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Today — 25 January 2026Cryptocurrency

a16z-Backed Crypto Custody Startup to Shut Down, Return Investor Funds

25 January 2026 at 20:33

Entropy, a decentralized crypto custody startup backed by Andreessen Horowitz (a16z), is winding down and plans to return remaining capital to investors, according to founder and chief executive Tux Pacific.

Pacific wrote on X over the weekend, “I am winding-up Entropy.” They added, “After four years, several pivots, and two rounds of layoffs, I’ve decided to wind-up Entropy and return capital to our investors.”

Crypto Automation Bet Fell Short After Investor Feedback

The shutdown follows a late-stage push in 2025 to reposition the company around a crypto automations platform, which Pacific described as “basically n8n/zapier/etc for crypto,” with automated signing via threshold cryptography, secure computation using trusted execution environments, and “deep AI integrations.”

I am winding-up Entropy.

After four years, several pivots, and two rounds of layoffs, I’ve decided to wind-up Entropy and return capital to our investors.

For the latter half of 2025, the Entropy team was hard at work on a crypto automations platform (basically n8n/zapier/etc…

— tux pacific (@__tux) January 24, 2026

That product direction still failed to clear a venture-style growth bar. “After an initial feedback request revealed that the business model wasn’t venture scale, I was left with the choice to find a creative way forward or pivot once more,” Pacific wrote.

Entropy first drew attention in 2022 when it raised $25M in a seed round led by a16z crypto, with participation including Dragonfly Capital, Coinbase Ventures, Robot Ventures, Ethereal Ventures, Variant and Inflection. The company had earlier raised a $1.95M pre-seed round.

Founder Looks Beyond Digital Assets Toward Pharmaceuticals Research

At launch, Entropy pitched itself as a decentralized alternative to custody providers such as Fireblocks and Coinbase, leaning on cryptographic approaches like multi-party computation to let users control how funds could move, including rule-based constraints.

Pacific also thanked a16z crypto and Guy Wuollet for helping steer the wind-down, calling their guidance “invaluable.”

The closure lands in a tougher funding climate for early-stage crypto startups. Crypto venture deal count fell about 60% year-on-year in 2025, dropping to roughly 1,200 transactions from more than 2,900 in 2024.

Next, Pacific said they plan to step back before deciding what comes after Entropy. “My time in crypto might be coming to an end, as I feel myself drawn specifically into pharmaceuticals,” they wrote, adding they want to work on hormone delivery and validate research on new estradiol drug formulations.

The post a16z-Backed Crypto Custody Startup to Shut Down, Return Investor Funds appeared first on Cryptonews.

Altcoins Don’t Move Slowly: 6-Week Window Can Rewrite Years Of Price Action

25 January 2026 at 19:00

Crypto traders often assume that meaningful gains need long timelines to take place, and they often give up during the wait and silence. However, crypto has a habit of shattering that belief without warning. History shows that when conditions line up, altcoins do not grind higher over years. They release and erase multiple years of drawdowns in a matter of weeks. 

That memory was highlighted by a crypto commentator known as Waterman on the social media platform X, who noted a familiar seasonal window between February and late April to early May for an altcoin explosion.

Speed Matters More Than Time

The most notable example of an altcoin rally season was in 2021, when the entire altcoin market went on a rally to new all-time highs, many of which are still unbroken for some cryptocurrencies. 

The 2021 cycle delivered some of the clearest reminders of just how fast capital can rotate once momentum takes hold. Solana moved from roughly $20 to $200 in about 50 days, a clean tenfold run. Although Solana has since broken above this peak to register a new all-time high of $293 in January 2025, this was still Solana’s most explosive rally to date.

Dogecoin followed an even sharper trajectory, climbing from $0.07 to a peak of $0.73 in under a month due to speculative interest that flowed into other memecoins like Shiba Inu. Unlike Solana, Dogecoin is yet to reclaim or surpass this peak price.

