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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PEPE coin price forecast: bulls lead as memecoins roar back

  • PEPE memecoin surges with high volume and strong short-term momentum.
  • Whale activity and open interest boost bullish market sentiment.
  • Key support at $0.0000037, while the immediate resistance lies near $0.000010.

The meme coin market is roaring back, and PEPE coin is leading the charge.

After a quiet holiday period, speculative appetite returned with force.

PEPE memecoin has surged over 61% in less than a week, reigniting retail and investor enthusiasm.

Other meme tokens like BONK, POPCAT, and MOG followed, showing gains between 20% and 75% over the past week.

This resurgence has pushed the total meme coin market cap above $46 billion, according to CoinMarketCap at press time.

PEPE coin has particularly captured attention due to strong trading volume and community activity.

Its 24-hour volume has exceeded $1.4 billion, confirming high liquidity and robust investor interest.

The Futures open interest for PEPE has also risen sharply, hitting $470 million, a bullish sign for leveraged traders.

Short liquidations totalling over $10 million in just a few days have added upward momentum to the price.

Whales are reportedly increasing their holdings, further strengthening the bullish narrative.

PEPE price technical analysis

Technically, PEPE has rebounded above key resistance levels at $0.000005648.

Its 7-day and 14-day gains stand at 61% and 69%, highlighting strong momentum in the short term.

However, traders should remain cautious, as PEPE is still below its 50-day and 100-day EMAs.

A large head-and-shoulders pattern is forming, signalling potential bearish risk if momentum fades.

This is further supported by the fact that the Relative Strength Index (RSI) for PEPE is above 74, indicating an overbought market.

PEPE coin price analysis
PEPE coin price analysis | Source: TradingView

However, the MACD shows a bullish crossover, reinforcing the possibility of further upside before an actual pullback occurs.

PEPE’s price remains 72% below the all-time high of $0.00002803, leaving room for potential long-term growth.

While recent pullbacks of around 2–3% suggest minor profit-taking, they do not negate the broader bullish trend.

PEPE coin price prediction

The meme coin rally has been fueled by a rotation of capital from more stable assets like Bitcoin and Ethereum.

Lower volatility in major cryptocurrencies has allowed speculative tokens like PEPE memecoin to shine.

Social sentiment also plays a role, as platforms and influencers share bullish setups and trading strategies.

If bullish momentum continues, PEPE coin could rise toward the psychological $0.000010 level.

The 50-day SMA and MACD signals suggest further upside is possible in the short to medium term.

However, the head-and-shoulders pattern and EMA resistance indicate traders should remain cautious.

The support at $0.0000037 is critical; a breach could trigger a retracement.

Overall, PEPE memecoin shows strong potential for gains, making it a key watch for speculative investors in the first quarter of 2026.

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