According to @KookCapitalLLC, the decentralized finance (DeFi) sector is experiencing a significant transformation, with total value locked (TVL) in top lending protocols like Aave and Morpho surging 60% over the past year to nearly $60 billion. A report from analytics firm Artemis and Vaults.fyi attributes this growth to increasing institutional participation and the integration of DeFi as a backend layer for user-facing apps, a trend known as the "DeFi mullet". For instance, Coinbase's integration with Morpho has originated over $300 million in Bitcoin (BTC) backed loans. The report also highlights the rise of on-chain asset managers, whose capital under management has quadrupled from $1 billion to over $4 billion since January, and the growing use of tokenized real-world assets (RWAs). In specific market events, the Polyhedra protocol's ZKJ token plummeted over 80% following what the team described as a coordinated liquidity attack on PancakeSwap. The Polyhedra team responded by injecting approximately $30 million in USDT, USDC, and BNB to stabilize liquidity and announced an upcoming buyback plan. Other significant developments include JPMorgan piloting a permissioned USD deposit token (JPMD) on the Base network and the U.S. Senate passing a stablecoin bill with strong bipartisan support, signaling potential shifts in the regulatory landscape.

According to @jessepollak, the cryptocurrency market is seeing significant bullish signals from institutional and regulatory developments. A key catalyst is the Federal Housing Finance Agency (FHFA) ordering Fannie Mae and Freddie Mac to prepare to count cryptocurrency as a valid asset for mortgage applications, a move that could deeply integrate crypto into the U.S. housing market. This is complemented by 12 consecutive days of net inflows into spot Bitcoin (BTC) ETFs, totaling $548 million, indicating strong institutional demand. On the regulatory front, the U.S. SEC is reportedly working on an 'innovation exemption' to accommodate DeFi platforms. In ecosystem news, Polygon (MATIC) is undergoing a major strategic shift, with co-founder Sandeep Nailwal taking over as CEO of the Polygon Foundation to focus on the AggLayer protocol and retire the zkEVM network. Furthermore, Ant Group's plan to seek stablecoin licenses in Hong Kong and Singapore and Plume's mainnet launch for real-world assets (RWA) underscore the growing integration of crypto with traditional finance.