Before diving into August in review, be sure to check out a couple of recently released reports from our research team:<ul><li><a href="https://cdn.prod.website-files.com/64f99c50f4c866dee943e165/6894e0317b0988967e6c4fcb_RR%20Kadena%20Report%201%20(1).pdf" rel="noopener noreferrer nofollow">Kadena Q2 2025 Overview</a></li><li><a href="https://cdn.prod.website-files.com/64f99c50f4c866dee943e165/68949d80b89eba6244f628d2_RR%20Bitlayer%20Report%201.pdf" rel="noopener noreferrer nofollow">Bitlayer- First BitVM, Powering Bitcoin DeFi</a></li><li><a href="https://cdn.prod.website-files.com/64f99c50f4c866dee943e165/6893682064838351b4cadd64_Dinero-Reflexivity-Report%20(1).pdf" rel="noopener noreferrer nofollow">Dinero: Building the Back-end of Institutional Crypto Yield</a></li><li><a href="https://cdn.prod.website-files.com/64f99c50f4c866dee943e165/68838b1d146cb329272a7b3e_LayerTwo%20Labs%20%232.pdf" rel="noopener noreferrer nofollow">LayerTwo Labs and the Era of Driverchains</a></li><li><a href="https://cdn.prod.website-files.com/64f99c50f4c866dee943e165/687e2b9f1f0e49fb91c2ebfb_Sonic-Research_Report.pdf" rel="noopener noreferrer nofollow">Sonic Ecosystem Q2 2025 Report</a></li><li><a href="https://cdn.prod.website-files.com/64f99c50f4c866dee943e165/687a4c4398160df32335779e_0G%20Q2%202025%20(1).pdf" rel="noopener noreferrer nofollow">0G Q2 2025 Overview</a></li><li><a href="https://cdn.prod.website-files.com/64f99c50f4c866dee943e165/6878efec590b8b64bfcce681_RR%20FAIR%20Report.pdf" rel="noopener noreferrer nofollow">FAIR: A New Era of Fairness in Crypto</a></li><li><a href="https://cdn.prod.website-files.com/64f99c50f4c866dee943e165/686d0d9d21c8b0d9e64bf3ae_Matter%20Labs%20Report.pdf" rel="noopener noreferrer nofollow">Memento Zk Chain: Creating the Future of Onchain Fund Management&nbsp;</a></li><li><a href="https://cdn.prod.website-files.com/64f99c50f4c866dee943e165/685aa31d8802b759f54e4256_Near%20Q2%202025.pdf" rel="noopener noreferrer nofollow">Near: Leading the AI Blockchain Race</a></li></ul><h2 id="strong-executive-summary-august-s-three-big-shifts-strong">Executive Summary - August’s Three Big Shifts</h2><ol><li>U.S. policy remains pro Build rather than BlockThe new SEC chair, Paul S. Atkins, unveiled “Project Crypto” as a pro-innovation north star and framed making the U.S. the “crypto capital of the world” as agency intent. CorpFin also issued a staff statement on liquid staking activities, which is important because it signals a case-by-case analysis versus blanket hostility. Separately, reporting indicated the Fed is ending its crypto bank supervision program, and the CFTC is exploring a pathway for U.S. users to access offshore venues. Together, that’s a dramatic regulatory posture change.</li><li>Capital markets reopened for crypto, loudly.Bullish filed for and then completed an IPO (raising $1.1B, above range). Gemini filed to list on Nasdaq despite losses. Coinbase announced a $2.0B convertible note proposal and plans to roll out tokenized stocks and prediction markets in the U.S. These are deep, public-market capital channels turning back on.</li><li>“Onchain everything” went mainstream across payments, data, and securities.Google Cloud unveiled its Universal Ledger concept. DBS issued tokenized structured notes on Ethereum. The U.S. Commerce Department and Chainlink began putting official macroeconomic data on-chain. Coinbase turned on DEX trading to “unlock millions of assets.” China was reportedly considering yuan-backed stablecoins. Each pushes real-world assets, payments, and data farther on-chain.</li></ol><h2 id="strong-the-month-s-most-consequential-developments-strong">The Month’s Most Consequential Developments</h2><h3 id="strong-1-u-s-regulatory-reset-accelerates-strong">1) U.S. regulatory reset accelerates</h3><ul><li>SEC “Project Crypto” aligned the agency with innovation and a national strategy.