Yield-Farming

Yield Farming (or liquidity mining) involves providing liquidity to DeFi protocols in exchange for rewards, typically in the form of platform tokens or a share of transaction fees. While pioneered by "DeFi Summer," the 2026 version of yield farming emphasizes sustainable emissions and automated strategy managers. This tag explores liquidity pools, yield aggregators like Yearn Finance, and the complex game theory behind reward optimization. Stay updated on the latest high-yield opportunities and the risks of impermanent loss.

37 Articles
Created: 2026/02/02 18:52
Updated: 2026/02/02 18:52
Fed Rate Cut Decision Sparks Varied Opinions Among Presidents

Fed Rate Cut Decision Sparks Varied Opinions Among Presidents

The post Fed Rate Cut Decision Sparks Varied Opinions Among Presidents appeared on BitcoinEthereumNews.com. Key Points: Federal Reserve presidents respond to December

Author: BitcoinEthereumNews
These Altcoins Could 10x in 2026: Reactor ($REACT) Leads as Revenue-Backed Token

These Altcoins Could 10x in 2026: Reactor ($REACT) Leads as Revenue-Backed Token

Discover the top altcoins that could potentially 10x in 2026. Learn why $REACT leads as a revenue-backed token, with ICP and XLM positioned for strong growth through major upgrades, enterprise adoption, and expanding real-world usage.

Author: Cryptodaily
Top 5 Low-cap Altcoins That Could Rally Amid Bitcoin Revival

Top 5 Low-cap Altcoins That Could Rally Amid Bitcoin Revival

Bitcoin’s latest rebound from its 7-day SMA at $90,200 marks a notable shift in short-term momentum. Holding this level signals renewed buyer confidence after a period of consolidation, restoring bullish sentiment across the broader market. Historically, when BTC stabilizes above key moving averages, liquidity begins to rotate into high-potential low-cap altcoins — the segment most sensitive to upside volatility. As Bitcoin shows signs of strength, several emerging projects are positioned to benefit. Below are five low-cap altcoins with meaningful catalysts that could rally alongside (or even outperform) BTC during its revival phase. 1. REACT — Token Fueling Reactor Terminal With Real Utility Reactor ($REACT) leads this list because its fundamentals are tied to real revenue, not speculation. The token powers Reactor, a live, fully functional trading terminal that unifies the fragmented DeFi experience. Instead of switching across dozens of tools, users access smart-routed spot swaps, unified yield-farming and vault management from one interface. This consolidation addresses one of DeFi’s biggest usability problems. Why REACT Can Rally Solving Real Problems in DeFi: Reactor addresses core pain points that traders consistently face which can attract sustained usage — and sustained usage is exactly what fuels REACT demand. Strong Early Demand: Nearly 10 million tokens sold in presale reflects investor confidence. Powerful Incentives: Zero-fee trading, boosted staking APY (10% → 28%), and priority access for new features. Strong Security and Credibility Signals: Hacken audit + listings on vetted ICO platforms increase trust. With a working product and a value loop tied directly to real usage, $REACT is one of the strongest low-cap candidates to outperform during Bitcoin’s rebound. 2. Flux — PoUW v2 Could Create Structural Scarcity Flux is undergoing a major transition as it shifts from GPU mining to Proof-of-Useful-Work (PoUW) v2 by Q4 2025. Instead of mining for its own sake, node operators will earn rewards for performing AI, cloud, and Web3 compute tasks. Why Flux Has Upside Real Work = Real Demand: Network rewards are tied to useful computation — not wasted energy. Lower Inflation: Block rewards stay at 14 FLUX, but emissions decrease 10% annually, reducing supply. Reduced Sell Pressure: GPU miners exiting means fewer forced token sales. Higher Collateral Demand: Operators must hold FLUX as node collateral, increasing long-term locking. This combination — reduced emissions, increased utility, and declining sell pressure — positions Flux well for a strong revaluation during a Bitcoin-led market recovery. 3. Verasity (VRA) — Expanding Real-World Adoption and Better Accessibility Verasity continues to gain traction with its Proof-of-View (PoV) anti-ad fraud technology. Its adoption by Khaleej Times, the largest publisher in the UAE, is a strong validation of its enterprise readiness. Why Verasity Can Rally Enterprise adoption-> consistent PoV usage BSC integration widens investor and liquidity access Improved fiat off-ramping increases real-world utility As real-world use cases scale, transactional demand for VRA could rise sharply during a market uptrend. 4. Arweave (AR) — AO Brings AI Compute and Cross-Chain Expansion Arweave is evolving from a storage-only chain into a full compute ecosystem through AO, a decentralized computing framework that launched testnet in 2025 with mainnet expected in January 2026. Why Arweave Could Rally AO’s success increases AR’s utility as the payment currency for compute and storage Partnerships like NAU Finance show growing financialization Historically, major integrations (e.g., Solana in 2024) aligned with price rallies With AO approaching mainnet, Arweave has one of the strongest upgrade pipelines among storage and compute networks. 5. Immutable (IMX) — Growing Pipeline of Web3 Games and AAA Backing Immutable continues to solidify its reputation as a leader in web3 gaming infrastructure. The ecosystem now includes 660+ games in development, featuring major studios such as Ubisoft and Netmarble.   Why Immutable Can Rally More successful game launches → higher IMX demand IMX benefits from 2% protocol fees and staking demand Strong institutional partnerships and rising developer adoption With the broadest AAA pipeline in web3 gaming, Immutable is well-positioned for upside during a broader market revival. Final Thoughts Bitcoin’s rebound above its $90,234 7-day SMA provides a constructive backdrop for altcoins with strong fundamentals. The five highlighted assets—REACT, Flux, Verasity, Arweave, and Immutable—each offer: real utility ongoing ecosystem expansion catalysts that extend beyond market sentiment As liquidity returns to the market, low-cap projects with meaningful usage and revenue alignment are often the first to accelerate. These five stand out as strong candidates for outperformance amid Bitcoin’s renewed strength. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Author: Coinstats
Best Crypto to Stock Up On Ahead of the Santa Rally 2025: REACT, SUI, and LINK

