of ETFs designed to offer tailored exposure to Bitcoin’s performance are also gaining popularity. 

On April 2, Grayscale — a cryptocurrency-focused asset manager — launched two Bitcoin strategy ETFs. Like First Trust’s ETFs, they use financial derivatives to optimize for downside risk management and income generation. 

In March, asset manager Bitwise launched an ETF holding stocks of companies with large Bitcoin treasuries. 

Spot BTC ETFs saw nearly $100 million in outflows on April 3 amid the heightened market volatility following US President Donald Trump’s tariff announcement of sweeping tariffs on April 2. 

Magazine: Bitcoin ATH sooner than expected? XRP may drop 40%, and more: Hodler’s Digest, March 23 – 29

Despite growing tariff-related uncertainty, there is a 70% probability cryptocurrency markets will find the local bottom in the next two months, which will serve as the supporting foundation for the next leg up in the 2025 cycle, according to Nansen analysts.

Savvy traders continue making generational wealth despite growing volatility and lack of risk appetite. One unidentified trader turned an initial $2,000 investment into over $43 million by trading the popular frog-themed memecoin, Pepe.

70% chance of crypto bottoming before June amid trade fears: Nansen

The cryptocurrency market may see a local bottom in the next two months amid global uncertainty over ongoing import tariff negotiations, which have been limiting investor sentiment in both traditional and digital markets.

US President Donald Trump on April 2 announced reciprocal import tariffs, measures aimed at reducing the country’s estimated trade deficit of $1.2 trillion in goods and boosting domestic manufacturing. 

While global markets took a hit from the first tariff announcement, there is a 70% chance for cryptocurrency valuations to find their bottom by June, according to Aurelie Barthere, principal research analyst at the Nansen crypto intelligence platform.

The research analyst told Cointelegraph:

“Nansen data estimates a 70% probability that crypto prices will bottom between now and June, with BTC and ETH currently trading 15% and 22% below their year-to-date highs, respectively. Given this data, upcoming discussions will serve as crucial market indicators.”

She added: “Once the toughest part of the negotiation is behind us, we see a cleaner opportunity for crypto and risk assets to finally mark a bottom.”

Continue reading

Crypto trader turns $2,000 of PEPE into $43 million

A savvy cryptocurrency trader reportedly turned $2,000 into more than $43 million by investing in the memecoin Pepe at its peak valuation, despite the token’s extreme volatility and lack of underlying technical value.

The trader made an over 4,700-fold return on investment on the popular frog-themed Pepe (PEPE) cryptocurrency, according to blockchain intelligence platform Lookonchain.

“This OG spent only $2,184 to buy 1.5T $PEPE($43M at the peak) in the early stage. He sold 1.02T $PEPE for $6.66M, leaving 493B $PEPE($3.64M), with a total profit of $10.3M(4,718x), Lookonchain wrote in a March 29 X post.

Source: Lookonchain

The trader realized over $10 million in profit despite Pepe’s price falling over 74% from its all-time high of $0.00002825, reached on Dec. 9, 2024, Cointelegraph Markets Pro data shows.

PEPE/USD, all-time chart. Source: Cointelegraph Markets Pro

Memecoins are considered some of the most speculative and volatile digital assets, with price action driven largely by online enthusiasm and social sentiment rather than fundamental utility or innovation.

Still, they’ve proven capable of generating life-changing returns. In May 2024, another early Pepe investor turned $27 into $52 million — a 1.9 million-fold return — according to onchain data.

Continue reading

$1 trillion stablecoin supply could drive next crypto rally — CoinFund’s Pakman

The global stablecoin supply may surge to $1 trillion by the end of 2025, potentially becoming a key catalyst for broader cryptocurrency market growth, according to David Pakman, managing partner at crypto-native investment firm CoinFund.

“We’re in a stablecoin adoption upswell that’s likely to increase dramatically this year,” Pakman said during Cointelegraph’s Chainreaction live show on X on March 27. “We could go from $225 billion stablecoins to $1 trillion just this calendar year.”

