
Vitalik: "The original vision of Layer 2s as 'Branded Sharding' to solve Ethereum's scalability is no longer tenable."

Market sentiment remained entrenched in “Extreme Fear” (index 13) this week, with the global market cap falling a further 8.15%. However, on-chain data reveals a critical divergence: new stablecoin issuance skyrocketed 358% to $7.73B (primarily USDC), hitting a recent high and sending a clear signal that large-scale accumulation is underway through compliant channels. While activity declined across most major Layer 1 chains, BNB Chain and Ton demonstrated relative resilience in user growth. Amid the panic-driven sell-off, the market is accumulating potential energy for a possible inflection point.

The current volatility in the Bitcoin market is enough to shake even the most seasoned investors. For newcomers who have just entered the world of cryptocurrency, every sharp price correction feels like a high-stakes psychological stress test.

This week, the cryptocurrency market experienced severe selling pressure, with the global market cap falling 11.5% and the sentiment index dropping to 13 (Extreme Fear). However, on-chain data reveals underlying resilience: despite an overall decline in TVL, DEX volumes on Solana and Ethereum surged against the trend by 49.4% and 192.7%, respectively. Furthermore, new stablecoin issuance came entirely from USDC (approximately $1.69B), signaling continued strategic entry by compliant capital. The growing divergence within ecosystems lays the groundwork for the next phase of structural opportunities amidst broad market weakness.

This is not just a battle over legal texts, but an ultimate contest over who defines, how to govern, and for whom the future financial infrastructure serves.

This week, the market underwent a deep correction amid extreme fear, with total market capitalisation plummeting by over 5%. However, a massive issuance of new stablecoins signals potential accumulation by bottom-fishing capital. Meanwhile, certain public chain ecosystems (e.g., Sui) demonstrated remarkable resilience and counter-trend growth, indicating that structural opportunities emerge even more clearly amidst volatility.

The former "crypto assets" and "traditional securities" will differ only in label, with no remaining essential distinction.

At the intersection of decentralized finance and social media data, an experiment regarding the "value of information" is facing its most severe survival challenge since its inception. On January 15, 2026, social media giant X (formerly Twitter) suddenly revised its platform rules, announcing the official revocation of API access for "InfoFi" applications, citing that such apps have generated large-scale spam to obtain token incentives. This decision instantly triggered a chain reaction in the Web3 space: as the leader in this sector, the Kaito platform token plummeted 19% within 24 hours, with its market capitalization shrinking to $160 million.

Market Accumulates Strength Amid Wait-and-See, Structural Opportunities Emerge in Capital and Ecosystem