Morning Minute is a daily newsletter authored by Tyler Warner. The views and analysis expressed are his own and do not necessarily represent those of Decrypt.
Good morning!
Here are today’s highlights:
- Major cryptocurrencies are experiencing slight declines, with HYPE performing well; BTC is priced at $78.7k
- Bitcoin ETFs attracted an additional $320 million in inflows, while Ethereum saw $180 million
- Hyperliquid launched AQAv2, directing more fees toward buybacks and burns, and introduced a new lending feature
- LayerZero has rolled out ATLAS, a new settlement and trading engine, leading to a 10% rise in ZRO
- Pistacio surged 200 times as Pump.fun achieved its highest revenue day since September 2025
🏛️ LayerZero Aims to Support All Exchanges
After six years of development focused on facilitating token transfers across blockchains, LayerZero announced ATLAS on Tuesday. This engine is intended to serve as a foundational layer for exchanges rather than competing with them. Following the announcement, ZRO, which was trading near $1, surged over 20%.
ATLAS does not feature an application or user interface. Instead, trading platforms can integrate it while maintaining their own customer interface and avoiding the complexities of building their own matching, clearing, settlement, and risk systems. LayerZero argues that exchanges built on existing platforms often end up in competition with those platforms’ applications, deterring institutions from utilizing infrastructure operated by competitors. They are releasing two versions: one for crypto applications and prediction markets, and another for businesses that require adherence to their own rules. The markets supported can vary from spot and perpetual contracts to stocks, bonds, commodities, and predictions.
“ATLAS represents our conviction that the expanding asset landscape requires a neutral, efficient engine that supports venues across global markets. Any market, anywhere, 24/7, with top-tier performance, all…”
— LayerZero (@LayerZero_Core) August 25, 2026
The ZRO token is integrated into all operations. Trading venues can stake the token for fee rebates ranging from 20% to 65%. Following these rebates, 75% of the remaining funds are used to buy and burn ZRO, while 25% goes to the market creator. This model transforms the token into a stake in trading volume, which explains the price movement following the announcement.
This significant development occurs at a crucial moment for LayerZero, especially after a recent incident where attackers stole approximately $292 million from Kelp DAO’s LayerZero-powered bridge, prompting multiple protocols, including BitGo’s $7.7 billion in wrapped Bitcoin and Wyoming’s state stablecoin, to exit. However, momentum appears to be returning, and LayerZero is prepared to accommodate leading projects in the upcoming cycle involving perpetuals, tokenized stocks, prediction markets, and broader real-world assets. The response from potential partners remains to be seen…
🌎 Macro Crypto and Markets
- Major cryptocurrencies are slightly down with HYPE leading; BTC -0.6% at $78.4k; ETH stable at $2,460; SOL -2% at $97; HYPE +3% at $82
- Notable altcoin movements include ZRO (+10%), SPX (+10%), and PYTH (+4%)
- Oil decreased by 2% to $80; Gold fell 0.5% to $4,670
- Stock futures are steady ahead of PCE data and NVIDIA earnings; DOW unchanged, Nasdaq down 0.1%
- Bitcoin futures have fallen to approximately 12% of open interest from nearly 100% in 2019 and 2020, with $570.08 million liquidated in the last 24 hours
- The Crypto Fear and Greed Index reached 81, indicating “extreme greed,” the highest since late 2024, having risen 45 points in the past month
- Goldman Sachs raised its price target for Coinbase to $196 from $173, maintaining a Buy rating and highlighting derivatives and prediction markets, while Canaccord increased its target to $175 from $130, citing a significantly improved outlook
- The Blockchain Association urged regulators to maintain identity checks at the issuer level for stablecoins, warning that extending KYC to peer-to-peer transactions could severely harm the industry
- Thirty-nine state banking associations have joined the BankChain Alliance, a bank-owned initiative for tokenized deposits, stablecoins, and payment solutions, aiming for a 2027 launch
- A federal jury convicted Japheth Dillman, founder of Block Bits Capital, of wire fraud and conspiracy after he raised nearly $1 million using non-functional trading software
- Security firm Socket identified 77 Firefox extensions associated with a wallet-stealing campaign, confirming 40 as malicious versions of OKX, Rabby, and TronLink
- Japan's FSA, Finance Ministry, and central bank will establish a study group this summer focused on blockchain solutions for continuous settlement of stocks and government bonds
Corporate Treasuries & ETFs
- Bitcoin ETFs attracted $337 million in net inflows on Monday, while ETH ETFs saw $116 million
- Grayscale’s Zcash fund began trading on Tuesday on NYSE Arca under the ticker ZCSH, converting a trust that has existed since October 2017
- Bitwise launched Automated Token Portfolios based on Coinbase’s tokenized stocks, enabling eligible non-US investors to hold AI, robotics, and Magnificent Seven baskets in their wallets
Meme Coin Tracker
- Meme tokens were mostly down; DOGE -4%, SHIB -3%, PEPE -5%, PENGU -4%, TRUMP -5%, BONK -5%; Fartcoin rose 17% to $213 million
- Robinhood chain experienced significant gains again; PONS +40% to $88 million, AI +35%, DELTA +40%, YOLO +45%, and NET +110%; Cashcat increased by 10% to $225 million
- Solana tokens included Pistacio (+200x), Martians (+50x), and nosis (+260%); Ansem rose 10% to $280 million
💰 Token, Airdrop & Protocol Tracker
- Hyperliquid activated AQAv2 on Tuesday, directing around 90% of the reserve yield on USDC held at the protocol into HYPE buybacks and burns every 30 days
- Pump.fun generated $2.4 million in revenue yesterday, marking its highest daily total since September 2025
- The Grayscale Zcash ETF achieved $14.8 million in volume on its first day of trading
🚚 NFT Market Updates
- NFT leaders mostly showed positive movement, with Pudgy’s leading; Punks stable at 32.45 ETH, BAYC down 2% at 8 ETH, Pudgy up 7% at 4.5 ETH
- Top movers included RH Machines (+46%) and Hedgehogs (+18%)
- FWAIR PFPs dropped 11% to a 2.88 ETH floor while the Token Works team released a post mortem on the initial launch