# 48H Web3 News Recap #561

Web3 News Recap, edition 561. Published 2026-10-26. 8 min read. Canonical page: https://www.w3match.com/reports/recap-2026-10-26

Top stories: SpaceX closes $40B in debt to buy AI chips; Lula wins Brazil's runoff for a fourth term; Crypto longs lose $404M in four hours.

## Key numbers
- **Fear & Greed Index:** 50/100 (alternative.me, 2026-10-26; Neutral, 54 yesterday)

## Macro & Global Markets

**Lula wins Brazil's runoff with about 51.8%, beating Flávio Bolsonaro for a fourth term**

With 100% of votes counted, the electoral court put Lula about 4.4 million votes ahead, at 51.8% to 48.2%. He trailed in the first round on October 4, when Flávio Bolsonaro took 47.03% to his 45.16%. It is the first time since Brazil's return to democracy that a first-round loser has won the runoff. Flávio Bolsonaro, a senator and ally of Donald Trump, has not recognized the result. Lula's new term begins on January 5, 2027.

Source: [NPR](https://www.npr.org/2026/10/25/nx-s1-6016299/brazil-lula-bolsonaro-election)

**Brent falls about 2% to near $114 on Monday, down from a six-month high**

The drop came during Monday's Asian session, as investors cut risk before the Fed decision on Wednesday. South Korea's Kospi fell about 1% after Goldman Sachs cut its 12-month target by 25%. The MSCI Asia Pacific Index slipped 0.1%, extending its losing run to four straight weeks, and Nasdaq 100 futures eased 0.1%.

Source: [CoinDesk](https://www.coindesk.com/markets/2026/10/26/bitcoin-slips-under-usd80-000-as-traders-de-risk-ahead-of-fed-meeting)

## Market & Sentiment

**Bitcoin slips below $80,000 to about $79,800 ahead of Wednesday's Fed decision**

BTC fell nearly 2% in Monday's Asian trading, while ETH dropped almost 3% to just above $2,300 and SOL barely held $100\. Bitcoin lost the $82,500 floor last Thursday and needs to reclaim it for buyers to call the drop a pause. The Fed announces its rate decision on Wednesday, October 28, and traders are watching Chair Kevin Warsh's press conference for hints of a December hike. TRX was the only major token in the green.

Source: [CoinDesk](https://www.coindesk.com/markets/2026/10/26/bitcoin-slips-under-usd80-000-as-traders-de-risk-ahead-of-fed-meeting)

**Crypto longs lose $404M in four hours Saturday as Bitcoin briefly hits $79,280**

• Total liquidations in the four hours to 1 p.m. ET reached $436.44M, per CoinGlass data

• A single 15-minute burst at 10:15 a.m. ET wiped out $208.21M in longs

• It was the largest four-hour long wipeout since the night of October 14 ($505.57M)

• Bitcoin positions lost $158.45M and ether positions $136.72M; Binance saw $226.07M and Hyperliquid $70.47M

• Over 24 hours, liquidations hit $815.26M across 201,012 traders, and open interest fell 2.2% to $140.10B

Source: [The Block](https://www.theblock.co/news/markets/2026-10-24-crypto-longs-lose-404-million-in-four-hours-as-bitcoin-briefly-slips-below-80000-431608)

## Regulatory Developments

**Canada proposes a 1% cap on stablecoin redemption fees, with no minimum amount**

The draft rules were published in the Canada Gazette on October 24 under the Stablecoin Act, which received royal assent on March 26 but is not yet in force. Holders could redeem at par in the currency the coin tracks, and a small balance would no longer be a valid reason to refuse. Redemptions would normally settle within three business days, and issuers would need reserves at least equal to outstanding par value. Issuers must post seven days' notice before raising redemption fees. The consultation runs 60 days, and the framework is meant to take effect in fall 2027.

