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  • Bitcoin Price Surge: Expert Eyes $400,000 Target Using Silver Rally

    Bitcoin Price Surge: Expert Eyes $400,000 Target Using Silver Rally

    Bitcoin’s recent pullback has unnerved many investors, but Matt Crosby, director of research and analytics at LookIntoBitcoin, remains unfazed. He asserts that on-chain data indicates the bear market low is “essentially in,” and anticipates the next rally could be significantly faster than most expect.

    Crosby’s primary evidence stems from a metric known as realized cap HODL waves. This indicator tracks the proportion of Bitcoin’s average purchase price influenced by investors who have held their coins for at least three months. When this share surpasses 80%, it signals that long-term holders have gained firm control, and short-term speculation has waned. According to Crosby, this threshold has consistently marked Bitcoin’s bear market lows, and the current data suggests it has done so once again.

    Sellers Ran Out of Steam

    Crosby characterized the recent market conditions as a “true dictionary definition of seller exhaustion.” Despite a series of negative news events impacting Bitcoin, the price continued to climb. He also noted a decrease in the supply held by long-term holders, which he interprets as new capital entering the market to make purchases.

    He sees no indications of an overheated market. Instead, Crosby described a “healthy, very spot-driven rotation” of capital moving from stocks, bonds, and commodities into Bitcoin.

    Why Bitcoin Can Move So Fast

    Crosby highlighted Bitcoin’s rapid ascent from $64,000 to $84,000. He estimates that because long-term holders control a substantial portion of the supply and rarely sell, each new dollar entering the market increases Bitcoin’s market value by approximately $6.20. This suggests that even a modest reallocation of capital from sectors like the AI bubble or the bond market could trigger a sharp price increase.

    Bitcoin as a Share of Global Capital

    At its recent peak of around $87,000, Bitcoin represented roughly 0.32% of all invested global capital, a figure below its high of just under 0.5%. Crosby pointed out that as global capital continues to grow, Bitcoin’s potential market share remains significant.

    Silver Comparison: $400,000

    Crosby’s most ambitious projection draws a parallel between Bitcoin and silver. When silver reached its bottom in 2022, its market value stood at approximately $1 trillion. Bitcoin’s recent low was around $1.1 trillion.

    Silver experienced a surge of about 593% over 3.4 years. Given Bitcoin’s 24/7 trading cycle, which typically leads to faster price movements, Crosby adjusted this timeline to approximately 2.3 years. If Bitcoin were to replicate silver’s performance over this condensed period, it could reach around $400,000.

    He stated that Bitcoin has tracked silver’s trajectory with approximately 90% correlation to date. While acknowledging that this target is “potentially” optimistic and declining to provide an exact peak price, Crosby indicated that a global capital model suggests a valuation close to $390,000.

  • Bitcoin Rebounds as Bulls Mount Strong Defense

    Bitcoin Rebounds as Bulls Mount Strong Defense

    Bitcoin Rebounds to $83,700 as Buyers Counter Sharp Sell-Off

    Bitcoin has surged back to trading above $83,700, demonstrating a swift recovery after a significant dip earlier in the day. While the rebound is viewed as a positive sign, the cryptocurrency has yet to decisively break through key resistance levels that would signal a more robust upward trend. The critical factor now is whether sustained spot demand can propel Bitcoin past the $84,000-$85,000 range, especially as exchange-traded fund (ETF) flows continue to influence its price trajectory.

    The digital asset experienced a sharp decline toward $81,000 this morning, coinciding with a 7% drop in South Korea’s KOSPI index, which briefly fell below 6,000. This broader market sell-off injected a risk-off sentiment into the cryptocurrency space. However, buying interest emerged around the $81,500 weekly pivot level, triggering a V-shaped reversal that pushed Bitcoin back above the $83,000 mark.

    Market conditions remain complex, with potential headwinds such as ETF outflows, elevated interest rates, and liquidity concerns posing a risk to further upside. Traders are now seeking confirmation from both price action and fund flows, rather than relying solely on intraday recoveries. Recent analyses of Bitcoin’s price movements highlight the importance of these levels and catalysts in shaping its current trajectory.