Avalanche went further, rallying from around $3 to $60 in less than 40 days, a twentyfold expansion that unfolded faster than most long-term projections ever anticipate. None of these moves required years of development or prolonged accumulation.

A Timeframe To Watch Closely

Notably, February through late April or early May has more often than not been the period where altcoin performance increases the most. If that pattern repeats, the coming weeks may matter far more than the years that came before them.

At the time of writing, the notion of an altcoin season is still impeded by strong Bitcoin dominance. Much of that comes down to how the entire crypto industry ecosystem has changed massively since 2021, especially after the launch of crypto-based ETFs. That steady demand has kept capital inflows concentrated around Bitcoin and slowed the usual rotation into altcoins.

Meme coins like Dogecoin and Shiba Inu have struggled to keep up in terms of price action, even with the launch of Dogecoin ETFs. Although the ETF has boosted visibility, it has not yet resulted into sustained upside.

At the same time, investors have become more selective, favoring cryptocurrencies tied to clearer utility. As a result, many crypto communities have been working to create utility for their meme coins.

Nonetheless, as noted by Waterman, you only need about four to six weeks for an altcoin to wipe out three to four years of suffering. You don’t need one to two years for altcoins to make massive gains.

Featured image from YouHodler, chart from TradingView

XRP Enters Phase 4 In Long-Term Chart Structure: Road To $21.5 Now Open

25 January 2026 at 15:00

Technical analysis of XRP’s price action on the 3-week candlestick timeframe chart shows that the cryptocurrency is about to play out a road to the double-digit threshold based on its long-term structure. 

The analysis, which was shared on the social media platform X alongside a multiyear chart, points to XRP trading in what is labeled Phase 4. At the center of this setup is a clear technical target of a break above the previous all-time high and a run to at least $21.5

XRP Price Action In Phases

Technical analysis of XRP price action shows that the cryptocurrency has been trading in a series of four phases for more than a decade. One full sequence of four phases unfolded between mid-2013 and mid-2017 as the foundation for XRP’s first rally to price peaks. Since then, a second set of four phases has been developing and following a similar pattern. 

XRP transitioned into a new phase 1 and phase 2 sequence that led to a 2018 peak for phase 1 and then a pullback for phase 2 between 2018 and 2020. This was followed by an unusually long p3 that stretched from 2019 to mid-2024, visible on the chart as a broad, multi-year consolidation with converging trendlines of lower highs and higher lows. During this time, XRP’s price action was trapped inside the compression structure, just like the behavior seen during phase 3 of the first cycle.

XRP Price Chart. Source: @amonyx On X

Phase 4 Returns: XRP To Double Digits

According to the technical analysis, phase 4 began in 2025, when XRP finally broke above the compression range in mid-2024. This breakout was the same structural transition seen in mid-2017, when XRP exited consolidation and entered expansion. 

Phase 4 has already been in progress for several months and includes the period when XRP rallied to new all-time highs in mid-2025, eventually topping out at $3.65 in July. Since that peak, however, XRP’s price action has been playing out a corrective downward trend and is down by roughly 48% at the time of writing. 

Despite the ongoing correction, the projection is that XRP is still in phase 4 and is going to break into new all-time highs soon. This shows that phase 4 could unfold over an extended period and not with a single impulse move. The current all-time high of $3.65 is the first major technical hurdle, and a break above it will serve as confirmation that XRP is back into price discovery.

Based on this technical analysis, past expansion ratios from the previous cycle are applied and a 6.618 Fibonacci extension is measured from the phase 3 support low. This points to a projected price level near $21.5. At the time of writing, XRP is trading at $1.89, meaning a move to that level would represent an increase of roughly 1,040% from current prices.

Featured image from Pexels, chart from TradingView

Colombia Pension Giant Takes First Step Into Bitcoin – Details

25 January 2026 at 15:00

AFP Protección, Colombia’s second-largest private pension manager, is preparing a new product that will give some savers a way to gain exposure to Bitcoin. Reports say the move will be limited, targeted and tied to advisory checks rather than open to every account holder.

