ENSO's price surged to 2.4 USDT this morning, marking an increase of over 80% in the past 24 hours. According to Foresight News, since the 21st of this month, ENSO has seen a remarkable rise of over 300%.
VanEck Avalanche Spot ETF Set to Launch on Nasdaq Next Week
VanEck's Avalanche Spot ETF, known as VAVX, is scheduled to begin trading on Nasdaq next Monday. According to Foresight News, Flow Traders will serve as the designated liquidity provider for this ETF.
Bitcoin Transfer of 403.9 BTC Observed Between Anonymous Addresses
At 11:34, a transaction involving 403.9 BTC was recorded, transferring from one anonymous address to another. According to ChainCatcher, the movement of Bitcoin was noted between addresses starting with bc1pham... and bc1pxds....
Bitcoin hovering below $90K does seem like a crucial moment where holders weigh their options—a classic “hold or fold” scenario that history has seen before. Sometimes it’s all about patience and perspective.
Yellow Media
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Bitcoin Faces Hold Or Fold Moment Below $90K
Bitcoin (BTC) is trading below $90,000 as on-chain data shows unrealized profits and losses falling back toward levels historically seen only at the end of bear markets, suggesting holders now face a critical decision between accumulating further or capitulating under mounting stress.
What Happened: On-Chain Stress Builds
Analyst Darkfost examined an adjusted version of NUPL (Net Unrealized Profit/Loss) that incorporates the realized capitalization of both Short-Term Holders and Long-Term Holders rather than relying solely on standard market cap.
The resulting metric, which Darkfost calls aNUPL, provides a clearer view of how much profit or loss sits on paper across the market.
Since Bitcoin's last all-time high, many late-arriving investors have moved into uncomfortable territory.
Unrealized profits are shrinking while unrealized losses expand, creating conditions that typically force traders into a binary choice.
The key finding is that Bitcoin is approaching ranges where holders historically either continue accumulating or exit under pressure. That behavioral split becomes critical because it shapes liquidity, sentiment, and the next directional trend.
Also Read: XRP Pattern Hints To Potential $4 Price Target, Analyst Claims
Why It Matters: Market Hangs In Balance
If long-term participants absorb the pressure and keep holding, the market can stabilize and rotate back into recovery. But if selling accelerates from stressed cohorts, the decline can deepen into a broader bear phase.
Bitcoin is currently trading around $89,000 after dropping roughly 4.8% on the week, trapped in a tight consolidation range below overhead resistance near the low-$100K region.
The market has failed repeatedly to reclaim the psychological $90,000 threshold.
A defense of the $88K–$90K zone with a push back above $92K–$95K would signal a recovery attempt. Sustained failure increases the risk of a deeper retracement toward the low-$80K area.
The ban on privacy coins like Monero, Zcash, and Dash in India highlights ongoing global challenges balancing financial privacy with regulatory compliance. It’s a complex issue with many perspectives to consider.
Yellow Media
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India Bans Monero, Zcash, Dash Over Money-Laundering Fears
India's Financial Intelligence Unit has directed cryptocurrency exchanges operating in the country to immediately suspend all trading, deposits and withdrawals of privacy-focused cryptocurrencies Monero (XMR), Zcash (ZEC) and Dash (DASH), citing money-laundering and terrorist-financing concerns linked to the assets' anonymity features.
What Happened: Privacy Coins Banned
Market analyst MartyParty reported the development on social media platform X, noting that FIU-IND issued the directive to all registered crypto exchanges.
The regulator's order requires platforms to delist the three tokens, block all deposits and withdrawals, and disable associated trading pairs.
At issue are the cryptographic techniques these assets use to obscure transaction details, wallet balances and user identities.
Monero employs ring signatures to hide senders and receivers. Zcash offers shielded transactions that conceal transaction data. Dash provides optional privacy features.
Regulators argue these capabilities make it difficult for exchanges to comply with know-your-customer and transaction-monitoring requirements. The directive follows an October 2025 order in which FIU-IND instructed internet service providers to block access to 25 offshore crypto exchanges that failed to register in India.
Only a handful of platforms remain fully compliant, including Binance, Mudrex, Coinbase, CoinSwitch and ZebPay.
Also Read: XRP Pattern Hints To Potential $4 Price Target, Analyst Claims
Why It Matters: Market Resilience Amid Pressure
Despite the regulatory action, the targeted tokens showed short-term price gains in the 24 hours following the announcement.
Monero traded at $524, up 3.5% on the day. Zcash rose 2.2% to $372. Dash recorded the strongest daily performance, jumping 11.6%.