    Key Price Levels and Resistance

    Bitcoin is currently quoted at $83,700, showing a modest gain of less than 1% over the past 24 hours. The recent rebound has brought the price close to its daily high of $83,800. A sustained move above the $84,000-$85,000 zone would represent the first significant confirmation of a stronger breakout. Analysts also identify this area as a crucial test, with $86,500 being a level to monitor if upward momentum intensifies.

    Immediate support is observed in the $82,000-$82,500 range. Should buyers falter, the next significant support lies in the lower $80,300-$81,410 area. The $81,500 pivot point has proven particularly relevant, having held firm during the recent sell-off.

    Macroeconomic Influences and Demand Indicators

    The performance of Bitcoin ETFs and upcoming US inflation data are critical considerations. Renewed outflows from ETFs or higher-than-expected inflation figures could reinforce tighter financial conditions, thereby exerting downward pressure on risk assets like Bitcoin. For a deeper understanding of demand dynamics, reports detailing Bitcoin ETF outflows and overall demand are recommended. Traders are advised to observe the reclaim of the $84,000-$85,000 level and the subsequent response at support before interpreting the current reversal as a definitive trend change.

    While Bitcoin’s rebound has somewhat restored market confidence, the cryptocurrency still needs to demonstrate its ability to sustain gains against prevailing resistance and broader macroeconomic headwinds. This presents a familiar challenge: established market exposures offer clearer liquidity, whereas early-stage infrastructure projects carry execution risks and can be more difficult to value.

    Bitcoin Hyper: A New Layer 2 Solution

    For investors looking beyond the immediate Bitcoin price action, Bitcoin Hyper has emerged as a notable project. This Bitcoin Layer 2 solution integrates the Solana Virtual Machine (SVM) with Bitcoin-centric infrastructure, aiming to enhance the Bitcoin ecosystem with smart contract capabilities and more efficient, lower-cost transactions. Key features include a decentralized canonical bridge for Bitcoin transfers and low-latency Layer 2 processing.

    The project is currently in its presale phase, with tokens priced at $0.0136875 and $33.1 million already raised. Early buyers are also offered staking opportunities with a high annual percentage yield (APY) of 30%. The presale is scheduled to conclude in 40 days.

  • Crypto Market Poised for $10 Trillion Surge by 2026, Pal Forecasts

    Crypto Market Poised for $10 Trillion Surge by 2026, Pal Forecasts

    Crypto Market Poised for Trillion-Dollar Surge, Raoul Pal Predicts

    Singapore – Cryptocurrency markets could balloon to $10 trillion within the next 18 to 24 months and potentially reach $100 trillion by 2035, according to Raoul Pal, CEO of Real Vision. Pal attributes this optimistic outlook to a confluence of factors including rising global liquidity, significant investment in artificial intelligence, the growing adoption of stablecoins, and the burgeoning trend of tokenized assets.

    Speaking at Suie Base Camp in Singapore on October 7, Pal noted that current cryptocurrency prices are still trading below their long-term trend. However, he cautioned that broader financial conditions have not yet signaled a definitive and sustained recovery.

    This forecast emerges in the wake of a significant market event, where over $1 billion in leveraged cryptocurrency positions were liquidated within a 24-hour period on October 8–9. The majority of these losses were incurred by traders who had bet on upward price movements.

    Pal highlighted that Bitcoin, in particular, is currently trading below its long-term trend and remains undervalued when compared to technology stocks. Despite this, he does not anticipate an immediate rally, citing persistent weakness in global liquidity conditions.

    He identified several key indicators that will influence financial markets, including long-term interest rates, oil prices, and the strength of the US dollar. A weaker dollar and an improvement in liquidity, he suggested, would provide a more robust signal for cryptocurrency price appreciation.

    “Crypto is far too cheap where it should be anyway,” Pal stated, urging investors to focus on the long-term trajectory of the market rather than becoming fixated on short-term price fluctuations.

