Ethereum (ETH) registered significant improvements in the second quarter, including increased inflows of exchange-traded funds (ETFs), layer-2 activity, and liquidity, which enhance the prospects for the third quarter.

According to the “Charting Crypto Q3 2025” report by Coinbase and Glassnode, US-traded spot Ethereum ETFs captured $1.7 billion in net inflows last quarter, overturning the prior period’s outflows.

Institutional flows flip positive

Furthermore, layer‑2 throughput climbed 7%, while average user fees dropped 39%. This was followed by an 8% increase in liquid supply, while long‑dormant balances shrank 6%.

As a result of the improvements seen last quarter, the share of ETH held at a profit increased from under 40% to nearly 90%. Additionally, the total value locked on Ethereum reached $ 63.2 billion.

The improvements are also registered in the derivatives market, where daily perpetual futures turnover averaged $51.4 billion, up 56% quarter‑over‑quarter.

Aggregate inflows erased a first‑quarter $200 million leak and restored momentum for managers positioning ETH as the market’s second large‑cap crypto. 

Futures open interest totaled $14.5 billion on June 30 despite a 6.9% quarterly pullback, highlighting deeper liquidity across regulated venues. 

Meanwhile, options open interest stood at $ 5.3 billion, with derivatives desks also logging an 11% uptick in term‑futures volume, signaling growing hedging appetite.

Network activity and economics

Developers and users benefited from a 39% decline in base layer fees as rollups absorbed more transactions, sharpening the economics of on‑chain application deployment. 

At the same time, Ethereum’s inflation rate remained modest, at approximately 0.75% annualized. This cushioned long-term supply pressure. 

Staked ETH continued to climb, and the report plotted both total staked value and the associated annual yield among its core fundamentals tables.

On-chain analytics show that holders used the second-quarter price recovery to reposition. Liquid coins, defined as those moved within 90 days, rose 8%, whereas coins untouched for more than a year fell 6%.

This indicated controlled profit‑taking rather than wholesale distribution. ETH’s Net Unrealized Profit/Loss flipped from capitulation to optimism between the first and second quarters, aligning with market‑cycle models that track investor sentiment shifts. 

The pool of coins sitting below cost plummeted from more than 40 million to fewer than 10 million over the same period.

DeFi collateral base and market share

Ethereum’s $63 billion total value locked (TVL) in the DeFi ecosystem is spread across lending, decentralized exchanges, and yield farming protocols. 

Ether also expanded its slice of total crypto market capitalization alongside Bitcoin and Solana as investors rotated toward perceived blue‑chip assets.

Perpetual swap funding rates, tracked alongside Bitcoin and Solana, remained neutral to positive through late June, suggesting balanced speculative positioning rather than froth.

However, the report cautioned that sustained ETF inflows and favorable fee conditions must persist to maintain the second-quarter constructive backdrop. 

Nevertheless, it noted that Ethereum now enters the third quarter with stronger institutional sponsorship, lower transaction costs, and a healthier on-chain profit profile.

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April 23rd Bitfinex will begin supporting USDT0 on optimism

Road Town, Tortola, British Virgin Islands – 23rd April 2025 – Bitfinex (https://www.bitfinex.com), a premier digital asset trading platform, has announced that USDT0 deposits and withdrawals on the Optimism Network will be available directly on Bitfinex.

USDT0, a Crosschain Stablecoin designed by Everdawn and Layer Zero, is an Omnichain-enabled bridge version of Tether’s USDT. This integration will make optimism the latest blockchain supported by Bitfinex, allowing its customers to deposit USDT0 into this network and withdraw it, following a similar integration between Ink and Arbitrum.

Optimism is Ethereum’s Layer 2 Scaling Solution that leverages optimistic roll-up technology to enhance transaction throughput and reduce fees. Recent SuperChain data shows that OP SuperChain currently handles around 52% of all transactions in Ethereum’s Layer 2 (L2) compared to 36.6% in September, but its total value over the network (TVL) is over $4.2 billion.

Developed by Everdawn and Layer Zero, USDT0 is managed by the USDT0 Consortium, an ecosystem initiative launched by the consortium using Layerzero’s OFT standard, and is designed to expand the USDT utility across the blockchain. Bitfinex customers will convert USDT balance directly to USDT0 on the platform and pull it out onto a supported blockchain.