Bitcoin As An Option For Qualified Savers

Reports note the fund will be offered only to investors who meet a risk profile and pass a tailored advisory process. That means access won’t be automatic; it will be conditional on an assessment meant to match a person’s tolerance with a small, optional slice of crypto.

The product is designed for long-term allocation and not for quick trading or speculation, according to market coverage. AFP Protección’s executives emphasized that core pension portfolios will remain focused on traditional assets such as bonds and equities, and that any Bitcoin exposure would be a narrow, complementary allocation.

💥 En primicia, Valora Analitik conoció que Protección se prepara para lanzar desde Colombia un fondo con exposición a Bitcoin. El producto no estará enfocado en la especulación de corto plazo, sino en ampliar las opciones de diversificación con una gestión integral de riesgos y… pic.twitter.com/nAO8mbsTLi

— Valora Analitik (@ValoraAnalitik) January 22, 2026

The language used by the firm frames the initiative as diversification rather than a wholesale shift of retirement capital. Juan David Correa, who serves as president of Protección SA, confirmed the plan in an interview with local media outlet Valora Analitik.

Size And Reach Of The Manager

AFP Protección manages assets for millions of clients and has a sizable balance sheet. Reports put its assets under management at roughly 220 trillion Colombian pesos — roughly US$55 billion — and note that the firm serves a broad base of workers through mandatory pensions, voluntary saving plans and severance accounts. The sheer scale of the manager helps explain why even a small, optional product gets wide attention.

Regulation And Reporting

Reports also point to a tightening regulatory backdrop in Colombia. Tax and customs authorities have rolled out new crypto reporting rules that align with international reporting standards.

Those rules are likely to affect how crypto products are structured and how returns or transfers are reported for tax purposes. The change in rules is one reason AFP Protección has framed its product as measured and compliant.

How This Fits A Regional Trend

Across Latin America, some institutional players have been experimenting with limited crypto exposure for years. Colombia’s move follows earlier steps by one or two other local managers and fits a regional pattern where established firms test small, controlled offerings before widening access. The step will be watched closely by investors and regulators overseas.

Reports say potential participants should expect thorough suitability checks, clear disclosures and limits on how much of a retirement portfolio can sit in the new vehicle.

Featured image from Pexels, chart from TradingView

Bitcoin ETFs post historic $1.33B weekly outflow; Ethereum follows with $611M

25 January 2026 at 13:45
Bitcoin ETFs recorded $1.33 billion in net outflows during the week ending January 23 and had the second-largest weekly redemption on record. The exodus reversed the previous week’s $1.42 billion inflow, as institutional investors reduced crypto exposure amid market volatility.…

Tether tops crypto protocol revenue rankings in 2025 as stablecoins dominate

25 January 2026 at 12:45
Tether led crypto protocol revenue in 2025 with approximately $5.2 billion, accounting for 41.9% of total revenue across 168 revenue-generating protocols, according to CoinGecko Research. Stablecoin issuers dominated the rankings, with just four entities generating 65.7% or roughly $8.3 billion…

Is Bitcoin Supercycle Truly On The Horizon? Analyst Predicts $31K Bottom In 2026

25 January 2026 at 13:00

The calls of a potential Bitcoin supercycle in 2026 intensified over the past week after former Binance CEO Changpeng ‘CZ’ Zhao — yet another prominent voice in crypto — laid out his predictions for the new year. However, a popular analyst on the social media platform X has released an opposing view, predicting a deep bottom for the BTC price this year.

BTC Price At Risk Of Further 65% Decline

In a January 25th post on the X platform, prominent crypto trader Ali Martinez said, in a sarcastic tone, that “the super cycle is super cycling.” In what seemed like a response to the buzz around CZ’s Bitcoin supercycle projection, the market pundit tempered the expectations with a $31,000 price bottom call for the premier cryptocurrency in 2026.

