The cryptocurrency market was abuzz with activity as major developments unfolded across blockchain, DeFi, and regulatory landscapes. From Ethereum’s price milestone to MakerDAO’s protocol scrutiny, here’s a roundup of the day’s top stories shaping the crypto ecosystem:
1. Ethereum Reclaims $4,000 Milestone
Ethereum ($ETH) surged past the $4,000 mark for the first time since March, reaching a daily high of $4,086. This 7% daily increase is part of a 14% weekly and 68% monthly rally, signaling renewed investor confidence.
Analysts suggest a capital shift from Bitcoin to Ethereum, driven by institutional interest and a sharp drop in ETH/BTC spot price ratios. Demand for Ethereum options is rising, further fueling the bullish sentiment. Bybit’s latest report projects that ETH could reach $7,000, as it continues to outperform Bitcoin.
2. MakerDAO (Sky) Faces Security Scrutiny
Sky, formerly MakerDAO, is under fire for its reliance on an externally owned account (EOA) to manage $756 million in USD Coin ($USDC) reserves. Critics argue that this custodianship model poses risks of insider misuse or external exploits.
The concerns emerged during Sky’s migration to a new lite peg stability module (PSM), which uses the EOA to maintain stablecoin-to-dollar parity. Critics fear this approach may undermine user trust in the protocol.
3. Memecoin Drama: Coffeezilla Exposes Hawk Tuah
YouTuber and crypto investigator Coffeezilla addressed controversial headlines surrounding the Hawk Tuah memecoin launch. Allegations of insider trading and early sell-offs plagued the token, which saw rapid price pumps and dumps.
While Coffeezilla criticized the launch, he dismissed rumors of massive profits or scams, emphasizing the need for accurate reporting in crypto media. The incident highlights ongoing transparency challenges in the memecoin space.
4. Trump Appoints David Sacks as Crypto and AI Czar
In a significant political move, President-elect Donald Trump named venture capitalist David Sacks as his lead advisor for artificial intelligence and cryptocurrency policy.
Sacks will oversee efforts to establish a legal framework for the crypto industry and chair the Presidential Council of Advisors for Science and Technology. This move aligns with Trump’s campaign promise to position the U.S. as a global leader in crypto innovation.
Conclusion
The crypto market continues to evolve rapidly, with significant events driving price movements, technological advancements, and regulatory discussions. Whether it’s Ethereum’s bullish momentum, protocol concerns in DeFi, or political developments, staying informed is key to navigating the ever-changing crypto landscape.