Best Crypto to Stock Up On Ahead of the Santa Rally 2025: REACT, SUI, and LINK

Seasonal patterns matter in crypto, and the Santa rally is one of the most watched. Late December often brings renewed risk appetite, thinner order books, and short-term momentum that pushes high-performing assets higher. As the biggest rally of 2025 approaches, three assets stand out for traders positioning early: Reactor (REACT), Sui (SUI), and Chainlink (LINK). 1. Reactor (REACT): Most Undervalued Opportunity Heading Into the Rally Reactor is live, trading, and gaining traction fast — not based on promises, but on actual usage. Its token, $REACT, sits at the center of the Reactor ecosystem, a terminal that consolidates spot trading, perpetual DEX execution, memecoin discovery, and multi-protocol yield into one coherent interface. As the platform expands, early buyers can still access $REACT at a 66% discount before listing. Nearly 10 million tokens are already sold, signaling strong demand. Buying Now Means Securing $REACT at the Best Price Before Demand Rises What Makes $REACT Stand Out Reactor solves a common problem in DeFi: fragmented tools. Instead of juggling tabs and wallets, users get a single, professional-grade environment: Swap Interface — Smart routing through hundreds of liquidity sources to secure the best execution on spot trades. Perpetuals Dashboard — Real-time PnL tracking, leverage tools, and access to unique dynamic perpetual markets unavailable on other platforms. Vaults Hub — A unified yield-farming experience that pulls in tokens the moment they launch, lets users compare yields, and collects all reward streams in one place. Why REACT Is Selling Out Fast   $REACT is a utility token with direct economic ties to Reactor’s growth. As more traders use the Terminal, the platform’s commission revenue increases. That revenue fuels buy-backs and token burns, gradually reducing supply and strengthening long-term value. Presale buyers receive meaningful advantages: Reduced fees (down to 0%) Staking APY boosted from 10% to 28% Early access to all new apps on the platform Priority entry for new pools, partner drops, and allowlists Early entry here means securing $REACT at the best price before demand accelerates — a key advantage ahead of the Santa rally.  $REACT Presale Given a Chance to Lock In 66% Early-Bird Discount 2. SUI: Breakout Structure Aligns with Holiday Momentum SUI’s technical picture flipped bullish after it pushed through the $1.80 resistance and invalidated a prolonged downtrend. The 4-hour chart printed a falling-wedge breakout, supported by strong momentum signals. RSI: 57,76 — rising but not overbought MFI: 84,14 — strong capital inflows Key support reclaimed: 61,8% Fibonacci at $1.71 This structural shift sparked short covering and FOMO-driven buying, with traders eyeing the next major target at $2.04, aligned with the 23,6% Fibonacci retracement. If SUI holds above the $1.71–$1.80 zone, the setup remains constructive, and seasonal liquidity patterns could amplify the move. 3. LINK: Momentum Reversal Positions It for a Strong December Chainlink is stabilizing after weeks of downside, reclaiming important short-term levels. LINK broke above both its 7-day SMA ($13,07) and the 38,2% Fibonacci retracement at $15,35, signaling that sellers are losing control. Momentum indicators confirm the shift: RSI14: 46,59 — recovering from oversold MACD histogram: +0,17 — positive for the first time in days The breakout drove traders toward the $14,60 zone (50% Fib), which now acts as support. The next resistance sits at $16,22, last tested in November. A breakout there would reinforce a broader trend reversal. With LINK historically responding well to increased year-end speculation, the setup aligns with typical Santa rally dynamics. Conclusion The approaching Santa rally tends to reward assets with strong momentum and real catalysts. REACT offers utility, revenue-driven tokenomics, and a still-undervalued presale entry. SUI is breaking out of a bearish structure with clear upside targets. LINK is turning bullish after reclaiming key technical levels. For traders positioning early, these three assets offer compelling setups as 2025’s year-end momentum begins to build.   Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Author: Coinstats
Why Ripple’s RLUSD stablecoin thrives on Ethereum over XRPL

