Altcoin Awakening: Record ETF Volumes and DeFi Renaissance

Happy Friday, TM Family!

Welcome to the Token Metrics Research | Daily newsletter, where we cover key market movements, regulatory updates, and early alpha for our readers and investors. 

Let's dive in! 

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Now let's get back to the top stories of the day.

The launch of the first U.S. ETFs offering exposure to XRP and Dogecoin marks a pivotal moment for altcoin accessibility, with day-one trading volumes eclipsing expectations and setting new benchmarks for ETF launches this year.

The REX-Osprey XRP ETF (XRPR) and DOGE ETF (DOJE) collectively racked up $55M in combined volume on their debut Thursday, with XRPR alone hitting $37.7M, surpassing all 710 other ETF launches in 2025 for the top spot, while DOJE secured $17M, landing in the top five.

Within the first 90 minutes, XRPR saw $24M flow in, five times that of prior XRP futures ETFs, highlighting robust investor appetite beyond Bitcoin and Ethereum products.

These ETFs, registered under the 1940 Act and listed on Cboe BZX, provide spot-like exposure: XRPR holds XRP directly with supplements from foreign spot ETFs, while DOJE uses derivatives via a Cayman subsidiary.

This structure addresses custody concerns for retail and institutional players wary of direct token ownership. The SEC's recent approval of streamlined listing standards could accelerate the development of similar products, with estimates suggesting over 100 crypto ETFs are in the pipeline.

From an investment perspective, this debut underscores shifting dynamics in the altcoin space. XRP, the third-largest token by market cap at $3.08, and DOGE, eighth at $0.28, saw minimal price movement post-launch, but the volumes indicate pent-up demand for regulated vehicles.

For crypto natives, this could amplify liquidity and price discovery, potentially catalyzing rallies in meme and utility tokens. Watch for follow-on effects on related ecosystems like Ripple's cross-border payments or Dogecoin's community-driven hype.

DeFi is roaring back, with total value locked (TVL) surging to $170B, fully erasing the scars of the 2022 Terra collapse and bear market lows. This rebound, from a $37B trough in October 2022, reflects a more sustainable growth trajectory compared to the frothy 2021 boom, driven by institutional inflows, improved yields, and ecosystem expansions.

Ethereum dominates with 59% market share, but challengers like Base, Hyperliquid, and Sui now collectively command over $10B, fueled by memecoin trading and staking innovations.

Compounding this momentum, major players are deepening on-chain integrations. Coinbase rolled out USDC lending via Morpho on its Base L2. It partnered with Steakhouse Financial for vaults that optimize yields up to 10.8%, a significant upgrade from the 4.1% passive rewards on its $73B circulating USDC supply.

This "DeFi mullet" approach (fintech UX frontend, decentralized backend) creates a seamless flywheel for lending and borrowing, with over $900M in crypto-backed loans already originated.

Similarly, PayPal expanded its $1.3B PYUSD stablecoin to nine new chains (Aptos, Avalanche, Tron, etc.) via LayerZero, introducing a permissionless PYUSD0 variant for cross-chain swaps and boosting interoperability.

Adding to the mix, Plasma's mainnet beta launches September 25 with $2B in stablecoin liquidity from day one. It features zero-fee USDT transfers and integrations with 100+ DeFi protocols like Aave and Ethena. Backed by Binance Earn and a $373M oversubscribed sale, Plasma's XPL token will govern incentives, positioning it as the eighth-largest chain by stablecoin TVL.

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Now, let's continue with the top stories of the day.

The Solana ecosystem is gaining institutional firepower as Brera Holdings rebrands to Solmate and secures a $300M oversubscribed PIPE to fuel a SOL-focused digital asset treasury (DAT).

Backed by the UAE's Pulsar Group, ARK Invest, RockawayX, and the Solana Foundation, the funds will accumulate and stake SOL, deploy high-performance staking infrastructure in Abu Dhabi (including bare-metal servers), and generate revenue from native projects.

Led by new CEO Marco Santori (ex-Kraken CLO) and a board featuring economist Arthur Laffer and Viktor Fischer, Solmate aims to position the UAE as a Solana hub, with dual Nasdaq/UAE listings and continued sports-ownership operations. Post-announcement, BREA shares jumped 14%, and SOL rose 5%, reflecting market optimism.

This aligns with a broader Solana treasury trend, joining firms like Forward Industries and Helius. It enhances validator decentralization and staking yields for the ecosystem, potentially boosting SOL's utility amid memecoin frenzy. Investors should note Solana's $15B DeFi TVL growth. 

Influential leaders are steering crypto discourse, with Consensys CEO Joe Lubin confirming MetaMask's MASK token launch "sooner than you would expect," tied to decentralizing the wallet's platform.

This follows years of speculation, echoing Linea's recent LINEA airdrop where Consensys took a modest 15% stake to prioritize community growth. MASK could empower users via in-wallet governance, amplifying MetaMask's 30M+ user base in Ethereum's ecosystem.

Meanwhile, Binance founder CZ's subtle X profile tweak from "ex-Binance" to "Binance" fueled return rumors, spiking Polymarket pardon odds to 46% and driving BNB up 10% weekly.

BNB's outperformance among L1s stems from on-chain momentum, 45% revenue growth, and 200% YTD transaction surge, which are bolstered by launches like STBL and ASTER. Negotiations to lift DOJ oversight add intrigue, potentially reigniting Binance's dominance.

On Ethereum, Vitalik Buterin defended the 43-day unstaking queue as a core "security deal," likening staking to a soldier's commitment amid criticisms of liquidity traps (2.5M ETH queued). He advocates UX improvements without compromising trust, such as faster key switches for client diversity.

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That's all for today. Let's talk tomorrow.