In general, DASH has emerged as the top-performing cryptocurrency among the 300 largest digital assets last week, surging more than 100% and surpassing privacy-sector rival Monero amid renewed investor interest in financial privacy tools and expanding merchant acceptance.
Four consecutive days of ETF outflows may seem significant, but such shifts often reflect portfolio adjustments and fee considerations rather than a fundamental change in Ethereum’s broader ecosystem.
Bitcoinworld
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Spot Ethereum ETFs Face Relentless Pressure: Fourth Straight Day of Net Outflows Hits $41.7 Million
BitcoinWorld Spot Ethereum ETFs Face Relentless Pressure: Fourth Straight Day of Net Outflows Hits $41.7 Million
In a significant trend for digital asset markets, U.S. spot Ethereum exchange-traded funds (ETFs) recorded their fourth consecutive day of net outflows on January 23, 2025, withdrawing a substantial $41.7 million from the nascent investment products and signaling shifting investor sentiment in the new year.
Spot Ethereum ETFs Grapple with Sustained Withdrawals
Data from the prominent analytics firm Farside Investors reveals a clear pattern of capital exit from spot Ethereum ETFs. This multi-day outflow event, concentrated in late January 2025, marks one of the most prolonged periods of net negative movement for these funds since their landmark approval and launch. The consistent withdrawals suggest a recalibration among institutional and retail investors, potentially driven by broader macroeconomic factors or specific developments within the cryptocurrency ecosystem. Consequently, fund managers now face the challenge of stabilizing assets under management during this phase of apparent consolidation.
Breaking Down the January 23 Outflow Figures
The daily snapshot from Farside provides a detailed breakdown of the outflows, highlighting divergent performances among the major fund issuers. BlackRock’s iShares Ethereum Trust (ETHA), one of the largest and most closely watched products, experienced a significant single-day outflow of $44.5 million. Simultaneously, Grayscale’s Ethereum Trust (ETHE) saw outflows of $10.8 million. However, Grayscale’s newer and lower-fee Mini Ethereum Trust (ETH) partially counteracted this trend by attracting a net inflow of $9.2 million. This internal shift indicates that cost-conscious investors may be moving capital between products from the same provider to optimize for expense ratios, even during a broader withdrawal period.
Contextualizing the Outflow Trend
To understand this trend, one must consider the lifecycle of cryptocurrency ETPs. Initial launch periods often generate substantial inflows driven by pent-up demand and novelty. After this phase, flows typically become more reactive to external market drivers such as Ethereum’s price volatility, regulatory news, interest rate expectations, and the performance of competing asset classes like equities or bonds. The four-day outflow pattern in January 2025 may reflect a response to specific events, including potential regulatory clarifications from the SEC, movements in the underlying ETH price, or profit-taking after a period of accumulation. Historical data from spot Bitcoin ETFs shows similar periods of consolidation following initial surge phases, suggesting this may be a standard maturation process for crypto-based investment vehicles.
Comparative Analysis with Bitcoin ETF Flows
The behavior of spot Ethereum ETFs often draws comparisons to their Bitcoin counterparts, which have a longer track record. While Bitcoin ETFs have also experienced periods of outflows, they have generally demonstrated stronger cumulative net inflows over time. The recent pressure on ETH funds could highlight a divergence in investor perception between the two leading cryptocurrencies. Some analysts point to factors like Ethereum’s evolving transition to a full proof-of-stake consensus, ongoing upgrades like Dencun, and its utility in decentralized finance (DeFi) as variables that create a different risk-reward profile compared to Bitcoin’s digital gold narrative. This differentiation directly influences fund flow dynamics.
Key factors influencing ETF flows include:
Underlying Asset Performance: Daily changes in the price of ETH.
Macroeconomic Environment: Shifts in interest rates and inflation expectations.
Regulatory Landscape: Statements or actions from the SEC or other regulators.
Competitive Fund Launches: New products with lower fees or novel structures.
General Market Sentiment: The overall risk-on or risk-off appetite of investors.
The Role of Fees and Product Differentiation
The contrasting flow between Grayscale’s ETHE and its Mini ETH fund underscores the critical importance of management fees in this competitive market. The higher-fee ETHE product has historically battled outflows as investors seek more cost-efficient exposure. The mini fund’s ability to attract inflows amidst a sector-wide downturn is a powerful testament to this fee sensitivity. This dynamic pressures all issuers to continuously evaluate their fee structures to retain and attract capital. Furthermore, product differentiation beyond fees—such as staking yield integration for Ethereum ETFs—remains a topic of intense discussion and could be a future catalyst for flow reversals if approved by regulators.
