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San Francisco federal bank eyes CBDC system development, reveals job posting

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Within 24 hours of the job posting, 45 applicants have shown interest in joining the federal government to build an in-house CBDC.

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Coin Market

Solana network and DeFi activity suggest SOL price rally will continue

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Key takeaways:

Solana’s $10.9 billion TVL surpassed the entire Ethereum layer-2 ecosystem.

Solana’s 30-day fee revenue ($43.4 million) rose 109% compared to the previous month.

SOL’s 8% funding rate shows healthy leverage demand from bulls.

Solana’s native token SOL (SOL) surged 24.8% between May 6 and May 10, following the broader altcoin market rally after Bitcoin broke above $100,000. Since then, SOL has struggled to stay above $180, but derivatives and onchain data still suggest further gains are in store.

SOL/USD (blue) vs. altcoin market cap. Source: TradingView / Cointelegraph

While Solana ranks the fifth largest cryptocurrency by market capitalization, Solana Network is the vice-leader in key onchain metrics including the total value locked (TVL).

Blockchain ranked by TVL, USD. Source: DefiLlama

Solana’s $10.9 billion total value locked (TVL) surpasses the entire Ethereum layer-2 ecosystem, which includes Base, Arbitrum, and Avalanche. Even BNB Chain, which integrates seamlessly with Binance and Trust Wallet, cannot match Solana’s numbers. Notable 30-day TVL increases for Solana include Raydium DEX, up 78%, Jito liquid staking solution, up 41%, and Marinade, which gained 56%.

Rising fee revenue boosts SOL demand and momentum

Gaining traction in decentralized finance (DeFi) does not always translate into demand for the native token, since some networks have extremely low fees. For example, over a recent 30-day period, the Ethereum network generated just $24.9 million in base layer fees, while Tron captured $51.9 million and Solana totaled $43.3 million, according to DefiLlama.

Solana network DApps revenue (left) vs. chain fees (right). Source: DefiLlama

Solana’s DApps revenues and chain fees have shown consistent growth over the past four weeks. The latest figures are approaching their highest levels in three months, which is highly positive for SOL, as it drives demand. With 65% of the SOL supply involved in staking, this dynamic also supports upward price momentum.

Related: Solana co-founder proposes meta chain to fix blockchain fragmentation

To gauge whether traders are becoming more optimistic about SOL’s price outlook, it is helpful to look at leverage demand. A positive funding rate means that long positions (buyers) are paying to keep their trades open.

SOL perpetual futures annualized funding rate. Source: Laevitas.ch

Currently, the SOL perpetual futures funding rate is at 8%, which falls within the neutral range of 5% to 10% based on the cost of capital. However, with SOL still trading 40% below its all-time high of $295 from Jan. 19, there is little reason for excessive optimism just yet. Still, the increasing activity on the Solana network suggests that SOL could reach $200 soon, potentially outperforming its competitors.

The exact catalyst that could propel SOL’s price higher remains uncertain, but possibilities include the potential approval of a spot Solana exchange-traded fund (ETF) in the US, as well as Solana’s eventual inclusion in a state-level digital asset strategic reserve. Additionally, some analysts are optimistic about traditional asset tokenization on Solana, which could unlock further value for SOL.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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Coin Market

Coinbase invests in Canadian stablecoin issuer

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Coinbase has partnered with Canadian stablecoin issuer Stablecorp in a bid to expand access to tokenized Canadian dollars, a company executive told Cointelegraph during the Blockchain Futurist Conference in Toronto.

According to Coinbase Canada’s CEO, Lucas Matheson, the exchange is investing an undisclosed amount in Stablecorp and will help market its fiat-collateralized stablecoin, QCAD.

“It’s really important that we have a stablecoin for Canadians,” Matheson told Cointelegraph in an exclusive interview on May 13, adding that stablecoins are especially urgent because the country has “no peer-to-peer [payment] rail” and “wire transfers cost $45 and take 45 minutes of paperwork.”

“With stablecoins, 24/7, instant, borderless payments become possible — this is already feasible with existing tech,” he said. 

Lucas Matheson (left) and Sam Bourgi (right) on the sidelines of the Futurist Conference in Toronto. Source: Cointelegraph

Related: What Canada’s new Liberal PM Mark Carney means for crypto

Barriers to adoption

As of May 13, stablecoins have an aggregate market capitalization of around $245 billion, primarily comprising US dollar-backed stablecoins Tether (USDT) and USDC (USDC), according to data from CoinGecko.

Stablecorp’s most recent report on QCAD’s fiat reserve backing dates to July 2024, at which time only around $175,000 worth of QCAD were in circulation, according to its website.

Stablecorp’s flagship product is QCAD, a fiat-backed stablecoin. Source: Stablecorp

However, “Canada lacks a clear path for stablecoin adoption” in part because its government has yet to “remove securities regulation barriers for fiat-backed stablecoins,” Coinbase said in a March 26 blog post. It needs to begin “treating them as payment instruments rather than securities,” the exchange added.

In April, the US SEC said that stablecoins do not qualify as securities in the country if they are marketed solely as a means of making payments.

