Today's Cryptocurrency News (January 22) | Trump formulates Greenland framework agreement; Bitcoin and Ethereum ETF outflows near $1 billion

TRUMP4,34%
BTC0,98%
ETH1,07%

This article summarizes cryptocurrency news as of January 22, 2026, focusing on the latest Bitcoin updates, Ethereum upgrades, Dogecoin trends, real-time crypto prices, and price forecasts. Major Web3 events today include:

1、Pi Network 2026 Major Upgrade: App Studio Opens to All, Pi Apps Enter Usable Stage

Pi Network announced that in 2026 it will launch a new upgraded version of Pi App Studio, simultaneously initiating creator incentive programs. The goal is to enable ordinary users without any programming background to quickly build and publish applications, thereby accelerating the real-world adoption of the Pi ecosystem. This move is seen as a key step for Pi Network to shift from a “mining narrative” to “application-driven growth.”

According to official statements, the new Pi App Studio will offer visual and interactive tools, allowing creators to directly integrate Pi payment functions, deploy and test applications for free, without coding. Users can rapidly prototype and continuously update to optimize features. This low-entry barrier mode will attract many non-technical Pi Oneers to participate in app development, bringing more possibilities for Pi’s practical use cases.

Meanwhile, Pi Network has also launched a new creator activity. Pioneer users can participate by completing a short survey; the first 1,000 eligible participants will receive 5 Pi points, which can only be used within App Studio for app development-related features, and cannot be transferred or traded. Pi hopes to motivate early creators and gather community feedback on the new tools to support future upgrades.

This upgrade coincides with a critical time for Pi Network. About 134 million Pi tokens will be unlocked this month, and the ecosystem is accelerating its transition toward “usability.” Recent applications like Fixora, which allows users to pay for real-world services such as home repairs and tutoring using Pi, mark Pi’s gradual shift from concept to actual consumption scenarios.

Additionally, some users recently reported brief anomalies in Pi apps, widely speculated to be related to major backend upgrades. Although official details are not yet confirmed, market sentiment has noticeably heated up. With the opening of Pi App Studio, increasing developer numbers, and expanding application scenarios, Pi Network is laying the groundwork for a new ecosystem explosion in 2026.

2、X Launches “Starterpacks,” Changing How Crypto Users Access Information

Social platform X announced the launch of a new “Starterpacks” feature aimed at helping new users quickly find high-quality accounts and information based on personal interests, with a focus on cryptocurrency and technology. X product lead Nikita Bier stated that this feature went live this week and will be gradually rolled out to more users in the coming weeks.

From the official demo videos, users can select their areas of interest during registration or use, such as crypto assets, blockchain technology, or artificial intelligence. The system will then automatically recommend a curated set of accounts and information streams. For the crypto sector, Starterpacks will include mainstream viewpoints, memecoin trading updates, active trader opinions, and real-time market sentiment data, attempting to create a more efficient information gateway for new users.

This move is seen as X’s reorganization of its “Crypto Twitter” ecosystem. Previously, Nikita Bier publicly stated that the declining influence of the crypto community on the platform was more due to internal fragmentation than algorithm suppression, which triggered significant user backlash. Many crypto practitioners believe that content related to Bitcoin and altcoins has become less visible in the feed, affecting discussion engagement and dissemination efficiency.

Data also reflects these concerns to some extent. Jameson Lopp pointed out that the number of posts containing “Bitcoin” on X in 2025 decreased by over 30% year-over-year, interpreted as a weakening of crypto topic exposure on social media. While this indicator doesn’t fully represent actual engagement, it has intensified community doubts about changes in discovery mechanisms.

Meanwhile, Vitalik Buterin also emphasized on X the need for a crypto social platform that aligns with long-term value. He believes the platform should not only chase short-term interactions but also provide a more sustainable information environment for users and decentralized society.

In this context, X’s launch of “Starterpacks” is seen as an attempt to improve the efficiency of crypto content distribution. If this feature can make high-quality blockchain content easier to discover, it may open a new window for crypto community information dissemination in 2026.

3、XRP Falls into Extreme Panic Zone, Santiment Signals a Potential Rebound Based on Historical Indicators

On-chain data platform Santiment’s latest report shows that after XRP’s price retreated nearly 20% from its early 2026 high, market sentiment has plunged into the “extreme panic” zone. Currently, XRP trades below $2, with retail investor confidence significantly shaken, but multiple historical indicators are signaling potential reversal, suggesting a rebound window is brewing.

