Analysts Split on XRP Future Outlook as Centralization Debate Intensifies

NewsBTC

The outlook for XRP is becoming increasingly polarized as traders, analysts, and industry critics weigh in on its price trajectory, governance model, and growing institutional interest.

Recent market activity reflects a complex environment where both technical signals and structural concerns are shaping sentiment. As whale sell-offs, ETF inflows, and a revived decentralization debate collide, XRP finds itself at a critical moment that is testing assumptions about its long-term viability.

Ripple XRP XRPUSD XRPUSD_2025-12-08_13-21-40

New Participation Models and Market Volatility

A wave of alternative yield platforms, including BlackchainMining, has entered the market offering “XRP mining” rewards, despite XRP not being a mineable asset. These models rely on token lock-ups rather than computational work, with platforms distributing returns from liquidity operations or other investment strategies.

While they appeal to holders seeking passive income, they introduce counterparty and operational risks, especially given their reliance on centralized management rather than transparent network mechanics.

At the same time, XRP’s spot price continues to react to whale activity. Recent sell-offs pushed the token toward the $2 level before stabilizing, reflecting short-term volatility driven by large holders. In contrast, long-term investors appear unfazed, maintaining positions that help steady the circulating supply.

Institutional demand through XRP ETFs adds yet another dimension. U.S.-listed funds have seen nearly $900 million in inflows, indicating that larger players are continuing to build exposure despite market turbulence.Technical Setups and Derivatives Data Show Mixed Sentiment

Analysts tracking XRP’s long-term chart structure note parallels with the 2017 bull cycle. A multi-year symmetrical triangle forming between 2018 and 2025 has created expectations of a breakout, with some projecting potential upside should historical patterns repeat.

The current price action around $2.05 reflects a tightening consolidation, and a 16% move in either direction is considered possible after the pattern resolves.

However, derivatives markets present a contrasting picture. Coinglass data shows that XRP is the most aggressively shorted major asset, with roughly 96% of open interest positioned against it.

Despite this, XRP has held modest gains, supported by sustained ETF inflows. Analysts warn that such extreme positioning increases the likelihood of a short squeeze if even minor catalysts shift sentiment.Centralization Concerns Resurface

Beyond price action, structural criticism has resurfaced following sharp commentary from analyst Justin Bons, who argues that XRP is “centralized in every way,” citing validator distribution and governance limitations.

Supporters counter that XRP’s model is designed for institutional settlement rather than maximal decentralization, but the debate highlights a longstanding divide between crypto-native expectations and enterprise-focused blockchain design.

Whether XRP evolves through technical breakouts, institutional adoption, or renewed scrutiny over its governance will determine how the asset is perceived moving forward. Currently, the market remains divided, with both opportunity and uncertainty moulding the path ahead.

Cover image from ChatGPT, XRPUSD chart from Tradingview

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StableChain launches mainnet with USDT gas fees, dedicated governance token

Cointelegraph

Tether-backed Stable protocol has launched its USDT-powered blockchain, StableChain, alongside a new governance foundation and a native token.

According to the protocol, the new layer-1 network is designed for stablecoin transactions and relies on Tether’s (USDT) for gas fees payments, removing the need for volatile assets to process payments.

Alongside the mainnet debut, Stable introduced the Stable Foundation and the STABLE governance token on Monday, separating network security from payment flows settled in USDT.

The rollout follows a pre-deposit campaign that drew more than $2 billion from over 24,000 wallets. It also comes on the heels of a $28 million seed round backed by crypto exchange Bitfinex, Hack VC and other investors, including Tether CEO Paolo Ardoino, who is also listed as an adviser to the project.

The launch expands the stablecoin infrastructure footprint of Bitfinex and Tether, which share the iFinex parent company, and extends USDT’s utility as a core element of the network’s design.

Brian Mehler, CEO of Stable, told Cointelegraph that the company has “maintained frequent contact with governing bodies overseeing the implementation of stablecoin and payments guardrails worldwide.”

