This Week in Crypto: Buterin’s L2 Roadmap, Hyperliquid Security, $1 Billion XRP Unlocks, and More

This week in crypto, a lot happened across different ecosystems, despite the broader market’s prevailing bearish sentiment. Besides Bitcoin’s (BTC) drop to a 7-day low of $81,400, here are this week’s biggest updates.

For starters, crypto markets could have a new Ethereum Layer-2 roadmap. Meanwhile, Hyperliquid users could soon start enjoying better security.

Vitalik Buterin Pushes for Ethereum L2 Roadmap

Co-founder Vitalik Buterin outlined a roadmap for Ethereum’s Layer-2 (L2) ecosystem, emphasizing decentralization, security, and cost-efficiency.

He advocates for a model that reduces centralization risks while ensuring user-friendly experiences for developers and investors.

Buterin also reiterated his commitment to open-source funding within the Ethereum community. This stance comes as the phrase “public goods” has become politically and socially loaded. The phrase is often used in ways that prioritize perception over impact.

Against this backdrop, Buterin proposed shifting the focus from “public goods funding” to “open-source funding.” He said this would encourage greater financial support for projects that enhance network security and scalability.

“A big part of the reason why the term ‘public good’ is vulnerable to social gaming is precisely the fact that the definition of ‘public good’ is stretched so easily,” Buterin argued.

His vision aligns with ongoing efforts to strengthen Ethereum’s L2 playing field and make it more resistant to potential censorship or network failures.

Hyperliquid Tightens Security After JELLY Crisis

Decentralized trading platform Hyperliquid also features among the key headlines this week in crypto. The platform announced new security measures following the JELLY incident, which resulted in substantial losses for users.

To prevent future incidents, the platform has increased monitoring, enhanced smart contract audits, and introduced stricter withdrawal limits.

Hyperliquid’s response aims to restore confidence in decentralized finance (DeFi) platforms amid rising security concerns.

“Hyperliquid is not perfect, but it will continue to iterate and grow through the collective efforts of builders, traders, and supporters,” the network explained.

BeInCrypto data shows that Hyperliquid’s HYPE token price was $11.89 as of this writing, up by a modest 0.97% in the last 24 hours.

Crypto Markets, Equities Sync Amid Recession Fears

Another headline this week in crypto was how the digital assets industry continues to mirror traditional financial (TradFi). Specifically, more than ever, the crypto market appears synchronized with indices like the S&P 500 and Nasdaq.

The synchrony comes as investors react to growing recession concerns. Bitcoin and Ethereum have followed similar downturns seen in stock markets, reinforcing the argument that cryptocurrencies are increasingly correlated with broader economic conditions.

With macroeconomic uncertainty looming, analysts warn that crypto could further decline if economic conditions worsen. However, some argue long-term investors may find opportunities in current market lows.

According to former BitMEX CEO Arthur Hayes, Bitcoin could reach $250,000 by year-end. However, this forecast is contingent on the Federal Reserve (Fed) shifting to Quantitative Easing (QE) to support markets.

Meanwhile, former Goldman Sachs executive Raoul Pal pointed to macroeconomic indicators that suggest a Bitcoin rally is imminent. He shared a chart correlating the global M2 money supply and Bitcoin’s price.

Based on history, Bitcoin tends to rise around 10 weeks after M2 increases. Pal’s analysis suggests that Bitcoin may soon enter a bullish phase.

“The waiting game is almost over…the 10-week lead is my preferred… but,” Pal stated.

Ripple Unlocked $1 Billion in XRP

Also, this week in crypto, Ripple released another 1 billion XRP from its escrow, increasing selling pressure on the token.

Historically, such unlocks have been followed by price declines. This aligns with recent Keyrock research that showed that 90% of unlocks create negative price pressure.

The tokens were moved from the “Ripple (27)” escrow address to two operational wallets, “Ripple (12)” and “Ripple (13).” This suggested the intention to distribute or sell XRP.

Investors remain cautious, watching for signs of potential accumulation. Meanwhile, others anticipate further downside as XRP struggles to regain upward momentum amid broader market uncertainty.

Notwithstanding, there are other positive developments for the XRP market. According to Glassnode data, Retail investors are choosing XRP over Bitcoin, and nearly half of XRP’s realized cap is increasing.

Another bullish fundamental for XRP this week is Coinbase’s filing for a futures contract offering in the Ripple token. The move indicates shifting regulatory tides in the US and also bolsters XRP ETF (exchange-traded funds) approval odds.

Standard Chartered Predicts Crypto Winners

Standard Chartered also made it to the top headlines this week in crypto. The bank identified Bitcoin (BTC) and Avalanche (AVAX) as the primary beneficiaries of a potential post-Liberation Day crypto market surge.

The bank suggests that favorable macroeconomic conditions and increasing institutional adoption could propel these assets higher in the coming months.  

“We expect volatility to edge gradually lower once the ETF market matures, increasing Bitcoin’s share of an optimal gold-BTC portfolio. Access plus lower volatility could see Bitcoin reach the $500,000 level before Trump leaves office,” wrote Geoff Kendrick, Head of Digital Asset Research at Standard Chartered, in an email to BeInCrypto.

This forecast aligns with the growing narrative that institutional interest will play a key role in shaping the next phase of the crypto market cycle. However, skeptics remain cautious, citing regulatory uncertainty and potential economic headwinds as factors that could delay or dampen such a rally.