Ethereum co-founder Vitalik Buterin has proposed adding distributed validator technology (DVT) to the blockchain’s staking mechanism, arguing it could simplify the process and the technology backing it.
Buterin pitched “native DVT” in a post to the Ethereum Research forum on Wednesday, which he said would allow Ether (ETH) stakers “to stake without fully relying on one single node.”
Currently, Ethereum validators can only run one node to work to secure the blockchain, which can incur penalties if it goes down.
Using DVT would mean a validator could use their key across several nodes to help the network, reducing the chances of penalties.
“The key is secret-shared across a few nodes, and all signatures are threshold signed,” he explained, adding the node is “guaranteed to work correctly” as long as more than two out of three of them “are honest.”
Vitalik Buterin making a point about distributed validator technology at an event in 2024. Source: University of Waterloo
Buterin said that several protocols use DVT, which he noted “do not do full-on consensus inside each validator, so they offer slightly worse guarantees, but they are quite a bit simpler.”
DVT should be implemented in protocol: Buterin
Buterin said that while DVT solutions require complicated setups, he pitched a “surprisingly simple alternative: we enshrine DVT into the protocol.”
Buterin’s design involved a validator being allowed to create a maximum of 16 keys, or “virtual identities,” that act independently but are considered as one by the blockchain.
Related: Vitalik Buterin makes decentralized social media a 2026 priority
This so-called “group identity,” Buterin said, is treated as taking an action, like making a block, only if a minimum number of the “virtual identities” signed off on it and are rewarded or penalized based on the actions of the majority.
“This design is extremely simple from the perspective of a user,” he said, as DVT staking becomes running copies of a standard client node.
Buterin added that it would also help security-conscious stakers with significant amounts of ETH to stake in a more secure setup instead of relying on a single node. Stakers could more easily stake their own tokens instead of using a provider, increasing the decentralization of staking.
Buterin’s proposal comes as the co-founder has floated other ideas to make Ethereum easier to use, and his latest pitch requires more debate before it can be added to the network.
Magazine: Ethereum’s Fusaka fork explained for dummies — What the hell is PeerDAS?
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy https://cointelegraph.com/editorial-policy
UBS CEO Sergio Ermotti said blockchain will converge with traditional banking.
The comments echo Fidelity CEO Abigail Johnson’s critique of “primitive technology” in finance.
UBS manages over $5 trillion in assets globally.
The head of the world’s largest wealth manager just said blockchain’s convergence with traditional banking is inevitable.
“Blockchain is the future for traditional banking,” said Sergio Ermotti, CEO of UBS, at the World Economic Forum in Davos, Switzerland this week.
“You will see a convergence” between the two, he added.
The statement marks an evolution from Ermotti’s 2018 prediction that blockchain was “almost a must-have” for businesses to remain competitive.
UBS manages over $5 trillion in assets and operates as the world’s largest wealth manager.
Ermotti’s statement echoes similar remarks from Fidelity CEO Abigail Johnson, who in December called the technology underlying traditional finance “really kind of scary.”
Major financial institutions are converging on the same thesis: blockchain will eventually replace the creaking infrastructure of traditional finance.
Johnson called current systems “the most complicated web of basically reconciliation processes built on primitive technology,” while Ermotti sees convergence as inevitable.
The shift comes just as competitive forces and regulatory standards — with private and public sector forces clashing over the Clarity Act in the US — push towards a fusion between blockchain and traditional finance.
An evolving endorsement
Ermotti first endorsed blockchain in a 2018 CNBC interview, calling it a “great way” for companies to become more efficient and reduce costs.
“For the financial services sector it will be as crucial and disruptive, and changing as regulation was in the last 10 years,” Ermotti said at the time.
He predicted blockchain would prove transformative to industries’ cost bases within five to ten years — a timeline that is finally arriving.
Back then, however, UBS drew a clear line in the sand. Blockchain yes, cryptocurrencies no. The bank’s chairman Axel Weber warned retail investors in 2018 about the dangers of investing in Bitcoin and other cryptocurrencies.
Pedro Solimano is DL News’ markets correspondent. Got a tip? Email him atpsolimano@dlnews.com.
The US Senate Agriculture Committee released a Republican draft of the market structure bill, which includes protections for crypto developers, setting it up for a markup next week.
