Bitcoin’s (BTC) 7% decline saw the price drop from $88,060 on March 26 to $82,036 on March 29 and led to $158 million in long liquidations. This drop was particularly concerning for bulls, as gold surged to a record high at the same time, undermining Bitcoin’s “digital gold” narrative. However, many experts argue that a Bitcoin rally is imminent as multiple governments take steps to avert an economic crisis.

The ongoing global trade war and spending cuts by the US government are considered temporary setbacks. An apparent silver lining is the expectation that additional liquidity is expected to flow into the markets, which could boost risk-on assets. Analysts believe Bitcoin is well-positioned to benefit from this broader macroeconomic shift.

Source: Mihaimihale

Take, for example, Mihaimihale, an X social platform user who argued that tax cuts and lower interest rates are necessary to “kickstart” the economy, particularly since the previous year’s growth was “propped up” by government spending, which proved unsustainable.

The less favorable macroeconomic environment pushed gold to a record high of $3,087 on March 28, while the US dollar weakened against a basket of foreign currencies, with the DXY Index dropping to 104 from 107.40 a month earlier.

Additionally, the $93 million in net outflows from spot Bitcoin exchange-traded funds (ETFs) on March 28 further weighed on sentiment, as traders acknowledged that even institutional investors are susceptible to selling amid rising recession risks.

US inflation slows amid economic recession fears

The market currently assigns a 50% probability that the US Federal Reserve will cut interest rates to 4% or lower by July 30, up from 46% a month earlier, according to the CME FedWatch tool.

Implied rates for Fed Funds on July 30. Source: CME FedWatch

The crypto market is presently in a “withdrawal phase,” according to Alexandre Vasarhelyi, the founding partner at B2V Crypto. Vasarhelyi noted that recent major announcements, such as the US strategic Bitcoin reserve executive order mark progress in the metric that matters the most: adoption.

Vasarhelyi said real-world asset (RWA) tokenization is a promising trend, but he believes its impact remains limited. “BlackRock’s billion-dollar BUIDL fund is a step forward, but it’s insignificant compared to the $100 trillion bond market.”

Vasarhelyi added:

“Whether Bitcoin’s floor is $77,000 or $65,000 matters little; the story is early-stage growth.”Gold decouples from stocks, bonds and Bitcoin

Experienced traders view a 10% stock market correction as routine. However, some anticipate a decline in “policy uncertainty” by early April, which would reduce the likelihood of a recession or bear market.

Source: WarrenPies

Warren Pies, founder of 3F Research, expects the US administration to soften its stance on tariffs, which could stabilize investor sentiment. This shift may help the S&P 500 stay above its March 13 low of 5,505. However, market volatility remains a factor as economic conditions evolve.

Related: Bitcoin price falls toward range lows, but data shows ‘whales going wild right now’

For some, the fact that gold decoupled from the stock market while Bitcoin succumbed to “extreme fear” is evidence that the digital gold thesis was flawed. However, more experienced investors, including Vasarhelyi, argue that Bitcoin’s weak performance reflects its early-stage adoption rather than a failure of its fundamental qualities.

Vasarhelyi said,

“Legislative shifts pave the way for user-friendly products, trading some of crypto’s flexibility for mainstream appeal. My take is adoption will accelerate, but 2025 remains a foundation year, not a tipping point.”

Analysts view the recent Bitcoin correction as a reaction to recession fears and the temporary tariff war. However, they expect these factors to trigger expansionist measures from central banks, ultimately creating a favorable environment for risk-on assets, including 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.

Prediction market platform Kalshi has filed a lawsuit against the Nevada Gaming Control Board and the New Jersey Division of Gaming Enforcement, following cease and desist orders from both regulators directing the company to halt all sports-related contracts within their states.

Kalshi’s legal team argued that the contracts fall under the jurisdiction of the Commodity Futures Trading Commission (CFTC) and, therefore, cannot be regulated by state-level authorities.

