Gate Ventures: Crypto Markets Stay Volatile as Institutional and Infrastructure Dynamics Shift
According to Gate Ventures’ latest weekly crypto report, the cryptocurrency market continued its volatile trajectory over the past week, with Bitcoin (BTC) falling 2.7% and Ethereum (ETH) declining 3.4%. After weeks of consecutive inflows, funding dynamics shifted notably as BTC spot ETFs recorded net outflows of approximately $296 million, while ETH spot ETFs saw outflows of around $207 million. Overall, the total market capitalization of crypto assets experienced a slight contraction, and market sentiment remained firmly in the “extreme fear” zone, reflecting persistent investor caution amid macroeconomic headwinds .
The macro environment played a significant role in shaping market behavior. Robust U.S. manufacturing data, elevated interest rate expectations, and energy-related uncertainties stemming from geopolitical tensions created a temporary contraction in market risk appetite. The S&P Global US Manufacturing PMI climbed to a two-month high of 52.4, exceeding expectations and reinforcing the “higher-for-longer” interest rate narrative. This economic resilience, coupled with ongoing geopolitical risks surrounding the Strait of Hormuz, pushed the 10-year Treasury yield to 4.44%, its highest level since mid-2025, while the DXY dollar index rose to 100.193 as investors sought safe-haven assets .
Despite the broader market weakness, select sectors showed resilience. TAO emerged as a standout performer, surging 20.8% during the week. The sharp rally was primarily driven by subnet SN3’s successful training of Covenant-72B, a 72-billion-parameter large language model developed through a distributed network of over 70 independent nodes. The achievement, accomplished without reliance on centralized data centers, was further bolstered by positive remarks from Nvidia CEO Jensen Huang, who compared Bittensor to a “modern-day Folding@home.” This highlights the growing convergence between artificial intelligence and decentralized infrastructure, a narrative that continues to attract investor attention .
Institutional adoption of digital assets continued to deepen across multiple fronts. Walmart-backed fintech platform OnePay expanded its crypto offerings beyond Bitcoin and Ethereum, adding more than a dozen new tokens including Solana, Cardano, Bitcoin Cash, PAX Gold, SUI, Polygon, and Arbitrum. The move reflects Walmart’s broader superapp strategy, positioning OnePay as a comprehensive consumer financial platform for everyday transactions within its ecosystem. The company emphasized that it prioritizes assets with strong customer demand, liquidity, regulatory clarity, and long-term utility, rather than simply chasing new listings .
European banking giant BNP Paribas expanded its digital asset distribution by adding six Bitcoin and Ether-linked exchange-traded notes (ETNs) for retail clients in France. The products will be available to individual investors, entrepreneurs, private banking clients, and Hello bank! users, with potential expansion to wealth management clients outside France. This development reflects the continued growth of crypto ETN adoption across Europe and reinforces BNP Paribas’ broader digital asset strategy, which spans tokenized bonds, tokenized funds, and institutional blockchain infrastructure such as the Canton Network .
In a significant move toward transparency, Tether has reportedly hired KPMG to conduct its first full independent audit of USDT’s financial statements, with PwC assisting on internal systems preparation. This marks a major step beyond the reserve attestations the company has relied on in recent years. The engagement comes as Tether looks to strengthen credibility ahead of a potential U.S. expansion under the new federal stablecoin framework, as the company also reportedly explores a large equity raise .
The prediction market sector received a major vote of confidence as Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, invested $600 million in Polymarket. This investment is part of ICE’s previously announced plan to commit up to $2 billion to the company. The move signals that major exchange operators increasingly view prediction markets as a meaningful new growth vertical, with potential to expand retail participation, boost trading volumes, and diversify revenue beyond traditional futures and options markets .
The venture capital landscape saw a total of 15 investment and financing transactions completed over the past week, with disclosed funding totaling approximately $732 million. Infrastructure projects dominated the funding landscape, accounting for about 67% of total deals, indicating that capital continues to concentrate on foundational capabilities and transaction structures. Notable deals included Polymarket’s $600 million raise, Tazapay’s $36 million Series B extension led by Circle Ventures, and Kairos Labs’ $2.4 million seed round to build onchain interest rate swap protocols .
As the crypto market navigates a complex macro environment characterized by geopolitical tensions, shifting rate expectations, and evolving institutional dynamics, the coming week will focus on key economic indicators including the U.S. March non-farm payrolls report, Eurozone inflation data, and the ISM Manufacturing PMI. These factors, combined with ongoing developments in the Middle East and new tariff investigations, will likely dictate whether the Federal Reserve maintains its current interest rate trajectory amid a complex global polycrisis .
Sources: Gate Ventures, SoSoValue, TradingView, CoinTelegraph, Reuters, Tech in Asia.