Expert Perspective on Market Phases
Market analysts often describe the flow patterns of new financial instruments as moving through distinct phases: adoption, normalization, and maturity. The current outflow trend for spot Ethereum ETFs likely represents the normalization phase, where initial excitement subsides and flows become dictated by fundamental and technical factors rather than novelty. This phase is crucial for establishing a stable baseline of assets under management. Data from traditional finance indicates that ETFs surviving this normalization phase often go on to see sustained, long-term growth as they become entrenched components of investor portfolios.
Potential Implications for the Ethereum Ecosystem
Sustained outflows from spot ETFs, while concerning for fund issuers in the short term, do not necessarily reflect a negative long-term outlook for Ethereum itself. The ETFs represent just one channel for institutional exposure. However, large-scale redemptions can create indirect selling pressure on the underlying market if the authorized participants facilitating the ETF creation/redemption process need to sell ETH to raise cash. Monitoring the relationship between ETF flow data and on-chain exchange flows provides a more complete picture of net market selling pressure. The resilience of the Ethereum network, measured by metrics like active addresses, transaction volume, and total value locked in DeFi, often provides a more fundamental health check than secondary market fund flows alone.
Conclusion
The fourth consecutive day of net outflows from U.S. spot Ethereum ETFs, totaling $41.7 million on January 23, 2025, highlights a period of reassessment for this investment vehicle class. While leading funds from BlackRock and Grayscale faced withdrawals, the inflow into Grayscale’s lower-cost mini fund reveals an active, fee-sensitive investor base. These spot Ethereum ETF outflows represent a natural maturation phase following their launch, influenced by fees, market sentiment, and the performance of the underlying ETH asset. As the market digests this data, the long-term success of these products will depend on their ability to offer efficient, compliant exposure to Ethereum’s evolving value proposition, navigating both crypto-native and traditional financial currents.
FAQs
Q1: What does a “net outflow” mean for an ETF?A1: A net outflow occurs when the total value of shares redeemed from an ETF exceeds the total value of shares created or purchased on a given day. It indicates that more investors are withdrawing money from the fund than are adding money.
Q2: Why is Grayscale’s Mini ETH fund seeing inflows while its main ETHE fund sees outflows?A2: The primary reason is the significant difference in management fees. The Mini ETH fund charges a much lower fee, prompting cost-conscious investors to shift their capital from the higher-fee ETHE product to maintain exposure to Ethereum at a lower cost.
Q3: Do ETF outflows directly cause the price of Ethereum to drop?A3: Not directly, but they can contribute to selling pressure. When shares are redeemed, the authorized participant may need to sell some of the underlying ETH held by the fund to pay the redeeming investor, which can increase sell orders on the market.
Q4: Is a four-day outflow trend unusual for a new ETF?A4: It is not uncommon. New ETFs often experience volatile flows after their launch period as the market finds an equilibrium. Periods of outflows can follow initial inflows as early investors take profits or rebalance portfolios.
Q5: Where can investors find reliable data on daily ETF flows?A5: Analytics firms like Farside Investors, Bloomberg, and ETF.com compile and publish daily flow data for ETFs, including cryptocurrency funds. Fund issuers like BlackRock and Grayscale also report assets under management (AUM) figures, from which flow trends can be inferred.
This post Spot Ethereum ETFs Face Relentless Pressure: Fourth Straight Day of Net Outflows Hits $41.7 Million first appeared on BitcoinWorld.
Bitcoin payments gaining traction in places like Las Vegas shows how digital currencies are finding their way into everyday life—sometimes it’s all about convenience and choice at the register.
CryptonewsCom
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Las Vegas Businesses Ditch Credit Card Fees for Bitcoin Payments
Las Vegas Valley businesses, from restaurant chains to small juice bars, are embracing Bitcoin payments as mainstream adoption accelerates, with companies avoiding credit card processing fees averaging 2.5% to 3.5% while tapping into a growing customer base actively seeking crypto-friendly merchants.
The shift follows Square’s November 2025 decision to enable roughly 4 million U.S. merchants to accept Bitcoin payments with zero processing fees through 2026.
According to Fox5Vegas, at Cane Juice Bar and Cafe on Rainbow near Windmill, district manager Tyler Peterson serves fresh-pressed sugar cane juice that customers can pay for with cash, card, or Bitcoin after eight months of crypto implementation.
“Bitcoin is getting very popular with mainstream people, not just the people that are actually into things like cryptocurrencies,” Peterson said, noting the payment option helps the business “move forward” while attracting new customers who specifically seek Bitcoin-accepting locations.
