Ethereum Foundation researcher Justin Drake is targeting December 2028 to complete Ethereum’s post-quantum and post-AI transition, a year earlier than the foundation’s previously announced quantum-resistance deadline.

Speaking at Devcon 8 in Mumbai on Tuesday, Drake outlined the accelerated timeline. “Our hope is that by December 2028 we’ll be able to wrap up the full post-quantum and post-AI transition,” Drake said, adding that developers have 24 months to deliver three additional network upgrades.

The Ethereum Foundation’s September roadmap established December 2029 as its deadline for achieving quantum resistance across Ethereum’s execution, consensus and data layers.

Drake’s remarks signal a more ambitious timeline but do not formally replace the foundation’s existing roadmap, which is scheduled for reassessment in January 2027.

In August, Drake outlined plans for production-ready leanVM technology in 2027, followed by post-quantum deployments across Ethereum’s three layers in 2028.

The timeline has drawn scrutiny from other blockchain developers. In October, Starknet’s community backed research into becoming an independent post-quantum layer-1 network.

StarkWare CEO Eli Ben-Sasson previously told Cointelegraph that Ethereum’s 2029 target was “too late,” warning that deadlines could slip.

Related: Ethereum delays Glamsterdam Hoodi testnet launch over security risks

Privacy Coins Drop Amid Crypto Market Downturn

Privacy coins tumbled Tuesday amid a broader cryptocurrency market downturn that saw bitcoin slide toward $76,000. The sell-off came as a report from SMC Researchers highlighted the sector’s growing adoption, persistent liquidity challenges and mounting regulatory pressure.

Zcash (ZEC) led the decline, plunging from more than $1,250 to $1,125, briefly registering a 24-hour loss of more than 10%. A subsequent rebound to $1,170 trimmed its daily loss to 7%. ZEC’s decline helped push liquidations on the privacy coin to $14.55 million, with wiped-out long positions accounting for more than 85% of the total, or $12.5 million.

Near Protocol (NEAR) shed more than 30 cents to hit a session low of $3.75 before recovering to $3.85, leaving it down nearly 7% for the day. Dash (DASH) fell from more than $48.25 to $45.81, while Railgun (RAIL) dropped to an intraday low of $2.10 from $2.29. Several microcap privacy coins also recorded 24-hour losses ranging from 2% to 5%.

However, a handful of privacy coins bucked the trend. Monero (XMR) climbed from $608 to around $625, gaining nearly 3%. The increase extended its 90-day gains to more than 75%, making it one of the top-performing digital assets over that period. Zano (ZANO) surged nearly 8%, rising from $3.09 to $3.32 to lead the privacy coin sector in daily gains.

Beldex (BDX) and Horizen (ZEN) also posted modest gains of 1.6% and 1.7%, respectively.

Darknet Adoption Fuels Demand Despite Liquidity Challenges

The mixed performance comes as privacy-focused cryptocurrencies continue to attract interest despite regulatory restrictions and limited mainstream payment adoption. According to a report by SMC Researchers, the shutdowns of major darknet marketplaces, including Silk Road in 2013, Alphabay in 2017, Hydra in 2022 and Incognito Market in 2024, helped accelerate the adoption of privacy coins, particularly Monero, among operators seeking to evade blockchain tracing.

The shift gained momentum in 2020 when White House Market, then one of the largest darknet marketplaces, began accepting Monero exclusively. However, subsequent exchange delistings disrupted the cryptocurrency’s liquidity and accessibility.

SMC Researchers noted that OKX’s decision to delist Monero in late 2023, followed by Binance in early 2024, contributed to a sharp contraction in trading accessibility. According to the report, daily transactions fell by nearly half, temporarily prompting some Western darknet marketplaces to revert to bitcoin.

Despite these setbacks, darknet operators began shifting back toward privacy coins by mid-2025, contributing to renewed demand and higher valuations across the sector.

The report also highlighted how privacy coins complicate anti-money-laundering investigations by obscuring transaction histories. Illicit actors can potentially convert bitcoin or stablecoins into privacy-focused assets before converting them back, making it more difficult for investigators to trace the movement of funds.

However, exchanges remain potential points of detection because conversions into and out of privacy coins can leave identifiable records. This helps explain why regulators have increasingly targeted trading platforms and other intermediaries rather than the underlying blockchain protocols.