Santiment noted that the positive/negative sentiment ratio for XRP has continued to decline from 1.873 on January 20 to about 1.794, reflecting increasing pessimism about Ripple’s prospects. Historical data indicates that when this indicator falls below critical thresholds, prices often bottom out temporarily as selling pressure is emotionally cleared, and funds start seeking low-entry points.

This recent decline was also accompanied by shrinking capital flows. On January 21, approximately $53 million net flowed out of US spot XRP ETFs, intensifying short-term pressure. However, such concentrated outflows have historically coincided with price turning points, providing conditions for a rebound.

Looking back at January 2, 2026, XRP recovered from a state of extreme panic, rebounding about 29% in a short period to reach a high of $2.41. After the emotional collapse on January 18, XRP also experienced a quick rebound, once again approaching $2.00. These cases show that when the market is uniformly bearish, it often creates space for a counter-move.

Currently, XRP is at $1.94, up 2.11% intraday. Although it has fallen 7.5% over the past week, it has already rebounded from a low of $1.80. With Brad Garlinghouse scheduled to speak in Davos, market expectations for sentiment recovery are rising. If the panic indicator stabilizes further, XRP’s price structure could lay the foundation for the next upward move.

4、Elon Musk: X AI Recommendation System to Fully Evolve by 2026, Precision of Ads to Reach a New Level

Elon Musk recently stated that X’s AI recommendation system will reach an “excellent” level by mid-2026, with expectations to evolve into “stunning” by the end of the year. This indicates that X is accelerating its transformation into a highly intelligent information distribution platform, with fundamental changes in content and ad delivery logic.

Musk emphasized that future X’s advertising system will no longer rely on random exposure or broad-based placement but will use AI models to deeply learn user interests, behaviors, and interaction habits, delivering truly relevant content. This mechanism will significantly reduce ineffective ads and spam, improve user experience, and enable advertisers to achieve higher conversion rates and efficiency.

In the context of fierce global digital advertising competition, the introduction of a stronger AI recommendation engine by X is seen as a major upgrade to traditional social media advertising models. Through more precise user profiling and real-time feedback, X aims to build an ad ecosystem centered on relevance and value rather than just traffic and clicks.

As AI models continue to iterate in 2026, content distribution efficiency, topic dissemination speed, and commercialization capabilities on X are expected to improve in tandem. For creators, brands, and ordinary users, this change will not only affect how information is accessed but may also reshape the entire social platform’s growth logic and business model.

5、Solana Price News: SOL Falls Back to Key Zone, $126 Support Becomes Critical for Bulls and Bears

Solana’s price retreated after hitting resistance, currently oscillating around $130. Although it rebounded slightly by about 1.4% today, market sentiment has become cautious. Over the past week, SOL has declined about 10%, with prices oscillating between $125 and $145, indicating intense battles between bulls and bears at key technical levels.

From a trading structure perspective, the market is actively de-leveraging. Spot trading volume decreased by about 6.8% to around $5.6 billion, and open interest in derivatives and futures trading also declined, suggesting some funds are exiting rather than betting on directional moves. Such features are typical during transitions from strong rallies to corrections.

Despite weakened short-term momentum, the medium- and long-term fundamentals remain resilient. According to SoSoValue data, on January 21, Solana-related ETFs saw about $2.92 million net inflow, with monthly inflows exceeding $100 million and total assets approaching $870 million, indicating continued institutional interest. On-chain data from DefiLlama shows that since early 2026, Solana’s decentralized trading volume increased from about $2.5 billion to over $5.6 billion, and stablecoin market cap remains above $14 billion, maintaining a solid liquidity base.

In the real-world asset tokenization sector, Solana also continues to expand. The value of assets locked on its network has surpassed $1.1 billion, ranking second only to Ethereum and BNB Chain. Institutions like BlackRock, Franklin Templeton, and Ondo are actively promoting this sector, and upgrades like Firedancer are improving network performance, paving the way for broader applications.

Technically, SOL failed to hold the resistance zone at $145–$150 and fell below the 20-day moving average, with RSI dropping to around 40, indicating increased short-term selling pressure. The current critical support zone is at $126–$128. If broken, the price could retest $118–$120. On a rebound, $137–$140 and above $145 will remain key resistance levels. Before reclaiming these levels, Solana remains in a correction pattern.

6、Trump Media Airdrops Shares, TRUMP Token Falls, Why Is the Market Unmoved?