The team also contends that the cease and desist orders fail to recognize that Kalshi’s event contracts are two-sided markets that trade as swaps as opposed to the sports-betting book model where the house controls the market. Kalshi co-founder Tarek Mansour said:

“Prediction markets are a critical innovation of the 21st century, and like all innovations, they are initially misunderstood. We are proud to be the company that has pioneered this technology and stand ready to defend it once again in a court of law.”

Additionally, the Nevada Gaming Control Board sent Kalshi a cease and desist order for its election contracts, which a United States judge ruled were legal in September 2024 — allowing the contracts to trade freely in the US.

Kalshi lawsuit against Nevada Gaming Control Board. Source: Kalshi

Related: Massachusetts subpoenas Robinhood over sports prediction markets

CFTC commits to ending regulation by enforcement

On Feb. 4, acting CFTC director Caroline Pham issued a notice signaling a major regulatory pivot at the CFTC and ending regulation through enforcement actions, choosing to focus on fraud instead.

“The CFTC is strengthening its enforcement program to focus on victims of fraud, as well as remaining vigilant for other violations of law,” Pham said

This major change at the CFTC was welcomed by industry firms as a breath of fresh air following a torrent of regulatory lawsuits and enforcement actions under the Biden administration.

The regulator also initiated a probe into Super Bowl event contracts offered by Kalshi and Crypto.Com on the same day the notice was sent out.

The goal of the CFTC’s probe was to ensure that the Super Bowl event contracts complied with existing derivatives laws in the US, and the CFTC ultimately took no action to ban the contracts.

Magazine: Train AI agents to make better predictions… for token rewards

Prediction market Kalshi filed a lawsuit against the Nevada Gaming Control Board and the New Jersey Division of Gaming Enforcement after both state regulators sent cease and desist orders for the firm to pause all sports-related contracts in the states.

Kalshi’s legal team argued that the contracts fall under the jurisdiction of the Commodities Futures Trading Commission (CFTC) and, therefore, cannot be regulated by state-level authorities.

The team also contends that the cease and desist orders fail to recognize that Kalshi’s event contracts are two-sided markets that trade as swaps as opposed to the sports-betting book model where the house controls the market. Kalshi co-founder Tarek Mansour said:

“Prediction markets are a critical innovation of the 21st century, and like all innovations, they are initially misunderstood. We are proud to be the company that has pioneered this technology and stand ready to defend it once again in a court of law.”

Additionally, the Nevada Gaming Control Board sent Kalshi a cease and desist order for its election contracts, which a United States judge ruled were legal in September 2024 — allowing the contracts to trade freely in the US.

Kalshi lawsuit against Nevada Gaming Control Board. Source: Kalshi

Related: Massachusetts subpoenas Robinhood over sports prediction markets

CFTC commits to ending regulation by enforcement

On Feb 4, acting CFTC director Caroline Pham issued a notice signaling a major regulatory pivot at the CFTC and ending regulation through enforcement actions, choosing to focus on fraud instead.

“The CFTC is strengthening its enforcement program to focus on victims of fraud, as well as remaining vigilant for other violations of law,” Pham said

This major change at the CFTC was welcomed by industry firms as a breath of fresh air following a torrent of regulatory lawsuits and enforcement actions under the Biden administration.

The regulator also initiated a probe into Super Bowl event contracts offered by Kalshi and Crypto.Com on the same day the notice was sent out.

The goal of the CFTC’s probe was to ensure that the Super Bowl event contracts complied with existing derivatives laws in the US, and the CFTC ultimately took no action to ban the contracts.

Magazine: Train AI agents to make better predictions… for token rewards

Opinion by: Alisia Painter, chief operating officer of Botanix Labs

Without Ethereum, the industry wouldn’t be where it is today in terms of bringing decentralized finance (DeFi) to life, making programmability a key feature of blockchains and proving the value of smart contracts at scale. The Ethereum Virtual Machine has become the go-to platform for developers, with the largest ecosystem and tooling.

As DeFi matures, however, it’s worth asking: Is Ethereum the best foundation for the future of financial innovation? Well, the answer might just be Bitcoin.

