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Welcome to this week’s Web3 Digest — where signals break through the noise. From global tensions shaking the markets to record-breaking adoption in staking, NFTs, and AI-powered dApps — the space isn’t slowing down. Institutional flows, product growth, and macro forces are colliding in real time — and the smartest builders and investors are watching closely. Here’s your snapshot of what actually moved Web3 this week.
Bitcoin dropped from $106K to below $103K after Middle East Escalation, sparking a wave of risk-off sentiment. ETH fell 7%, XRP dropped 5%, and SOL plunged nearly 9%. Meanwhile, gold and oil surged by 1.1% and over 8% respectively. Over $427M in long positions were liquidated, catching traders off guard. Analysts note BTC showed a similar pattern in October 2024 — an initial drop followed by a rebound.
The crypto market is heating up across all major verticals. Daily active wallets surged to 25 million — an 8% jump that signals rising user participation and broader Web3 ecosystem traction. DeFi is regaining dominance, with total value locked (TVL) climbing 25% to a staggering $200B, fueled by renewed investor confidence and yield opportunities that are finally outpacing traditional finance again. NFTs aren’t dead. Trading volume is up 40%, led by a new wave of activity around Ethereum-linked domain assets, generative abstract art, and Telegram-native collectibles gaining viral traction. But the real breakout is happening in AI-powered dApps, which saw daily users spike 23% to 4.8 million. With engagement now rivaling DeFi and gaming, AI is proving it’s not just hype — it’s becoming core infrastructure for the next phase of onchain activity.
Nasdaq has officially expanded its benchmark Nasdaq Crypto US Settlement Price Index (NCIUS) to include four additional digital assets: XRP, SOL, ADA, and XLM. This update reflects a broader approach to crypto market representation beyond just Bitcoin and Ethereum. This marks a significant step toward more inclusive representation of digital assets within regulated financial products. Nasdaq has also submitted a proposed rule change to enable the ETF to eventually hold up to nine cryptocurrencies—including LINK, LTC, and UNI—pending SEC approval later this year. If approved, this shift could pave the way for more diversified crypto ETFs and greater institutional access to mid-cap altcoins. This update marks a turning point in how traditional finance engages with digital assets, moving from selective exposure to a more holistic approach. Mid-cap altcoins might be next in line for institutional inflows.
Ethereum staking has surged to a record high, with over 34.8 million ETH locked in staking contracts—now accounting for approximately 28–29% of the total circulating supply. This trend reflects growing confidence and long-term conviction among ETH holders, who prefer locking their tokens in staking to earn yield rather than sell. The increased share of staked ETH is a bullish signal for network security and scarcity, reducing the pool available for sale and potentially exerting upward pressure on price. Moreover, the surge aligns closely with ETH prices reclaiming ~$2.7–2.8K levels, as investors continue to accumulate on‑chain rather than cashing out.
Stablecoins are rapidly evolving from a niche financial tool into a mainstream necessity for businesses of all sizes. According to Coinbase, interest among Fortune 500 executives has surged from just 8% in 2024 to nearly 29% in 2025, with about 7% already holding or using stablecoins in their operations. Small and medium-sized businesses are showing even stronger enthusiasm—81% are exploring stablecoin solutions, up from 61% last year, with 46% planning to adopt crypto within the next three years. These shifts reflect a firm move away from high fees and slow settlement cycles, as enterprises look for faster, cheaper, and more efficient payment options.
Usage metrics reinforce this shift: stablecoin transaction volumes reached a record $719 billion in December 2024 and $717 billion in April 2025, bringing yearly totals to $27.6 trillion—surpassing Visa and Mastercard’s combined volume in 2024. This surge is attracting giants like Walmart, Amazon, and Societe Generale, all exploring or launching their own stablecoins to capitalize on seamless cross-border payments and reduced transaction costs. With the U.S. Senate advancing the GENIUS Act and regulators signaling openness, stablecoins are quietly but surely becoming the backbone of the future business economy.
Pudgy Penguins, a popular NFT brand, has announced a new partnership with NASCAR, bringing its iconic “Pengu” mascot into the fast-paced world of motorsports. The collaboration will feature Pudgy Penguins across fan content and promotional materials — and comes just ahead of launch of its Telegram-based game, Pengu Clash. Together, the moves signal a coordinated marketing push that bridges digital gaming and real-world entertainment.
This partnership marks the latest step in Pudgy Penguins’ strategy to evolve beyond the “just a JPEG” label. By expanding into physical toys, mobile games, retail, and now sports, the brand is positioning itself as a full-fledged mainstream brand — not just an NFT collection.
Despite broader NFT market weakness comparing with last years — Pudgy Penguins has remained resilient thanks to its multi-channel approach. Still, its native token $PENGU is struggling, down roughly 84% from its all-time high. By entering NASCAR’s high-visibility ecosystem, Pudgy Penguins is betting on renewed cultural relevance. Whether it’s enough to drive a token recovery remains to be seen — but the brand is clearly playing the long game, blending Web3 roots with Web2 reach.
🧲 As adoption scales and narratives collide, the fight for user trust, liquidity, and control is heating up. Web3 is no longer niche — it’s becoming foundational. Keep watching the shifts — we’ll be back next week with more from the core.