Trump Media announced that on February 2, 2026, it will airdrop digital tokens to all shareholders holding at least one share of DJT stock, marking a key step in its blockchain reward system. The company, closely associated with U.S. President Trump, operates social platform Truth Social, fintech product Truth.Fi, prediction market Truth Predict, and streaming service Truth+. The tokens will be used in conjunction with discounts, membership rights, and exclusive offers related to these products.

The plan was first announced in 2025 and is now in execution. The company emphasizes that these tokens are solely for user incentives and rights distribution, not representing any equity or profit rights, thus not securities nor tokenized stocks. Trump Media CEO Devon Nunes stated that the design references U.S. regulatory frameworks, aiming to enhance shareholder engagement and platform stickiness within legal compliance.

Technologically, Trump Media will use blockchain infrastructure to mint and custody these reward tokens, periodically distributing them to DJT shareholders. This approach is seen as a “shareholder + on-chain incentive” new attempt, linking traditional public companies with digital assets while avoiding securities compliance risks.

However, the market’s initial reaction was not optimistic. After the announcement, the official TRUMP memecoin experienced a sharp correction, dropping from $5.80 to around $5, a short-term decline of about 4%. Investors gradually realized that this airdropped token is not the TRUMP memecoin nor directly related to Trump’s family-backed WLFI, thus lacking additional value support for the existing token.

Currently, the price hovers around $4.90, indicating the market is reassessing the narrative space for TRUMP tokens. Nonetheless, Trump Media’s push for blockchain-based shareholder incentives is still viewed as an important case of integrating digital assets with traditional capital markets in 2026, especially amid rapid tokenization and on-chain rights development. Its potential impact remains worth ongoing attention.

7、Ethereum’s Critical Turning Point in 2026: Vitalik Buterin Explains ETH Decentralization and Privacy Upgrade Roadmap

Ethereum faces a major shift in 2026. Co-founder Vitalik Buterin recently stated that this phase is far more than price fluctuations; it’s a crucial year for Ethereum to return to core values of technological sovereignty and decentralization. As market sentiment weakens, the conceptual and structural adjustments of ETH become clearer.

For years, Ethereum has been torn between “high decentralization” and “usability.” In 2026, this balance begins to shift. The introduction of ZK-EVM and the Blockchain Access List (BAL) significantly lowers hardware requirements for running nodes. Zero-knowledge proofs compress complex validations into quick-verifiable small proofs, enabling ordinary users to independently verify blockchain data on personal computers, reducing reliance on large infrastructure.

In terms of data trustworthiness, the new lightweight client Helios allows wallets to directly verify whether data from third-party services is authentic, eliminating the need to fully trust RPC providers for balances and transactions. This “verify rather than trust” model enhances network security.

Privacy upgrades include ORAM and PIR technologies, which prevent exposing specific behaviors during queries or transactions. Coupled with account abstraction, private transfers can be automatically handled in the background without extra steps. This provides a new technical solution balancing compliance and privacy.

Wallet-wise, social recovery wallets are being promoted to mitigate the risk of mnemonic phrase loss. In 2026, Ethereum is rolling out trusted device or contact-based recovery, combined with time locks to prevent malicious operations, greatly improving user experience and security.

On the application layer, more Ethereum apps are shifting to IPFS-based on-chain interfaces, allowing continued operation even if developers leave, aligning with Vitalik Buterin’s “survive even if you leave” design philosophy.

Despite ETH trading around $2,942 and facing short-term pressure, Ethereum is evolving on technical, privacy, and sovereignty levels. Vitalik Buterin clearly states that 2026 is a year for Ethereum to refocus on DeFi and blockchain fundamentals, a shift that could have more long-term impact than any market cycle.

8、Circle Accelerates UN Stablecoin Payment Upgrades, USDC Boosts Humanitarian Aid and “On-Chain Economy” in Bermuda

Stablecoin issuer Circle announced during the Davos World Economic Forum that it will provide donations to the United Nations to support its internal payment system modernization, aiming to make humanitarian aid fund flows faster, cheaper, and more transparent. The funds will be injected into the UN Digital Finance Solutions Center (DHoTS) to upgrade its global fund transfer infrastructure. Specific amounts were not disclosed.

This initiative builds on existing cooperation. In 2022, Circle partnered with UNHCR and DHoTS to distribute USDC aid to displaced Ukrainians due to war, marking the first large-scale humanitarian use of stablecoins. UNDP Administrator Alexander De Croo said that in tight budgets, digital payments can significantly improve fund efficiency, avoiding delays and high costs of traditional banking.

