Ethereum launches Clear Signing, Kelp DAO burns hacker tokens, and the Senate confirms crypto-friendly Kevin Warsh to the Fed. BTC consolidates around $81K following market sentiment in Fear. The crypto market entered a clear consolidation phase today after Bitcoin strongly challenged the $81K psychological level. The overall market structure showed typical signs of profit-taking at elevated levels and leverage cleanup. According to SoSoValue data, sentiment in the spot ETF market shifted notably. Bitcoin spot ETFs recorded total net outflows of USD 233 million yesterday, with Fidelity’s FBTC posting the largest outflow at USD 86.1294 million. This reflected a more cautious risk-hedging approach among institutional investors as macro uncertainty remained in focus and prices traded near recent highs. At the same time, Ethereum spot ETFs also came under pressure, with single-day net outflows reaching USD 131 million, mainly led by BlackRock’s ETHA. This broad withdrawal of capital directly triggered a large chain reaction in the derivatives market. Over the past 24 hours, total crypto liquidations surged to USD 275 million, with long liquidations accounting for 80%, or approximately USD 222 million. This showed that highly leveraged long positions became the main target of liquidity clearing as market volatility expanded. In the short term, bullish momentum in the market remained technically constrained.

Crypto Markets Overview

The overall crypto market remained range-bound today under the combined pressure of macroeconomic policy expectations and unusual on-chain fund movements. Bitcoin traded in a narrow range around the $81K level after touching this high zone, while Ethereum showed relatively weaker performance and continued to consolidate near $2,300. The Crypto Fear & Greed Index dropped sharply from 49 yesterday, which indicated Neutral, to 42 today, which moved the market into the Fear zone. This shift reflected growing unease among retail investors after large ETF outflows and long-position liquidations. However, a closer look at trading behavior shows a more layered structure. Although spot prices remained under pressure, Ethereum’s total futures open interest rose against the trend by 5.43% to USD 34.543 billion. Onchain data also showed that more than 3 million ETH had been withdrawn from major CEXs into self-custody wallets since early May. This suggests that long-term holders may be accumulating during the pullback, which could help ease spot selling pressure in the secondary market. Sector performance remained clearly divided. Driven by news that Nvidia CEO Jensen Huang would accompany Trump on his visit to China, the AI sector and selected Layer 1 and Layer 2 projects showed stronger resilience. NEAR and Celestia recorded gains of 11.09% and 9.03%, respectively. By contrast, SocialFi and RWA sectors saw deeper declines as broader market pressure weighed on risk assets.

Source: Alternative

Key News Highlights:

Ethereum Community Launches Clear Signing Security Feature To End Blind Signing Risks

The Ethereum Foundation recently introduced a major security feature called Clear Signing. The feature is designed to address the long-standing structural flaw of blind signing, which has affected crypto users for years. In the past, users often saw only unreadable hex data when authorizing blockchain transactions. This made it easier for attackers to mislead users into signing malicious contracts and draining wallet assets. Clear Signing uses the ERC-7730 standard to turn complex code into human-readable transaction descriptions. This allows users to clearly understand asset flows and permission requests before confirming a transaction. Major self-custody wallets such as Ledger, Trezor, and MetaMask have become among the first platforms to support and contribute to the feature. Officials noted that blind signing vulnerabilities led to billions of dollars in asset losses last year, including a well-known attack on a major CEX by a North Korean hacking group. This “what you see is what you sign” improvement is viewed by the industry as a final line of defense against phishing and contract-tampering attacks targeting retail users. Technical deployment across participating platforms is expected to proceed before the end of June 2026. The feature is also expected to help establish stronger security standards and user trust across the broader Web3 ecosystem.

