VeChain’s Upgrade & Vanguard’s Crypto Pivot

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Market Overview

Welcome back, Token Metrics investors.

As of Dec 2, 2025, crypto markets are under pressure. Bitcoin has pulled back toward the mid-$80Ks after a failed push above $93K, with November closing as one of the weakest months of the year amid ETF outflows and macro uncertainty. Ethereum is chopping around the high-$2Ks ahead of its Fusaka upgrade on Dec 3, while altcoins are mixed: XRP is still riding strong ETF inflows, and L1 upgrade narratives like VeChain are holding up better than the broader market.

Derivatives data shows that elevated leverage has been partially flushed after roughly $2.2B in liquidations, but positioning is not fully reset. That leaves markets vulnerable to sharp moves around the upcoming FOMC meeting and day to-day swings in ETF flows.

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1. VeChain’s Hayabusa Upgrade: New DPoS Era + VTHO Reset

On Dec 2, 2025, VeChain pushed its most important mainnet upgrade since launch into production. The Hayabusa phase of the multi year “Renaissance” roadmap is now live, shifting VeChainThor’s consensus from a centralized Proof of Authority model to Delegated Proof of Stake (DPoS).

Instead of a small, pre approved validator set, VET holders can now delegate stake to validators and participate directly in securing the network. In return, they earn rewards tied to VTHO generation, turning VeChain into a full blown staking ecosystem rather than a mostly enterprise run chain.

The upgrade also rewires VTHO economics. VTHO issuance is now linked to staked VET and is managed via the StarGate platform. The design burns 100% of the base VTHO fee and targets lower, more predictable gas costs, while reducing net VTHO inflation. If on chain activity climbs, the combination of burns and capped issuance could make VTHO structurally tighter over time.

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2. Vanguard Finally Opens Crypto ETFs to 50M U.S. Clients

In a move that would have sounded impossible a few years ago, Vanguard is reversing its anti crypto stance. Starting Dec 2, 2025, the $10T asset manager is allowing trading of Bitcoin, Ethereum, and XRP ETFs and mutual funds on its U.S. brokerage platform.

This unlocks regulated spot style crypto exposure for more than 50M client accounts, many of them retirement focused investors who prefer set and-forget allocation rather than active trading. Crypto ETFs will now sit alongside broad equity index funds, bond funds, and gold ETFs inside one of TradFi’s most conservative distribution channels.

Strategically, this does two big things:

• Validates crypto ETFs as a mainstream asset class, comparable to precious metals or sector funds.
• Expands the buyer base by letting investors gain exposure without opening a new CEX or DEX account.

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3. Bitstack Raises €12.9M to Scale Bitcoin Savings in Europe

Paris based Bitstack just closed a €12.9M (~$15M) Series A led by 13books Capital, with backing from major European and U.S. investors. The company runs a consumer app that automates Bitcoin savings through recurring buys and card purchase round ups.

In just three years, Bitstack has grown to over 300K active users who have saved more than €300M worth of BTC. Revenue is up 10x over the last two years, signaling strong product market fit despite the brutal volatility of recent cycles.

The new funding will fuel a broader European rollout of Bitstack’s neobanking suite:

• A euro bank account with a French IBAN
• A Visa debit card with round up and “stackback” BTC rewards
• Deeper integration of automated, small ticket BTC accumulation into everyday spending

This matters for adoption because it abstracts away trading decisions. Users don’t have to time entries; they just live their lives and continuously stack sats in the background. That’s the kind of UX that can quietly expand Bitcoin’s addressable market beyond traders and into the mainstream banking stack.

From a macro crypto perspective, the round is a data point that VC appetite for regulated, consumer facing Bitcoin products in Europe is still alive. With MiCA setting clearer rules and European regulators increasingly comfortable with BTC as a store of-value asset, apps like Bitstack could become key distribution channels for Lightning services, BTC backed yield, and future tokenized loyalty programs—if they choose to go that route.

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4. Bybit Supports Optimism, Base & Mode Network Upgrades

Bybit has announced support for the "Jovian" network upgrades affecting Optimism (OP), Coinbase’s Base mainnet, and Mode (MODE) Network. The upgrades are scheduled around Dec 2, 2025 at 16:00 UTC.

Operationally, this is standard: Bybit will temporarily suspend deposits and withdrawals for the affected networks while the upgrades are in progress, then handle all technical heavy lifting on behalf of users. No manual action is required if you trade OP-, Base-, or MODE related assets on the exchange.

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Outlook: Volatility, Flows & Narratives

BTC’s rejection above $93K and retrace to the mid-$80Ks, combined with roughly $2.2B in liquidations, has taken the edge off aggressive longs—but leverage is not fully cleaned out. ETF flow data backs this up: Dec 2 saw a $65.9M outflow from IBIT and flat prints from GBTC and Franklin, signaling a pause in the steady “spot ETF bid” that fueled recent highs.

At the same time, XRP ETFs are outpacing BTC and ETH funds on cumulative net inflows, reflecting a rotation toward assets perceived to have clearer payment use cases and regulatory positioning. That’s consistent with XRP’s relative strength in an otherwise risk off environment.

On the alt side, two narratives are quietly outperforming the tape:

• Upgrade driven L1s – VeChain’s Hayabusa launch is a textbook example of how real tokenomics and consensus changes can create new staking and yield opportunities, even while majors are consolidating.
• Infrastructure hardening – Coordinated L2 upgrades (Optimism, Base, Mode) and the steady rise of crypto integrated fintechs like Bitstack show builders are still shipping, regardless of day to-day price action.

Macro remains the wild card. The upcoming FOMC meeting and shifting expectations around rates and liquidity will continue to drive cross asset volatility. With leverage only partially reset and ETF flows now more two sided, intraday swings can remain sharp in both directions.

For now, the constructive lens is:

• TradFi rails are opening further (Vanguard, neobanks like Bitstack).
• Base layer and L2 infrastructure keeps improving (VeChain, Optimism, Base, Mode).
• Institutional participation is broadening beyond pure BTC plays (XRP ETFs, multi asset mandates).

That combination tends to favor investors who balance core, ETF accessible majors with a curated basket of higher conviction, higher beta names tied to real upgrades and usage, rather than chasing every spike in derivatives driven volatility.