This bearish prediction is based on the appearance of price fractals on the BTC chart. For context, fractals are repeating patterns in price charts that can help map and project potential price movements for a particular cryptocurrency (Bitcoin, in this scenario).

Bitcoin

As observed in the chart above, the price of BTC is currently following a similar movement pattern as in 2022. The premier cryptocurrency, after initially setting a then all-time high around $67,000 in early 2021, witnessed a nearly 55% correction to just above the $30,000 level by mid-July.

While the price of Bitcoin recovered and went back to set a record high of above $69,000 by the end of 2021, the market leader spent the majority of the following year in a downward trend. Exacerbated by the various bearish events of 2022, BTC ended the year at a low of around $15,500.

Martinez believes that the Bitcoin price is undergoing a similar movement pattern, having experienced an over 32% decline before climbing to the current all-time high of $126,080. The market pundit postulates that the premier cryptocurrency is currently witnessing the extended decline that saw its price reach $15,500 in 2022.

However, it is worth mentioning that the target this time around lies at $31,800, nearly 65% drop from the current price point. Hence, if the historical patterns highlighted by Martinez are to go by, there seems to be a higher likelihood of the Bitcoin price embarking on an extended downward trend rather than a supercycle.

Bitcoin Price At A Glance

As of this writing, the price of BTC stands at around $88,528, reflecting an over 1% decline in the past 24 hours.

Bitcoin

Bitcoin Finds A Real-World Use Case In Las Vegas Stores

25 January 2026 at 13:00

Small shops and some bigger chains in Las Vegas are now taking Bitcoin for everyday buys. People scan a QR code, pay from a phone, and the merchant gets paid. According to local reports, owners are trying this out to cut the cost of credit card processing and to attract customers who prefer crypto.

Merchants Cut Costs With Bitcoin

Reports say the move is largely about fees. Credit card processing often takes away 2.5–3.5% of a sale. For many small operators, that is painful. Payment tools that accept Bitcoin — often routed over the Lightning Network or through services that can convert crypto to cash — have lowered that burden for merchants.

According to FOX5, more businesses across Las Vegas are now accepting Bitcoin payments, from chains like Steak ’n Shake to small shops and medical practices. Merchants said Bitcoin helps attract new customers and cut costs, while Square has enabled about 4 million U.S. merchants…

— Wu Blockchain (@WuBlockchain) January 24, 2026

Square’s program, which lets millions of US merchants enable Bitcoin checkout with no processing fee through 2026, helped speed up adoption in the area.

Stores Report Real Transactions

Business owners are reporting real use, not just experiments. Juice stands and cafes have processed payments. Some larger outlets are listed on public payment maps so customers can find them.

This has meant more foot traffic from people who travel with crypto or who prefer to keep their cards for other uses. Reports note both new customers and savings on fees as clear benefits.

Lightning Network Speeds Up Payments

The Lightning Network is being used to make payments faster and cheaper at the cash register. It moves small Bitcoin payments quickly without the long wait a base-layer transfer can cause.

Merchants scan a code or show one on a screen. The payment is then sent from the buyer’s wallet and settled almost instantly. This technical fix has made in-person Bitcoin payments workable for the first time at many spots.

How Owners See It

Owners are balancing savings against new risks. Some keep crypto for a short time, then sell it for cash. Others leave part of their receipts in Bitcoin. Chargebacks, a problem with cards, are reduced when crypto is used.

A few places say small boosts in sales followed their switch to crypto, yet long-term patterns are still being watched. Reports have disclosed these mixed outcomes as part of a slow but clear shift.

Customers Find New Ways To Pay

Shoppers are adapting. Tourists who carry crypto find these spots useful. Locals who are curious try the method at least once. Payment apps and merchant directories make the process easier for everyone.

For those who like simple steps, scanning a QR code and approving a payment on a phone works fine. For others it is a novelty that might stick.

Featured image from Unsplash, chart from TradingView

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Las Vegas Valley businesses are accepting Bitcoin as payment as the cryptocurrency continues to grow in popularity.For more Local News from KVVU: https://www...