Kelp DAO Burns Hacker-Held Tokens And Plans To Restart Withdrawals On Arbitrum

Ethereum liquid restaking platform Kelp DAO recently announced that it had successfully burned the rsETH tokens illegally held by the attacker on the Arbitrum Layer 2 network. It also launched a two-week asset recovery and recapitalization plan. In April this year, Kelp suffered an exploit after its adapter bridge contract was attacked by North Korea’s Lazarus Group, causing about USD 293 million in asset losses. The burn of 117,132 rsETH, worth about USD 278 million, marked a key milestone in the protocol’s recovery process. Kelp DAO stated that it will use the Aave Recovery Guardian multisig wallet and its own security vault to inject assets into the smart contract in stages. This process is intended to restore the 1:1 reserve backing of rsETH and ensure full protection of user assets. The team expects to conditionally resume withdrawals within the next 24 hours. Deposits, redemptions, and cross-chain bridging services will also restart once operations are fully restored. To further strengthen security, Kelp has completed a full security hardening process. Cross-chain operations now require four independent attestors and 64 block confirmations. The protocol also plans to migrate to Chainlink’s CCIP cross-chain interoperability protocol to better address more complex cross-chain security threats in the future.

US Senate Confirms Kevin Warsh As Fed Governor With Chair Bid Expected

The US Senate voted 51 to 45 on Tuesday to formally confirm Kevin Warsh as a Federal Reserve governor. His term will last 14 years, and the market widely expects the Senate to hold a key vote this week on his nomination as Fed chair. Warsh previously served as a Fed governor from 2006 to 2011. He has extensive experience in macroeconomic policy and crisis management. In past interviews, he described Bitcoin as a “transformative technology” and said its price signals could provide important reference value for policymakers. As current Fed Chair Jerome Powell’s term is set to end this Friday, the leadership transition at the central bank has drawn strong attention from global financial markets. Investors are closely watching its potential impact on the future interest rate path, inflation control, and central bank independence. At the same time, the Senate Banking Committee is expected to review the Digital Asset Market Clarity Act, or CLARITY, this Thursday. The bill covers key legal frameworks for stablecoin yield regulation and crypto market structure. If Warsh is successfully confirmed as chair, his relatively open stance toward crypto and the progress of new legislation could reshape the interaction between the US financial system and the digital asset industry.

Trending Tokens:

• $BARD (Lombard)

Lombard is currently reshaping the development landscape of Bitcoin DeFi through the launch of its flagship yield-bearing asset LBTC, and its Meta-Vault architecture. This fund-of-funds structure effectively addresses the inherent limitations of traditional single-strategy products by allocating capital across diversified sub-vaults managed by specialists. The protocol focuses on generating stable returns across different market cycles while using risk isolation mechanisms to prevent cascading failures. Recent performance metrics show that Bitcoin Earn has surpassed $1 billion in total deposits, with its user base exceeding 38,500 participants. Its current 3.68% 30-day APY denominated in Bitcoin has significantly strengthened the project's appeal to both retail and institutional investors. In addition, this Meta-Vault model has successfully replicated an institutional standard from traditional finance within the decentralized Bitcoin ecosystem.

• $TREE (Treehouse)

Treehouse is showing notable market influence after its strategic transition from a portfolio management platform into a decentralized fixed-income layer. The protocol introduced tAssets and the Decentralized Offered Rate to establish essential fixed-income primitives for digital asset participants. By allowing users to deposit ETH or liquid staking tokens to mint tETH, the platform supports the convergence of onchain interest rate benchmarks. A recent strategic announcement about expansion to another blockchain has catalyzed a sharp increase in market engagement and speculative activity. The project has secured $18 million in funding from well-known venture investors, including Wintermute and Mirana Ventures. Treehouse continues to optimize its technical infrastructure to support more sophisticated financial instruments across diverse blockchain ecosystems.

• $SAGA (Saga)

Saga is a dedicated Layer 1 protocol designed to automate the deployment of application-specific blockchains known as Chainlets. Its architecture enables developers to launch scalable and interoperable dedicated chains with the same efficiency as deploying standard smart contracts. By implementing shared security and standardized automated deployment pipelines, Saga effectively addresses core challenges around scalability and deployment overhead. Its rising visibility is mainly driven by its unique positioning within modular infrastructure and decentralized gaming narratives. With $11.5 million in total funding and backing from Placeholder and GSR, the project remains well funded for rapid expansion. Saga continues to serve as a key component of the modular sector by providing flexible environments for high-performance Web3 applications.

Disclaimer: The information provided in this section is for informational purposes only and doesn't represent any investment advice or FameEX's official view.