Markets Navigate Volatility as Stablecoin Rules and DeFi Strategies Take Center Stage

Happy Thursday, 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! 

This week, the cryptocurrency market experienced significant volatility, with Bitcoin and Ethereum posting notable declines. Bitcoin fell by approximately 1.08% from $105,979 on June 12 to $104,826 on June 19, 2025. Ethereum saw a steeper decline of about 4.9%, dropping from $2,653 to $2,523 over the same period. These movements reflect a cautious market sentiment, potentially influenced by macroeconomic factors.

The Federal Reserve's decision to maintain interest rates at 4.25%-4.50% during its June meeting likely contributed to this sentiment. The Fed projects weaker economic growth at 1.4% for 2025 (down from 1.7%) and anticipates inflation to rise to 3% (up from 2.7%), with core PCE inflation at 3.1%. These projections suggest a challenging economic environment, which may continue to impact crypto markets.

The stock market reflected strong investor enthusiasm for crypto-related companies. Coinbase Global, Inc. (COIN) saw its stock price rise by approximately 16.32% to $295.29. The increase aligns with Coinbase's growing role in the crypto ecosystem, particularly with its Base blockchain.

Circle Internet Group (CRCL), the issuer of the USDC stablecoin, experienced an even more dramatic rise. After its IPO on June 5, 2025, at $31 per share, Circle's stock soared to around $199, a 33%+ increase during market hours on June 19. The stock's climb from an opening price of $69 to a high of $103.75 on its debut day, and now to $199, underscores strong market confidence in stablecoins.

The U.S. Senate passed the GENIUS Act with a 68-30 vote, a landmark move for stablecoin regulation. The bill mandates that stablecoin issuers maintain fully-backed reserves with U.S. dollars or liquid government assets and requires annual audits for issuers with over $50B in tokens. Issuers exceeding $10B face federal oversight, enhancing transparency and stability.

In parallel, JPMorgan Chase announced the pilot of JPMD, a USD deposit token on Coinbase's Base blockchain. Designed for institutional clients, JPMD enables 24/7 on-chain money movement, representing a significant step by a major bank into public blockchain infrastructure. The pilot, set to run for several months, involves fixed-amount transfers from JPMorgan's digital wallet to Coinbase, signaling traditional finance's growing embrace of blockchain technology.

Hyperliquid, a decentralized exchange (DEX) on its own Layer-1 blockchain with the HYPE token, is gaining traction among public companies for treasury diversification. Lion Group Holding (LGHL) secured a $600M facility to launch a Hyperliquid treasury, with an initial $10.6M tranche. CEO Wilson Wang emphasized Hyperliquid's role in decentralized markets, with potential allocations to Solana (SOL) and Sui (SUI) for custody and staking via BitGo.

Similarly, Eyenovia, a Nasdaq-listed ophthalmic technology firm, announced a $50M investment in HYPE, aiming to acquire over 1M tokens and participate as a top validator. These moves reflect a broader trend of public companies, inspired by firms like MicroStrategy's Bitcoin strategy, diversifying into DeFi tokens for long-term capital appreciation.

EigenLayer launched Eigencloud, a platform powered by the EIGEN token, designed to bring crypto-economic trust to both on- and off-chain applications. With a $70M investment from a16z, bringing their total commitments to over $170M, Eigencloud leverages $12B in restaked assets, primarily Ethereum. Its components include:

Use cases range from AI agents to oracles and meme coins, with early access granted to developers like Securitize, which validates data for BlackRock's $2B BUIDL fund. Despite its potential, risks like airdrop speculation and restacking contagion, noted by Vitalik Buterin, suggest caution in assessing its long-term impact.

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

Your Friends at Token Metrics