Fed Greenlight Bullmarket

GM Anon!

The Fed finally cut rates by 25 bps, stocks ripped to new ATHs, and Powell tried to calm things down with talk of moving slowly. That set the stage for crypto to flex its own momentum.

BNB smashed through $1,000, AVAX and NEAR led the L1 pack, and Solana flows stayed hot with billion-dollar DAT announcements. On the meme side, CARDS kept the crown while TROLL crept in as the late-week riser.

It’s a market that’s selective, but risk-on.

Now let’s jump in 🚀

TLDR

• Fed cut 25 bps; Powell cautious; U.S. stocks at ATHs, small caps strong; Treasuries stalled; BoE/BoJ held; China banned Nvidia chips.

• BTC steady, ETH lagged, alts led; BNB > $1,000 ATH; AVAX and NEAR outperformed majors.

• ETF flows accelerating: DOGE/XRP ETFs $50m debut; XRP ETF launch ahead; Bitwise filed tokenization, stablecoin & AVAX ETFs; SEC/UK open to crypto ETFs.

• Solana ecosystem hot: $300m Brera DAT, $4b Forward SOL buy, $15m DFDV; Sharps x BONK, Wormhole W token, STBL $2.4b.

• Ethereum upgrades: Fusaka audit + Dec upgrade, Plasma TGE Sept 25, Base exploring token, ETH Foundation AI team.

• Regulation & politics: Binance near DoJ monitor end, CZ rumors; SEC-Gemini settlement.

• Institutions: StanChart $250m crypto fund, DBS x Ripple tokenization, GD Culture $875m BTC buy.

• Stablecoins/payments: Circle USDC on Hyperliquid, Kraken collab, MetaMask mUSD + token soon, PYUSD expansion.

Market Update

Markets spent the week digesting the Fed’s 25 bps rate cut, the first step in a much-anticipated easing cycle. Powell was careful to stress that the central bank doesn’t need to move quickly on further cuts, tempering expectations even as easier policy provided a floor for risk sentiment. 

U.S. stock futures were stable heading into the decision and moved higher afterward, closing at fresh all-time highs, with small caps also breaking to new records. Treasuries stalled after better jobs data, but the tone remains supportive of risk. Abroad, Japan stocks dumped after the BoJ held rates, while the Bank of England also stood pat at 4% with a cautious outlook. The geopolitical backdrop turned more complex with China moving to ban Nvidia chips, raising fresh concerns for AI hardware supply chains.

Against that macro setting, crypto responded positively. BTC held steady, ETH lagged, and alts took the lead, with BNB breaking to a new all-time high above $1K. AVAX and NEAR stood out among L1s, while CME expanded access with new options on SOL and XRP futures. 

ETF momentum added to the bid, with Rex Osprey preparing to launch an XRP ETF, DOGE and XRP ETFs recording $50M combined first-day volumes, and Bitwise filing for both a tokenization and stablecoin ETF as well as a dedicated AVAX ETF. SEC approval of listing standards for crypto ETFs and UK plans to waive some rules for crypto providers reinforced a regulatory backdrop that is incrementally more open.

Flows into Solana remained a focal point. Brera Holdings launched a $300M SOL DAT, Forward Industries announced a $4B offering to buy SOL, and DFDV added $15M of exposure. Sharps partnered with BONK to stake SOL, while Wormhole rolled out a W token reserve to deepen cross-chain liquidity. That momentum pushed ancillary tokens such as KMNO and DRIFT higher on links to growing DAT TVL, while STBL climbed to $2.4B on spot-listing expectations.

Ethereum activity remained heavy. Developers opened Fusaka to a $2M security audit contest, with the upgrade scheduled for December. The Ethereum Foundation also launched an AI research team, while Base confirmed it is exploring a network token. Plasma’s TGE was locked in for September 25, extending the protocol upgrade pipeline.

On the corporate and capital markets side, Binance inched closer to ending its DoJ compliance monitor, and CZ’s social activity fueled speculation about a possible return. A new U.S. crypto PAC launched with a $100M war chest, while lawmakers tapped Saylor and Lee to push forward a Bitcoin bill. Michigan’s own BTC legislation advanced after a delay. SEC and Gemini resolved their dispute over Gemini Earn, while U.S. regulators continued to push integration—New York urged banks to adopt blockchains, and the U.S. and UK announced collaboration on crypto policy initiatives. 

In parallel, DBS teamed with FT and Ripple to tokenize funds, StanChart unveiled a $250M crypto fund, and GD Culture committed to buying $875M of BTC. Public market filings also picked up, with NEXT Tech outlining a $500M shelf to acquire crypto, Strive launching $950M in capital initiatives, and Ether Machine moving to go public through a Dynamix merger.

