Key Facts:

• Market steadies then rebounds: Bitcoin held ~$111K amid low volatility and then reclaimed $112K on Sept. 10 as traders eyed U.S. inflation data and possible Fed rate cuts cryptonews.com coindesk.com. Ether hovered near $4,300, while Solana’s SOL token jumped to ~$222 – a 7-month high coindesk.com. Analysts noted crypto’s calm may break soon with CPI and Fed decisions looming cryptonews.com. “Cryptocurrencies have been trading at a subdued level as the Fed is conflicted over cutting rates amid stubborn inflation,” observed Jeff Mei of BTSE, adding that an upside inflation surprise could hurt prices whereas a downside surprise might spark a rally ts2.tech.
• Altcoins see pockets of frenzy: The AI-related crypto sector led gains with a 14% surge on Sept. 9 cryptonews.com. Worldcoin’s WLD token soared ~55% after fintech firm Eightco unveiled a $250 million WLD reserve plan cryptonews.com. Meme coins and DeFi tokens also rallied early in the week, though some cooled by Sept. 10. Dogecoin jumped ~7% to $0.24 – one of the week’s stronger moves ts2.tech. Despite recent profit-taking in Ether (following its late-August all-time high near $4,957), major investors remain bullish: Fundstrat’s Tom Lee predicted Bitcoin could hit $200K by late 2025 if the Fed pivots to rate cuts, noting BTC and ETH are “super sensitive to monetary policy” ts2.tech.
• Binance overhauls fees: On Sept. 9, Binance eliminated its BNB-based trading fee discounts, ending the 40% spot fee reduction (and 20% futures fee cut) for users holding ≥500 BNB intellectia.ai. The exchange will shift to a volume- and referral-based fee structure instead intellectia.ai. The move marks a significant change to a long-standing perk that had rewarded BNB token holders. Binance also rolled out new listings (e.g. Ethena’s USDe stablecoin) – spurring rallies in related tokens (Ethena’s governance token hit multi-month highs on listing news) coindesk.com.
• Coinbase bets on Web3 AI: Coinbase unveiled “x402 Bazaar,” described as a “Google for AI agents” that enables autonomous AI services to discover and pay each other via crypto micropayments coindesk.com. Building on Coinbase’s earlier release of the open-source x402 payment protocol, the Bazaar adds a discovery layer so AI agents can buy data or services using instant stablecoin payments coindesk.com coindesk.com. “Think of it like paywalls for scrapers,” explained Coinbase’s Erik Reppel, describing how AI bots could pay for API calls or content access on the fly coindesk.com. The initiative highlights Coinbase’s push into Web3 infrastructure, merging stablecoins with AI automation.
• ConsenSys (MetaMask) innovation: ConsenSys’s MetaMask wallet extended its features via a recent partnership with Aave, allowing users to earn yield on stablecoin deposits within the MetaMask app thepaypers.com. Meanwhile, a leaked governance proposal in August hinted that MetaMask is collaborating with Stripe on a potential native stablecoin “mmUSD”, intended as a universal trading pair across MetaMask’s ecosystem thepaypers.com. ConsenSys declined to comment on the leak, saying only that it continually evaluates improvements to the wallet experience thepaypers.com.
• Trump-linked crypto surge: American Bitcoin Corp (ABTC) – a Nasdaq-listed Bitcoin mining firm backed by Donald Trump Jr. and Eric Trump – saw wild trading in its debut. The stock soared ~83% to over $13 before multiple volatility halts, then settled up about 34% around $9.26 by market close ts2.tech. This debut values the Trump brothers’ roughly 20% stake at well over $1 billion ts2.tech. The Trump family’s crypto ventures expanded with the simultaneous launch of World Liberty Financial (WLFI) – a new DeFi token and exchange tied to Trump allies. Combined, ABTC’s listing pop and WLFI’s rollout boosted the Trumps’ collective crypto net worth by an estimated $1.3 billion in a week ts2.tech. (WLFI’s launch was bumpy – the token swung ±40%, and some early investors, including Tron’s Justin Sun, briefly had their tokens “frozen” by the issuer amid technical issues ts2.tech.) The unprecedented entanglement of a U.S. president’s family with crypto businesses has drawn political scrutiny coindesk.com.
• Regulators pump the brakes (and gas): U.S. SEC delayed its decisions on two high-profile crypto ETFs – Bitwise’s proposed Dogecoin ETF and Grayscale’s Hedera (HBAR) ETF – pushing review deadlines to Nov. 12 cointelegraph.com. The postponements add to a pile of pending altcoin ETF applications and signal the SEC’s cautious approach amid a flood of crypto fund proposals. On Capitol Hill, a group of 12 Senate Democrats introduced a crypto regulatory framework, outlining priorities for market structure legislation coindesk.com. Their seven-point plan calls for clearer jurisdictional boundaries (SEC vs. CFTC), mandatory registration of crypto platforms as financial institutions, and measures to “preventing corruption and abuse” coindesk.com. Notably, the Democrats’ framework directly cites President Trump’s crypto ties as a concern, stating he “has turned to digital asset projects to enrich himself and his family” coindesk.com – a reference to ventures like ABTC and WLFI. (Republican lawmakers have their own draft bills in play, so a bipartisan compromise will be needed coindesk.com.)
• Toward 24/7 mainstream markets: In a rare show of alignment, the chairs of the SEC and CFTC jointly signaled openness to integrating crypto’s round-the-clock model into traditional markets ts2.tech. In a recent statement, they floated allowing regulated U.S. stock exchanges to list spot crypto assets directly and even suggested extending trading hours to 24/7 to keep pace with crypto’s nonstop market ts2.tech. Separately, the CFTC staff issued new guidance on Sept. 9 clarifying how offshore crypto exchanges can register as Foreign Boards of Trade to legally serve U.S. customers jdsupra.com – potentially enabling major non-U.S. platforms to come under U.S. oversight. And in a sign of growing institutional adoption, Nasdaq filed a proposal with the SEC to launch a parallel exchange for tokenized stocks, letting investors trade equities on-chain with the same regulatory protections ts2.tech. Over in Europe, the first fully regulated blockchain-based stock exchange (startup 21X) opened in Germany on Sept. 8, offering instant on-chain settlement of tokenized securities and stablecoins under EU supervision ts2.tech.
• Layer-1 and Layer-2 protocol updates: No major network upgrades occurred on top chains during these two days, but Ethereum’s metrics reflected a cooldown after its summer rally. Crypto funds saw substantial outflows from ETH in early September (~$912 million in a week) even as Bitcoin funds enjoyed ~$524 million of inflows, indicating some investors rotated from Ether’s near-record highs back into Bitcoin’s relative stability ts2.tech ts2.tech. Ethereum’s on-chain activity also moderated – August transaction fee revenue fell ~44% compared to July ts2.tech, partly due to the successful “Dencun” upgrade earlier in the year which lowered Layer-2 fees (reducing ETH burned). Still, network fundamentals remain strong: a dormant 2015-era whale wallet just moved $645 million worth of ETH into staking this week, a sign of long-term confidence in Ethereum ts2.tech. Solana, after weathering a rough 2024, is resurging – SOL’s climb to $222 puts it at highs not seen since February coindesk.com, buoyed by renewed developer activity and traders rotating into high-performing altcoins. And new entrants keep emerging: for example, startup MemeCore officially launched a meme-themed Layer-1 blockchain on Sept. 9, aiming to capitalize on cultural trends (and an upcoming $SEA token) by offering an EVM-compatible chain centered on internet memes theblock.co.
• NFT market pivots under pressure: With crypto art sales slumping, industry players are refocusing. Leading marketplace OpenSea announced a $1 million “NFT reserve” fund to acquire culturally significant NFTs for posterity cointelegraph.com. The flagship collection kicked off with OpenSea purchasing CryptoPunk #5273 for 65 ETH (≈$282,000) as the first piece in this digital art treasury unchainedcrypto.com. The timing comes as NFT trading volumes have cooled markedly – total NFT sales tallied only about $92 million in the first week of September, a steep drop from the $115M–$170M per month range seen in mid-2025 ts2.tech. Facing thin volume, several platforms have recently shuttered their NFT marketplaces – from major exchanges like Kraken and Bybit to even GameStop’s short-lived NFT venture ts2.tech. In the traditional art world, Christie’s auction house closed its dedicated NFT division in an early-September restructure, folding its “Christie’s 3.0” blockchain platform and digital art team back into the main art business ts2.tech. (Christie’s, which famously sold Beeple’s NFT for $69M in 2021, signaled that going forward NFTs will be treated as just another art medium rather than a separate category ts2.tech.) These moves underscore an NFT market in consolidation mode – even as builders pivot to emphasize utility and community, and long-term collectors (including OpenSea’s new “NFT museum” fund) work to preserve iconic pieces for when the market eventually recovers.
• Security breaches and exploits: DeFi hacks spiked over this period, reminding investors of persistent security risks. On Sept. 8, Sui-based yield platform Nemo was exploited for $2.4 million in USDC ts2.tech. The attacker manipulated a flaw to mint excess tokens, then bridged the loot from Sui’s Arbitrum network to Ethereum – causing Nemo’s total value locked (TVL) to plummet ~75% overnight ts2.tech. Even bigger was a incident at Swiss crypto wealth app SwissBorg: roughly $41 million in Solana (≈193,000 SOL) was siphoned from its yield program after a third-party staking provider’s API was compromised ts2.tech. (Notably, SwissBorg’s own systems weren’t hacked – the attacker exploited its integration with partner platform Kiln to reroute funds before they staked. SwissBorg immediately froze the affected routes and pledged to fully reimburse all users from its reserves ts2.tech.) Meanwhile, a massive software supply-chain attack put countless crypto users at risk: hackers backdoored 20+ popular NPM JavaScript libraries (with billions of weekly downloads) to sneak malware into projects and ultimately drain crypto wallets ts2.tech. Fortunately, cybersecurity researchers caught the scheme early – incredibly, the attackers only managed to steal about $50 total before their exploits were shut down ts2.tech. “It’s like finding the keycard to Fort Knox and using it as a bookmark,” one analyst quipped, noting the hacker’s comically tiny haul despite a potentially huge breach ts2.tech. The episode prompted Ledger’s CTO to warn users to halt on-chain transactions until updating any compromised libraries, underscoring the threat of supply-chain attacks even for savvy crypto devs. Separately, the fallout continued from earlier exploits: a July hack of Kinto DeFi exchange forced that project to announce a full shutdown by end of September after failing recovery efforts ts2.tech ts2.tech – a sober reminder that not all hacked projects can resurrect. Overall, these incidents have pushed the crypto community to double down on audits, bug bounties, and vetting of third-party integrations, aiming to shore up trust as the sector matures.

