Sonic community members have voted in favor of a wide-ranging plan to expand into the United States and pursue deeper ties with traditional finance, according to an Aug. 31 statement.

According to the network, the proposal passed comfortably after more than 860 million S tokens were cast in support, well above the 700 million quorum level. That figure represented 55% of all staked tokens, reflecting strong engagement across the community.

This approval allows Sonic to direct resources toward launching a US subsidiary, creating an exchange-traded product, and strengthening its balance sheet through new financing structures.

Sonic eyes US presence

The plan establishes Sonic USA LLC, a dedicated entity that will focus on policy, market access, and investor outreach in the US.

The subsidiary has been authorized to issue 150 million tokens and oversee a $100 million private investment in public equity (PIPE) linked to Nasdaq markets.

The proceeds will support balance sheet growth for a listed vehicle and provide liquidity for treasury purchases of S tokens on exchanges and through private deals.

In addition, $50 million has been earmarked for an exchange-traded fund tied to the S token. Sonic intends to work with a regulated ETF provider that manages more than $10 billion in assets, while BitGo will serve as custodian of institutional insurance and security protections.

Tokens allocated to these efforts will remain locked for at least three years, a measure designed to align incentives with long-term investors.

Fee mechanism

Alongside the US expansion, the community endorsed changes to the way fees are distributed on the network.

Under the new framework, 90% of revenue from FeeM transactions will go to builders, 5% to validators, and the remaining 5% will be permanently removed from circulation.

For non-FeeM activity, half will be distributed to validators while the other half will be burned.

By combining revenue redistribution with higher burn rates, Sonic aims to curb inflationary pressure and gradually create a deflationary supply model.

The network supporters argue that the update will reward active participants while preserving long-term value for token holders.

Some also hope these developments will spark an upward swing for the digital asset, which has fallen more than 60% during the past year despite the broader bullish market sentiments.

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Crypto liquidations reached $806.44 million in the past 24 hours, wiping out leveraged positions at a scale not seen in weeks.

The liquidation cascade followed a steep drawdown in prices: Bitcoin fell from an opening level of $114,163 to a close near $111,931, with intraday extremes stretching from $114,373 down to $110,802.

Ethereum mirrored this move, sliding from $4,784 to $4,635, with a trading range between $4,798 and $4,621. Both lost more than 2.5% on the day.

Long positions were hit the hardest. Of the $807.44 million total liquidations, $642.45 million came from longs, compared to $162.4 million from shorts. Bitcoin accounted for $267.85 million of the total, while Ethereum was close behind at $263.41 million.

The near parity between BTC and ETH liquidations shows that speculative interest is still concentrated in these two assets, which made up more than two-thirds of all liquidations in the past 24 hours.

Bybit was the epicenter of forced closures, responsible for $304 million in liquidations, 87% of which were long positions. Binance followed with $209 million in liquidations, again skewed toward longs at over 75%. OKX saw $117 million flushed out, while smaller platforms like Gate and HTX contributed tens of millions more.

Interestingly, Bitfinex and Bitmex were the outliers where short positions dominated liquidations. This tells us that exchange-specific positioning can deviate sharply from the general market.

The scale of long liquidations points to the overextension of bullish leverage at elevated price levels. Traders had been building directional bets on continued strength, especially given Ethereum’s new peak over the weekend. But, when Bitcoin failed to sustain above $114,000 and Ethereum slipped below $4,700, cascading margin calls triggered forced sell orders.

This intensified the downside move and reinforced the feedback loop of liquidation-driven selling pressure. The largest single order during this period occurred on OKX, with a BTC-USDT swap liquidation valued at $12.49 million.

The weight of BTC and ETH is clearly seen in the liquidation heatmap. Together, they accounted for over $530 million in forced closures.

Other large-cap tokens like Solana and Dogecoin were hit as well, though at much smaller magnitudes, reflecting their lower share of speculative leverage.

Altcoins with thinner liquidity pools saw pockets of sharp forced selling, but the dominant theme of the day was the structural unwinding of BTC and ETH leverage.

Ethereum’s rally was just 1.94% below its November 2021 history high of $4,878 before sellers forced a pullback. Currently, Eth USD is trading nearly $4,450 and has retreated after a +29% rise in the last 30 days.

The inability to break through resistance underscores the technical overhang that continues to hold back the upward momentum despite the institutional flow continuing to be the dominant driver of short-term performance.

24 hours7d30D1Yeverytime

The ETF inflow was crushed eight days later after a $3.7 billion win streak – is there an ETH USD leak here?

The rejection coincided with the first net leak from a US spot ether ETF in nine trading sessions.

