📊 Crypto Trading Signals - October 20, 2025

🔥 Top Stories

1. Cap stablecoin reaches $300M in TVL on Ethereum

Source: 𝕏/@capmoney_

🏷️ Ethereum • Stablecoins • TVL

"Bullish 🔥🔥🔥"
— @Danicjade

2. NYDIG Says Stablecoins’ $1 Peg Is a ‘Myth’ After $500B Crypto Crash, arguing that tokens like USDC, USDT, and USDe merely *float on supply and demand*—not true dollar pegs—as last week’s sell-off exposed their fragility, with some plunging as low as $0.65.

Source: Coindesk

🏷️ $USDC • $USDT • $USDe

"Well, is that why they are creating more stables "
— @Danicjade

3. New Proposals Aim to Scale crvUSD and Expand Yield Basis Capacity — Plans include boosting Curve DAO’s YB incentives up to 360K YB/week, raising PegKeeper limits from $108M to $300M, and allocating $1B crvUSD to Yield Basis to unlock $500M capacity, strengthening peg stability and system value ahead of broader scaling.

Source: gov.curve.finance

🏷️ $crvUSD • Curve • Unlock

"Curve is getting serious. GOOD moves coming for crvUSD and YB🔥🔥 "
— @Danicjade

4. $3M XRP Theft From Ellipal Wallet Traced After Viral Video, as blockchain sleuths uncover attacker’s trail converting funds through 120+ Ripple-to-Tron swaps via Bridgers (formerly SWFT). The U.S.-based victim’s loss highlights how user error and poor wallet security remain leading causes of large-scale crypto thefts.

Source: 𝕏/@zachxbt

🏷️ Ripple • $XRP • $Tron

"Zach has done it again. He is just too good "
— @Danicjade

5. Ant Group and JD.com have paused their Hong Kong stablecoin plans after Beijing raised concerns about private firms issuing digital currencies, tightening control over offshore crypto activities.

Source: CoinTelegraph

🏷️ Stablecoins • Crypto • Hong Kong

"Great no need for more stables! But on the other hand they will all blow up and go to 0 sooner than later anyway."
— @Milkmaster7

🎯 Trading Signals

Lead Story Deep Dive: The Stablecoin Peg Is Dead (And It Never Existed)

NYDIG just dropped a truth bomb that every degen knows but few want to admit: stablecoins don't actually peg to $1. They float around it based on supply and demand, and last week's $500B market implosion exposed this fiction brutally. USDC, USDT, and USDe all ate dirt—some crashed to $0.65—because when liquidity dries up and everyone rushes for the exits simultaneously, those algorithmic stabilization mechanisms and reserve ratios become theoretical exercises.

Here's what NYDIG is really saying: the entire stablecoin infrastructure is built on confidence and market depth, not mathematical certainty. During normal conditions, arbitrage traders keep prices tight to $1 because the spreads are profitable. But when volatility spikes and risk-off sentiment dominates, those arb traders disappear faster than exit liquidity on a Sunday night. The peg isn't maintained by reserves alone—it's maintained by continuous market-making that evaporates precisely when you need it most.

This matters because stablecoins are the circulatory system of crypto. If they can depeg 35% during stress, every DeFi protocol's collateral assumptions become suspect. Lending platforms, DEXs, derivatives—they all assume stablecoins stay stable. When that assumption breaks, cascading liquidations turn market corrections into market massacres.

The timing of this analysis is crucial. We're seeing $300M flow into Cap stablecoin on Ethereum while Curve is proposing to scale crvUSD capacity to $1B. Everyone's building stablecoin infrastructure while NYDIG is pointing out the foundation is shakier than advertised. Classic crypto.

Other Trends We Noticed

The Stablecoin Wars Are Getting Weird

While NYDIG is deconstructing the peg myth, the market is simultaneously doubling down on stablecoin innovation. Curve wants to pump PegKeeper limits from $108M to $300M and allocate $1B to Yield Basis for that sweet $500M capacity unlock. They're literally naming the mechanism "PegKeeper" while the industry debates whether pegs exist.

Meanwhile, China just kneecapped Ant Group and JD.com's Hong Kong stablecoin plans because Beijing isn't about to let private companies issue dollar-adjacent instruments offshore. This is the CCP doing what it does best—maintaining absolute control over monetary flows while everyone else experiments with decentralized alternatives. The contrast couldn't be starker: Western protocols racing to expand stablecoin capacity while China tightens the noose.

Regulatory Tectonic Shifts

Japan's

Generated by Squid Digest - AI-powered trading signals for crypto natives