Stablecoins and payments remain a major theme. Circle launched USDC natively on Hyperliquid, expanded collaboration with Kraken, and faced sharp words from JPMorgan about intensifying competition. PYUSD expanded to Tron, Aave and other chains. MetaMask launched a new mUSD stablecoin and signaled its governance token is “very soon.”

PayPal pushed deeper into crypto payments with its Links feature, AmEx rolled out blockchain-based passport stamps, and Google unveiled an AI agent-to-agent payments protocol. MoonPay bought Meso, expanding its payments footprint, while Linkhome enabled real estate purchases in crypto and Robinhood prepared retail access to a venture fund.

The creator economy and meme sector were equally busy. PumpFun crossed $100M in buybacks, hit a seven-month high in daily volumes, and paid a record $4M in creator fees. Yet despite the platform’s growth, creator coins continued to underperform. HYPE hit an all-time high as Project X announced its next phase, while Kalshi led prediction market volumes and Gondi launched a purchase bundler tool. Lastly, a Trump statue holding BTC outside the U.S. Capitol grabbed headlines but also underlined how far digital assets have entered the cultural arena.

Market Data Points

Ethereum’s stablecoin supply has surged to a record $166B, cementing its role as the backbone of DeFi settlement. The jump from $149B just a month ago highlights deepening institutional trust and liquidity on the network. USDT continues to dominate with $87.8B on Ethereum, followed by USDC at $48B, together forming the bulk of the supply.

Base’s growth story keeps getting stronger. Daily transactions have surged past 13M, making it one of the busiest L2 networks in crypto. The activity isn’t just from short-lived hype either—while new addresses continue to flow in, the majority of usage now comes from repeat participants, showing that Base has built a sticky user base. This balance of adoption and retention points to a network maturing into a core hub for Ethereum scaling.

Bank of America’s September survey highlights just how early crypto still is. A staggering 67% of fund managers reported holding no exposure at all, while only tiny fractions allocate 2% (3%), 4% (3%), or more than 8% (just 1%). On average, allocations sit at a negligible 0.4%. In total, 84% of managers haven’t even started structural crypto investments, leaving just 8% with any meaningful exposure.

For retail investors already holding BTC or ETH, this highlights a powerful truth: you’re ahead of the curve. While Wall Street institutions are still hesitating, early adopters are the ones capturing upside in the assets that are increasingly forming the backbone of digital finance. If history is any guide, those positioned before institutional flows arrive often stand to benefit most as adoption broadens and liquidity deepens. In short, the survey is less a sign of disinterest—and more a reminder of how early we really are.

Flows have shifted sharply this week. Ethereum, long the dominant force in attracting capital, has seen inflows slow, while Hyperliquid has exploded to the top of the leaderboard with outsized gains. The decentralized derivatives exchange is not only pulling in the strongest net flows across all chains, but its token has also been on a tear — surging to fresh all-time highs as traders pile in. Solana, OP Mainnet, and BNB Chain are still in positive territory, but none come close to Hyperliquid’s momentum.

Over the past week, Hyperliquid and Pump.fun have firmly established themselves as revenue powerhouses. Hyperliquid brought in over $20.6M in the last 7 days, while Pump.fun followed closely with $18.3M. Just behind them, Axiom Pro generated $13.1M, reflecting strong traction across its multi-chain footprint. Meanwhile, Jupiter, Phantom, Sky, M0, and edgeX all posted healthy revenues in the $4M–5M range, showing that activity is broadening beyond the headline leaders.

Majors & Memes

In the wake of the Fed’s rate cut and the build-up leading into it, crypto markets showed a split personality. Majors mostly traded heavy, consolidating after front-running the policy shift, while mid-caps and narrative-driven tokens delivered strong gains. The pattern highlights a market that remains risk-on, but increasingly selective in where capital is deployed.

Among the top 10, ETH was the clear underperformer, dropping nearly 5% as flows cooled after its earlier ETF-driven momentum. ADA and XRP also came under pressure, down 2.6% and 3.8%, while SOL slipped 1.1% and DOGE lost 4.1%. BTC proved more resilient, down just 0.4%. The lone standout was BNB, which gained 6.5% as investors showed continued confidence in Binance’s ecosystem even as peers consolidated.