With nearly $6 billion in total value locked as of March 2025, Bitcoin’s decentralization, liquidity and resilience position it as the natural home for the next era of onchain finance, and while Ethereum’s flexibility has enabled an explosion of experimentation, that same flexibility has come with trade-offs.

From vulnerabilities in smart contracts we’ve seen in big-name hacks to ongoing debates around scalability, Ethereum’s experimental ethos has left cracks in its foundation. By contrast, Bitcoin offers a solid, battle-tested infrastructure where DeFi can flourish sustainably and cross the chasm from degens into mainstream adoption.

Ethereum’s contribution and limitations

Ethereum was responsible for pioneering what we know to be DeFi today. This innovation and development served as a testing ground for what Bitcoin is capable of and can ultimately achieve. Its programmability has empowered developers to create everything from automated lending platforms to sophisticated derivatives. These products exist solely because of Ethereum’s smart contract capabilities.

With that flexibility came serious trade-offs, and we’ve seen them play out in real-time. The DAO hack in 2016 drained $50 million and nearly killed Ethereum in its infancy. The 2022 Wormhole exploit cost $325 million in recent years, and the Ronin Bridge hack took $620 million.

These weren’t just bad luck — they’re the predictable result of Ethereum’s open-ended programmability. Smart contracts are powerful, but they’re also complex. Complexity breeds vulnerability. Solidity simply wasn’t designed with security as the primary consideration.

Recent: Ethereum researcher pitches solution to fix centralization woes, eliminate MEV

At the same time, Ethereum’s scaling challenges have made it increasingly inaccessible. 

Network congestion and gas fees soaring to hundreds of dollars during peak periods have effectively locked out average users. Seasoned users will be very well accustomed to the eye-watering gas fees required just to make basic swaps during times of high network congestion. Layer-2 solutions like Optimism and Arbitrum have made great progress, but they fragment liquidity and introduce their own trust assumptions.

This isn’t to say Ethereum is failing. It’s not. As DeFi matures beyond its experimental phase and becomes more mainstream in global finance, we need to ask whether it makes sense to keep building on this foundation or to consider a more resilient alternative.

Why Bitcoin?

Bitcoin’s design philosophy is radically different. It isn’t a platform for unlimited experimentation; it’s a fortress of stability. Its conservative development ethos and proof-of-work consensus make Bitcoin the most secure blockchain in existence. This security translates into trust — a critical ingredient for DeFi applications handling billions of dollars in value.

Liquidity is another advantage Bitcoin offers. With a market capitalization that dwarfs Ether’s (ETH), Bitcoin (BTC) is the most liquid cryptocurrency, making it an ideal base layer for DeFi. The rise of technologies like Bitcoin’s Lightning Network and sidechains like Spiderchain are already unlocking Bitcoin’s potential for smart contracts, offering the programmability developers need without sacrificing security or scalability.

Not all Bitcoin projects are created equal 

Many so-called Bitcoin L2s and sidechains claim to be “Bitcoin native,” offering applications the promise of leveraging Bitcoin’s intrinsic security properties.

Let’s set the record straight: Many aren’t truly Bitcoin-native.

Without pointing fingers, these projects often rely on custodial multisig setups, bridge Bitcoin to Ethereum or another chain, and then build rollups on top. While there’s nothing inherently wrong with this approach, and there will be use cases that work with this set of trust assumptions, it’s not the same as being natively built on Bitcoin.

True Bitcoin L2s are designed directly on Bitcoin, tapping into its liquidity, security and resilience — qualities that have withstood the test of time. If we want to expand DeFi capabilities, we must build them on Bitcoin. It’s a straightforward ask, but one worth reiterating as we see major players exploring paths that may not fully align with Bitcoin’s potential.

The path forward

The debate shouldn’t be framed as Ethereum versus Bitcoin. That’s a false binary. Ethereum’s innovation-first approach has been crucial in proving what’s possible, and it remains an essential hub of DeFi experimentation. Bitcoin offers something Ethereum doesn’t: a foundation that has already earned the trust of the broader financial world.

