ETH Breaks All-Time High as Fed Signals Possible Rate Cuts

Market Highlights

• Powell’s Dovish Surprise Boosts Markets: Fed Chair Jerome Powell signalled potential rate cuts as early as September, sparking a broad rebound across risk assets.
• ETH Breaks All-Time High: ETH surged to a new USD record of US$4,957 over the weekend, closing the week up +6.80% and marking its third consecutive week of gains.
• Spot ETH ETFs See First Weekly Outflows Since May: U.S. spot ETH ETFs recorded net outflows of –US$237 million, ending a months-long streak of inflows despite ETH’s price rally.
• BNB Hits New All-Time High: BNB led large caps this week, climbing to US$900 for the first time and continuing its rally into price discovery.

Market Overview

There is rarely a quiet week in crypto, and this one was no exception.

Markets pulled back early in the week as investors positioned cautiously ahead of the Federal Reserve’s Jackson Hole symposium. However, sentiment shifted dramatically on Friday, when Fed Chair Jerome Powell struck a surprisingly dovish tone, opening the door to interest rate cuts as early as September.

The remarks triggered an immediate rebound across risk assets, with the total crypto market cap climbing back above US$4 trillion. Ethereum (ETH) led the charge, breaking through its USD all-time high over the weekend, while large-cap altcoins such as Solana (SOL) and BNB (BNB) also rallied sharply.

Bitcoin (BTC)

BTC underperformed this week, falling –3.55% as capital rotated toward ETH and other altcoins. A brief rebound on Friday, following Powell’s dovish comments, quickly faded as selling pressure returned over the weekend. The decline was exacerbated by a long-dormant whale who offloaded 24,000 BTC (worth over US$2.7 billion) and reportedly rotated much of it into ETH — highlighting the contrasting momentum between the two assets.

ETF Inflows: 

U.S. spot Bitcoin ETFs posted their largest weekly outflows since February, with US$1.17 billion withdrawn over six consecutive trading days, according to SoSoValue.

Corporate Treasury Demand: 

Bitcoin treasury firm KindlyMD completed a US$200 million convertible note raise, with proceeds earmarked for expanding its BTC holdings.

Ethereum (ETH)

It took more than four years, but ETH finally broke its USD all-time high this week, reaching US$4,957 over the weekend. The rally was not without volatility: ETH briefly dipped to around US$4,071 midweek before rebounding strongly on Friday after Fed Chair Jerome Powell signalled that rate cuts could arrive as soon as September. ETH ended the week up +6.80%, marking its third consecutive week of gains.

ETF Flows:

Despite ETH’s milestone, U.S. spot ETH ETFs recorded their first week of outflows since May, according to SoSoValue. Investors pulled nearly US$1 billion over four consecutive days of outflows. The trend finally reversed towards the end of the week, when ETFs saw US$628.7 million in inflows, but overall net flows for the week still closed at –US$237 million.

Corporate Treasury Demand:

Tom Lee’s investment firm BitMine added US$45 million worth of Ethereum, increasing its holdings to roughly 1.518 million ETH, valued at around US$7.19 billion. This cements BitMine’s position as the largest corporate holder of Ethereum globally.

Altcoins

Large-cap altcoins delivered a mixed performance this week. Solana (SOL) led with a +7.85% gain, extending its strong momentum in recent weeks. Binance Token (BNB) climbed +2.45% to set a new all-time high of over US$900, continuing its surge into price discovery. Tron (TRX) also advanced, rising +2.40% and marking its ninth consecutive week of gains, with all-time highs now within reach.

In contrast, Cardano (ADA) fell -5.47%, giving back some of last week’s strong gains. Dogecoin (DOGE) and XRP (XRP) also edged lower, slipping -1.22% and -2.09% respectively.

Biggest Gainers:

• Memecoin (MEME) +100.25%: MEME more than doubled, fuelled by a sharp spike in trading volume exceeding US$333 million in 24 hours. Whale accumulation hints at speculation around potential upcoming developments.
• Bio Protocol (BIO): +81.18%: BIO rallied strongly ahead of the launch of Aubrai, its first AI-powered decentralised science agent. Built in partnership with VitaDAO, the release has sparked strong interest from the DeSci community and investors.
• OKB (OKB) +71.22%: OKB extended its rally following last week’s massive token burn, which permanently removed over 279 million tokens (worth ~US$26 billion) from circulation. The resulting supply shock continues to drive bullish momentum.

