Current Crypto Market Trends: ETF Filings, Inflows Crash, and Tech Debates

Altcoins and Spot ETF Applications

Institutional managers have filed for spot ETFs not only for Bitcoin and Ether but also for a suite of “US‑listed coins” spanning major Layer‑1s and even memecoins. The full list of assets included in the recent ETF applications:

• Core altcoins: SOL, XRP, LTC, ADA, AVAX, APT, SUI, MOVE, TRX

• Memecoins: DOGE, TRUMP, BONK, PENGU

SOL and XRP attracted the most filings, reflecting their deep liquidity and large market caps. All of these tokens are part of the WLFI portfolio, underlining institutions’ intent to diversify beyond the primary two crypto assets.

70% Collapse in Capital Inflows

According to on‑chain analytics, two‑week capital inflows into the crypto sector plunged from $8.20 billion to $2.38 billion—a 70% decline. The main drivers include:

• Rising geopolitical tensions prompting investors to pause on further buys

• A corrective pullback after earlier Bitcoin and Ether rallies

• Market overextension in Q1, when institutional funds set new records for their purchases

Traders and portfolio managers should watch the rotation between spot markets and OTC desks closely and be prepared to rebalance positions if inflows remain subdued.

Ethereum Scaling Critique and Solana’s Opportunity

Uniswap founder Hayden Adams publicly criticized Ethereum’s scaling roadmap, warning that moving away from proven Layer‑2 rollups in favor of on‑chain throughput could hand DeFi leadership to faster networks like Solana. His key points:

• Ethereum still suffers from high fees and slow confirmations during peak usage

• Layer‑2 solutions provide battle‑tested security for settlement, whereas direct L1 scaling raises risks of network instability

• Solana already delivers millions of TPS at minimal cost, drawing users and developers

This debate may trigger a shift of liquidity toward Solana‑based DeFi protocols and new cross‑chain arbitrage strategies.

Bitcoin Growth Potential via M2 Correlation

An analysis of global M2 money supply shows an over 80% correlation with Bitcoin’s price over the past year. Historically, major liquidity injections (quantitative easing) coincide with significant BTC rallies. Analysts now predict that the next round of Fed easing and repo facility adjustments could spark a fresh Bitcoin uptrend within weeks.

Project & Platform News

• Sonic Labs will open its public sale of .sonic domains next week. Whitelisted users can claim names via Unstoppable Domains.

• Mantra (OM) clarified that 90% of its circulating supply was never under the team’s control, dispelling centralization concerns and bolstering investor confidence.

Geopolitical Update: South Korea’s Trade Stance

South Korea’s acting president announced no retaliatory measures against U.S. tariffs and signaled willingness to remove domestic trade barriers ahead of negotiations with Washington. This approach may increase cross‑border capital flows and support Korean crypto assets.

Waning Interest in Ethereum Post‑PoS

Since Ethereum’s switch to Proof of Stake in late 2022, its share of network traffic has fallen below 35%, while its MVRV ratio remains under Bitcoin’s. Investors withdrew $6.2 billion from Ether in the past 30 days, contrasted with $5.4 billion inflows into Bitcoin. The PoS transition—and the end of mining rewards—has reduced Ethereum’s appeal for certain yield‑hungry participants.