US Senate Agriculture chair John Boozman says the panel’s Republicans have yet to find middle ground with Democrats on several “fundamental policy issues” related to crypto market structure legislation.
Boozman’s comments came as the Senate panel released a Republican draft of the bill on Wednesday, ahead of a scheduled markup on Tuesday, Jan. 27. The draft does not have the support of the committee’s Democrats, he said.
“While differences remain on fundamental policy issues, this bill builds on our bipartisan discussion draft while incorporating input from stakeholders and represents months of work,” said Boozman.
“Although it’s unfortunate that we couldn’t reach an agreement, I am grateful for the collaboration that has made this legislation better. It’s time we move this bill, and I look forward to the markup next week.”
An excerpt of the Republican draft crypto bill shared by John Boozman. Source: Senate Agriculture Committee
The bill aims to create a framework for how crypto markets will be regulated by the Securities and Exchange Commission and the Commodity Futures Trading Commission.
Republican bill includes crypto dev protections
Crypto attorney James Murphy, known online as “MetaLawMan,” explained that the bill “creates a path for DeFi to steer clear of CFTC regulation.”
It provides protection for DeFi software developers and certain service providers from liability under CFTC rules and regulations, he said.
Related: Crypto bill could see delays as Senate focuses on affordability: Report
The bill also omits any regulation of stablecoin yield, as that fits under the jurisdiction of the Banking Committee, Murphy explained.
Bill Hughes, a lawyer at Ethereum software solutions provider Consensys, elaborated:
“In sum, the Digital Commodity Intermediaries Act: Does not regulate self-custody wallets, Does not regulate non-custodial DeFi interfaces, Regulates any platform that takes custody or controls execution, and Focuses squarely on intermediaries, not protocols or users.”
The release of the draft bill comes amid reports of a potential delay to the Senate Banking Committee’s version of the crypto market structure bill to February or March.
Magazine: Indians slam Pudgy Penguins, ex-digital yuan boss’s crypto scandal: Asia Express
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy https://cointelegraph.com/editorial-policy
OKX survey shows Gen Z and Millennials far more trusting of crypto platforms than Baby Boomers. OKX released survey results in the United States on January 21, 2026 showing 40% of Gen Z and 41% of Millennials give crypto platforms high trust scores (7+), versus just 9% of Baby Boomers, while 74% of Boomers rate […]
Crypto markets remain highly sensitive to bond yields, but a renewed spike in rates could quickly put bitcoin and other digital assets back under pressure.
Inflation in the United States could climb above 4% this year, according to a new analysis by Adam Posen of the Peterson Institute and Peter R. Orszag of Lazard.
ARK Invest forecasts Bitcoin could account for roughly 70% of a projected $28 trillion digital-asset market by 2030, driven by ETF adoption and corporate treasuries.
DeFi value shifts from networks to applications, as fee-generating protocols scale faster and begin to rival fintech platforms in revenue efficiency and assets under management.
Tokenized markets move toward the mainstream, with ARK projecting up to $11 trillion in tokenized real-world assets by 2030.
Bitcoin, decentralized finance applications, and tokenized real-world assets are poised to dominate crypto development in 2026, with experts saying regulatory clarity will determine whether innovation translates into mainstream adoption.
ARK Invest’s latest research report, dubbed “Big Ideas 2026,” forecasts the digital asset market could balloon to $28 trillion by 2030, with Bitcoin commanding 70% of that market at roughly $16 trillion.
The projections from Cathie Wood’s investment management firm are “reasonable,” Joni Pirovich, founder and CEO of Crystal aOS, told Decrypt.
“Crypto-native financial platforms are scaling, but they’re not seeking to become global centralized institutions—they’re seeking global acceptance and navigating fragmented compliance requirements,” she said.
The report highlights Bitcoin’s maturation as an institutional asset class, with U.S. ETFs and public companies now holding 12% of total supply, up from 8.7% in early 2025.
The projections show how Bitcoin, DeFi, and tokenized assets are increasingly treated as functional components of global capital markets.
Sudhakar Lakshmanaraja, founder of blockchain education platform Digital South Trust, told Decrypt that “crypto’s future in 2026 will be decided more by regulation than innovation.”
“Bitcoin may dominate as an asset, but DeFi and tokenized markets cannot scale until governments settle custody, compliance, and investor protection rules,” he added.