Related: Circle and Bybit deepen USDC partnership as stablecoin nears $80B

Stablecoins’ role in digital payments continues to expand

The rise of stablecoins — digital tokens designed to maintain a steady value, often pegged to the US dollar — has pushed banks, payment companies and remittance providers such as Western Union to explore new strategies.

However, most stablecoins still run on blockchains that were not built for fast, low-cost payments. For example, Ethereum, home of the majority of the stablecoin supply, can take around three minutes to finalize transactions.

These constraints have helped drive interest in blockchains engineered specifically for stablecoin settlement.

In February, stablecoin startup Plasma raised $24 million to build a new blockchain for USDT in a funding round led by Framework Ventures and backed by Bitfinex, Peter Thiel and Tether CEO Paolo Ardoino. Plasma’s mainnet beta went live on Sept. 25, launching alongside its native XPL token

In August, Circle announced plans to launch Arc, an EVM-compatible layer-1 blockchain designed for enterprise-grade stablecoin payments, FX and capital markets, later this year.

The following month, payment giant Stripe disclosed plans to launch a new layer-1 network called Tempo, after CEO Patrick Collison said that existing blockchains are “not optimized” to handle the growing stablecoin and crypto activity moving through Stripe’s platform.

According to DefiLlama data, the stablecoin market capitalization has grown to about $308.45 billion from $198.76 billion a year ago, a roughly 55% increase over the period.

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Bybit Institutional Sets the Stage for 2026 at High-Profile Abu Dhabi Gala

Chainwire

DUBAI, UAE, Dec. 9, 2025 /PRNewswire/ -- Bybit, the world's second-largest cryptocurrency exchange by trading volume, hosted its BIG Series – Bybit Institutional Gala in Abu Dhabi, bringing together key Bybit executives, global regulators, banking partners, liquidity providers, and institutional clients for a forward-looking dialogue on the evolution of digital markets. The evening set the stage for Bybit's strengthened global strategy following its newly secured full Virtual Asset Platform Operator (VAPO) license from the UAE's Securities and Commodities Authority (SCA) and its MiCAR license across the entire European Economic Area (EEA), — a milestone that positions the company at the center of regulated digital finance.

"With our regulatory foundation in the UAE and EEA, plus a unified liquidity engine built around transparency and resilience, Bybit is committed to powering the next phase of institutional digital finance," said Ben Zhou, Co-founder and CEO of Bybit.

Institutional Confidence Powered by Retail Strength and Scalable Infrastructure

Opening the gala, Ben emphasized the industry's shift toward an integrated and institution-ready market structure. He reiterated a core advantage of Bybit was its uniquely powerful retail ecosystem.

In just its first year, the Bybit Card surpassed 1.8 million cards issued across 13 regions, complemented by expanding Pay and bank-integrated fiat rails. This retail scale increasingly fuels superior pricing and execution for institutional clients.

Ben also highlighted the acceleration of its wealth and asset management business, where AUM grew from USD 40 million in Q2 to USD 200 million in Q4, underscoring widening institutional engagement and strong demand for qualified asset management services.

"Institutions are choosing Bybit because they want certainty — certainty of liquidity, certainty of compliance, and certainty of performance. With asset inflows rising from USD 1.3 billion in Q3 to USD 2.88 billion in Q4, our role has never been clearer: we are building the most trusted infrastructure for the next era of institutional digital finance," added Ben.

Compliance as the New Institutional Trust Product

In a keynote session from Robert MacDonald, Chief Legal & Compliance Officer of Bybit, reinforced the growing importance of compliance as a decisive factor in institutional adoption.

He highlighted how predictable onboarding, product-embedded compliance, and proactive regulatory engagement now function as a competitive advantage — strengthening Bybit's banking relationships and reducing operational friction for professional investors.

Bybit's Expanding Institutional Ecosystem

In her keynote, Yoyee Wang, Head of Business to Business at Bybit, introduced the next wave of institutional offerings coming in 2026, aimed at strengthening market connectivity and operational efficiency for institutional clients. These include two major advancements:

Bybit's upgraded INS Credit Suite now integrates Bybit Custody with RWA yield products, enabling institutions to keep assets in custody, earn returns through tokenized money market funds, and simultaneously access institutional credit. This unified structure enhances capital efficiency without compromising control. The suite continues to offer market-leading 5× leverage and support for up to 1,000 sub-accounts.
The recent launch of Bybit's Market Maker Gateway (MMGW), a dedicated high-performance access point that gives institutional clients faster and more stable connectivity to Bybit's trading environment, reducing round-trip latency from 30ms to 2.5ms for high-frequency and quant clients.

