Ethereal Mainnet, Aave Acquisition, MegaETH ICO Headline Active Crypto Market

The Week in Crypto Markets

The cryptocurrency market has seen significant activity with several key developments. Ethereal launched its mainnet, while Aave Labs completed the acquisition of Stable Finance. Concurrently, MegaETH unveiled details for its initial coin offering, and Pendle announced revisions to its vePENDLE airdrop distribution mechanism.

Ethereal Mainnet Alpha Commences with Airdrop Incentives

The Ethereal Mainnet Alpha went live on October 20, 2025, with initial access granted to the top 100 users on its mainnet waitlist. Eligibility for waitlist positioning was determined by Season Zero participation, referral activity, and DeFi wallet metrics. The platform intends to whitelist additional users as the rollout progresses. Season One: Epoch 1 has concluded, and Epoch 2 is currently underway, featuring weekly point distributions. Whitelisted users are eligible to earn native USDe rewards on their full margin balance and Ethereal airdrop points based on trading activity during Epoch 2. Points can be accumulated through trading, holding USDe margin, or referrals. Ethereal operates as a decentralized spot and perpetual trading platform built on the Ethena Network, utilizing USDe as collateral. This launch occurred during a period where Bitcoin reclaimed the $110,000 mark, and the broader crypto market capitalization surpassed $3.8 trillion, highlighting the prevailing bullish sentiment.

Aave Labs Acquires Stable Finance to Bolster Consumer DeFi Offerings

On October 23, 2025, Aave Labs officially announced the acquisition of Stable Finance, a fintech startup specializing in consumer-facing DeFi solutions. This strategic move aims to integrate Stable Finance's technology and team into the Aave ecosystem, thereby simplifying on-chain savings and enhancing user experience. Stable Finance founder Mario Baxter Cabrera and its engineering team will join Aave Labs. The acquisition seeks to "transform on-chain finance into everyday finance" by streamlining access to stablecoin yield strategies. Stable Finance was recognized for its mobile application, which facilitated fiat or cryptocurrency deposits for earning interest through automated stablecoin yield strategies. Reports indicate Stable Finance handled up to $38 billion in deposits and offered yields as high as 16.52 percent. The existing Stable Finance application will be phased out, with its core technology and design principles integrated into future Aave Labs consumer product developments. This initiative is expected to bridge the gap between complex blockchain infrastructure and everyday financial activities. Concurrently, Aave v3's total value locked (TVL) reached a record $26.09 billion, generating daily fees between $2 million and $4 million.

MegaETH Unveils Public Auction Details for Token Sale

MegaETH has released details regarding its public auction, which will offer 5% of its total token supply through an English auction conducted on Sonar by Echo. The auction is scheduled to run from October 27 to October 30. Bidding will commence at a $1 million Fully Diluted Valuation (FDV) and is capped at $999 million. Participants can place bids ranging from $2,650 to $186,282 in USDT. An optional one-year lockup period is available for bidders, which provides a 10% discount; this lockup is mandatory for accredited U.S. investors. The MEGA-USD premarket perpetual on Hyperliquid currently prices $MEGA at a $5 billion FDV, reflecting $17 million in trading volume over the past 24 hours. Polymarket forecasts an 89% probability that MEGA will trade above a $2 billion FDV and a 50% chance it will surpass $4 billion FDV within 24 hours post-launch.

Pendle Adjusts vePENDLE Airdrop Mechanism

Pendle has announced an update to its vePENDLE airdrop distribution mechanism. The previously communicated fixed monthly airdrop plan for vePENDLE holders, set from February to June 2025, will no longer be in effect. Under the revised system, vePENDLE holders will receive continuous airdrops based on the actual rewards accumulated by the protocol and their proportional vePENDLE holdings, including vePENDLE held in Liquid Locker. Monthly snapshots for distribution will occur at 08:00 on the 20th of each month, with distributions following the receipt of rewards. This updated mechanism aims to ensure that vePENDLE holders directly benefit from the revenue generated by the protocol's growth and the increasing diversity of supported asset types.

Broader Market Context and Implications

These recent developments collectively highlight the ongoing expansion and increasing sophistication within the decentralized finance landscape. The launch of Ethereal's Mainnet Alpha and its incentive structures, such as USDe rewards and airdrop points, signal a continued focus on fostering user engagement and liquidity in new DeFi protocols. This aligns with broader market trends where Ethereum's TVL surged to $362.7 billion in October 2025, marking an 11.5x increase from its 2022 post-Merge low. Ethereum continues to dominate the DeFi ecosystem, holding 59% of global DeFi TVL and $161.1 billion in stablecoin value. Technical enhancements like Spectra and the growth of liquid staking protocols such as Lido and EigenLayer further solidify Ethereum's position as a secure settlement layer.

Aave Labs' acquisition of Stable Finance exemplifies a strategic pivot towards enhancing user accessibility and streamlining the entry points for retail users into complex DeFi yield opportunities. This move, aimed at transforming "on-chain finance into everyday finance," underscores a crucial evolution in the industry to bridge the gap between blockchain infrastructure and conventional financial activities, drawing parallels to the retail focus seen in traditional finance. The reported $38 billion in deposits and yields up to 16.52 percent by Stable Finance prior to acquisition demonstrate significant market demand for such accessible products. The robust Aave v3 TVL and daily fee generation further validate this strategic direction.

Meanwhile, the MegaETH ICO, structured as an English auction with a notable $5 billion FDV pre-market valuation and significant trading volume, reflects a growing appetite from both institutional and sophisticated retail investors for innovative token offerings within the Web3 ecosystem. The high forecasted valuations suggest strong market confidence in emerging projects. Pendle's adjustment to its airdrop mechanism also indicates an adaptive approach to tokenomics, focusing on aligning long-term incentives with protocol health and ensuring proportional reward distribution to token holders. Collectively, these events, supported by bullish market sentiment and substantial capital inflows, suggest a maturing crypto market that values both innovation and accessible financial products.