Circle data shows about $38 billion annually in humanitarian funds flow through inefficient traditional channels, often with slow settlement and low transparency. Blockchain-based stablecoin payments can reduce friction and increase accountability. UNHCR’s High Commissioner Barham Salih emphasized that new technology is not just about efficiency but also about maintaining dignity and choice for displaced persons.

The trend of using stablecoins in public sector applications is expanding. The Circle Foundation, established last December, focuses on inclusive finance and social resilience. Meanwhile, Bermuda announced cooperation with Circle to promote the “On-Chain Economy” plan, using USD-pegged USDC and blockchain settlement to optimize government and corporate payments, easing high costs and limited banking services.

With the stablecoin market exceeding $300 billion, USDC’s applications in cross-border payments, commercial settlements, and public finance are rapidly growing. Circle’s latest moves with the UN and Bermuda show stablecoins are evolving from crypto tools to central components of global finance and public services.

9、Tom Lee Warns 2026 May See a Drop First, Then Rise: Bitcoin at $90,000 in a Tug-of-War with $99,000 Targets

Fundstrat founder and chief researcher Tom Lee warned in a recent podcast that 2026 could start with a “painful decline” before a rebound. He pointed out that tariff policy upgrades, changes in Fed independence, and uncertainty over the new Fed chair could cause significant market disruptions early in the year. Tom Lee said markets tend to “stress test” new Fed leadership, often leading to temporary corrections, but from a medium- to long-term perspective, low points may create new buying opportunities.

Looking back at 2025, U.S. tax season and tariff implementations caused Bitcoin to dip from about $84,000 to $74,000, roughly an 11% decline. After key trade agreements between China and other countries, market confidence recovered, and Bitcoin rebounded to around $126,000 in October. Recently, Trump mentioned an agreement on Greenland, which led to some tariffs being canceled, easing macro pressures temporarily—an important variable supporting Bitcoin’s rebound.

Currently, Bitcoin hovers near $90,000, down about 10% from last week’s high of $98,000 influenced by tariff volatility. Swissblock’s Bitcoin risk index has risen to 21, approaching the high-risk zone at 25, indicating the market is in consolidation since November last year. Its model shows that as long as support at $89,200 holds, prices could surge toward $94,800 and challenge $99,000; if it breaks, $84,500 becomes a key support.

Institutional movements are also critical. US spot Bitcoin ETFs briefly turned net buyers early in 2026, pushing prices near $98,000, but subsequent inflows slowed, reflecting risk reassessment amid macro and geopolitical uncertainties. For investors watching Bitcoin’s price and 2026 crypto outlook, the tug-of-war around $90,000 may determine the next trend.

10、Messari Warns of DeSoc Reshuffle: Farcaster Acquired, Lens Changed Hands, DeSoc Enters Rebuilding Cycle

Messari analyst AJC states that decentralized social networks are entering a new adjustment phase. Between January 14 and 21, several core projects experienced directional changes, reshaping the DeSoc landscape. Base App shifted from social tools to trading-focused applications centered on token exchange and wallet functions; Lens Protocol transferred control to Mask Network; Farcaster was acquired by its long-term infrastructure partner Neynar. These rapid chain reactions mark the end of the first experimental phase of “decentralized social platforms.”

These changes reveal the real challenges faced by DeSoc. Despite Farcaster raising about $180 million, most decentralized social apps remain niche, with difficulty in user retention and monetization. High operational costs and sluggish revenue force teams to seek more direct monetization paths, prioritizing trading and wallet tools. However, this also overlaps with SocialFi and DeFi tools, increasing competition and cooling community enthusiasm for “social as finance.”

Structural reorganization is also underway. After Mask Network took over Lens, the original team continues as technical advisors, while Aave reverts to core DeFi activities. Farcaster’s protocol contracts, main app, and Clanker are managed by Neynar, with founders Dan Romero and Merkle team gradually stepping back. A leaner organization may improve protocol iteration speed and community responsiveness.

In AJC’s view, this is not the end but a necessary “reset.” The departure of large teams creates space for new developers. Next-generation decentralized social products may focus more on genuine interaction, identity, and data sovereignty rather than mere traffic speculation. As Ethereum and other public chains expand, cross-chain identity and social data composability could become new breakthroughs. After the first chapter, DeSoc’s second chapter begins, and the market will test which models can truly achieve scale and sustainability.

