ETH comeback fueled by bots, stablecoins

June 05, 2025

Reading time: 5 minutes

Ethereum rebounds in DeFi race as Foundation tightens strategy

Key points:

  • Ethereum processed $480B in stablecoin volume in May, regaining DeFi traction through bot-driven activity and lower fees.

  • The Ethereum Foundation launched a new treasury policy, tightening spending and pledging stronger support for DeFi via "Defipunk" principles.

News - Ethereum is regaining its dominance in the decentralized finance (DeFi) landscape, driven by a spike in bot-led stablecoin activity and a fresh strategic overhaul by the Ethereum Foundation (EF).

In May 2025, Ethereum saw 4.84 million stablecoin transfers on its Layer-1 network, totaling a record $480 billion in volume. CEX.io analysts attributed this resurgence to lower gas fees in Q1, which reversed a long-standing trend of liquidity shifting to Ethereum Layer-2s and rival chains. USDC emerged as the most-traded asset, with stablecoin swaps accounting for over 30% of all Ethereum DEX volume.

This momentum coincides with the EF’s announcement of a revamped treasury policy aimed at bolstering DeFi alignment while improving financial transparency. The policy introduces strict ETH sales triggers based on a 2.5-year fiat runway, reduces annual spend targets from 15% to 5% by 2030, and formalizes quarterly reporting.

Defipunk ethos and real-world utility - In a philosophical shift, the Foundation embraced a "Defipunk" framework, its modern take on cypherpunk principles, to guide its DeFi treasury allocations. Already, the EF has deployed 45,000 ETH into protocols like Aave, Spark, and Compound.

Meanwhile, analysts like CEX.io’s Illia Otychenko see Ethereum’s stablecoin dominance as a lasting pivot toward real-world utility. But fragmentation across L1 and L2 liquidity could still pose risks if left unresolved.

Institutions turn to ETH ETFs - Underscoring Ethereum’s growing credibility, institutional interest in ETH ETFs is rising. Advisors now hold over $582 million in ETH exposure, with total institutional ETH ETF allocations surpassing $1 billion, a positive signal for broader adoption.

Together, stablecoin utility, treasury discipline, and ETF traction mark a pivotal moment for Ethereum’s next chapter in DeFi.

Darknet marketplace busted: BidenCash’s $17M empire seized

Key points:

  • U.S. authorities shut down 145 domains tied to BidenCash and seized crypto linked to over 15 million stolen cards.

  • Despite the takedown, several active domains remain, showing the persistent threat of darknet networks.

News - The U.S. Department of Justice, along with the FBI and Secret Service, has seized 145 domains and an undisclosed amount of cryptocurrency linked to BidenCash, a notorious darknet marketplace that trafficked in stolen credit card data and personal information. The marketplace reportedly generated over $17 million in revenue and served more than 117,000 users before being dismantled.

Originally launched in March 2022, BidenCash openly sold stolen card details, login credentials, and even server access. In one of its most aggressive promotions, the platform released 3.3 million stolen credit card records for free between October 2022 and February 2023 to attract more users.

Seized domains now redirect to law enforcement-controlled pages displaying the emblems of the DOJ, FBI, Secret Service, and Dutch cybercrime units. While the exact amount of crypto seized was not disclosed, Arkham Intelligence data suggests roughly $43,000 in USDT may have been recovered.

Criminal resilience amid crackdowns - Even after this high-profile takedown, cybersecurity analysts have flagged several still-active BidenCash domains, underscoring the resilience of darknet operations. Tools like domainhunter.pro have tracked at least seven functioning addresses.

This operation follows a broader global crackdown on crypto-fueled darknet activity. Last month’s Operation RapTor saw 270 arrests and $200 million seized across 10 countries, including significant crypto holdings.

