In a notable shift within the cryptocurrency landscape, HBAR has seen a significant surge in value, rising nearly 4% as heightened network activity has driven interest. The increase is attributed to multiple factors, including a rise in transactions per second (TPS), a notable jump in the creation of new accounts, an uptick in the number of holders, and an escalating total value locked (TVL) in the Hedera ecosystem. This confluence of events signals growing confidence in the platform’s capabilities and potential.
Meanwhile, news from Japan has introduced a significant change to the nation’s cryptocurrency tax framework. Starting in 2026, the Japanese government plans to impose a flat 20% tax rate on crypto gains, moving away from the previous system that taxed profits at rates as high as 55%. This reform aims to align the taxation of cryptocurrency with that of stock investments, providing much-needed regulatory clarity in a space that has often faced ambiguity. The new tax structure is expected to encourage investment and innovation within the Japanese crypto market.
In related developments, Ethereum’s staking mechanisms are playing a crucial role in influencing the price of ETH. The large-scale staking of Ethereum tokens results in a portion of the supply being locked away, thus reducing the amount available for trading. As the entry queues for staking grow disproportionately larger than exit queues, this trend is tightening supply, which could lead to upward price pressure during periods of consolidation.
On the other hand, Bitcoin exchange-traded funds (ETFs) have experienced substantial outflows, with a reported $782 million in net withdrawals last week. This trend appears to be driven by institutional investors reducing their exposure to Bitcoin amid a sideways trading environment, compounded by year-end portfolio rebalancing activities. The movement of funds out of Bitcoin ETFs could signal a cautious outlook from institutions as they navigate current market conditions.
In upcoming advancements, Ethereum is gearing up for its Hegota upgrade, slated for late 2026, following the anticipated Glamsterdam update. The Hegota upgrade is expected to introduce a series of efficiency enhancements, including the implementation of Verkle Trees and more rapid cycles of protocol development. This strategic evolution reflects Ethereum’s ongoing commitment to improving its infrastructure and maintaining its competitive edge in the ever-evolving blockchain space.