11、Bitcoin and Ethereum ETFs See Nearly $1 Billion Outflow in a Single Day, Institutional De-Risking Signals Intensify

US spot Bitcoin and Ethereum ETFs experienced rare large-scale fund outflows this Wednesday, indicating that institutional investors are tightening risk exposure amid rising macro uncertainties. Data shows that the net outflow from spot Bitcoin ETFs was about $709 million, the largest in nearly two months, while Ethereum ETFs saw about $287 million withdrawn, totaling nearly $1 billion.

During the outflows, Bitcoin’s price briefly dropped near $87,000, and Ethereum also dipped before rebounding. Later, news of Trump reaching an agreement with NATO on Greenland and delaying tariffs on EU countries improved market sentiment, leading to technical rebounds in crypto assets. Bitcoin returned near $90,000, and Ethereum rose above $3,000.

Market analysis suggests this sell-off resembles typical institutional de-risking rather than a long-term negative view on crypto. Rachael Lucas noted that in environments with rising interest rates, geopolitical tensions, and volatile bond markets, institutions tend to reduce high-volatility assets, naturally including Bitcoin and Ethereum.

Despite this correction, the total assets of Bitcoin spot ETFs remain above $100 billion, with cumulative inflows exceeding hundreds of billions since launch. This indicates that institutional long-term allocation trends are intact, and the current outflows are more phase adjustments.

Meanwhile, within crypto ETFs, there is some divergence. While Bitcoin and Ethereum ETFs saw large outflows, XRP and Solana-related ETFs recorded small net inflows, suggesting some funds are seeking different risk exposures.

Vincent Liu stated that, given macro pressures are not fully alleviated, the crypto market can stabilize after rapid deleveraging, implying the medium-term structure remains intact. Future ETF flows, US interest rate trends, and global bond market changes will continue to influence Bitcoin and Ethereum prices.

12、Trump-NATO “Greenland Framework” Sparks Turmoil, Denmark Firmly States Sovereignty Non-Negotiable

Geopolitical tensions over Greenland’s sovereignty have escalated again. Danish Prime Minister Mette Frederiksen explicitly stated Thursday that the so-called “Framework Agreement” between U.S. President Trump and NATO Secretary General Mark Rutte does not involve Greenland sovereignty, and Denmark will not make concessions on this core issue.

Frederiksen emphasized that Denmark can discuss broad topics like politics, security, investment, and economy with allies, but sovereignty is outside the scope of negotiations. “Only Denmark and the Greenlandic people have the authority to decide everything related to Greenland,” she said. She also added that Denmark has confirmed that Trump’s communications with NATO do not include any substantive change to Greenland’s status.

Nevertheless, the Danish government hopes to engage in constructive dialogue with the U.S. and NATO on Arctic security, including Trump’s proposal for a “Golden Dome” missile defense system, provided territorial integrity of Denmark and Greenland is respected. This stance is seen as a direct response to recent external concerns and aims to stabilize EU positions on Greenland.

Meanwhile, geopolitical maneuvering continues to ferment at Davos. Several officials revealed that Ukrainian President Volodymyr Zelenskyy, en route to the World Economic Forum, plans to meet with Trump in the afternoon. Zelenskyy aims to promote an $800 billion “Prosperity Plan” to foster cooperation with Ukraine, the U.S., and Europe on post-war reconstruction and security, but no signing arrangements are currently in place.

Key obstacles include disagreements between Europe and Washington over Greenland issues and Trump-led global conflict oversight mechanisms. Russia has yet to comment on a 20-point peace plan covering Ukraine and Europe, adding caution to U.S. considerations.

In this context, Greenland sovereignty, Arctic security, and Ukraine peace talks are intertwined in complex international negotiations. Trump’s latest moves will likely continue to influence European and global markets.

13、Japanese Bond Market Stabilizes, Supporting Bitcoin at $90,000, Crypto Market Temporarily Exits Storm of Selling Pressure

As Japan’s bond market tension eases significantly, the crypto market stabilized on Thursday. Japanese long-term bonds rose for the second consecutive day, pulling yields down, temporarily easing macro pressures that previously suppressed Bitcoin and major digital assets.

During Asian hours, Bitcoin oscillated around $90,000, and Ethereum reclaimed the $3,000 level. Meanwhile, major tokens like Solana, XRP, and Cardano, which experienced sharp drops earlier in the week, also stabilized. The short-term stability is highly correlated with the decline in Japan’s 30-year government bond yield, which had soared to multi-decade highs earlier, causing global risk asset volatility.