</li><li>CorpFin’s liquid staking staff statement narrowed uncertainty and invited compliant structures instead of bans.</li><li>Fed ended its crypto bank supervision program, while the CFTC was reported to be working on a pathway for U.S. citizens to access offshore trading.</li><li>President Trump was reportedly preparing an order allowing cryptocurrency in 401(k) retirement plans.</li></ul><h3 id="strong-2-public-market-funding-returned-strong">2) Public-market funding returned</h3><ul><li>Bullish raised $1.1B in its IPO, priced above range.</li><li>Gemini filed to list on Nasdaq despite $282M in losses.</li><li>Coinbase proposed $2.0B convertible notes and unveiled U.S. tokenized stocks and prediction markets.</li></ul><h3 id="strong-3-institutions-advanced-onchain-finance-strong">3) Institutions advanced “onchain finance”</h3><ul><li>Google Cloud announced its Universal Ledger (GCUL).</li><li>DBS issued tokenized structured notes on Ethereum.</li><li>The U.S. Commerce Department, via Chainlink, brought official macroeconomic data on-chain.</li></ul><h3 id="strong-4-corporate-treasuries-and-accumulation-ramped-beyond-bitcoin-strong">4) Corporate treasuries and accumulation ramped - beyond Bitcoin</h3><ul><li>VERB Technology committed $558M, later updated to $780M, to build a TON treasury strategy.</li><li>Ethzilla filed for a $10 billion stock sale to buy ETH; BitMine disclosed $800 million in ETH purchases; SharpLink acquired 143,593 ETH, followed by another 56k ETH.</li><li>MEI Pharma launched a $100M Litecoin strategy; Caliber established a LINK treasury; ALT5 Sigma announced a $1.5B WLFI treasury.</li><li>Safety Shot bought a 10% revenue-share interest in BONK.fun, linking a public company to Solana’s meme economy.</li></ul><h3 id="strong-5-staking-and-restaking-products-move-toward-etfs-strong">5) Staking and restaking products move toward ETFs</h3><ul><li>VanEck filed for a JitoSOL ETF, signaling institutionalized wrappers for staking exposure.</li></ul><h3 id="strong-6-exchanges-market-structure-and-product-access-strong">6) Exchanges, market structure, and product access</h3><ul><li>Coinbase enabled DEX trading with access to millions of assets.</li><li>The CFTC was reported to be considering a pathway for U.S. citizens to access offshore exchanges.</li><li>Elon Musk’s lawyer Alex Spiro was named chair of a $200M Dogecoin treasury.</li></ul><h3 id="strong-7-global-policy-divergence-widened-strong">7) Global policy divergence widened</h3><ul><li>China is considering yuan-backed stablecoins to promote RMB internationalization.</li><li>South Korea ordered exchanges to halt crypto lending pending new guidelines.</li><li>UAE airlines began accepting crypto payments for bookings.</li><li>Japan’s largest bank was reported to have filed for BTC and XRP ETFs.</li><li>Wyoming launched a $FRNT stablecoin.</li></ul><h3 id="strong-8-circle-stripe-the-payments-stack-goes-native-crypto-strong">8) Circle &amp; Stripe: the payments stack goes native crypto</h3><ul><li>Circle announced plans for ARC, a stablecoin-focused EVM-compatible L1.</li><li>Stripe and Paradigm revealed Tempo, a blockchain purpose-built for payments.</li></ul><h3 id="strong-9-enforcement-and-cleanup-strong">9) Enforcement and cleanup</h3><ul><li>Do Kwon pleaded guilty to U.S. fraud charges tied to the Terra collapse.</li><li>Windtree Therapeutics disclosed SEC scrutiny in an 8-K filing.</li></ul><h3 id="strong-10-solana-bid-support-strong">10) Solana bid support</h3><ul><li>Galaxy, Jump, and Multicoin were reported to be raising $1B to buy Solana.