    For investors who find it challenging to withstand significant market downturns, Pal advised reducing their exposure and maintaining readily available funds to capitalize on potential buying opportunities.

    AI Investment and Economic Outlook

    Pal also addressed the notion that increased investment in artificial intelligence could inevitably trigger a major debt crisis. He countered this by pointing out that major technology companies generally carry relatively low debt levels in proportion to their market valuations and their capacity to generate cash.

    He acknowledged that some companies involved in AI infrastructure might encounter financial difficulties if their revenues fall short of projections. Nevertheless, he believes that a failure by a prominent entity like OpenAI would not necessarily derail the broader AI investment cycle, as other companies could step in to acquire its computing infrastructure.

    Drawing a parallel, Pal compared the current AI investment boom to the telecommunications expansion of the late 1990s. While many telecom companies faltered after substantial investments in internet infrastructure, the networks they built ultimately facilitated widespread internet adoption.

    Furthermore, Pal anticipates that AI will drive productivity gains by lowering computing costs and enhancing intelligence generation. He posited that a stronger growth in productivity could enable economies to expand without a commensurate increase in debt.

    Future Drivers of Crypto Growth

    Pal cautioned investors against assuming that Bitcoin’s traditional four-year cycle will dictate the timing of the next market peak. He suggested that broader economic and technological trends could potentially extend this cycle.

    He pinpointed stablecoins and the tokenization of real-world assets as crucial sources of future demand for blockchain networks. Stablecoins are expected to facilitate payments and trading, while tokenization will enable traditional financial assets such as stocks, bonds, and investment funds to be represented on blockchains.

    Pal foresees financial institutions increasingly bringing more assets onto the blockchain, thereby expanding the use of blockchain infrastructure beyond cryptocurrency trading. He also anticipates potential demand from AI agents that utilize digital financial services.

    Elaborating on the scale of this opportunity, Pal projected, “We’ll get to a trillion dollars of stable coins in by in the next four years, three years.” This estimate reflects his expectation of continued stablecoin adoption rather than a guaranteed market outcome.

    Pal’s projections for the total cryptocurrency market reaching approximately $10 trillion within 18 to 24 months and potentially $100 trillion by 2035 are market-wide forecasts, not specific price targets for individual cryptocurrencies like Bitcoin or Ethereum.

    Achieving these valuations, he noted, will hinge on sustained crypto adoption, improving liquidity, and increased utilization of blockchain networks for financial transactions. The distribution of market value across Bitcoin, Ethereum, and other digital assets will also play a role.

    Pal concluded that the financial system is gradually transitioning towards blockchain-based infrastructure, with stablecoins and tokenized securities being among the developments he expects to fuel growth.

    He reiterated that the market has yet to provide a clear signal for a sustained recovery. Investors should closely monitor global liquidity, US dollar movements, oil prices, and interest rates to gauge improvements in financial conditions. The supply of stablecoins, he added, serves as another important indicator, reflecting the availability of dollar-linked assets within crypto markets.

    While Pal maintains a long-term bullish stance, he acknowledged that further tightening of financial conditions could prolong market volatility. His projections are contingent on liquidity improvements and continued adoption, neither of which guarantees a specific timeline for cryptocurrency price increases.

  • IBIT Drives All Bitcoin ETF Outflows on October 12

    IBIT Drives All Bitcoin ETF Outflows on October 12

    BlackRock’s iShares Bitcoin Trust (IBIT) experienced $65.4 million in net outflows on October 12, 2026, a figure that accounted for the entirety of the US spot Bitcoin ETF market’s outflows that day, according to data from SoSoValue.

    IBIT Leads Market Outflows

    Notably, all other spot Bitcoin ETFs saw no inflows or outflows, leaving IBIT as the sole fund with significant trading activity. This redemption occurred just days after a more substantial outflow event. On October 7, US spot Bitcoin ETFs collectively recorded their peak single-day outflow for the month, totaling $484.9 million. IBIT was responsible for $207.7 million of that total, representing just under half of the day’s withdrawals. The October 12 outflow was approximately one-third the size of IBIT’s redemption on October 7.

