Starknet faces fresh mainnet disruption

  • Starknet uses zero-knowledge rollups to batch transactions off chain and settle on Ethereum.
  • The project is also pursuing Bitcoin DeFi integration through its BTCFi initiative.
  • The STRK token price remained stable despite the disruption.

Starknet, an Ethereum layer-2 network built on zero-knowledge rollups, entered 2026 dealing with an unexpected mainnet disruption that temporarily interrupted network activity.

The incident surfaced at a moment when layer-2 infrastructure is increasingly critical to Ethereum’s scaling roadmap, with developers and users relying on these networks for faster execution and lower costs.

As decentralised applications expand across finance, gaming, and experimental Bitcoin-linked use cases, even short periods of downtime draw attention to operational resilience.

The latest disruption placed Starknet under that spotlight, testing its response processes while the broader ecosystem monitored network stability.

The Starknet team acknowledged the issue through an X post, confirming that the network was experiencing downtime and that engineers were actively investigating the cause.

The update stressed that work was underway to restore full functionality as quickly as possible, although no technical explanation was shared at the time.

When the message was published, the mainnet had already been unavailable for just over two hours, marking a notable interruption for developers and users relying on live applications.

Network interruption

The disruption did not come with immediate details on whether transaction sequencing, proof generation, or another component was affected.

Starknet’s architecture relies on batching large volumes of transactions off chain before submitting cryptographic proofs to Ethereum.

Any failure along that pipeline can temporarily halt activity, even if user funds remain secure on the base layer.

During the outage window, on-chain data indicated stalled execution rather than loss of state, aligning with typical safety mechanisms used by ZK-rollup networks.

How Starknet works

Starknet operates as a ZK-rollup based layer-2, processing transactions away from Ethereum’s main chain and periodically settling them with validity proofs.

This design aims to deliver higher throughput and lower fees while inheriting Ethereum’s security guarantees.

The network has positioned itself as an infrastructure for complex smart contracts, decentralised finance protocols, and gaming applications that require fast settlement.

Its reliance on cryptographic proofs means performance gains are tied closely to the reliability of off-chain components.

Bitcoin DeFi focus

Beyond Ethereum-native use cases, Starknet has been promoting a Bitcoin DeFi, or BTCFi, arc.

The initiative frames the network as a bridge for Bitcoin-related financial applications seeking exposure to Ethereum’s programmability.

By enabling Bitcoin-linked assets or logic to interact with decentralised applications, Starknet has aimed to broaden its relevance beyond a single ecosystem.

The timing of the disruption, however, highlights how operational stability remains central as these cross-ecosystem ambitions develop.

Market response

Despite the mainnet downtime, the STRK token price held steady at $0.08898 at the time of writing, suggesting limited immediate market reaction.

Starknet price
Source: CoinMarketCap

Short-term resilience in the token contrasted with the technical interruption, indicating that traders may be viewing the issue as operational rather than structural.

As engineers continued work on restoring full functionality, attention remained focused on updates from the team and the duration of the disruption rather than price volatility.

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Crypto ETFs may soon hit Japan amid tax cuts and regulatory reset

  • Crypto ETFs are being studied as a regulated gateway for public access to digital assets.
  • Japan will cut crypto taxes to 20% and reclassify major tokens as financial products.
  • Institutional shifts in Japan could have wider implications for global markets.

Japan is laying the groundwork for crypto exchange-traded funds as part of a broader effort to bring digital assets into its regulated financial system.

The shift was outlined by Finance Minister Satsuki Katayama during her New Year address at the Tokyo Stock Exchange, where she confirmed government backing for integrating blockchain-based assets into the country’s stock and commodity exchanges.

The comments place Japan alongside jurisdictions that are rethinking how digital assets fit within traditional markets, with 2026 framed as a pivotal year for implementation.

Katayama described 2026 as the first year of a new digital phase for Japan’s economy, pointing to developments overseas to underline the direction of travel.

She highlighted how crypto ETFs in the US have expanded access to digital assets by embedding them within familiar investment structures, rather than treating them as a separate asset class operating outside regulated exchanges.

ETFs enter policy debate

The minister’s remarks signalled a clear intention to use existing exchange infrastructure as the foundation for digital asset adoption.

By anchoring crypto trading to securities and commodity exchanges, policymakers appear focused on standardisation and oversight, rather than rapid deregulation.

Katayama also linked crypto ETFs in the US to their growing use as an inflation hedge for households, suggesting that Japan is assessing how similar products could function within domestic portfolios.

As Minister of State for Financial Services, she pledged full support for exchanges developing fintech-focused trading systems.

This backing indicates that crypto-linked products are no longer being treated as experimental but as instruments that could sit alongside equities, commodities, and derivatives.

Tax and legal reset for 2026

The ETF discussion coincides with sweeping regulatory changes already locked in for 2026.

Japan will cut its crypto tax rate from a maximum of 55% to a flat 20%, aligning digital assets with stocks and other conventional investments.

