In partnership with

🔥 Aster Burned Bright, Then Crashed Into Allegations

Remember a couple weeks ago when we talked about everyone wanting to be a perp DEX? Well, BNB just hit a new all-time high thanks to Aster, the "Hyperliquid killer" built on BNB Chain that was absolutely ripping.

And then... it all came crashing down (or at least, it dropped by 10%).

Allegations of wash trading to inflate volume hit Aster hard, sending both the platform and BNB tumbling from those fresh highs. The whole BNB perp DEX ecosystem took a beating as traders fled amid the controversy. Some people are now trying to disprove the wash trading accusations, but Aster’s price doesn’t care. It’s still dropping.

A story told in Boldleonidas memes:

Aaaand the next frame.

Meanwhile, Hyperliquid is still sitting at #1 for both perps volume and holders revenue, completely unfazed.

I think the reason no one has been able to dethrone HYPE so far is that Hyperliquid is a purpose-built Layer 1 designed from the ground up for hosting a decentralized exchange. Most competitors (Aster, Lighter, etc.) are either built on top of existing L1s or are catch-up plays by centralized exchanges trying not to get left behind.

You can't fabricate years of infrastructure development overnight. And the market is starting to figure that out!

📊 S&P Is Launching a Crypto Index (Yes, THAT S&P)

The company behind THE S&P 500, the most respected index in traditional finance, is launching a crypto index that tracks 35 crypto companies and 15 cryptocurrencies.

Let that sink in for a second!

The index includes heavy hitters like BTC, ETH, XRP, BNB, SOL, and (wait for it) Hyperliquid. Yes, a protocol that launched less than a year ago is now going to be tracked by S&P.

S&P will create a token that tracks the index performance, allowing traders to invest in a diversified basket of crypto exposure through one of the most credible names in finance.

Will this single-handedly send Bitcoin to $500,000? No. But it gives traditional investors yet another accessible way to get crypto exposure while spreading risk across the sector, and it comes with the S&P stamp of approval.

Ease of use + accessibility + credibility = higher likelihood of adoption at scale.

This is what institutional infrastructure looks like.

💰 Grayscale's ETH Staking ETF Is Here (With a Catch)

Grayscale added staking to its ETH Trust ETF (and its ETH Mini Trust), making these some of the first staking-enabled ETFs to ever go live (after REX/Osprey's Solana staking ETF). The company also added staking to its own SOL ETP, too.

So, Investors can now buy an exchange-traded fund that earns Ethereum staking yield. That's kind of a big deal.

The catch is that the Mini Trust doesn't have a defined distribution schedule, meaning you might not actually receive the staking yield as a dividend. Instead, the fund might just reinvest those earnings back into more NAV (net asset value), meaning your investment will still grow over time from staking, you just won’t get, like, cash (or ETH) payments from the staking yield.

By contrast, REX/Osprey's Solana ETF (SSK) does pay out regular dividends from staking rewards, which is what most investors actually want when they hear "staking yields." But hey, different strokes for different folks!

Regardless, this is progress. Staking ETFs are positioning themselves to compete with dividend stocks, and they might actually have an edge: stock dividends are variable and not guaranteed, while staking yields are consistent and predictable by design.

Two things investors absolutely love: consistency and predictability.

We're still in the early innings, but the staking ETF category could get very interesting very quickly.

📉 Ethereum's Weird Correlation with Small-Cap Stocks

Here's something you probably didn't know: Ethereum is oddly correlated with small-cap equities, specifically the Russell 2000 index (which tracks the smallest 2,000 stocks in the Russell index).

Why? Both are extremely sensitive to interest rate changes. When rates go down, both tend to go up.

With analysts expecting 2-4 rate cuts in the near future, both ETH and small-cap stocks could be positioned for a run. And the bullish case for ETH specifically goes like this: Bitcoin is good, but Ethereum is better in a rate-cutting environment because of staking yields.

Lower rates make yield-generating assets more attractive. Ethereum provides native yield through staking (now accessible via the Grayscale ETH Mini Trust above). Bitcoin doesn't.

It's a simple thesis, but it tracks. If rate cuts materialize as expected, watch how ETH performs relative to Bitcoin. The correlation with small-caps might be the signal everyone's overlooking.

🍟 Extra Crispy Crypto Links

• Coinbase extends Pro trial to 75 million Samsung users: Coinbase just gave free Pro membership trials to Samsung Galaxy users worldwide.

• Institutions now drive crypto markets, retail era over: Bitwise and Aspen Digital executives say long-term institutional capital is king now.

• Did you think NFTs were dead? Hyperliquid's Hypurr NFTs rocket to $300M mc. The 4,600-NFT collection was airdropped to genesis participants.

• Polymarket CEO is new youngest self-made crypto billionaire: CEO Shayne Coplan became a billionaire after ICE’s $2B investment in Polymarket.

• British inmates allegedly plotted $23M crypto heist from prison: Two men face trial for planning crypto robberies while at least 1 of them was in jail.

📩 Weekly Meme Delivery

🎤 Let us know what you thought

We really appreciate you reading our newsletter, and we’d love to hear your feedback.

⏳ Wrapping Up

This week showed us two sides of crypto. On one side, you have platforms like Aster chasing hype with questionable tactics, burning bright and crashing hard. On the other, you have S&P launching crypto indices and Grayscale adding staking to ETFs, which is the kind of cool but sort of boring institutional infrastructure that actually moves the needle long-term.

The message feels like “flash and hype can get you attention, but sustainable infrastructure is what builds staying power” or something like that. You can’t become the perp DEX king by chasing competitors; you gotta built your own product and community intentionally and focus on fundamentals like Hyperliquid.

And that's probably the lesson for this entire cycle honestly: the projects that take time to build real infrastructure are the ones that last. The ones chasing quick wins tend to flame out just as fast as they rise.

Same time next week? Sounds good.

Until next time,
- The Chain Team

Disclaimer: The information provided in The Chain is for informational and educational purposes only and should not be construed as financial advice, investment advice, or a recommendation to buy or sell any securities. The Chain is not a registered investment advisor, broker-dealer, or licensed financial planner. Always do your own research and consult with a licensed financial advisor before making any investment decisions. We may hold positions in or receive compensation from the companies or products mentioned. Disclosures will be made where applicable.

Stocks & Income, AltIndex, Finance Wrapped, The Chain, and Future Funders are all owned by Invested, Inc.