The report cited Chainalysis research indicating that illicit cryptocurrency activity accounts for a relatively small share of overall transaction volume, with much of the identified activity involving transparent networks and assets such as bitcoin, ether and stablecoins.

Despite growing interest in privacy-preserving transactions, the sector faces mounting regulatory challenges. The European Union’s Anti-Money Laundering Regulation will prohibit regulated service providers from handling anonymity-enhancing cryptocurrencies beginning July 1, 2027, potentially further restricting liquidity and access to major trading venues.

SMC Researchers argued that privacy coins address fundamental shortcomings of transparent blockchain networks by protecting financial confidentiality, improving fungibility and enabling businesses to conduct transactions without exposing sensitive information.

However, the report cautioned that everyday retail use remains limited compared with speculative trading activity. Much of the sector’s recent appreciation has been driven by investor narratives and improved market accessibility rather than corresponding growth in payment volumes.

The researchers identified a growing divide between ZEC, which offers optional privacy and institutional accessibility, and XMR, which maintains mandatory privacy protections.

While privacy-enhancing features are expected to become increasingly integrated into broader blockchain infrastructure, the report suggested that dedicated anonymity-focused cryptocurrencies could remain a specialized market segment.

Tuesday’s divergent price movements underscored that distinction. While Zcash and several smaller privacy coins suffered sharp losses, Monero’s resilience suggested that demand for privacy-focused assets remains uneven, even as the broader cryptocurrency market struggles to regain momentum.

TLDR

The Mercado Bitcoin hacker moved about $8 million in Ethereum to new wallets on November 3.
Arkham asked whether the ETH could reach Tornado Cash, but no deposit has been confirmed.
The attacker still holds over $1 million each in several altcoins, including PEPE, AAVE and ONDO.
Tether froze more than $9 million linked to the attack after Chainalysis coordinated with issuers.
The breach came four days after a separate $6.3 billion hack at Binance.

The hacker behind the $46 million Mercado Bitcoin breach has moved about $8 million worth of Ethereum to new wallets. Blockchain analytics platform Arkham reported the transfers on November 3.

The transactions came one day after the attack on Brazil’s largest cryptocurrency exchange. The breach affected wallets across at least ten blockchains and led the exchange to pause deposits and withdrawals.

According to Arkham’s records, the attacker has been spreading stolen Ethereum across several addresses tied to the breach. The largest transfer involved about 2,900 ETH, valued at $6.52 million.

Smaller transactions of 470 ETH and 200 ETH were also recorded. Together, these moves make up the roughly $8 million in ETH transfers flagged by the firm.

Arkham raised the question of whether the ETH could end up in Tornado Cash. Tornado Cash is a crypto mixing protocol that makes it harder to trace links between sending and receiving wallets.

So far, the transfers in Arkham’s update only involved wallets linked to the attacker. No deposits into Tornado Cash have been confirmed.

Hacker Still Holds Millions in Altcoins

Blockchain tracker Lookonchain reported that the attacker still holds several altcoins worth more than $1 million each. These include about 372.99 billion PEPE tokens valued at $1.79 million.

Other holdings include 12,820 AAVE worth $1.61 million and 769,950 PENDLE worth $1.35 million. The wallet also holds 29,830 EVA valued at $1.26 million.

The attacker also holds about 1.98 million VIRTUAL tokens worth $1.15 million and 147,840 UNI worth $1.04 million. Another 2.67 million ONDO tokens are valued at $1.03 million.

Lookonchain warned that these altcoins could face selling pressure if the attacker sells them. Arkham has already tracked 287 token swaps from the attacker’s wallets, including sales of RENDER, WIF, KMNO and POPCAT.

More Than $9 Million in Stolen Crypto Frozen

Investigators, law enforcement and crypto issuers have worked together to freeze part of the stolen funds. In a November 2 report, Chainalysis said its team worked directly with Mercado Bitcoin after the exchange reported the incident.

Chainalysis contacted law enforcement within 30 minutes of finding addresses holding assets that could be frozen. The firm said it coordinated with Tether, Paxos, Circle, Ripple and Anchorage Digital.

