News 
May 9, 2025 
8 min. 
The crypto market continued its explosive rally this week as total market capitalization surged to $3.27 trillion, marking an 8.6% rise from the previous week. Bitcoin soars past $103K, hitting a new local high of $103,600 on May 8. This was its third time crossing the six-figure threshold since December 2024. The rally also pushed Bitcoin’s market dominance above 60%, reflecting growing investor confidence in the top digital asset.
The latest surge in BTC came on the heels of former President Donald Trump’s announcement of a potential UK trade deal, which may scrap the 10% blanket tariff on imports. Investors saw the news as a pro-growth signal, which helped fuel bullish sentiment across global markets.
In parallel, Ethereum (ETH) jumped 26% following the successful deployment of the Pectra upgrade, which brought critical enhancements to the network. ETH rallied from $1,800 to over $2,300 between May 7 and May 9, driven by renewed investor interest in scalable smart contract platforms.
Bitcoin DeFi Mining Hits Record Highs as Rootstock TVL Declines
Despite a sharp decline in total value locked (TVL), Bitcoin DeFi activity saw a major win in Q1 2025 with merged mining on Rootstock reaching record participation levels. According to Messari’s latest “State of Rootstock” report, mining involvement soared to 81%, a substantial leap from 56.4% in the previous quarter.
This growth was largely fueled by the addition of heavyweight mining pools like SpiderPool and Foundry, whose entry significantly amplified Rootstock’s network power. As a result, Rootstock’s hash rate surged past 740 exahashes per second, eclipsing even Bitcoin’s network hashrate peak recorded in October 2024. This milestone reflects the platform’s growing maturity in the realm of merged mining.
However, the spike in mining activity came amid broader ecosystem challenges. Rootstock’s Bitcoin-denominated TVL fell by 7.2%, while its USD-based TVL dropped more than 20% quarter-over-quarter. This decline aligned with a wider downtrend across the DeFi sector, where Ethereum-based platforms also saw their TVL shrink by 27% during the same period.
Crypto Security Still Stagnant as April Hacks Skyrocket to $357M, Says Hacken CEO
The crypto industry suffered a major blow in April, with nearly $360 million in digital assets lost across 18 separate incidents. This marked a staggering 1,000% increase compared to March’s figures.
The most devastating breach occurred on April 28, when blockchain sleuth ZachXBT flagged a suspicious Bitcoin transaction valued at $330 million. Upon further investigation, the event was confirmed as a social engineering scam that specifically targeted an elderly U.S. citizen.
Despite the massive spike in losses, Hacken CEO Dyma Budorin says the industry remains complacent when it comes to cyber defense. Speaking at the Token2049 conference, Budorin criticized the overreliance on basic protocols such as penetration testing and bug bounty programs, especially in the wake of high-profile attacks such as the $1.4 billion Bybit hack.
“Too many projects stop at pentests and bug bounties and think that’s enough. It’s not,” Budorin emphasized in an interview with the crypto news agency. He urged developers and platforms to adopt holistic, multi-layered security frameworks to keep up with increasingly sophisticated threats.
AI-Powered DApps Gain Ground, Poised to Disrupt Web3 Leaders: DappRadar
As the decentralized application (DApp) landscape evolves, AI-driven platforms are rapidly emerging as serious contenders. While gaming and DeFi remain dominant, artificial intelligence DApps are closing the gap, according to the latest report from blockchain analytics firm DappRadar.
In April, DeFi and gaming applications each accounted for 21% of total DApp activity. Meanwhile, AI-based DApps jumped to 16%, a notable rise from 11% in February, highlighting a sharp upward trend in user adoption.
“AI is gaining momentum across industries, and the DApp ecosystem is no exception,” said DappRadar analyst Sara Gherghelas. “As interest in AI tools grows, these applications are steadily securing their place in Web3.”
Gherghelas further noted that if current growth continues, AI could soon rival DeFi and gaming as a dominant force in the decentralized space, potentially ushering in a new era for DApps.
Bitcoin-Backed Lending is the “Natural Evolution,” Says Xapo Bank CEO
As investor sentiment around Bitcoin matures, more holders are turning to Bitcoin-backed loans as a way to unlock liquidity without selling their assets. Speaking at Token2049, Xapo Bank CEO Seamus Rocca told crypto news agency that Bitcoin users are shifting away from short-term speculation and embracing a long-term mindset.
According to Rocca, this growing confidence stems from wider institutional adoption and the fact that Bitcoin prices remain well above liquidation thresholds, reducing perceived risk for borrowers.
“Using Bitcoin as collateral is the obvious next step,” Rocca noted. “It lets investors meet financial needs without missing out on potential upside.”
He explained that instead of selling during price surges, BTC holders can leverage their crypto to access cash when unexpected expenses arise. This allows them to maintain exposure to Bitcoin while managing short-term liquidity needs. By borrowing against their holdings and paying interest, investors can retain ownership and still benefit from future price appreciation.
DeFi Market Sees Broad Rally as Memecoins and Ether Lead Weekly Gains
The decentralized finance (DeFi) sector wrapped up the week on a strong note, with a majority of the top 100 cryptocurrencies by market cap closing in positive territory, according to data from TradingView.
Topping the charts was Pepe (PEPE), which surged by over 53%, claiming the title of the week’s best performer. Close behind, the Pudgy Penguins (PENGU) token rallied with a 47% weekly gain, fueled by growing community engagement and renewed interest in NFT-related assets.
Meanwhile, Ether (ETH) also made a notable move, climbing 35% to become the third-best gainer of the week. The strong performance followed recent upgrades and broader bullish momentum across the Ethereum ecosystem.