Crypto and crime: An ongoing battle - The BidenCash case adds to growing concerns over the role of digital assets in facilitating financial crime. With darknet marketplaces raking in over $1.7 billion in revenue last year, according to TRM Labs, authorities face mounting pressure to disrupt these evolving networks more effectively.

French crypto crime kingpin caught in Morocco

Key points:

  • A 24-year-old French-Moroccan man was arrested in Tangier for orchestrating a wave of crypto-related kidnappings in France.

  • Victims included Ledger’s co-founder and Paymium CEO’s family, prompting France to boost executive protections.

News - In a breakthrough cross-border sting, Moroccan authorities have arrested Badiss Mohamed Amide Bajjou, the alleged ringleader behind a string of crypto-related kidnappings in France. Acting on a request from French officials and an Interpol Red Notice, Moroccan national police and intelligence services detained the 24-year-old in Tangier. He was reportedly carrying multiple mobile phones and bladed weapons at the time of arrest.

France’s Justice Minister Gérald Darmanin praised the operation, calling it “a testament to the strong judicial cooperation between our two countries.” Bajjou had been wanted for organized extortion, kidnapping, and violence.

Kidnap spree targets French crypto figures - Bajjou is accused of masterminding several high-profile abductions, including the May 13 attempted kidnapping of the pregnant daughter and grandson of Paymium CEO Pierre Noizat. Surveillance footage showed bystanders helping thwart the attack in broad daylight.

Earlier in May, the father of a crypto millionaire was kidnapped in Paris in a separate €7.8 million ransom plot. Back in January, Ledger co-founder David Balland and his wife were abducted from their home, one of the most alarming cases in France’s growing crypto crime wave.

According to Le Monde, French police have already charged 25 suspects in connection to these plots, including six minors, with most between the ages of 16 and 23.

Growing global risk for crypto wealth - Authorities are now ramping up protective measures for crypto entrepreneurs and their families, offering safety briefings, priority emergency access, and home security audits.

Meanwhile, wrench attacks, physical assaults targeting crypto holders, are on the rise worldwide. In 2025 alone, at least 29 incidents have been reported, nearly matching all of 2024, according to Bitcoin security expert Jameson Lopp.

Circle's IPO hits $1.1B, valuation soars to $6.9B

Key points:

  • Circle raised $1.1 billion in its upsized IPO, pricing 34 million shares at $31 each.

  • The stablecoin issuer will debut on the NYSE under ticker “CRCL” with a $6.9 billion valuation.

News - Circle, the issuer of USDC, has successfully raised $1.1 billion in its long-anticipated IPO after boosting both its share count and pricing due to overwhelming demand. The firm priced 34 million shares at $31 each, above its earlier range of $24–$26, giving it a market valuation of $6.9 billion, with a fully diluted figure of $8.1 billion.

The shares are set to begin trading today on the New York Stock Exchange under the ticker “CRCL,” marking one of the largest public debuts for a crypto company since Coinbase.

BlackRock, ARK lead institutional interest - Heavyweights BlackRock and ARK Invest are among the early backers. BlackRock is expected to acquire a 10% stake, while ARK signaled interest in purchasing up to $150 million worth of shares. Circle’s IPO success also inspired other crypto firms, like Plasma and Pump.fun, to raise their own fundraising targets.

Despite a net income dip from $268 million in 2023 to $156 million in 2024, Circle’s USDC remains the second-largest stablecoin with a 24.5% market share. The IPO aims to unlock broader institutional capital and improve regulatory perception.

Stablecoin optimism meets regulatory momentum - Circle’s listing comes as U.S. lawmakers push for clear stablecoin legislation. Senator Bill Hagerty, the lead sponsor of a new bill, called the IPO a signal that regulation can foster innovation. “This will take us into the 21st century... with stablecoins backed dollar for dollar,” he said.

Interesting facts

  • In 2023, the Centre Pompidou acquired two Bitchcoins, NFTs created by artist Sarah Meyohas in 2015, marking one of the first instances of a physical artwork being tokenized on a blockchain. Each Bitchcoin was originally backed by 25 square inches of Meyohas' photography, pioneering the intersection of art and cryptocurrency.

