Is Ether making a comeback?

Every week, Amdax summarizes what’s happening in the crypto market for you. Want to dive deeper? Click on the links in this email for more insights.

This newsletter is a co-production with our partner, Bitcoin Alpha. 

Market Update 

Stay informed in three steps:

1. Ether Posts Strongest Weekly Performance in Years
The second-largest cryptocurrency has staged an impressive rally, surging around 40% to surpass $2,500. This marks its strongest weekly gain since May 2021. The upswing is supported by improved market sentiment and coincides with the recent Pectra upgrade, which enhances the network’s user-friendliness.

2. Bitcoin Climbs Back Above the Symbolic $100,000 Mark
From a low of $74,500, Bitcoin has risen over 40%, largely without notable corrections. It’s now approaching its all-time high in USD terms. For European investors, the recovery looks less dramatic in euros—mainly due to a weakening dollar, which has lost over 10% of its value against the euro since January. As a result, Bitcoin's dollar price has outpaced its euro-denominated equivalent.

3. Altcoins Follow Suit, but No Clear Sign of an Altseason Yet
The broader crypto market is showing signs of recovery, particularly among altcoins like Solana, Dogecoin, and Cardano. While some are calling it the start of a new “altseason,” the signals remain tentative. Bitcoin dominance has slightly declined, but a structural shift toward altcoins has yet to materialize. The ‘OTHERS index’—which tracks the total market value of altcoins ranked 11 through 125—still needs to rally more than 70% to return to previous record levels.

News Overview

Signal from the noise:

• Coinbase joins the S&P 500 index. 
  It becomes the first crypto company ever to be included in the prestigious S&P 500 index. The stock replaces Discover Financial Services and will now be part of one of the world’s most closely watched stock indices. This inclusion marks a new milestone in the integration of crypto into the traditional financial system. Investors responded enthusiastically: Coinbase shares jumped nearly 10% in pre-market trading.

• More and more companies are adding bitcoin to their balance sheets as a strategic reserve.
  From Metaplanet and Semler Scientific to the newly renamed Strategy, the corporate bitcoin movement is gaining momentum. Asset manager Strive is transforming itself into a bitcoin-focused firm, David Bailey (BTC Inc.) has raised $300 million for a new investment vehicle, and analysts at Bernstein expect $330 billion in inflows over the coming years. Even Strategy’s earnings call drew over 150,000 viewers—unprecedented. Boardrooms smell gold, but the digital kind.

• Coinbase acquires Deribit for $2.9 billion.
  This instantly makes the company the market leader in crypto options trading. The deal—part cash, part stock—is the largest acquisition ever in the crypto sector. With this move, Coinbase unites spot trading with futures, perpetuals, and options under one roof. Notably, on the same day as the announcement, Coinbase also released weak quarterly earnings. A striking figure: operating expenses were 51% higher than a year earlier.

• U.S. stablecoin legislation suddenly on shaky ground.
  What once seemed like a slam dunk, according to Bitwise CIO Matt Hougan, is now at risk. Democrats are turning against the GENIUS Act in the Senate, citing concerns about weak AML safeguards and Donald Trump’s personal ties to the crypto space. The fact that $2 billion is being invested into Binance via Trump’s own stablecoin—launched through World Liberty Financial—only fuels further suspicion. Time is running out: August is the deadline for the bill.

• Fintech Superstate launches RWA platform Opening Bell.
  The platform allows public and private companies to issue shares on blockchain networks. Superstate aims to modernize capital markets through public chains like Ethereum and Solana. Interestingly, on the same day, SEC Commissioner Hester Peirce hinted at an exemption for such applications. Technology and policy finally seem to be converging.

Amdax’s Take
The crypto market is experiencing its strongest weeks in a long time. In the United States, consumer inflation fell to 2.3% year-over-year in April—the lowest level since early 2021. Combined with a de-escalation in the trade conflict between the U.S. and China, this is contributing to noticeably improved investor sentiment. The recent price increases coincide with signs of growing maturity in the sector: Coinbase is being added to the S&P 500, companies are stockpiling bitcoin on their balance sheets, and institutional acquisitions underscore that the crypto industry is being taken seriously by major players.