Users shouldn’t have to choose between security and functionality. Bitcoin’s resilience is combined with sophisticated financial tools similar to those pioneered by Ethereum. Some of the most exciting work happening now is at this intersection.

For DeFi to fulfill its promise of creating a fair, open and inclusive financial system, it must move beyond its experimental phase. It must be secure enough that average people can use it without fear of losing everything to an exploit. It needs liquidity deep enough to support real-world financial activity. And it requires the kind of institutional trust that only Bitcoin has achieved.

The future of finance will be built on Bitcoin not because Ethereum failed but because Bitcoin provides the foundation that finance demands.

Opinion by: Alisia Painter, chief operating officer of Botanix Labs

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.

Institutional adoption of Bitcoin in the European Union remains sluggish, even as the United States moves forward with landmark cryptocurrency regulations that seek to establish BTC as a national reserve asset.

More than three weeks after President Donald Trump’s March 7 executive order outlined plans to use cryptocurrency seized in criminal cases to create a federal Bitcoin (BTC) reserve, European companies have largely remained silent on the issue.

The stagnation may stem from Europe’s complex regulatory regime, according to Elisenda Fabrega, general counsel at Brickken, a European real-world asset (RWA) tokenization platform.

“European corporate adoption remains limited,” Fabrega told Cointelegraph, adding:

“This hesitation reflects a deeper structural divide, rooted in regulation, institutional signaling and market maturity. Europe has yet to take a definitive stance on Bitcoin as a reserve asset.”

Bitcoin’s economic model favors early adopters, which may pressure more investment firms to consider gaining exposure to BTC. The asset has outperformed most major global assets since Trump’s election despite a recent correction.

Asset performance since Trump’s election victory. Source: Thomas Fahrer

Despite Trump’s executive order, only a small number of European companies have publicly disclosed Bitcoin holdings or crypto services. These include French banking giant BNP Paribas, Swiss firm 21Shares AG, VanEck Europe, Malta-based Jacobi Asset Management and Austrian fintech firm Bitpanda.

A recent Bitpanda survey suggests that European financial institutions may be underestimating crypto investor demand by as much as 30%.

Related: Friday’s US inflation report may catalyze a Bitcoin April rally

Europe’s “fragmented” regulatory landscape lacks clarity

The EU’s slower adoption appears tied to its patchwork of regulations and more conservative investment mandates, analysts at Bitfinex told Cointelegraph. “Europe’s institutional landscape is more fragmented, with regulatory hurdles and conservative investment mandates limiting Bitcoin allocations.”

“Additionally, European pension funds and large asset managers have been slower to adopt Bitcoin exposure due to unclear guidelines and risk aversion,” they added.

Related: Bitcoin ‘more likely’ to hit $110K before $76.5K — Arthur Hayes

Beyond the fragmented regulations, European retail investor appetite and retail participation are generally lower than in the US, according to Iliya Kalchev, dispatch analyst at digital asset investment platform Nexo.

Europe is “generally more conservative in adopting new financial instruments,” the analyst told Cointelegraph, adding:

“This stands in stark contrast to the deep, liquid, and relatively unified US capital market, where the spot Bitcoin ETF rollout was buoyed by strong retail demand and a clear regulatory green light.”

iShares Bitcoin ETP listings. Source: BlackRock

BlackRock, the world’s largest asset manager, launched a Bitcoin exchange-traded product (ETP) in Europe on March 25, a development that may boost institutional confidence among European investors.

Magazine: Bitcoiner sex trap extortion? BTS firm’s blockchain disaster: Asia Express

Institutional adoption of Bitcoin in the European Union remains sluggish, even as the United States moves forward with landmark cryptocurrency regulations that seek to establish BTC as a national reserve asset.

More than three weeks after President Donald Trump’s March 7 executive order outlined plans to use cryptocurrency seized in criminal cases to create a federal Bitcoin (BTC) reserve, European companies have largely remained silent on the issue.