Tokenized assets tripled to $19 billion in 2025 and could reach $11 trillion by 2030 (about 1.38% of global financial assets), anchored by BlackRock’s $1.7B BUIDL fund (20% of tokenized Treasuries) and tokenized gold from Tether and Paxos, according to the report.
Decentralized finance applications, meanwhile, generated a record $3.8 billion in revenue in 2025, with January alone accounting for one-fifth of the total, as ultra-lean platforms like Hyperliquid topped $800 million in annual revenue with fewer than 15 employees, and 70 protocols now exceed $1 million in monthly recurring revenue, the report found.
“In 2026, the convergence of mature regulatory frameworks and interoperable institutional networks will allow sovereign digital securities to redefine global capital formation,” Wook Lee, Founder and CEO of EDENA Capital Partners, told Decrypt, stressing the transformation underway.
Tokenized markets will be the “primary driver of real-world economic activity across the digital asset ecosystem,” Lee added.
The report also noted Bitcoin’s declining volatility, with average drawdowns from all-time highs reaching their shallowest levels across all measured time horizons in 2025, and Bitcoin’s risk-adjusted returns outperforming Ethereum and Solana throughout most of the year.
The world’s largest crypto is trading just below $90,000, up 0.5% in the last 24 hours but down more than 6% on the week, according to CoinGecko data.
The crypto rebounded above the $90,000 level on Wednesday after President Donald Trump said he would not impose tariffs on European countries following a meeting with NATO’s secretary general over the fate of Greenland, though prices have since retreated amid ongoing geopolitical uncertainty.
ARK’s report also examined AI infrastructure, autonomous vehicles, robotics, and distributed energy alongside its crypto analysis.
In the prediction market Myriad, users are currently leaning toward crypto, not AI, as the likelier bubble to burst first, with traders assigning a nearly 55% chance.
(Disclaimer: Myriad is owned by Decrypt’s parent company, Dastan)
Daily Debrief Newsletter
Start every day with the top news stories right now, plus original features, a podcast, videos and more.
The decentralized physical infrastructure sector faces a reality check as investors debate if it can deliver beyond the hype.
Venture investors are increasingly locking horns over DePIN — short for decentralized physical infrastructure networks — as some argue the model is running out of steam.
What began as an ambitious attempt to fund decentralized infrastructure with tokenomics — and as of just last June was projected to grow into a $3.5 trillion market by 2028 — is now under closer scrutiny. The conversation has shifted away from vision and toward fundamentals, such as capital costs, cash flow, and who actually bears the risk when things go wrong.
‘DePIN Is Dying’
Meltem Demirors, founding partner at Crucible Capital, didn’t sugarcoat the issue, writing on X last Monday, “DePIN is dying and i don’t see it coming back.” Demirors argued that DePIN’s token models “deny the physics of finance,” referring to the massive surge in centralized, AI-driven infrastructure spending as evidence that markets are choosing efficiency over ideology.
However, Crucible’s founder and general partner went on to argue that crypto has an opportunity to be integrated in the shift from public to private infrastructure financing, adding that “the opportunity for crypto is not bottoms up innovation but top down embedded finance.”
David Choi, co-founder and CEO of the firm behind USDai, a yield-bearing synthetic dollar backed by AI infrastructure, weighed in on the debate, suggesting in an X post that DePIN’s core challenge is financial rather than technical.
Drawing on his firm’s work evaluating dozens types of physical equipment that underpin DePIN networks — such as GPUs, antennas, and networking hardware — Choi said many models start to break down once the cost of that hardware collides with the cost of financing it.
As projects try to scale by relying on cheaper devices, data quality often deteriorates and “without unique data, you cant really produce superior networks,” Choi noted.
That tradeoff, Choi said, creates a counterproductive cycle. “As the more expensive a hardware got, you needed to have a higher pay out to justify a higher cost threshold,” Choi wrote, pushing teams to use lower-quality gear just to make expansion affordable.
Structural Skepticism
But skeptics insist that the flaws are structural. Dan Elitzer, a partner at crypto investment firm Nascent, said in esponse to Choi that his firm avoided the sector altogether, viewing DePIN as “almost entirely thinly veiled shitcoin ICOs” that result in “less efficient infrastructure deployment.”