The government has also reclassified 105 cryptocurrencies, including Bitcoin and Ethereum, as financial products under the Financial Instruments and Exchange Act.

These changes allow investors to carry forward crypto trading losses for up to three years, mirroring rules that apply to equities.

The clearer framework has prompted long-standing preparations by domestic firms.

Implications beyond domestic markets

Japan’s evolving stance is being watched closely outside the country.

As the largest foreign holder of US Treasury bonds, with holdings of about $1.2 trillion, Japan plays a significant role in global capital flows.

Any reallocation by Japanese institutions toward digital assets could influence market sentiment well beyond Asia.

At home, the Financial Services Agency has already approved the country’s first yen-pegged stablecoin, JPYC, and has discussed allowing banks to hold and trade crypto directly.

Katayama has characterised 2026 as a turning point for addressing Japan’s economic challenges through fiscal policy and targeted investment in growth sectors, with digital assets now firmly part of that strategy.

With lower taxes, clearer legal definitions, and ETF-style products edging closer, Japan is repositioning crypto from the fringes of finance toward the centre of its regulated markets.

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Ethereum network growth hits $8T milestone, bulls eye $3,500 level

  • Ethereum price gains as bulls eye $3,500 amid broader cryptocurrency gains.
  • The Ethereum network’s stablecoin transfer volume hit $8 trillion.
  • Bulls could target a surge to $4,000-$4,500, although bears remain alert.

The price of the Ethereum token is hovering in the green as optimism across the cryptocurrency market lifts Bitcoin to $93,000. AI tokens were among the cryptocurrencies that rallied.

With ETH at $3,171 at the time of writing, analysts are pointing to a potential squeeze past $3,500.

The top altcoin network’s unprecedented stablecoin transfer volumes, as well as overall risk market trends, make the odds in favour for the bulls.

However, traders have also taken note of a $63 million short position by a major whale, largely signaling big investors’ view of the asset’s near-term trajectory.

Ethereum price retests $3,200 resistance level

Ethereum’s price climbed to highs of $3,211 early Monday.

It marks a notable rebound that sees bulls reclaim the level after falling to lows of $2,700 in mid-December 2025.

The token had failed to clear above $3,000 after climbing to near $3,400 earlier that month.

Ethereum Price Chart
Ethereum price chart by TradingView

However, as top altcoins joined Bitcoin in a broader market upswing, ETH rose from a support level near $3,100.

Bulls boasted the upper hand with daily volume jumping 40% to over $17 billion.

Ethereum’s price gains aligned with the uptick for equities, which showed gains as the market reacted to news of a US operation in Venezuela.

Analysts at QCP Group said in a note to investors.

“After a range-bound December, crypto broke higher in early Asia, with $BTC and $ETH clearing $92k and $3,100. The move coincided with gains in equities and weaker oil prices following the US operation that led to the detention of Venezuela’s Nicolás Maduro.”

Gains for Ether also come as the network eyes momentum amid a record stablecoin transfer volume.

Token Terminal data shows the Ethereum network has achieved a historic milestone, with stablecoin transfer volumes crossing $8 trillion in the fourth quarter of 2025.

This record high, nearly double the volume recorded earlier in the year, highlights Ethereum’s dominance as a hub for stablecoin transactions.

Real-world payment use rather than speculative trading provided fuel for this growth.

Bulls target $3,500, but what do analysts say?

According to QCP Group, crypto price performances in the past week show “alignment with broader risk assets.”

This could signal a shift in sentiment, which may then strengthen bullish narratives.

From a technical point of view, bulls have the potential to climb toward $3,500.

If price breaks out above this level, the next target could be $4,000 or higher.

This short-term outlook, however, may include a sharp reversal, with any upside squeeze threatened by profit taking.

As aforementioned, a large whale has taken a $63 million short position, with a liquidation threshold at $4,545.

Weakness may signal a pullback to $3,000, especially if Bitcoin falters and fails to extend gains.

BTC falling below $90k will spell bad news for bulls.

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AI tokens lead crypto rebound as Bitcoin Breaks $92,000, Render jumps 15%

  • Render, Virtuals Protocol and Artificial Superintelligence Alliance tokens lead AI’s bounce
  • Gains come as Bitcoin breaks above $92,000 amid the geopolitical situation in Venezuela.
  • RENDER price could rally to $3-$5 region in the short term.

AI tokens have joined memecoins in starting the year higher, with Render price set for a potential retest of $3.

This comes as the cryptocurrency market kicks off 2026 with renewed vigor. Bitcoin has broken above $92,000 while Ethereum bulls have eyes on strengthening above $3,100.

Amid this, artificial intelligence-related tokens lead the broader recovery in altcoins, which in the past 24 hours, includes major gains for Virtuals Protocol and Artificial Superintelligence Alliance.

Pepe soared to lead memecoin’s rebound last week.

