Hi Siai,

The markets could be starting to shift.

Retail is quietly stacking Bitcoin. Regulation is moving from uncertainty toward structure. Ethereum is experimenting with AI. And macro headwinds are softening at the same time volatility is compressing.

This is the kind of backdrop that doesn't feel euphoric. It feels early.

Here's what's happening beneath the surface.

DAY1x UPDATES

• Last week's Day1x Leaderboard winners were ustrail2001 taking home 100 USDT, MassiveAltcoinTracker7046 earning 75 USDT, and SpicyTachyonTrader7259 securing 50 USDT. Strong trading, strong rewards.

• This week we're upgrading the XP system. You now earn 1,000 XP for every referral, the equivalent of $1,000 traded credited instantly to your XP total. On top of that, both you and your referral receive 10 USDT once the requirements are met, and you'll continue earning 50% of their trading fees for the life of their account. Referrals are no longer just a bonus. They're a serious XP accelerator

• In last week's video, we explored a different way to think about Bitcoin.
  
  What if we've been framing it wrong?
  
  Instead of "Digital Gold," we break down the idea that Bitcoin is actually Digital Energy, or more specifically, tokenized energy. A mechanism for capturing, storing and transporting stranded or excess energy across borders without pipelines, tankers or grid infrastructure.
  
  It's a thesis worth understanding before the next cycle fully wakes up.

CRYPTO NEWS

• Retail Is Accumulating Bitcoin Again

  Small wallets holding less than 0.1 BTC have increased their holdings by 2.5% since Bitcoin's October 2025 all-time high, pushing retail ownership to its highest level since mid-2024. Historically, this kind of grassroots accumulation has preceded major recoveries, with smaller investors absorbing supply during dips before larger players rotate back in. While whales have trimmed exposure slightly, the steady retail bid may be forming a price floor and setting the stage for a broader rally if institutional capital follows.

• Vitalik Wants AI to Run DAO Voting

  Vitalik Buterin has proposed AI "stewards" trained on user preferences to automate routine DAO governance decisions. The idea aims to solve low participation and voter fatigue by allowing AI agents to handle everyday votes, while escalating critical decisions for human oversight. If implemented, this could dramatically improve DAO efficiency and unlock broader participation across Ethereum's ecosystem, reinforcing ETH's long-term utility narrative.

• Wrapped XRP Expands Into DeFi

  Hex Trust is launching wrapped XRP (wXRP), backed 1:1 and deployable across Solana, Ethereum, Optimism, and other chains. With $100 million in initial TVL, this move gives XRP holders access to broader DeFi liquidity without exiting the asset. Improved interoperability could drive new institutional and retail flows into the Ripple ecosystem as multi-chain activity accelerates in 2026.

• The Shortest Bear Market in Crypto History?

  Bitwise CIO Matt Hougan believes this cycle's downturn may end by Q2 2026, potentially making it Bitcoin's shortest bear market ever. ETF inflows, reduced volatility, and improving macro liquidity conditions suggest the worst may already be behind us. Historically, bear markets create asymmetric entry points, and if central banks pivot toward easing, crypto could lead the next risk-asset rebound.

• US Supreme Court Removes Tariff Risk

  The US Supreme Court has ruled against President Trump's tariff regime, removing a major source of economic uncertainty. Markets interpreted the decision as effectively stimulatory, with crypto responding positively in early trading. Reduced inflation pressure and improved policy clarity may give the Fed more flexibility, reinforcing a supportive environment for risk assets including Bitcoin.
  

• White House Sets Timeline for Crypto Regulation
  The White House has set a formal deadline for the Crypto Structure Bill, signaling serious progress toward regulatory clarity. A defined framework for classification and oversight could unlock new institutional capital, accelerate ETF approvals, and reduce compliance risk across the sector. Clear rules are increasingly being viewed as a bullish structural catalyst rather than a headwind.

THE BOTTOM LINE

Retail is accumulating, regulatory clarity is improving, macro uncertainty is easing, and major networks are expanding real utility. Taken together, this looks less like a fragile bounce and more like early-stage positioning ahead of a broader recovery. If institutional capital rotates back in alongside strengthening fundamentals, the next leg higher may already be forming under the surface.

Momentum rarely announces itself loudly. It builds quietly while sentiment is still cautious.

Retail positioning, regulatory clarity, improving macro conditions and expanding on-chain utility are aligning in a way we haven't seen for months. That doesn't mean straight lines up, but it does suggest the foundation for the next major move may already be forming.

Have a great week,

Michael Chmielewski
Head of Growth & Product