Farside data shows $59.3 million left the product on Friday, ending an eight-day streak that raised $3.7 billion in BlackRock’s Eta, Fidelity’s Festival and Grayscale’s Ethereum Mini Trust.

(sauce)

Since its launch in July 2024, Spot Ether ETF has raised $12.688 billion in cumulative flows, but the end of the inflow streak introduces new data points for traders considering rally durability. https://cointelegraph.com/news/ether-etf-ustflow-day-inflow-streak-billions-mions-price predictions

ETF flow has become one of the most reliable proxies in ETH for facility positioning. Analysts note that sustained influx is important to tackle the $4,878 ATH ceiling.

Standard Chartered raised its year-end ETH target to $7,500 this week. This is subject to continued strong net ETF demand.

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USD sentiment in reversal of Sharplink loss compounds

https://www.youtube.com/watch?v=uw7qaka7nls

Flow inversion is the shadow of the weak revenue prints of Sharplink Gaming, the second largest Ethereum digital asset financing company.

The company reported a net loss of $133.4 million in the second quarter, causing the stock market to panic, causing a -15% decline in stock.

The approximately $87.8 million hit was marked at a quarterly low price of $2,300 from the non-cash damage fees associated with liquid-stained ETH.

Sharplink’s 728,804 ETH Holdings is now worth more than $3.3 billion, but accounting amplified headline losses and more broadly suppressed sentiment around the Ethereum Treasury.

The confluence of failed breakouts, ETF spills, and sudden paper losses of major financial owners reinforces the importance of institutional demand and accounting in setting up the narrative of near ETH USD, rather than retail markets.

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Ethereum ETFS vs. Treasury accumulation: What drives ETH USD prices?

The ETF reversal highlights the vulnerability of momentum when vehicles within the facility suspend purchases.

But under the surface, the corporate Ethereum Treasury accumulation remains a strong counterweight.

The $103 million loss in Sharplink headline obscured the 728,804 ETH position, now worth $3.3 billion, has been steadily worsened by stakeholder rewards.

With its current yield of 3.4%, Sharplink has already booked more than 1,300 ETH this year with rewards, an organic influx that mitigates the valuation shock.

Other treasury companies have quietly expanded their exposure with BTCS Inc. and Defi Development Corp. adding reserves in the second quarter.

The block estimates that public companies holding ETH have a cumulative market capitalization of more than $10 billion, marking Ethereum’s arrival as a financial asset class in itself.

This is structurally important. ETF demand is flow-driven and responsive to emotions, but Treasury allocations are sticky, repeated, and often tied to behavioral models on Defi infrastructure, games, or tokenized yield platforms.

While ETF outflows highlight short-term sentiments, parallel growth in the Treasury balance sheet shows a strategic layer of demand that is not sensitive to everyday price fluctuations

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ETH USD price analysis: Where does Ethereum prices go from here?

As ETHD is reeling out of rejection of the ATH resistance, Ethereum is currently trading at a market price of $4,397 (representing a 24-hour change of -0.95%).

After losing more scaffolding around $4,490, it appears ETH USD price action will likely test historic support low at a price level of $4,115.

(ethusd)

To bolster this case, the steadily rising 20DMA appears to be intended to converge with this low level of support in the coming days. In particular, 20DMA support has not been tested by ETH USD for 10 days. In other words, there was no moving average support for ETF influx over the past 8 days.

Successful integration at this level appears likely to trigger a second retest of the ATH resistor this week. After all, prices are rarely rejected entirely from the initial resistance test.

Such a move is enhanced by confidence from a decrease in RSI. The RSI has been overheating with strong bear signals for several days.

ETH USD could be caught with established support of about $3,750 if a failure occurs.

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04 August Bitfinex alpha | BTC integrates and leverages drops as the market is waiting for a catalyst

Bitcoin has crucially destroyed local range support at $115,800, reaching its $112,210 low after multiple retests over the past three weeks. This failure coincides with the wider risk across the entire crypto complex, especially in altcoins where leverage was actively constructed. The other indexes represent the broader Altcoin market, but they excluded the top 10 coins by market capitalization, resulting in a drawdown of 18.7% over the last 10 days, eliminating nearly $59 billion in market capitalization before rebounding on Sunday.

This surrender phase peaked on August 2nd, with daily liquidation exceeding $1 billion. BTC and ETH were leading the liquidation volume, but Altcoins experienced a deeper drawdown in 2025 with a total crypto liquidation marking one of the most offensive rewinds. Despite the high betty nature of Altcoins, even key assets like ETH reduced the week by 9.7%, while the Broader Others Index fell 11.4%. Just a few names like ENA and Pengu highlight how limited capital turnover has turned amid increased macro pressure and reduced risk.