Why Ripple’s RLUSD stablecoin thrives on Ethereum over XRPL

The post Why Ripple’s RLUSD stablecoin thrives on Ethereum over XRPL appeared on BitcoinEthereumNews.com. Ripple’s RLUSD stablecoin is rapidly expanding on Ethereum rather than the company’s native XRP Ledger (XRPL). According to CryptoSlate data, RLUSD’s total circulating supply has surged to $1.26 billion within 12 months of its launch. Of this, roughly $1.03 billion, or 82% of the total supply, resides on Ethereum, while the $235 million balance is on XRPL. Graph showing Ripple RLUSD supply on Ethereum and XRPL from November 2024 to November 2025 (Source: DeFiLlama) These numbers show that the market seems to favor the deep liquidity and composability of the Ethereum Virtual Machine over the more compliance-focused architecture of the XRPL. Why RLUSD is growing on Ethereum The primary driver of this disparity is the maturity of the underlying financial stack. On Ethereum, RLUSD entered an environment where dollar liquidity is already entrenched. Data from DeFiLlama confirms that Ethereum continues to lead all chains in total value locked (TVL) and stablecoin supply, providing a turnkey ecosystem for new assets. Screengrab showing Ethereum’s key DeFi metrics on Nov. 29, 2025 (Source: DeFiLlama) So, any new stablecoin that can plug into major DeFi protocols like Aave, Curve, and Uniswap immediately benefits from existing routing engines, collateral frameworks, and risk models. RLUSD’s presence on Aave and Curve confirms this. The USDC/RLUSD pool on Curve now holds approximately $74 million in liquidity, ranking it among the larger stablecoin pools on the platform. For institutional treasuries, market makers, and arbitrage desks, this depth is non-negotiable. It ensures low-slippage execution for trades in the tens of millions, facilitating basis trades and yield-farming strategies that drive modern crypto capital markets. On the other hand, the XRPL is still in the nascent stages of building a DeFi foundation. Its protocol-level automated market maker (AMM) went live only in 2024. So all RLUSD-related pools on the ledger, such as the…

Author: BitcoinEthereumNews
Ethereum quietly becomes the real home of RLUSD — leaving XRPL users stuck in the slow lane

Ethereum quietly becomes the real home of RLUSD — leaving XRPL users stuck in the slow lane

Ripple’s RLUSD stablecoin is rapidly expanding on Ethereum rather than the company’s native XRP Ledger (XRPL). According to CryptoSlate data, RLUSD’s total circulating supply has surged to $1.26 billion within 12 months of its launch. Of this, roughly $1.03 billion, or 82% of the total supply, resides on Ethereum, while the $235 million balance is on […] The post Ethereum quietly becomes the real home of RLUSD — leaving XRPL users stuck in the slow lane appeared first on CryptoSlate.

Author: CryptoSlate
Yearn Finance Hack: Yearn Finance Suffers Major yETH Hack, ETH Sent to Mixer

Yearn Finance Hack: Yearn Finance Suffers Major yETH Hack, ETH Sent to Mixer

Yearn Finance faces a major yETH hack that drained millions in tokens, raising concerns about DeFi security and systemic vulnerabilities. Yearn Finance suffered a hack that targeted its yETH product. This hack, moreover, drained huge liquidity. In the incident, there was a critical vulnerability. This vulnerability allowed the attacker to issue almost unlimited yETH. As […] The post Yearn Finance Hack: Yearn Finance Suffers Major yETH Hack, ETH Sent to Mixer appeared first on Live Bitcoin News.