Source: [CryptoSlate](https://cryptoslate.com/canada-proposes-direct-stablecoin-cash-outs-for-small-holders-with-a-1-fee-cap/)

**South Korea's ruling party seeks to delay the 22% crypto tax from 2027 to 2029**

The presidential office backed another postponement on October 25, and Democratic Party lawmakers have introduced a bill for it. Under current law the tax starts on January 1, 2027, at 20% national plus 2% local income tax on yearly crypto gains above a 2.5 million won allowance. The opposition People Power Party also supports a delay, with some members seeking repeal. Lawmakers could take up the change during November's tax law review, and parliament must pass it before January 2027.

Source: [crypto.news](https://crypto.news/south-korea-crypto-tax-delay-2029/)

## Stablecoins & Payments

**Solana adds $22M in euro stablecoins in a week, more than all other chains combined**

Token Terminal data for the week ending October 25 shows the gain beat the combined growth of every other tracked network. The whole euro stablecoin market is estimated at $835M to $916M, and Solana holds about 14% of it, second behind Ethereum. Euro coins on Solana include Circle's EURC, Société Générale Forge's EURCV and AllUnity's EURAU, all issued under MiCA. Total stablecoin value on Solana exceeds $15B, held by more than 14M addresses.

Source: [Crypto Briefing](https://cryptobriefing.com/solana-euro-stablecoins-22m-one-week/)

**Ducat brings its UNIT stablecoin to Cashu ecash, with over $300M UNIT minted**

Users deposit UNIT into the Ducat Cashu mint and receive Turbo UNIT, which can be sent peer to peer by message or QR code without an onchain transaction. UNIT is a Bitcoin-overcollateralized dollar stablecoin issued with the Runes standard, requiring at least 160% collateral and liquidating at 135%. Collateral and issuance stay on Bitcoin, while Cashu handles only payments. Turbo UNIT holders rely on the Ducat mint to honor redemptions, unlike the non-custodial Taproot vaults. Ducat says more than $700M in BTC has been vaulted since its closed mainnet alpha earlier in 2026.

Source: [Crypto Briefing](https://cryptobriefing.com/ducat-unit-stablecoin-cashu-turbo-unit/)

## Exploits & Vulnerabilities

**Electrum 4.8.3 fixes a bug that let rogue servers steal fee-bumped Bitcoin payments**

• Developers received theft reports on October 11 and October 18 and shipped the fix with the disclosure on October 24

• Older versions did not verify signatures on pending transactions served by outside servers

• A malicious server could swap a pending payment for a fake one paying the attacker

• When the user raised the fee with Replace-by-Fee, Electrum signed a valid replacement sending coins to the attacker

• Attackers used addresses whose last four characters matched the real destination

• Total losses are undisclosed; users on trusted or self-run servers were not exposed

Source: [CoinDesk](https://www.coindesk.com/tech/2026/10/26/bitcoin-wallet-bug-let-rogue-servers-steal-funds-when-users-tried-to-speed-up-payments)

**BloomTrading bot users lose 9,408 SOL, about $950,000, from 48 drained wallets**

The drains hit about 48 to 49 Solana wallets tied to the trading bot, with some users reporting personal losses up to $80,000\. Attackers took almost only SOL and reportedly left some USDC holdings untouched. Bloom says it is investigating a possible third-party compromise, while affected users blame the service itself. The cause has not been confirmed.

Source: [Crypto Briefing](https://cryptobriefing.com/bloomtrading-bot-users-wallet-drains/)

## AI & Crypto Convergence

**SpaceX closes $40B in debt to buy GPUs, Musk warns over 200 neoclouds will consolidate**

Musk confirmed the deal on October 25, describing it as mainly callable debt that SpaceX can repay early. The funds could cover GPU deliveries expected in the first half of 2027, and Reuters had earlier reported talks with banks and asset managers. Musk credited SpaceX's credit rating and steady Starlink and launch revenue. He wrote that debt markets have almost entirely shut off money for companies without substantial revenue outside AI data centers, leaving only a few survivors.

Source: [CoinDesk](https://www.coindesk.com/markets/2026/10/26/elon-musk-confirms-usd40-billion-spacex-debt-deal-for-ai-chips-warns-of-neocloud-shakeout)

**Tether signs 15 mining firms, including Bitmain and MicroBT, to build on its MDK software**

Tether announced the commitments on October 24 at the Plan B Forum in Lugano. The group also includes Bitdeer, Canaan, Foundry Digital, F2Pool, Luxor and OCEAN, and each will build an integration for the open-source Mining Development Kit. MDK launched in April and connects mining hardware and services through software components called Workers. Tether says its QVAC AI mining agent already runs on MDK, but it has published no deployment or performance figures. Version 1.0 is targeted before the end of 2026.

