An $11 billion Bitcoin whale returned to crypto markets this week, likely seeking trading opportunities tied to October’s historic crypto rallies and uncertainty in the US.
News
Cryptocurrency markets showed signs of consolidation in the second week of October, even as investors continued to bet on another “Uptober” rally to new highs.
Also in the news this week was the $11 billion Bitcoin () whale who returned after a two-month hiatus to transfer another $360 million in BTC, signaling a potential rotation into the world’s second-largest cryptocurrency, with an additional $5 billion left in their wallet.
In another potential , the US Securities and Exchange Commission (SEC) received 31 crypto exchange-traded fund (ETF) applications, with 21 of them filed during the first eight days of October.
However, the ongoing may slow the regulatory response to these applications, as the SEC stated that it will “under modified conditions” with an “extremely limited number of staff” until a funding bill is passed.
As Democrats and Republicans failed to reach an agreement for the seventh time on Thursday, the government shutdown will extend into next week, as the Senate will leave town until Tuesday, CBS News .
$11 billion Bitcoin whale returns with $360 million BTC transfer after two months
A Bitcoin whale that held about $11 billion in BTC before rotating more than $5 billion of the stash into Ether () two months ago has returned to the cryptocurrency market with another $360 million Bitcoin transfer.
The whale address transferred $360 million worth of Bitcoin into protocol Hyperunit’s hot wallet “bc1pd” on Tuesday. This marked their first transfer in two months, to blockchain data platform Arkham.
The transfer may signal another rotation into Ether, based on the whale’s transaction patterns.
The surfaced two months ago and worth of BTC into Ether, briefly surpassing the second-largest corporate , in terms of total ETH holdings, Cointelegraph reported on Sept. 1.
The whale still held over $5 billion worth of Bitcoin in their main wallet as of Wednesday, signaling more potential selling pressure for the world’s first cryptocurrency.
The started rotating their funds into Ether on Aug. 21 when they sold $2.59 billion of BTC for a $2.2 billion spot Ether and a $577 million Ether perpetual long position.
DeFi TVL hits record $237 billion as daily active wallets fall 22% in Q3: DappRadar
The decentralized application (DApp) industry ended the third quarter of 2025 with mixed results, as decentralized finance (DeFi) liquidity surged to a record high while user activity fell sharply, according to new data from DappRadar.
In a report sent to Cointelegraph, DappRadar that daily unique active wallets averaged 18.7 million in Q3, down 22.4% from the second quarter. Meanwhile, DeFi protocols collectively locked in $237 billion, the highest ever recorded in the space.
The report highlighted an ongoing divergence between institutional capital flowing into blockchain-based financial platforms and the engagement of retail users with DApps. While DeFi TVL reached record levels of liquidity, overall activity lagged, suggesting weaker retail participation.
“Looking at the entire quarter, every category noted a drop in active wallets, but the impact was mostly felt in the Social and AI categories,” DappRadar wrote. AI-focused DApps lost over 1.7 million users, going from a daily average of 4.8 million in Q2 to 3.1 million in Q3, while SocialFi DApps went from 3.8 million to 1.5 million in Q3.
New Japan PM may boost crypto economy, “refine” blockchain regulations
Japan’s newly elected prime minister, Sanae Takaichi, may open the door for more “refined” regulations to boost the country’s cryptocurrency economy, which may be set to emerge as the next global hub for crypto companies.
Takaichi was elected leader of the Liberal Democratic Party (LDP) on Saturday and is set to become Japan’s first female when she takes office on Oct. 15.
Experts say her leadership may introduce a more open stance toward technological experimentation, including blockchain innovation, while maintaining Japan’s .
Takaichi’s election may have a “material impact on the perception and governance of digital assets within the country,” according to Elisenda Fabrega, general counsel at tokenization platform Brickken.
In previous public positions, Takichi has expressed support for “technological sovereignty,” mentioning the “strategic development of digital infrastructure, including blockchain technology,” Fabrega told Cointelegraph. “From a legal perspective, this suggests that her administration may adopt a posture that is not only permissive but potentially proactive in promoting the digital economy.”
