BTC Roars, Bond Fears Deepen

GM Anon!

BTC just printed fresh all-time highs above $111K, ETFs are seeing their strongest inflows in months, and Hyperliquid is ripping through the leaderboard. Meanwhile, TradFi is flashing warning signs—yields climbing, banks wobbling, and macro pressure mounting.

Markets are moving fast, narratives are shifting, and capital is rotating.

Let’s break it all down.

TLDR

• Bitcoin hit a new all-time high above $111K, supported by strong ETF inflows and record open interest.

• Bond yields spike globally, with U.S. 30-year and Japan 40-year hitting multi-decade highs.

• U.S. banks are sitting on $482B in unrealized losses, raising systemic risk concerns.

• Hyperliquid (HYPE) surged to a new all-time high and led all chains in TVL growth this week.

• Solana generated over $40M in fees, more than triple Ethereum’s, signaling major on-chain momentum.

• DEX volume rebounded to $101B, with L2s and perps drawing liquidity back on-chain.

• AI narrative heats up again as VIRTUAL and COOKIE lead mindshare and smart money flows.

• Fartcoin saw a sharp decline in both mindshare and smart money holdings, pointing to rotation.

Market Update

Global markets are treading on uneasy ground as rising yields put pressure on risk assets. The U.S. 30-year Treasury yield surged to levels not seen since 2007, while Japan’s 40-year yield continued its parabolic climb, hitting yet another all-time high. The 2-year U.S. yield pushed back above 4%, and with long-dated yields climbing sharply, risk appetite continues to narrow.

Mortgage rates in the U.S. also jumped back to 7.5%, raising concerns over housing and lending conditions. According to Ray Dalio, the bond market is the key space to watch—and it’s sending warning signals. Lastly, U.S. banks are reportedly sitting on $482B in unrealized losses, and fears of renewed fragility in the financial system are weighing on equities.

Yet, in crypto, BTC continues to lead from the front. The asset pushed to a fresh all-time high above $111K before easing slightly. The move was buoyed by a renewed wave of demand through spot ETFs, which saw their strongest inflows in months. Ethereum ETFs also showed steady uptake, reinforcing broader institutional interest across the two leading digital assets.

Open interest in BTC futures hit new highs, even as the long/short ratio fell to a 3-year low, suggesting broader market participation and potential positioning for further upside.Despite the move, funding rates across major pairs remain surprisingly low, hinting that leverage has not yet returned in full force.

Elsewhere, HYPE continues to rip, hitting another all-time high and now up around 3x over the past month. Meanwhile, Cetus, a DeFi protocol on Sui, was hacked for $234M, prompting broader security concerns.

Regulatory headlines remain steady—Hong Kong passed its stablecoin framework, VanEck announced a new private digital asset fund, and the CFTC teased that U.S.-based crypto perpetuals may soon get the green light.

With Trump reiterating his belief that U.S. crypto dominance will continue, and odds of BTC reaching $150K in 2025 sitting at 43%, the macro environment may be shaky—but crypto’s narrative strength is holding firm.

Market Data Points

DEX trading is back on the upswing after a record-high spike in early 2025 and a quick pullback, weekly on-chain volume is climbing again to $101B this week, with DEXs still handling ~38 % of total spot activity.

Momentum is returning as new L2s and perp DEXs pull liquidity on-chain, and the dominance trend suggests traders are staying permissionless. If weekly volume pushes above the March plateau, we’ll likely see another leg higher.

Ethereum is seeing a sharp uptick in network activity, with active addresses surging above 500K in recent days—marking one of the strongest recoveries since early 2025. After a multi-week slump below the 450K mark, this renewed momentum suggests a fresh wave of user engagement, fueled by DeFi and memecoin rotations.

Solana has pulled ahead in a big way — generating over $40M in revenue this past week, more than 50% of all blockchain fees. That’s more than triple Ethereum’s take and a clear sign of how much activity is flowing through Solana right now. Between memecoins, trading bots, and network growth, the green bars on the chart say it all.

With BTC already breaking into new all-time highs, the percentage of wallets in profit has surged back to near-complete levels. Over 95% of BTC supply is now in the green — a clear sign of how strong this rally has been. With nearly every holder in profit, the focus now shifts to whether momentum carries higher or if a wave of profit-taking is around the corner.

TVL flows this week spotlight Hyperliquid as the breakout performer, up +24.22%, leading all chains by a wide margin. Base and Avalanche also posted strong gains at +10.61% and +10.41%, while Bitcoin continues to attract capital with a +9.89% rise. 

Meanwhile, Ethereum and Solana saw steady growth, holding ground as dominant chains. Lower down, Sui and Aptos slipped into the red, hinting at short-term outflows or rotation.

Majors & Memes

BTC pushed to fresh all-time highs this past week, but despite the breakout, much of the altcoin market remains notably flat. Majors like ETH (+0.9%) and BNB (+2.5%) continue to lag in momentum, even as ETH rebounded sharply from local lows. The result is a disjointed market structure where BTC dominance holds firm while broader altcoin sentiment struggles to follow through.

Among this week’s standouts, Hyperliquid (HYPE) surged 21.9% with nearly $500M in volume—highlighting sustained interest in perp infrastructure narratives. Fartcoin also posted a strong 20.8% gain, though this move was foreshadowed by weeks of smart money accumulation. That same capital now appears to be rotating elsewhere—more on that below. Worldcoin (WLD) and Curve (CRV) also impressed with 24.8% and 15.8% gains, reflecting renewed appetite for AI-aligned tokens and DeFi governance plays.