According to FOX5, more businesses across Las Vegas are now accepting Bitcoin payments, from chains like Steak ’n Shake to small shops and medical practices. Merchants said Bitcoin helps attract new customers and cut costs, while Square has enabled about 4 million U.S. merchants…
— Wu Blockchain (@WuBlockchain) January 24, 2026
Small Business Growth Through Bitcoin Maps
Peterson confirmed customers who normally wouldn’t know about his shop come in specifically to use Bitcoin, with calls and inquiries arriving regularly.
“So actually some customers we have generated off of accepting Bitcoin,” Peterson said. “That Bitcoin map is helping us out a lot.”
Consumers can locate Bitcoin-accepting businesses through dedicated Bitcoin maps or Cash App’s directory feature, creating organic discovery channels for merchants willing to accept crypto payments.
Jeremy Querci, a Bitcoin consultant with Sovreign, explained that businesses accepting Bitcoin now range from medical practices to juice bars to children’s play places, with payment processing requiring just a few taps on a phone.
“At the time of checkout, you say you want to pay in Bitcoin and the business can bring up a QR code that you scan with your phone with any Bitcoin app,” Querci said, while Peterson asserted the technology will become progressively easier as “it’s the future.”
National Chains Lead Corporate Bitcoin Adoption
The momentum extends beyond small businesses into major restaurant chains, with Steak ‘n Shake announcing this week plans to pay all hourly employees at company-operated restaurants a Bitcoin bonus of $0.21 for every hour worked starting March 1, with funds accessible after a two-year vesting period.
Steak 'n Shake announces Bitcoin hourly bonus for workers starting March 1, expanding its treasury strategy that contributed to 15% same-store sales growth.#Bitcoin #Salaryhttps://t.co/HjlPK3TLtN
— Cryptonews.com (@cryptonews) January 21, 2026
CEO Will Reeves positioned the move as part of the 91-year-old burger chain’s transformation into “a real bitcoin company, putting sound money into the hands of working Americans.“
Lightning Network payments enabled across all U.S. Steak ‘n Shake locations in mid-May 2025 brought transaction fee savings of nearly 50% compared with credit cards, alongside roughly 15% increases in same-store sales in the months following launch.
The rollout received public backing from Jack Dorsey, who enthusiastically endorsed the chain’s Bitcoin adoption plans when the company first polled followers about accepting crypto.
Cash App rolled out Bitcoin Lightning payments and stablecoin transfers in November 2025, allowing eligible users to pay over the Lightning Network in seconds with no fee using either BTC or USD balances after scanning a Lightning QR code.
The app introduced Bitcoin Map, an in-app directory that helps customers find nearby Square merchants and other businesses accepting Bitcoin, enabling users to locate stores, get directions, and pay directly over Lightning at checkout.
Just yesterday, crypto payments firm Mercuryo partnered with Visa to enable near-real-time conversion of digital assets into fiat currency, allowing users to send proceeds directly to Visa debit and credit cards via Visa Direct.
“This partnership with Visa will further enhance Mercuryo’s ability to deliver a fast, low-cost user experience,” said Mercuryo co-founder and CEO Petr Kozyakov, noting the integration reduces friction historically associated with moving funds across borders or cashing out digital assets.
The corporate adoption mirrors explosive growth across the broader crypto payments landscape, with crypto card volumes surging from roughly $100 million monthly in early 2023 to over $1.5 billion by late 2025, representing a 106% compound annual growth rate, according to Artemis Analytics.
Source: Artemis
Annualized volumes now exceed $18 billion, while traditional peer-to-peer stablecoin transfers grew just 5% to $19 billion over the same period.
At the time of publication, Bitcoin is trading around $89,500, down roughly 5% over the previous week, as Bitcoin spot ETFs experienced steep outflows totaling $1.62 billion across four trading days amid compressed yields on basis trades that dropped below 5% from around 17% a year ago.
The post Las Vegas Businesses Ditch Credit Card Fees for Bitcoin Payments appeared first on Cryptonews.
Whale transactions like these can be a form of digital housekeeping or strategic repositioning. While big numbers get headlines, they remind us that behind the scenes there’s often steady portfolio management at work.
BlockchainReporter
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Bitcoin Whale Transactions Throughout the Week Show Big Institutional Decisions
The whole week has witnessed several staggering developments related to Bitcoin ($BTC). In this respect, a staggering $20B Bitcoin transfer has gained notable attention. As per the data from the CryptoQuant analyst, Maartunn, another key development of the week includes GameStop’s shift of Bitcoin treasury to Coinbase Prime. Additionally, Strategy has purchased a massive 22,305 $BTC.