Cryptocurrency Market Trends and Price Analysis:
After a rocky summer rally and subsequent cooldown, crypto markets showed mixed signals over Sept. 9–10. Bitcoin (BTC) traded in a narrow range around $110K–$111K for most of the period, reflecting remarkably low volatility cryptonews.com. Traders and analysts attributed the calm to macro uncertainty – with U.S. inflation reports due and a pivotal Federal Reserve meeting on the horizon, many investors stayed on the sidelines ts2.tech. “Cryptocurrencies have been trading at a subdued level as the Fed is conflicted over cutting rates amid stubborn inflation,” observed Jeff Mei, COO of exchange BTSE ts2.tech. Indeed, the prospect of the Fed’s Sept. 17 decision kept markets in wait-and-see mode. Volatility indexes hit multi-month lows, and the crypto Fear & Greed Index hovered neutral, suggesting indecision. However, that tranquility didn’t last: by Wednesday morning (Sept. 10), Bitcoin suddenly reclaimed $112,000 cryptonews.com coindesk.com, buoyed by a fresh wave of optimism after a surprisingly weak U.S. jobs data revision eased recession fears. (The Labor Department revealed 911,000 fewer jobs were added through March than previously thought, which paradoxically lifted markets by bolstering the case for Fed rate cuts coindesk.com.) As European equities opened higher on Sept. 10, BTC jumped back above $112K and even briefly touched ~$113K, erasing the prior day’s dip coindesk.com coindesk.com. Major altcoins followed suit: Ether (ETH) climbed back toward $4,350, XRP neared $3.00, and Dogecoin rebounded to ~$0.24, after all three had wobbled on the earlier U.S. jobs news coindesk.com ts2.tech.

Crucially, Solana (SOL) emerged as a standout performer. The Ethereum rival’s price surged to about $222 on Sept. 10 – its highest level since Feb. 1, 2025 coindesk.com – notching a ~5% gain for the week amid reports of rising developer activity and renewed institutional interest in Solana’s ecosystem. Other large caps saw more modest moves; for instance, BNB (Binance Coin) held flat around $884 coindesk.com, and Cardano (ADA) hovered near $0.88 coindesk.com. The overall crypto market capitalization slipped just under the $4 trillion mark on Sept. 9 before recovering to ~$4.05 trillion by Sept. 10 cryptonews.com cryptonews.com.

Beneath the calm surface of large-cap coins, select altcoins experienced high volatility tied to specific news catalysts. On Sept. 9, Worldcoin (WLD) – the iris-scanning digital ID project – suddenly spiked nearly 55% in 24 hours cryptonews.com. The rally came after tech firm Eightco announced a plan to allocate $250 million of reserves into WLD tokens, a huge vote of confidence that sent WLD volume soaring over 250% cryptonews.com. Another eye-popping jump came from newcomer OpenLedger (OPEN), which reportedly skyrocketed over 650% upon debut, though on low liquidity cryptonews.com. These outsized moves helped the AI/Big Data token sector log a +14.4% gain in one day cryptonews.com, outpacing all other segments (NFT, DeFi, etc.), according to CoinGecko data.

Still, not all trends were positive for alts. Ethereum’s investment demand showed signs of cooling after its strong summer: data from fund flows in early September revealed that Ethereum-based funds saw about $912 million in net outflows, even as Bitcoin funds gained $524 million ts2.tech ts2.tech. This suggests some investors took profits on ETH’s late-August all-time high (~$4,957) and rotated back into Bitcoin’s perceived safety ts2.tech ts2.tech. In fact, Ethereum’s network activity slowed in tandem – transaction fee revenue in August fell ~44% from July, partly because more users shifted to cheaper Layer-2 networks after ETH’s spring upgrades ts2.tech. Ether’s price reflected this consolidation, trading around $4,300–$4,350 during Sept. 9–10, roughly 12% below its peak.

Despite short-term rotations, many market participants remain bullish on crypto’s bigger picture. Tom Lee of Fundstrat Global Advisors argued this week that if the Federal Reserve starts cutting interest rates soon (something prediction markets now put at 82% odds for a quarter-point cut in September) cryptonews.com, it could “supercharge” Bitcoin and Ether prices. Lee told CNBC that BTC could reach $200,000 by late 2025 – nearly doubling its current level – given the combination of monetary easing and the upcoming Bitcoin halving cycle ts2.tech. While some analysts view such projections as overly optimistic, it underscores a broader point: macro factors (inflation, Fed policy, economic growth) are now driving crypto sentiment as much as crypto-native events. “Higher-than-expected inflation could definitely hurt crypto prices, while a downside surprise might ignite a rally,” BTSE’s Jeff Mei noted, emphasizing how closely traders are watching each new economic data point ts2.tech.

