Crypto markets steadied this week after early February’s sharp sell-off, but underlying conditions remain fragile. Bitcoin held above $70,000 while Ethereum stabilized, yet sentiment stayed in extreme fear. Institutional moves drove selective rallies, with BlackRock’s tokenized fund boosting Uniswap and major firms expanding tokenized finance infrastructure.
At the same time, stress persisted beneath the surface, highlighted by Bitcoin’s biggest mining difficulty drop since 2021 and continued weakness in key assets like XRP.
Momentum is returning in pockets, but risks haven’t disappeared. Read the full weekly recap to understand what’s strengthening and what could break next.
Pepe Surges Over 60% as Rising Demand and Bullish Signals Drive Rally
Pepe has jumped more than 60% from its recent lows, helped by a broader crypto rebound and strong investor demand. Trading volume exceeded $1 billion in 24 hours, while futures activity and open interest also climbed sharply. Technical indicators turned positive after the coin formed a double bottom and broke above key levels, pointing to continued upside if market momentum holds.
Morpho Surges After Anchorage Listing and Apollo Investment Deal
Morpho’s token jumped sharply to its highest level in months after securing major institutional backing. Anchorage Digital added Morpho vaults, making it easier for institutional investors to access its on-chain lending products. Morpho also struck a deal with Apollo Global Management, which plans to buy 90 million tokens over four years. Meanwhile, Morpho’s total value locked hit a record high, reflecting growing adoption and investor confidence.
David Marcus Calls for Gradual U.S. Bitcoin Reserve Strategy
David Marcus, former PayPal president and Lightspark co-founder, said the U.S. should consider converting a very small portion of its gold reserves into Bitcoin, but only gradually. He warned that rapid purchases could destabilize markets and spark political backlash. Marcus said Bitcoin’s fixed supply makes it attractive long term, but critics caution that selling gold could weaken confidence in U.S. reserves and pressure global gold prices.
Aave Proposal Would Give DAO Full Control Over Protocol Revenue
Aave Labs has proposed sending 100% of protocol and product revenue directly to the Aave DAO treasury, giving token holders full control over income and spending decisions. The plan would end Aave Labs’ fee share and shift it to a community-funded service role. In return, Aave Labs is seeking a $33 million funding package. If approved, the DAO would control funds used for development, incentives, and ecosystem growth.
Optimism Adds Zero-Knowledge Proofs to Speed Up Withdrawals
Optimism has partnered with Succinct Labs to integrate zero-knowledge proofs of validity into its OP Stack, replacing the typical 7-day withdrawal delay with near-instant settlement. The upgrade will roll out on OP Mainnet, which holds about $2 billion in total value locked, and aims to improve capital efficiency and attract institutional users. OP’s price remains steady near $0.18 as markets wait for stronger confirmation of momentum.
Coinbase Launches Crypto Wallets Designed for Autonomous AI Bots
Coinbase has introduced Agentic Wallets, a new crypto wallet built specifically for AI bots that allows them to hold funds, send payments, and interact with blockchain apps without human input. Running on Coinbase’s Base network, the wallets include strict safeguards such as spending limits and secure key protection. The system enables AI agents to operate independently while reducing the risk of unauthorized transactions or misuse.
Aster Chain to Launch Mainnet in March to Power Derivatives Trading
Aster will launch the mainnet of its custom Layer-1 blockchain, Aster Chain, in March 2026, moving its derivatives exchange to a dedicated production network. The chain uses zero-knowledge proofs to improve privacy and speed, enabling faster and more discreet trading. At launch, it will support Aster’s trading products, developer tools, and fiat access, with staking, governance, and expanded synthetic asset markets planned later in 2026.
Uniswap Surges as BlackRock Enables BUIDL Fund Trading on UniswapX
Uniswap’s UNI token jumped about 40% after BlackRock made its $1.8 billion tokenized Treasury fund, BUIDL, tradable on UniswapX and began accumulating UNI. Trading volume surged by more than 220% following the news. The move allows institutional investors to access tokenized assets through decentralized markets, marking a major step in connecting traditional finance with DeFi infrastructure.
Franklin Templeton and Binance Launch Tokenized Fund Collateral for Crypto Trading
Franklin Templeton and Binance have introduced a program that allows institutions to use tokenized shares of money market funds as collateral for crypto trades. The assets remain in regulated custody instead of being held on the exchange, reducing counterparty risk. Issued via Franklin Templeton’s Benji platform and managed with Binance’s custody partner Ceffu, the setup lets institutions trade while keeping collateral secure and earning yield.
LayerZero Jumps 22% After Revealing New Layer-1 Blockchain
LayerZero’s ZRO token surged over 22% as trading volume spiked following details of its upcoming Layer-1 blockchain, Zero. The rally gained momentum after Citadel Securities and Ark Invest bought ZRO tokens and backed the project, alongside support from Google Cloud, DTCC, and Tether. The strong institutional interest and infrastructure plans pushed the price higher after months of consolidation.
XRP Falls Sharply Despite Rising ETF Inflows and Stablecoin Growth
XRP dropped to about $1.42, down significantly from its $3.66 peak, even as investor demand strengthened. Spot XRP ETFs attracted over $45 million in inflows this month, and Ripple’s RLUSD stablecoin grew past $1.5 billion in assets. Despite these strong fundamentals and Ripple’s rising valuation, technical indicators remain weak, with analysts warning XRP could fall toward $1 before stabilizing.
Bitcoin Mining Difficulty Sees Biggest Drop Since 2021 as Miners Shut Down
Bitcoin mining difficulty fell about 11% to 125.86 trillion, the largest drop since China’s 2021 mining crackdown, after weaker prices and rising costs forced miners offline. Revenues plunged as hash price halved, while winter power disruptions in Texas cut output further. The decline reflects mounting pressure on mining profitability, though lower difficulty now offers temporary relief for operators still running.
