By embedding provenance into blockchain, we liberate creators and agentic originality from proprietary capture.

AI flattens creativity. Blockchain is how we save it | Opinion

_**Opinion by: Jin Kwon, co-founder and chief strategy officer at Saga**_
Crypto has come a long way in boosting transaction throughput. New layer 1s 
(L1s) and side networks offer faster, cheaper transactions than ever before. 
Yet, a core challenge has come into focus: liquidity fragmentation &#8212; the 
scattering of capital and users across an ever-growing maze of blockchains.
Vitalik Buterin, in a recent blog post, highlighted how scaling successes have 
led to unforeseen coordination challenges. With so many chains and so much 
value splintered among them, participants face a daily tangle of bridging, 
swapping and wallet-switching.
While these issues affect Ethereum, they also affect nearly every ecosystem. 
No matter how advanced, new blockchains risk becoming liquidity &#8220;islands&#8221; that 
struggle to connect with one another.
## The real costs of fragmentation
Liquidity fragmentation means there is no single &#8220;pool&#8221; of assets for traders, 
investors or decentralized finance (DeFi) applications to tap into. Instead, 
each blockchain or side network hosts its own siloed liquidity. For a user who 
wants to buy a token or access a specific lending platform, this siloing 
introduces multiple headaches.
Switching networks, opening specialized wallets and paying multiple 
transaction fees are far from seamless, especially for those less tech-savvy. 
Liquidity is also thinner in each isolated pool, leading to price disparities 
and higher slippage on trades.
Many users resort to bridges to move capital across chains, yet these have 
been frequent targets for exploits, raising fear and mistrust. If it&#8217;s too 
cumbersome or risky to move liquidity around, DeFi fails to gain mainstream 
momentum. Meanwhile, projects scramble to deploy across multiple networks or 
risk being left behind.
Some observers worry that fragmentation could drive people back to a few 
dominant chains or centralized exchanges, undermining the decentralized ideals 
that fueled blockchain&#8217;s rise.
## Familiar fixes, with persisting gaps
Solutions have emerged to tackle this tangle. Bridges and wrapped assets 
enable basic interoperability, but the user experience remains cumbersome. 
Crosschain aggregators can route tokens through a chain of swaps, yet they 
generally don&#8217;t merge the underlying liquidity. They only help users navigate 
it.
Meanwhile, ecosystems like Cosmos and Polkadot bring interoperability within 
their frameworks, though they are separate realms in the broader crypto 
landscape.
The problem is fundamental: Each chain views itself as distinct. Any new chain 
or sub-network must be &#8220;plugged in&#8221; at the ground level to truly unify 
liquidity. Otherwise, it adds another liquidity island that users must 
discover and bridge into. This challenge is compounded by chains, bridges and 
aggregators seeing one another as competition, leading to intentional siloing 
and making fragmentation even more pronounced.
## Integrating liquidity at the base layer
Integration at the base layer addresses liquidity fragmentation by embedding 
bridging and routing functions directly into a chain&#8217;s core infrastructure. 
This approach appears in certain layer-1 protocols and specialized frameworks, 
where interoperability is treated as a foundational element rather than an 
optional add-on.
_**Recent:**__**What are exit liquidity traps &#8212; and how to detect them before 
it is too late**_
Validator nodes automatically handle crosschain connections, so new chains or 
side networks can launch with immediate access to the broader ecosystem&#8217;s 
liquidity. This reduces reliance on third-party bridges that often introduce 
security risks and user friction.
Ethereum&#8217;s own challenges with heterogeneous layer-2 (L2) solutions underscore 
why integration is essential. Different participants &#8212; Ethereum as a 
settlement layer, L2s focusing on execution, and various bridging services &#8212; 
have their own motivations, resulting in fragmented liquidity.
Buterin&#8217;s references to this issue highlight the need for more cohesive 
designs. An integrated base-layer model brings these components together at 
launch, ensuring that capital can flow freely without forcing users to 
navigate multiple wallets, bridge solutions, or rollups.
An integrated routing mechanism also consolidates asset transfers, mimicking a 
unified liquidity pool behind the scenes. By capturing a fraction of the 
overall liquidity flow rather than charging users for every transaction, such 
protocols reduce friction and encourage capital mobility across the network. 
Developers deploying new blockchains gain instant access to a shared liquidity 
base while end-users avoid juggling multiple tools or encountering unexpected 
fees.
This emphasis on integration helps maintain a seamless experience, even as 
more networks come online.
## Not just an Ethereum issue
While Buterin&#8217;s blog post focuses on Ethereum&#8217;s rollups, fragmentation is 
ecosystem-agnostic. Whether a project builds on an Ethereum Virtual Machine- 
compatible chain, a WebAssembly-based platform, or something else, the 
fragmentation trap arises if liquidity is fenced off.
As more protocols explore base-layer solutions &#8212; embedding automatic 
interoperability into their chain design &#8212; there&#8217;s hope that future networks 
won&#8217;t splinter capital further but instead help unify it.
A clear principle emerges: Throughput means little without connectivity.
Users shouldn&#8217;t need to think about L1s, L2s or sidechains. They just want 
seamless access to decentralized applications (DApps), games and financial 
services. Adopting will follow if stepping onto a new chain feels identical to 
operating on a familiar network.
## Toward a unified and liquid future
The crypto community&#8217;s focus on transaction throughput has revealed an 
unexpected paradox: The more chains we create for speed, the more we fragment 
our ecosystem&#8217;s strength, which lies in its shared liquidity. Each new chain 
intended to boost capacity creates another isolated pool of capital.
Building interoperability directly into blockchain infrastructure offers a 
clear path through this challenge. When protocols handle crosschain 
connections automatically and route assets efficiently, developers can expand 
without splintering their user base or capital. Success in this model comes 
from measuring and improving how smoothly value moves throughout the 
ecosystem.
The technical foundations for this approach exist today. We must implement 
them thoughtfully, with attention to security and user experience.
_**Opinion by: Jin Kwon, co-founder and chief strategy officer at Saga.**_
This article is for general information purposes and is not intended to be and 
should not be taken as legal or investment advice. The views, thoughts, and 
opinions expressed here are the author&#8217;s alone and do not necessarily reflect 
or represent the views and opinions of Cointelegraph.