Designed for seamless interoperability on the Optimism Network, Bitfinex’s USDT0 support on the Optimism Network is the latest addition to the Stablecoin rollout. This integration demonstrates Bitfinex’s response to current market demand by increasing Stablecoin’s liquidity and trading efficiency on high-performance L2 platforms.

“USDT0 is one of the most innovative stubcoins on the market and is consistent with its mission to bring digital assets closer to everyday use,” he said. Anoush Bhasin, Bitfinex listing manager. “USDT0’s support for optimism opens up a direct channel to help customers enjoy fast, cost-effective transactions in a scalable ecosystem.”

For more information, customers can visit https://www.bitfinex.com/.

Please note that USDT0 is not directly issued or redemptionable by tether.

*All users of www.bitfinex.com are subject to Bitfinex Terms of Service (“TOS”). Please note that among other prohibited persons (as defined in TOS), US people (as defined in TOS) are strictly prohibited from directly or indirectly retaining, owning or operating an account on www.bitfinex.com (as defined in TOS).

About Bitfinex

Founded in 2012, Bitfinex is a digital token trading platform that provides cutting-edge services for traders and global liquidity providers. In addition to a range of advanced trading capabilities and charting tools, Bitfinex offers access to peer-to-peer financing, the OTC market and margin trading for a wide selection of digital tokens. Bitfinex’s strategy focuses on providing unparalleled support, tools and innovation to experienced traders and liquidity providers around the world. For more information, please visit www.bitfinex.com.

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]]> https://earlybirdsinvest.com/bitfinex-will-begin-supporting-usdt0-on-optimism/feed/ 0 32672 https://earlybirdsinvest.com/france-central-bank-governor-says-trump-is-sowing-the-seeds-of-future-upheavals-by-supporting-crypto/ https://earlybirdsinvest.com/france-central-bank-governor-says-trump-is-sowing-the-seeds-of-future-upheavals-by-supporting-crypto/#respond Mon, 17 Mar 2025 02:40:06 +0000 https://earlybirdsinvest.com/france-central-bank-governor-says-trump-is-sowing-the-seeds-of-future-upheavals-by-supporting-crypto/

Francois Villeroy de Galhau, the governor of Banque de France and the European Central Bank Governing Council’s member, believes U.S. president Donald Trump is making a huge mistake by supporting cryptocurrencies.

In an interview with French weekly La Tribune Dimanche, Villeroy de Galhau said that the U.S. might be paving the way for the next financial crisis by embracing cryptocurrencies and non-bank finance. He said that, “The United States risks sinning through negligence,” adding that:

“Financial crises often originate in the United States and spread to the rest of the world. By encouraging crypto-assets and non-bank finance, the American administration is sowing the seeds of future upheavals.”

Three of the five biggest financial crises emerged in the U.S. This includes The Great Depression, triggered by the Wall Street crash in 1929, the OPEC Oil Price Shock of 1973, when members of the Organization of the Petroleum Exporting Countries halted oil exports to the U.S., and the Great Recession that was triggered by the collapse of the U.S. housing market bubble.

Villeroy de Galhau has been openly critical of Trump’s policies

Villeroy de Galhau was one of the first economists to voice his concerns about Trump and his policies, even before Trump’s inauguration in January. On Jan. 15, he said:

“I believe that what we sometimes hear in the United States about the lack of regulation of non-banks, the various funds (…) or the lack of regulation of crypto-assets is something that would put financial stability at risk.”

Earlier this week, Villeroy de Galhau said that Trump’s trade wars and economic policy is a “tragedy for the American economy.”

Villeroy de Galhau is not alone in his criticism. German central bank chief Joachim Nagel recently called it “economic policy from a horror show.”

Deregulation in the U.S. is “dangerous”

Since Trump has come into power, there has been a marked shift in how the administration deals with digital assets. For instance, the Securities and Exchange Commission (SEC) has dropped major cases against crypto exchanges, including Coinbase.

Trump has also created a crypto strategic reserve, whereby the U.S. will stockpile tokens like Bitcoin (BTC) and Ethereum (ETH).

Villeroy de Galhau believes that the “current wave of American deregulation is dangerous.”

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