The real momentum came from mid-caps. IMX surged 27.7%, cementing its position as the leading gaming play. AVAX jumped 17.8%, buoyed by renewed interest in its subnet and DeFi activity. PUMP rallied 16.8%, extending its run as Solana’s flagship meme launchpad. HASH and NEAR gained 14.6% and 12.2%, both reflecting selective rotation into alt L1s and tokenization narratives. Additional support came from IP (+11.6%) and M (+5.1%), showing appetite for smaller, high-beta narratives.

Losers clustered around L2s, DEX tokens, and meme plays. ARB fell 10.4%, unable to sustain activity beyond incentives. UNI slid 9.9%, while CRO and WLD dropped over 9%, highlighting weaker flows into exchange and identity tokens. Meme enthusiasm cooled, with BONK down 7.2% and PEPE off 6.4%, as traders trimmed speculative exposure following earlier rallies.

Taken together, the week reflects how markets are digesting the Fed’s pivot: majors consolidating after front-loading the move, while capital seeks opportunity in mid-cap narratives. BTC remains the stabilizer, ETH lags, and risk capital rotates into conviction plays such as IMX, AVAX, and PUMP. At the same time, overextended L2, DEX, and meme positions are being pared back. The result is a selective but risk-on environment—capital is still flowing, but increasingly concentrated in fewer, stronger narratives for the time being.

Mindshare

Over the past week, smart money attention has been far from evenly spread. A few names have dominated mindshare, while others fought for relevance in a crowded field.

CARDS held the strongest and most consistent share of attention throughout the week. Even when others fluctuated, CARDS stayed at the top of the stack, showing that it’s the anchor meme play in current market narratives. 

67 and Tokabu saw big swings in mindshare, peaking midweek before losing ground as focus rotated back toward CARDS and TROLL. TROLL emerged as a late-week riser, steadily gaining attention into the 18th and 19th, likely off fresh catalysts or community-driven momentum. Its rise came as other plays like KIND and TRWA faded.

SPARK, Block, and FLIPR stayed in the middle of the pack—maintaining a baseline of mindshare but never breaking out. This suggests they remain “tracked” by smart money, but not in active rotation. USDUC, Mog, and STREAM/STREAMER were similar: present but secondary.

The bottom tier—neet, EXO, RIPVC, ALON—barely registered meaningful traction, indicating limited mindshare despite being on the radar.

Smart Money Accumulation

Zoning in on the Solana ecosystem, this week saw CARDS as the biggest standout, seeing allocations surge 198.35% to nearly $1.95M, making it the single largest smart money position in this set. LAUNCHCOIN also jumped 107.25%, reaching just under $1M in wallet balances. Together, these two names absorbed the bulk of new inflows, showing a clear tilt toward higher-beta momentum plays.

Selective accumulation extended to KLED (+16.9%, $968K), FLIPR (+13.3%, $689K), and CLIPPY (+15.5%, $139K). While smaller in scale than CARDS or LAUNCHCOIN, these steady increases indicate confidence in secondary plays.

On the other side, several tokens were cut aggressively. Tokabu (-33.8%) and 67 (-27.6%) both shed sizable allocations, now sitting at $376K and $568K respectively. CLANKER (-22.9%, $417K) also saw sharp reductions, while Unc declined by -8.5% to just $74K. SPARK also slipped slightly (-0.6%) but still maintains a substantial $927K balance.

Overall, the rotation shows risk-on selectivity: capital isn’t leaving Solana but is being funneled decisively into a few momentum-driven tokens, led by CARDS and LAUNCHCOIN. The willingness to double allocations in these names suggests conviction, even as other positions are trimmed.

This week’s EVM allocations show a sharp divergence, with a few tokens drawing major inflows while most remained flat or saw minor trimming. 

The biggest move came in SPX, which surged 416% to $1.37M across 4 wallets, making it the clear leader in new inflows. COCORO also saw heavy buying, up 40.3%, while Block gained 18.4% to reach nearly $300K. These standouts highlight where fresh capital is concentrating, even as overall activity stays selective. Among larger balances, TRWA rose a modest 2.4% to just under $1M, while BITCOIN added 11.2% to $476K. 

Elsewhere, flows were flat to slightly negative. CULT held steady at ~$297K, PEPE barely moved (+0.02%), and trimming was light in SHRUB (-0.9%), APU (-0.4%), and Mog (-1.0%). 

Overall, the EVM snapshot shows selective risk-on flows. Capital is flowing decisively into a few names—SPX, COCORO, Block—while leaving most positions unchanged. Compared with Solana, where wallets rotated more aggressively, the EVM side looks steadier but opportunistic, with conviction bets standing out against an otherwise cautious backdrop.

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