Core Insights - JPMorgan analysts indicate that the Fusaka upgrade for Ethereum, set to launch in December 2025, will temporarily boost transaction volume and active address numbers by increasing data capacity and reducing fees [1] Group 1: Ethereum Network Dynamics - The report highlights a trend of mainnet usage migrating to Layer 2 networks such as Base, Arbitrum, and Optimism, which may impact Ethereum's long-term viability [1] - Alternative blockchains like Solana are attracting users due to lower costs and higher efficiency, further straining Ethereum's market position [1] Group 2: Market Sentiment and Speculation - The speculative demand driven by ICOs, NFTs, and memecoins during the 2021-2022 bull market has significantly declined, affecting Ethereum's transaction activity [1] - Applications like Uniswap and dYdX are shifting towards dedicated chains, which undermines Ethereum's fee generation and burning mechanisms, leading to an increase in ETH supply and downward pressure on prices [1]

Core Viewpoint - The key reason for dYdX being marginalized by Hyperliquid is its liquidity responsibility mechanism, as stated by Jarsy CEO Han Qin [1] Group 1: Company Comparison - dYdX adheres to a "no bailout" DeFi design, which leads to a disappearance of depth when market makers withdraw during extreme market conditions [1] - Hyperliquid, being more centralized, has a treasury and is willing to take on liquidity responsibilities, making it more suitable for high-leverage perpetual contract markets [1] Group 2: Market Dynamics - The shift in user and market maker migration towards Hyperliquid is attributed to its ability to provide better liquidity support compared to dYdX [1]

Market Overview - The cryptocurrency market has experienced a significant decline, with over $140 billion in market value evaporating [1] - Major cryptocurrencies such as Bitcoin and Ethereum have seen substantial drops, with Bitcoin falling below $110,000 and Ethereum dropping below $3,900, marking a seven-week low [1] Liquidation Events - In the past 24 hours, approximately 290,000 traders have been liquidated, with total liquidation amounts exceeding $882 million [2] - Ethereum investors have replaced Bitcoin investors as the largest group facing liquidation, with Ethereum, Solana, and XPL leading in liquidation amounts [2][3] Impact on Public Companies - Several publicly traded companies holding cryptocurrencies have seen their stock prices drop significantly, with MicroStrategy (MSTR.O) and Marathon Digital Holdings (MARA.O) falling approximately 7% and 9% respectively [3] - Despite a brief recovery in stock prices after the market opened, both companies' stocks turned negative again, with declines remaining under 1% [3] Market Sentiment and Economic Indicators - Investors have withdrawn nearly $300 million from U.S.-listed Ethereum ETFs since the beginning of the week, coinciding with a market downturn that forced $1.7 billion in long positions to be liquidated [4] - Strong economic indicators, such as better-than-expected U.S. GDP growth and lower-than-expected jobless claims, have dampened market expectations for future interest rate cuts, contributing to negative sentiment [4] Technical Analysis - The overall market decline is accompanied by increased trading volume, indicating a lack of strength in potential rebounds, suggesting that the adjustment phase is not yet over [4] - Analysts believe that the current market conditions do not support a bullish trend, and the ongoing deleveraging period is likely to continue [4] Ethereum Specifics - Ethereum has drawn more investor attention recently, with a notable price increase from $1,613 to $4,886 since April, but has seen a 15% decline in September [5] - Analysts warn that if Ethereum falls below $3,800, it could trigger further liquidation [5] - The supply of Ethereum on exchanges has dropped to a nine-year low, indicating that long-term holders are accumulating, but selling pressure from holders is counteracting new inflows [5] Derivatives Market - Over $17 billion in Bitcoin and approximately $5.3 billion in Ethereum open contracts are set to expire on Friday [6]

Core Viewpoint - The cryptocurrency market has experienced a significant downturn, with over $140 billion in market value evaporating, as major cryptocurrencies like Bitcoin and Ethereum hit new lows [1][4]. Market Performance - Bitcoin has dropped to approximately $108,880.01, down 2.22%, while Ethereum is at $3,882.97, down 2.99% [2][4]. - The overall market decline has led to nearly 290,000 liquidations in the past 24 hours, totaling over $882 million, with Ethereum investors facing the largest liquidation amounts [2][3]. Company Impact - Several publicly traded companies holding cryptocurrencies, such as MicroStrategy (MSTR.O) and Marathon Digital Holdings (MARA.O), saw their stock prices drop significantly, with declines of about 7% and 9% respectively [3][4]. - Despite a brief recovery in stock prices after the market opened, both companies experienced a decline again, with losses remaining under 1% at the time of reporting [3]. Investor Behavior - Since the beginning of the week, investors have withdrawn nearly $300 million from U.S.-listed Ethereum ETFs, indicating a shift in market sentiment [4]. - The recent downturn has been attributed to a combination of macroeconomic factors, negative news, and technical indicators, leading to a lack of support for price recovery [4][5]. Technical Analysis - Ethereum's price has seen a significant increase from $1,613 to $4,886 since April, but has faced a 15% decline in September [5]. - Analysts warn that if Ethereum falls below $3,800, it could trigger further liquidation, despite a decrease in exchange supply indicating long-term holding behavior [5]. Derivatives Market - Over $17 billion in Bitcoin and approximately $5.3 billion in Ethereum open contracts are set to expire, which could further influence market volatility [6].