Ronin will migrate from a standalone sidechain to Ethereum Layer 2, and the RON inflation rate is expected to drop to below 1%.
Related
EthLabs released its "Week2" update report, highlighting progress on Ethereum interoperability, PropAMMs, and funding.
According to Mars Finance, on July 6th, Barnabé Monnot (barnabé.eth), founder of EthLabs, released a "Week 2" update, summarizing the team's latest progress and ecosystem discussions during the launch and fundraising phases. Regarding interoperability, the team stated they are increasing their confidence in "asynchronous interoperability based on zero-knowledge proofs (zk)," believing this will help build more secure cross-chain bridges and improve the native distribution capabilities of assets across Ethereum's multi-layered network. Currently, some cross-chain paths still suffer from latency issues, especially in the L2→L1 direction; in this context, the intents mechanism can serve as a transitional solution, while sufficient L1 liquidity also helps match cross-chain solvers. Meanwhile, the L1→L2 path is expected to significantly reduce confirmation latency through the Fast Confirmation Rule (FCR), and some clients have already begun integrating this mechanism. In terms of ecosystem discussions, PropAMMs (proposal-based AMMs) have recently become a focus of attention for many teams and researchers, primarily due to their potential optimization space between L1 execution efficiency and transaction building. Meanwhile, ENS is emphasized as a "critical infrastructure for Ethereum," and the team continues to communicate with relevant stakeholders to advance its development direction. Regarding team building, Ethlabs has received over 300 applications and has processed approximately 20%. The short-term goal is to expand to approximately 10 people, and the medium-term goal is to expand to approximately 20 people, focusing on recruiting talent with engineering capabilities and domain expertise. Regarding funding, Ethlabs stated that its current funding round is nearing completion and has secured early support from BitMNR, Sharplink, and Ethereum Joseph. The plan is to bring in 1-2 more core investors before moving to the next stage.
As expectations for a Fed rate hike cool, Bitcoin, Ethereum, and gold continue their rebound.
According to BlockBeats, on July 6th, after Federal Reserve Chairman Kevin Warsh stated that inflation risks were easing, the market bet that the Fed would postpone further interest rate hikes, causing Bitcoin, gold, and silver to rise. Meanwhile, the US dollar is currently stable, with traders expecting it to remain strong ahead of the release of the FOMC meeting minutes, awaiting further clues about monetary policy. According to HTX market data, as of press time, the spot price of Bitcoin was $63,640.1, up 0.93% in the last 24 hours; the spot price of Ethereum was $1,786.6, up 0.4% in the last 24 hours. According to Bitget market data, the spot price of gold was $4,172.2, up 1.21% in the last 24 hours.
Tether burned 2.5 billion USDT on Ethereum in a single day, the largest single-day destruction since February.
According to Mars Finance, on July 8th, CryptoQuant, citing on-chain data analysis, reported that on July 7th, the Tether Treasury burned $2.5 billion worth of USDT on the Ethereum network, the largest single burn on the network since February this year. This surpasses the $2 billion burn on May 8th and is second only to the historical high of $3.5 billion on February 10th. Simultaneously, the USDT balance flowing in and out of Binance via the Tron network fell to approximately $806 million, the lowest level since December 29th, 2025 ($391 million), falling below the $1 billion mark, indicating a significant contraction in USDT liquidity through the Binance Tron channel. While the large-scale burn by the Tether Treasury primarily reflects redemptions, fund management, or cross-chain rebalancing operations, it is not a direct market signal. However, the simultaneous contraction in Ethereum supply and Binance Tron liquidity warrants continued monitoring to see if the trend of synchronized tightening of liquidity in both stablecoin chains continues.
Federal Reserve's Williams: Strong investment in AI is expected to continue.
According to BlockBeats, on July 7th, Federal Reserve official Williams stated that he expects to continue seeing strong investment in artificial intelligence, that risks in the labor market are relatively balanced, and that his recent outlook on inflation is more positive due to energy prices. He added that the direction of monetary policy depends on data and risks, and that the Fed is prepared to achieve its goals. (Jinshi)
CITIC Securities: South Korea is expected to become a key player in the era of physical AI.
According to a research report by CITIC Securities, as reported by Mars Finance, physical AI continues to be a hot topic. Essentially, it's a different expression of the concepts of embodied intelligence and robotics. South Korea recently proposed a super project for physical AI, and our recent research on the South Korean robotics industry chain suggests that South Korea has the potential to become a significant player in the physical AI era. South Korea has a strong robotics industry chain, primarily focused on hardware, mainly driven by conglomerates like Hyundai Group. It has initially established a complete industry chain from upstream components to downstream manufacturing of various complete machines. However, it still lags behind China and the US in terms of embodied models and cost reduction capabilities in the supply chain.
Bitcoin bullish sentiment was supported by a decline in inflation expectations, with the market focusing on the July CPI data.
According to Mars Finance, the cryptocurrency market continued its stabilizing trend, with Bitcoin rising nearly 7% in the week ending July 5th, marking its strongest weekly performance since March. This surge was primarily driven by declining inflation expectations. The break-even inflation rate, a measure of market inflation expectations, has recently declined significantly, with the two-year indicator falling below 2%, approaching the Federal Reserve's inflation target level, and long-term inflation expectations also weakening. Simultaneously, WTI crude oil prices have fallen in tandem with inflation expectations, dropping to levels similar to those before the geopolitical conflict in February, prompting the market to reassess inflationary pressures, interest rate cut expectations, and the dollar's trajectory. Some analysts believe that a weaker dollar index (DXY) will further reduce resistance to Bitcoin's rise, as the two typically have a negative correlation. However, others caution that service sector inflation remains sticky, and declining oil prices do not necessarily indicate a reversal in the overall inflation trend; monetary policy may continue to maintain a "higher and longer" stance. The next key market juncture is the US June CPI data on July 14th, which could be a crucial catalyst for determining the inflation path and the direction of risk assets.