Every chain is an island: crypto’s liquidity crisis

Amidst a steady crypto market, total crypto VC funding hit $293.2 million for 
the week of April 13-19, 2025, with Auradine&#8217;s $153 million Series C leading 
the charge. This week, capital flowed into infrastructure, AI, and DeFi 
projects across various…

Crypto VC funding: Auradine secures $153m, World Liberty Fi inks deal with DWF Labs

Whales and institutions are increasing their Bitcoin holdings ahead of Easter, 
as market analysts predict a weekend with less volatility after two weeks of 
heightened volatility driven by escalating global trade tensions.
London-based investment firm Abraxas Capital acquired 2,949 Bitcoin (BTC) 
worth more than $250 million during the four days leading up to April 19.
In the latest transaction, the firm bought over $45 million worth of Bitcoin 
from Binance on April 18, according to crypto intelligence firm Lookonchain, 
citing Arkham Intelligence data.
_Source: Arkham Intelligence,__Lookonchain_
The investment came days after Michael Saylor&#8217;s Strategy bought $285 million 
worth of Bitcoin at an average price of $82,618 per BTC, as the world&#8217;s 
largest corporate Bitcoin holders signal continued confidence in Bitcoin, amid 
global tariff uncertainty.
Large Bitcoin investors, or whales, continue accumulating, absorbing over 300% 
of Bitcoin&#8217;s yearly issuance as exchanges continue losing coins at a historic 
pace, Cointelegraph reported on April 18.
_**Related:**__**Spar supermarket in Switzerland starts accepting Bitcoin 
payments**_
## Crypto analysts eye quiet Easter weekend after weeks of turmoil
Despite continued accumulation from whales and institutions, volatility 
concerns were raised by significant movements from the medium-term Bitcoin 
cohort, which holds coins for an average of three to six months.
Over 170,000 Bitcoin entered circulation from the medium-term cohort, a 
development that may signal &#8220;imminent&#8221; crypto market volatility, according to 
pseudonymous CryptoQuant analyst Mignolet.
&#8220;The effect of this metric on LTF moves is overstated as large onchain 
movement of coins hardly ever affects weekend price action since it&#8217;s not on 
liquid markets or CEX markets,&#8221; analysts at Bitfinex exchange told 
Cointelegraph, adding:
&gt; &#8220;It is important to note that funding rates remain relatively flat 
&gt; currently. Moreover, US markets are closed as we have a long weekend for 
&gt; Easter, so volatility could be suppressed barring headlines from the White 
&gt; House.&#8221;
_**Related:**__**Crypto, DeFi may widen wealth gap, destabilize finance: BIS 
report**_
Marcin Kazmierczak, chief operating officer of RedStone Oracles, added that 
the recent movements may be operational transfers, not necessarily signs of 
imminent selling pressure.
Still, concerns over weekend volatility have been amplified over the past two 
weeks after the Mantra (OM) token&#8217;s price collapsed by over 90% on Sunday, 
April 13, from roughly $6.30 to below $0.50, triggering market manipulation 
allegations and highlighting &#8220;critical&#8221; liquidity issues in the industry.
Two weeks ago, on April 6, Bitcoin fell below $75,000 on Sunday, as investor 
concerns spread from a record-breaking $5 trillion sell-off from the S&amp;P 500, 
its largest on record.
_BTC, SPX, year-to-date chart. Source: Cointelegraph/__TradingView_
The correction was caused by Bitcoin&#8217;s 24/7 trading availability, which made 
it the only large liquid asset available for de-risking on Sunday, Blockstream 
CEO Adam Back told Cointelegraph.
&#8220;On a weekend, there&#8217;s not much volume. So you have a worse risk of rapid sort 
of flash crashes or flash dips that get filled in again,&#8221; he said.
_**Magazine:**__**Bitcoin ATH sooner than expected? XRP may drop 40%, and 
more: Hodler &#8216;s Digest, March 23 &#8211; 29**_

