Weekly DeFi Index

This week, market cap and volume indices decreased by -6.17% and -23.83%, respectively, while the volatility index grew by +6.59%.

• Franklin Templeton and Ondo Finance (ONDO) partnered to launch five tokenized ETFs, enabling non-U.S. investors in Europe, Asia-Pacific, and Latin America to trade U.S. equities, bonds, and gold 24/7 via crypto wallets.
• Lido DAO (LDO) proposed a $20 million LDO token buyback program to stabilize and support the token's value following a prolonged price decline, highlighting the governance challenges in liquid staking protocols.
• Aave (AAVE) launched its V4 iteration on Ethereum, designed to expand decentralized lending into real-world credit markets.

Chart of the Week

Google Quantum AI revealed that future quantum computers could break the elliptic curve cryptography (ECC-256) used in blockchains (like Bitcoin and Ethereum) with far fewer resources than previously thought.

A new whitepaper demonstrates that Shor’s algorithm can solve the 256-bit Elliptic Curve Discrete Logarithm Problem (ECDLP-256) using as few as 500,000 physical qubits (the physical system used to store a quantum state)  in a few minutes — representing a 20-fold reduction from prior requirements. The research outlines two optimized circuits: one requiring fewer than 1,200 logical qubits and 90 million Toffoli gates, and another utilizing 1,450 logical qubits and 70 million Toffoli gates. Consequently, Google is urging the crypto community to adopt post-quantum cryptography (PQC) ahead of its 2029 migration timeline.

Based on this research, roughly 6.9 million BTC — including Satoshi Nakamoto's fortune and millions held in reused "legacy" addresses — are classified as high or critical risk. Ethereum’s combined exposure is estimated at over $100 billion, suggesting that the ripple effects could be significantly more extensive.

At the same time, another paper by Caltech and quantum startup Oratomic estimates that roughly 26,000 qubits could break ECC-256 in around 10 days. The minimum threshold has been pushed down to as few as 10,000 physical qubits, collapsing prior estimates that ran into the hundreds of thousands.

News Highlights

• Aztec launched its Alpha network, an Ethereum L2 that supports private smart contracts — a technical step toward enabling confidential transactions and data privacy on-chain.
• Ethereum Foundation staked an additional $42 million in ETH, demonstrating its continued commitment to securing the network and validating the long-term utility of Proof of Stake.
• LayerZero integrated with the Canton Network as its first interoperability protocol, and aims to streamline asset and data movement between institutional private blockchains and public networks.
• Resolv's co-founder pledged 1:1 redemptions for all USR holders affected by a recent exploit, an effort intended to maintain trust and restore the stability of the protocol's stablecoin peg.

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