Cryptocurrency markets rebounded barely after last week's plunge as investor activity eased over the vacations.
According to TradingView data, Bitcoin (BTC) fell to a weekly low of $86,561 on Tuesday before rising back above $88,600 on Friday.
Demand for spot Bitcoin exchange-traded funds (ETFs) remained weak, recording $175 million in outflows on Wednesday, marking the fifth consecutive day of net outflows, in keeping with Farside Investors.
In the broader cryptocurrency space, members of the Aave community criticized its decentralized lending and borrowing protocol for what they called a premature push to push a governance proposal around branded asset ownership.
The proposal, which sought to return control of the protocol's brand assets and mental property to an organization controlled by the DAO, was rejected by a majority on Friday.
BTC/USD, year-to-date chart. Source: Cointelegraph/TradingView
Aave governance vote ends in rejection after community opposition
Aave token holders voted against a controversial governance proposal that aimed to transfer control of the protocol's brand assets to DAO ownership.
On Friday, the Snapshot poll ended with 55.29% “NO” votes and 41.21% abstentions. Only 3.5% of voters supported the proposal.
The proposal asked whether Aave token holders (AAVE) should regain control of Aave's domains, social networks, naming rights and other mental property through an entity under a Decentralized Autonomous Organization (DAO). Proponents described the move as a step towards decentralization and clarifying brand responsibility issues.
The rejection ended a tense governance episode for Aave, certainly one of the biggest decentralized finance (DeFi) lending protocols. It highlighted how timing, escalation and participation can influence governance outcomes in a DAO.
Aave governance vote results. Source: Snapshot
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DEX and HIP-3 launches fuel $200 HYPE case as rivals threaten Hyperliquid’s dominance
Decentralized perpetual exchange Hyperliquid is among the many groundbreaking cryptocurrency projects of 2025, but rivals' lucrative reward systems are vying to lure investors away.
Cantor Fitzgerald predicts that Hyperliquid's HYPE token (HYPE) will rise to $200 by 2035. Hyunsu Jung, CEO of HYPE finance firm Hyperion DeFi, argues that the surge is being fueled by the Hyperliquid Improvement Proposal 3 (HIP-3).
“We see HIP-3 as the important thing driver of Hyperliquid’s next phase of growth and a key driver of Cantor’s proposed valuation framework,” Jung told Cointelegraph.
Perpetual swaps are futures contracts that reflect the worth of an underlying asset but do not need an expiration date. Contracts maintain their price close to identify assets through a funding mechanism that transfers payments between long and short position holders.
According to a report from data aggregator CoinGecko, the market share of perpetual futures DEXs increased from 2.1% in January 2023 to a brand new all-time high of 11.7% in November 2025.
DEX to CEX offender volume ratio. Source: CoinGecko.com
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CZ proposes solution to combat poisoning after investor loses $50 million
Binance co-founder Changpeng Zhao suggested additional security measures to “eliminate” address poisoning, including wallet warnings and blacklists of suspicious accounts.
“All wallets should simply check whether a receiving address is a 'poison address' and block the user. This is a blockchain query,” Zhao wrote in a blog post on Wednesday.
Address poisoning is a type of phishing by which scammers trick their victims into sending cryptocurrencies to illegal wallets by first sending them small transactions. Unsuspecting users often copy and paste the attacker's address from their wallet history.
According to Scam Sniffer, phishing scams cost 6,344 victims over $7.7 million in November. This number is anticipated to rise sharply in December, largely resulting from the lack of $50 million in USDT (USDT) by a single victim on Friday.
“Finally, wallets mustn’t display these spam transactions anywhere. If the worth of the [transaction] is small, just filter it out,” Zhao added.
$50 million address poisoning transaction, wallet 0xcB8. Source: Etherscan.io
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Ethereum’s USDe has lost $8.3 billion since its October crash resulting from “lack of confidence.”
Ethena's synthetic dollar USDe has lost about $8.3 billion in net outflows since the main liquidation on October 10 as confidence in leveraged and artificial collateral structures continues to weaken.
According to a report by 10x Research, October's selloff marked a turning point for the crypto market, turning the bull phase into certainly one of deleveraging. The crash worn out an estimated $1.3 trillion in crypto market value, nearly 30% of the whole capitalization on the time.
Ethena USDe (USDE), which relies on synthetic collateral and hedging mechanisms somewhat than traditional fiat reserves, faces a “severe lack of confidence” under these conditions, the analysts wrote.
According to data from CoinMarketCap, USDe’s market cap was nearly $14.7 billion as of October ninth. In just over two months, that value has fallen to around $6.4 billion.
USDe market cap is falling. Source: CoinMarketCap.
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The Uniswap fee change will take effect because the community vote is about to pass
The highly anticipated fee transition for the Uniswap protocol, dubbed “UNIfication,” has been passed and was expected to go live later this week after reaching the 40 million vote threshold needed to trigger certainly one of the biggest upgrades within the decentralized exchange protocol’s seven-year history.
Uniswap Labs CEO Hayden Adams said on Thursday that a successful vote could be followed by a two-day lock-up period during which the Uniswap v2 and v3 fee transitions could be toggled on the Unichain mainnet, triggering the destruction of more Uniswap tokens (UNI).
The proposal would see 100 million UNI tokens faraway from the Uniswap Foundation coffers, while also introducing a protocol fee discount auction system to extend liquidity providers' returns.
The changes are expected to significantly improve the supply-demand dynamics of the UNI token and make it a more attractive token in the long run.
Change in UNI price within the last week. Source: CoinGecko
News of the UNIfication proposal in early November sparked an almost 40% surge within the UNI token, rising from around $7 to $9.70 on November eleventh.
Uniswap is the biggest decentralized exchange and has processed greater than $4 trillion in trading volume since its launch in November 2018. Data from CoinGecko shows that UNI is the thirty ninth largest token by market cap at $3.8 billion.
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Overview of the DeFi market
Most of the highest 100 cryptocurrencies by market capitalization ended the week within the green, in keeping with data from Cointelegraph Markets Pro and TradingView.
Memecoin Pippin (PIPPIN) rose over 41% as the most important gainer of the week, followed by Canton (CC) token which gained over 25% on the weekly chart.
Total value locked in DeFi. Source: DefiLlama
Thank you for reading our roundup of probably the most influential DeFi developments this week. Join us next Friday for more stories, insights and knowledge on this dynamically evolving field.