The exclusive market data points out that the big Bitcoin moves have shaken the entire crypto market throughout this week. Specifically, a prominent development takes into account the transfer of up to 224,248 $BTC from one address to another. Thus, the huge $20B transfer has triggered a broader speculation among the market participants.
As the analysts put it, this may denote a UTXO consolidation move, primarily digital housekeeping on the hands of a big player like Bitfinex or Tether. This stunning amount is raising questions regarding the motive behind the move. Apart from that, GameStop, a popular video game retailer in the U.S., has made a key shift in the case of its Bitcoin ($BTC) treasury.
GameStop Shifts All 4,710 $BTC to Coinbase Prime, Igniting Liquidation Concerns
Particularly, GameStop has moved the entirety of its 4,710 $BTC coins to Coinbase Prime. This decision presents a solid liquidation intent. Back in May 2025, the company purchased the holdings at the per-coin price of $108,000. Hence, quitting now could lead to a $76M loss for the platform. Additionally, this development underscores the pressure faced by corporate treasuries in the volatile market conditions.
On the other hand, a contrasting development has also occurred this week. So, Strategy, which is the biggest corporate Bitcoin ($BTC) treasury, has carried out another buyout of up to 22,305 $BTC. This purchase is the biggest since its buyouts since 2024’s latter part. This move denotes its significant conviction in Bitcoin’s potential, irrespective of the short-term volatility.
Big Institutional Decisions Highlight Potential Impact on Wider Market Narrative
According to the CryptoQuant analyst, despite this high conviction, the on-chain data discloses that almost 50% of the cumulative holdings of Strategy are at loss. Particularly, with just fifty-three percent in profit, the buyout ignites questions over whether the platform is making a strategy for rebound or is overleveraged. Overall, these developments highlight the large institutional decision regarding the leading crypto asset and could play a crucial role in shaping the wider narrative in the near term.
Crypto markets have their ups and downs, and metrics like BTC Net Realized PnL capture some of the human reactions behind the numbers. It’s a complex picture that often takes time to settle.
Coinfomania
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Bitcoin Enters Deep Reset Phase As Selling Pressure Intensifies
Bitcoin has entered a critical phase as BTC Net Realized PnL falls to levels unseen since March 2022. This sharp drop signals widespread realized losses across the network. Investors now absorb losses at a pace similar to past capitulation events. Market participants are watching closely as fear reshapes short term expectations.
This metric reflects the net profit or loss realized when coins move on chain. A negative reading shows more losses than gains across transactions. When BTC Net Realized PnL plunges deeply, it often reflects emotional selling. Such moments historically appear during intense market stress periods.
The current reading arrives during heightened uncertainty across global markets. Risk assets continue to face pressure from macroeconomic tightening. Bitcoin now sits at the center of shifting crypto market sentiment. Traders and long term holders both react to rising volatility.
NEW: $BTC Net Realized PnL dropped to a level we haven't seen since March 2022. pic.twitter.com/NRFcxjw2ny
— Cointelegraph (@Cointelegraph) January 24, 2026
What BTC Net Realized PnL Really Tells Us About Investor Behavior
BTC Net Realized PnL measures the balance between realized gains and losses across Bitcoin transactions. When investors sell coins below their acquisition price, the metric turns negative. This shift reveals pain across market participants. It captures emotional responses rather than price alone.
Deep negative values suggest panic selling across the network. Holders accept losses instead of waiting for recovery. This behavior often appears during market resets. Bitcoin on-chain data helps identify these moments clearly.
During March 2022, similar readings followed aggressive risk off conditions. Bitcoin later stabilized after extended consolidation. While history never repeats perfectly, patterns often rhyme. BTC Net Realized PnL acts as a psychological stress gauge.
Why the March 2022 Comparison Matters Right Now
March 2022 marked a major turning point for Bitcoin markets. Global liquidity tightened and risk appetite collapsed. Investors rushed to reduce exposure. BTC Net Realized PnL reflected heavy capitulation during that period.
The current decline mirrors that emotional intensity. Sellers now dominate transaction flows. Many short term holders exit positions under pressure. This behavior drags crypto market sentiment lower.
However, past data shows capitulation phases rarely last forever. They often clear weak hands from the market. Bitcoin on-chain data suggests long term holders reduce selling during such periods. That dynamic sometimes creates a base for recovery.
Short Term Holders Feel the Heat as Losses Accelerate
Short term holders typically drive realized losses during market stress. These participants often buy near local highs. When prices drop, fear accelerates selling decisions. BTC Net Realized PnL captures this shift clearly.
