XRP has gained roughly 8% over the past seven days. Earlier in the week, the world’s first XRP ETF was launched in Brazil. Despite the positive momentum, XRP remains caught in a tight trading range, with key resistance and support levels still defining its short-term outlook.
Recent indicators, including the RSI rebound and a slightly bullish Ichimoku Cloud structure, point to cautious optimism.
XRP’s RSI Rebounds: What It Means for the Price Action
XRP’s Relative Strength Index (RSI) currently stands at 58.36, rising from 47.34 earlier today but still down from 77.7 reached four days ago.
This movement shows a recovery from recent lower levels, although it remains below the overbought conditions seen earlier in the week.
The recent RSI trend suggests that while bullish momentum has resurfaced in the short term, XRP has not yet regained the same strength it displayed just a few days ago, signaling a more cautious sentiment among traders.
RSI, or Relative Strength Index, is a momentum oscillator that measures the speed and change of price movements on a scale from 0 to 100.
Typically, an RSI above 70 signals that an asset is overbought and might be due for a correction, while an RSI below 30 indicates it is oversold and could be poised for a rebound.
With XRP’s RSI now at 58.36, the asset is in neutral-to-slightly-bullish territory, suggesting there is still room for further gains without immediately triggering overbought conditions.
If buying pressure continues, this could set the stage for a gradual upward move, though a lack of strong momentum could also result in range-bound trading.
XRP Hovers Above Cloud as Momentum Stalls
The Ichimoku Cloud for XRP presents a bullish structure, with the price just slightly above the cloud.
The future cloud remains green, indicating that bullish conditions are still projected ahead. However, the proximity of the lines to the price suggests some hesitation or consolidation in the short term.
The Ichimoku system fully views trend direction, momentum, and support/resistance areas.
When the price is above the cloud with a green cloud ahead, it usually signals a favorable trend, but when the Tenkan-sen and Kijun-sen hug the price closely, it can indicate a lack of clear conviction from either buyers or sellers.
In XRP’s case, the bullish trend remains intact, but the tight positioning of the lines points to a fragile uptrend where a sharp move in either direction could easily shift the structure.
XRP Outlook: Will Bulls or Bears Take Control?
XRP price is trading within a tight range, caught between a resistance level of $2.30 and a support level of $2.11.
This sideways movement comes just two days after the launch of the world’s first XRP ETF in Brazil, a development that could eventually influence market sentiment.
If XRP falls and loses the $2.11 support, it could lead to a decline toward the next support level, $2.04.
Should bearish momentum intensify further, a deeper retracement could see XRP test lower levels at $1.96, making it crucial for buyers to defend the current support zone.
Conversely, if XRP tests and breaks above the $2.30 resistance with strong bullish momentum, the next upside target would be around $2.50.
Continued strength could push the price toward $2.59, potentially extending to $2.64 if buyers maintain control.
The Sui blockchain is under growing scrutiny after backing a controversial proposal from DeFi platform Cetus Protocol to recover $162 million in frozen assets.
This decision follows a May 21 incident in which Cetus lost over $223 million to a hacker. In response, more than a third of Sui validators froze a portion of the stolen assets by refusing to process transactions from two wallets believed to be tied to the attacker.
Sui’s Support for Cetus Plan Raises Questions on Decentralization
At the same time, Cetus is pushing for a protocol upgrade to return the frozen funds. The proposal aims to achieve this without altering historical blockchain records or rolling back transactions.
Meanwhile, the Sui Foundation has agreed to support an on-chain vote but stated it will remain neutral and abstain from participating.
“Earlier today, Cetus called for a community vote on a protocol upgrade to return the frozen funds, without rolling back chain history or reversing transactions. This is an extraordinary request in response to extraordinary need–Cetus’s customer funds are at stake. After consideration, we support their call for an on-chain vote,” Sui stated.
The Foundation also stated that Cetus must use all its available financial resources to compensate affected users until it repays all losses.
Critics warn that freezing smart contracts can be problematic even without reversing the chain. They argue that censoring transactions may also undermine the principle of blockchain immutability.
Sui’s Bounty Offer Draws Outrage
Meanwhile, the Sui Foundation’s decision to offer a $5 million reward has sparked further controversy. The bounty targets anyone who can provide information leading to the hacker’s identification.
On-chain investigator ZachXBT called the bounty “vague” and unhelpful. He argued that such offers only pay upon success and fail to compensate the significant time and effort that investigators invest upfront.
ZachXBT Criticizing the Bounty Offer from Cetus Protocol. Source: X/ZachXBT
Yu Xian, co-founder of blockchain security firm SlowMist, also criticized the offer. He warned that unless a hacker willingly returns the funds or faces pressure to do so, investigators often end up in prolonged chases with little hope of resolution.
