The successful launch of Robinhood Chain, a new layer-2 network, has injected fresh optimism into the Ethereum ecosystem, even winning over some former critics. Meanwhile, political turbulence in the UK and the US, along with key market developments, defined the past week in cryptocurrency.
Robinhood Chain ignites ETH sentiment shift
Robinhood Chain, which uses Ether (ETH) as its native gas token, has seen approximately $141 million in ETH bridged to the network within its first week. Data from DeFi Llama shows the L2 has already attracted over half a million wallets and processed $877.56 million in decentralized exchange (DEX) volume, surpassing both Ethereum’s mainnet and rival L2 Base in the last 24 hours.
Also read: StanChart: Michael Saylor's shifting Bitcoin message needs clarity to reassure investors
This success is prompting a reassessment of the long-held bearish view that L2s drain activity and fees from Ethereum’s base layer. Influencer Ansem noted on social media that “Robinhood L2s are sneakily best setup for an eth bull thesis in a very long time.” Mike Dudas of 6th Man Ventures called it “the single most bullish thing I’ve seen in eth-land in years.”
The bullish sentiment is further supported by Ethereum’s dominant 47% market share of tokenized Real World Assets (RWA), according to Rwa.xyz data. Leon Waidmann, Head of Research at Lisk, highlighted that Ethereum’s Total Value Locked (TVL) of $260 billion has now surpassed Ether’s $210 billion market cap, a distortion he argues signals that “ETH is underpriced.”
Also read: Bitcoin nearing late stages of bear market, says Real Vision analyst Jamie Coutts
UK Labour Party proposes permanent crypto donation ban
In the United Kingdom, the fallout from Nigel Farage’s resignation from Parliament has led to calls for a permanent ban on cryptocurrency political donations. The Reform UK leader stepped down after an investigation was launched into millions of pounds in “gifts” from crypto industry figures.
The Guardian reports that Labour MPs are now pushing to make permanent a moratorium on crypto donations enacted in March. Farage, who has denied any wrongdoing, faces a by-election where his main opponent is the satirical character Count Binface, as major parties have declined to field candidates against him.
US Bitcoin Reserve plan hits bureaucratic roadblock
President Donald Trump’s plan for a US Strategic Bitcoin Reserve (SBR) is reportedly facing internal disputes. Bloomberg reports that the Commerce and Treasury departments are clashing over which agency should oversee the reserve, with questions arising about Treasury’s legal authority to manage a volatile asset like Bitcoin.
The Department of Justice is also involved in determining the legal framework. The executive order, signed in March 2025, initially placed the SBR under Treasury, but concerns over its ability to manage the holdings have opened the door for the Commerce Department to take the lead.
Senator Wyden fights for developer protections in crypto bill
US Senator Ron Wyden has urged Senate leaders to preserve key developer protections in the CLARITY Act. In a letter to Majority Leader Charles Schumer and Minority Leader John Thune, Wyden argued that software developers who do not control user assets should not be classified as money transmitters. The provision, known as the Blockchain Regulatory Certainty Act (BRCA), has faced opposition from law enforcement and religious groups who claim it could hinder oversight of illicit activity.
Trump admits political motives for pro-crypto pivot
President Trump acknowledged during a press conference that his shift to a pro-crypto stance was partly motivated by politics. “I got involved in it a little bit for politics,” Trump said, adding that he realized “there are a lot of people that love crypto.” This admission comes amid ongoing criticism over his family’s deep business interests in the sector and calls from five senators for hearings into potential foreign influence on his policies.
Market Overview: Bitcoin and altcoin movers
Bitcoin (BTC) is trading at $63,762, while Ether (ETH) is at $1,800. XRP (XRP) sits at $1.08, with the total crypto market cap at $2.2 trillion.
- Top 3 Altcoin Winners (weekly): DeXe (DEXE) +94%, Pyth Network (PYTH) +19%, Arbitrum (ARB) +15%.
- Top 3 Altcoin Losers (weekly): Bonk (BONK) -19%, Jupiter (JUP) -18%, Pi (PI) -16%.
Analyst Outlook: Bitcoin nearing bear market end
Real Vision’s chief crypto analyst, Jamie Coutts, believes Bitcoin may be entering the latter stages of its bear market. Noting a 50% decline in volatility compared to previous cycles, Coutts suggested the current downturn may be less severe. He forecasts Bitcoin reaching $200,000 to $250,000 within two to three years.
Other notable developments
- Strategy’s Saylor under scrutiny: Standard Chartered analyst Geoff Kendrick said Michael Saylor’s communication around Strategy’s sale of $216 million in Bitcoin to pay dividends is “muddying the waters” and undermining market confidence.
- Kalshi appeals ruling: The prediction market platform is appealing a New York court decision that rejected its attempt to block state gambling laws from applying to its sports event contracts.
- Phishing scam warning: A crypto user lost nearly $1 million in USDT after signing a fraudulent token approval. Scam Sniffer reported that phishing losses totaled $723 million across 248 incidents in 2025.
Conclusion
The week was defined by a significant infrastructure win for Ethereum with Robinhood Chain’s launch, contrasted by regulatory and political friction in the UK and US. Market data suggests a potential bottoming process for Bitcoin, while the industry continues to grapple with security threats and internal communication challenges from major players like Strategy.
FAQs
Q1: Why is Robinhood Chain considered bullish for Ethereum?
Robinhood Chain uses ETH as its gas token, meaning transaction fees on the L2 directly benefit Ethereum’s ecosystem. Its rapid adoption and high DEX volume demonstrate that L2s can drive activity and value back to the base layer, countering the bearish narrative that they only siphon it away.
Q2: What is the UK’s position on crypto political donations?
Following a scandal involving Nigel Farage, the UK’s Labour party is considering making a temporary ban on crypto donations permanent. The move is aimed at preventing potential foreign or industry influence on politicians.
Q3: What is the status of the US Strategic Bitcoin Reserve?
The plan is stalled due to a dispute between the Treasury and Commerce departments over which agency should oversee the reserve. Questions about Treasury’s legal authority to manage Bitcoin’s volatility are at the center of the debate.
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