| Traders are short ETH in size. According to position data from the CME and Deribit, traders are betting ETH goes a lot lower from here. Shorts are ramping up, with $130 million in puts targeting a $2,000 strike price while a record $1.45 billion short has been amassed on the CME—the largest in history.
Short interest has surged 500% since November, defying expectations of an immediate post-election rebound.
At the same time, ETH ETFs brought in $790 million last week, outpacing Bitcoin flows for the first time this year. It's nuanced, as some of this short positioning likely reflects the basis trade, where you go long spot/ETF and sell futures against it, capturing the spread. Or, all the bears are right and we tag 2k or lower... I just know I wouldn't want to be on the wrong side of an ETH squeeze.
Uniswap launches its L2. Uniswap has introduced Unichain, its new Ethereum Layer-2 blockchain, which it's claiming is the "fastest chain in the industry" after processing 88 million test transactions.
Designed to enhance DeFi efficiency, Unichain offers one-second block times and 95% lower gas fees than Ethereum, supporting cross-chain liquidity and decentralized app deployment. As a leading DEX, Uniswap aims to reduce congestion and costs on Ethereum but faces concerns that Layer-2 solutions could erode Ethereum's market cap over time.
Stablecoin growth is a bullish signal for adoption. Total stablecoin market cap is now $211 billion after expanding by $16.97 billion year-to-date. A great start to 2025 and a signal of bullish momentum for Bitcoin and crypto at large.
Tether (USDT) leads with a $141.9 billion market cap, while Circle's USDC rebounded to $56 billion after a previous low of $24 billion in November 2023, reflecting a 78% year-over-year growth. This surge in stablecoin supply enhances liquidity, and historically has preceded increased buying pressure across crypto assets. | 