</li></ul>Based on these updates, below is an important watchlist for next month<h2 id="strong-rapidfire-timeline-of-key-items-aug-1-aug-31-strong">Rapidfire Timeline of Key Items (Aug 1 → Aug 31)</h2><ul><li>Aug 1: SEC chair Atkins launches Project Crypto; Coinbase to launch tokenized stocks &amp; prediction markets.</li><li>Aug 4: VERB announces $558M TON treasury plan; Bullish targets $4.2B IPO valuation.</li><li>Aug 5: Coinbase proposes $2.0B convertibles; MEI Pharma launches $100M Litecoin strategy.</li><li>Aug 6: SEC staff statement clarifies liquid staking; Japan bank reportedly files BTC/XRP ETFs.</li><li>Aug 7: Report of Trump 401(k) crypto order; Parataxis merges with SPAC to build $640M BTC treasury.</li><li>Aug 8: El Salvador plans Bitcoin banks.</li><li>Aug 9: Coinbase enables DEX trading.</li><li>Aug 11–12: ALT5 Sigma announces $1.5B WLFI treasury; Stripe reveals Tempo blockchain; Circle unveils ARC; Do Kwon pleads guilty; Circle files for 2M Class A share offering.</li><li>Aug 13: Bullish IPO raises $1.1B.</li><li>Aug 14: Google backpedals after backlash to Play Store wallet update.</li><li>Aug 16–17: Gemini files for Nasdaq listing; Fed ends crypto bank supervision program; UAE airlines adopt crypto payments.</li><li>Aug 19: Wyoming launches $FRNT stablecoin; South Korea halts crypto lending; SharpLink buys 143,593 ETH.</li><li>Aug 20–21: China considers yuan-stablecoins; DBS issues tokenized notes; Windtree files SEC disclosure.</li><li>Aug 22–23: VERB raises TON treasury to $780M; VanEck proposes JitoSOL ETF; Ethzilla files stock sale to buy ETH.</li><li>Aug 25–26: Galaxy, Jump &amp; Multicoin seek $1B for Solana; BitMine buys $800M ETH; SharpLink adds 56k ETH.</li><li>Aug 27–29: Google Cloud unveils Universal Ledger; Caliber launches LINK treasury; CFTC to enable offshore access (reported); Commerce Dept. &amp; Chainlink brings macro data on-chain.</li><li>Aug 29–31: Dogecoin treasury raises $200M under Alex Spiro; Safety Shot acquires BONK.fun revenue share.</li></ul>How August Changes the Setup<ul><li>Tokenization &amp; settlement rails are moving from pilots to production with Google, DBS, and the Commerce Department.</li><li>Corporate treasury demand is expanding into ETH, TON, LTC, LINK, broadening the institutional base.</li><li>U.S. regulatory posture shifted dramatically; watch for formal rulemaking in Q4.</li><li>Solana is attracting dedicated institutional vehicles, while staking ETFs are now in filing pipelines.</li><li>Asia is split: China explores state stablecoins while South Korea tightens rules.</li></ul><h2 id="strong-august-2025-btc-spot-etf-flows-all-figures-in-millions-strong">August 2025 - BTC Spot ETF Flows (All Figures in $ Millions)</h2>The ETF finished -749 for the month. A heavy -812 on 1 Aug and another downdraft on 19 Aug (-523) outweighed strong creation days like 8 Aug (+404) and 14 Aug (+231); the final week added +441 but couldn’t fully close the gap. By issuer, IBIT was the only large positive at +707, while outflows from FBTC (-662), ARKB (-621) and GBTC (-293) drove the aggregate negative. Smaller funds were mixed: HODL +56, BTC +52, EZBC +17, BTCO +7, and BRRR -4.Overall, cash kept gravitating to IBIT while investors trimmed elsewhere, leaving August modestly net red.<h2 id="strong-august-2025-eth-spot-etf-flows-all-igures-in-millions-strong">August 2025 - ETH Spot ETF Flows (All igures in $ Millions)</h2>Ethereum ETFs finished the month with +3,868 of net creations. Inflows were concentrated in BlackRock’s ETHA (+3,382), which delivered about 87% of the total, with Fidelity’s FETH (+493) a clear second. The Grayscale Ethereum fund added +199, while Bitwise ETHE (-215) and ETHW (-21) were the main drags; minor funds were mixed (CETH +11, ETHV +23, QETH -6, EZET +2). The strongest days were August 11 (+1,019) and August 13(+729), while the largest outflows occurred on August 4 (-465) and August 19 (-430). Net result: investors materially increased Ether exposure in August, led overwhelmingly by ETHA, with only modest leakage from legacy and niche products.