In summary, the crypto market spent Sept. 9–10 in a holding pattern punctuated by brief bursts of volatility. Bitcoin’s resilience above $110K and Ethereum’s holding pattern near $4.3K suggest a market waiting for a catalyst. That catalyst may soon arrive in the form of U.S. CPI inflation data (due Sept. 11) and the Fed’s rate decision. With volatility indices at multi-year lows ts2.tech, any surprise – dovish or hawkish – could shake BTC out of its range. As one trader quipped on X (Twitter), “This is the quiet before the storm. The only question is which way the thunder rolls.” For now, bulls and bears are in cautious equilibrium, making the next macro signals especially pivotal for crypto price trends.

Blockchain Company Updates (Binance, Coinbase, ConsenSys)

Binance’s fee shake-up: Binance, the world’s largest crypto exchange, implemented major changes on Sept. 9 that affect millions of users. The company discontinued its BNB holding-based fee discounts, a program that had been in place for years intellectia.ai. Previously, traders holding at least 500 BNB (Binance’s native token, equivalent to ~$440,000 at current prices) enjoyed 40% lower spot trading fees and 20% off futures fees as a loyalty perk. Those discounts were completely eliminated as of 08:00 UTC on Sept. 9 intellectia.ai. All users, regardless of BNB balance, now pay full standard fees. In place of the BNB scheme, Binance is introducing a new tiered system based on trading performance and referrals intellectia.ai. Going forward, high-volume traders and users who bring in referrals can earn fee rebates or VIP tiers, shifting Binance’s incentives toward activity and away from passive token holding. This marks a strategic pivot for Binance; the BNB discount system was instrumental in driving BNB’s popularity and gave the token quasi-equity utility on the platform. Some analysts see the change as Binance de-emphasizing BNB’s role amid regulatory scrutiny (U.S. regulators have scrutinized whether exchange tokens function as unregistered securities). BNB’s price initially dipped on the announcement earlier this month but stabilized around $285 (roughly $883 in the pre-split price quotes) as of Sept. 10 instagram.com coindesk.com. Binance CEO Changpeng “CZ” Zhao noted on social media that 99% of users weren’t holding 500+ BNB anyway, and thus “almost all traders see no change” in fees – though high-rolling whales will certainly feel the difference. Binance also tweaked its referral program concurrently, capping certain referral kickbacks to ensure the new system is sustainable odaily.news.

In other Binance news, the exchange continued expanding its coin listings and products:

• New listings: Binance added trading support for several up-and-coming projects. Notably, on Sept. 9 it listed Ethena’s USDe (USDe) – a novel stablecoin by startup Ethena – on the main exchange binance.com. Ethena’s associated governance token ENA rallied over 20% on the news, hitting a 7-month high, as investors speculated the Binance listing could foreshadow Ethena’s rumored $500 million token buyback plan coindesk.com. Binance also opened trading for Avantis (AVNT) on its Binance Alpha platform for early-stage assets binance.com, and announced upcoming support for Linea, ConsenSys’s Layer-2 network token (slated for Sept. 9 as well) tradingview.com. These listings underscore Binance’s dominant role in providing liquidity to new crypto projects – often sparking short-term price pops.
• Futures products: Binance’s derivatives arm launched new USDS-margined perpetual futures tied to niche assets like FLOCK (the Floki AI token) and SKY (Skycoin) on Sept. 9 binance.com. It also adjusted margin tiers on some contracts x.com. Separately, Binance Labs (the venture arm) issued an update on its incubator program, highlighting support for projects in Web3 gaming and decentralized social media – though no new investments were announced these days.

Coinbase’s AI micropayments push: U.S.-based exchange Coinbase turned heads with an announcement at the intersection of crypto and artificial intelligence. On Sept. 9, Coinbase revealed “x402 Bazaar,” a new platform that combines crypto micropayments with autonomous AI agents coindesk.com. The Bazaar is essentially a discovery marketplace for AI services: it allows different AI agents (bots) to find each other and transact seamlessly using crypto, specifically stablecoins coindesk.com. This builds on Coinbase’s earlier development of x402, an open-source protocol introduced in July that enables instant stablecoin payments (e.g. USDC) to any website or service coindesk.com. The x402 Bazaar adds a layer on top where AI agents can publish what services or data they offer and set a price, creating something akin to an “App Store” for AI bots – but one where the bots themselves do the buying and selling. Coinbase engineers describe it as a “Google for AI agents”, essentially a search and payment layer for machine-to-machine commerce coindesk.com.

Why does this matter? Coinbase’s head of developer platforms, Erik Reppel, explained that as AI gets more autonomous, agents will need a way to pay for data or services on the fly – for example, an AI writing an investment report might pay a small fee to access real-time stock prices or to use a specific image generator coindesk.com coindesk.com. Traditional payment systems (credit cards, bank APIs) are ill-suited for thousandths of a cent transactions between bots. Crypto, however, excels at frictionless micropayments. “Think of it as like paywalls for scrapers,” Reppel said coindesk.com, meaning an AI can automatically pay a website a few cents (in stablecoin) to scrape its data, instead of being blocked by a paywall or abusing the site for free. Coinbase sees this as a new frontier for crypto utility beyond human users – enabling what some call the “machine economy.”

At launch, x402 Bazaar features a handful of experimental services: e.g., Prixe, an API that streams real-time stock prices for agents that need financial data coindesk.com coindesk.com; some AI image-generation and video-processing endpoints; and a few content APIs. These early listings show how an AI agent might string together multiple paid tools to complete a complex task – all settled in crypto under the hood. Coinbase’s move positions it at the forefront of Web3–AI convergence, a hot trend as companies explore how blockchain can provide trust, payments, or data provenance to AI systems. The company also hinted that it’s exploring developer incentives around x402 (possibly via Coinbase’s upcoming Base blockchain or via its stablecoin partnerships). While still very experimental, x402 Bazaar underscores Coinbase’s evolution from a pure-play exchange into a broader crypto infrastructure provider tapping into adjacent industries like AI. Notably, this announcement comes on the heels of Coinbase’s push into Layer-2 networks (Base) and its ongoing legal tussles with the SEC – signaling that Coinbase is intent on innovating despite regulatory headwinds.

ConsenSys and MetaMask: Brooklyn-based blockchain firm ConsenSys, known for its Ethereum infrastructure and the popular MetaMask wallet, had a quieter couple of days in terms of public announcements. However, recent developments around MetaMask are worth noting given their implications for the wider Web3 ecosystem:

• MetaMask integrates DeFi yields: ConsenSys partnered with Aave (a leading decentralized lending protocol) to integrate Aave’s yield services directly into MetaMask’s mobile app thepaypers.com. Announced in late August and rolling out through early September, this feature lets MetaMask users earn interest on stablecoins (like USDC) without leaving the wallet. Essentially, a user can deposit into Aave’s lending pools via MetaMask’s interface and start accruing yield, all in a couple of taps. This is a significant usability boost – previously users had to navigate Aave’s website or a dApp separately. ConsenSys framed this as part of making MetaMask a “front page of Web3,” where users can not only store crypto but also put assets to work easily. It demonstrates ConsenSys’s strategy to expand MetaMask from a simple wallet into a full-service crypto portal, adding features like swaps (launched 2021), staking (2023), and now lending. Early user feedback has been positive, though some caution about smart contract risks remains (Aave’s smart contracts are battle-tested, but users must still trust that integration).
• Rumored MetaMask stablecoin – “mmUSD”: In an intriguing leak, a governance proposal posted (and quickly deleted) on Aave’s forum in early August revealed plans for a MetaMask-led stablecoin thepaypers.com. The proposal described “mmUSD”, a USD-pegged stablecoin that would be developed by ConsenSys (MetaMask) in collaboration with payments giant Stripe thepaypers.com. The stablecoin would ostensibly become a central trading pair inside MetaMask, powering swaps and DeFi features with lower fees and potentially generating revenue via interest on reserves. The leak caught attention because it suggests MetaMask might follow the path of other wallets/exchanges issuing their own stable assets, similar to PayPal’s recent PYUSD launch. ConsenSys has not officially confirmed any such project. In response to inquiries, the company said only that they “are continually evaluating ways to improve the wallet experience” but “declined to address speculation” about the stablecoin thepaypers.com. Stripe, which acquired a stablecoin infrastructure startup in 2024, also declined comment. If true, mmUSD could further cement MetaMask’s role in Web3 by providing a natively integrated dollar token for its 30+ million users. Some analysts note that regulatory hurdles would be high – issuing a stablecoin could put ConsenSys under new scrutiny. For now, mmUSD remains an unconfirmed rumor, but one that speaks to ConsenSys’s ambitious roadmap.