The stagnation may stem from Europe’s complex regulatory regime, according to Elisenda Fabrega, general counsel at Brickken, a European real-world asset (RWA) tokenization platform.

“European corporate adoption remains limited,” Fabrega told Cointelegraph, adding:

“This hesitation reflects a deeper structural divide, rooted in regulation, institutional signaling and market maturity. Europe has yet to take a definitive stance on Bitcoin as a reserve asset.”

Bitcoin’s economic model favors early adopters, which may pressure more investment firms to consider gaining exposure to BTC. The asset has outperformed most major global assets since Trump’s election despite a recent correction.

Asset performance since Trump’s election victory. Source: Thomas Fahrer

Despite Trump’s executive order, only a small number of European companies have publicly disclosed Bitcoin holdings or crypto services. These include French banking giant BNP Paribas, Swiss firm 21Shares AG, VanEck Europe, Malta-based Jacobi Asset Management and Austrian fintech firm Bitpanda.

A recent Bitpanda survey suggests that European financial institutions may be underestimating crypto investor demand by as much as 30%.

Related: Friday’s US inflation report may catalyze a Bitcoin April rally

Europe’s “fragmented” regulatory landscape lacks clarity

The EU’s slower adoption appears tied to its patchwork of regulations and more conservative investment mandates, analysts at Bitfinex told Cointelegraph. “Europe’s institutional landscape is more fragmented, with regulatory hurdles and conservative investment mandates limiting Bitcoin allocations.”

“Additionally, European pension funds and large asset managers have been slower to adopt Bitcoin exposure due to unclear guidelines and risk aversion,” they added.

Related: Bitcoin ‘more likely’ to hit $110K before $76.5K — Arthur Hayes

Beyond the fragmented regulations, European retail investor appetite and retail participation are generally lower than in the US, according to Iliya Kalchev, dispatch analyst at digital asset investment platform Nexo.

Europe is “generally more conservative in adopting new financial instruments,” the analyst told Cointelegraph, adding:

“This stands in stark contrast to the deep, liquid, and relatively unified US capital market, where the spot Bitcoin ETF rollout was buoyed by strong retail demand and a clear regulatory green light.”

iShares Bitcoin ETP listings. Source: BlackRock

BlackRock, the world’s largest asset manager, launched a Bitcoin exchange-traded product (ETP) in Europe on March 25, a development that may boost institutional confidence among European investors.

Magazine: Bitcoiner sex trap extortion? BTS firm’s blockchain disaster: Asia Express

Sonic Labs has canceled plans to launch a US dollar-pegged algorithmic stablecoin, opting instead to develop a United Arab Emirates dirham-denominated alternative.

On March 22, Sonic Labs co-founder Andre Cronje said the company was working on a US dollar-pegged algorithmic stablecoin with an annual percentage rate (APR) of up to 23%, Cointelegraph reported.

However, one week later, the firm reversed course.

“We will no longer be releasing a USD-based algorithmic stablecoin,” Cronje said in a March 28 X post. “Completely unrelated, we will be releasing a mathematically bound numerical Dirham, which is settled and denominated in USD, which is definitely not a USD-based algorithmic stablecoin.”

The shift in strategy comes shortly after the UAE announced it would launch its digital dirham central bank digital currency (CBDC) in the fourth quarter of 2025.

Source: Andre Cronje

Khaled Mohamed Balama, governor of the Central Bank of the UAE, said the blockchain-based dirham could enhance financial stability and help combat financial crime. The digital currency will be accepted alongside its physical counterpart in all payment channels, according to a report from the Khaleej Times.

Related: Paolo Ardoino: Competitors and politicians intend to ‘kill Tether’

Sonic faced criticism over stablecoin plans

The reversal follows widespread criticism of Sonic’s original plan to launch an algorithmic stablecoin — a model that has raised concerns across the crypto industry since the collapse of the Terra ecosystem in 2022.

Cronje himself previously admitted to experiencing Post-traumatic stress disorder (PTSD) related to algorithmic stablecoin due to previous cycles:

“Pretty sure our team cracked algo stable coins today, but previous cycle gave me so much PTSD not sure if we should implement.”