About $4 million in stablecoins was secured in the first response. Tether later froze more than $9 million in assets linked to the attack.

The breach began on November 2 when an attacker gained unauthorized access to one of Mercado Bitcoin’s systems. The exchange said it had contained the incident and that customers suffered no harm or data breach.

Arkham’s data showed the attacker first moved 2,852 ETH worth about $6.52 million from an exchange hot wallet. This was followed by $2.99 million in USDT, $2.24 million in USDC and about 104.43 BTC valued at $8.16 million.

A separate Bitquery investigation estimated that about $48.5 million left exchange wallets across ten blockchains. Bitquery also found more Ethereum transactions after the exchange said the incident was contained.

Mercado Bitcoin later published the destination addresses on Ethereum-compatible networks, Bitcoin, Solana, Stellar and Tron. The list is meant to help investigators track the stolen assets.

The attack came four days after Binance suffered a separate breach on October 29 that resulted in about $6.3 billion in stolen crypto. By November 1, Binance said it had replenished 95% of affected assets and resumed Bitcoin withdrawals.

As of November 3, Arkham data shows the attacker still controls a crypto portfolio worth roughly $46 million. Investigators continue to monitor transfers and look for more assets that may be recovered.

The $6.3 billion Binance hack has drawn international attention after the FBI blames North Korea as responsible for the 29th October theft.

The agency attributed the attack to TraderTraitor, a state-sponsored hacking group. Kim Yo Jong, Kim Jong-un’s sister, accused the United States of using fabrications to create the U.S. accusations against North Korea for its alleged theft.

This latest development has taken the focus off the hack itself, putting the spotlight back onto the issue of who was responsible for it.

The FBI is also examining blockchain links to previous hacks, including the $1.5 billion Bybit attack, to verify its suspicions.

As a result of this possible rift in the investigation process, recovery of stolen assets, along with establishing accountability, will likely be even more complicated.

Stolen funds reveal links to previous attacks

Beyond the diplomatic dispute, the movement of the stolen funds provides another way to assess the FBI’s attribution. Blockchain analytics firms have traced the assets across 12,000 wallets and more than 40,000 transactions on 11 blockchains.

Furthermore, according to blockchain analytics firms, many of the Binance proceeds have been laundered through TRON [TRX]. This is by rapidly transferring funds between various addresses, repeatedly cycling the funds through various addresses.

Other methods used in the laundering process include cross-chain bridges, DeFi swaps, and very little usage of mixers. These connections can provide insight to investigators as to what might constitute a common network among hackers conducting similar hacks.

However, tracking movement of funds does allow investigators to see how funds were laundered. Instead, investigators would need additional evidence to show who specifically controlled which addresses.

The missing piece in the Binance hack

Currently, investigators face a harder task of transitioning from tracing stolen funds to identifying those responsible.

While blockchain records indicate how Binance hacked funds moved about in terms of laundering and money laundering, they do not indicate who was ultimately directing the hack.

Therefore, investigators will need to determine if any of the wallets are connected to the previous work of North Korea-related groups. Possible sources of data that can aid investigators in determining this include malware samples, server logs, and IP addresses.

Meanwhile, exchange records may reveal where the attackers attempted to convert or withdraw the stolen assets. These findings could turn the FBI’s attribution into a stronger case for accountability.

Without independent forensic evidence and international cooperation, however, proving direct state involvement remains difficult.

Final Summary

TLDR:

Ethereum trades near $2,266 as buyers attempt to defend the $2,250 level ahead of this weekly close.
U.S. spot Ethereum ETFs recorded $155.7 million in net outflows on October 30, extending the streak.
Ted said ETH funding rates hit their lowest level since June, with shorts expecting another decline.
Ethereum’s weekly chart places the next support at $2,192, with resistance around $2,400 and $2,500.

The Ethereum price recovered to around $2,266 on Sunday after the Binance hack raised concerns over the stolen ETH supply. However, the recovery has remained limited, with ETH still trading below its previous weekly high of $2,385.

The cryptocurrency is now approaching its weekly close, while ETF withdrawals and bearish futures positioning remain concerns for traders. Market attention has turned to whether Ethereum can hold $2,250 before the new trading week begins.

