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Cryptocurrency

DeFi as a solution in times of crisis

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The 2020s have been a challenging decade so far, yet the transformative power of blockchain technology offers a better path forward.

Born from crisis

Around the globe, times are tough for many everyday people. Increases in cost of living minimized any growth in wages last year as inflation continues to take its toll. Additionally, world powers such as China and Russia are increasingly challenging the dominance of the USD as geopolitical tensions flare up.

In this precarious new world, decentralized cryptocurrencies can potentially be a source of stability and freedom. Bitcoin first emerged in the wake of the 2008 banking crisis and the impact of events like the Lehman Brothers collapse is evident in the writings of Bitcoin’s pseudonymous creator Satoshi Nakamoto.

While the subprime mortgage crisis was in full swing in February 2009, Nakamoto proposed an “e-currency based on cryptographic proof” that enables secure and effortless transactions without the need for a trusted third-party middleman. But has crypto lived up to its promise so far, and can DeFi help solve the ongoing instability of the 2020s?

A better system is possible

Cryptocurrencies like Bitcoin indeed help overcome issues with the current banking and monetary system in several different ways. For example, self-custody of DeFi assets protects individual investors against risks like institutional insolvency and bank runs. The collapse of Silicon Valley Bank in March 2023 shows that even large banks are still vulnerable to failure. But instead of requiring trust that their money is still there, Web3 users can verify their holdings directly on chain.

Additionally, blockchain technology allows for a more efficient and decentralized financial landscape. The peer-to-peer network pioneered by Bitcoin means that investors can hold their own assets and transact directly with no middlemen and significantly lower fees. And unlike with traditional banks, the rise of DeFi sectors like DEXs, lending and liquid staking means individuals can now have full control over exactly how their deposited assets are used.

Inflation is yet another ongoing problem that crypto and DeFi help solve. Unlike fiat currencies, cryptocurrencies like bitcoin have a fixed total supply. This means that your holdings in BTC cannot be easily diluted like if you hold a currency such as USD. While a return to the gold standard of years past is sometimes proposed as a potential solution to inflation, adopting crypto as legal tender would have a similar effect while also delivering a range of other benefits like enhanced efficiency.

CBDCs: A potential alternative?

As global superpowers battle for financial supremacy, everyday people around the world can benefit from decentralized and censorship-resistant assets like Bitcoin. Yet because cryptocurrencies pose a threat to the dominance of the current monetary system, many governments are taking measures to issue their own centralized digital currency.

Institutions such as the Federal Reserve and European Central Bank have been actively exploring the issuance of Central Bank Digital Currencies (CBDCs). In some ways, it is possible to equate the benefits of CBDCs with the utility of crypto. For example, a so-called digital dollar could help deliver faster and cheaper transactions while expanding access to the financial system.

However, CBDCs lack several of the key benefits of cryptocurrency. For one, they are still highly centralized like traditional fiat currencies. This means that true self-custody is not possible and your assets can be frozen by financial authorities at any time. CBDCs may also not help stem issues with inflation since they still allow central banks to print money through measures like quantitative easing. Overall, CBDCs only deliver a fraction of the benefits of decentralized cryptocurrencies.

Why not CEXs?

The Web3 community proposes a better alternative. With decentralized cryptocurrencies like Bitcoin, ordinary people can enjoy the benefits of digital money without facing the same problems that plague existing fiat currencies. Especially in times of crisis, DeFi is a great way to keep your money secure and under your direct control. Yet in order for DeFi to truly explode, the user experience needs to catch up with centralized finance.

Currently, the easiest way to buy and send crypto is with a centralized exchange (CEX). Like CBDCs, users of platforms like Coinbase and Binance must sacrifice some transparency and decentralization for a streamlined user experience. But events like the FTX collapse show centralized exchanges can become over-leveraged and insolvent just like traditional banks. Since many users are unaware of the advantages of DeFi and self custody, further education is key.

