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MicroStrategy’s Bitcoin Holdings Underscore a 12-Year Reversal MicroStrategy’s massive Bitcoin position now stands in sharp contrast to Michael Saylor’s comment from over a decade ago that Bitcoin’s “days are numbered.” The reversal highlights Bitcoin’s resilience and reinforces confidence in long-term corporate exposure to the asset. Today, MicroStrategy is one of the largest Bitcoin holders globally, reflecting a broader institutional shift toward balance-sheet Bitcoin allocation and long-term storage. For investors, the move signals conviction at scale and may encourage other corporations to consider similar strategies. Market observers note that Saylor’s early skepticism, juxtaposed with his current stance, has become part of MicroStrategy’s narrative evolution—one that positions the firm as a bitcoin-centric treasury pioneer. The contrast between past rhetoric and present holdings may also influence regulatory discussions by demonstrating sustained corporate commitment despite early doubts.
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Messari Releases “Crypto Theses 2026” — A 275-Page Outlook on the Next Phase of Crypto On December 18, 2025, Messari published its annual “Crypto Theses 2026” report, authored by CEO Ryan Selkis and the Messari research team. The report spans 275+ pages and is available free with a Messari account signup (Messari). The report reviews crypto’s 2025 winners and losers and outlines a forward-looking framework for 2026, emphasizing industry maturation and mainstream integration (Messari). It is structured around seven core sectors (Messari): Cryptomoney: stablecoins, institutional adoption, and yield-driven DeFi banks TradFi x Crypto: equity perps, regulation, and financial convergence Multichain World: L1/L2 expansion and cross-chain interoperability DeFi: sustainable models and decentralized internet finance DePIN: decentralized physical infrastructure as a high-upside frontier Crypto x AI: agentic commerce, decentralized training, and robotics Consumer: crypto products reaching real mainstream adoption Additional sections include the Disruption Factor framework, Analyst Picks, Alumni Theses, and Messari Awards (Messari). Key 2026 themes highlighted: DePIN as a major dislocation between narrative and fundamentals Decentralized AI scaling toward agentic commerce (a $30T market by 2030) Multichain interoperability as a base assumption, not a niche feature Consumer crypto hitting an adoption tipping point (Messari) The report also features case studies such as IoTeX (AI data verification), Injective (RWAs), Creditcoin (onchain credit), and Bittensor (AI economics), including forward-looking projections like $800 TAO in 2026 (Messari). Takeaway: Messari frames 2026 as a culture-driven growth year, following politics in 2024 and sports in 2025, with infrastructure, AI, and consumer adoption shaping the next cycle (Messari).
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Saturn Labs Launches Bitcoin-Backed USDat, Positions Itself as “Tether of Digital Credit” On December 18, 2025, Saturn Labs announced the launch of its Bitcoin-backed stablecoin system, branding itself as “The Tether of Digital Credit” and signaling a new phase in Bitcoin-native financial instruments (@usdat21; crypto-fundraising.info). The protocol introduces USDat, a synthetic, yield-bearing dollar backed by MicroStrategy’s STRC, an institutional Bitcoin credit instrument structured as a variable-rate perpetual preferred stock whose proceeds fund Bitcoin purchases (crypto-fundraising.info). STRC mechanics: Targets a stable price around $100 Uses adjustable dividends (initially 9%, recently raised to 10.75%) Offers yields reported as high as ~14.5%, supported by MicroStrategy’s Bitcoin holdings (bitbo.io) Saturn pairs USDat with sUSDat, a staked token that allocates capital directly into STRC, aiming for sustainable 10%+ real yields while remaining fully on-chain and composable (crypto-fundraising.info). The reserve model blends Bitcoin credit with elements of tokenized real-world assets, including potential sovereign debt exposure via Digital Asset Treasuries (DATs), creating a transparent and scalable Bitcoin-anchored system (crypto-fundraising.info). The project is incubated by YZi Labs, draws inspiration from Michael Saylor’s Bitcoin strategy, and is focused on DeFi-native stablecoin architecture. A seed funding round is targeted for December 2025, with details still pending (weex.com; crypto-fundraising.info). Bottom line: Saturn is betting that combining Bitcoin credit, RWAs, and stablecoin mechanics can form a credible, yield-bearing Bitcoin-native reserve currency.
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Speculation Grows Around Polymarket Launching Its Own L2 After Polygon Outage Speculation that Polymarket may build its own Layer 2 intensified after a Polygon network outage on Dec 17, 2025 disrupted trading, deposits, and bet execution on the platform (Polymarket status update). The incident was described as a partial Bor halt, where stalled nodes reduced RPC availability across multiple providers, even though the chain itself remained live (Polygon community reports). Services were fully restored by Dec 18, 2025 (Polymarket). This outage added to existing frustration over third-party dependencies, including: Polygon outages affecting execution UMA oracle issues impacting market resolution GoldSky API failures, including a reported 6-hour indexing outage in July 2024, which delayed settlements and caused user losses (community reports, GoldSky). Chatter escalated after a circulated screenshot showed a user complaining about “huge losses” from repeated infrastructure failures and asking when Polymarket would launch its own L2. A Polymarket-affiliated team member, Mustafa, reportedly replied: “very soon, after all these outages it’s #1 priority” (@promptstrading, @ordinalmaxibiz). While no official L2 roadmap or timeline has been confirmed, Polymarket acknowledged the disruption and said stability improvements are now a top priority (Polymarket). The discussion reflects a broader theme in prediction markets: infrastructure reliability is critical, and repeated oracle, indexing, or base-layer failures can erode trust. Whether this leads to a dedicated zk-rollup, custom chain, or tighter integrations remains unclear.
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Ethena TVL Slides Over 55% as Yield Loops Unwind Ethena’s total value locked has dropped over 55%, falling from a peak of $14.98B on Oct 3, 2025 to roughly $6.63B by Dec 18, 2025 (Xangle). The decline accelerated after high-leverage looping strategies on lending platforms like Aave began to unwind. The trigger was yield compression on sUSDe, with APRs falling to ~2.7–5.1%, below borrowing costs, breaking loop profitability and forcing liquidations (Xangle). Additional pressure came from: Ecosystem rollbacks, including Converge chain and Terminal Finance, hurting confidence Risk-off DeFi sentiment and declining on-chain demand Reduced ENA futures open interest, with >$700M exiting USDe in early November (Bitget) Despite Ethena generating an estimated $365M in annual fees, reliance on subsidized yields proved unsustainable as incentives faded (@aixbt_agent). Capital has since rotated toward alternatives like Ondo and Piku (@piku_dao). The move mirrors broader DeFi stress, with Ethereum TVL down ~7.06% YoY to $68.8B, reflecting tighter liquidity across the sector (Xangle). Takeaway: Ethena’s contraction highlights how fast TVL can unwind when yield mechanics flip from accretive to reflexively negative.
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Federal Reserve Reserve Balances Decline to Lowest Level Since Early December
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Significant EIGEN Transfer to Uniswap Observed
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ICE Explores Investment in Crypto Payments Firm MoonPay Amid Growing Wall Street Interest
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U.S. Dollar Index Sees Slight Increase Against Major Currencies
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Federal Reserve Considers Rate Cuts Amid Inflation Decline
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