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Edgen Crypto·Jul 24 2026, 07:22
Ethereum fell 1.8% to $1,891 as on-chain data showed long-term holders realizing losses at levels not seen since the 2022 bear market, Glassnode data shows. "The intensity of realized losses among long-term holders has reached levels that historically coincide with bear-market exhaustion," a Glassnode analyst said in a July 24 research note. More than 65% of coins flowing into exchanges are from long-term holders realizing losses, Glassnode data shows. The cohort that bought near the 2025 all-time high of $4,870 has been the dominant source of sell pressure. Ethereum is now trading 61% below that peak. The capitulation has coincided with a record 34% of ETH supply being staked, reducing available float. If selling pressure exhausts as it has in prior cycles, Ethereum could establish a local bottom, with resistance at $2,100 and support at $1,500. ## Record staking absorbs 34% of supply Staking data from StakingRewards shows 34% of all ETH supply is now locked in staking contracts, up from 33% one month earlier. That reduces the amount of ETH available for trading and has helped absorb some of the selling pressure from exiting holders. Bitmine Immersion added 156,719 ETH over the past month and now controls 4.8% of available supply, according to the firm's disclosures. The staking yield, currently around 3.2% annualized, has attracted institutional holders seeking yield in a low-rate environment. The growing staked supply creates a structural bid that was absent during prior bear markets. ## Derivatives market shows muted conviction Despite the price recovery from the June low of $1,500, derivatives markets reflect cautious positioning. The annualized funding rate on ETH perpetual futures has struggled to stay within the neutral 6% to 12% range over the past month, according to Laevitas. Sentiment has improved from the negative rates seen in late June, which reflected heavy bearish demand, but traders remain unwilling to pay a premium for long exposure. A trader placed a $28 million notional long straddle on ETH at the $1,875 strike expiring July 24, paying $852,000 in premium, according to Laevitas. The bet profits from sharp price moves in either direction, a sign that major participants expect volatility to increase rather than a directional breakout. ## What comes next The capitulation pattern mirrors previous bear-market phases where long-term holder selling eventually exhausted, Glassnode said. The key question is whether the selling has peaked. Early signs suggest the liquidation intensity of long-term holders may have begun to decline, with on-chain realized losses starting to moderate. Absent a larger external shock, analysts see limited downside from current levels. The next event could come from Google parent Alphabet's earnings, with traders watching for AI spending data that could affect risk appetite across markets. Ethereum's path to $2,100 depends on reduced risk aversion across broader markets. This article is for informational purposes only and does not constitute investment advice.
The Drift Protocol exploiter deposited 23,095 Ether, worth $44.4 million, into Tornado Cash on July 23, resuming laundering after three months of inactivity. On-chain analytics firm Lookonchain flagged the movement, confirming the wallet cluster tied to the April exploit had reactivated. Security firm PeckShield independently corroborated the transfers. The address, labeled Drift Exploiter 4 on Etherscan, executed dozens of deposits in 100 ETH, 10 ETH and 1 ETH tranches into the Tornado Cash router between 08:20 UTC and 09:06 UTC, according to on-chain records. The same wallet sent 0.85 Ether to addresses flagged as Bybit deposit addresses, a pattern analysts described as test transfers before larger off-ramp attempts. The exploiter still controls 107,165 Ether valued at about $201 million, per Arkham Intelligence data. If the current pace of 100 ETH batches continues, the remaining stash could be washed through the mixer within days, narrowing the recovery window for funds stolen in one of 2026's largest DeFi attacks. Drift Protocol, the largest decentralized perpetual futures exchange on Solana, lost about $285 million on April 1 after attackers exploited compromised multisig signers and a fake token called CarbonVote. Mandiant attributed the breach to UNC6862, a North Korean threat group, according to Drift's investigation update. The attackers emptied key vaults within about 12 minutes. Independent investigator ZachXBT said on X that he did not plan to track the funds further, describing the monitoring of a nine-figure North Korea-linked exploit as "difficult for a team and not feasible for a single person." Drift has said it works with law enforcement, Mandiant and blockchain intelligence firms. The Tornado Cash deposits do not prove the attacker has converted the Ether into usable cash. The deposits remain public on-chain, and investigators may still identify later withdrawals. However, the mixer breaks the direct wallet-to-wallet trail, making the next phase of tracking more resource-intensive. Drift previously announced a recovery bounty program with Arkham and Bybit, though the protocol has not disclosed whether the program became fully active or whether it covers ongoing wallet monitoring. Tether proposed up to $127.5 million in support as part of Drift's user recovery plan. The protocol's total value locked collapsed from about $550 million before the hack to under $250 million within a day, and the DRIFT token remains roughly 98 percent below its all-time high. This article is for informational purposes only and does not constitute investment advice.
**Injective's native token integration on Coinbase has strengthened the project's U.S. accessibility and pushed INJ toward a critical $8 breakout level.** Injective's INJ token rose after Coinbase began supporting native deposits and withdrawals directly through the Injective blockchain, following the completion of the token's migration from Ethereum's ERC-20 standard to the native Injective EVM on July 22. "The Coinbase integration removes a key friction point for U.S. investors looking to access the Injective ecosystem directly," Jason Wu, on-chain analyst at Edgen, said. "Native support means users no longer need bridge-dependent transfers, which historically created liquidity fragmentation." INJ has been forming higher lows since finding support in the $3.50 to $4.50 demand zone, with the token now testing the $7.70 to $8.00 resistance range, according to CoinGecko data. The migration, which Coinbase supported as a 1:1 token conversion, re-enabled deposits on the exchange after a brief suspension during the swap process. A decisive breakout above $8 would invalidate the broader lower-high structure that has defined INJ's correction in recent months and could open the path toward the $10 to $12 range, per technical analysis. On the downside, failure to hold the ascending trendline could send the token back toward $4.50 support, with the broader demand zone near $3.50 as the next line of defense. **Coinbase Integration Expands Injective's Reach** The native INJ support on Coinbase marks a milestone for Injective's growth strategy. As one of the largest regulated cryptocurrency exchanges in the U.S., Coinbase provides exposure to millions of retail and institutional investors. Greater accessibility could translate into stronger ecosystem participation, particularly as decentralized finance activity expands across Layer-1 networks. Injective has steadily expanded its infrastructure across decentralized exchanges, real-world asset initiatives, tokenized finance, and AI-powered applications. The network, built on the Cosmos SDK, offers cross-chain trading capabilities with gas-free transactions, according to the project's documentation. Easier access through Coinbase may encourage additional liquidity and user participation, both of which are important for sustaining long-term growth. **What's at Stake for INJ Holders** The $7.70 to $8.00 zone represents the biggest technical challenge for the current recovery. Previous selling pressure created a significant supply cluster in this region, and buyers will need to absorb that overhead to confirm a trend reversal. If INJ clears that level, the next major target sits in the $10 to $12 range, representing potential upside of more than 50% from current levels. On the fundamental side, the Coinbase integration strengthens one of the market's key investment narratives: blockchain networks that improve accessibility while expanding utility often attract stronger investor attention during broader market recoveries. The token migration to native Injective EVM also aligns with the network's goal of reducing reliance on Ethereum infrastructure and building independent DeFi capabilities. This article is for informational purposes only and does not constitute investment advice.