Japan’s bond market holds a central position in the global capital system. When Japanese long-term yields rise rapidly, it increases global financing costs and prompts capital flows into safer, yield-bearing assets. This reallocation often suppresses high-risk assets like Bitcoin, which depend heavily on loose liquidity environments.

Earlier this week, Japan’s bonds faced a sell-off, pushing global bond yields higher, including U.S. Treasuries, leading to a sharp decline in risk appetite. Bitcoin briefly fell below $88,000, forcing leveraged positions to liquidate, with altcoins falling more sharply.

With Japanese officials stepping in to calm markets, bond yields retreated, and defensive trading resumed. While this does not mean risk appetite has fully recovered, it at least alleviates the most urgent macro pressures.

For crypto investors, the direction of Japanese yields remains critical. If rates rise again quickly, funds may flow back into traditional bonds, posing new downside risks for Bitcoin and digital assets. The current stabilization is more of a short-term breather; macro financial conditions remain the key to future trends.

14、Thailand Advances New Regulations for Crypto ETFs, Institutional Entry Channels to Open Soon

As institutional demand for digital assets continues to grow, Thailand’s SEC is accelerating the development of regulations for crypto ETFs and related derivatives. According to Bangkok Post, SEC Deputy Secretary Jomkwan Kongsakul said the regulator plans to issue formal guidelines early this year to facilitate the launch of crypto ETFs, futures, and tokenized investment products in Thailand.

Jomkwan Kongsakul highlighted that crypto ETFs offer simplified custody and compliance, significantly reducing hacking and wallet management risks—major barriers for traditional funds entering crypto markets. The plan also includes allowing crypto futures trading on the Thailand Futures Exchange (TFEX) and introducing market maker mechanisms to boost liquidity, with digital assets classified under the Derivatives Act.

While crypto is still prohibited as a payment method in Thailand, retail and institutional trading remains active. Regulators aim to position Thailand as a regional hub for institutional crypto assets through ETFs and derivatives. The SEC board has approved the core proposals in principle, and is now refining investment and operational standards, viewing digital assets as “another asset class” with a maximum allocation of 5% in diversified portfolios.

On the compliance front, the SEC is strengthening oversight of “financial influencers,” requiring any content involving securities or investment returns to obtain licensing as investment advisors or broker-dealers. Additionally, the SEC is collaborating with the Bank of Thailand to promote a tokenization sandbox, encouraging bond issuers to pilot digital securities within a regulated environment.

Affected by capital disputes, a Thai digital asset platform was recently temporarily halted by regulators. The company is working on restructuring through shareholder and capital increase arrangements, and plans to apply for a digital asset brokerage license to expand compliant operations. With new regulations, the launch of crypto ETFs and institutional channels in Thailand may reshape the local digital asset landscape.

15、Saga Security Incident Escalates: $7 Million Exploit Causes Stablecoin De-Pegging and Chain Halt

Layer-1 blockchain Saga confirmed that its SagaEVM sub-chain was urgently halted due to a security breach involving approximately $7 million. The incident caused some stablecoins to be transferred cross-chain without authorization and exchanged for ETH, leading to a brief de-pegging of USD-pegged assets within the Saga ecosystem.

Saga team stated in an official release that the sub-chain at block height 6,593,800 has been suspended, and emergency response has been initiated. Initial investigations found that the attack involved a series of carefully crafted contract deployments, cross-chain calls, and subsequent liquidity withdrawals. The consensus, validators, and signature keys at the network layer remain intact, and the main chain structure is still secure.

In addition to SagaEVM, stablecoins like Colt and Mustang were also affected. Following the news, Saga’s USD-pegged stablecoins briefly fell to about $0.75 in secondary markets, significantly deviating from the 1:1 peg. On-chain data from DeFiLlama shows Saga’s TVL dropped from over $37 million to about $16 million within 24 hours, reflecting rapid capital withdrawal.

Saga disclosed that the attack addresses have been identified and are being blacklisted in cooperation with cross-chain infrastructure providers to limit further transfers. The chain will remain paused until deeper audits and a full incident report are completed.

Security researchers offered different perspectives. Vladimir S suggested that attackers may have exploited IBC mechanisms and custom messages to bypass bridge verification, enabling infinite minting of Saga Dollars and cross-chain cash-out. Specter pointed out some signs that could indicate private key leaks, but more on-chain data is needed for confirmation.

This event underscores the risks in cross-chain and stablecoin mechanisms amid rapid DeFi expansion. Whether Saga can recover user trust through subsequent fixes and compensation will be critical for its future ecosystem development.

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