Ethereum News Update: Will DATs Endure or Pose a Systemic Threat? Crypto Market Faces Heightened Structural Challenge

Bitget App

Trade smarter

Bitget

News

Markets

Ethereum News Update: Will DATs Endure or Pose a Systemic Threat? Crypto Market Faces Heightened Structural Challenge

Bitget-RWA2025/11/21 02:14

By:Bitget-RWA

- JPMorgan analysts link crypto market correction to $4B ETF outflows, exposing DAT firms' reliance on retail investors and index inclusion risks. - Strategy Inc. faces $2.8B potential losses if excluded from major indices, while BitMine's 0.86 mNAV ratio signals unsustainable debt-funded accumulation. - DeFi lending hits $73.6B as DATs struggle, with Aave dominating blockchain lending and Tether leading CeFi despite crypto price declines. - Market structure tests intensify as ETF outflows, staking yield d

The recent downturn in the crypto market has revealed weaknesses in the flywheel models used by digital asset treasury (DAT) firms, as

JPMorgan analysts point out

that the decline is largely due to retail investors selling off their

Bitcoin

and

Ethereum

ETFs. This month alone, spot BTC and

ETH

ETFs have seen withdrawals totaling about $4 billion, surpassing the previous record set in February, while equity ETFs have attracted $96 billion in new investments

according to data

. This contrast demonstrates that retail traders continue to view crypto and stocks as distinct types of assets, even though both are considered high-risk investments.

The consequences are also being felt by DAT companies such as Michael Saylor's

Strategy

Inc., which could see up to $2.8 billion in outflows if it is dropped from major indices like the MSCI USA and Nasdaq 100

according to Bloomberg

JPMorgan

analysts cautioned that being removed from these indices would negatively affect liquidity, increase funding expenses, and damage institutional trust for companies whose crypto assets make up at least half of their total holdings

Ethereum News Update: Will DATs Endure or Pose a Systemic Threat? Crypto Market Faces Heightened Structural Challenge image 0

Since reaching its highest point in November 2024, Strategy's market capitalization has dropped by more than 60%, and its mNAV ratio (enterprise value compared to Bitcoin reserves) has fallen to just 1.1

. The company's aggressive approach of buying during price dips—financed through issuing shares and taking on debt—has left it vulnerable to price swings as crypto values remain under key support thresholds.

BitMine, the largest Ethereum treasury, is also feeling the strain. The company is facing $3 billion in unrealized losses on its 3.56 million ETH holdings, and its mNAV has slipped to 0.86,

casting doubt on its capacity

to keep up buying momentum. BitMine depends on staking rewards and Bitcoin mining for cash flow, but the yield from Ethereum staking has dropped to 2.9% APR from 8.6% in mid-2023,

cutting into a crucial income source

. Rivals such as SharpLink and ETHZilla have reduced their purchases or liquidated assets to help stabilize their stock prices, indicating a move away from aggressive accumulation toward a more defensive stance

according to Bitget

At the same time,

DeFi lending reached a new high of $73.6 billion

in the third quarter of 2025, with decentralized protocols accounting for 66.9% of the market share.

Aave

, the top DeFi lending platform, now controls 68.8% of the

Plasma

blockchain's lending sector, while

Tether

leads the centralized finance (CeFi) space with $14.6 billion in collateralized loans

. This expansion stands in stark contrast to the difficulties faced by DATs as both liquidity and speculative enthusiasm diminish.

Polymarket, a platform for prediction markets, is seeking to take advantage of crypto's volatility by aiming to raise $12 billion

. The company's renewed entry into the U.S. and its collaborations with UFC and NHL highlight its goal of connecting traditional and digital financial systems. Nevertheless, Polymarket's growth is challenged by strong rivals like Kalshi and ongoing regulatory ambiguity, reflecting the broader uncertainties in the industry.

With the DAT flywheel losing momentum, the market's dependence on a handful of major players such as BitMine and Strategy Inc. has become increasingly unstable. As ETF withdrawals, index removals, and falling staking returns converge, the crypto sector faces a fundamental challenge. Whether these firms can survive the current turbulence—or if their failure will spark a deeper market decline—remains uncertain.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops

Lock your assets and earn 10%+ APR

Lock now!

- Bitcoin prices dropped globally as the yen hit a 10-month low, contrasting Canada's stablecoin regulatory advances with Asia's economic fragility. - Japan faces pressure to raise interest rates amid yen depreciation, while a ¥21.3 trillion stimulus aims to balance inflation and growth risks. - Canada's Bank of Canada will oversee stablecoin reserves, aligning with U.S. crypto regulations and signaling global tightening of crypto oversight. - UK's "Operation Destabilise" uncovered a $1B Russian-linked lau

Bitget-RWA•2025/11/21 15:10

Global authorities tighten oversight on cryptocurrencies as the yen’s decline highlights underlying economic vulnerabilities

XRP News Today: WPAHash Provides Consistent XRP Returns Despite Fluctuating Crypto Markets

- WPAHash, a London-based firm, launched an XRP-powered cloud hashing platform in November 2025 to generate passive income for crypto holders without technical expertise or hardware. - The platform combines XRP’s fast payments with distributed mining, offering 24/7 dynamic hash allocation, global data centers, and military-grade security for stable returns. - Tiered contracts ($100–$8,000) provide daily yields up to $128, with transparent dashboards tracking earnings and reinvestment data across 120 countr

Bitget-RWA•2025/11/21 15:10

Crypto Drives Change: IPSI’s Insurance Arm Adopts Instant Blockchain-Based Payments

- Innovative Payment Solutions (OTC: IPSI) formed Astria Insurance Solutions, a subsidiary integrating crypto-based premium payments with fintech and insurance services. - Astria uses IPSI's blockchain infrastructure for real-time settlements and digital wallets, aligning with crypto adoption trends in finance . - The subsidiary plans to secure state licenses and expand via a marketing platform, targeting digital-first consumers and commercial clients. - CEO Bill Corbett emphasized the strategic value of m

Bitget-RWA•2025/11/21 14:56

Crypto Drives Change: IPSI’s Insurance Arm Adopts Instant Blockchain-Based Payments

Bitcoin News Today: Bitcoin Faces Volatility Turning Point as Whale's 20x Leverage Bet Challenges $88,900 Mark

- A dormant Bitcoin whale reactivated after 18 months, opening a $31M 20x leveraged long position, signaling bullish confidence in Bitcoin's $88,900 threshold. - The position faces liquidation risks if Bitcoin dips below $88,900, amid $563M in cumulative long liquidation risks and $745M short risks across major exchanges. - Other large holders show divergent strategies: a 14-year-old miner moved $16.6M BTC amid quantum computing concerns, while a 20x short seller holds $24M in unrealized profits. - Analyst

Bitget-RWA•2025/11/21 14:56

Ethereum News Update: Will DATs Endure or Pose a Systemic Threat? Crypto Market Faces Heightened Structural Challenge

You may also like

Trending news

Crypto prices