He noted that such growth, while modest compared to global financial markets, would represent a “meaningfully significant” shift for blockchain-based finance.

Pakman also suggested that the rise in capital flowing onchain, combined with growing interest in exchange-traded funds (ETFs), could further support decentralized finance (DeFi) activity:

“If we have a moment this year where ETFs are permitted to provide staking rewards or yield to holders, that unlocks really meaningful uplift in DeFi activity, broadly defined.”

Continue reading

Avalanche stablecoins up 70% to $2.5 billion; AVAX demand lacks DeFi deployment

Avalanche saw a significant surge in stablecoin supply over the past year, but the onchain deployment of this capital points to passive investor behavior, which may be limiting demand for the network’s utility token.

The stablecoin supply on the Avalanche network rose by over 70% over the past year, from $1.5 billion in March 2024 to over $2.5 billion as of March 31, 2025, according to Avalanche’s X post.

Market capitalization of stablecoins on Avalanche. Source: Avalanche

Stablecoins are the main bridge between the fiat and crypto world, and increasing stablecoin supply is often seen as a signal for incoming buying pressure and growing investor appetite.

However, Avalanche’s (AVAX) token has been in a downtrend, dropping nearly 60% over the past year to trade just above $19 despite the $1 billion increase in stablecoin supply, Cointelegraph Markets Pro data shows.

AVAX/USD,1-year chart. Source: Cointelegraph Markets Pro

“The apparent contradiction between surging stablecoin value on Avalanche and AVAX’s significant price decline likely stems from how that stablecoin liquidity is being held,” according to Juan Pellicer, senior research analyst at IntoTheBlock crypto intelligence platform.

Continue reading

DeFi TVL falls 27% while AI, social apps surge in Q1: DappRadar

Economic uncertainty and a major crypto exchange hack pushed down the total value locked in decentralized finance (DeFi) protocols to $156 billion in the first quarter of 2025, but AI and social apps gained ground with an increase in network users, according to a crypto analytics firm.

“Broader economic uncertainty and lingering aftershocks from the Bybit exploit” were the main contributing factors to the DeFi sector’s 27% quarter-on-quarter fall in TVL, according to an April 3 report from DappRadar, which noted that the price of Ether (ETH) fell 45% to $1,820 over the same period.

Change in DeFi total value locked between Jan. 2024 and March 2025. Source: DappRadar

The largest blockchain by TVL, Ethereum, fell 37% to $96 billion, while Sui was the hardest hit of the top 10 blockchains by TVL, falling 44% to $2 billion.

Solana, Tron and the Arbitrum blockchains also saw their TVLs slashed over 30%.

Meanwhile, blockchains that experienced a larger volume of DeFi withdrawals and had a smaller share of stablecoins locked in their protocols faced extra pressure on top of the falling token prices.

The newly launched Berachain was the only top-10 blockchain by TVL to rise, accumulating $5.17 billion between Feb. 6 and March 31, DappRadar noted.

Continue reading

DeFi market overview

According to data from Cointelegraph Markets Pro and TradingView, most of the 100 largest cryptocurrencies by market capitalization ended the week in the red.

The Pi Network (PI) token fell over 34%, logging the week’s biggest decline, followed by the Berachain (BERA) token, down nearly 30% on the weekly chart.

Total value locked in DeFi. Source: DefiLlama

Thanks for reading our summary of this week’s most impactful DeFi developments. Join us next Friday for more stories, insights and education regarding this dynamically advancing space.

Despite growing tariff-related uncertainty, there is a 70% probability cryptocurrency markets will find the local bottom in the next two months, which will serve as the supporting foundation for the next leg up in the 2025 cycle, according to Nansen analysts.

Savvy traders continue making generational wealth despite growing volatility and lack of risk appetite. One unidentified trader turned an initial $2,000 investment into over $43 million by trading the popular frog-themed memecoin, Pepe.