Virtuals Protocol (VIRTUAL) (+8.6%) and AI sector names like FET (+14.4%) are flashing early signs of rotation, with rising attention metrics and wallet activity across the board.

For now, the market remains in flux—caught between a bullish BTC structure and sluggish alt breadth. Select narratives are breaking out, but sustained rotation has yet to fully materialize.

Mindshare

This past week in the Solana ecosystem saw a clear shift in trader attention, with a few newer tokens capturing the spotlight while others faded hard from view.

DIS led the mindshare race decisively from May 21 onward, dominating the conversation and absorbing much of the ecosystem’s focus. Gib and moonpig also pushed up sharply in attention, with both seeing a sustained rise over the final stretch of the week. 

Tokens like KING, BON, and LABUBU, which were more prominent earlier in the week, started losing traction as trader focus consolidated. Meanwhile, TROLL and BUDDY quietly climbed up the ranks, slowly building presence.

Notably, Fartcoin—once dominant—has all but vanished from the mindshare chart, highlighting just how quickly sentiment can shift on Solana. 

While attention score doesn’t always correlate directly with price action, it offers a strong pulse on where trader interest is moving—and where the next breakout narrative might take root. As always in Solana, mindshare is one of the key early signals.

As the market begins to heat up again and coins like VIRTUAL and COOKIE continue to show strength, attention is visibly rotating back into the AI agent narrative. Notably, Fartcoin—which recently experienced massive smart money accumulation—has seen a sharp drop in both mindshare and positioning across key dashboards. This shift suggests traders are cycling profits into other plays rather than exiting the sector entirely.

Looking at the latest AI agent mindshare map, VIRTUAL has surged ahead with a commanding 23.95% share, gaining nearly 5% this week. COOKIE remains a key player despite a slight pullback, while REKT, RETARD, and AIXBT are quietly gaining traction. 

The sharp drop in Fartcoin—which now holds just 14.33%—echoes its declining presence in trader sentiment, reflecting what we saw on the 7-day ecosystem attention chart as well.

All of this reinforces one thing: while short-term rotations are expected, the AI agent sector still currently holds weight. Coins gaining both smart money exposure and narrative attention, like VIRTUAL, are worth watching closely as this meta continues to evolve.

Smart Money Accumulation 

This week saw multiple new Solana tokens climb the ranks of smart money accumulation, with traders rotating into fresh positions across the ecosystem. Despite broader volatility, the appetite for mid- and low-cap Solana plays remains strong.

LAUNCHCOIN remains the most widely held token, tracked across 17 wallets, though smart money holdings declined by -20.94% over the week. With a balance still exceeding $2M, this likely reflects partial exits or rebalancing after sustained positioning in prior weeks.

Meanwhile, IBRL and DIS made their first appearance on the leaderboard, with 15 and 11 wallets respectively already holding sizeable allocations—$972K and $624K—suggesting confident entries into newer rotations.

RIPVC showed continued momentum, with a +12.21% increase in smart money holdings and a wallet balance of $238K across 11 holders. It’s one of the few tokens that not only held its ground but attracted increased concentration.

Fartcoin, on the other hand, saw sharp outflows. Smart money holdings dropped -30.11%, though the total balance remains high at nearly $3M. This may reflect top-heavy positioning being reduced after recent outperformance.

Two standout climbers were LABUBU and DUPE. LABUBU saw a +37.09% spike in holdings this week, with nine wallets now controlling nearly $480K worth. DUPE followed with a +12.81% gain and sits at over $530K in tracked holdings, a sign of steady conviction building.

Finally, PHDKitty, KLED, and gib also entered the rankings for the first time. While still early, their presence is notable as smart money traders begin building exposure.

This week’s Ethereum smart money accumulation data reveals continued conviction in high-beta tokens, while several lower-cap entries gained traction among active trader wallets.

CULT led the list with 11 tracked wallets and a notable +23.87% increase in holdings, pushing total value above $740K. That size and growth combination suggests confident entries with this NFT memecoin which has dominated the accumulation charts on and off. 

Mog was the standout mover by percentage, with a staggering +131.59% jump in smart money allocation across six wallets. While the dollar balance ($299K) is moderate, the speed and size of the increase hint at momentum-driven inflows.

KTA also posted a solid +16.96% increase across six holders, topping $1.3M in value—one of the strongest absolute wallet balances in the group. This makes it a clear frontrunner among mid-sized Ethereum plays this week.

Meanwhile, SHRUB and JOE saw modest increases of +2.1% and +17.62%, respectively, both held by six and five wallets. JOE’s $212K balance stands out as a growing position with steady build-up.

New arrival LYLO entered the leaderboard, tracked in five wallets and currently valued at $106K. PEPE remained flat (-0.0%), while BITCOIN surged +51.22%, with four wallets now holding nearly $200K.

MOONKIN and COCORO rounded out the list, with mixed flows. MOONKIN climbed +12.56%, while COCORO saw minor outflows (-0.94%), despite both sitting at comparable dollar balances near $200K.

Overall, the Ethereum ecosystem is seeing steady but diversified accumulation. While no singular meta dominates, consistent wallet-level activity across new and returning tokens highlights trader appetite in a still-rotating environment.

That wraps up this post—we hope you found the insights valuable. See you next week, anon! 🚀