Outside of MetaMask, ConsenSys continues to work on Ethereum protocol development (it was instrumental in the Dencun upgrade) and scaling solutions like Linea (its zkEVM Layer-2 network, which incidentally got listed on Binance’s innovation zone on Sept. 9 tradingview.com). There were no major ConsenSys fundraising news or acquisitions announced on Sept. 9–10. However, the firm’s ongoing projects – such as the gradual decentralization of Infura (its infrastructure arm) and the buildout of Linea – are closely watched. In summary, ConsenSys is steadily expanding its product suite (wallet features, networks, and possibly tokens) to maintain its influential position in the Ethereum and Web3 landscape. The coming months (e.g., the anticipated MetaMask airdrop/token that community members speculate about, or any official mmUSD details) could bring more substantial announcements from ConsenSys beyond the incremental developments seen during this two-day window.

Global Regulatory and Policy Developments

Regulation of crypto remains a dynamic landscape worldwide, and the past 48 hours saw significant moves by U.S. regulators and lawmakers, with ripple effects globally.

SEC delays altcoin ETFs: In the United States, the Securities and Exchange Commission (SEC) once again exercised its authority to delay decisions on crypto exchange-traded funds. On Sept. 9, the SEC quietly filed notices extending the review period for two novel ETF proposals – the Bitwise Bitcoin and Ether Market Cap Weight Strategy ETF (which notably includes Dogecoin (DOGE) exposure via a blended strategy) and the Grayscale Ethereum Classic Trust conversion (focused on Hedera (HBAR) after recent amendments) cointelegraph.com. By pushing the deadlines to November 12, 2025 for both, the SEC effectively kicked the can down the road. Cointelegraph reports that all pending altcoin spot ETFs – including proposed funds for XRP, Solana, Litecoin, Avalanche, BNB, and others – are now piling up for decisions in Q4 cointelegraph.com. The SEC’s cautious stance is not unexpected; by law, the agency can take up to 240 days from filing to approve or deny, and it has routinely used extensions to the max. Still, the delays frustrate some in the industry who hoped for quicker resolution after the SEC’s first spot Bitcoin ETF approval in 2024. It appears SEC Chair Gary Gensler’s team remains wary of market manipulation and liquidity risks in thinly traded altcoins coingape.com. The SEC’s recent track record suggests it will likely wait until final deadlines before making any big calls on these products. Market reaction to the latest delays was muted – Dogecoin’s price held around $0.06 (111K sats) and HBAR around $0.23, suggesting traders expected the outcome. But the clock is now ticking toward mid-November, when the SEC will have to fish or cut bait on at least some of these proposals, barring further tactics or withdrawals.

Senate Democrats unveil crypto priorities: On Capitol Hill, Senate Democrats chose Sept. 9 to roll out a “framework of priorities” for crypto legislation coindesk.com. Spearheaded by Sen. Ruben Gallego (D-Ariz.) and signed by 12 senators, the framework is essentially a statement of principles highlighting what Democrats want to see in any comprehensive crypto bill. The seven key pillars include:

1. Protect consumers and investors – ensuring fair rules and safeguarding against fraud.
2. Close gaps in spot market regulation – clarifying how tokens that aren’t securities are regulated (since today, non-securities like Bitcoin largely fall outside SEC jurisdiction).
3. Clarify SEC vs. CFTC roles – define who oversees what in crypto to end turf wars between agencies coindesk.com.
4. Bring issuers into compliance – require crypto token issuers to register and disclose information if they want broad distribution.
5. Regulate crypto platforms – make exchanges, brokers, DeFi platforms, etc., subject to appropriate licensing and oversight.
6. Stop illicit finance and corruption – enforce anti-money-laundering (AML) rules and ensure crypto isn’t used to evade laws.
7. Prevent conflicts of interest – here’s the striking part: the framework explicitly calls out former President Donald Trump’s involvement in crypto. It notes that Trump “has turned to digital asset projects to enrich himself and his family”, and insists any legislation address potential conflicts (a clear reference to Trump’s sons’ $1.5B stake in American Bitcoin Corp and similar ventures) coindesk.com.

The inclusion of Trump’s crypto ties is noteworthy, as it shows how politicized the crypto debate has become. Democrats are essentially warning that a sitting president’s family could profit from a loosely regulated industry while that president’s administration sets policy – an ethical red flag in their view coindesk.com. (It mirrors criticisms that Trump has gone soft on crypto enforcement to benefit his circle reuters.com reuters.com, something Eric Trump vehemently denied in a Reuters interview, calling such claims “insane” reuters.com.) The framework also nods to prior bipartisan efforts: many of the senators signing on (like Gillibrand, Cortez Masto, Warnock) previously supported the GENIUS Act (a stablecoin regulation law that passed last year) coindesk.com. This implies there is some common ground across the aisle on issues like stablecoins. However, with Republicans (led by Sen. Cynthia Lummis and others) already floating their own comprehensive bill, it remains challenging to reconcile the two sides. Gallego’s memo is likely a starting point for negotiations.

Sen. Patrick McHenry (R-NC) in the House and Sen. Lummis (R-WY) in the Senate have indicated they’d welcome Democratic input to craft a bipartisan law, especially after the White House appointed crypto-friendly advisor Patrick Witt to liaise with Congress coindesk.com. The next few weeks will tell if this framework spurs tangible legislative action. But at minimum, it underscores a more proactive stance by lawmakers in response to the rapid growth of crypto – aiming to “owe it to the millions of Americans” invested in crypto to give them clear rules coindesk.com. As the senators put it in their joint statement: “We owe it to…the market to create clear rules of the road that protect consumers… We also must ensure that digital assets are not used to finance illicit activities or to line the pockets of politicians and their families.” coindesk.com.