Author: LiveBitcoinNews
What Is Cryptocurrency? A Deep Dive Into The Basics

What Is Cryptocurrency? A Deep Dive Into The Basics

Are you interested in cryptocurrencies? Whether you want to learn about them or get into crypto investing, you’ve reached the right spot. Cryptocurrencies are virtual currencies that leverage cryptographic techniques, blockchain technology, and distributed ledger technology to enable seamless and secure transactions. In this article, we’ll offer deeper insights into what is cryptocurrency, its types, benefits, risks, and prospects. We’ll also provide a step-by-step guide on how to buy crypto. What Is Cryptocurrency? A cryptocurrency is a form of digital currency that harnesses shared ledger, blockchain, and encryption technologies to facilitate borderless transactions. It serves as a medium of exchange, a store of value, a means of payment, and a unit of account. In essence, it is an alternative to traditional money, especially for making payments on online platforms.  However, cryptocurrencies are fundamentally different from fiat currencies. Their hallmark feature is decentralization, meaning they aren’t issued or managed by governments or central banks.  Additionally, they lack a physical form. They exist only digitally in online databases that are distributed across a network of computers, called nodes. No central authority or server controls/hosts these databases and networks.  Besides, blockchain-backed digital currencies are secured by cryptography. It is the practice of safeguarding, encrypting, and obscuring data using mathematical techniques and coded algorithms. Originating from the Greek word “kryptos” for “hidden”, cryptography conceals confidential information from prying eyes and third parties. It also upholds the integrity and authenticity of data.  Moreover, blockchain networks are immutable and tamper-proof. Each block in a network possesses a distinct digital fingerprint based on its contents. It also contains the hash of the previous block. If anybody tries to alter a blockchain transaction, the hash of the corresponding block will change, disrupting the chain. As modifying the hashes of subsequent blocks is computationally impractical, the network rejects the changes to maintain the blockchain. Lastly, a cryptocurrency doesn’t have intrinsic value. Its value depends on demand-supply dynamics, which in turn are influenced by its utility, scarcity, and community strength. Bitcoin is the first cryptocurrency to hit the market and the largest by market cap. Ethereum is the pioneer blockchain to support smart contracts, and its native currency, Ether (ETH), is the second-largest cryptocurrency by market cap.  How Does Cryptocurrency Work on The Blockchain? Cryptocurrencies run on networks powered by blockchain technology. All transactions involving virtual currencies are recorded on unalterable public ledgers to ensure transparency and prevent counterfeiting.  You can think of cryptocurrencies as peer-to-peer (P2P) systems that enable you to send and receive payments at lower costs. You can also refer to them as decentralized money, as it allows online transfer of value in a trustless environment. Most importantly, digital currencies eliminate the need for intermediaries, including central banks and third-party payment systems.  How are cryptocurrencies created? The coin minting process is tied to the consensus mechanism of a blockchain platform. It is an automated system that ensures network validators unanimously agree on the new and existing data on the ledger.  Proof-of-Work (PoW) mechanism: PoW blockchains, such as Bitcoin, generate new tokens through mining. It involves the use of sophisticated hardware and software to solve complex mathematical algorithms. Whenever a purchase/sale/transfer takes place, miners decrypt the block containing the transaction details. This process is resource-intensive and requires considerable computing power. Once the majority of nodes approve the transaction as authentic, the block is appended to the blockchain. Proof-of-stake (PoS) mechanism: PoS networks like Ethereum choose validators based on the amount of cryptocurrencies they lock up. These validator nodes verify transactions and add new blocks to the network. In general, the PoS system is more energy-efficient than the PoW mechanism.  Miner/validators receive freshly minted coins, a portion of users’ transaction fees, and staking rewards as incentives. Other popular consensus algorithms include proof-of-history (e.g, Solana), proof-of-authority (e.g, VeChain), and delegated PoS (e.g, Tron).  Cryptocurrency vs. traditional currency Cryptocurrency Traditional currency It is created through mining, staking, or forking. It is issued by governments or central banks. It exists digitally on decentralized platforms powered by blockchain and distributed ledger technologies. It exists in the form of physical cash and can also be stored digitally in banks/financial institutions. While it is naturally censorship-resistant, many governments are actively regulating crypto transactions. It is fully regulated. Cryptocurrency transactions are irreversible and immutable. Fiat currency transactions can be reversed or altered. Cryptocurrency investment is risky due to its volatile price swings. Values of traditional currencies are fairly stable. It enables speedy transactions at reduced costs. It usually involves slower transaction processing and higher fees. It is used for buying both physical and digital goods and services.  