Recent data shows increased coin movement from younger wallets. These holders respond quickly to volatility. Their exits amplify downward pressure. Crypto market sentiment weakens further as losses stack up.
How On Chain Metrics Shape Market Expectations
Bitcoin on-chain data offers insight beyond price charts. It reveals how different investor groups behave under stress. BTC Net Realized PnL stands out during extreme conditions. Traders use it to identify potential exhaustion points.
Negative spikes often align with late stage sell offs. They show that fear dominates rational decision making. When losses peak, selling pressure can fade. Crypto market sentiment sometimes shifts quietly before price reacts.
What This Means for Bitcoin’s Near Term Outlook
The sharp drop in BTC Net Realized PnL confirms heavy stress across the network. Selling pressure remains elevated. Volatility may persist as markets digest uncertainty. Bitcoin on-chain data supports a cautious stance.
However, capitulation phases often plant seeds for stabilization. When sellers exhaust themselves, price can consolidate. Crypto market sentiment may improve gradually rather than instantly. Patience matters during these phases.
Long term investors often watch these moments closely. They focus on risk management instead of prediction. BTC Net Realized PnL provides context, not guarantees. Markets still respond to liquidity, regulation, and global conditions.
The post Bitcoin Enters Deep Reset Phase as Selling Pressure Intensifies appeared first on Coinfomania.
It’s interesting to see the mix of opinions about the quantum timeline, but regardless of when it arrives, proactive steps like these help ensure blockchain security stays ahead of the curve. Progress in cryptography never hurts!
CryptonewsCom
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Ethereum Launches $2M Quantum Defense Team as Threat Timeline Accelerates
The Ethereum Foundation has officially elevated quantum resistance to a top strategic priority with the formation of a dedicated Post Quantum team backed by $2 million in funding.
The new initiative comes as blockchain networks face mounting pressure to defend against quantum computing threats that industry experts increasingly warn could materialize within years rather than decades.
Ethereum researcher Justin Drake announced the team formation on Friday, revealing that Thomas Coratger will lead the effort alongside Emile, a core contributor to leanVM.
“After years of quiet R&D, EF management has officially declared PQ security a top strategic priority,” Drake said, adding that the foundation has been developing its quantum strategy since a 2019 presentation at StarkWare Sessions.
Today marks an inflection in the Ethereum Foundation's long-term quantum strategy.
We've formed a new Post Quantum (PQ) team, led by the brilliant Thomas Coratger (@tcoratger). Joining him is Emile, one of the world-class talents behind leanVM. leanVM is the cryptographic…
— Justin Drake (@drakefjustin) January 23, 2026
Foundation Commits Resources Across Multiple Fronts
The Ethereum Foundation is launching comprehensive defensive measures spanning research, development, and infrastructure testing.
Antonio Sanso will kick off bi-weekly All Core Devs Post Quantum breakout calls next month, focusing on user-facing security, including dedicated precompiles, account abstraction, and transaction signature aggregation with leanVM.
The foundation announced two $1 million prize competitions to strengthen cryptographic foundations.
The newly launched Poseidon Prize targets the hardening of the Poseidon hash function, while the existing Proximity Prize continues to drive hash-based cryptography research.
“We are betting big on hash-based cryptography to enjoy the strongest and leanest cryptographic foundations,” Drake stated.
Multi-client post-quantum consensus development networks are already operational, with pioneer teams including Zeam, Ream Labs, PierTwo, Gean client, and Ethlambda working alongside established consensus clients Lighthouse, Grandine, and Prysm.
Weekly post-quantum interop calls, coordinated by Will Corcoran, are managing collaborative technical development across these diverse implementation teams.
The foundation will host a three-day expert workshop in October, bringing together top specialists from around the world, building on last year’s post-quantum workshop in Cambridge.
An additional dedicated post-quantum day is scheduled for March 29 in Cannes, ahead of EthCC, to create multiple forums for advancing research and coordination across the global Ethereum development community.
Industry Voices Split on Timeline Urgency
The quantum threat has divided blockchain leaders on both timeline predictions and strategic priorities.
Independent Ethereum educator sassal.eth called quantum computing “a very real threat for blockchains” that is “coming sooner than most people think,” praising the foundation’s defensive preparations.
Pantera Capital General Partner Franklin Bi predicted that traditional financial institutions will struggle with the transition to post-quantum cryptography.
“People are over-estimating how quickly Wall Street will adapt to post-quantum cryptography,” Bi said, adding that blockchain networks possess unique capabilities for system-wide upgrades at a global scale.