    Context of Outflows

    IBIT’s cumulative net inflows to date stand at approximately $65.67 billion. Against this substantial figure, the recent $65.4 million exit represents about one-tenth of a percent. Collectively, US spot Bitcoin ETFs manage around $106 billion in assets, which equates to roughly 6.35% of Bitcoin’s total market capitalization.

    During this period, Bitcoin has been trading in the low to mid-$80,000 range. Market pressures appear to be stemming from outside the cryptocurrency sector, with rising Treasury yields and a shift in risk sentiment impacting assets often categorized as speculative.

    IBIT’s Dominance and Investor Behavior

    IBIT maintains its leading position among Bitcoin ETFs in terms of both assets under management and historical inflows. Spot Bitcoin ETFs have emerged as a primary avenue for traditional investors seeking exposure to Bitcoin, with wealth managers, advisors, and institutions frequently opting for the familiar structure of a fund over direct coin ownership.

    The isolated nature of the October 12 outflow is particularly noteworthy. With no other funds experiencing movement, the redemptions suggest decisions made specifically by IBIT holders rather than a widespread exit from the market. However, the data does indicate a reduction in the scale of selling compared to the October 7 spike, with a $65.4 million outflow significantly smaller than the $484.9 million recorded on that earlier date. Given that spot Bitcoin ETFs now represent approximately 6.35% of Bitcoin’s market capitalization, these flows carry considerable influence.

  • SkyAI Plans Major Share Buyback, Funded by Cash and Solana Asset Sales

    SkyAI Plans Major Share Buyback, Funded by Cash and Solana Asset Sales

    Solana treasury firm SkyAI has announced plans to repurchase up to 95% of its outstanding shares and warrants at $3 per share. The company intends to fund this significant buyback initiative using a combination of its existing cash reserves and proceeds from the sale of its Solana (SOL) holdings.

    This strategic move follows SkyAI’s recent report of selling approximately half of its SOL treasury. The buyback plan is designed to return substantial value to shareholders. In a separate corporate action, SkyAI recently disclosed that it rejected an unsolicited, stock-for-stock acquisition offer from Forward Industries.

    The buyback represents a significant financial maneuver for SkyAI, signaling a strategic shift towards shareholder returns. The company’s decision to divest a portion of its digital asset holdings to facilitate this buyback highlights a focus on optimizing its capital structure and rewarding its investors. While the total value of the buyback and the precise amount of Solana sold are not yet fully detailed, the plan targets a repurchase of up to 95% of outstanding equity instruments.

    SkyAI’s recent actions, including the sale of SOL assets and the rejection of the Forward Industries bid, indicate a strategic direction focused on internal capital management and shareholder value enhancement rather than external consolidation. The company’s financial strategy appears to prioritize direct returns to its existing shareholder base through this substantial buyback program.

    Why This Matters

    The materials describe a narrow update: SkyAI intends to repurchase up to 95% of its outstanding shares and warrants at $3 per share. The buyback plan is a response to the company selling a significant portion of its SOL treasury.

    Broader Context

    Source materials place the factual news in this context: SkyAI is a Solana treasury firm.

  • US Spot Ethereum ETFs Face Redemptions; ETHA Outflows Significant

    US Spot Ethereum ETFs Face Redemptions; ETHA Outflows Significant

    Clients of BlackRock’s iShares Ethereum Trust (ETHA) withdrew $75.07 million on October 12, 2026, contributing to the $85.4 million in net outflows across all US spot Ethereum ETFs that day. This marked the continuation of a nine-day streak of redemptions for Ethereum ETFs.

    Key Outflow Figures and Trends

    For the week ending October 9, 2026, spot Ethereum ETFs collectively saw net redemptions totaling $542.1 million, the largest weekly outflow since January 2026. The iShares Ethereum Trust (ETHA) was responsible for approximately 88% of these weekly redemptions, highlighting its significant influence on the overall Ethereum ETF market.