While writing down your seed phrase in a secure location is harder than quickly making an account on a CEX, the benefits are definitely worth it. When you have self custody, you can always track your assets directly on the blockchain and even move your funds to a hardware wallet for extra security. Plus, investors can make solid passive income on their investments at the same time with low-volatility DeFi strategies such as stablecoin farming.

DeFi could be the answer

In addition to continued instability within our financial system, the 2020s have also featured a heightened level of geopolitical turmoil. However, decentralized finance offers the chance to safeguard our financial freedom. We must stand up together to build a fair digital economy and a better fiscal world. While DeFi already offers a range of revolutionary opportunities for small investors, the community needs to keep pushing for more applications, improved education and a better user experience in order to achieve worldwide mass adoption.

Bitcoin helped pioneer this new era, but the future envisioned by Satoshi Nakamoto requires our continued efforts. Once the mainstream population can access DeFi as easily as walking into a traditional brick and mortar bank, the sky is the limit for Web3 adoption. In the meantime, it’s important to maintain a critical lens about the potential downsides of CEXs and government attempts to replace crypto with their own watered-down digital currencies.

The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.

Wolfgang Rückerl is the CEO of Istari Vision and Entity.global. His expertise is in Web3 startups, DeFi and GameFi. 

This article was published through Cointelegraph Innovation Circle, a vetted organization of senior executives and experts in the blockchain technology industry who are building the future through the power of connections, collaboration and thought leadership. Opinions expressed do not necessarily reflect those of Cointelegraph.

Cryptocurrency

On-Chain Data Signals ‘Buy the Dip’ as Bitcoin Hashrate Hits New Highs

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Bitcoin (BTC) is down almost 7% from its all-time high (ATH), and on-chain signals are flashing a buying opportunity.

According to Darkfost, a pseudonymous analyst at the market intelligence platform CryptoQuant, this buy signal is coming from the Bitcoin Hash Ribbons indicator. This metric tracks the Bitcoin hashrate and is used to identify potential entry points during a market correction.

Is it Time to Buy the Dip?

The Hash Ribbon monitors Bitcoin mining activity and tells when miners are under stress or capitulating by comparing the 30-day and 60-day moving averages of the hashrate. Miner capitulation refers to a period when miners shut down their hardware and sell off their coin reserves to remain afloat because BTC has fallen below a certain price.

On most occasions, the capitulation coincides with the hashrate recovery. The hashrate metric tells how much computational power is required to solve complex math problems and approve transactions on the Bitcoin network. During this period of recovery, mining becomes more difficult.

Market experts say buying BTC during miner capitulation yields significant returns, and the best buy signals are seen during hashrate recoveries. Recently, Bitcoin’s hashrate has been reaching new highs, with the latest being 1.016 billion TH/S. The network’s mining difficulty also surged past 126 trillion during the last adjustment on May 30.

“We recently got a new buy signal from the Hash Ribbons indicator. This metric helps us assess the level of stress in the Bitcoin mining ecosystem. It’s not a big surprise considering that the hashrate has recently reached new all-time highs,” Darkfost stated.

Miners Are Selling Their BTC

Furthermore, the CryptoQuant analyst noted that the Hash Ribbon’s flashing a buy signal is a short-term negative. This is because miners selling their BTC to stay operational create long-term profitable opportunities.

Darkfost explained that the indicator has always been accurate except once, during the 2021 China mining ban event. Hence, the possibility of the metric being correct this time is high.

“Bottom line, this signal is telling you that buying the dip around here is a smart move,” he added.

The analysis comes as a solo BTC miner defied hashrate odds and beat mining giants to validate a block on the Bitcoin network, earning a reward worth over $330,000. Mining successes like this are extremely rare due to the high computational power required to approve transactions.

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Cryptocurrency

USD1 Stablecoin Goes Live on DWF Liquid Markets

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[PRESS RELEASE – Dubai, UAE, June 5th, 2025]

The next-generation web3 investor and market maker DWF Labs has announced that the USD1 stablecoin has gone live on DWF Liquid Markets. Its introduction means that more than 1,000 counterparties can access USD1 via DWF’s institutional-grade trading solution.