Structurally, BTC still holds a relative strength position with a market capitalization of over $2.2 trillion. This postpones the 2021 cycle peak, but ETH and Altcoins are below previous highs. This difference highlights the role of BTC as an institutionally driven asset for macroresidents, in contrast to the speculative vulnerability of the broader market. As ETF flows cool, Fed policies turn into more takis and risk appetite declines, consolidation or further downsides are expected, unless aggressive spot buying is re-emerged. The technical bounce from the $112,000 area is plausible, but the broader recovery could be dependent on facility flows or updated demand via clear macrocatalysts.

Latest economic data from the US highlights the growing vulnerability under seemingly resilient headline figures. The June inflation report revealed enduring price pressures driven primarily by new tariffs that reduced the costs of goods, such as furniture, clothing and recreational items.

Personal Consumption Expenses (PCE) rose modestly, but actual consumer spending was hardly moving. This indicates that inflation is undermining purchasing power. Wage growth has softened, with GDP rising by 3% in the second quarter, much of which is due to a sharp decline in imports, increasing weak domestic demand.

Excluding trade and inventory, actual GDP rose by just 1.2%, referring to a stagnant business investment and slowing consumer activity. Meanwhile, the July employment report has been added to the darkness. Employment slowed to just 73,000 new jobs, unemployment rates tickled at up to 4.2%, and workforce participation continued to decline. Despite the seasonal tailwinds, sectors such as construction and hospitality had declined in performance, but the decline in foreign-born workers reflected resistance to tightening immigration policies. These trends collectively complicate the Federal Reserve policy outlook. With the stickiness of inflation and declining labor force, the Fed is likely to slow down speed cuts, waiting for a more clear signal before adjusting its stance. In parallel, the crypto industry has experienced a strong revival of institutional engagement, characterized by bold Treasury allocations and reorganisation of regulatory authorities. Sharplink Gaming has created headlines with ETH’s $295 million purchase, increasing its total holdings by over 438,000, establishing it as the world’s second largest corporate holder. The company’s aggressive capital deployment and staking strategy, supported by Ethereum co-founder Joseph Lubin and former BlackRock executives, reflects the growing institutional convictions as a financial asset for ETH. Meanwhile, regulatory momentum has also been built. SEC Chairman Paul Atkins has launched Project Crypto, a drastic initiative to modernize the US digital asset framework. The initiative, which moves away from the highly-enforced agency past, promises clarity in token classification, enables authorized cryptography to “super apps,” encourages traditional tokenized finance, and recovers the potential of US leadership in digital innovation. Finally, DeVVStream, a NASDAQ-registered carbon credit company, has announced a $10 million allocation to Bitcoin and Solana as part of its Sustainable Cryptocurrency Program. Funded by the $300 million Convertible Notrease, the move combines financial strategy with environmental impact, highlighting Crypto’s integration into an increasingly diversified corporate finance model. Together, these developments demonstrate mature digital asset spaces that are increasingly aligned with both facility capital and forward-looking regulatory frameworks.

]]> https://earlybirdsinvest.com/bitfinex-alpha-btc-integrates-and-leverages-drops-as-the-market-is-waiting-for-a-catalyst/feed/ 0 51487 https://earlybirdsinvest.com/tron-volume-jumps-44-sui-drops-5-pi-suffers-unlock-altcoin-season-in-flux/ https://earlybirdsinvest.com/tron-volume-jumps-44-sui-drops-5-pi-suffers-unlock-altcoin-season-in-flux/#respond Fri, 01 Aug 2025 18:42:37 +0000 https://earlybirdsinvest.com/tron-volume-jumps-44-sui-drops-5-pi-suffers-unlock-altcoin-season-in-flux/

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Hongji Feng

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Hongji Feng

About Author

Hongji is a reporter who covers crypto, finance, and tech. He graduated from Northwestern University’s Medill School of Journalism with a Bachelor’s and a Master’s. He has previously interned at HTX,…

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Last updated: 

August 1, 2025

The crypto market enters August 2025 with mixed interpretations about whether an altcoin season is taking shape.

While Bitcoin remains near its recent highs, some traders are shifting attention toward projects like Tron, Sui, and Pi Coin. Each shows contrasting price action and sentiment, making them part of the debate over the durability of the current altseason trend.

Tron: Steady Growth With Utility

Tron (TRX) has maintained steady traction in recent weeks. The Tron price is around $0.32, according to CoinMarketCap, with a market cap of about $31 billion and daily trading volume of nearly $1.54 billion, up by 44% within the past 24 hours.

July trading showed a stable range between $0.28 and $0.33. This consolidation suggests steady demand despite market volatility. Analysts cite Tron’s DeFi footprint and lower supply compared to competitors as reasons why it continues to attract flows during periods when altcoin season activity rises.

