%20(7).png)
Welcome to this week’s Web3 Digest by Magnet! The crypto market has hit impressive milestones in the past week, with major developments shaking up the space. Bitcoin made a stunning return to the six-figure range, fueled by surging institutional investments, while Ethereum’s latest upgrade sparked talk of a new altcoin season. Let’s take a closer look at the biggest stories from this week in the crypto industry.
Bitcoin made a dramatic return to six-figure territory this week, crossing the $100,000 mark for the first time in months. The rally caught many by surprise, with short sellers forced to liquidate nearly $400 million in bearish positions. This surge was driven by a combination of factors, including positive news about a U.S.-U.K. trade deal announced by President Trump, along with a wave of institutional inflows into spot Bitcoin ETFs, now totaling over $40 billion.
Analysts have raised their price targets for Bitcoin, suggesting it could hit $200K by year-end, thanks to ongoing momentum. How achievable is this? Time will tell.
Ethereum’s latest network upgrade, dubbed “Pectra”, went live this week, sending shockwaves through the network. The upgrade immediately triggered a massive spike in on-chain activity, so much so that Ethereum became deflationary for a 24-hour period. Over 38,000 ETH (worth approximately $80 million) was burned due to a surge in transaction demand. This reduction in supply has reignited investor interest in Ethereum.
On May 8, U.S. lawmakers introduced a comprehensive "Crypto Market Structure" bill aimed at creating a clear regulatory framework for digital assets and Web3 startups. The bill seeks to clarify jurisdiction between agencies like the SEC and CFTC, define the status of tokens (securities or commodities), and protect consumers without stifling innovation.
Industry leaders are cautiously optimistic. If passed, the bill could reduce regulatory uncertainty and encourage investment, positioning the U.S. as a global crypto hub. However, it's still in draft form, and its future remains uncertain.
Coinbase has finalized an agreement to acquire Deribit, the world's largest crypto options exchange, for $2.9 billion. This landmark deal gives Coinbase control of nearly 80% of global crypto options trading volume. By integrating Deribit’s platform, Coinbase will expand its offering to include both spot and derivatives products, boosting liquidity and positioning itself as a comprehensive hub for crypto trading. This acquisition signals the rising demand for crypto options and reflects a larger trend of exchanges bridging the gap between crypto and traditional finance, catering to both retail and institutional clients.
Hyperliquid has made a significant leap, increasing its market cap by $1.3 billion in just one week. Over the past month, HYPE surged by 90%, pushing its market cap from $7 billion to $8.3 billion. This impressive growth follows the exchange’s strategic move to support USDT deposits through the launch of USDT0. This decision is expected to drive up TVL on the platform, attracting more traders and further solidifying its position. With the platform’s continuous expansion and new features, Hyperliquid seems poised to attempt a new ATH in the coming weeks.
Stay tuned for next week’s Web3 Digest! The market is gaining momentum, and staying up-to-date has never been more crucial. As the landscape evolves rapidly, we’re here to keep you informed and ahead of the curve. Be prepared for what’s next in the world of Web3, and stay on top of the shifting tides with Magnet.
