Ethereum Hits $4,945 Surpassing 2021 All-Time High

Ethereum surged to $4,945 on Sunday, surpassing its 2021 all-time high, after Jerome Powell’s remarks hinted at rate cuts. The rally, which pushed ETH up 15% Friday alone, has been powered by ETFs (Exchange Traded Funds) demand, corporate accumulation, and regulatory clarity.

Spot Ethereum ETFs have absorbed more than $1 billion in daily inflows, now managing over $20 billion, led by BlackRock. Analysts noted ETH products are outpacing Bitcoin ETFs, reflecting shifting investor perception of Ethereum as critical financial infrastructure rather than speculative hype.

Corporations like BitMine and SharpLink Gaming have accumulated over $10 billion in ETH holdings, joining a growing roster of Ethereum treasury companies. Combined with public company reserves, these treasuries now hold more than 1.15 million ETH, deepening institutional presence in Ethereum markets.

Trump-era policy changes further fueled momentum, as the SEC clarified staking rules and the GENIUS Act formalized stablecoin regulations. With 70% of Polymarket prediction participants expecting $5,000 by August's end, traders now treat Ethereum as the infrastructure of future finance.

Stargate DAO Approves $120M LayerZero Takeover

Stargate DAO has approved a $120 million acquisition offer from LayerZero Foundation, despite last-minute rival bids from Wormhole, Axelar, and Across. Nearly 95% of voters backed the deal after LayerZero amended terms to compensate veSTG holders with six months of bridge revenue. Under the agreement, the DAO will dissolve and STG holders will swap tokens for ZRO at a fixed ratio.

Wormhole had requested a pause to present its own $120 million cash bid, moving funds into a segregated wallet to prove financing. Axelar and Across also signaled willingness to compete if given more time. Despite those overtures, Stargate finalized the LayerZero deal on Saturday, with CEO Bryan Pellegrino calling it a milestone for DAO acquisitions over $100 million.

Europe Pushes Digital Euro After US Stablecoin Law

EU policymakers are accelerating plans for a digital euro after the US approved the GENIUS Act, which set rules for its $288 billion stablecoin market. Officials fear dollar-backed tokens like USDT and USDC could further entrench American dominance in global payments if Europe lags. Discussions now include launching the CBDC on public blockchains like Ethereum or Solana.

The ECB had previously leaned toward a private, centrally controlled model but is revisiting that stance under new pressure. Sources told the Financial Times the law has shifted momentum toward decentralized infrastructure that could broaden euro adoption abroad. With China piloting the digital yuan and the UK exploring a digital pound, the EU faces an urgency to protect monetary relevance.

Japan Plans Flat 20% Tax on Cryptocurrency Gains

Japan’s Financial Services Agency will propose a tax code revision for 2026 that places crypto gains into a new bracket with a flat 20% tax. Currently, crypto income is classified as “miscellaneous” and taxed at progressive rates up to 55%, making it far costlier than stock gains. The plan also includes a three-year loss carry-forward.

The agency said it also wants to clear a path for regulated crypto ETFs by reclassifying digital assets as financial products under the Financial Instruments and Exchange Act. Separately, it will approve Japan’s first yen-pegged stablecoin, JPYC, this fall, with issuance targeted at one trillion yen over three years. Officials hope these changes will strengthen Japan’s crypto competitiveness.

Data of the Day

The first buyer of Kanye West’s new YZY token was a trader known as “Naseem,” who spent $250,000 USDC to secure 1.2 million tokens. Bubblemaps analysis shows the wallet quickly sold a portion for $535,000 and cycled liquidity through a Meteora pool to net $1.02 million. Naseem previously made $100 million trading Donald Trump’s TRUMP meme coin.

The YZY launch attempted to deter automated snipers with 25 contract addresses and dozens of decoy wallets, but Naseem still executed the first buy. Ye promoted the Solana token with a short video on X, despite criticizing celebrity coins earlier this year. Confusion initially surrounded the launch, but the team has confirmed YZY as the official project.

More Breaking News

• SharpLink authorized a $1.5B stock buyback program, aiming to repurchase shares when trading below ETH treasury value, boosting confidence as holdings exceed $3.1B.
• World Liberty’s WLFI token futures debuted near $0.41, implying a $40 billion valuation, with unlocks due September 1 and Trump’s stake potentially topping $6 billion.
• Ripple and SBI plan to distribute RLUSD stablecoin in Japan through SBI VC Trade, positioning it as a compliant, enterprise-grade alternative ahead of 2026 launch.
• Grayscale, Bitwise, and other firms amended spot XRP ETF filings, signaling responsiveness to SEC feedback, with analysts calling the cluster of updates a strong sign.
• Binance Australia was ordered by AUSTRAC to appoint external auditors within 28 days, after regulators flagged serious concerns about its anti-money laundering systems.
• VanEck filed for a JitoSOL ETF, the first spot Solana fund fully backed by liquid-staked tokens, following SEC guidance that staking isn’t securities transactions.
• Ethena approved BNB as new collateral for USDe hedges under its “Eligible Asset Framework,” with XRP and HYPE also flagged as possible future additions.
• Plasma’s yet-to-launch XPL token traded at $0.45 in pre-markets, implying a $4.5 billion valuation after Binance and Hyperliquid launched leveraged trading products.

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