It is predominantly used as legal tender. It is more prone to cyber threats, with no legal recourse available in the event of loss. Transactions involving traditional currencies are more secure and can be recovered easily, especially when processed through authorized financial institutions. Types of Cryptocurrency While the terms coins and tokens are often used interchangeably, there are subtle differences between them. Coins Coins are cryptocurrency applications that operate on their own blockchains. Usually, they’re the native currencies of their networks and serve as the primary medium of exchange within their ecosystems. Bitcoin (BTC): It is the first cryptocurrency developed by a pseudonymous individual/group known as Satoshi Nakamoto in 2009. Currently, it is the largest digital currency with a market cap of over $1 trillion. While you can find 100+ forks of Bitcoin’s source code, its prominent hard forks/variants include Bitcoin Cash and Bitcoin Satoshi Vision. Altcoins: An alternative coin, or altcoin, serves as an umbrella term for all cryptocurrencies other than Bitcoin. Ether (ETH), the native currency of the Ethereum blockchain, is the pioneer altcoin and the second-largest crypto by market cap. Ethereum is also the first network to support smart contracts for building and deploying decentralized apps and non-fungible tokens. Tokens Tokens are built on existing blockchains. They’re programmable and powered by smart contracts or self-executing lines of code that function as per pre-defined rules. Utility tokens: These digital assets enable users to access specific products or services on a platform or within a blockchain ecosystem. Examples of utility tokens include Uniswap (UNI), Chainlink (LINK), and Filecoin (FIL).  Governance tokens: They grant decision-making rights to holders, enabling them to vote on policy updates and key proposals surrounding a platform’s future. Shib ecosystem’s BONE and Decentraland’s MANA are examples of governance tokens. Stablecoins: These tokens are designed to maintain a steady value and offer protection against crypto volatility. Typically, their values are tied to stable assets like commodities, fiat currencies, or financial instruments. USD Coin and USDT (Tether), pegged to the US Dollar, are widely used for merchant payments, global remittances, and borderless transactions. They help you enjoy the stability of traditional money while making international transfers. Security tokens: They represent ownership rights in financial assets, including equities, bonds, and stock indices, on a blockchain. Top companies like Tesla, NVIDIA, and Microsoft issue tokenized shares. How to Buy Cryptocurrency? Step 1: Choose a cryptocurrency exchange or broker If you want to buy cryptocurrencies, select a broker or digital asset exchange based on your needs. Usually, brokers offer a simpler interface, limited coin selection, lower fees, and fewer functionalities, making them suitable for beginners. Some platforms, like Robinhood, also allow you to trade other financial assets, like stocks, exchange-traded funds (ETFs), and derivatives. Conversely, cryptocurrency exchanges offer advanced charting tools and a wider range of offerings, including more coins and trading pairs. They also have sophisticated matching engines and an intuitive interface, enabling you to trade directly with other buyers/sellers. Most crypto exchanges facilitate spot, margin, and derivatives trading. However, they may charge higher fees and are more complex to navigate. Hence, they’re best-suited for active and experienced traders. Step 2: Create an account Once you’ve chosen a broker/exchange, open an account using your e-mail, phone number, Google ID, Apple ID, or Telegram ID. Most platforms offer attractive welcome packages to users who register using a referral code.  Step 3: Complete know-your-customer (KYC) verification After you finish signing up, verify your identity. To complete the KYC process, you need to submit identity and address proofs along with a selfie. Once the platform reviews and approves your documents, your identity verification is complete.  Step 4: Fund your account Before you start cryptocurrency trading, you must make your first deposit. You can either deposit fiat or cryptocurrencies. You can also transfer funds into your account from an external digital wallet.  Step 5: Buy and trade cryptocurrencies If you don’t have funds to make a deposit, you can buy cryptocurrencies through the platform using various payment methods. These include bank transfers, credit/debit cards, Google/Apple Pay, and third-party payment services like Skrill, Neteller, and Banxa. Some cryptocurrency exchanges also provide a P2P marketplace, where you can buy and sell crypto directly from other traders. Once your account has a sufficient balance, you’re ready to start trading cryptocurrencies. Based on your goals and preferences, you can either choose to go long (buy) or go short (sell) in the cryptocurrency market.  While most cryptocurrency exchanges don’t levy deposit fees, you must incur charges for buying, selling, and withdrawing crypto assets. Trading fees and withdrawal charges vary across platforms. They also differ based on your chosen coin, network, asset balance, and trading volumes. How to Store Cryptocurrency Safely? Hot/online wallets: They’re software-based crypto wallets that are connected to the internet. They offer greater convenience, especially for frequent trading, and enable faster transactions. You can access these wallets anytime, anywhere, from your desktop, laptop, phone, or tablet.  However, they are highly susceptible to cyber attacks. Therefore, store only the minimum amount required for trading in your hot wallets. Examples of popular hot wallets include Metamask, Phantom, and Binance wallet. Cold/offline wallets: They’re hardware-based and safer, as they store your crypto offline. However, they’re vulnerable to physical damage. To eliminate this risk, you need to back up your private key and recovery phrase is a secure location. Examples of top offline wallets include Trezor and Ledger. Besides, many exchanges have designed multi-signature cold storage to protect users’ digital assets. What Can You Use Cryptocurrency For? Payment mode: Cryptocurrencies can be used for both physical purchases and online transactions at crypto-supported merchant outlets. While they aren’t a widely accepted means of payment globally, many countries are gradually embracing their usage for day-to-day transactions.  In 2021, El Salvador became the first nation to accept Bitcoin as legal tender. Countries like Portugal, Malta, Switzerland, Hong Kong, and Germany are also known for their crypto-friendly policies. Investment avenue: If you’re willing to add some speculative assets with high profit potential to your portfolio, cryptocurrencies are your best bet. Their high price volatility can lead to significant losses, but it also creates opportunities for making substantial profits.  