70% chance of crypto bottoming before June amid trade fears: Nansen

The cryptocurrency market may see a local bottom in the next two months amid global uncertainty over ongoing import tariff negotiations, which have been limiting investor sentiment in both traditional and digital markets.

US President Donald Trump on April 2 announced reciprocal import tariffs, measures aimed at reducing the country’s estimated trade deficit of $1.2 trillion in goods and boosting domestic manufacturing. 

While global markets took a hit from the first tariff announcement, there is a 70% chance for cryptocurrency valuations to find their bottom by June, according to Aurelie Barthere, principal research analyst at the Nansen crypto intelligence platform.

The research analyst told Cointelegraph:

“Nansen data estimates a 70% probability that crypto prices will bottom between now and June, with BTC and ETH currently trading 15% and 22% below their year-to-date highs, respectively. Given this data, upcoming discussions will serve as crucial market indicators.”

She added: “Once the toughest part of the negotiation is behind us, we see a cleaner opportunity for crypto and risk assets to finally mark a bottom.”

Continue reading

Crypto trader turns $2,000 of PEPE into $43 million

A savvy cryptocurrency trader reportedly turned $2,000 into more than $43 million by investing in the memecoin Pepe at its peak valuation, despite the token’s extreme volatility and lack of underlying technical value.

The trader made an over 4,700-fold return on investment on the popular frog-themed Pepe (PEPE) cryptocurrency, according to blockchain intelligence platform Lookonchain.

“This OG spent only $2,184 to buy 1.5T $PEPE($43M at the peak) in the early stage. He sold 1.02T $PEPE for $6.66M, leaving 493B $PEPE($3.64M), with a total profit of $10.3M(4,718x), Lookonchain wrote in a March 29 X post.

Source: Lookonchain

The trader realized over $10 million in profit despite Pepe’s price falling over 74% from its all-time high of $0.00002825, reached on Dec. 9, 2024, Cointelegraph Markets Pro data shows.

PEPE/USD, all-time chart. Source: Cointelegraph Markets Pro

Memecoins are considered some of the most speculative and volatile digital assets, with price action driven largely by online enthusiasm and social sentiment rather than fundamental utility or innovation.

Still, they’ve proven capable of generating life-changing returns. In May 2024, another early Pepe investor turned $27 into $52 million — a 1.9 million-fold return — according to onchain data.

Continue reading

$1 trillion stablecoin supply could drive next crypto rally — CoinFund’s Pakman

The global stablecoin supply may surge to $1 trillion by the end of 2025, potentially becoming a key catalyst for broader cryptocurrency market growth, according to David Pakman, managing partner at crypto-native investment firm CoinFund.

“We’re in a stablecoin adoption upswell that’s likely to increase dramatically this year,” Pakman said during Cointelegraph’s Chainreaction live show on X on March 27. “We could go from $225 billion stablecoins to $1 trillion just this calendar year.”

He noted that such growth, while modest compared to global financial markets, would represent a “meaningfully significant” shift for blockchain-based finance.

Pakman also suggested that the rise in capital flowing onchain, combined with growing interest in exchange-traded funds (ETFs), could further support decentralized finance (DeFi) activity:

“If we have a moment this year where ETFs are permitted to provide staking rewards or yield to holders, that unlocks really meaningful uplift in DeFi activity, broadly defined.”

https://t.co/v9lOnk00QY

— Cointelegraph (@Cointelegraph) March 27, 2025

Continue reading

Avalanche stablecoins up 70% to $2.5 billion; AVAX demand lacks DeFi deployment

Avalanche saw a significant surge in stablecoin supply over the past year, but the onchain deployment of this capital points to passive investor behavior, which may be limiting demand for the network’s utility token.

The stablecoin supply on the Avalanche network rose by over 70% over the past year, from $1.5 billion in March 2024 to over $2.5 billion as of March 31, 2025, according to Avalanche’s X post.

Market capitalization of stablecoins on Avalanche. Source: Avalanche

Stablecoins are the main bridge between the fiat and crypto world, and increasing stablecoin supply is often seen as a signal for incoming buying pressure and growing investor appetite.