“The investment cost of tracking services is very uncertain, such as threat intelligence cooperation network resource coordination, stolen user communication, law enforcement communication, investigation and evidence collection, evidence fixation, negotiation promotion, analysis reports, etc. If there is no upfront cost or deep enough cooperation resources to guarantee, it is difficult to continue to advance,” Xian added.
Bitcoin is stepping beyond its role as a store of value and into DeFi. BTCFi is bringing lending, staking, and yield opportunities directly to the Bitcoin network without middlemen. This shift not only unlocks new financial use cases for Bitcoin holders but also helps secure the network by keeping miners incentivized.
To understand where BTCFi stands today and where it’s headed, BeInCrypto spoke with industry leaders from 1inch, exSat, Babylon and GOAT Network. They shared insights on the current landscape, key challenges, and what’s needed for BTCFi to reach its full potential.
Key trends and explosive growth in 2024
The year 2024 marked a pivotal period for BTCfi, characterized by remarkable growth metrics. According toDefiLlama, the Total Value Locked (TVL) in Bitcoin-based DeFi protocols experienced an unprecedented surge, escalating from $307 million in January to over $6.5 billion by December 31, 2024, a staggering increase of more than 2,000%. This surge reflects a burgeoning interest and confidence in Bitcoin’s DeFi capabilities.
BTCFi’s growth is driven by a mix of institutional adoption, market performance, and technological advancements. The approval of Bitcoin ETFs has fueled institutional interest, pushing BTCFi’s total value locked (TVL) higher. Major exchanges like Binance and OKX are integrating BTCFi services, improving accessibility and liquidity. Bitcoin’s strong market performance, hitting an all-time high of $108,268 in December 2024 before closing at $93,429, has further boosted confidence.
Source: Glassnode
At the same time, innovations like Bitcoin-native assets, wrapped BTC, and staking solutions are expanding Bitcoin’s role in DeFi. Projects such as exSat, GOAT Network, Babylon and 1inch are leading the way with new protocols that enhance Bitcoin’s DeFi potential.
As BTCFi continues to evolve, one fundamental truth remains unchanged – demand for Bitcoin itself. Kevin Liu, co-founder of GOAT Network, encapsulates this sentiment: “All of us want more BTC, because it’s the king of all tokens. Whichever projects succeed in delivering real BTC yield will flourish, because they’re giving people exactly what they want. This is true now, and it will be true 3-5 years from now.”
Shalini Wood, CMO of Babylon, captures this shift, stating: “We’re seeing a shift where Bitcoin is no longer just something you HODL. Innovations in Bitcoin staking, lending, and trustless interoperability will define the next wave of BTCFi. BTCFi will evolve beyond traditional DeFi models, leveraging Bitcoin’s security to support sovereign applications, cross-chain liquidity, and more scalable, trust-minimized financial products. The goal is to carve out a distinct, Bitcoin-native approach that enhances security and decentralization across the entire crypto ecosystem.”
Tristan Dickinson, CMO exSat Network: “Enabling Bitcoin yield and DeFi-based strategies without sacrificing control of native Bitcoin is crucial. Bitcoin has fulfilled its original purpose as a store of value, evolving it into a tool for value creation requires meeting some very specific criteria: preserving native Bitcoin security, ensuring interoperability between ecosystems, and supporting complex smart contracts.
At the same time, regulatory developments in the U.S. are reshaping the BTCFi landscape. The prospect of a government-backed Bitcoin reserve lends legitimacy to BTC as a financial asset, potentially attracting institutional investors. However, as Sergej Kunz, co-founder of 1inch, points out, regulation remains a double-edged sword: “Some policies support innovation, while others could tighten controls on BTCFi. Clear regulations on existing DeFi and smart contracts will be crucial for its growth.”
The next phase of BTCFi will be defined by the balance between innovation and regulation. While Bitcoin’s decentralized nature makes it resistant to government interference, regulatory clarity could provide the stability needed for mainstream adoption. The question remains — will policymakers embrace BTCFi as a transformative financial force, or will they attempt to contain its potential?
How Much Starting Capital Do You Really Need?
The world of Bitcoin Finance (BTCFi) is evolving rapidly, offering opportunities for both institutional investors and everyday users. But how much capital do you actually need to get started?
Shalini Wood, emphasizes that “BTCFi is not just about individual participation—it’s about unlocking capital efficiency for Bitcoin at scale. BTCFi is designed to maximize security and reward opportunities while keeping Bitcoin’s core principles intact.” Platforms like Babylon, which holds “$4.4 billion in Total Value Locked (TVL),” are driving liquidity and accessibility.