Biggest Losers:

• Venice (VVV) -21.25%: After ranking among last week’s top gainers, VVV retraced as the much-anticipated Venice upgrade proved to be a classic “sell the news” event, with traders taking profits post-launch.
• Pump.fun (PUMP) -20.08%: PUMP’s fell sharply after the project transferred 2.5 billion tokens (worth over US$9 million) to exchanges. The move sparked panic among holders, fuelling concerns that the team was offloading tokens despite previously announcing a buyback programme. 

ICYMI - The Week in Crypto News

Here are a few key stories you may have missed:

• MetaMask Unveils mUSD Stablecoin: MetaMask announced the launch of mUSD, a dollar-backed stablecoin issued by Stripe subsidiary Bridge. It will be integrated into MetaMask's ecosystem, launching first on Ethereum and Linea, and available via its Mastercard-powered debit card.
• VanEck Files for JitoSOL ETF: VanEck has applied to the U.S. SEC for a JitoSOL ETF, which would track the performance of Solana’s liquid staking token JitoSOL, offering staking exposure without locking assets.
• KindlyMD Closes US$200M Raise to Buy More Bitcoin: Bitcoin treasury firm KindlyMD has raised US$200 million via a convertible note offering to expand its BTC holdings.
• Ripple and SBI Plan RLUSD Stablecoin Launch in Japan: Ripple and SBI Holdings will launch the RLUSD stablecoin in early 2026, capitalising on Japan’s new stablecoin laws to introduce foreign issuers into the market.
• Sonic Labs Proposes $150M Token Issuance for U.S. Expansion: Sonic Labs has introduced a governance proposal seeking approval for a $150 million token issuance to support its entry into U.S. capital markets. Plans include forming Sonic USA LLC, launching a $S ETF, and pursuing a Nasdaq PIPE listing. 
• LayerZero Acquires Stargate Finance for $120M: Cross-chain messaging protocol LayerZero has acquired multichain bridge Stargate Finance in a $120 million deal paid in ZRO tokens. The Stargate DAO approved the merger with 94% support. ZRO will become the unified token for both protocols.
• Kanye West’s YZY Token Debuts on Solana: Kanye West launched the YZY token via his official X account as part of a broader “YZY Money” payments initiative. The token briefly surged to a multibillion-dollar valuation before pulling back sharply.
• Wyoming Launches State-Backed Stablecoin: Wyoming has officially launched the Frontier Stable Token (FRNT), the first fully reserved stablecoin issued by a U.S. public entity. 

Looking Forward - The Week Ahead

Key upcoming events to watch:

• WebX 2025 (25–26 August): Asia’s largest Web3 conference continues in Tokyo this week. Watch for new partnerships and adoption updates across the region.
• JUP Token Unlock (28 August): Approximately US$28.05 million worth of JUP tokens (1.78% of circulating supply) will be unlocked. The release may create short-term sell pressure.
• Sonic Proposal Ends (31 August): Community voting concludes on whether to establish a US-based entity and launch a S ETF. If passed, it could signal a push towards institutional legitimacy and broader access.
• SUI Token Unlock (1 September): Approximately US$163.22 million in SUI tokens (1.25% of circulating supply) is set to be unlocked. The event may weigh on price if market demand fails to absorb the new supply.
• HeyAnon Protocol Upgrade (Date TBC): Founder Daniele Sesta confirmed HeyAnon 1.0 will launch this week. It’s the protocol’s biggest upgrade yet, with limited details but high expectations.
• EtherFi Perps Launch (Date TBC): EtherFi is anticipated to launch perpetual contracts powered by Hyperliquid this week, expanding its DeFi offering with leveraged trading functionality.

Thanks for reading this week’s Market Pulse. We’ll be back next week with more insights from the crypto markets!