Bybit also revealed that INS loan notional grew by 26% quarter-over-quarter, driven by strong adoption from multi-strategy and High-Frequency Trading (HFT) firms.

Yoyee highlighted the importance of collaboration in shaping the next phase of institutional adoption:

"The momentum we're seeing from institutions is driven by real utility—capital efficiency, liquidity depth, and operational reliability. Our role is to simplify access while working hand in hand with partners, banks, and regulators to build a more connected and scalable global market structure," stated Yoyee.

A Global Dialogue on the Future of Capital Markets

As part of the evening program, the gala convened a cross-regional dialogue moderated by Dimitrios Psarrakis, Head of Global Affairs at Bybit, and featuring European regulator, Jean-Marc Laventure, Head of Financial & Securities Services Sales, Investors, Middle East, Standard Chartered Bank and other honorable guests.

The conversation highlighted a clear industry shift: traditional finance and digital assets are no longer parallel tracks but converging systems built on shared principles of transparency, efficiency, and institutional-grade governance.

Celebrating Industry Achievement

This convergence provided a fitting transition to the evening's closing ceremony, where Bybit recognized leading institutions and ecosystem contributors for their excellence, performance, and impact across global digital markets.

The awards presented included:

Premier Corporate Trading Terminal Award

Vantage
Jarvis Lab

Broker Market Leadership Award

Insilico Terminal
Coinroutes
Finestel

Outstanding Institutional Contribution Award

Wintermute
Amber Group
Da Vinci
GSR
Cumberland

Liquidity Leadership Award

Pulsar
Atomic
Gravity
Hashwave

Institutional Trading Excellence Award

CyantArb
AlberBlanc
Presto
Rosario

"It is a privilege to receive this recognition from Bybit at such a pivotal moment for mainstream adoption of digital finance. The Gala reinforced the importance of trust, infrastructure, and long-term partnership. GSR looks forward to continuing our collaboration with Bybit as we build institutional-grade products and services for the crypto market together", said Xin Song, CEO of GSR.

#Bybit / #CryptoArk

About Bybit

Bybit is the world's second-largest cryptocurrency exchange by trading volume, serving a global community of over 70 million users. Founded in 2018, Bybit is redefining openness in the decentralized world by creating a simpler, open and equal ecosystem for everyone. With a strong focus on Web3, Bybit partners strategically with leading blockchain protocols to provide robust infrastructure and drive on-chain innovation. Renowned for its secure custody, diverse marketplaces, intuitive user experience, and advanced blockchain tools, Bybit bridges the gap between TradFi and DeFi, empowering builders, creators, and enthusiasts to unlock the full potential of Web3. Discover the future of decentralized finance at Bybit.com.

For more details about Bybit, please visit Bybit Press

For media inquiries, please contact: media@bybit.com

For updates, please follow: Bybit's Communities and Social Media

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CRO Demand Surges as 21Shares Commits to Accelerating Its Mainstream Adoption

Coinpedia

Cronos has received a major boost from 21Shares. On Monday, December 8, 2025, 21Shares announced a strategic partnership with Crypto.com to catalyze the mainstream adoption of CRO through regulated investment products.

21Shares Boosts Institutional Adoption For CRO

21Shares, a major issuer of spot crypto exchange-traded funds (ETFs), announced that it will be offering investment products for CRO. The firm intends to boost the adoption of CRO via issuing investment products tracking its spot performance.

“Crypto.com and Cronos are both paving the way for scalable and interoperable blockchain solutions, and this collaboration reinforces our commitment to delivering institutional-grade regulated exposure to the most relevant crypto assets,” Federico Brokate, Global Head of Business Development at 21Shares, noted.