Source: [crypto.news](https://crypto.news/tether-15-bitcoin-mining-firms-ai-automation-mdk/)

## DeFi Protocols

**PancakeSwap tells CAKE holders to bridge off opBNB before November 23 as LayerZero exits**

The deadline is 00:00 UTC on November 23, after which the LayerZero-powered route that carries CAKE off opBNB shuts down. LayerZero is ending offchain support for opBNB, one of 13 networks facing reduced services since September 30\. The bridge moves CAKE 1:1 with no PancakeSwap fees. Separately, a governance proposal would cut daily CAKE emissions from 22,500 to 7,000 tokens and raise the LP share of fees to 88%.

Source: [Crypto Briefing](https://cryptobriefing.com/pancakeswap-cake-holders-bridge-opbnb-deadline/)

**Stablecoin deposits in DeFi reach $24B, up 560.8% in three years, Token Terminal shows**

• USDC holds about 38.2% of the total, roughly $9.2B

• USDT has about 20.3%, roughly $4.9B, and USDe about 9.0%, roughly $2.2B

• The $24B equals about 8% of a stablecoin market worth around $298.4B

• Aave V3, Morpho, Sky and Spark are among the main protocols holding the deposits

• DeFiStar.io data shows about $99.8M in net withdrawals from stablecoin lending pools over the past month

Source: [Crypto Briefing](https://cryptobriefing.com/stablecoin-deposits-defi-reach-24-billion/)

## RWA & Tokenization

**Latvia targets tokenization rules in early 2027, with commercial property and government bonds first**

Economics Minister Viktors Valainis told CoinDesk at the UN:BLOCK conference in Riga that regulation could arrive in the first half of 2027 if work goes smoothly. A legal assessment due October 1 under the government's action plan is still unfinished. Anti-money-laundering controls are the main concern. Valainis's party won no seats in the recent election, so the work may pass to the next government. About 40 companies are seeking MiCA licenses in Latvia.

Source: [CoinDesk](https://www.coindesk.com/business/2026/10/25/latvia-targets-tokenization-rules-in-2027-with-commercial-property-in-focus)

**Tokenized stocks in DeFi top $300M, up from about $22M in January**

• Growth since January works out to roughly 18 to 20 times in under a year, per the tallies cited

• DeFi TVL for tokenized equities stood at $248M to $313M in September and October

• Solana holds about $87M to $96M, Robinhood Chain $80M to $98M and BNB Chain about $36M

• xStocks accounts for about 58%, or $111M, spread across 15 protocols

• About 65% sits in liquidity pools and 28% in lending markets

• DeFi now holds 6% to 8% of the $3B to $3.8B onchain tokenized equity market, up from about 2% earlier in the year

Source: [Crypto Briefing](https://cryptobriefing.com/tokenized-stocks-defi-deposits-surge/)

## Whale Activity

**Arthur Hayes' Maelstrom sells about $22.28M in tokens, including 6,400 ETH, Lookonchain shows**

• 6,400 ETH worth about $15.2M

• 14M ENA worth about $2.76M

• 323,000 UNI worth about $2.24M

• 1.89M ETHFI worth about $1.23M

• Smaller sales of AERO, PENDLE and ZAMA

• Hayes said on X the sales were profit-taking from Maelstrom's directional book, citing macro and geopolitical risks

Source: [crypto.news](https://crypto.news/arthur-hayes-maelstrom-eth-defi-token-sales/)

**Wintermute sends 9,458 BTC worth $771.5M to 40 new wallets since October 1**

Lookonchain tracked the withdrawals from the market maker into newly created wallets, reported on October 24\. The $771.5M value implies about $81,571 per BTC and is a valuation, not a confirmed purchase price. Another tracker, Ash Crypto, put the month's accumulation at about $780M. The buyer behind the wallets has not been identified.