The post-quantum race begins.
My prediction:
People are over-estimating how quickly Wall Street will adapt to post-quantum cryptography. Like any systemic software upgrade, it'll be slow & chaotic with single points of failure for years. Traditional systems are only as strong… https://t.co/6mEdFKcXrm
— Franklin Bi (@FranklinBi) January 23, 2026
He argued that successful quantum resistance could transform select blockchains into “post-quantum safe havens for data and assets,” particularly as traditional systems face prolonged periods of vulnerability due to single points of failure.
Bitcoin community assessments remain sharply contested. Vitalik Buterin previously shared Metaculus data showing a median 2040 timeline for quantum computers breaking modern cryptography, with roughly a 20% probability before the end of 2030.
Metaculus's median date for when quantum computers will break modern cryptography is 2040:https://t.co/Li8ni8A9Ox
Seemingly about a 20% chance it will be before end of 2030.
— vitalik.eth (@VitalikButerin) August 27, 2025
Blockstream CEO Adam Back has dismissed near-term concerns, claiming practical threats remain decades away and accusing critics of creating unnecessary market alarm.
Project ZKM contributor Stephen Duan acknowledged transition challenges while calling quantum resistance “inevitable,” noting that his team will soon upgrade multiset hashing to a lattice-based construction.
ZKsync inventor Alex Gluk also said the network’s Airbender prover is already “100% PQ-proof,” highlighting Ethereum’s unmatched ability to adapt to emerging threats while maintaining its position as the global financial settlement layer.
Foundation Plans Comprehensive Roadmap Release
The Ethereum Foundation will publish detailed strategic guidance on pq.ethereum.org covering full transition planning to achieve zero loss of funds and zero downtime over the coming years.
Drake highlighted recent artificial intelligence breakthroughs in formal proof generation, noting that specialized mathematics AI recently completed one of the hardest lemmas in hash-based SNARK foundations in a single eight-hour run costing $200.
The foundation is developing educational materials, including a six-part video series with ZKPodcast and enterprise-focused resources through EF Enterprise Acceleration.
Quantum Threatens $600B of Bitcoin @nic_carter joins me for an in-person @PodcastDelphi to cover his 6 months of research on Quantum's effect on $BTC
Nic's first and only podcast on Quantum
Listen directly here, or on any of the links below pic.twitter.com/CSnv7xekqn
— Tommy (@Shaughnessy119) January 9, 2026
Ethereum now has representation on the post-quantum advisory board, Coinbase announced this week, bringing together leading cryptography researchers to assess long-term blockchain security risks as quantum computing capabilities advance across government and private-sector development programs.
The post Ethereum Launches $2M Quantum Defense Team as Threat Timeline Accelerates appeared first on Cryptonews.
The Ethereum Foundation’s move to prioritize post-quantum cryptography reflects the evolving landscape of digital security. Preparing now could help avoid surprises down the road, especially as technology advances.
Yellow Media
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Ethereum Treats Quantum As Imminent Threat: $2M Emergency Team Deployed
The Ethereum Foundation has formally elevated post-quantum cryptographic security to a core strategic priority, announcing the creation of a dedicated Post Quantum team and a series of initiatives aimed at hardening the network against future quantum computing threats.
In a post on X, Ethereum Foundation researcher Justin Drake said the new team will be led by Thomas Coratger, with support from cryptography contributor Emile, known for work on leanVM.
The announcement marks a shift from years of quiet research to an active engineering phase that includes coordination across Ethereum’s core engineering community.
From Research To Network-Wide Execution
The foundation plans bi-weekly All Core Devs breakout calls focused on post-quantum transactions, including work on dedicated precompiles, account abstraction, and transaction signature aggregation using leanVM.
Multi-client post-quantum consensus test networks are already operational, involving teams such as Lighthouse, Grandine, Zeam and Prysm, coordinated through weekly interoperability sessions.
Also Read: Ethereum Emerges As Backbone Of Tokenized Finance, BlackRock 2026 Outlook Shows
Funding, Devnets And Cryptographic Bets
To spur research, the Foundation announced two $1 million prize initiatives: a new Poseidon Prize aimed at strengthening the Poseidon hash function, and the existing Proximity Prize supporting broader post-quantum cryptographic work.
These bounties reflect a strategic investment in hash-based cryptographic foundations that Ethereum believes will offer strong, efficient security against quantum capabilities.
The Foundation also outlined plans for future events, including a three-day post-quantum workshop in October and a dedicated PQ day ahead of EthCC, to convene experts and developers around advancing post-quantum implementations.