However, Avalanche’s (AVAX) token has been in a downtrend, dropping nearly 60% over the past year to trade just above $19 despite the $1 billion increase in stablecoin supply, Cointelegraph Markets Pro data shows.

AVAX/USD,1-year chart. Source: Cointelegraph Markets Pro

“The apparent contradiction between surging stablecoin value on Avalanche and AVAX’s significant price decline likely stems from how that stablecoin liquidity is being held,” according to Juan Pellicer, senior research analyst at IntoTheBlock crypto intelligence platform.

Continue reading

DeFi TVL falls 27% while AI, social apps surge in Q1: DappRadar

Economic uncertainty and a major crypto exchange hack pushed down the total value locked in decentralized finance (DeFi) protocols to $156 billion in the first quarter of 2025, but AI and social apps gained ground with an increase in network users, according to a crypto analytics firm.

“Broader economic uncertainty and lingering aftershocks from the Bybit exploit” were the main contributing factors to the DeFi sector’s 27% quarter-on-quarter fall in TVL, according to an April 3 report from DappRadar, which noted that the price of Ether (ETH) fell 45% to $1,820 over the same period.

Change in DeFi total value locked between Jan. 2024 and March 2025. Source: DappRadar

The largest blockchain by TVL, Ethereum, fell 37% to $96 billion, while Sui was the hardest hit of the top 10 blockchains by TVL, falling 44% to $2 billion.

Solana, Tron and the Arbitrum blockchains also saw their TVLs slashed over 30%.

Meanwhile, blockchains that experienced a larger volume of DeFi withdrawals and had a smaller share of stablecoins locked in their protocols faced extra pressure on top of the falling token prices.

The newly launched Berachain was the only top-10 blockchain by TVL to rise, accumulating $5.17 billion between Feb. 6 and March 31, DappRadar noted.

Continue reading

DeFi market overview

According to data from Cointelegraph Markets Pro and TradingView, most of the 100 largest cryptocurrencies by market capitalization ended the week in the red.

The Pi Network (PI) token fell over 34%, logging the week’s biggest decline, followed by the Berachain (BERA) token, down nearly 30% on the weekly chart.

Total value locked in DeFi. Source: DefiLlama

Thanks for reading our summary of this week’s most impactful DeFi developments. Join us next Friday for more stories, insights and education regarding this dynamically advancing space.

A group of investors with cryptocurrency custody and trading firm Bakkt Holdings filed a class-action lawsuit alleging false or misleading statements and a failure to disclose certain information.

Lead plaintiff Guy Serge A. Franklin called for a jury trial as part of a complaint against Bakkt, senior adviser and former CEO Gavin Michael, CEO and president Andrew Main, and interim chief financial officer Karen Alexander, according to an April 2 filing in the US District Court for the Southern District of New York.

The group of investors allege damages as the result of violations of US securites laws and a lack of transparency surrounding its agreement with clients: Webull and Bank of America (BoA).

April 2 complaint against Bakkt and its executives. Source: PACER

The loss of Bank of America and Webull will result “in a 73% loss in top line revenue” due to the two firms making up a significant percentage of its services revenue, the investor group alleges in the lawsuit.

The filing stated Webull made up 74% of Bakkt’s crypto services revenue through most of 2023 and 2024, and Bank of America made up 17% of its loyalty services revenue from January to September 2024.

Related: Bakkt names new co-CEO amid re-focus on crypto offerings

Bakkt disclosed on March 17 that Bank of America and Webull did not intend to renew their agreements with the firm ending in 2025. The announcement likely contributed to the company’s share price falling more than 27% in the following 24 hours.

The investors allege Bakkt “misrepresented the stability and/or diversity of its crypto services revenue” and failed to disclose that this revenue was “substantially dependent” on Webull’s contract.

“As a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the Company’s securities, Plaintiff and other Class members have suffered significant losses and damages,” said the suit.