One of the most significant advantages of BTCFi is its accessibility. Traditional finance often has high entry barriers, requiring investors to put down substantial capital to participate in meaningful ways. In contrast, BTCFi allows users to start with much smaller amounts, thanks to the efficiency of Bitcoin sidechains and second-layer solutions.
Sergej Kunz, highlights this shift, stating that “BTCFi platforms have low entry barriers, with some allowing participation with as little as $100 thanks to Bitcoin sidechains like Rootstock and Lightning-based protocols.” This means that retail investors, who may have previously been excluded from financial opportunities, can now leverage Bitcoin’s growing DeFi ecosystem without needing deep pockets.
This low entry threshold is particularly important in regions where traditional banking infrastructure is weak or inaccessible. BTCFi can provide people in emerging markets with new ways to save, earn yield, and access financial services without relying on intermediaries.
Kevin Liu, explains this philosophy: “The best BTCFi solutions won’t require users to be whales; rather, they’ll give both whales and guppies the opportunity to earn real BTC yield. A well-designed BTCFi-focused ecosystem will allot the exact same annual returns (by percentage) to a user who stakes $1 million, vs. another who stakes $100.”
This principle is crucial because it aligns with Bitcoin’s original ethos of financial fairness and open participation. In a world where traditional financial products often favor the wealthy with better interest rates and lower fees, BTCFi is aiming to level the playing field.
Ultimately, whether you’re a small investor or a deep-pocketed institution, BTCFi platforms are increasingly designed to accommodate all levels of participation, ensuring that Bitcoin’s financial ecosystem remains open and rewarding for everyone.
BTCFi: A Gateway to Earning Without Leaving Bitcoin
With the rise of Bitcoin Finance (BTCFi), crypto users now have more ways to earn from their BTC without relying on centralized platforms. “BTCFi is becoming more accessible, enabling users to lend, stake, and trade BTC without relying on centralized platforms,” explains Sergej Kunz. While APR programs and staking options on Ethereum or Solana may offer higher yields, he notes that “BTCFi allows users to earn on BTC without leaving the Bitcoin ecosystem, making it a strong alternative for long-term holders.”
Tristan Dickinson, highlights the rapid expansion of Bitcoin’s Layer 2 ecosystem: “Today, there are over 70+ Bitcoin L2 projects working to expand access to and from the Bitcoin ecosystem, but the ecosystem is immature. Basic DeFi instruments like staking are emerging, yet only a few players, maybe three to five, offer true staking with token and APY programs.”
He emphasizes that Bitcoin DeFi is on an inevitable growth trajectory: “First comes staking, then re-staking, followed by diversified yield, collateralized lending and borrowing, and eventually an explosion in structured financial products. Some projects are leading, others are following.”
exSat’s approach aims to accelerate this evolution by mirroring Bitcoin’s data while integrating it with DeFi innovations. “Creating a mirrored version of Bitcoin with identical (UTXO) data and similar partners is the first true scaling solution for the ecosystem. Combining the best parts of Bitcoin with the most powerful elements of DeFi is the only path to meaningful BTCFi growth,” Dickinson concludes.
As BTCFi continues to mature, its ability to offer decentralized yield opportunities without compromising Bitcoin’s core principles is positioning it as a compelling alternative for long-term BTC holders.
Kevin Liu, highlights the growing divide in user behavior: “We’ll likely see growth in both groups – people who simply buy BTC on centralized exchanges and either leave it alone or maybe ape into limited-time APR promotions on those CEXes, and people who watch centralized exchanges get hacked and/or appreciate the power of ‘not your keys, not your coins’ and thus seek out decentralized options.” As Bitcoin adoption increases, Liu predicts that more users will explore BTCFi solutions to generate yield without handing control of their assets to centralized exchanges.
With Bitcoin remaining “the single most powerful asset since it came into existence 16 years ago,” BTCFi is poised to attract both casual holders and those seeking decentralized earning opportunities, helping drive mass adoption in the process.
BTCFi vs. DeFi on Ethereum and Solana: Key Differences and Similarities
As Bitcoin Finance (BTCFi) continues to evolve, it is increasingly compared to the established DeFi ecosystems on Ethereum and Solana. While all three aim to provide financial opportunities beyond traditional banking, they differ in design, security, and user experience.
Ethereum has long been the dominant force in decentralized finance, known for its robust smart contract capabilities and extensive range of DeFi applications. “Ethereum has encouraged smart contract development and as many DeFi use cases as you can possibly imagine,” explains Kevin Liu. The ecosystem has fostered innovations in lending, automated market-making, and derivatives, making it the go-to platform for developers experimenting with new financial models. However, Ethereum’s strengths also come with challenges, high gas fees and network congestion can limit accessibility for smaller investors.