    These outflows from ETHA follow previous notable withdrawals, including roughly $110 million on September 16, 2026, and approximately $201.9 million on October 6, 2026. Despite these redemptions, Ethereum was trading around $2,500 on October 12, 2026.

    Comparative Market Context

    In contrast to the outflows from Ethereum ETFs, Bitcoin ETFs experienced mixed to positive inflows during the same periods. According to the article, this divergence may suggest a potential tactical rotation among digital asset investors rather than a wholesale retreat from the crypto market.

    Historical Performance and Fund Details

    Spot Ethereum ETFs were introduced in the US in mid-2024, with the iShares Ethereum Trust (ETHA) launching in July 2024. Since its inception, ETHA has accumulated over $12.7 billion in cumulative net inflows. As of October 12, 2026, total assets under management across all US spot Ethereum ETFs stood at approximately $15.86 billion, representing about 5.15% of Ethereum’s total market capitalization. The ETHA fund has a sponsor fee of 0.25%.

    Uncertainty and Future Outlook

    The significant role of ETHA in recent outflows raises questions about the broader health and stability of the US spot Ethereum ETF market. The long-term behavior of BlackRock’s ETHA clients and its subsequent impact on the Ethereum ETF category remain an area of uncertainty. While recent outflows are a notable data point, their full implications for the market are still unfolding.

  • Bybit Expands Trading to Over 1,000 U.S. Stocks and ETFs

    Bybit Expands Trading to Over 1,000 U.S. Stocks and ETFs

    Bybit has enabled eligible users to trade over 1,000 U.S.-listed stocks and Exchange Traded Funds (ETFs) directly within their existing cryptocurrency trading accounts. This new service connects stablecoin balances with underlying securities, allowing users to trade U.S. equities.

    The platform’s expansion into U.S. securities signifies a diversification beyond its core digital asset offerings. By offering trading for a broad selection of over 1,000 U.S. stocks and ETFs, Bybit is creating a more integrated trading environment.

    This development blurs the lines between the cryptocurrency and traditional financial markets, potentially offering investors access to both digital assets and traditional securities through a single platform.

    Why This Matters

    Bybit’s move to integrate U.S. stocks and ETFs into its crypto trading accounts represents a significant step in blurring the lines between traditional finance and the cryptocurrency ecosystem. This expansion extends Bybit’s platform beyond digital assets into conventional investments, potentially setting a precedent for other platforms.

    Broader Context

    This development signifies a notable step in the evolution of digital asset platforms, integrating traditional financial assets with digital asset trading infrastructure. The service connects stablecoin balances with underlying securities, allowing eligible cryptocurrency traders to buy more than 1,000 U.S.-listed stocks and ETFs.

  • Aptos Launches Encrypted Mempool, Blocking Sandwich Attacks

    Aptos Launches Encrypted Mempool, Blocking Sandwich Attacks

    Aptos Mainnet Launches Optional Encrypted Mempool for Enhanced Transaction Privacy

    Aptos, a prominent blockchain platform, announced on Monday the official launch of its Encrypted Mempool on the mainnet. This feature positions Aptos among a select group of mainstream public blockchains to integrate transaction privacy directly into its consensus layer. Users can opt to enable this functionality, ensuring that transaction details remain encrypted until block ordering is finalized, thereby preventing bots from exploiting pending orders for sandwich attacks or front-running.

    Currently, the mempools of most mainstream public blockchains are entirely transparent. Any node can view the specifics of upcoming transactions, including the functions called, assets and amounts involved, and the addresses of interacting contracts. MEV (Maximal Extractable Value) bots leverage this visibility to insert their own orders before or after user transactions, profiting by buying low and selling high at the expense of legitimate traders.

    Data from Bitquery investigations reveals that sandwich attacks alone generated $29.7 million in revenue for bots on Solana over an 11-month period, involving nearly 6.9 million attacks and 2.2 million wallets. Losses on Ethereum are even more substantial: according to EigenPhi, traders lost approximately $60 million to sandwich attacks in the 12 months leading up to October 2025. This figure does not account for other MEV strategies such as front-running and backrunning.