SEC & CFTC float 24/7 trading and spot crypto on exchanges: In a notable development, U.S. market regulators hinted at embracing two core aspects of crypto markets – 24/7 trading and direct spot crypto access – in traditional finance. According to reporting by Decrypt, the chairs of the SEC and CFTC issued a joint statement recently (details emerging around Sept. 8–9) wherein they proposed allowing regulated U.S. stock exchanges to list and trade spot crypto assets directly ts2.tech. Currently, U.S. exchanges like NYSE and Nasdaq can only list crypto-related securities (like Coinbase stock or Bitcoin futures ETFs); spot trading of actual cryptocurrencies is confined to unregulated crypto platforms or those with state licenses. The joint proposal suggests creating a pathway for exchanges to handle tokens under unified federal oversight – a potentially seismic shift that would blur the line between traditional and crypto markets. Furthermore, the regulators reportedly mused about extending trading hours to 24/7 for certain assets ts2.tech. This would be a radical change from legacy market hours (e.g., 9:30–4 for stocks) but acknowledges that crypto trades nonstop worldwide and that U.S. investors might benefit from round-the-clock access. These ideas were floated as part of a broader discussion on modernizing market structure. It’s important to stress that this is not a formal rule change yet, but rather a vision aired by top officials. Still, it aligns with other signals: the CFTC on Sept. 9 published an advisory clarifying how foreign crypto exchanges (FBOTs) can register to legally serve U.S. customers without running afoul of rules jdsupra.com. This advisory essentially invites reputable overseas exchanges to come under the CFTC’s umbrella, perhaps an attempt to encourage Binance, Bybit, OKX, etc. to seek U.S. compliance through a known pathway rather than operate in grey areas. Together, the joint statement and CFTC guidance suggest a more accommodating regulatory approach could be on the horizon – one that integrates crypto into the existing system instead of fencing it off. Market watchers note that any move to allow 24/7 trading or spot crypto on exchanges would require significant rulemaking and likely new legislation. But just a year ago, such ideas would’ve been unthinkable from the SEC under Gensler. The change in tone may reflect pressure from Congress (see above) and the courts (e.g., the Grayscale Bitcoin ETF court win over the SEC in 2024) nudging regulators toward a more pragmatic stance. The industry response has been hopeful; Coinbase’s CEO Brian Armstrong lauded the concept of 24/7 markets, citing the example of crypto’s resilience. Of course, implementing these changes won’t happen overnight – but the conversation has clearly shifted from outright skepticism to engagement at the highest regulatory levels.

Institutional & international moves: Beyond Washington, there were notable developments in how traditional finance is embracing blockchain:

• In the U.S., Nasdaq (the stock exchange operator) filed a proposal with the SEC to launch a platform for trading tokenized stocks and other digital assets ts2.tech. Dubbed a parallel exchange, it would allow investors to trade, say, Apple shares either via the traditional method or as on-chain tokens, with equal priority. The system would use blockchain for instantaneous settlement but still tie into existing market oversight. This innovative plan shows legacy institutions increasingly see tokenization as the future of markets. Nasdaq’s filing came on Sept. 8 and is pending SEC approval; if green-lit, it could be one of the first major applications of blockchain in mainstream equity trading ts2.tech.
• In Europe, on Sept. 8 a startup called 21X launched what it claims is the EU’s first fully regulated on-chain stock exchange ts2.tech. Based in Germany and supervised by BaFin, 21X allows trading of tokenized securities with real-time, T+0 settlement on a private blockchain. Initially it runs during normal market hours (8am–5pm CET) but plans to expand to 24/7 trading. Eight stocks are listed, and trades simultaneously update on a blockchain ledger and in traditional custody records to satisfy regulators. This bridging of systems is being closely watched as a model for future markets.
• In Africa, Johannesburg-based Altvest Capital announced a $210 million raise to rebrand as “Africa Bitcoin Corp.” and put a substantial portion of its treasury into Bitcoin ts2.tech. This makes it the first publicly listed company in Africa to adopt BTC as a reserve asset, echoing trends seen with firms like MicroStrategy in the U.S. It highlights Bitcoin’s global appeal as an inflation hedge – and notably, it comes at a time when several African currencies have struggled, possibly driving institutional interest in crypto.

Finally, even the U.S. Federal Reserve is engaging with crypto in its own way: the Fed announced it will host a “Payments Innovation Summit” on Oct. 21 focusing on emerging tech including stablecoins and tokenization ts2.tech. This event will gather bank leaders, fintechs, and policymakers to discuss how technologies like stablecoins might integrate with traditional payments. The mere fact the Fed is dedicating an event to stablecoins (which it once eyed warily) shows how far the dialogue has progressed.

In summary, the regulatory scene as of Sept. 10, 2025 is one of transition and tentative convergence. U.S. lawmakers are trying to craft comprehensive rules (amid partisan jabs over Trump’s crypto ventures), regulators are tiptoeing toward allowing crypto within the establishment, and institutions from Nasdaq to the Fed are openly experimenting with blockchain concepts. Globally, others are not waiting – Europe’s MiCA regulation is already in effect and enabling things like 21X’s exchange, and countries from the UAE to Singapore continue to refine crypto-friendly regimes. The next few weeks – with key SEC decisions (e.g., more ETF deadlines in October) and potential movement on legislation – will be critical in determining whether the U.S. truly embraces a leadership role in crypto innovation or continues a more halting approach. For now, all signals indicate crypto policy is at an inflection point moving into Q4 2025.

Updates from Major Blockchain Protocols (Layer 1 & Layer 2)

During the Sept. 9–10 window, there were no earth-shattering upgrades (e.g., no new hard forks on Bitcoin or Ethereum in those two days), but plenty of noteworthy developments and data points around leading Layer 1 and Layer 2 networks:

Ethereum (Layer 1): Ethereum’s core protocol remained stable on version Cancun/Dencun (the spring 2025 upgrade). The network has been processing blocks normally, albeit with lower on-chain activity compared to the summer frenzy. On-chain metrics indicate a cooldown: daily gas usage and fee revenue in late August and early September trended down. Ethereum transaction fees averaged substantially less than in July, resulting in only ~50,000 ETH burned in August (versus 88,000 ETH in July) – about a 44% drop in fee burn month-over-month ts2.tech. This is partly because Ethereum’s Layer-2 scaling solutions have siphoned off user activity; with lower fees on rollups after Dencun, fewer transactions are clogging the main chain. Nevertheless, network security and participation hit milestones. The total ETH staked in Ethereum’s proof-of-stake contract continued climbing to new highs (~32.5 million ETH, over $140 billion). Notably, blockchain sleuths observed an ancient whale address (from Ethereum’s 2015 ICO era) move 203,200 ETH (≈$645 million) into a staking service on Sept. 8 ts2.tech. This whale had held the ETH dormant for 8 years; its decision to stake now was seen as a massive vote of confidence in Ethereum’s long-term prospects. Ethereum developers are currently working on the next major upgrade (dubbed “Prague” in dev circles), but that’s not expected until 2026. In the meantime, Ethereum’s focus is on supporting its burgeoning Layer-2 ecosystem and improving protocol efficiency. Layer 2 adoption remains strong – rollups like Arbitrum, Optimism, and zkSync handle a combined ~40% of Ethereum’s transaction load, and Base (Coinbase’s new L2) recently hit 1 million daily transactions, briefly even surpassing mainnet activity. No specific L2 launch or upgrade occurred on Sept. 9–10, but the trend is clear: Ethereum’s scalability strategy via Layer 2 is paying dividends in user adoption, even as it slightly reduces mainnet usage (and fee burn) in the short term ts2.tech.

Bitcoin (Layer 1): Bitcoin’s network operated normally, processing one block roughly every 10 minutes as designed. Hash rate remains near all-time highs (~500 EH/s), ensuring robust security. Over Sept. 9–10, Bitcoin’s mempool (queue of pending transactions) was relatively low, thanks to the calm trading environment – average transaction fees hovered around $1–2, and blocks cleared easily. The Bitcoin protocol hasn’t had a consensus change since the Taproot upgrade in 2021, and none is imminent. However, a notable development in Bitcoin’s ecosystem is the rise of Bitcoin Layer 2 and sidechain activity: for instance, the Lightning Network (BTC’s primary Layer 2 for fast payments) reached a record capacity of ~7,000 BTC (over $770 million) in its channels recently, reflecting greater use for instant Bitcoin transfers. On Sept. 9, popular wallet app Phoenix announced an update improving Lightning routing efficiency, and Bitcoin-focused firm Blockstream unveiled progress on “c-lightning” (their LN implementation). While these weren’t headline-grabbing news, they contribute to incremental improvements in Bitcoin’s payments use-case. Also of note, Bitcoin miners continue to expand and diversify. A recent CoinDesk report highlighted that the combined market cap of publicly traded mining companies hit $39 billion in August ts2.tech, a record, as firms like Riot, Marathon, and newly merged Hut 8–US Bitcoin Corp scale up operations. Many miners are branching into AI computing (renting out data center capacity for AI workloads) alongside mining, as seen in a spike in mining stocks after Microsoft’s $17.5 billion AI chip deal on Sept. 6 coindesk.com. This trend could fortify miners’ finances heading into 2026’s halving.

