Bitcoin and major cryptocurrencies saw a recovery this week, rebounding from initial impacts of geopolitical events. Bitcoin briefly touched $73,000, supported by substantial inflows into U.S.-listed spot Bitcoin ETFs.
In the decentralized finance (DeFi) sector, the Aave ecosystem is experiencing a significant governance dispute. The Aave Chan Initiative (ACI), a key delegate, announced it will cease engagement with the Aave DAO within four months, citing concerns over governance standards and voting processes. ACI founder Marc Zeller stated the organization's future is tied to Aave, and without that, its role will conclude.
Separately, a strategist from Strive predicts that artificial intelligence-driven deflation could propel Bitcoin to $11 million by 2036. This forecast hinges on aggressive assumptions about AI's productivity gains, sustained monetary expansion by central banks, and Bitcoin's increasing share of global financial assets. However, other analysts suggest a more conservative price range, citing Bitcoin's growing market capitalization and declining volatility.
Stablecoin inflows have rebounded to $1.7 billion, indicating renewed on-chain activity amidst ongoing regulatory discussions in Washington regarding yield payments.
Solv Protocol is offering a 10% bounty after a vault exploit resulted in a $2.7 million loss. The platform is working with security firms to investigate the incident, which impacted a limited number of users and affected a Bitcoin-pegged token.
Bybit reported blocking over $300 million in suspected fraudulent withdrawals in Q4 2025, utilizing an AI-driven risk monitoring system. The system flagged numerous suspicious transactions, with many users voluntarily canceling withdrawals after receiving real-time alerts.
The broader DeFi market showed positive performance, with most large-cap cryptocurrencies ending the week in the green. The River (RIVER) token led gains with a 94% increase.