    The operational logic of Aptos’s Encrypted Mempool involves four key steps. Users, through compatible wallets or applications, encrypt their transaction details on their local devices before submission. After encryption, only the sender’s address and gas fee are visible; core information such as assets, amounts, and contract interactions are masked.

    Encrypted transactions then enter the mempool for queuing. Validators sort these transactions but cannot see their content, a process referred to as “blind sorting.” Once the sorting order is determined, all validators collectively decrypt these transactions before execution and on-chain recording. Throughout this entire process, no single node can independently decrypt pending transactions, thus preventing malicious actions by insiders.

    According to Aptos developer documentation, the minimum gas price for encrypted transactions is double the network’s baseline minimum. In test environments with 50 nodes, this feature introduced approximately 20 milliseconds of additional latency per block. This cost is exchanged for the privacy of transaction details, a premium considered acceptable for institutional large orders or high-frequency trading strategies.

    Encrypted mempools are not an entirely new concept. Gnosis Chain implemented an encrypted mempool in July 2024 via the Shutter protocol, and Ethereum’s Flashbots Protect routes transactions privately to block builders, bypassing the public mempool. Both solutions have proven effective but rely on additional infrastructure: Shutter utilizes an independent decryption committee, while Flashbots depends on trusted builders.

    Aptos’s design differs by having existing validators handle both sorting and decryption simultaneously. This eliminates the need for third-party nodes or additional trust assumptions, offering a more unified architecture. However, it also means that the security ceiling is directly determined by the scale and honesty of the validator community.

    Data indicates that MEV attacks are no longer a fringe issue. The figures of $60 million on Ethereum and $29.7 million on Solana demonstrate that this is a mature and systematic industry, rather than isolated incidents. By integrating an encrypted mempool into the public chain layer, Aptos signifies that a new wave of Layer 1 projects are designing transaction privacy as fundamental infrastructure, rather than an afterthought for dApps or third-party tools.

    Future observations will focus on two key areas. Firstly, adoption rates: will institutional investors, AI agents, and large-volume traders genuinely utilize this feature? If only a small number of users adopt it, the volume of encrypted transactions may be insufficient to validate its economic viability and security. Secondly, regulatory implications: encrypted transaction details could create a gray area for anti-money laundering (AML) and law enforcement investigations, particularly when decryption occurs after transaction ordering. The question remains whether regulators can effectively trace these transactions. These two points will determine whether encrypted mempools become a mainstream standard or remain a niche functionality.

  • ScopeLift CEO Suggests Regulatory Landscape Shift May Impact Governance Token Value

    ScopeLift CEO Suggests Regulatory Landscape Shift May Impact Governance Token Value

    The regulatory justification for designing governance tokens to capture little or no value is diminishing, according to ScopeLift CEO Ben DiFrancesco. This potential shift could redefine governance tokens from an investor perk to a security requirement for decentralized protocols.

    DiFrancesco stated on the “Uneasy Money” show of the Unchained podcast that the market value of governance tokens must exceed the potential gains from an attack to secure protocols. This perspective reframes token value as a critical component of a protocol’s threat model, rather than solely an incentive for holders.

    Governance tokens grant users voting power over a protocol’s treasury, parameters, and contracts. A key security concern arises when the market value of tokens required to control a protocol is lower than the assets those tokens can influence. In such scenarios, hostile takeovers become a rational possibility, as highlighted by DiFrancesco.

    For somewhere between four and ten years, fear of regulatory consequences has significantly influenced the design choices for Decentralized Autonomous Organizations (DAOs) and their associated tokens. Projects often sought to distance themselves from direct revenue or cash flow to avoid scrutiny from bodies like the SEC, hoping this separation would keep them clear of securities law. This coincided with many tokens being deliberately designed to capture minimal value.

    However, DiFrancesco argued that this regulatory cover is fading. If the justification for avoiding mechanisms like fee switches, revenue sharing, and buybacks diminishes, token holders may increasingly push for these value-capturing features. This could alter the incentives behind DAO formation, potentially reducing the influence of venture capital firms eager to invest in tokens and projects seeking regulatory shelter.