XRP Charts Flash Familiar Signal As Analyst Calls For $11, Then $70

25 January 2026 at 11:00

A growing number of chart watchers are pointing to a long stretch of sideways trading for XRP and saying this setup has come before big rallies. According to a widely followed analyst known as CryptoBull, the current price action echoes earlier runs in the token’s history.

The signal is simple: long quiet periods sometimes lead to sharp moves when buying pressure returns. That does not mean a jump is guaranteed. Markets can stay quiet for a long time, and timing is uncertain.

Pattern Mirrors Prior Cycles

Based on reports, XRP’s weekly structure shows a stretch of range trading after strong breakouts from earlier years. The comparison reaches back several cycles. In past examples, long ranges eventually gave way to impulsive runs that pushed the price far above prior highs.

The next impulse will take #XRP to $11 and the last wave to $70. The price pattern is copying the previous bullrun, only difference is time, which makes sense, as we need longer accumulation for higher prices. pic.twitter.com/WJxzYDVRKT

— CryptoBull (@CryptoBull2020) January 23, 2026

CryptoBull argues the present consolidation has lasted longer than previous ones, which, he says, could compress price action and build fuel for a larger expansion when momentum flips. The idea rests on history repeating itself in broad strokes, not in exact moves.

Longer Accumulation Could Support Bigger Targets

Some analysts see a sixfold move as plausible if the same pattern plays out. That kind of rise would put XRP near $11, a figure being discussed by multiple commentators. There is also talk of a further, final wave lifting the token much higher in a later stage — talk that reaches $70 in extreme scenarios.

A bottom test—where price revisits support to confirm strength before a new push—has appeared in a few past cycles and is being watched closely now.

The presence of such tests can either validate a base or warn that the range has more work to do. Timelines are vague, and a long accumulation period can stretch for years before any decisive breakout.

RLUSD Rumors Fuel Speculative Calls

Reports that BlackRock may use Ripple’s RLUSD stablecoin have added fuel to the fire. News like that has pushed sentiment upward and sparked fresh technical calls, with some forecasts ranging from $6 to $14 in near- to mid-term scenarios.

Other voices go far beyond, naming targets that would imply market caps so large they would be hard to reconcile with today’s market size.

These more extreme numbers should be treated with caution, because they assume near-perfect conditions and massive capital flows that may never arrive. Still, adoption whispers can tilt sentiment and speed up moves when buyers pile in.

Featured image from Unsplash, chart from TradingView

Does Capital Really Rotate From Gold To Bitcoin? On-Chain Data Offers Insight

25 January 2026 at 11:00

“Bitcoin is the digital gold” is one of the most popular narratives in the cryptocurrency industry, reiterating BTC’s growing status as a formidable store of value. However, while the premier cryptocurrency has floundered over the past months, gold and the metals market have largely witnessed explosive growth.

These contrasting performances have led to conversations about capital rotation between Bitcoin and gold, as the crowd expects one to always outperform the other at any given time. Recent data, however, suggests that the relationship between the BTC and gold price action is overrated.

Capital Flow Link Between BTC And Gold Overestimated 

In a January 24 post on the X platform, on-chain analyst with the pseudonym Darkfost weighed in on the discourse surrounding capital rotation between gold and Bitcoin. According to the market pundit, the idea that investor funds flow from gold to Bitcoin is somewhat overblown.

To highlight this overestimation, Darkfost shared a chart showing periods where BTC outperforms or underperforms depending on gold’s trend. This chart typically provides two signals: positive (BTC above the 180-day moving average [MA] and gold below the 180-day MA) and negative (BTC below the 180-day moving average and gold below the 180-day MA).

Bitcoin

As observed in the chart above and stated by Darkfost, the relationship between Bitcoin and gold does not appear to be fully substantiated. The on-chain analyst revealed that there have been as many positive periods as the negative ones, suggesting that the flagship cryptocurrency moves independently of gold.