Ethereum Price Holds $2,250 as ETF Withdrawals Continue

Ethereum has recovered some ground since Thursday’s selloff, when news of the Binance breach spread across cryptocurrency markets. ETH briefly dropped below $2,200 before buyers returned, although the rebound has struggled to gain further momentum.

Crypto analyst Ted warned that Ethereum needs to hold $2,250 into Sunday’s weekly close. According to the analyst, losing that level could make the coming week more difficult for buyers. He also reported that ETH funding rates had reached their lowest levels since June’s market bottom.

The weak futures positioning comes alongside continued withdrawals from U.S. spot Ethereum exchange-traded funds. According to Farside Investors, the funds recorded $155.7 million in net outflows on October 30. This marked five consecutive sessions of withdrawals, bringing the combined total to $431.4 million.

BlackRock’s ETHA accounted for $76.6 million of Friday’s outflows, while Grayscale’s Ethereum Mini Trust recorded another $34.1 million. The withdrawals continued even as some corporate investors increased their holdings. Bitmine, for instance, purchased another 10,452 ETH during the previous week, taking its total holdings above 6 million tokens.

Meanwhile, traders remain concerned about Ethereum holdings linked to the Binance attackers. Blockchain investigators linked the breach to North Korea’s TraderTraitor group, while stablecoin issuers froze billions in affected assets. Unlike those tokens, native ETH cannot be frozen by a central issuer, leaving potential transfers under scrutiny.

Ethereum Price Prediction Points to $2,192 as Next Support

With Ethereum still struggling below $2,385, the weekly chart shows that sellers have retained control of recent price movements. An earlier Ethereum market analysis identified weakness around this level before the latest decline. ETH subsequently moved toward $2,200, bringing the next support area into focus.

The weekly chart places immediate support at $2,192.47, close to the middle line of the 20-week Bollinger Bands. If buyers defend that level, Ethereum could attempt another recovery toward $2,400 and $2,500.

For a stronger recovery, ETH would need to reclaim $2,800.47, where its previous advance faced resistance. A move above that area would put the upper Bollinger Band at $2,914.16 within reach. Further buying could then bring the next resistance level at $3,447.44 into focus.

However, a weekly close below $2,192 would weaken the recovery outlook and expose support near $1,965.22. Continued selling could push ETH toward $1,713.44, while the lower Bollinger Band sits around $1,470.78.

The downside risk follows an earlier break below Ethereum’s rising daily trendline during the Binance-related market selloff. With futures positioning still weak, traders will watch whether ETH can defend $2,250 into the weekly close. Monday’s ETF flow data will provide another measure of demand when U.S. markets reopen.

The market is heading into another key macro week. Q3 2026 earnings were a little disappointing.

With costs rising in the AI industry, Amazon saw its free cash flow turn negative at $42.4 billion, causing concern that its huge AI investments may not be providing enough returns to match these valuations. As such, it will be interesting to see how the next set of earnings go.

Apple and Palantir will be reporting on Monday, the 2nd of November.

Notably, the figures are beginning to show just how large the investment gap could be.

According to Bloomberg, this will more than double to roughly $330 billion in FY27, suggesting that AI bubble concerns are more than just short-term market noise. So, with equities under pressure, could this further strengthen Bitcoin’s status as a macro hedge?

Interestingly, this week could offer some clues.

On a macro level, besides earnings reports, The Kobeissi Letter highlights 10 key pieces of data that would provide focus to October’s jobs and inflation figures. This comes at a time when the U.S. midterm elections are looming on the horizon, adding another layer of FUD to an already cautious market.

With the 6.8% drop on the Nasdaq in October and an influx of earnings reports, this could cause a change in market flows. This brings the macro-hedging narrative for Bitcoin back into play.

However, the key question is whether Bitcoin [BTC] can outperform traditional hedges as market uncertainty builds.

Bitcoin eyes a macro shift as gold ETF outflows accelerate

Bitcoin’s 2024-2026 setup against gold is gaining attention.

In 2024, Bitcoin outperformed gold by a wide margin. Up 121%, Bitcoin enjoyed a much stronger year than gold (up 27%) due to strong institutional demand and the launch of spot ETFs.

Interestingly, this makes the recent report from The Kobeissi Letter much more interesting given the increasing macro uncertainty that is being seen in the markets.

