The Defiant

Olivia Capozzalo & Denis Omelchenko
August 18, 2025

Happy Monday, Defiers!

Today’s big story:

As economic and geopolitical uncertainty continues, the crypto market has cooled off a bit, with total market capitalization dipping back below $4 trillion.

In other news:

Japan regulators approve first yen-pegged stablecoin to launch this fall
The total value locked on Solana regains January highs as DeFi picks up
Liquid staking TVL hits a new high above $86B after SEC statement
Confidentiality in blockchain: Rand Hindi on Zama's Vision and the future of on-chain transactions [SPONSORED]
TezDev highlights: blockchain innovation, gaming, and real-world impact [SPONSORED]
Using AI for developer education | RareCode by RareSkills [SPONSORED]

Read more below! But first, please give our sponsors some love; they make this newsletter possible.

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We’re back! Here’s what you need to know in web3 today

📈 Markets in the Last 24 Hours

TICKER	VALUE	24H
Bitcoin	$115,300	-2.71 %
Ethereum	$4,320.4	-4.93 %
XRP	$2.99	-4.46 %
BNB	$836.83	-2.39 %
Solana	$181.88	-5.81 %

MessariPortals	MINDSHARE Rank	MINDSHARE % Change (7d)
		12.92%
		101.14%
		29.22%
Powered by Messari Portals

Today’s Big Story

Crypto Hits Pause Below $4T as Traders Eye Fed and Geopolitical Uncertainty

gm, Defiers!

Here’s what you need to know to start your week.

The crypto markets cooled off a bit on Monday, with total capitalization dipping back below $4 trillion, down about 3% to roughly $3.97 trillion, after hitting an all-time high of $4.25 trillion on Aug. 14.

The current dynamics reflect what some analysts describe as a mix of profit-taking, jittery Fed expectations, and geopolitical uncertainties weighing on sentiment.

BTC 7-day price chart. Source: CoinGecko

Bitcoin (BTC) is hovering below $116,000, while Ethereum (ETH) is struggling a bit more, near $4,300 and down near 5.6% over the past 24 hours.

Glassnode analysts pointed out in an X post today that Ethereum’s rally has once again hit the +1σ Active Realized Price, around $4,500, which historically has acted like a magnet for selling pressure. In other words, part of this pullback may just be natural resistance kicking in.

XRP and SOL have also slipped, down 4% and 6% respectively, showing that the gains from last week aren’t sticking.

Peace and Rate Cuts

U.S. President Donald Trump, Ukrainian President Volodymyr Zelenskyy, and European leaders are meeting later today at the White House to discuss peace terms for the Russia-Ukraine war. Perhaps not surprisingly, the meeting between President Trump and Russian President Vladimir Putin in Alaska on Friday failed to provide clarity to the markets in the form of a ceasefire deal.

Markets seem to be more focused on inflation and economic data than on the outcome of the peace negotiations.

Keyrock analysts suggested in a weekly market update that markets have been swinging back and forth depending on inflation data — soft CPI readings gave a boost last week, only for a hot PPI print to take the wind out of the sails.

“With calls roughly twice the size of puts, traders remain firmly positioned for upside despite the recent pullback,” the analysts said.

Federal Reserve Chair Jerome Powell is set to speak at the Jackson Hole Economic Policy Symposium later this week, Aug. 21-23, so markets are closely watching for any hints on whether a September rate cut is coming, and how aggressive it might be.

Money markets are currently pricing in an 85% chance of a 25-basis-point Fed rate cut in September, per Reuters, as traders scaled back bets on a guaranteed cut following last month’s jump in U.S. wholesale prices and July’s solid retail sales figures.

Denis Omelchenko, staff reporter at The Defiant

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🎬WATCH

Intention, Privacy, and Trust: Adrian Brink’s Vision for Resilient Communities

In the latest episode of The Defiant Podcast, Vinny sat down with Adrian Brink, co-founder of Anoma and Namada, to explore the intersection of privacy, sovereignty, and resilience in web3.

Adrian shares his journey from the early days of building Cosmos to building intent-based systems that empower communities and protect dignity at scale. Adrian also discusses the Tornado Cash case, the role of intent-based systems in addressing regulatory concerns, and how cryptography can help communities defend against external threats.

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Discover how innovations like Mezo are enabling new ways to use Bitcoin, such as Bitcoin-backed mortgages and stablecoins, which play a crucial role in lending. Matt also discusses the importance of security in Bitcoin systems, the demand for fixed rates and low borrowing costs, and how acquisitions like Lolli aim to expand Bitcoin's utility globally.

Top News in the Past 24 Hours

Japan FSA Clears JPYC, First Yen-Pegged Stablecoin for Fall Launch Japan’s Financial Services Agency will register Tokyo-based fintech company JPYC Inc. as a money-transfer business later this month, clearing the way for the country’s first yen-denominated stablecoin.
Liquid Staking TVL Hits Record amid ETH Rally and Growing Institutional Adoption Liquid staking protocols surged to a record of over $86 billion in total value locked (TVL), with Lido leading the sector with $41 billion. The growth comes after the SEC’s Division of Corporation Finance recently clarified that, in its view, certain liquid staking activities are not considered securities transactions.
Solana Hits All-Time High TVL Even as Trading Volume Crashes Just one week after the Ethereum ecosystem made a new all-time high, Solana is following suit. Solana’s TVL crossed the $31 billion threshold last week, edging out its previous all-time high of $30.8 billion set on Jan. 20.
FEATURE: Circle’s Arc Layer 1 Re-ignites the Open Versus Permissioned Chain Debate Circle’s newly launched Arc, described by the firm as an open Layer 1 blockchain, is dividing experts across the crypto community, with some saying its design undermines the principles of decentralized finance, and others calling it a practical step that boosts USDC’s infrastructure.