As Elitzer explained, Nascent ultimately backed USDai not for DePIN exposure, but because its founders “won’t stop until they build something massive that changes capital markets.”
Coordination vs Control
Still, not everyone is ready to call it dead. Sami Kassab, managing partner at Unsupervised Capital, warned in a reply to Demirors’ X post that dismissing DePIN entirely implies “crypto isn’t a coordination technology,” a premise he rejects. Demirors quickly pushed back in a follow-up, replying that “a coordination technology where 50% or more of the share is controlled by one entity is just a dictatorship.”
While venture capital leaders remain divided on how far DePIN can go, the past year has been unforgiving for the sector, to say the least.
Crypto sectors by average return in 2025. Source: Delphi Digital
Data from Delphi Digital shows that DePIN and AI-related tokens lost more than 80% on average in 2025, making the category the fifth-worst performer overall and trailing only modular projects, gaming, agents, and frameworks.
But it’s not like all DePIN projects are faring badly. Aethir, a decentralized cloud computing network that pools GPUs, pulled in over $127 million in revenue in 2025, just one year after its debut.
Helium, which was also launched in 2024 and builds real-world wireless networks, also generated over $18 million in annualized network fees in 2025, per DefiLlama data.
Road to Fundamentals
Some still see the ongoing chatter less as a death spiral and more as a necessary correction. Naman Kabra, co-founder and CEO of NodeOps, an AI-powered orchestration layer for DePIN, told The Defiant that the sector is moving from hype toward fundamentals.
“The DePIN sector is maturing,” Kabra said, noting that “initial excitement moved faster than fundamentals, and we’re now seeing the natural evolution from hype to substance.”
In Kabra’s view, the projects gaining traction today are those that built products people actually wanted and found revenue before obsessing over token mechanics.
“The companies that thrive will be chosen because the service works well, not because of blockchain architecture. This transition from novelty to utility represents progress,” Kabra concluded.
Lex Sokolin, a partner at Generative Ventures, sees the whole debate as a distribution problem, writing in an X post in response to Demirors that unlike crypto, big tech can allocate capital “efficiently across things they own, including distribution.”
But DePIN finances only part of the chain and can’t capture demand directly, leaving projects stuck between ideology and economics until they secure users, Sokolin added.
Bitcoin is attempting to find support near the $88,000 level, signaling a positive sentiment.
Buyers will have to defend the support levels in select major altcoins, or the recovery may fizzle out.
Bitcoin (BTC) is attempting to find support near $88,000, but a handful of US and global macroeconomic factors are creating headwinds for the entire crypto market. As a result, the buyers are taking a cautious approach and possibly waiting to see how a reignited trade war between the United States and the European Union will impact markets.
The big question on traders’ minds is how low BTC price may fall. Veteran trader Peter Brandt said in a post on X that BTC may plunge to $58,000 to $62,000, but he added that he is wrong 50% of the time and would not be ashamed if the price did not go there.
Crypto market data daily view. Source: TradingView
Fundstrat head of research Tom Lee also cautioned investors to be ready for a “painful decline” across the stock and crypto markets in 2026. However, a minor positive is that Lee expects a strong finish to the year, with BTC possibly making a new all-time high.
Could buyers arrest the decline in BTC and the major altcoins? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin price prediction
Buyers tried to start a recovery in BTC on Wednesday, but the bears held their ground, indicating selling on rallies.
The 20-day exponential moving average (EMA) ($91,786) is sloping down, and the relative strength index (RSI) is in negative territory, indicating that bears have a slight edge. If the $86,500 support gives way, the BTC/USDT pair may decline to $84,000.
The moving averages are expected to behave as a resistance during any relief rallies, but if the bulls prevail, the Bitcoin price may rally to $94,789 and then to $97,924. A close above $97,924 signals a potential trend change. The pair may then soar to $100,000 and subsequently to $107,500.
Ether price prediction
Ether (ETH) nosedived below the moving averages on Tuesday and reached the support line of the symmetrical triangle pattern.
The bulls are attempting to defend the support line, but the weak bounce suggests that the bears have kept up the pressure. If the price breaks below the support line, the ETH/USDT pair may decline to $2,623.
Time is running out for the bulls. They will have to swiftly push the Ether price above the moving averages to get back in the game. The upside momentum is likely to pick up after buyers achieve a close above the resistance line.
