The launch of Robinhood Chain, a layer-2 network using ETH as its native gas token, has lifted investor sentiment around Ethereum. Over $141 million in ETH has already been bridged to the chain, and more than half a million wallets holding ETH are now active on the network. In the past 24 hours, Robinhood Chain surpassed Ethereum L1 and rival L2 Base in DEX volumes, recording $877.56 million in trading activity.
Layer-2 optimism and ETH metrics
Critics have long argued that L2s are bearish for Ethereum because they siphon activity from the mainnet without returning significant fees. However, some former skeptics are now reassessing that view. Influencer Ansem called Robinhood Chain and similar L2s "sneakily best setup for an eth bull thesis in a very long time," while Mike Dudas of 6th Man Ventures described it as "the single most bullish thing i've seen in eth-land in years."
Ethereum is also drawing strength from its 47% market share of Real World Assets, according to Rwa.xyz data. Leon Waidmann, head of Research at Lisk, noted that the Total Value Locked (TVL) on Ethereum has reached $260 billion, surpassing Ether's $210 billion market cap. Waidmann argued that this distortion signals ETH is underpriced, as the current relative valuation is lower than during the 2022 bear market.
UK donation ban and US Bitcoin reserve debate
UK Labour MPs are pushing to make a temporary ban on crypto donations permanent, following Nigel Farage's resignation from Parliament over undisclosed crypto gifts. Farage accepted millions of pounds in what he called "gifts" from industry figures, prompting a probe by the parliamentary standards commissioner. Farage denied any wrongdoing, stating in an X livestream, "I have not broken the law in any way at all."
Meanwhile, the Trump administration's plan to create a US Strategic Bitcoin Reserve has hit a snag, as the Commerce and Treasury departments dispute oversight. Trump's March 2025 executive order placed the reserve under Treasury, but concerns over legal authority and Bitcoin's volatility have led the Commerce Department to emerge as a contender. The Justice Department is also involved in determining legally available options.
Crypto regulation and Trump's pro-crypto pivot
Senator Ron Wyden has urged Senate leaders to preserve developer protections in the CLARITY Act, specifically the Blockchain Regulatory Certainty Act. Wyden argued that developers who release software allowing users to manage their own digital assets should not be treated as money transmitters. The letter comes amid opposition from law enforcement and Catholic groups, who claim the provision could weaken oversight of illicit activity.
President Donald Trump, who once called Bitcoin a "scam," now says he became a "big crypto guy" partly for political reasons. At a press conference announcing Trump Accounts for children, he said, "If we don't have it, China's going to have it." Trump acknowledged the industry's growth and the number of crypto supporters. However, five senators have called for hearings to investigate whether his policies were influenced by crypto funding from UAE-linked entities.
Market snapshot and analyst outlook
At the end of the week, Bitcoin traded at $63,762, Ether at $1,800, and XRP at $1.08, with a total market cap of $2.2 trillion. Among altcoins, DeXe (DEXE) gained 94%, Pyth Network (PYTH) rose 19%, and Arbitrum (ARB) added 15%. Losers included Bonk (BONK) down 19%, Jupiter (JUP) falling 18%, and Pi (PI) losing 16%.
Real Vision's Jamie Coutts predicted Bitcoin may be entering the latter stages of the bear market, with downside momentum slowing. He noted that Bitcoin's volatility has declined about 50% compared to the previous cycle, suggesting a less severe downturn. Coutts forecast a Bitcoin price of $200,000 to $250,000 in the next two to three years, but avoided making a $1 million prediction for 2030 due to too many variables.