Other law offices said they were investigating Bakkt for securities law violations, suggesting additional class-action lawsuits may be in the works. Cointelegraph contacted Bakkt for a comment on the lawsuit but did not receive a response at the time of publication.

Prices affected by Trump Media reports

Bakkt’s share price surged roughly 162% in November 2024 after reports suggested that then-US President-elect Donald Trump’s media company was considering acquiring the firm. As of April 2025, neither company has officially announced a deal.

Shares in Bakkt (BKKT) were $8.15 at the time of publication, having fallen more than 36% in the previous 30 days.

Magazine: Meet lawyer Max Burwick — ‘The ambulance chaser of crypto’

Blockchain startup Codex has raised $15.8 million to build a layer-2 network specifically for stablecoins, signaling that more builders are rushing to capitalize on the growing industry and regulatory alignment around fiat-backed stable assets. 

The seed round was led by Dragonfly Capital, with additional participation from Coinbase, Circle, Cumberland Labs, Wintermute Ventures and others, Codex told Fortune.

The funding will be used to help Codex build its stablecoin-only platform from the ground up, said co-founder and CEO Haonan Li.

Source: Victor Yaw

Codex has disavowed “general-purpose blockchains” because of their inefficiencies in meeting real-world use cases, said Li. Instead, Codex is building a stablecoin-only chain on top of Optimism, an Ethereum layer-2 scaling solution that uses rollup technology to boost transaction speeds and lower costs.

Although details about the Codex chain were sparse, Li said the stablecoin solution aims to create a predictable fee structure that isn’t influenced by volatile blockchain activity. 

Codex is also aiming to build stablecoin off-ramps with existing cryptocurrency exchanges and local brokers, which would allow users to cash out their onchain assets for fiat. 

Related: Stablecoin adoption grows with new US bills, Japan’s open approach

The stablecoin “hunch” 

In 2023, Li had a “hunch” that stablecoins would be the next major blockchain growth story, which at the time “was a pretty contrarian view among these core crypto people,” he told Fortune. 

Codex co-founder Victor Yaw said the stablecoin market has grown 60 times in the last six years but still only accounts for less than 2% of offshore US dollar deposits. 

“We haven’t even scratched the surface,” he said.

Stablecoin demand has shown signs of resilience, growing in the face of adverse crypto market conditions. Although crypto markets plunged in the first quarter, stablecoin supplies increased by $30 billion during that period, according to crypto intelligence firm IntoTheBlock. 

The total stablecoin market capitalization now sits at nearly $230 billion. The vast majority of stable assets are backed by US dollars. 

The stablecoin circulating supply has grown by nearly 3% over the past 30 days. Source: RWA.xyz

Codex isn’t the only stablecoin network to emerge from stealth this year. In January, a layer-1 network called 1Money raised $20 million to further develop its stablecoin payment platform. 

1Money’s founder and former Binance.US chief Brian Shroder told Cointelegraph that the future of stablecoins will be “multicurrency,” with stable assets extending beyond the dominant US dollar. 

Growth beyond the US dollar will likely be fueled by “demand for localized stablecoin financial solutions and use cases,” said Shroder.

Related: ‘We’re bullish on stablecoins,’ next-gen DeFi — Coinbase Ventures head

Stablecoin firm Circle, the issuer of the USDC (USDC) dollar-pegged token, is reportedly mulling a delay of its initial public offering (IPO) plans amid the macroeconomic uncertainty created by the Trump administration’s trade policies.

According to The Wall Street Journal, “Circle had been nearing its next steps in going public, but is now watching anxiously before deciding what to do,” and joins a growing list of companies considering IPO delays, including fintech company Klarna and ticketing firm StubHub.

Circle filed an S-1 registration form with the United States Securities and Exchange Commission (SEC) to take the company public on April 1.

Circle’s S-1 registration form for its initial public offering. Source: SEC

The stablecoin firm is planning to sell its shares under the ticker symbol “CRCL.” Circle’s prospectus materials have not yet outlined details of the number of shares offered or the initial stock price.