    ScopeLift, a company specializing in onchain governance tooling, has a direct interest in this evolving landscape. The company took over operations of the Tally platform in late March 2026, after Tally announced it was winding down. The Tally platform, now rebranded as Cactus, supports over 400 DAOs, underscoring the widespread reliance on governance infrastructure.

    DiFrancesco’s comments, made during an October 8, 2026, podcast discussion and expanded upon in a May 13, 2026, ScopeLift blog post, suggest a potential recalibration for the industry. Protocols with large treasuries of stablecoins or blue-chip assets governed by thinly traded tokens may face heightened risks of hostile takeovers if their governance tokens do not demonstrate sufficient market value relative to the assets they control.

    The first question for protocols, according to this evolving perspective, is whether the market value of their governance token comfortably exceeds what a successful attack could extract. This marks a significant shift from past design considerations, where regulatory avoidance often took precedence over inherent token value as a security measure.

    Why This Matters

    The materials describe a narrow update: ScopeLift CEO Ben DiFrancesco stated that the regulatory justification for designing governance tokens to capture little or no value is diminishing. The exact duration of regulatory influence on DAO and token design (stated as ‘somewhere between 4 and 10 years’).

    Broader Context

    Source materials place the factual news in this context: Governance tokens have spent years in an odd position. They hold the keys to protocols managing serious money, yet many were deliberately designed to capture little or no value.

  • Aptos Launches Encrypted Mempool to Combat Frontrunning

    Aptos Launches Encrypted Mempool to Combat Frontrunning

    Aptos Blockchain Introduces Encrypted Mempool to Combat MEV Attacks

    Layer-1 blockchain Aptos has rolled out a new optional feature designed to shield traders from maximal extractable value (MEV) exploits, such as frontrunning and sandwich attacks.

    The Encrypted Mempool, now live on Aptos’ mainnet, allows users to opt-in to encrypt pending transaction details until their order within a block is finalized. Aptos stated the feature is particularly beneficial for institutions handling large transactions, traders seeking to mitigate MEV risks, and AI agents and builders.

    “On any major blockchain today, anyone monitoring the network can see transaction details before they are executed – the function being called, the assets and amounts involved, and the contracts being interacted with,” Aptos explained. “Bots leverage this visibility to trade against you or replicate your strategies.”

    MEV attacks, including sandwich attacks, have proven costly. Cointelegraph’s analysis of EigenPhi data indicated that Ethereum traders lost approximately $60 million to sandwich attacks in the 12 months leading up to October 2025. On Solana, a Bitquery examination of an 11-month period revealed that sandwich attacks generated $29.7 million for bots, with nearly 6.9 million such attacks impacting around 2.2 million wallets.

    When a user enables the Encrypted Mempool, a compatible wallet or application encrypts the transaction’s contents on their device before submitting it to Aptos. While sensitive details like assets and amounts remain hidden, the sender’s address and gas fee are still visible.

    The encrypted transaction then enters the mempool, a holding area for pending transactions awaiting inclusion in a block. Validators determine the order of these transactions without access to their contents.

    Once the transaction order is confirmed, validators collectively decrypt the transactions, which are then executed and recorded on the blockchain. Crucially, no single validator possesses the ability to decrypt a pending transaction independently.

    By concealing transaction details until their order is set, the feature aims to prevent bots from observing pending orders and inserting their own trades ahead of or around them to profit at the expense of users.

    This enhanced security comes with additional costs and a minor delay. According to Aptos’ developer documentation, encrypted transactions incur a minimum gas price double the network’s base minimum. In tests involving 50 nodes, Aptos reported that the system added approximately 20 milliseconds per block compared to the existing consensus implementation.

    Aptos joins a growing number of networks offering protection against malicious MEV. Gnosis Chain launched its own encrypted mempool using Shutter in July 2024, and Ethereum’s Flashbots Protect routes transactions privately to block builders. Aptos differentiates itself by having its existing validators manage both transaction ordering and decryption, rather than relying on a separate decryption committee or trusted builders.