Darkfost wrote:

This suggests that BTC continues to evolve independently, without clear evidence of a sustained capital rotation from gold.

Furthermore, Darkfost noted that a positive signal does not necessarily mean that capital is flowing out of gold into Bitcoin. According to the on-chain analyst, it is simply not possible to determine whether there is a capital flow relationship between the world’s largest cryptocurrency and gold.

Bitcoin & Gold Price Overview

While Bitcoin started the new year on a pretty strong note, the bullish momentum has pretty much waned over the past two weeks. Meanwhile, the gold price has continued to flourish this year, recently reaching a new all-time high above $4,900 per ounce.

As of this writing, the price of BTC stands at around $89,230, reflecting no significant movement in the past 24 hours. According to data from CoinGecko, the flagship cryptocurrency is nearly 30% adrift its all-time high above the $126,000 level.

Bitcoin

Tether Posts Largest Crypto Revenue in 2025: $5.2B From Stablecoin Dominance

25 January 2026 at 09:20

Tether emerged as the most profitable crypto entity in 2025, generating an estimated $5.2 billion in revenue as stablecoins overtook all other protocol categories in earnings.

According to the latest Coingecko annual crypto industry report, Tether alone accounted for 41.9% of all stablecoin-related revenue in 2025, outpacing competitors such as Circle, Hyperliquid, Pump.fun, Ethena, Axiom, Phantom, and PancakeSwap.

The results show that dollar-backed digital currencies have become the most durable revenue engine in crypto, even as market conditions fluctuated throughout the year.

Tether Leads Stablecoin Issuers To Capture Crypto Revenue Crown

Among more than 168 crypto protocols tracked in 2025, stablecoin issuers collectively generated the highest revenue, with Tether firmly at the center.

INSIGHT: Stablecoins generated $5.2B in revenue in 2025, accounting for 41.9% of total protocol revenue. pic.twitter.com/fjJrAn9k7B

— CoinGecko (@coingecko) January 25, 2026

Its $5.2 billion haul placed it well ahead of Circle and other major players, reinforcing USDT’s position as the industry’s primary settlement asset.

Within the top ten revenue-generating protocols, just four entities, led by Tether and Circle, produced 65.7% of total earnings, equivalent to roughly $8.3 billion.

Tether Crypto Revenue 2025 - CoinGecko Chart
Source: Coingecko

The remaining six protocols in the top ten were all trading-focused platforms, highlighting a sharp divide between stable revenue streams and market-dependent income.

That contrast became clear as trading revenues swung widely with investor sentiment during the year.

Phantom, for example, recorded $95.2 million in revenue in January at the height of the Solana meme coin frenzy, only to see earnings fall to $8.6 million by December as speculative activity cooled.

USDT Claims 60% Share Of $311B Stablecoin Market

The broader stablecoin market expanded rapidly, with total market capitalization rising by $6.3 billion in the fourth quarter alone to reach a record $311.0 billion.

That marked a 48.9% year-over-year increase, adding $102.1 billion as adoption accelerated across regions.

Tether maintained clear leadership with 60.1% of the total stablecoin market cap, or about $187.0 billion, followed by Circle’s USDC at 24.2%, equivalent to $72.4 billion.

Tether Crypto Revenue 2025 - CoinGecko Chart
Source: Coingecko

Tether is now the world’s third-largest digital asset by market value at $186.8 billion, up roughly 50% from a year earlier.

While the top players strengthened their grip, shifts within the top five reflected changing risk appetites.

Ethena’s USDe experienced the sharpest reversal, with its market cap plunging 57.3%, or $6.5 billion, after a mid-October depeg on Binance undermined confidence in high-yield looping strategies.

Other stablecoins posted mixed but notable moves as capital rotated within the sector.

PayPal’s PYUSD surged 48.4%, adding $1.2 billion to reach $3.6 billion and briefly claiming the fifth spot before World Liberty Financial’s USD1 reclaimed it by nearly $1.