UK firm buys $250M Bitcoin as analysts eye quiet Easter weekend

Cardano is now entering a critical phase after enduring weeks of massive 
selling pressure and heightened market uncertainty. While the broader crypto 
market remains fragile due to rising macroeconomic tensions and geopolitical 
risks, ADA has managed to bounce back, gaining 25% from its early April lows. 
This recovery has sparked cautious optimism among bulls who believe momentum 
could continue if key resistance levels are reclaimed. Related Reading: 
Ethereum Price Stalls In Tight Range – Big Price Move Incoming? However, the 
rebound hasn’t gone unnoticed by larger players. According to on-chain data 
from Santiment, whales have taken advantage of the recent price upswing to 
offload more than 180 million ADA in just the past five days. This aggressive 
distribution suggests that while retail and mid-sized investors may be 
expecting a rally, some of the largest holders are opting to exit their 
positions. The contrasting behavior between whales and smaller cohorts 
reflects the broader market’s uncertain state. With no resolution in sight to 
the ongoing trade conflict between the US and China, and fears of a global 
economic slowdown mounting, bullish conviction remains fragile. The coming 
days will be pivotal for Cardano, as price action and on-chain signals 
continue to diverge in a market desperate for clarity. Cardano Whale Activity 
Sparks Debate Over Trend Direction Cardano is now testing a critical demand 
zone that may determine whether the recent recovery is sustainable or simply a 
temporary pause in a larger downtrend. After a steady decline that began in 
early March, ADA is attempting to establish support as global macroeconomic 
tensions continue to pressure financial markets. With investors growing 
increasingly risk-averse, many have chosen to offload both altcoins and 
Bitcoin to shield their portfolios from escalating volatility and negative 
sentiment surrounding trade conflicts, inflation, and regulatory uncertainty. 
Despite these headwinds, some analysts believe a potential breakout could 
emerge once current economic pressures begin to ease. But recent whale 
behavior has raised concerns. According to top analyst Ali Martinez, whales 
took advantage of ADA’s recent price upswing by offloading over 180 million 
tokens in just the past five days. This move has sparked debate over whether 
whales are simply securing profits before further uncertainty—or signaling a 
deeper continuation of the downtrend. If Cardano manages to hold its current 
support levels and attract renewed buying interest, a short-term rally may 
still be in play. However, failure to defend this zone could confirm bearish 
continuation, pushing ADA into lower territory. With market sentiment split 
and high-stakes developments unfolding globally, ADA’s next move could set the 
tone for its performance throughout the quarter. Related Reading: Solana Turns 
Bullish On 8H Chart – Break Above $147 Could Confirm New Trend ADA Stalls 
Below Resistance As Bulls Face Critical Test Cardano (ADA) is currently 
trading at $0.63 after several days of sideways movement and failed attempts 
to break above the $0.66 resistance zone. This level has capped recent upside 
momentum, signaling that bulls are struggling to gain control in the current 
environment of macroeconomic uncertainty and risk-off investor sentiment. To 
confirm a true bullish reversal and break the broader downtrend, ADA must 
reclaim the $0.75 level, which is aligned with the 200-day moving average. A 
decisive move above this mark would reestablish long-term strength and could 
open the door to a sustained recovery rally. Until then, ADA remains in a 
vulnerable position, caught between key resistance and fragile support. 
Related Reading: Over 1.9M Ethereum Positioned Between $1,457 And $1,598 – Can 
Bulls Hold Support? On the downside, losing the $0.60 level could trigger 
another wave of selling pressure. Such a move would likely push the price back 
toward the $0.50 support zone, a level not seen since earlier this year. As 
global markets remain on edge amid geopolitical tensions and investor 
uncertainty, ADA&#8217;s next move will depend on whether bulls can generate enough 
momentum to flip key resistance or risk further downside if sellers take over. 
Featured image from Dall-E, chart from TradingView