Circle’s potential IPO delay comes amid turmoil in the stock market as trillions in shareholder value dissipated following US President Donald Trump’s April 2 announcement of sweeping trade tariffs and investor fears that a protracted trade war could cause a global recession.

Related: Trump ‘Liberation Day’ tariffs create chaos in markets, recession concerns

Trump’s protectionist trade policies crash markets

Trump’s sweeping tariff order established a 10% baseline tariff on all countries and reciprocal trade tariffs on countries that tax US imports.

Over $2 trillion was wiped away from the US stock market on April 3 as investors pivoted from risk-on assets to less volatile alternatives as a response to the growing macroeconomic uncertainty.

US stocks shed trillions in shareholder value following Trump’s sweeping tariff order. Source: TradingView

The Volatility S&P 500 Index (VIX), a measure of stock market volatility colloquially named the “Wall Street Fear Index,” is currently over 41 — an indication of extreme fear among stock market investors.

Fears of a US recession continue to mount as other countries respond to the Trump administration’s trade policies with counter-tariffs.

ARK Invest founder Cathie Wood voiced concerns over a looming recession prior to the US President officially signing the tariff order.

“We are worried about a recession. We think the velocity of money is slowing down dramatically,” Wood told an audience gathered for the Digital Asset Summit on March 18.

Magazine: 7 ICO alternatives for blockchain fundraising: Crypto airdrops, IDOs & more

Stablecoin firm Circle, the issuer of the USDC (USDC) dollar-pegged token, might delay its planned initial public offering (IPO) amid macroeconomic uncertainty over US President Donald Trump’s trade policies, The Wall Street Journal reported.

Circle registered with the United States Securities and Exchange Commission (SEC) on April 1 to take the company public. It is now “waiting anxiously” before taking further steps, the Journal reported, citing people familiar with the matter.

Circle joins a growing list of companies considering IPO delays, including fintech company Klarna and ticketing firm StubHub.

Circle’s S-1 registration form for its initial public offering. Source: SEC

Circle is planning to sell its shares under the ticker symbol “CRCL.” Circle’s prospectus materials do not provide details of the number of shares to be offered or the initial stock price.

Circle’s potential delay comes amid turmoil in the stock market as trillions in shareholder value dissipated following Trump’s April 2 announcement of sweeping trade tariffs and investor fears that a protracted trade war could cause a global recession.

Related: Trump ‘Liberation Day’ tariffs create chaos in markets, recession concerns

Trump’s protectionist trade policies crash markets

Trump’s tariff order established a 10% baseline tariff on all countries and reciprocal trade tariffs on countries that tax US imports.

Over $2 trillion was wiped from the US stock market on April 3 as investors pivoted from risk-on assets to less volatile alternatives as a response to the growing macroeconomic uncertainty.

US stocks shed trillions in shareholder value following Trump’s sweeping tariff order. Source: TradingView

The Volatility S&P 500 Index (VIX), a measure of stock market volatility colloquially named the “Wall Street Fear Index,” is currently over 41 — an indication of extreme fear among stock market investors.

Fears of a US recession continue to mount as other countries respond to the Trump administration’s trade policies with counter-tariffs.

ARK Invest founder Cathie Wood voiced concerns over a looming recession prior to the US President signing the tariff order.

“We are worried about a recession. We think the velocity of money is slowing down dramatically,” Wood told an audience gathered for the Digital Asset Summit on March 18.

Magazine: 7 ICO alternatives for blockchain fundraising: Crypto airdrops, IDOs & more

Global payments platform PayPal has expanded its cryptocurrency offerings to include Chainlink (LINK) and Solana (SOL), giving US-based users the ability to buy, sell and transfer the popular tokens. 

Support for LINK and SOL will be rolled out over the next few weeks and will also be extended to users of Venmo, a US mobile payment platform owned by PayPal, the company disclosed on April 4. 

Source: Cointelegraph

Roughly 83 million people used Venmo at least once in 2023, according to the latest available information from PayPal. 