According to Eric Anziani, President and COO of Crypto.com, the crypto exchange will continue to support the mainstream adoption of the Cronos blockchain. At the time of this writing, the Cronos chain had a total value locked of about $387 million and a stablecoin supply of around $181 million.

Cronos Price Eyes New ATH

Following the announcement, CRO recorded a 40% surge in its daily average traded volume to hover about $15.7 million at reporting time, according to market data from The mid-cap altcoin, with a fully diluted valuation of about $10.3 billion, has signaled a potential bullish rebound catalyzed by a supportive macroeconomic backdrop.

Source: X

From a technical analysis standpoint, Cronos’ price is well positioned to retest its all-time high if its current support level holds. During the last 18 months, CRO price has rebounded from the same rising logarithmic trendline, which it is currently retesting.

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Watchdog asks for crypto industry feedback on UK investment reforms

Cointelegraph

The UK’s Financial Conduct Authority (FCA), the watchdog overseeing the country’s financial sector, has released proposals as part of its strategy to “boost UK investment culture,” and is asking for help from the crypto industry.

In discussion and consultation papers released on Monday, the FCA asked crypto companies to provide feedback on proposals aimed at “expanding consumer access to investments” and amending rules for “client categorization and conflicts of interest.”

Investments, Cryptocurrency Exchange, United Kingdom, Companies

The discussion paper noted that “virtually all of the underperformance on high [digital engagement practices] apps could be attributed to trading in cryptoassets and [contracts for difference.” The proposal highlighted potential risks for consumers using “cryptoasset proxies” without investment limits, warnings, or “appropriateness tests.”

In its consultation paper, the UK watchdog proposed:

“We will also add guidance that a personal investment history mainly in speculative high risk or leveraged products or crypto assets is not usually an indicator of professional capability, unless there is strong evidence that the client meets the threshold of a professional client from other Relevant Factors, including the client’s ability to bear potential losses.”

According to the watchdog, the proposed changes would streamline the FCA’s existing guidelines and were part of a strategy to potentially “remove some arbitrary tests and give firms more responsibility to get it right.”

Companies that advised clients on or sold digital assets were asked to provide responses to the recommendations by February and March.

Slow and steady advances toward policies that favor cryptocurrency

The UK has been a significant hub for crypto companies doing business outside the United States, which, until the about-face on regulation and enforcement under US President Donald Trump, many industry leaders said that they considered an uncertain regulatory environment.

In December, the UK government passed a law treating digital assets as property, improving clarity on cryptocurrencies like Bitcoin in cases such as the recovery of stolen goods or insolvency.

With the market steadily growing in the country, the government was reportedly considering a ban on crypto donations to political parties.

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HYPE token treasury Hyperliquid Strategies rolls out $30 million stock repurchase program

The Block

Major publicly traded HYPE token holder Hyperliquid Strategies (ticker PURR) is the latest digital asset treasury (DAT) to roll out a stock repurchase program.

Hyperliquid Strategies’ board has authorized a program to repurchase up to $30 million worth of the company’s outstanding stock over the next 12 months, according to an announcement on Monday. The firm is far from the first to announce a willingness to support its stock price, with everyone from the largest ETH DAT BitMine supporting buybacks to Michael Saylor's Strategy launching a cash reserve to act as a liquidity buffer amid a market pullback.

“We are fully committed to maximizing shareholder value through disciplined execution of our treasury strategy,” Hyperliquid Strategies CEO David Schamis said. “Our primary objective is providing investors with efficient access to HYPE, the native token of the dominant Hyperliquid ecosystem. We will use our cash to increase our shareholders’ per-share exposure to HYPE in the most efficient way possible.”

Though what is perhaps unique is that the repurchase program was disclosed just days after the digital asset treasury officially launched.

Hyperliquid Strategies Inc. was formed through a merger of the publicly-traded healthtech firm Sonnet BioTherapeutics and Rorschach, a special purpose acquisition company incorporated this year with a connection to Hyperliquid-supporter and prominent crypto VC Paradigm. The merger, announced in July and expected to close in November, was delayed by two weeks after not crossing a key level of support from shareholders and was ultimately completed on Dec. 2.