Cardano Whales Offload 180 Million ADA In 5 Days – Smart Profit-Taking?

XRP (XRP) has bounced nearly 30% after a four-month low of $1.61 amid rising 
tariff tensions. However, the rebound may be short-lived as technical patterns 
and on-chain signals now point to a deeper correction ahead.
## XRP cup-and-handle pattern hints at 40% drop
XRP is forming a classic bearish reversal pattern that could see its price 
falling by at least 40% in the coming weeks.
Dubbed inverse-cup-and-handle (IC&amp;H), the pattern forms when the price rounds 
off in a curved descent (cup) followed by a brief consolidation phase (handle) 
&#8212; all atop a common neckline support level.
_Inverted cup-and-handle pattern illustrated. Source:__Medium_
The pattern is confirmed by a breakdown stage, where the price breaks 
decisively below support and falls by as much as the pattern&#8217;s maximum height.
As of April 19, XRP had entered the pattern&#8217;s handle-formation phase, eyeing a 
decisive close below the neckline support at around $2. In this case, the 
primary downside target will likely be around $1.24, almost 40% below current 
prices.
_XRP/USD three-day price chart. Source: TradingView_
The IC&amp;H target aligns with XRP&#8217;s 200-3D exponential moving average (200-3D 
EMA; the blue wave) at around $1.28 &#8212; and further coincides with a November 
2024 top.
Additionally, veteran trader Peter Brandt suggests that XRP&#8217;s market cap could 
drop by 50% in the coming weeks.
_Source:__Peter Brandt_
## XRP onchain fractal hints at 50% correction
XRP&#8217;s inverse cup-and-handle pattern is unfolding in line with its historical 
price behavior, signaling that its 2025 rally may have topped out.
For instance, the cryptocurrency saw sharp pullbacks to its aggregated 
realized price following major surges in previous cycles, most notably in 2018 
and 2021.
_XRP realized price by age (aggregated). Source: Glassnode_
For traders, the realized price serves as a psychological benchmark, 
representing the average price at which the XRP supply was last moved.
When the market price trades well above this level, most holders are in 
profit, which can encourage complacency or profit-taking. Conversely, if the 
price nears the realized price, fear of losses tends to rise, and selling 
pressure can intensify.
In 2025, XRP surged past $3.20 before losing steam, repeating patterns seen in 
past bull-to-bear cycles. The current realized price at around $1, a likely 
downside target in 2025 down about 50% from the current prices.
Interestingly, XRP&#8217;s $1 realized price target is closer to its 200-week EMA 
(the blue wave in the chart below) at $0.81, a bear market target discussed in 
Cointelegraph&#8217;s analysis in late March.
_XRP/USD weekly price chart. Source: TradingView_
Adding to the bearish outlook, over 80% of XRP addresses are currently in 
profit. The metric historically reached similar levels during previous market 
tops, often preceding significant rounds of profit-taking and pullbacks.
_**Related:**__**81.6% of XRP supply is in profit, but traders in Korea are 
turning bearish &#8212; Here is why**_
 _XRP percent of addresses in profit. Source: Glassnode_
If history repeats, such similar conditions could incentivize traders to exit 
positions, accelerating XRP&#8217;s retracement toward the realized price.
## Odds of XRP hitting record highs are declining
Sentiment around XRP reaching a new all-time high above the $3.55 level is 
deteriorating, according to prediction market data from Polymarket.
As of April 19, the odds of XRP achieving this milestone before 2026 have 
dropped to just 35%, marking a sharp 25% decline from peak confidence levels 
in March, as shown below.
_XRP all-time highs before 2026 odds. Source: Polymarket_
The upside momentum in the crypto market has faded overall in April, 
coinciding with a broader decline in risk appetite driven by escalating global 
tariff tensions under Donald Trump&#8217;s trade policies.
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.