PayPal’s global reach extends to roughly 428 million accounts as of December, the majority of which are in the United States. 

The company’s crypto services are available only to US residents. 

PayPal is expanding its crypto offerings in response to growing consumer demand, according to May Zabaneh, an executive in PayPal’s crypto and blockchain division.

“Offering more tokens on PayPal and Venmo provides users with greater flexibility, choice, and access to digital currencies,” she said.

PayPal’s US crypto offerings now include seven digital assets in total, including its payment stablecoin PayPal USD (PYUSD).

Related: Tabit offers USD insurance policies backed by Bitcoin regulatory capital

PayPal’s stablecoin push

The launch of PYUSD in 2023 solidified PayPal’s entry into the cryptocurrency market. Roughly one year after its launch, PYUSD surpassed $1 billion in total market capitalization for the first time. 

Since then, PYUSD’s circulating supply has fallen to around $760 million, according to industry data. 

PayPal’s US dollar-pegged stablecoin peaked at a market cap of more than $1 billion in August 2024. Source: DefiLlama

To demonstrate the utility of PYUSD, PayPal settled an invoice with global consulting firm Ernst & Young in October for an undisclosed amount.  

At the time, PayPal’s senior vice president of blockchain, Jose Fernandez da Ponte, said “The enterprise environment is very well-suited” for stablecoin payments.

Despite PYUSD’s modest circulating supply compared to stablecoin leaders USDt (USDT) and USDC (USDC), the company’s involvement in the sector cannot be understated, according to Polygon Labs CEO Marc Boiron.

In an interview with Cointelegraph, Boiron credited companies like PayPal and Stripe for catalyzing stablecoin adoption at a time when regulators and enterprises were still uncertain about the technology.

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

Digital asset manager Grayscale registered with the United States Securities and Exchange Commission (SEC) to list the Grayscale Solana (SOL) Trust exchange-traded fund (ETF) on the New York Stock Exchange (NYSE).

The ETF will trade under the ticker symbol “GSOL” and will hold spot SOL as the underlying asset, according to the April 4 S-1 filing.

Grayscale announced plans to convert its existing Grayscale Solana Trust into an ETF in its 19b-4 application filed with the SEC in December 2024.

The filing is among several crypto ETF applications in the United States following a regulatory shift in Washington DC, and Solana is widely expected to be the next digital asset ETF approved by the SEC.

Grayscale Solana Trust ETF S-1 registration form. Source: SEC

Related: Grayscale files S-3 for Digital Large Cap ETF

Solana price slumps despite Trump’s attention

US President Donald Trump in March announced the inclusion of SOL in the country’s first crypto reserve, alongside Bitcoin (BTC), Ether (ETH), XRP (XRP), and Cardano’s native token ADA (ADA).

Digital assets held in the reserve will be acquired through asset forfeiture and may not significantly contribute to demand for SOL or price appreciation.

“A US Crypto Reserve will elevate this critical industry after years of corrupt attacks by the Biden Administration” and include “made in America” cryptocurrencies, Trump wrote in a March 2 Truth Social post.

Following the announcement, SOL’s price declined to multi-week lows and is down approximately 60% since its all-time high of $295 recorded in January 2025.

SOL’s negative price performance reflects a broader downturn in the crypto markets brought on by fears of a prolonged trade war and the Trump administration’s tariff policies.

SOL has preformed poorly amid trade war fears and a broader downturn in risk-on markets. Source: TradingView

Risk-on assets tend to suffer during trade wars as investors flee volatile asset classes for more stable alternatives such as cash and government bonds.

The approval of a Solana ETF could mitigate this price decline by giving traditional financial investors exposure to SOL and funneling capital from the stock market into the altcoin.

Fresh investment capital pouring into SOL may prop up prices during general market downturns, making the altcoin more resilient to price shocks than digital assets lacking traditional investment vehicles.

Magazine: Solana ‘will be a trillion-dollar asset’: Mert Mumtaz, X Hall of Flame