As shown in the chart below, the largest U.S. physical gold-backed ETF, GLD, saw $1.8 billion in outflows in October, its biggest monthly withdrawal since June. On a year-to-date basis, GLD has lost $3.8 billion, putting it on track for its first annual outflow since 2023.

Meanwhile, investors pulled another $1.5 billion from gold and precious metals funds last week, marking their second weekly outflow in the past seven weeks.

By contrast, Bitcoin ETFs saw a minor $515 million outflow in October.

So technically, GLD recorded nearly 3.5x more outflows than all Bitcoin ETFs combined in October. This is interesting as it comes amid increasing concerns about the AI bubble and pressure on tech stocks, making the coming week particularly important for Bitcoin’s macro hedge narrative.

In this context, Bitcoin could gain more attention as investors reassess traditional safe havens.

Final Summary

 

TLDR:

Ethereum Foundation sold 2,785 ETH for about $6.42 million in USDS through CoW Swap, Onchain Lens reports
Ethereum traded at $2,312.64, down 1.17% in 24 hours and 4.58% over seven days, per CoinGecko price data.
Ella sees $2,360 as the first recovery test, with $2,400 next if buyers reclaim that level for Ethereum.
Daan Crypto Trades says Ethereum leads in TVL while Solana leads decentralized exchange trading volumes.

The Ethereum Foundation sold 2,785 ETH for approximately $6.42 million in USDS through CoW Swap, according to Onchain Lens. 

Ethereum traded at $2,312.64 at press time, based on CoinGecko figures. The price fell 1.17% over 24 hours and 4.58% over seven days. Daily trading volume reached $8,165,164,939 as ETH hovered above the $2,300 level identified by analyst Ella. 

The sale adds a treasury transaction to watch, although the supplied data does not establish its market impact.

Ethereum Foundation Sale Puts $2,300 Support in Focus

Onchain Lens reported the transaction on X and identified the address as 0x5CBC6299faB3320E7758ac97fd4CA45E5B722059. The Foundation exchanged ETH for USDS, changing the assets held rather than simply transferring tokens between wallets.

However, the report does not explain why the Foundation sold or how it plans to use the proceeds. It also provides no basis for treating this transaction as the cause of Ethereum’s broader decline.

Analyst Ella described progressively smaller rebounds on X, with Ethereum returning near $2,300 after failing to hold above $2,360. Her analysis places the immediate focus on whether buyers can defend the lower level and recover lost ground.

She wants ETH to reclaim $2,360 before describing another bounce as a recovery. Under that scenario, $2,400 becomes the next area in view.

Conversely, Ella identified approximately $2,250 as her next area if Ethereum breaks cleanly below $2,300. These levels represent her conditional chart outlook, rather than confirmed destinations for the price.

Ethereum Foundation Sale Contrasts With DeFi Leadership

Ethereum’s weak price action sits alongside its continued lead in total value locked, according to Daan Crypto Trades. Writing on X, the analyst attributed that position to major DeFi protocols keeping much of their TVL on Ethereum.

Total value locked measures the value of assets deposited in decentralized finance protocols. It offers a different perspective from price performance or the amount of trading taking place.

Daan ranked Base second, with 6.9% of total TVL, while describing Solana as the leader in decentralized exchange volume. He linked Solana’s trading activity to its speed and lower fees relative to Ethereum.

Still, he stressed how quickly trading volume can shift between chains as attention changes. He cited Robinhood capturing 32% at its peak last month and said one successful meme coin can alter rankings.

That comparison separates Ethereum’s deposited capital from the more changeable distribution of trading activity across competing networks.

The immediate takeaway remains narrow: the Foundation sold ETH while Ethereum traded close to $2,300 support. Its DeFi lead provides context, but does not confirm that buyers will reclaim $2,360.

TLDR

VIA Labs launched two-way cross-chain messaging between Stellar’s Soroban platform and Ethereum mainnet.
Developers can use it for stablecoin transfers, tokenized assets and cross-chain smart contract actions.
Transfers using the VIAT reference token finish in about one to three minutes.
VIA is waiving its protocol fee on Stellar routes during the launch period.
The news came during Stellar’s Meridian conference, alongside updates from Securitize and DTCC.