In May 2022, the $40 billion Terra ecosystem collapsed, erasing tens of billions of dollars of value in a matter of days. Terra’s algorithmic stablecoin, TerraUSD (UST), had been yielding an over 20% annual percentage yield (APY) on Anchor Protocol prior to its collapse.

As UST lost its dollar peg, crashing to a low of around $0.30, Terraform Labs co-founder Do Kwon took to X (then Twitter) to share his rescue plan. At the same time, the value of sister token LUNA — once a top 10 crypto project by market capitalization — plunged over 98% to $0.84. LUNA was trading north of $120 in early April 2022.

Related: Tether’s US treasury holdings surpass Canada, Taiwan, ranks 7th globally

The collapse of the algorithmic stablecoin issuer created shockwaves among both crypto investors and lawmakers.

To reduce systemic risk, the European Union’s Markets in Crypto-Assets Regulation (MiCA) bill will prohibit algorithmic stablecoins to avoid another Terra-like failure.

Meanwhile, stablecoins are increasingly being used for smaller, everyday payments rather than large transfers, according to CoinFund managing partner David Pakman.

“We’ve seen a significant decrease in the size of each stablecoin transaction, which points to the fact that they are being used more as payments and less for large transfers,” Pakman said during Cointelegraph’s Chainreaction live show on X on March 27.

Magazine: Ripple says SEC lawsuit ‘over,’ Trump at DAS, and more: Hodler’s Digest, March 16 – 22

The global stablecoin supply could 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

Related: BlackRock Bitcoin ETP ‘key’ for EU adoption despite low inflow expectations

The aggregate stablecoin supply stood at an all-time high of above $208 billion across the five largest stablecoins on March 28, according to Glassnode data.

Stablecoins, aggregate supplies. Source: Glassnode 

“This is the major catalyst that’s been missing for over a decade: a major movement of people’s wealth onchain that brings everyone else on,” added Pakman.

The growing stablecoin supply recently surpassed $219 billion and continues to rise, suggesting that the market is “likely still mid-cycle” as opposed to the top of the bull run, according to IntoTheBlock analysts.

Related: Most EU banks fail to meet rising crypto investor demand — Survey

Stablecoin payment adoption on the rise

Stablecoins use for daily payments is on the rise, illustrating the efficacy of blockchain-based transactions.

“We’re up over 22x in stablecoin volume since 2021,” Pakman said, adding:

“We’ve seen a significant decrease in the size of each stablecoin transaction, which points to the fact that they are being used more as payments and less for large transfers.”

BTC-to-stablecoin ratio. Source: Ki Young Ju

That aligns with recent comments from CryptoQuant founder and CEO Ki Young Ju, who said stablecoins are increasingly being used for remittance payments and as a store of value. However, Ju said stablecoin supply won’t pump Bitcoin’s (BTC) price without additional catalysts.

Magazine: Bitcoin $500K prediction, spot Ether ETF ‘staking issue’— Thomas Fahrer, X Hall of Flame

The New York State Attorney General’s (NAYG) recent legal action against Galaxy Digital over its promotional ties to the now-collapsed cryptocurrency Terra (LUNA) was unfair and an abuse of the legal system, says SkyBridge Capital and founder Anthony Scaramucci.

“It’s LAWFARE, pure and simple due to an obscure but dangerously powerful New York law known as the Martin Act,” Scaramucci said in a March 28 X post.

Martin Law can “open the door for abuse”

“The law has no need to prove intent, creating a low standard of proof that can open the door for abuse like this. It shouldn’t exist,” he said.

New York’s Martin Act is one of the US’s strictest anti-fraud and securities laws, allowing prosecutors the power to pursue financial fraud cases without needing to prove intent. The NAYG alleged that Galaxy Digital violated the Martin Act over its alleged promotion of Terra, with Galaxy Digital agreeing to a $200 million settlement.