Benefits of Using Cryptocurrency Privacy and transparency: Though blockchain records are publicly verifiable, they don’t contain investors’ personal details. Therefore, the probability of identity theft is lower, while 100% transparency is maintained. Cross-border payments: You can use cryptocurrencies to buy goods and services from any country without worrying about exchange rates and associated fees. Virtual currencies also help you manage bank account restrictions, like ATM withdrawal limits. Divisibility: Cryptocurrencies are divisible, and many exchanges support fractional investing. Some platforms also allow you to buy coins for as little as $1. Therefore, you can gain exposure to the cryptocurrency market without assuming significant risk. This property of digital currencies also makes high-value coins such as BTC, ETH, and XRP accessible to all. Decentralized system: Cryptocurrencies and blockchain networks aren’t controlled by a central authority. Hence, they’re less susceptible to manipulations. Moreover, your crypto assets will remain safe even during political upheavals. Equality: Regardless of your location, you can buy and sell cryptocurrencies as long as you’ve a device with internet access. This way, virtual currencies play a pivotal role in fostering financial inclusion and free trade. Blockchain-based currencies are also a boon for investors based in locations with strict government controls or inflation problems. Stability: With stablecoins like USD Coin and Tether (USDT), you can enjoy the stability of traditional money while making international transfers. They’re pegged to fiat currencies like the US Dollar to maintain a steady value and offer protection against crypto volatility. They’re widely used for merchant payments, global remittances, and borderless transactions. Risks of Using Cryptocurrency Volatility: Cryptocurrencies are highly volatile and can cause heavy losses for investors. For example, the BTC price plummeted by over 33% and fell below $80,000 on November 24, 2025. It had reached a record high of $125,000 on October 6. Non-recoverability: If you lose your private key or access to the location where you store it, you can’t recover your assets. Similarly, if you make mistakes while copying deposit/withdrawal addresses, recovering your digital currencies is daunting.  Scams: The cryptocurrency industry is marred by various scams. These include rug pulls, Ponzi schemes, and fake websites that trick innocent users into investing their money. Moreover, scammers often pose as famous personalities or billionaires and promise sky-high returns to trap people. They use messaging apps to spread rumours about celebs promoting specific cryptocurrencies.  Regulatory risks: Cryptocurrencies are banned partially or fully in many jurisdictions. Even the laws governing cryptocurrency transactions and taxation are ambiguous. Also, many exchanges are facing regulatory challenges in multiple countries. Hence, any crackdown or unfavourable policy changes can put your crypto investments at risk. Counterparty risks: Traders rely on exchanges and third-party custodians to manage their assets. In the event of any security breach or closure of an exchange/custodial service, users may incur asset losses.  Smart contract risks: NFTs and decentralized finance (DeFi) protocols are governed by intelligent contracts. Immutable bugs or programming errors can cause dApps to malfunction, lock funds permanently, or result in asset theft/losses. Market manipulation: Crypto whales, entities holding large amounts of digital currencies, can significantly impact the prices and liquidity of cryptocurrencies. They often hoard cryptocurrencies in dormant accounts, removing tokens from active circulation. This perceived scarcity triggers a sharp rise in crypto prices. Contrarily, when whales engage in coordinated selling, a cryptocurrency’s price can fall drastically. How to Avoid Cryptocurrency Scams and Frauds? Research a crypto project’s official website, whitepaper, team, community, and credibility before investing. Usually, authentic projects show active development and have strong communities backing them.  Avoid projects or schemes that promise high returns that sound unrealistic and too good to be true. Choose reputable exchanges and digital wallets for trading and storing crypto assets. Binance, Bybit, and Coinbase are renowned centralized exchanges, while Trust Wallet is the best multi-chain wallet. Enable multi-factor authentication, set a strong password, and keep recovery phrases offline. Never share private keys or seed phrases with anyone. Beware of fake URLs, bogus websites, phishing e-mails, spurious links, malware, and ransomware. Don’t blindly follow unsolicited advice or offers received through messaging apps, social media, or emails.  Preserve most digital assets in cold storage and keep only the amount needed for trading in hot wallets. Use advanced tools like VS Code, Etherscan, Foundry, and Dune to detect smart contract bugs.  Is Cryptocurrency Legal and Safe? Cryptocurrencies are powered by blockchain technology. While the underlying cryptography and technology are highly secure, trading and storing virtual currencies safely is challenging. Hackers often target hot wallets where traders store cryptocurrencies for executing various transactions. For example, in February 2025, the North Korea-based Lazarus group hacked one of Bybit’s suppliers to modify crypto wallet addresses. Over 401,000 ETH tokens were being sent to these addresses, enabling the hackers to pull off a $1.5 billion crypto heist. Though the exchange replenished the stolen tokens, the incident raises serious questions about the safety of crypto investments. Moreover, many cryptocurrency exchanges have fallen prey to such large-scale hacks in the past. Many platforms have implemented robust security measures like two-factor authentication, multi-signature cold storage, anti-phishing code, and proof-of-reserves. Some have even established insurance funds to compensate traders who incur losses due to platform issues. However, none is infallible, and hacking incidents are a testament to this fact.  