RENDER price gains 15% as AI tokens lead crypto bounce

The Render project offers a decentralized GPU rendering network, and ranks as one of the top AI tokens in the crypto space.

Amid an overall spike for AI coins, its native token has surged by more than 15%.

This move in the past 24 hours has seen the token top the $2.10 mark, with the uptick riding an intraday pump in buying pressure.

Per CoinMarketCap, over $139 million in Render has been traded in this period.

On a weekly basis, RENDER has posted over 56% gains. This aligns with a broader rebound in the AI crypto segment, where related projects have demonstrated even stronger momentum.

For instance, FET has advanced by more than 15% in the past day and 30% this past week.

Elsewhere, Virtuals Protocol (VIRTUAL) has rallied more than 25% and 51% in the same time frames, respectively.

Render price hovered near $2.07 at the time of writing.

Bitcoin price buoys altcoins

The gains for RENDER and other AI tokens have materialized against a backdrop of positive developments in the broader market.

After struggling at the end of 2025, Bitcoin is showing strength as the price breaks above $92,000.

BTC’s upside looks to have bolstered risk appetite across digital assets, even as geopolitical tensions escalate.

Recent US military actions in Venezuela, including strikes and the capture of President Nicolás Maduro, have introduced uncertainty.

However, market participants appear to view these events as contained.

Bulls are prioritizing Bitcoin’s strength and potential implications for energy markets over immediate risk-off sentiment.

RENDER price forecast

As the new year unfolds, AI tokens are joining memecoins in delivering robust early performance.

While investors could yet rotate into top coins, the early moves have the likes of Pepe (PEPE) and Shiba Inu (SHIB) ranking among the top weekly performers.

Render Price Chart
Render price chart by TradingView

Retail enthusiasm amid some level of certainty will be good for small caps.

In this case, RENDER could eye a breakout to $3 or higher.

The charts show technical indicators pointing to constructive momentum.

A look at the weekly Relative Strength Index (RSI) suggests a potential upside continuation.

Buyers may nonetheless have to contend with the resistance zone highlighted by the weekly moving average.

 

 

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Cardano price jumps to $0.38 as bulls reclaim key level

  • Cardano price was up 10% to above $0.38 as Bitcoin crossed $90,200.
  • ADA is eyeing a potential breakout to $2.
  • Bulls will look to ride key catalysts in 2026.

Cardano’s ADA token rose more than 10% to trade above $0.38, after buyers pushed the price back above the closely watched $0.35 level that analysts have long identified as a key support zone.

The move comes alongside a broader upswing in the cryptocurrency market.

Bitcoin advanced about 2% to trade above $90,000, providing a supportive backdrop for risk appetite across digital assets.

Major altcoins also recorded strong gains, with Ethereum climbing above $3,100 and XRP jumping to around $1.95, helping lift sentiment toward Cardano.

Elsewhere, memecoins led the day’s advances, posting double-digit increases as Pepe and Shiba Inu rallied sharply.

Hedera also traded higher, adding to the broader altcoin strength.

Cardano reclaims key $0.35 level

Strong buying activity has underpinned ADA’s recent advance, with more than $770 million worth of the token changing hands over the past 24 hours.

Trading volume was up about 34% on the day, pointing to renewed market participation.

Cardano’s price has now moved above its 50-day simple moving average, a level often watched for signs of shifting momentum.

On-chain data also shows improvement in decentralized finance activity, with total value locked on the Cardano network rising about 7% to roughly $231 million, according to DeFiLlama.

While the increase signals fresh inflows, TVL remains well below previous peaks of $544 million in August 2025 and more than $865 million in December 2024.

From a technical perspective, analysts note that ADA had been tightly compressed between the $0.35 and $0.38 levels in recent weeks, creating a fragile setup.

The push above $0.35 is seen as a potential break from that range and could undermine the prevailing bearish pattern if sustained.

Cardano Price
Cardano price chart by TradingView

If this latest upside momentum holds, short-term targets include $0.42, with potential rally to $0.50.

While risks like a drop below $0.34 persist, Cardano price could rally beyond $0.54 to see bulls eye 2025 highs of $0.73 hit in October. Above that lies the critical $1 level.

In the medium term, crypto analyst Javon Marks says ADA price could target $2.9 with a seven-fold upside potential.

Cardano regains top 10 market cap rank

Cardano extended gains on Thursday, rebounding after briefly slipping out of the top 10 cryptocurrencies by market capitalisation at the start of the year.

ADA has moved back above Bitcoin Cash, with the recovery above the $0.35 level helping restore its position among the largest digital assets.

The rally has lifted Cardano’s market capitalisation to about $13.6 billion.

The move comes alongside broader stability in the crypto market, with Bitcoin trading back above $90,200.

Strength across major altcoins has also supported sentiment, as Ethereum climbed to around $3,100 and XRP advanced about 5% to near $1.95, reinforcing the bullish tone around Cardano.

 

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