Edgen Crypto·Nov 23 2025, 00:31
[1] Overview of Major Overnight Developments on November 23 - Bitget (https://www.bitget.com/news/detail/1256060507 ...)[2] Hacker Minted 1 Billion Tokens, Price Plummets - Bitcoin Sistemi (https://en.bitcoinsistemi.com/breaking-an-alt ...)[3] Cryptocurrency heist hacker returns $260m in funds - BBC (https://www.bbc.com/news/business-58180692 ...)
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Nov 23 2025, 00:33
Large-Scale Ethereum Transfer from Institutional Platform FalconX Spurs Speculation
## Executive Summary On-chain data reveals a significant transfer of 21,537 **Ethereum** (ETH), worth approximately $60.04 million, from the institutional-focused prime brokerage **FalconX** to a newly created wallet. The transaction has drawn attention due to its size and the institutional nature of the source. The identity of the recipient is currently unknown, though market analysts have speculated potential connections to entities such as **Bitmine** or **SharpLink**. This event occurs amid a backdrop of broader institutional withdrawals from the platform and highlights the ongoing trend of large, often opaque, movements of digital assets by major players. ## The Event in Detail According to on-chain monitoring service **OnchainLens**, a new wallet address received the 21,537 ETH in a single transaction. This specific event is part of a larger pattern of outflows from **FalconX**, with data indicating that one address has withdrawn a total of 40,335 ETH (worth over $121 million) in the last three days. **FalconX** operates as a prime brokerage for institutional investors, offering services such as deep liquidity, financing, and trade execution. Such platforms are critical infrastructure for large firms entering the digital asset market. The movement of substantial assets from a prime brokerage can signify several strategic actions, including a large over-the-counter (OTC) trade, a shift in custody strategy, or preparation for future asset deployment or liquidation. ## Market Implications The transfer of a significant amount of ETH to a new, anonymous wallet introduces uncertainty into the market. Such movements can be a precursor to selling pressure if the holder decides to liquidate the position on open exchanges. Conversely, it could represent a long-term holding strategy, effectively removing the supply from the active market. The ambiguity surrounding the wallet holder's intent contributes to potential price volatility for **ETH**. This event is particularly relevant as **Ethereum** trades around key psychological price levels. The $3,000 mark is often seen by investors as a critical benchmark for market sentiment and progress on institutional adoption and regulatory clarity. ## Expert Commentary The psychological importance of key price levels was highlighted by Jim Hwang, COO of crypto investment firm Firinne Capital, in a recent report. While not commenting on this specific transaction, he noted the significance of round numbers for investor heuristics. > "Investors remember these to base their heuristics around what their cost basis is, gains they want to lock in, or losses they don’t want to go below. The $3,000 level for ETH is a bit of a report card by investors assessing the progress that the industry has made on the legislative, regulatory, and institutional adoption fronts." ## Broader Context This transaction underscores the increasing role of institutional players in the cryptocurrency landscape. **FalconX** facilitates this trend, evidenced by its recent partnership with **Ethena** to expand institutional access to the **USDe** stablecoin. The strategic management of large crypto treasuries is becoming more common, as seen in the case of **FG Nexus**, which recently sold ETH to finance a share buyback program. This latest transfer from **FalconX**, however, remains undefined, leaving the market to speculate whether it represents a similar strategic treasury maneuver, a large-scale investment, or preparation for another purpose. The event serves as a reminder of the complex and often non-transparent nature of institutional capital flows within the digital asset economy.