“We’re asking the federal government to develop a national strategy for digital assets. Crypto is strategic, and we hope this new administration sees that,” Matheson said. 

Canada elected Prime Minister Mark Carney during its federal elections in April. Carney has historically been critical of cryptocurrency

Magazine: Ethereum is destroying the competition in the $16.1T TradFi tokenization race

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Bitcoin is one rally away from new highs, but overly euphoric bulls signal ‘overheating’ market

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Key takeaways:

Bitcoin price maintains its bullish momentum, but a sentiment indicator suggests the market could be overheating. 

Data highlights Bitcoin traders taking profits and a lopsided market angled toward longs.

Analysts warn of a potential short-term correction, especially if gold weakens or seasonal trends play out.

Optimism has returned to the crypto markets, and many traders believe Bitcoin (BTC) price is on the path to new all-time highs. In just one month, Bitcoin surged 39%, briefly crossing the $105,000 mark. According to Glassnode analysts, “there are signs of renewed market strength, and the market is trading within a profit-dominated regime.”

Still, not everyone is convinced the rally will continue unchecked. Some investors are already taking profits, pushing Bitcoin’s realized cap to an all-time high of $889 billion. Even more profit-taking is expected at the $106,000 level.

Historically, euphoric market sentiment has often led to periods of consolidation—or even sharp corrections. That risk may be growing, particularly as gold, whose price action Bitcoin has closely mirrored in recent months, is showing signs of fatigue and could be heading for a correction itself.

Most investors are back in profit

The recent Bitcoin rally has returned over 3 million BTC to a profitable state, according to Glassnode. This shift has reignited capital inflows, which exceeded $1 billion per day, suggesting strong demand-side interest and a market willing to absorb selling pressure. Even most short-term holders who were underwater since the December 2024 peak have seen their portfolios turn green.

BTC short-term holders’ relative unrealized loss. Source: Glassnode

This relief, both financial and psychological, is already translating into spending behavior. The net difference between short-term holders’ transfer volume in profit versus at a loss has swung sharply to +20%—a notable reversal from the -20% seen during the capitulation phase at the end of April.

Institutional investor confidence is also rebounding. Over the past three weeks, more than $5.7 billion has flowed into Bitcoin ETFs, according to CoinGlass. The total assets under management held within the US spot ETFs have now climbed to over 1.26 million BTC, a new all-time high.

Are crypto traders too euphoric right now?

With so much momentum, it’s easy to imagine a moonshot. But that same momentum may be cause for caution. BTC’s open interest has climbed to $68 billion, near all-time highs, indicating a heavily positioned market. In such conditions, even a small catalyst could spark an outsized move—up or down.

André Dragosch, head of research at Bitwise Asset Management, warned that Bitcoin might be getting a bit ahead of itself. He posted Bitwise’s in-house Cryptoasset Sentiment Index, which has reached its highest level since November 2024. The index, which includes 15 sub-indicators spanning sentiment, flows, onchain data, and derivatives (such as the perpetual funding rate and put-call volume ratio), now shows an overheated market.

Bitcoin price vs Cryptoasset sentiment index. Source: Bitwise

In comments to Cointelegraph, Dragosch said,

“The latest readings imply that market sentiment has become overheated and that positioning appears to be one-sided on the long side. It tends to signal an increased risk for a temporary pull-back in the price of Bitcoin, and that the current rally could take a break.”

Yet, Dragosch remains “structurally constructive” until the end of 2025, citing the continued BTC accumulation by corporations and ETPs, which continues to deplete Bitcoin on-exchange balances.

Related: Arizona governor kills two crypto bills, cracks down on Bitcoin ATMs

Potential crypto market headwinds

Several risks could challenge Bitcoin in the short term.

For Bitwise chief investment officer Matt Hougan, renewed regulatory uncertainty is a top concern, particularly after the Senate stalled stablecoin legislation last week.

Broader shifts in market behavior may also be at play. Since March 2025, Bitcoin has shown a stronger correlation with gold than with equities. That shift followed dramatic changes in US policy, which appeared to steer capital toward politically neutral assets: both Bitcoin and gold rose 22% (the latter since corrected to a 13% gain). At the same time, the S&P 500 and Nasdaq-100 merely clawed back earlier losses.

BTC/USD vs gold, SPX, and NDX 1-day. Source: Marie Poteriaieva, TradingView

This divergence continues on shorter time frames. Since May 12, major US indexes gained 3% to 4% on positive developments in US-China trade relations, but Bitcoin barely budged. Meanwhile, gold has started printing lower highs—a potential early signal of a downtrend, as noted by analyst Michael Van de Poppe. If gold enters a corrective phase, Bitcoin might follow suit.

Seasonality may also play a role. The adage “Sell in May and go away” has some historical backing. As analyst Daan Crypto Trades noted, May has typically been a green month for Bitcoin (averaging over 8%), while June and September are often the worst-performing months. As he put it,

“Seasonality is never something to solely base your decisions on, but it can work out well. Many investors are watching the same thing after all.”

Whether this rally has more room to run—or is due for a breather—may soon be put to the test.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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