Solana and other Layer 1s: Solana (SOL) enjoyed renewed momentum, as mentioned earlier, hitting ~$222 which is its highest price point since early February coindesk.com. Solana’s network itself saw an uptick in NFT activity due to a hyped mint event on Sept. 9 (a popular profile-picture collection launched on Solana, temporarily driving network usage up). No network outages or slowdowns were reported, a positive sign given Solana’s past stability issues. Meanwhile, Cardano (ADA) hovered around $0.88 with its Vasil-era upgrades now fully absorbed; the community is looking ahead to CIP-1694 (governance changes) but no specific action occurred on these dates. XRP Ledger (XRPL), fresh off a partial legal victory declaring XRP “not a security” in certain sales, has been exploring new features like an automated market maker (AMM) integration. On Sept. 9, XRPL developers noted progress on AMM testing on Devnet, indicating that functionality could go live by year-end – potentially adding DeFi capabilities to XRPL beyond just payments ts2.tech.

New Layer 1 launches: Intriguingly, new blockchains continue to launch despite the saturated market. On Sept. 9, an initiative called MemeCore officially launched its mainnet in Panama City theblock.co. MemeCore bills itself as an EVM-compatible Layer 1 optimized for meme coins and community tokens, effectively trying to carve a niche as the go-to chain for viral crypto projects. It even introduced an AI “meme judge” to curate trending tokens, a gimmick to attract the meme culture. While such projects are often dismissed as fluff, some analysts note that these boutique chains can drive innovation (e.g. experimenting with new consensus mechanisms or tokenomics). MemeCore’s debut was relatively low-volume, but its team touts partnerships with influencers and a plan to issue a $SEA governance token in October (perhaps explaining OpenSea’s naming of its NFT token – though unrelated). Elsewhere, Google’s blockchain project – the Google Cloud Universal Ledger (GCUL) – wasn’t launched yet but did see new details emerge in late August that carried into discussion this week. Rich Widmann, Google’s Web3 lead, compared GCUL with Stripe’s and Circle’s L1 projects in a LinkedIn post coindesk.com coindesk.com, emphasizing Google’s aim to be a neutral, Python-smart-contract-capable chain for financial institutions. Industry watchers are keenly awaiting GCUL’s testnets (expected in 2025) since a big tech L1 could be a game-changer if it gains adoption.

Starknet and Layer 2 innovation: On the Layer 2 front, one noteworthy milestone (though it happened slightly before Sept. 9) was Starknet’s transition to a decentralized sequencer – making it the first ZK-rollup to significantly decentralize its operator set blog.alignedlayer.com. This move, completed in late August and highlighted by alignedlayer on Sept. 3, reduces reliance on a single company (StarkWare) and moves Starknet closer to being a community-run network. It exemplifies a broader trend of L2s maturing: Optimism and Arbitrum also have plans to decentralize their sequencer or governance in coming months. No major incidents were reported on L2s during Sept. 9–10; in fact, L2s continued humming with Base, Arbitrum, and Optimism collectively handling over 2 million daily transactions, easing congestion on Ethereum.

In summary, the major blockchain protocols spent early September in a phase of consolidation and optimization:

• Ethereum consolidated after its price peak, with data showing temporary outflows and reduced fees, but also long-term bullish signals like massive staking and continued L2 growth ts2.tech ts2.tech.
• Bitcoin maintained stability and saw its surrounding ecosystem (Lightning, mining) quietly strengthen.
• Other L1s like Solana and XRP had pockets of positive news (price highs, feature upgrades in testing) that kept their communities engaged.
• Layer 2s edged forward on the decentralization and adoption fronts, crucial for Ethereum’s scalability roadmap.
• And new players (whether serious like Google’s GCUL or quirky like MemeCore) indicate that innovation at the base layer isn’t slowing down, even if market focus is on higher layers and apps.

Investors and developers alike will be watching how these technical developments translate into user adoption. For instance, will Ethereum’s lower fees rekindle on-chain activity, or will users stay on L2s? Can Solana sustain its price and usage momentum without outages? And will we see a consolidation (or collapse) of smaller L1 chains, or can they find unique value propositions? These questions remain open as of Sept. 10, but the trajectory suggests a multi-chain, multi-layer world where each protocol is honing its niche.

NFT and Web3 News

The NFT and broader Web3 sector experienced significant shifts and pivots during the past two days, as the market for digital collectibles continues to evolve in the face of declining speculation and a search for sustainable models.

OpenSea’s $1 million NFT reserve: OpenSea, the largest NFT marketplace, made waves with a new initiative aimed at preserving NFT culture. On Sept. 9, OpenSea unveiled a $1,000,000 “NFT Reserve” fund that it will use to acquire and hold culturally significant NFTs for the community cointelegraph.com. The idea is to establish a sort of digital art museum or endowment, ensuring that landmark NFTs are kept in trustworthy hands and not lost or forgotten if hype dies down. OpenSea’s CEO Devin Finzer said the company wants to “support the NFT ecosystem’s long-term growth and historical record.” The reserve’s first purchase was immediately announced: OpenSea bought CryptoPunk #5273 for 65 ETH (around $282,000) to inaugurate the collection unchainedcrypto.com. CryptoPunk #5273 is a mid-tier Punk but was chosen to symbolize the early NFT movement’s ethos (CryptoPunks being among the first major NFT projects). Over the coming months, OpenSea plans to use the fund to buy a variety of NFTs spanning art, music, virtual land, etc., focusing on pieces that represent milestones or cultural phenomena. They’ve invited the community to suggest which NFTs deserve inclusion. This move also comes as OpenSea is preparing to launch its own native token ($SEA) in October (as per some reports), and a strong community-focused gesture could help its reputation ahead of that drop.

NFT market downturn and platform retrenchment: OpenSea’s initiative can be seen as a response to the stark decline in NFT trading volumes in 2025. Weekly and monthly sales have plummeted compared to the boom of 2021–2022 and even the mini-resurgence in mid-2025. Data from DappRadar and CryptoSlam shows the first week of September 2025 saw only ~$92 million in NFT sales across all platforms ts2.tech. For context, weekly volumes often topped $200M at various points in 2022, and monthly volumes in mid-2025 were in the $115–170M range ts2.tech. The steep drop (roughly 20–40% down from mid-year) highlights waning speculative interest and a lack of major new collections capturing lightning-in-a-bottle lately. Floor prices of many “blue-chip” NFT collections (Bored Ape Yacht Club, Azuki, Doodles, etc.) have slid 30–50% from their highs earlier in 2025, leading some collectors to exit and liquidity to dry up.