BNB price prediction
BNB’s (BNB) pullback dipped below the 50-day simple moving average (SMA) ($885) on Wednesday, indicating that the market has rejected the breakout above $928.
The BNB price may slide to the uptrend line, where the bulls are expected to step in. The rebound off the uptrend line may face selling at the moving averages. If the price turns down from the moving averages, the BNB/USDT pair may sink below the uptrend line. The pair may then test the $790 support.
Buyers will have to thrust the price above the $959 level to seize control. If they manage to do that, the pair may skyrocket to $1,087.
XRP price prediction
XRP (XRP) remains pinned below the moving averages, indicating that the bears continue to exert pressure.
The bears will attempt to pull the XRP price to $1.77 and then to the crucial support at $1.61. Buyers are expected to fiercely defend the zone between the $1.61 level and the support line of the descending channel pattern. If the price turns up sharply from the support zone, it suggests that the pair may remain inside the channel for a while longer.
Buyers will have to push the price above the downtrend line to gain the upper hand. The pair may then rally toward $2.70.
Solana price prediction
Solana’s (SOL) break below the 50-day SMA ($132) suggests that the price may remain inside the $117 to $147 range for a few more days.
The $117 level is the crucial support to watch out for on the downside, as a break below it may signal the resumption of the downtrend. The SOL/USDT pair may then plummet toward $95.
Contrarily, a break and close above $147 signals that the bulls have overpowered the bears. That suggests a potential trend change, propelling the Solana price toward $172 and then $189.
Dogecoin price prediction
Dogecoin (DOGE) has reached the $0.12 support, which is expected to attract solid buying by the bulls.
The relief rally is likely to face selling at the 20-day EMA ($0.13). If the price turns down sharply from the 20-day EMA, the risk of a break below the $0.12 support increases. The DOGE/USDT pair may then retest the Oct. 10 low of $0.10.
Contrary to this assumption, a break above the moving averages suggests that the Dogecoin price may remain inside the $0.12 to $0.16 range for some more time. The advantage will tilt in favor of the bulls on a close above the $0.16 resistance.
Cardano price prediction
Cardano (ADA) is attempting to take support near the $0.33 level, but the recovery is expected to face selling in the zone between the moving averages and the downtrend line.
If the Cardano price turns down sharply from the overhead resistance, the possibility of a break below the $0.33 level increases. The ADA/USDT pair may then slump to the support line of the descending channel pattern. Buyers are expected to fiercely defend the support line, which is close to the Oct. 10 low of $0.27.
This negative view will be invalidated in the near term if the price turns up and breaks above the downtrend line. The pair may then ascend to the breakdown level of $0.50.
Related: Can Bitcoin regain $90K? Bulls at risk as long-term holders ramp up selling
Bitcoin Cash price prediction
Bitcoin Cash’s (BCH) pullback is finding support at the $563 level, indicating demand at lower levels.
The recovery is expected to face selling at the 20-day EMA ($602). If the price turns down sharply from the 20-day EMA, it increases the risk of a break below the $563 support. The BCH/USDT pair may then descend to $518.
Alternatively, a break above the moving averages suggests that the bulls are attempting a comeback. The Bitcoin Cash price may climb to the $631 level, which is expected to pose a strong challenge.
Monero price prediction
Monero’s (XMR) bounce off the 20-day EMA ($541) on Monday fizzled out at $650, indicating selling on rallies.
The Monero price turned down sharply on Tuesday and closed below the 20-day EMA. That suggests the XMR/USDT pair may have topped out in the near term. The pair may complete a 100% retracement and plunge to $417.
Buyers have an uphill task ahead of them. The relief rally is expected to face selling at the 20-day EMA and then at the $650 level. A close above the $650 level signals that the bulls are back in the game.
Chainlink price prediction
Chainlink (LINK) slipped below the moving averages on Monday, signaling that the range-bound action may continue for some more time.
The flattish moving averages and the RSI near the 40 level do not give a clear advantage either to the bulls or the bears. A break below the $11.61 to $10.94 support zone will tilt the advantage in favor of the bears. The LINK/USDT pair may then drop toward the Oct. 10 low of $7.90.
Buyers will have to drive the Chainlink price above the $14.98 level to signal strength. The pair may then rally toward $17.66.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