Source: [crypto.news](https://crypto.news/bitcoin-whales-780m-wintermute-withdrawals/)

## Sources
- [In stunning victory, Brazil's Lula wins fourth presidential term](https://www.npr.org/2026/10/25/nx-s1-6016299/brazil-lula-bolsonaro-election), npr.org, 2026-10-25
- [Bitcoin slips under $80,000 as traders de-risk ahead of Fed meeting](https://www.coindesk.com/markets/2026/10/26/bitcoin-slips-under-usd80-000-as-traders-de-risk-ahead-of-fed-meeting), coindesk.com, 2026-10-26
- [Crypto longs lose $404 million in four hours as bitcoin briefly slips below $80,000](https://www.theblock.co/news/markets/2026-10-24-crypto-longs-lose-404-million-in-four-hours-as-bitcoin-briefly-slips-below-80000-431608), theblock.co, 2026-10-24
- [Canada proposes direct stablecoin cash-outs for small holders with a 1% fee cap](https://cryptoslate.com/canada-proposes-direct-stablecoin-cash-outs-for-small-holders-with-a-1-fee-cap/), cryptoslate.com, 2026-10-24
- [Why does South Korea want to delay its crypto tax until 2029?](https://crypto.news/south-korea-crypto-tax-delay-2029/), crypto.news, 2026-10-25
- [Solana adds $22M in euro stablecoins in one week, outpacing every other chain](https://cryptobriefing.com/solana-euro-stablecoins-22m-one-week/), cryptobriefing.com, 2026-10-25
- [Ducat brings its UNIT stablecoin to Cashu ecash as Turbo UNIT](https://cryptobriefing.com/ducat-unit-stablecoin-cashu-turbo-unit/), cryptobriefing.com, 2026-10-24
- [Bitcoin wallet bug let rogue servers steal funds when users tried to speed up payments](https://www.coindesk.com/tech/2026/10/26/bitcoin-wallet-bug-let-rogue-servers-steal-funds-when-users-tried-to-speed-up-payments), coindesk.com, 2026-10-24
- [BloomTrading bot users lose nearly $1M as wallets get drained](https://cryptobriefing.com/bloomtrading-bot-users-wallet-drains/), cryptobriefing.com, 2026-10-26
- [Elon Musk issues a warning for 'AI neoclouds' as SpaceX borrows $40 billion for chips](https://www.coindesk.com/markets/2026/10/26/elon-musk-confirms-usd40-billion-spacex-debt-deal-for-ai-chips-warns-of-neocloud-shakeout), coindesk.com, 2026-10-25
- [Tether wins backing from 15 Bitcoin mining firms for AI automation tools](https://crypto.news/tether-15-bitcoin-mining-firms-ai-automation-mdk/), crypto.news, 2026-10-24
- [PancakeSwap tells CAKE holders on opBNB to bridge out before November 23](https://cryptobriefing.com/pancakeswap-cake-holders-bridge-opbnb-deadline/), cryptobriefing.com, 2026-10-26
- [Stablecoin deposits in DeFi hit $24B, up 560.8% in three years](https://cryptobriefing.com/stablecoin-deposits-defi-reach-24-billion/), cryptobriefing.com, 2026-10-25
- [Latvia targets tokenization rules in 2027 with commercial property in focus](https://www.coindesk.com/business/2026/10/25/latvia-targets-tokenization-rules-in-2027-with-commercial-property-in-focus), coindesk.com, 2026-10-25
- [Over $300M in tokenized stocks deposited into DeFi, up 2,451%](https://cryptobriefing.com/tokenized-stocks-defi-deposits-surge/), cryptobriefing.com, 2026-10-25
- [Arthur Hayes exits Maelstrom trades as $22.28m in token sales emerge](https://crypto.news/arthur-hayes-maelstrom-eth-defi-token-sales/), crypto.news, 2026-10-24
- [Bitcoin whales move $771.5M from Wintermute as buying claims spread](https://crypto.news/bitcoin-whales-780m-wintermute-withdrawals/), crypto.news, 2026-10-24

Every number names its provider and date. Not financial advice.