This downturn has forced many platforms to scale back or shut down NFT offerings:

• Kraken NFT: U.S. crypto exchange Kraken decided to sunset its NFT marketplace in early September. Citing low volumes and a refocus on core exchange business, Kraken’s NFT platform (launched in 2023) will cease operations by month’s end. Users were asked to withdraw their NFTs. Kraken follows Bybit, another exchange that closed its NFT market unit over the summer due to “lack of interest.” ts2.tech
• GameStop NFT: The video game retailer-turned-meme-stock GameStop had launched an NFT marketplace in 2022 amid much fanfare. However, as interest dwindled, GameStop quietly wound down its NFT operations. On Sept. 9, the company confirmed it has closed the dedicated NFT website and integrated whatever remains (mostly gaming-related digital assets) into its main commerce site. GameStop’s experiment, which once symbolized the crossover of meme stock culture and NFTs, thus comes to an anticlimactic end ts2.tech.
• Reductions elsewhere: Meta (Facebook) had already pulled support for NFTs on Instagram back in early 2025. OpenSea itself in August moved to optional creator royalties (a controversial shift that some say contributed to market cooling). Rival marketplace Blur – which overtook OpenSea in volume earlier this year by zero-fee trading aimed at pros – has also seen volumes shrink and is attempting to pivot toward a blend of NFTs and DeFi (offering lending, etc., for NFTs).

Christie’s shuts NFT department: In the traditional art world, a symbolic development underscored the end of the “separate NFT mania” era: Christie’s auction house disbanded its dedicated digital art team and platform, Christie’s 3.0 ts2.tech. This blockchain-powered NFT marketplace was launched by Christie’s in 2022 to much fanfare (after the success of Beeple’s $69M NFT sale through Christie’s in March 2021 ts2.tech). But by early September 2025, Christie’s new CEO decided to fold all NFT sales back into the main auction categories (such as Post-War & Contemporary Art) ts2.tech. Effectively, Christie’s will still sell NFTs, but not via a specialized on-chain platform – they will be treated as just another medium, consigned and auctioned alongside paintings, sculptures, etc. This move reflects that, in a down market, standalone NFT departments may not be justified; instead, auction houses are normalizing NFTs within their traditional frameworks. Sotheby’s and Phillips have taken similar approaches, scaling back dedicated NFT initiatives (though Sotheby’s continues to do curated NFT sales, and still runs its Sotheby’s Metaverse platform for now). The fine art NFT market has notably cooled: after peaking in 2021–22, very few seven- or eight-figure NFT art sales have occurred in 2025. Many high-end collectors pivoted back to physical art or to more utility-driven digital assets.

Web3 gaming and metaverse: On the Web3 gaming front, the period saw a mix of quiet progress and lingering skepticism. No blockbuster “play-to-earn” games launched this week, and user metrics for existing ones like Axie Infinity or STEPN remain far below their heyday. However, developers are still building. For instance, Yuga Labs (creator of Bored Apes) is continuing work on its Otherside metaverse; on Sept. 10 Yuga released tech demos of the Otherside’s latest environment, impressing some with graphics but prompting questions on how they’ll attract players. Meanwhile, a report from DappRadar noted that Web3 gaming accounted for ~36% of blockchain dApp usage in early September, indicating it’s a large share of on-chain activity – yet much of that is driven by simple DeFi-like games or gambling dApps rather than AAA-quality titles.

NFTs with utility and community focus: One trend that did stand out is projects emphasizing utility and community rather than pure collectibility. For example, Ethereum Name Service (ENS) domain NFTs saw a spike in registrations around Sept. 9 as users anticipate more Web3 use for decentralized domains. Also, Rarible (an NFT marketplace) announced it would pivot entirely to community marketplaces, even delisting collections that don’t honor royalties – a bold stance during Blur’s royalty-optional regime. This suggests parts of the NFT industry are doubling down on artist support and community building, even at the expense of short-term volume. On Sept. 10, VeeFriends (Gary Vaynerchuk’s NFT project) hosted a successful virtual conference exclusively for its token holders, showcasing how NFTs can be tickets to experiences – a model that could sustain beyond hype cycles.

In summary, the NFT/Web3 space over Sept. 9–10 was marked by a reassessment of strategy in a bear market:

• Market leaders like OpenSea are leaning into culture and long-term value (creating a reserve of iconic NFTs) rather than chasing trading volume.
• Many platforms are cutting losses on underperforming NFT ventures, consolidating or closing them to focus on more promising areas.
• Cultural institutions are integrating NFTs into the traditional fold, implying that the distinction between “NFT art” and “art” may dissolve as the market matures.
• The emphasis is shifting toward utility, community, and preservation – suggesting that while speculative frenzy has died down, the NFT space is not dead, but rather evolving to be more sustainable. Builders remain active, and core believers are still collecting (albeit more discerningly).

As one crypto art analyst put it: “The NFT market of 2021 was the Wild West gold rush. The NFT market of 2025 is more like an art gallery in a recession – quieter, more serious, but still very much alive.” The coming months will test whether initiatives like OpenSea’s reserve or community-centric projects can keep the flame burning until the next upcycle.

Security Incidents, Hacks, and Exploits

Unfortunately, the crypto sector’s perennial cat-and-mouse game with hackers continued over the past two days, with several notable security incidents underscoring both the evolving tactics of attackers and the industry’s growing responsiveness.

$2.4M DeFi hack on Sui (Nemo Protocol): On Sept. 8 (news came to light by Sept. 9), a DeFi yield platform called Nemo on the Sui blockchain was exploited for roughly $2.4 million in USDC stablecoin ts2.tech. Nemo is a decentralized yield aggregator that had been gaining popularity on Sui (a newer Layer-1). According to blockchain security firm CertiK, the attacker took advantage of a vulnerability in Nemo’s smart contracts that allowed the minting of excessive reward tokens. The attacker then swapped those ill-gotten tokens for USDC and bridged the funds from Sui’s network to Ethereum via Arbitrum, to launder the proceeds ts2.tech. In doing so, they drained about 75% of Nemo’s Total Value Locked (TVL), causing it to plummet from ~$3.2M to under $800k. The Nemo team confirmed the exploit and paused the protocol to prevent further damage. They are working with Sui authorities and have contacted exchanges to blacklist the attacker’s addresses. However, given the relatively small amount and the attacker’s head start, recovery seems unlikely. This hack highlights that even newer blockchains like Sui (which launched in 2023 with a focus on safety in its Move programming language) are not immune to DeFi bugs – often the vulnerabilities lie in the application layer, not the base chain. The incident also sparked debate on whether Sui’s ecosystem might consider implementing circuit breakers or insurance funds as it matures.

$41M SwissBorg exploit via partner API: The largest heist of the week came from an unexpected vector – not a direct hack of a crypto platform, but a compromise of a third-party service it relied on. SwissBorg, a Swiss-based crypto wealth management app, revealed on Sept. 9 that its Smart Yield program suffered a loss of about $41.4 million in crypto (mostly SOL) due to an exploit ts2.tech. SwissBorg’s Smart Yield feature allows users to stake assets like Solana and earn rewards, but instead of running its own validator, SwissBorg used a service called Kiln – a staking-as-a-service provider – to stake SOL on behalf of users. Attackers managed to hack into Kiln’s API or authentication mechanisms that SwissBorg’s system used ts2.tech. By doing so, they tricked SwissBorg’s infrastructure into redirecting a large batch of SOL intended for staking to the attackers’ address instead ts2.tech. In essence, when SwissBorg initiated a staking operation for ~193,000 SOL (worth over $40M), the compromised link meant the SOL never reached the Solana network’s validators – it was siphoned out before staking.