Fabrega added that Takaichi’s political positioning may strengthen “Japan’s commitment to legal certainty in the crypto space” and renew interest in the country as an innovation-friendly crypto hub.
Japan’s government is recognizing blockchain as a “ pillar of its digital transformation strategy,” said Maarten Henskens, chief operating officer at Startale Group and head of Astar Foundation.
“A looser monetary outlook under the new leadership could sustain liquidity and fuel investor appetite for alternative assets, including cryptocurrencies,” Henskens told Cointelegraph.
“At Startale and Astar, we see this as a strong environment to continue advancing Japan’s Web3 ecosystem,” he added.
Afghanistan internet blackout “a wake-up call” for blockchain decentralization
Afghanistan’s recent nationwide internet outage underscored a critical weakness in the world’s leading decentralized blockchains: their dependence on centralized internet providers that remain vulnerable to government intervention and technical failures.
The country suffered a near-total internet shutdown that lasted about 48 hours before connectivity was restored on Oct. 1, Reuters . The disruption was reportedly ordered by the Taliban administration, though officials later blamed “technical issues” involving fiber optic cables.
While blockchains aim to provide people with a public, censorship-resistant network for value transfers, their reliance on centralized internet providers makes these use cases challenging during outages.
“The Afghanistan blackout is not just a regional connectivity crisis: It is a wake-up call,” said Michail Angelov, co-founder of decentralized WiFi platform Roam Network. “When connectivity is monopolized by a handful of centralized providers, the promise of blockchain can collapse overnight,” he added.
The nationwide internet and mobile data services outage affected about 13 million citizens, according to a September from ABC News. This marked the first nationwide internet shutdown under Taliban rule, following regional restrictions imposed earlier in September to curb online activities deemed “immoral.”
The Taliban denied the ban, blaming the internet outage on technical issues, including fiber optic cable problems.
Iran has also been facing internet censorship issues since the start of its conflict with Israel.
The Iranian government shut down internet access for 13 days in June, except for domestic messaging apps, prompting Iranians to seek out hidden internet proxy links for temporary access, The Guardian on June 25.
$10 billion in Ethereum awaits exit as validator withdrawals surge
Ethereum recorded its largest validator exit on record this week, with more than 2.4 million Ether worth over $10 billion awaiting withdrawal from its proof-of-stake network, but institutional participants are replacing much of that in the validator entry queue.
Ethereum’s exit queue surpassed 2.4 million Ether worth over $10 billion on Wednesday. The spike in exits extended the queue time to more than 41 days and 21 hours, to blockchain data from ValidatorQueue.com.
Validators are responsible for adding new blocks and verifying transactions on the Ethereum network, playing a critical role in its operation.
“Large withdrawals always mean there is a chance that tokens can be sold, but it does not necessarily equal sales of tokens,” said Nicolai Sondergaard, research analyst at crypto intelligence platform Nansen, adding that “there is no need for concern from this alone.”
While the $10 billion withdrawal queue is significant, validators are most likely “consolidating from 32 ETH to 2,048 ETH stakes for operational efficiency,” according to Marcin Kazmierczak, co-founder of blockchain oracle company RedStone.
This includes growing inflows into liquid staking protocols for improved “capital efficiency,” he told Cointelegraph, adding:
“A large part of withdrawn ETH is redeployed within DeFi, not sold.”
“The 44+ day withdrawal wait time creates a natural throttle preventing supply shocks,” he explained, adding that Ether’s daily volume of $50 billion is still five times larger than the validator queue.
DeFi market overview
According to data from and TradingView, most of the 100 largest cryptocurrencies by market capitalization ended the week in the green.
The privacy-preserving Zcash () token rose over 68% to become the week’s biggest gainer in the top 100 for the second week in a row. The Mantle () token rose over 18% in the week’s second-best performance.
Thanks for reading our summary of this week’s most impactful DeFi developments. Join us next Friday for more stories, insights and education regarding this dynamically advancing space.