  • Bhutan is leveraging its abundant hydropower resources to mine cryptocurrencies, aiming to stimulate economic growth and provide employment. Profits from past crypto investments have been used to pay government salaries, and the country plans to further integrate digital assets into its economy as a sustainable strategy.

  • At the Bitcoin 2025 conference in Las Vegas, Reform UK leader Nigel Farage unveiled plans for a "crypto revolution" in Britain, including the establishment of a national bitcoin reserve within the Bank of England and a 10% capital gains tax on crypto. Reform UK also became the first British political party to accept cryptocurrency donations.

Top 3 coins of the day

Toncoin (TON)

Key points:

  • At press time, TON was trading at $3.23, up 2.15% over the last 24 hours.

  • The Parabolic SAR dotted markers flipped below the candlesticks, while the MACD line crossed above the signal line.

What you should know:

Toncoin appeared to regain bullish momentum after holding above the $3.00 mark, bouncing slightly higher amid consolidating volume. The Parabolic SAR flipped bullish with dots forming below the candles, indicating a possible trend reversal. Meanwhile, the MACD displayed a fresh bullish crossover just above the zero line, another potential sign of building strength. This technical bounce comes as broader confidence in Toncoin continues to grow, fueled by recent institutional backing from Sequoia Capital and CoinFund, as well as deeper integration within the Telegram ecosystem. The TON Foundation’s progress and leadership shift have also reinforced long-term investor optimism. If TON manages to close decisively above $3.30, the next resistance to watch lies near $3.50. However, failure to maintain above $3.10 could weaken sentiment and bring $2.90 back into play.

PancakeSwap (CAKE)

Key points:

  • At press time, CAKE was trading at $2.47, up 1.98% over the last 24 hours.

  • The price held above the 9-day SMA, while the DMI lines suggested a mild bullish bias.

What you should know:

CAKE continued its slow climb after reclaiming the $2.40 mark, trading above its 9-day simple moving average as intraday momentum built. The DMI reflected modest bullish control, with the +DI staying slightly ahead of the -DI, although the ADX hovered around 26, implying that trend strength was moderate at best. Recent bullish interest was likely driven by multiple catalysts. CAKE saw renewed traction following news of a potential Coinbase listing, alongside record trading volumes in May fueled by PancakeSwap Infinity’s launch and new token campaigns. A high-profile partnership with WLFI to promote the USD1 stablecoin also contributed to visibility. Despite these developments, some market observers remain cautious due to concerns over event-driven, rather than organic, growth. Volume remained steady, supporting the price's ability to hold higher lows throughout the week. If buyers sustain pressure, a move toward the $2.60–$2.70 resistance zone may unfold. On the flip side, if price slips back below $2.40, CAKE could revisit the $2.20–$2.25 support region.

TRON (TRX)

Key points:

  • At press time, TRX was trading at $0.272, down 0.77% over the last 24 hours.

  • The price hovered near the midline of the Bollinger Bands as the CMF remained below zero, signaling persistent capital outflows.

What you should know:

TRX faced slight bearish pressure after failing to break above the upper Bollinger Band around $0.277. The price remained rangebound, with tight consolidation near the band’s midline and low volatility. Volume continued to taper off slightly, adding to the sideways bias. Meanwhile, the Chaikin Money Flow stayed in negative territory at -0.06, confirming reduced buying pressure and steady capital outflows. If bulls defend the lower Bollinger Band near $0.264, TRX could attempt a bounce back to the $0.277–$0.280 resistance zone. A decisive drop below $0.264, however, may expose the token to a slide toward $0.250. On the fundamental side, TRON has seen record-breaking network activity with all-time high daily active addresses and a 30% surge in daily transactions since early February, reinforcing market confidence despite mixed technical signals.

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