Besides, cryptocurrencies carry inherent risks. Lack of legal protection makes it tougher to retrieve your assets in the event of losses or untoward happenings.  Lastly, not all countries are pro-crypto, with many banning its usage outright. Additionally, many exchanges don’t possess the required regulatory licenses and don’t comply with KYC/AML laws.  Overall, cryptocurrencies are highly risky investments, involving technical and legal complexities. Thus, the onus of safeguarding your assets largely depends on you. Understanding the nitty-gritty of crypto trading, doing your own research, and applying due diligence are essential. The Future of Cryptocurrency in the Global Economy Asset tokenization: RWAs are physical or digital assets such as stocks, bonds, and real estate that exist outside the digital realm. Asset tokenization refers to the process of converting RWAs into virtual tokens that reside on a blockchain. It facilitates fractional ownership of high-value assets, making them accessible to a larger number of users. It also imparts greater liquidity to otherwise illiquid assets. Moreover, the inherent transparency of blockchain technology boosts investor confidence by minimizing ownership conflicts and exposure to fraud. Furthermore, it democratizes financial markets and reduces asset management costs by eliminating the need for paperwork, intermediaries, and legal services.  Metaverse and blockchain gaming: Metaverses are immersive digital arenas or 3D gaming environments where you can interact with other users/players as an avatar. From art museums and virtual company headquarters to tokenized land parcels and collectible shops, these metaverses mirror the real world. They also host numerous events such as music festivals, auctions, conferences, and social gatherings.  You require digital currencies to buy in-world/in-game items such as tickets, NFTs, and accessories. You’ll also receive rewards for play-to-win (P2W) and play-to-earn (P2E) games in cryptocurrencies. Additionally, most metaverses and blockchain games issue their own cryptocurrencies that can be traded on exchanges. In general, cryptocurrencies play a key role in driving these virtual economies. AI integration: Many exchange platforms leverage AI to provide live market analytics, trading bots, token insights, and advanced automations. They also use AI and machine learning algorithms to detect cyber fraud, suspicious activities, smart contract bugs, and bot attacks. Web3 and DeFi: Cryptocurrencies form the backbone of Web3 and decentralized applications. Web3 is the next-gen internet, focusing on decentralized systems, user control, digital ownership, and privacy. Decentralized finance protocols are one of the primary applications of Web3, offering staking, lending, borrowing, yield-farming, and liquidity mining services.  Conclusion Cryptocurrencies are transforming global payment systems by enabling faster, safer, and decentralized financial transactions. They also process transactions without traditional intermediaries or middlemen. Moreover, many cryptocurrency firms, such as Nu Holdings and Strategy Inc., have grown phenomenally over the last few years. The number of merchants accepting cryptocurrency payments is also steadily increasing. On the whole, the future of the crypto industry appears encouraging, and cryptocurrencies are here to stay. FAQs Which Crypto is best to invest in?Based on trading volumes, liquidity, and market cap, Bitcoin and Ethereum are the top cryptocurrencies. Solana, XRP, Dogecoin, and Cardano are other cryptocurrencies that are worth exploring. However, there is no single best cryptocurrency to invest in. It depends on your financial objectives, risk tolerance, and trading strategies. While established cryptocurrencies are less risky, many newer altcoins offer higher rewards and support advanced use cases. How do Cryptocurrency transaction taxes work?Crypto taxation rules vary across countries. In the US, the Internal Revenue Service considers cryptocurrencies as property. Therefore, you must pay capital gains tax on profits from crypto transactions. In India, income earned from the swapping, selling, and trading of digital assets is taxable at a flat 30%. How does crypto make you money?If the value of your cryptocurrency increases and you sell it for a profit, you make money. You can also earn passive income through staking, liquidity mining, and crypto lending. Additionally, exchanges reward customers with sign-up bonuses and multiple rewards for completing designated tasks and referring new users. You can also win blockbuster prizes, including airdrops and free tokens, by participating in exclusive events. How to invest in cryptocurrency for beginners?New traders must choose a platform that offers a user-friendly interface and a variety of beginner-friendly features. These include quick buy/sell, demo trading, copy trading, AI-based token insights, and real-time market analytics. It should also provide comprehensive educational resources to help beginners cultivate and hone their cryptocurrency trading skills. In general, newbies must invest low amounts initially and begin with spot trading. As they gain expertise, they can explore margin or derivatives trading and advanced features. Is cryptocurrency a good investment?Cryptocurrencies offer various advantages, including privacy, transparency, divisibility, and irreversibility. They also enable borderless payments and portfolio diversification. However, global crypto adoption remains fairly low due to inherent risks, extreme volatility, regulatory uncertainties, and security concerns. Even so, the future outlook for cryptocurrencies seems promising. With in-depth research and prudent decision-making, digital currencies can be a rewarding investment. The post What Is Cryptocurrency? A Deep Dive Into The Basics appeared first on NFT Plazas.

