Ethereum Outpaces Bitcoin in Derivatives Volume
Ethereum is showing signs of institutional momentum, outperforming Bitcoin in the derivatives market and growing into a core asset for those looking to bridge DeFi and TradFi. ETH now commands over 45% of perpetual futures volume, ahead of BTC’s 38%, according to OKX. That share marks a clear tilt toward Ethereum from sophisticated investors betting on its structural growth and integration into regulated financial systems.
$3K ETH Becomes the Market’s Base Case
ETH has surged 11% this month, beating Bitcoin’s 5% rise, and now trades at $2,770. With inflows into ETH ETFs accelerating and staking rates reaching record highs, institutional traders see $3,000 as a likely near-term target. According to Glassnode, even amid profit-taking, long-term holder supply continues to grow—a signal of market maturation and confidence.
Stablecoin Liquidity Surges to New High
The stablecoin market has swelled to an all-time high of $228 billion, up 17% year-to-date, per CryptoQuant. Much of that liquidity is flowing through Tron, thanks to its fast finality and deep ties with Tether. USDC has also seen major growth on exchanges, with centralized stablecoin reserves hitting $50 billion—a boost for trading and on-chain liquidity.
Tron Becomes a Liquidity Magnet
Tron led all chains in net stablecoin inflows in May, with over $6 billion in net gains, according to Presto Research. It now rivals Solana in daily active users and leads in TVL growth. Ethereum and Solana, by contrast, saw capital outflows, with users seeking higher yield and faster performance on Tron, Base, and Solana.
AI Agents Will Need Open Crypto Infrastructure
As AI agents grow more autonomous, the lack of a shared transaction layer is becoming a bottleneck. A new essay from a16z argues that crypto provides the ideal infrastructure: open, composable, and transparent. Projects like Halliday, Catena, and Skyfire are already building crypto-native rails for agent-to-agent coordination.
Coinbase and a16z Back Protocol-Level AI Rails
Major firms are stepping in to shape this new agent economy. Coinbase is investing in base-layer infrastructure to help AI agents transact without human involvement. If this momentum continues, blockchains could evolve from financial infrastructure into the core logic layer of an AI-powered internet economy.
Web3 Gaming Faces Harsh Reality Check
Despite stable user activity around 4.9 million daily wallets, Web3 gaming saw just $9 million in May funding, down from $220 million in late 2024. DappRadar attributes the slowdown to poor gameplay design, noting that several high-profile projects have folded despite strong initial funding.
BTC and ETH Remain Anchored by Institutional Conviction
Even with short-term volatility, both Bitcoin and Ethereum continue to attract institutional capital. Spot ETF flows remain robust, with Glassnode reporting daily realized profits near cycle peaks. Unlike past tops, this phase shows accumulation outweighing distribution, suggesting that macro jitters aren’t weakening core demand.