Solana, on the other hand, was designed with speed and efficiency in mind. Its high throughput and low fees make it an attractive choice for retail users and traders looking for fast execution times. “Solana stands out for its speed and low fees,” notes Sergej Kunz. This efficiency has allowed Solana’s DeFi ecosystem to flourish, with platforms like Raydium, Jupiter, and Kamino providing seamless trading and yield farming experiences. However, the trade-off comes in the form of higher hardware requirements for validators and periodic network outages, which have raised concerns about decentralization and stability.
Bitcoin, in contrast, follows a fundamentally different philosophy. It prioritizes security and decentralization above all else, which historically limited its ability to support complex smart contracts. “BTCFi is built on Bitcoin’s battle-tested PoW security, ensuring minimal trust assumptions and censorship resistance,” says Shalini Wood. Rather than trying to replicate Ethereum’s DeFi model, BTCFi is developing its own distinct approach, leveraging Bitcoin’s unparalleled security while introducing financial applications tailored for BTC holders.
“THORChain, Sovryn, and Stackswap are among the projects offering native BTC DeFi solutions, bridging the gap between Bitcoin’s security and Ethereum’s programmability,” adds SergejKunz. These platforms allow users to engage in decentralized trading and lending while keeping custody of their Bitcoin, avoiding the risks associated with wrapped BTC on other chains. As BTCFi infrastructure matures, it is expected to carve out its own niche, the one that remains true to Bitcoin’s principles while expanding its financial utility.
In the end, while Ethereum, Solana, and Bitcoin each offer unique strengths, BTCFi is proving that Bitcoin is no longer just a passive store of value. It is evolving into a fully functional financial ecosystem, leveraging its unmatched security to create decentralized applications that don’t compromise on decentralization or trust minimization.
Ethereum (ETH) faces a critical inflection point with two powerful catalysts converging on Wednesday, May 7.
Traders are split on whether the “perfect storm” could spark a breakout or deepen recent price volatility amid mixed macro signals and waning confidence in Ethereum’s narrative.
Ethereum Faces Volatile Crossroads: Pectra Upgrade and FOMC Converge
The long-awaited Ethereum Pectra upgrade is only hours out. It is expected to introduce key enhancements such as EIP-7702 and a 2,048 ETH staking cap, improving Ethereum’s usability and efficiency.
Combined with Fed Chair Jerome Powell’s potentially dovish tone, some believe this week could ignite a powerful rally in ETH and altcoins.
“May 7th Ethereum Pectra upgrade. May 7th FOMC. Micro caps already surging. If the Crypto Lords are on our side, mother of all breakouts could happen—especially on altcoins,” said CryptoSkull on X (Twitter).
Others echoed the sentiment, albeit with caution, cognizant of the volatility of the crypto market.
“FOMC week and ETH Pectra update? Time to keep our eyes peeled. Bullish vibes are great, but let us not forget the market’s mood swings. Feds might just throw us a curveball,” another user warned.
Meanwhile, another cohort sees the collision between Pectra Upgrade and the FOMC meeting as a high-stakes convergence. Specifically, the convergence of the two events will likely trigger a reaction in the Ethereum price.
Ethereum Community Borders Along Hope, Hype, and Hard Lessons
Still, not all see the Pectra upgrade as an immediate price catalyst. Maria Magenes, VP of Strategy at Hype Partners and former Balancer and MakerDAO marketing lead, tempered expectations.
“Even if I’ve joked about my hope for a price bump, that’s not the real point of why this is exciting… Network upgrades don’t imply price bumps… These aren’t cosmetic changes…They ensure Ethereum remains the most composable, decentralized, and reliable network in the ecosystem,” she explained.
Ethereum price action against event-specific volatility. Source: Maria on X
Meanwhile, others shared a nuanced take, calling Pectra a legit volatility trigger. Beyond the technical upgrade, however, Ethereum is also contending with a broader narrative crisis.
Nevertheless, the May 7 FOMC decision adds significant uncertainty. While most analysts expect the Fed to hold rates steady, traders remain wary of Powell’s tone. A hawkish stance could derail risk-on momentum.
“We’re still seeing the risk-off mentality going into the Fed meeting…Bitcoin build-up is good…expecting ETH to turn upwards after Wednesday,” analyst Michaël van de Poppe wrote.
May 7 could shape Ethereum’s near-term fate, with the second-largest crypto by market capitalization metrics caught between protocol progress and macro peril.
On Wednesday, whether Pectra powers a rally or is drowned out by macroeconomic headwinds will be determined.