Additional high-growth tokens included Ripple’s RLUSD, which expanded 61.8% to add $488.2 million, and USDD, which climbed 76.9% with a $366.8 million increase.

Inside Tether’s $500B Valuation Path and Expanding Investment Empire

Looking ahead, Bitwise CIO Matt Hougan recently suggested that Tether could become the world’s most profitable company if its trajectory continues.

“There’s a chance that many emerging market countries will convert from primarily using their own currencies to using USDT,” Hougan said, pointing to Tether’s near-total dominance outside Western markets.

Based on projected interest income, calculations indicate that custody of $3 trillion in assets could generate annual revenue exceeding the $120 billion earned by Saudi Aramco last year.

Source: Electric Capital

Tether CEO Paolo Ardoino previously told Cryptonews he remains confident USDT will retain its lead due to the company’s deep understanding of real-world usage.

Beyond stablecoins, Tether has expanded aggressively into traditional assets and investments.

⚽ @Tether_to has launched an all-cash bid to acquire Italy’s @juventusfcen, an offer that was reportedly swiftly turned down.#Tether #Cryptohttps://t.co/4iTBXWjo5V

— Cryptonews.com (@cryptonews) December 13, 2025

The company recently became the second-largest shareholder in Italian football club Juventus and has reportedly explored raising $20 billion for a 3% stake, a deal that would imply a valuation near $500 billion and place Tether among the world’s most valuable firms.

The post Tether Posts Largest Crypto Revenue in 2025: $5.2B From Stablecoin Dominance appeared first on Cryptonews.

Ethereum Builds Team To Guard Against Quantum Threat

25 January 2026 at 09:00

Reports say the Ethereum Foundation has started a new team to prepare the network for possible quantum computer attacks. These machines could one day break the math behind wallets and signatures. The team’s work is moving from research into practical tests and experiments, which has drawn attention across the crypto community.

Ethereum Launches Post-Quantum Team

Based on reports, Thomas Coratger will lead the effort. The team includes cryptographers and engineers already testing new systems on devnets. Some work ties into a project called leanVM and a researcher named Emile, who focuses on building simple quantum-safe tools. The goal is to test new algorithms in real software while keeping current transactions running smoothly.

Today marks an inflection in the Ethereum Foundation’s long-term quantum strategy.

We’ve formed a new Post Quantum (PQ) team, led by the brilliant Thomas Coratger (@tcoratger). Joining him is Emile, one of the world-class talents behind leanVM. leanVM is the cryptographic…

— Justin Drake (@drakefjustin) January 23, 2026

$2 Million In Prizes Encourage Development

A $1 million prize has been set for improvements to the Poseidon hash function. Another $1 million prize supports broader post-quantum research. In total, roughly $2 million are being offered to labs and independent developers to design and test quantum-resistant solutions. Reports say this funding is meant to speed up work and show what can realistically replace current signatures.

Early Tests And Community Involvement

Multi-client devnets are already active. Developers are experimenting with new signature types to see what works and what fails. Biweekly sessions led by researchers like Antonio Sanso let teams share results and update code. A Post-Quantum Day is scheduled for March 2026 before ETHCC, with a larger event planned in October 2026 to show progress and plan next steps.

Quantum computers could, in theory, break the ECDSA and secp256k1 schemes used today. That risk is not immediate but serious enough that Ethereum is acting now. Reports note users should watch for official guidance, follow wallet updates, and avoid reusing addresses once upgrades roll out.

Community reaction has been mixed. Some online discussions praised the careful planning, while traders noticed a small dip in ETH price. Others questioned how upgrades would reach millions of wallets and what happens to old keys. The Foundation’s approach is to test solutions early so users and services are better protected when changes happen.

This step is part of Ethereum’s long-term plan for safety. Tests will continue, standards will be debated, and progress will be shared publicly. By acting now, Ethereum aims to reduce risk and make future transitions smoother for everyday users and the network as a whole.

Featured image from Unsplash, chart from TradingView

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