Nov 22 2025, 19:04
Coinbase to Launch 24/7 Altcoin Futures, Introduces Regulated Perpetual-Style Contracts
## Executive Summary **Coinbase Derivatives** has announced a significant expansion of its trading services, set to take effect on December 5. The exchange will introduce 24/7 trading for monthly futures contracts tied to several major altcoins, including **Dogecoin (DOGE)**, **Shiba Inu (SHIB)**, **Cardano (ADA)**, and **Avalanche (AVAX)**. Concurrently, Coinbase is launching a new U.S. Perpetual-Style Futures product. This instrument is designed to offer U.S.-based traders a regulated, capital-efficient method for gaining exposure to cryptocurrency price movements, directly competing with the dominant perpetual futures market found on offshore exchanges. ## The Event in Detail Starting December 5, **Coinbase Derivatives** will extend its continuous trading hours to all its altcoin monthly futures contracts, moving beyond its current offerings for **Bitcoin (BTC)** and **Ether (ETH)**. This development allows U.S. traders to speculate on the price of these altcoins at any time, aligning the exchange’s operating hours with the ceaseless nature of global crypto markets. The expansion aims to increase liquidity and trading volume for the newly included digital assets on a regulated U.S. platform. ## Financial Mechanics of Perpetual-Style Futures Alongside the 24/7 trading expansion, **Coinbase** is launching a novel financial instrument for the U.S. market: the U.S. Perpetual-Style Future. Unlike traditional futures that have a set expiration date, international perpetual futures roll over continuously and have become the most popular crypto derivatives product globally, accounting for over 90% of derivatives trading activity in some reports. To adhere to **CFTC** regulations, Coinbase's version is structured as a long-dated futures contract with a five-year expiration. However, it is engineered to closely track the spot price of the underlying asset, offer leverage, and be cash-settled in U.S. dollars. This structure provides the functional utility of a perpetual future—simplified long-term strategy execution and risk management—within a compliant framework, eliminating the need for U.S. traders to use offshore workarounds. ## Market Implications and Competitive Landscape The introduction of these products marks a strategic push by **Coinbase** to capture a significant share of the crypto derivatives market. By providing a regulated, domestic alternative, the exchange is directly challenging offshore platforms that have long dominated this space. The move also intensifies competition within the U.S., where other regulated exchanges like **Cboe** are also introducing similar "Continuous futures" products to meet demand from both institutional and retail traders. The availability of regulated, perpetual-style contracts is expected to attract a new wave of capital from traders who were previously hesitant to engage with unregulated offshore venues. For the listed altcoins, the inclusion in these futures products is likely to enhance their market legitimacy, liquidity, and price discovery. ## Broader Context This initiative reflects a broader market trend toward developing regulated crypto derivatives in the United States. As regulatory clarity emerges, major financial institutions are creating compliant products that mirror the most successful instruments from the global market. Catherine Clay, Cboe’s head of derivatives, noted that "perpetual-style futures have gained strong adoption in offshore markets," and exchanges are now positioning to serve that demand domestically. This shift provides U.S. investors with greater access to sophisticated trading tools while operating within the established U.S. regulatory and legal frameworks, potentially altering the global distribution of crypto trading volume.
Nov 22 2025, 17:34
Report: $12B in DeFi Liquidity Sits Idle, Highlighting Widespread Inefficiency
## Executive Summary A new report on the state of Decentralized Finance (DeFi) has exposed critical inefficiencies within its core infrastructure, revealing that as much as $12 billion in digital assets lies dormant in liquidity pools. The analysis indicates that between 83% and 95% of all capital supplied to automated market makers (AMMs) is not being actively used for trading. This widespread capital inefficiency is disproportionately impacting retail participants, with data showing that approximately half of all liquidity providers (LPs) are incurring financial losses. ## The Event in Detail The central issue identified is the phenomenon of **impermanent loss**, a risk inherent to providing liquidity in AMMs where the price of deposited assets changes compared to their value if simply held. According to the findings, these potential losses are not being sufficiently compensated by the trading fees earned. The study highlights that roughly 50% of LPs on major platforms like **Uniswap V3** have suffered negative returns, contributing to a collective deficit exceeding $60 million. This problem is exacerbated by what experts describe as fragmented liquidity. Capital is spread thinly across thousands of isolated pools, many of which fail to attract significant trading volume. An OECD report on the matter confirms this high concentration, noting that the vast majority of trading volume occurs in a "tiny fraction" of available liquidity pools, predominantly on the **Ethereum** blockchain. ## Market Implications The report's findings present a significant challenge to the DeFi ecosystem's long-term viability and its appeal to mainstream investors. The high rate of loss among retail LPs could erode confidence and deter new capital from entering the space, thereby limiting growth. Furthermore, the data suggests that the current AMM model, while innovative, is structurally flawed, failing to provide sustainable returns for a large portion of its user base. This inefficiency represents a substantial opportunity cost and a drag on the overall health of the decentralized economy. ## Expert Commentary Financial analysts and protocol developers have pointed to these figures as evidence of an unsustainable model for retail participants. A study conducted by **Bancor**, a decentralized trading protocol, previously corroborated these findings, noting that 49.5% of LPs on Uniswap V3 experienced negative returns due to impermanent loss. In response, some industry experts are championing **concentrated liquidity** as a potential solution. This mechanism allows LPs to allocate their capital within specific price ranges where most trading occurs, rather than across an infinite spectrum. By concentrating liquidity, providers can theoretically improve capital efficiency and earn higher fees from the same amount of assets, offering a more active way to manage risk and potentially mitigate impermanent loss. ## Broader Context This liquidity crisis is symptomatic of a broader structural issue within DeFi: market fragmentation. Even on integrated blockchains, liquidity remains siloed in isolated pools, preventing capital from flowing to where it is most needed. The over-concentration of activity in a handful of protocols and pools indicates a market that is still maturing. As the DeFi sector evolves, addressing these fundamental inefficiencies will be critical for fostering a more stable, efficient, and trustworthy financial ecosystem capable of supporting sophisticated, high-volume trading.