The Nasdaq-listed stock, which began trading under the ticker symbol PURR on Dec. 3, is down about 1.1% at the time of press to $3.64. The Block has reached out to Schamis for comment.

Venture forward?

In October, Hyperliquid Strategies filed an S-1 statement with the U.S. Securities and Exchange Commission to raise up to $1 billion to fund its treasury activities. The firm previously said it would stake “substantially all of its HYPE holdings” or deploy funds in non-staking DeFi-related activities.

Somewhat unusually, Hyperliquid did not raise venture capital funding. Instead, about a third of the HYPE token supply, valued at $1.2 billion, was airdropped to early users when it debuted in late 2023. Additional tokens went to the founding team and to set up the Hyper Foundation, with none explicitly earmarked for VCs or investors.

The protocol has since grown to become the largest decentralized perps DEX by accumulated volume, according to The Block’s data, and has only seen meaningful competition in recent months via the rise of BNB Chain-based Aster and Ethereum Layer 2 Liquid.

Hyperliquid Strategies, which aims to "provide capital-efficient and productive access to the HYPE token for U.S. and institutional investors," counts D1 Capital, Galaxy Digital, Pantera Capital, Republic Digital, and 683 Capital as strategic backers. It has also named former Barclays CEO Bob Diamond as chairman.

The firm is not the only HYPE treasury play. In June, Hong Kong-based brokerage and trading firm Lion Group Holding Ltd. raised $600 million to fund its own HYPE DAT.

HYPE is relatively flat on the past day at $29. The token hit an all-time high of $59.30 in September, according to The Block’s price page.

Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.

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MicroStrategy Buys More Bitcoin Despite Shareholder Concerns

Beincrypto

MicroStrategy announced today that it spent nearly $1 billion to acquire an additional 10,624 BTC, increasing its total Bitcoin holdings to 660,624 BTC.

The purchase comes at a moment of heightened scrutiny for MicroStrategy’s figurehead, Michael Saylor. The company has faced significant pressure during a broader market downturn driven by Bitcoin’s weak price performance.

Accumulation Continues as Pressures Grow

Saylor has continued expanding MicroStrategy’s Bitcoin holdings despite sustained public scrutiny of the company’s approach.

Bitcoin’s price has weakened over the past two months, failing to reclaim the $100,000 level it lost in November and currently trading around $89,950.

MicroStrategy, now effectively a Bitcoin-focused treasury rather than a traditional software firm, has been hit hard as its valuation moves in lockstep with Bitcoin’s volatility, creating persistent headwinds.

Even so, the company has pressed ahead with new purchases. Notably, it did not buy during the recent dip to $86,000 over the weekend but instead announced its latest acquisition as Bitcoin briefly rallied to $90,615.

Some viewed the move as a way to energize supporters and maintain high morale among loyal investors. However, some analysts believe MicroStrategy’s ability to fund future Bitcoin purchases is weakening.

Analyst Novacula Occami noted that, for this latest purchase round, MicroStrategy was only able to sell $44 million of preferred stock last week, which is a very small amount compared to past capital raises.

This suggests the market may be less willing to lend or buy their preferred equity.

Because leverage is becoming more challenging, MicroStrategy is shifting back to issuing regular shares. In this case, it sold 5.1 million MSTR shares at $181 each, which dilutes existing shareholders.

Given MicroStrategy’s current conditions, this method may soon become unsustainable.

Stock Weakness Threatens Funding Model

MicroStrategy experienced a severe downturn at the start of December when its market cap briefly fell below the net value of its Bitcoin holdings. The event produced fresh concerns about leverage, liquidity, and overall investor confidence.

The share price dropped to $156, reducing the company’s valuation to $45 billion. At the same time, the value of MicroStrategy’s Bitcoin holdings stood at roughly $55.2 billion, marking an unusual period in which the market valued the company below its underlying assets.

MicroStrategy has since regained its foothold. However, if its stock were to again trade below the value of the assets it owns, issuing new shares will become harder and less effective.

As leverage continues to dry up and equity dilution becomes less sustainable, MicroStrategy may face a moment where it cannot raise enough capital to continue its accumulation model.

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