Whale accumulation and consistent activity across Tron’s DeFi applications add to the case for continued relevance. Some research outlets have pointed to its ability to maintain liquidity and support ecosystem projects, which has allowed TRX to stay in the conversation despite stronger competition from the Ethereum and Solana ecosystems.

Sui: Growth Meets Recent Pullback

The Sui price currently sits near $3.58, supported by a market cap of about $12.3 billion and daily trading volume exceeding $2.4 billion. Data shows a modest pullback of about 5% over the past 24 hours, after a month of strong inflows.

Sui Price (Source: CoinMarketCap)

Sui’s object‑based design and parallel execution continue to set it apart among Layer‑1 protocols. On‑chain adoption in DeFi and GameFi has supported TVL growth, though recent price softness has tempered short‑term sentiment. LunarCrush metrics earlier in July showed strong social engagement, reinforcing that traders continue to monitor SUI closely despite the decline.

Analysts suggest late‑2025 could prove important if upcoming integrations and ecosystem expansions deliver new user activity. For now, Sui represents an asset with utility and traction but is facing pressure from broader market sentiment.

Pi Coin: Supply Concerns Pressure Sentiment

The Pi Coin price is trading around $0.4, with recent reports pointing to downward pressure following a July supply unlock.

Pi’s daily volumes remain low compared to Tron and Sui, indicating weaker liquidity. Analysts note that a 17% drop in July coincided with a token unlock event of about 160 million PI, raising concerns about further dilution.

Investor sentiment remains cautious. Without clear use cases or robust DeFi integration, Pi’s price action suggests it is more dependent on community participation and speculative cycles than underlying protocol adoption.

Altcoin Season or Market Pause?

The Altcoin Season Index remains 36, meaning that Bitcoin continues to outperform most altcoins. Yet the steady performance of Tron, the active though volatile market for Sui, and the ongoing debate over Pi Coin show that interest in mid‑cap assets persists.

Some traders argue that altseason requires a broader rotation into tokens like these. Others believe current conditions represent selective trading rather than a full cycle.

Whether this develops into a sustained altcoin season remains uncertain. Tron offers steady liquidity and usage, Sui continues to build out infrastructure despite recent declines, and Pi Coin reflects the risks of supply shocks.

Together, these tokens capture the range of outcomes possible in an altseason: steady performers, growing platforms, and speculative risks. For traders, they illustrate how the cycle can extend beyond Bitcoin—even if the breadth of participation remains limited.

The developers behind Samourai Wallet pleaded guilty to a single count of conspiracy to operate an unlicensed money‑transmitting business.

The plea deal secures dismissal of the parallel money laundering conspiracy charge and caps potential prison time at five years. It also includes $237 million in forfeiture and a $400,000 fine.

As journalist Matthew Russell Lee reported on July 30, sentencing is set for November 6. Additionally, the defendants agreed not to appeal if the sentence is five years or less, according to Bitcoin Policy Institute’s head of policy, Zack Shapiro.

Plea deal

Lee reported that Judge Jed Rakoff pressed Keonne Rodriguez to state his criminal conduct “in his own words.”

Rodriguez told the court that his role at the firm meant that he was aware users were using the wallet “to launder criminals’ money.” Prosecutors argued that the knowledge alone is sufficient for a 60 month sentence even if they were not involved in the laundering.

Shapiro noted that had both counts gone to verdict, combined federal guidelines would have pointed to 160 to 210 months. By pleading to the unlicensed transmission conspiracy under 18 U.S.C. § 1960, the developers face a statutory maximum of five years rather than a potential decade-plus exposure.

Defense‑side reaction framed the outcome as a pragmatic hedge rather than a legal endorsement of the US Department of Justice’s (DOJ) theory.

Amanda Tuminelli, executive director and CLO at the DeFi Education Fund argued that the DOJ “misinterprets Section 1960 whenever they accuse a non‑custodial software dev of ‘transferring funds on behalf of the public,’”

Tuminelli added that the pleas don’t change the policy fight over how the law should apply to open‑source wallet software. She said:

“Plea deals are risk calculations.”

Case background

US and international authorities shuttered Samourai on April 24, seizing its domain and web infrastructure in collaboration with the Icelandic and Portuguese police, the IRS, the FBI, and Europol.

The authorities also issued a warrant that removed the Android app from Google Play for US users.

Prosecutors alleged founders Keonne Rodriguez and William Lonergan Hill ran a mixing service through Samourai that processed more than $2 billion in Bitcoin tied to illicit activity, including $100 million linked to dark‑web markets. 

The app, one of the best‑known privacy‑focused Bitcoin wallets, had been downloaded over 100,000 times.

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