Crucially, SwissBorg emphasized that its own platform wasn’t hacked – user funds in other features and wallets remain secure. This was a supply-chain attack exploiting trust between SwissBorg and its partner. SwissBorg responded admirably: within hours, they halted all yield operations, isolated the vulnerability, and announced they will reimburse 100% of affected users from company reserves ts2.tech ts2.tech. Fewer than 1% of SwissBorg’s users were in the SOL yield program, so the number of impacted accounts is limited, but the sum is large. The company’s swift commitment to cover losses drew praise as an example of putting customers first (albeit a costly one for SwissBorg’s balance sheet). SwissBorg is now working with blockchain analytics firms and law enforcement to trace the stolen funds – a portion of the SOL has been converted to other assets, complicating tracking. They’ve also engaged white-hat hackers to audit all integrations and promised a full post-mortem. The incident raised awareness about the risks of delegating core functions to third parties. As one analyst noted, “If a platform outsources yield generation, their risk is only as low as that provider’s security – and you inherit any vulnerability they have.” ts2.tech. Expect many crypto apps to reevaluate the security of their API keys and third-party dependencies after this.

Major NPM package hack (supply-chain attack): In what could have been a catastrophic attack on the wider crypto ecosystem, security researchers uncovered that hackers had backdoored over 20 popular NPM packages (JavaScript libraries) used by countless web projects, including crypto applications ts2.tech. NPM (Node Package Manager) is a primary repository for open-source code. The targeted packages – with a combined 2 billion weekly downloads – included extremely common utilities for web and crypto development (for example, packages related to data validation, string parsing, etc.). The attackers managed to publish malicious updates to these libraries in early September. The malicious code was designed to trigger specifically on crypto-related websites: it would detect if it was running on a site dealing with cryptocurrency wallets or transactions, and then attempt to steal private keys or seed phrases by injecting extra code at runtime financemagnates.com thehackernews.com. This is an incredibly sophisticated supply-chain attack, as it exploits developers’ trust in open-source libraries. Any project that blindly updated to the compromised versions would unknowingly include a backdoor.

Fortunately, by Sept. 10, the hack was exposed by a coalition of security experts from firms like Palantir and Forta. They rushed to coordinate takedowns of the malicious NPM versions and alerted the community. It appears the hackers were only able to actually execute the exploit on a small number of sites before being stopped – and unbelievably, they netted only around $50 worth of crypto from one personal wallet, likely because the malicious code was caught in time ts2.tech. One security researcher quipped that the hackers “somehow pulled off a Mission Impossible vault heist, only to steal lunch money” – hence the “Fort Knox keycard used as a bookmark” analogy making the rounds on crypto Twitter ts2.tech. Jokes aside, this was a major wake-up call. It showed that critical infrastructure – not just at the blockchain level, but in the web code that interfaces with blockchains – can be targeted. The incident prompted the Ledger CTO to urge hardware wallet users to temporarily pause onchain transactions until certain they weren’t interacting with compromised dApps theblock.co. Many projects did emergency audits to see if they included the affected packages. This saga will likely accelerate efforts in supply-chain security like code signing, verified builds, and perhaps decentralized package registries with reputation systems to prevent a single bad actor from pushing malicious updates.

Other notable exploits and outcomes:

• Kinto DeFi closure: A follow-up from a July hack: Kinto, a “CeDeFi” exchange on BNB Chain that suffered a $1.5M exploit in mid-July (attackers minted fake tokens and drained liquidity, crashing its token by 95%), announced it couldn’t recover financially and will shut down by Sept. 30 ts2.tech ts2.tech. The team attempted a “Phoenix” revival plan (new token, loans to replenish funds) but failed ts2.tech. They plan an orderly wind-down, using remaining assets to partially reimburse lenders and even adding a small personal contribution to user refunds ts2.tech. This underscores that not every hack ends in a rescue or bailout – some projects simply cannot survive the hit.
• Bybit and KuCoin rumors: Unconfirmed talk circulated of a potential API leak at Bybit and a smaller hot wallet breach at KuCoin (which has happened before in 2020), but both exchanges denied any major incidents in the past week. It appears a few Bybit users fell for phishing, which some misinterpreted as a platform issue. This is a reminder that often individual account compromises (phishing, SIM swaps) are mistaken for platform hacks on social media.
• Phishing scams: The period saw a spike in targeted phishing attacks, notably an X (Twitter) phishing campaign where verified accounts were hacked to promote fake token sales (one such scam impersonated the popular Layer-2 Arbitrum, costing victims over $100k). While not a “hack” of a protocol, these social engineering ploys continue to be a major security threat in crypto – requiring constant vigilance from users.

Through all this, a silver lining is visible: the industry’s response and resilience are improving. In each case above, either white-hat hackers, affected companies, or the broader community acted swiftly to mitigate damage:

• CertiK and PeckShield broadcast the Nemo hack within hours, helping exchanges flag the attacker’s addresses.
• SwissBorg’s transparency and immediate reimbursement pledge turned a potentially reputation-ruining hack into an example of good crisis management ts2.tech.
• The NPM attack was defused by collaboration across security teams before it could wreak havoc, likely saving millions of dollars and countless wallets.

That said, complacency is not an option. As one cybersecurity expert noted in a Cointelegraph interview: “Crypto may have matured, but so have the hackers. They’re exploiting everything from smart contracts to Web2 infrastructure. The only answer is defense-in-depth – audits, bug bounties, better key management, user education – and even then, expect the unexpected.” The events of Sept. 9–10 reinforce that security remains the Achilles’ heel of crypto, even as the space grows. Each exploit is a costly lesson that hopefully leads to stronger safeguards. The hope is that over time, much like the internet industry did, crypto will develop robust standards and practices that make successful hacks rarer. Until then, the community will stay on high alert – because in blockchain, code is law, and bugs can be catastrophic.

Quotes:

“Cryptocurrencies have been trading at a subdued level as the Fed is conflicted over cutting rates amid stubborn inflation.” – Jeff Mei, COO of BTSE, on the cautious crypto market awaiting macro signals ts2.tech.

“We owe it to the millions of Americans who participate in this market to create clear rules of the road that protect consumers and safeguard our markets… We also must ensure that digital assets are not used to finance illicit activities or to line the pockets of politicians and their families.” – Framework of Senate Democrats, emphasizing consumer protection and calling out potential conflicts of interest (a veiled reference to the Trump family’s crypto ventures) in future U.S. crypto legislation coindesk.com.

“It’s like finding the keycard to Fort Knox and using it as a bookmark.” – Anonymous cybersecurity analyst, quipping about the hackers who backdoored NPM libraries to steal crypto but only managed to abscond with ~$50 before being stopped, highlighting the oddly small payoff of a high-impact supply-chain attack ts2.tech.

“Google for AI agents.” – Coinbase’s developers, describing the new x402 Bazaar platform which allows autonomous AI agents to discover and pay for online services using crypto micropayments coindesk.com.

“Crypto is exploding… I’d say right now, the crypto space is at least 50% of what I’m doing.” – Eric Trump, co-founder of American Bitcoin Corp, rejecting conflict-of-interest concerns and touting crypto as a major focus of his business life as the Trump family deepens its involvement in the sector reuters.com reuters.com.

“The NFT space is arguably maturing: projects are focusing on utility and community… the era when top auction houses ran separate NFT platforms may be passing.” – Crypto Briefing report, on Christie’s folding its NFT arm and the broader pivot in the NFT market from speculative frenzy to long-term integration ts2.tech ts2.tech.

Sources: Cointelegraph cointelegraph.com cointelegraph.com ts2.tech; CoinDesk coindesk.com coindesk.com coindesk.com; Cryptonews cryptonews.com cryptonews.com; TS2 Space (Blockchain Highlights) ts2.tech ts2.tech ts2.tech ts2.tech; Intellectia (via CoinMarketCap) intellectia.ai; The Paypers thepaypers.com thepaypers.com; Reuters reuters.com reuters.com; Decrypt ts2.tech; Caleb & Brown Weekly Rollup calebandbrown.com; Yahoo Finance finance.yahoo.com; Cryptonews.com.au ts2.tech ts2.tech.