Developed by World Liberty Financial, USD1 operates as a fiat-backed stablecoin for institutional and retail traders. Custodied by BitGo, USD1 is fully backed by short-term US government treasuries, US dollar deposits, and other cash equivalents.

USD1 will form a cornerstone of DWF Liquid Markets which supports instant OTC trades using a request for quote (RFQ) model. This enables traders to tap into competitive price quotes and execute OTC trades privately with no market impact. Characterized by deep liquidity and 24/7 access, DWF Liquid Markets is optimized for facilitating large trades of leading crypto assets.

Andrei Grachev, Managing Partner at DWF Labs, said: “Stablecoin diversity is integral to supporting a robust trading ecosystem that isn’t reliant on any single dollar-based asset. The launch of USD1 on DWF Liquid Markers supports this goal, giving professional traders access to a versatile and transparent stablecoin that can serve as a base pair for all their trading activity.”

The introduction of USD1 on DWF Liquid Markets will significantly expand access to the institutional-friendly stablecoin which is fully backed by a reserve portfolio audited regularly by a leading accounting firm.

Initially launched on Ethereum and Binance Smart Chain, USD1 will eventually expand to other protocols in the future. Each token is designed to maintain a value of $1 USD and is fully backed by a reserve portfolio audited regularly by a third-party accounting firm.

 

About DWF Labs

DWF Labs is the new generation Web3 investor and market maker, one of the world’s largest high-frequency cryptocurrency trading entities, which trades spot and derivatives markets on over 60 top exchanges.

Learn more: https://www.dwf-labs.com/

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Bitcoin (BTC) Sees Highest Wallet Growth and Circulation Spikes of 2025

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Bitcoin climbed to a fresh peak in May, but upward momentum slowed as long-term holders began locking in profits. Its price has remained relatively stable this week, fluctuating within a narrow range of $103,000 to $106,000.

At the time of writing, the crypto asset trades below $105,000, which represents a minor decline over the past day. Despite the subdued price action, Bitcoin is seeing an increased user participation.

Strong BTC Network Growth

Bitcoin’s on-chain activity has spiked sharply this week, according to the latest analysis from Santiment. On May 29, the network registered 556,830 newly created wallets – the highest daily total since December 2, 2023, representing a significant surge in user growth.

Just days later, on June 2, Bitcoin saw its most active circulation day since December 8, 2024, with 241,360 BTC moved. These activity spikes coincide with Bitcoin’s price trading just below $105,000.

Santiment noted that rising network growth and token circulation are typically bullish indicators, pointing to a renewed interest and broader utility at a time when the crypto market continues to consolidate.

The latest activity comes as Bitcoin sees renewed bullish accumulation, with new whales, wallets holding 1,000+ BTC with coins aged under six months, doubling their holdings to 1.1 million BTC since March. This 600K BTC surge, which is around $63 billion, now represents 5.6% of the total supply, indicating intensified fresh capital inflows.

Unlike long-held coins, these recent buys suggest increased investor conviction. Combined with a 30% drop in exchange balances and increasing institutional adoption, market experts view this behavior as a setup for a supply squeeze.

While increased network activity and accumulation trends paint a strong demand-side picture, miner-focused metrics are now offering additional insights into the current market setup.

Bitcoin Hash Ribbons Flash Rare Buy Signal

Bitcoin’s Hash Ribbons indicator has issued a new buy signal, highlighting stress within the mining sector. The tool monitors the 30-day and 60-day hashrate moving averages to detect periods when mining becomes less profitable.

Such stress often forces miners to sell their BTC, adding short-term selling pressure. However, this has historically reflected attractive buying opportunities for long-term investors. Given Bitcoin’s hash rate has recently hit all-time highs, the emergence of this signal suggests the current market dip may be worth buying.

It’s important to note that, aside from 2021’s mining ban in China, this indicator has proven consistently reliable in identifying solid entry points.

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