Author: Coinstats
Yield compression triggers 50% TVL drop in USDe despite rising onchain usage

Yield compression triggers 50% TVL drop in USDe despite rising onchain usage

The sharp TVL contraction appears largely driven by the unwinding of leveraged looping strategies that proliferated across DeFi protocols.

Author: The Block
Users blast curators Re7 and Silo for handling of DeFi turmoil

Users blast curators Re7 and Silo for handling of DeFi turmoil

The post Users blast curators Re7 and Silo for handling of DeFi turmoil appeared on BitcoinEthereumNews.com. Three weeks ago, alarm bells began to ring over a “daisy chain of circular lending” between crypto yield-farming vaults. Since then, the spectacular collapse of Stream Finance saw depegs, bad debt and millions of dollars trapped in low-liquidity markets. The responses of some of the “curators” behind the vaults has left something to be desired, however. Curators are responsible for setting parameters on permissionless lending markets used to lever up user deposits. Read more: Stream Finance meltdown: winners and losers in DeFi ‘risk curator’ reckoning Re7 Labs’ ‘extensive update’ proves a nothingburger Re7 Labs has been relatively quiet over its vaults’ purported $27 million of exposure to the collapse. The last post with any real detail came almost two weeks ago, before users were asked last Friday to “bear with us” and hold out for an “extensive update… in the first half of next week.” Yesterday evening, the long-awaited update came. The post (replies disabled) states that Re7 Labs is “actively moving forward with… legal actions, and assessing the likelihood of recovery.” However, it’s yet to receive any “satisfactory response” from counterparties Stream Finance or Stable Labs. Users weren’t impressed. One asked simply, “Is this a joke?” while another pointed to the post’s delay and lack of substance. A third described Re7 Labs’ strategy as “Delay and Dilute” while “building a future liability-shielding narrative.” A fourth user’s comment reads, “Handing over money for you to manage is truly eight lifetimes of bad luck.” Read more: High yields to haircuts: Has DeFi learned anything from yield vault collapse? Silo users miss liquidity window Silo Finance yesterday announced a $1.5 million repayment to the xUSD/USDC market on Arbitrum. The liquidity was snapped up within half an hour, with Silo’s post coming 28 minutes after the last significant withdrawal. Users who were unable…

Author: BitcoinEthereumNews