Bitcoin Tops $125K as Stablecoins Pass $300B

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Good Morning,

Bitcoin smashed through $125K and stablecoins topped $300B, showing the market’s heating up again. Over at MetaMask, a $30M LINEA rewards drop is on the way, likely paving the road for the long-awaited MASK token.

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In Today's Email:

• What Matters: Bitcoin Tops $125K as Stablecoins Pass $300B 📈 

• Product of the Week: Tether & Antalpha’s Gold-Backed Crypto Treasury 👀 

• Charts: Aster Token Slides, MetaMask’s $30M Rewards & $MASK? ⁉️ 

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WHAT MATTERS

Bitcoin Tops $125K as Stablecoins Pass $300B

State of play: The crypto market is entering a new phase of strength, marked by two major milestones:

• Bitcoin set a fresh all-time high above $125,000 amid its historic “Uptober” rally, gaining over 11% in the first five days of October.

• Analysts attribute the surge to an accumulation phase and rising inflows into spot Bitcoin ETFs.

• Meanwhile, the ongoing US government shutdown has reinforced Bitcoin’s appeal as a store of value.

• At the same time, the total market capitalization of stablecoins has surpassed $300B for the first time, according to DeFiLlama.

• Tether’s USDT remains dominant with $176B in circulation, followed by Circle’s USDC at $74B.

Why it matters: Bitcoin’s record high alongside expanding stablecoin liquidity suggests that capital is returning with confidence rather than hype.

Our take: This phase looks more sustainable than past cycles. ETF inflows, stablecoin growth, and policy clarity are reinforcing each other, forming a foundation for long-term market depth.

For builders and investors: The key risk is that Tether’s dominance still concentrates systemic exposure, leaving the market vulnerable if confidence wavers.

PRODUCT OF THE WEEK

Tether & Antalpha’s Gold-Backed Crypto Treasury

Tether and Singapore-based Antalpha Platform are seeking to raise at least $200M to launch a digital asset treasury company focused on acquiring Tether’s gold-backed token, XAUT, according to Bloomberg.

• The move would create one of the first dedicated treasuries centered on tokenized gold, blending traditional commodity exposure with on-chain liquidity.

• Antalpha, a close partner of China’s mining giant Bitmain, previously collaborated with Tether on XAUT-backed lending and infrastructure solutions.

• With ~250K XAUT in circulation, representing more than 7.6 tons of gold, the initiative signals growing institutional interest in metal-backed digital assets.

Other cool products:

• Almanak, a DeFi Agent Platform.

• Maestro, a Telegram trading bot.

• WiFi Map, a decentralized connectivity platform.

• Flap, a token launch and trading platform on BNB Chain.

• Mimic, a platform to model and automate DeFi operations.

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CHARTS OF THE WEEK

Aster Token Slides After DefiLlama Flags Wash Trading

State of play: Aster’s token dropped more than 10% after DefiLlama delisted its perpetual trading data, citing possible wash trading activity.

• DefiLlama founder 0xngmi shared charts showing Aster’s trading volumes had begun moving almost identically to Binance’s.

• The correlation raised questions about the authenticity of Aster’s reported activity, especially given that the exchange doesn’t provide granular trade-level data for verification.

• Aster, which counts former Binance CEO Changpeng “CZ” Zhao as an advisor, had recently led all perpetual DEXs in daily volume and fees before the delisting.

Our take: Aster’s surge now faces a credibility test. Without clear trade data, even rapid growth can look manufactured.

MetaMask’s $30M LINEA Rewards & $MASK?

State of play: MetaMask is preparing to launch a major rewards program that will distribute $30M+ in LINEA tokens during its first season. The program will include referral bonuses, mUSD incentives, and partner rewards, with “meaningful connections” to the upcoming MetaMask token, according to the team.

• Linea, the L2 incubated by Consensys, shares close ties with MetaMask’s new ecosystem push, following the launch of its own token and mUSD.

• While the initiative is pitched as a way to “give back to the community,” some users on X questioned whether the rollout would favor insiders or exclude certain jurisdictions.

• Meanwhile, MetaMask’s trading volume has not shown any significant spike and remains well below the highs reached in 2023 and 2024.

Our take: MetaMask’s rewards push feels like a warm-up for the MASK token launch. It could tie users more closely to the Linea and mUSD ecosystem, but the flat trading volumes show interest isn’t there yet.

QUICK BITES

• Stablecoin market boom to $300B.

• Companies spent $1.2B on Bitcoin last week.

• Blockchain network revenues declined 16% in September.

• MetaMask's rewards program will distribute $30M in LINEA.

• Bitcoin hits new all-time high, crosses $125,000 for the first time.

• Crypto exchange spot volumes edge down to $1.67T in September.

• Bitcoin ETFs rebound with second-highest weekly inflows since launch.

• Abracadabra loses $1.8M in protocol's third major DeFi hack since 2024.

• Aster's token drops 10% after DefiLlama head raises wash trading concerns.

NOTEWORTHY READS & MEME

• Cred’s read on On Dynamic Position Sizing

• Nic Carter’s read on The stablecoin duopoly is ending

• Xbt2025’s read on Hyperfinancialization and Game Theory

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