<h2 id="strong-august-2025-top-gainers-and-losers-strong">August 2025 - Top Gainers and Losers</h2>Across August 2025 (30‑day change), performance in this basket was heavily skewed to the upside: $OKB led with +351.96%, followed by $M at +310.41%, while $CRO and $PUMP trailed far behind at +76.8% and +44.38%. Losses were comparatively modest: $SPX −36.38%, $FLOKI −29.25%, $PENGU −23.81%, and $BONK −23.22%. The smallest gainer still beat the largest loser by 80.76 percentage points, and the gap between the top gainer and top loser was 388.34 points, highlighting extreme dispersion with upside dominance for the month.<h3 id="strong-why-did-okb-increase-so-significantly-strong">Why Did OKB Increase So Significantly?</h3>Short answer: a deliberate supply shock plus new structural demand.What happened (step by step):<ol><li>Big burn and a hard cap. OKX retired a large block of OKB and then formalized a strict cap on total supply. That combination immediately reduced sellable float and strengthened a scarcity narrative.</li><li>Utility consolidation on X Layer. OKX positioned OKB at the center of its L2 ecosystem (fees, rewards, and broader on‑chain usage), increasing ongoing transactional demand.</li><li>OKT → OKB consolidation. OKX wound down its legacy OKT/OKTChain setup and pushed balances and activity toward OKB, creating mechanical buying and concentrating liquidity.</li><li>Momentum effects. The supply cut and utility pivot triggered a sharp repricing; trend followers and short covering amplified the move.</li></ol>Why it mattered: Scarcity tightened just as new use cases and forced flows arrived, so both the numerator (demand) rose and the denominator (available tokens) fell, classic conditions for a vertical rally.What to watch next: real X Layer usage (transactions, active addresses), exchange and on‑chain liquidity for OKB, and whether post‑spike pullbacks hold higher lows.<h2 id="strong-conclusion-strong">Conclusion</h2>August showed steady, directional progress rather than a breakout. U.S. regulators signaled a more constructive posture, and capital markets reopened to several crypto-native issuers. Corporate treasury activity broadened beyond bitcoin, while exchanges and product sponsors pushed closer to staking-linked exposure and deeper asset coverage. The picture outside the U.S. remained mixed, with some jurisdictions tightening even as others explored stablecoins or expanded acceptance.Most developments were announcements or filings, not final rules or fully scaled programs. The near-term test is follow-through: whether regulators convert rhetoric into proposals or exemptions, issuers complete listings or financings on expected terms, and tokenization/data initiatives operate reliably at higher volumes. Treasury disclosures and any progress on staking-linked wrappers will indicate whether demand is diversifying in a durable way.Heading into September, focus on verification rather than headlines: publication of proposed rules, effective dates, prospectus updates, pricing of planned financings, and concrete operational milestones. If a subset of these materializes, market structure should improve incrementally, with better access, clearer compliance paths, and a modestly tighter free float in select assets. If they slip, expect a slower pace without a change in the underlying direction. (Research Partner)

Reflexivity Research: August 2025 in Review

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