VIA Labs has launched cross-chain messaging between Stellar and Ethereum on mainnet. The new connection lets smart contracts on Stellar’s Soroban platform communicate with contracts on Ethereum.

The company announced the launch on October 28 at Stellar’s Meridian conference in Lisbon, Portugal. The event ran from October 28 to 29.

Messages can travel in both directions between the two networks. Separate versions are also available on each network’s test network.

How the Stellar and Ethereum Connection Works

Developers can use the system to move supported tokens, coordinate contract actions, and build apps for stablecoins or tokenized real-world assets. VIA Labs named cross-border stablecoin payments and automated contract execution as possible uses.

To show how transfers work, VIA Labs deployed a reference token called VIAT. It uses a burn-and-mint method to move tokens between chains.

When a user starts a transfer, the source contract burns the tokens. It then creates a message with the recipient’s address, the amount, and an optional memo.

VIA’s validators watch the source gateway and sign the message. A relayer then delivers it to the destination gateway, which checks the signatures and tells the token contract to mint the same amount.

The company says this keeps the total VIAT supply the same across both chains. Transfers usually finish in about one to three minutes.

Stellar uses seven decimal places for token amounts, while Ethereum uses 18. VIA’s client converts the amounts, so five VIAT sent from one network arrives as five VIAT on the other.

Fees, Security and Developer Tools

Users pay normal network fees, using Stellar’s native token on Stellar or gas on Ethereum. VIA is waiving its protocol fee on Stellar routes during the launch period, and its relayers cover costs on the receiving side.

People receiving tokens on Stellar need an existing funded account. VIA warns that tokens sent to an account that never existed on the network may be lost for good.

The deployment uses VIA’s VG1 smart contracts, which were audited by security firm Hashlock. Messages must come from contracts, not from regular wallet accounts.

For testing, VIA offers a faucet that gives out 100 VIAT per request on Stellar testnet and Ethereum Sepolia. Developers must update testnet addresses after Stellar’s quarterly testnet resets.

The launch follows Stellar’s September rollout of USDT0, which connected the network to Tether-backed stablecoin transfers through LayerZero. That service focuses on USDT liquidity, while VIA’s system supports general contract messaging.

On October 28, Securitize said it plans to add Stellar as its 17th supported blockchain for regulated assets. Securitize works with firms including BlackRock, Apollo and Hamilton Lane.

DTCC also discussed its planned Stellar integration for tokenized securities during Meridian. The company recently launched its tokenization service with 20 institutions and is targeting a public network rollout in 2027.

Michael Saylor’s Strategy has released its financial results for the third quarter of 2026.

According to the results, the largest Bitcoin [BTC] DAT reported a massive $20.91 billion operating income in Q3 2026, compared with $3.89 billion during the same quarter last year.

Here, the main catalyst behind this was the appreciation in the value of its Bitcoin holdings.  Well, to reach this milestone, the company spent approximately $14.33 billion on Bitcoin purchases during this period. Remarking on the same, Andrew Kang, Chief Financial Officer at Strategy, said,

Q3 operating income of $21 billion was the largest ever in Strategy’s history.

At the time of writing, Strategy held approximately 848,517 BTC, worth $66.48 billion, representing a 26% increase in its Bitcoin holdings since the beginning of the year.

What dragged down MSTR stock in Q3 2026?  

Despite such optimistic results, Strategy’s common stock, MSTR, was trading at $141.62 at press time after a drop of 2.44% in the past trading day. Not only that, but MSTR was also down by 6.80% in the year so far.  

Additionally, Strategy’s BTC yield also stood at negative 3.7% year-to-date. In other words, Strategy’s share dilution had outpaced Bitcoin accumulation on a per-share basis.

Hence, just increasing Bitcoin holdings was not enough for the existing shareholders to have a larger Bitcoin exposure per share. 

Q3 financial results suggest…

Notably, the firm’s total revenue declined 3% year-over-year to $125.4 million, compared with $128.7 million in Q3 2025.

On the other hand, Strategy repurchased approximately $2.04 billion worth of its preferred stock (STRC) shares during 2026, buying them at an average price of $97.39 against their stated value of $100. Furthermore, STRC reached $99.92, closing in on its $100 target price, per an October 30 report from AMBCrypto. 