According to NAYG documents filed on March 24, Galaxy Digital acquired 18.5 million LUNA tokens at a 30% discount in October 2020, then promoted them before selling them without abiding by disclosure rules. 

Scaramucci reiterated that Galaxy CEO Michael Novogratz was under the impression everything he was saying about Luna was true, as he had been deceived by Terraform Labs and its former CEO, Do Kwon.

Source: Amanda Fischer

Meanwhile, MoonPay president of enterprise, Keith Grossman, said he had never heard of the Martin Act and had to look it up using AI chatbot ChatGPT.

“It is so broad and essentially is the essence of lawfare,” Grossman said. “Sorry you got caught in the crosshairs of it, Mike,” he added.

Related: Sonic unveils high-yield algorithmic stablecoin, reigniting Terra-Luna ‘PTSD’

The filing alleged that Galaxy helped a “little-known” token, referring to LUNA, increase its market price from $0.31 in October 2020 to $119.18 in April 2022 while “profiting in the hundreds of millions of dollars.”

Asset manager and investor Anthony Pompliano said he isn’t familiar with the details of the lawsuit but vouched for Novogratz, calling him a “good man” who has devoted a lot of time and money to helping others.

The Terra collapse is one of the crypto industry’s most infamous failures. In March 2024, SEC attorney Devon Staren said in the US District Court for the Southern District of New York that Terra was a “house of cards” that collapsed for investors in 2022.

Magazine: Arbitrum co-founder skeptical of move to based and native rollups: Steven Goldfeder

Ether’s (ETH) declining appeal as an investment comes from layer-2s draining value from the main network and a lack of community pushback on excessive token creation, a crypto venture capitalist says.

“The #1 cause of this is greedy Eth L2s siphoning value from the L1 and the social consensus that excess token creation was A-OK,” Castle Island Ventures partner Nic Carter said in a March 28 X post.

Ether “died by its own hand”

“ETH was buried in an avalanche of its own tokens. Died by its own hand,” Carter said. He said this in response to Lekker Capital founder Quinn Thompson’s claim that Ether is “completely dead” as an investment.

Source: Quinn Thompson

“A $225 billion market cap network that is seeing declines in transaction activity, user growth and fees/revenues. There is no investment case here. As a network with utility? Yes. As an investment? Absolutely not,” Thompson said in a March 28 X post. 

The ETH/BTC ratio — which shows Ether’s relative strength compared to Bitcoin (BTC) — is sitting at 0.02260, its lowest level in nearly five years, according to TradingView data. 

At the time of publication, Ether is trading at $1,894, down 5.34% over the past seven days, according to CoinMarketCap data.

Ether is down 17.94% over the past 30 days. Source: CoinMarketCap

Meanwhile, Cointelegraph Magazine reported in September 2024 that fee revenue for Ethereum had “collapsed” by 99% over the previous six months as “extractive L2s” absorbed all the users, transactions and fee revenue while contributing nothing to the base layer. 

Around the same time, Cinneamhain Ventures partner Adam Cochran said Based Rollups could solve the issue of Ethereum’s layer-2 networks pulling liquidity and revenue from the blockchain’s base layer.

Cochran said Based Rollups could “directly impact the monetization of Ethereum by making a pretty fundamental change to incentive structures.”

Related: Ethereum futures premium hits 1+ year low — Is it time to buy the ETH bottom?

Despite optimism toward the end of last year about Ether reaching $10,000 in 2025 — especially after reaching $4,000 in December, the same month Bitcoin touched $100,000 for the first time — it has since seen a sharp decline alongside the broader crypto market downturn.

Standard Chartered added to the bearish outlook via a March 17 client letter, which revised down their end of 2025 ETH price estimate from $10,000 to $4,000, a 60% reduction. 

However, several crypto traders, including pseudonymous traders Doctor Profit and Merlijn The Trader, are “insanely bullish” and argue that Ether could be the “best opportunity in the market.”

Source: Merlijn The Trader

Magazine: Arbitrum co-founder skeptical of move to based and native rollups: Steven Goldfeder