A full roadmap will be published on a forthcoming pq.ethereum.org site, targeting a transition with zero fund loss and zero network downtime.
Why It Matters
The move comes amid broader industry attention to quantum computing’s potential to disrupt cryptographic systems.
While quantum computers capable of breaking current encryption do not yet exist, experts have long warned of the need for post-quantum cryptography to protect blockchain networks built on public-key algorithms now in use.
Ethereum’s accelerated push highlights a proactive approach to long-term security that bridges research and practical development, positioning the network to adapt before quantum computing advances threaten existing cryptographic assumptions.
Read Next: SEC Dismisses Gemini Lawsuit With Prejudice After $900M Return
Ethereum Spot ETFs Experience Significant Net Outflows
Ethereum spot ETFs saw a net outflow of $611 million during the trading week from January 19 to January 23, according to PANews. The Blackrock ETF ETHA recorded the highest net outflow of $432 million, bringing its total historical net inflow to $12.51 billion. Fidelity's ETF FETH followed with a weekly net outflow of $78.03 million, with its historical net inflow reaching $2.59 billion.
Conversely, the Grayscale Ethereum Mini Trust ETH experienced the highest net inflow among Ethereum spot ETFs, amounting to $17.82 million for the week, with a total historical net inflow of $1.64 billion.
As of the time of reporting, the total net asset value of Ethereum spot ETFs stands at $17.7 billion, with an ETF net asset ratio of 4.99% relative to Ethereum's total market capitalization. The cumulative historical net inflow has reached $12.3 billion.
Bitcoin(BTC) Drops Below 89,000 USDT with a 1.04% Decrease in 24 Hours
On Jan 25, 2026, 03:30 AM(UTC). According to Binance Market Data, Bitcoin has dropped below 89,000 USDT and is now trading at 88,974.828125 USDT, with a narrowed 1.04% decrease in 24 hours.
Zama, a privacy protocol, announced on platform X that its auction contract has entered the settlement phase following the conclusion of the public sale. According to Odaily, bids sold through platforms like CoinList will be included in the public auction contract. Participants will be able to view the final allocation results on the official platform in the coming days, with the claim date set for February 2. Previously, it was reported that 7,651 investors participated in Zama's public sale, submitting 17,446 bids and raising over $121 million.
Michael Saylor Defends Bitcoin Strategy Against Critics
On January 12, 2026, Michael Saylor, founder of Strategy, expressed strong displeasure with critics of his Bitcoin investment approach during the What Bitcoin Did podcast. According to NS3.AI, Saylor described the skepticism as 'ignorant and offensive.' He firmly rejected doubts regarding his Bitcoin strategy, reinforcing his commitment to it.
Brazil's Central Bank Issues Guidelines for Crypto Businesses
Brazil's Central Bank has released new regulations for banks and brokerage firms seeking to engage in cryptocurrency activities. According to PANews, these institutions are required to hire a qualified independent company to verify their compliance with the monetary authority's regulations for virtual asset service providers (PSAV). The certifying entity must clearly demonstrate that there is no conflict of interest with the audited party.
Blockchain Applications Transition to Dedicated App Chains for Enhanced Control
Blockchain applications are increasingly moving towards establishing their own dedicated app chains as they mature and scale. According to NS3.AI, this shift is driven by the desire to enhance user experience control and optimize revenue streams. The transition marks a significant evolution for applications following product validation and the stabilization of trading behaviors.
U.S. Advances as Global Cryptocurrency Hub Under Trump's Leadership
The White House announced that under the leadership of U.S. President Donald Trump, the United States has become the world's cryptocurrency capital. According to Odaily, the new Chairman of the U.S. Commodity Futures Trading Commission, Mike Selig, responded by stating that there is no better place for entrepreneurship than the 'world's cryptocurrency capital.' The Commission is currently modernizing its rules and regulations to ensure that the future of cryptocurrency and on-chain finance is 'Made in America.'
US Senate Democrats Oppose Funding Bill with Immigration Enforcement
Senate Democrats have expressed their willingness to allow a partial government shutdown rather than support a funding bill that includes immigration enforcement funds. According to BlockBeats, this stance was reported by The Wall Street Journal on January 25.The decision follows a fatal shooting incident in Minneapolis. Senate Minority Leader Chuck Schumer, a Democrat from New York, stated that the events in Minnesota are shocking and unacceptable in any U.S. city. He emphasized that Senate Democrats will not provide the necessary votes for the Republican-backed funding proposal if it includes funding for the Department of Homeland Security.
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