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USDC burns 51 million tokens on Ethereum to stabilize the supply and peg.
Spot Ethereum ETFs post record $796 million weekly outflows as ETH dips below $4,000.
SEC clears ETF delays, Aster surges in fees, while Poland passes strict crypto law.
The cryptocurrency landscape continues to be dynamic, with developments including stablecoins, ETFs, decentralized exchanges, and global regulation. From mass burning of tokens to major outflows in Ethereum ETFs to new regulatory measures in Europe, here's a detailed look at some of the recent news shaping the digital asset markets.
In an attempt to control the supply and maintain its US dollar peg, the USDC Treasury burned 51 million tokens from the Ethereum blockchain. The burn was flagged by Whale Alert and confirmed by BlockBeats: it demonstrates the transparency of on-chain monitoring.
Stablecoin issuers often control the circulation of the coin through mints and burns in order to keep the coin liquid and stable, especially during volatile market conditions.
Ethereum ETF had $795.56 million in outflows for the week ending September 26th. This broke the previous record set earlier in the month, along with Ether's dip below $4,000.
Daily outflows topped out at $250 million on Thursday and Friday, the steepest two-day sell-off since August. Fidelity's FETH fund took the lead with $362 million in withdrawals, followed by BlackRock's ETHA fund losing over $200 million.
Despite the mass exodus, trading volumes were fresh and high, with trading volumes exceeding $10 billion for the week, which reflects institutional interest as well, in contrast to short-term bearishness.
Also Read: Ethereum Falls Below $4,000: Is a Bigger Drop Coming?
The long-awaited launch of Hypurr NFTs on Hyperliquid's Layer-1 blockchain was overshadowed by a security breach. The collection, designed as a reward for early supporters, was automatically mailed to 4,600 addresses
However, blockchain investigation firm ZachXBT uncovered eight NFTs belonging to hacked wallets that were stolen in a transaction that made the attacker about $400,000.
The attack raised concerns about wallet security, particularly now with the $12 billion HYPE token coming. Despite this setback, Hyperliquid is still maintaining its ecosystem expansion.
The platform recently launched permissionless spot quote assets, enabling stablecoin issuers to enable quote status on-chain without any prior permission. USDH, backed by cash and US Treasuries, was the first asset under the new form, and HYPE/USDH trading began.
Decentralized exchange Aster has surged up the DeFi rankings and traded $14.33 million in trading fees in the last 24 hours, second to Tether globally. In the last week, Aster received $69.6 million in fees, totaling $75 million in 30 days.
According to DeFiLlama, Aster recorded $206.9 million of DEX volume in a single day and $3.3 billion in seven days. It ranks as the 11th largest protocol globally. Notably, Aster's Perpetual Futures trading volume reached $62.5 billion in 24 hours, with almost $908 billion in the last month.
Launched on BNB Chain, Aster now wants to move to its own dedicated Layer-1 blockchain (Aster Chain), which is currently undergoing internal testing. The project has received a lot of attention, as its token soared almost 1,900% since going live, peaking at over a $3 billion market cap.
Binance founder Changpeng Zhao (CZ) has publicly come out to support Aster, stating that his role with the project is restricted to providing product and technology guidance.
The US Securities and Exchange Commission (SEC) has dropped the procedural delays for pending crypto ETF applications. The decision paves the way for final rulings on funds tied to Solana, XRP, Hedera, Litecoin, Cardano, and other assets next month.
This is the first test of the SEC's new generic ETF listing framework, which will be effective on October 1 and drops lengthy review cycles. Asset managers, such as Bitwise, VanEck, Fidelity, Franklin, WisdomTree, CoinShares, Invesco Galaxy and 21Shares, stand to benefit.
The SEC also relaxed restrictions on staking-enabled Ethereum ETFs, enabling issuers such as BlackRock, Fidelity, and VanEck to make progress with products that offered both spot exposure and staking yields.
Exchanges like Nasdaq, NYSE Arca, and CBOE BZX have already filed amendments to incorporate the new framework.
Also Read: Fed Rate Cut: How is Bitcoin positioned for a potential bullish move in the coming months?
In Europe, Poland's lower house of parliament has enacted the Crypto Asset Market Act, mandating that all crypto service providers obtain a license from the Polish Financial Supervision Authority (KNF)
Violators face fines of up to 10 million zlotys ($2.8 million) and 2 years in jail. A six-month transition period will give firms the time to comply.
Critics believe the law, as the law is regarded as having the toughest crypto regulation in the EU, could have a negative effect on the three million crypto holders in Poland, putting a lid on innovation and liquidity. The bill now goes to the Senate for review.
1. Why did the USDC Treasury burn 51 million tokens?
To manage supply and maintain its peg to the US dollar during volatile market conditions.
2. What triggered $796 million outflows from Ethereum ETFs?
ETH’s fall below $4,000 sparked heavy withdrawals, led by Fidelity and BlackRock’s funds.
3. What happened with Hyperliquid’s Hypurr NFTs?
A $400,000 exploit saw NFTs stolen from compromised wallets shortly after the airdrop.
4. Why is Aster gaining attention in DeFi?
It earned $14.3 million in daily fees, ranking 2nd globally, and is planning its own Layer-1 chain.
5. What does Poland’s new crypto law mean?
Crypto firms must obtain a KNF license or face fines up to $2.8 million and two years in prison.