Lastly, Strategy also used its capital markets to fund its Bitcoin purchases. According to reports, Strategy raised approximately $21.23 billion through capital markets during 2026, primarily through equity offerings.

In fact, during Q3, it generated approximately $5.41 billion in net proceeds through MSTR share sales. At the same time, it also sold approximately $431.8 million worth of Bitcoin year-to-date to fund preferred stock dividends and STRC repurchases.

Has MSTR lost ground in 2026?

All in all, it’s clear that though Strategy is strengthening its position as one of the world’s largest corporate Bitcoin holders, however, its earnings remain highly sensitive to Bitcoin’s price movements.

This is one of the primary reasons why MSTR is still struggling to surpass the $400 price level last seen in Q3 2025. 

MSTR’s reports, however, coincided with Bitcoin’s price surging from around $58K to $83K in Q3 2026, with the king coin changing hands at $78,501.71 at press time, down 1.9% in the past 24 hours.

Final Summary

Strategy’s common stock, MSTR, was trading at $141.62 at press time after a drop of 2.44% in the past trading day.
Strategy’s Bitcoin holdings represent a 26% increase in its Bitcoin holdings since the beginning of 2026. 

 

 

 

TLDR

Fhenix launched its CoFHE encryption coprocessor on the Ethereum and Arbitrum mainnets on Oct. 21, 2026.
The tool lets smart contracts process encrypted data without exposing balances, positions or trading strategies.
A new dual-mode token design lets holders switch between public and private balances in one transaction.
Fluton and Alpha Engine launched as the first design partners, and Consensys Diligence audited the system.
Three more apps are set to launch in Q4 2026, and two institutional partnerships are expected soon.

Fhenix has launched its confidential computing technology on the Ethereum and Arbitrum mainnets. The tool lets smart contracts process encrypted data without exposing the information underneath.

The company announced the launch on Oct. 21, 2026. It also released CoFHE, its fully homomorphic encryption (FHE) coprocessor, into production.

The system is built to keep balances, positions and trading strategies private while decentralized apps carry out their operations.

Public blockchains make transactions and contract activity visible to anyone. That has made them harder to use for financial services that rely on private information.

Fhenix is presenting the technology as a base layer for confidential decentralized finance and tokenization. The company points to a potential $1.5 trillion tokenization market that it says is held back by privacy limits.

How CoFHE Works

CoFHE handles heavy encrypted computations offchain. It then sends the results back to smart contracts on Ethereum and Arbitrum.

Fhenix says the system’s throughput adjusts to demand. This means apps are not limited to a fixed processing rate.

Developers can add privacy features using a Solidity import and encrypted data types. These are designed to work much like normal variables, so builders can keep their usual workflows.

The launch also includes a dual-mode token design. Holders can switch balances between public and confidential modes in a single transaction, without wrapping or bridging the asset.

Because the token stays on its original blockchain, Fhenix says it remains compatible with existing wallets, exchanges and DeFi protocols.

“When I started Fhenix three years ago, I couldn’t have imagined how far it would take us,” said founder Guy Zyskind. “CoFHE is now live on Ethereum and Arbitrum mainnet, with competitive performance and a UX that’s simple for any builder who wants privacy in their dApp.”

Zyskind also said Fhenix is working with Tandem on a confidential stablecoin. The company did not share further details or a release timeline.

Design Partners and Security Review

Two design partners launched alongside the network. Fluton is building a confidentiality engine that uses encrypted intents for activity across blockchains, apps and assets.

Alpha Engine is building a confidential network for onchain finance. Strategists can submit encrypted strategies and compete for liquidity without revealing their methods.

Fhenix said both projects passed technical and security reviews before going live. Consensys Diligence also audited the system ahead of the launch.

Steven Goldfeder, co-founder and CEO of Offchain, said privacy has been a major hurdle for institutions. “Confidentiality is one of the biggest barriers between institutions and public blockchains,” he said.

He added that the Arbitrum launch gives developers a way to have both confidentiality and composability within the ecosystem.

Three more decentralized apps are scheduled to launch on CoFHE during the fourth quarter of 2026. Fhenix also expects to announce two institutional partnerships in the coming weeks.

The team is taking part in the Colosseum hackathon to test demand for confidential apps on Solana.