Crypto Weekly Digest: September 1-7, 2025 - Major Developments in Bitcoin, Starknet, and Stablecoins

• BitPanda Sponsors This Week's Crypto Digest
• MicroStrategy Nears S&P 500 Inclusion After Record Bitcoin Profits
• Starknet Resumes Operations After 14-Hour Network Outage
• Trump-Backed WLFI Token Implements Buyback After Rocky Launch
• Stripe and Paradigm Unveil Tempo - A Stablecoin-Optimized Blockchain
• Hyperliquid to Launch USDH Stablecoin via Validator Vote
• Gemini Targets $2.22 Billion Valuation in NYSE IPO
• Galaxy Digital Tokenizes Shares on Solana via Superstate
• Nasdaq Tightens Rules Against Micro-Cap Crypto Pump-and-Dumps
• Weekly Crypto Briefs
• Crypto Weekly Q&A

MicroStrategy's potential S&P 500 inclusion, Starknet's network recovery after a major outage, and significant stablecoin innovations from Stripe and Hyperliquid. Meanwhile, political tokens made waves with controversial moves, and traditional finance continued its crypto embrace with Galaxy Digital's stock tokenization and Gemini's upcoming IPO.

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In what could become a watershed moment for bitcoin adoption, MicroStrategy (now rebranded as Strategy) has met all requirements for potential inclusion in the S&P 500 index following its second consecutive record quarter. The company reported $10 billion in net profits primarily from its massive Bitcoin holdings, which now exceed 250,000 BTC.

The 2025 accounting changes that allow companies to recognize Bitcoin holdings at market value have transformed Strategy's balance sheet. The company's Bitcoin-adjusted EPS (Earnings Per Share) has skyrocketed, making it one of the most profitable firms by this metric.

"This WOULD mark the first time a company whose primary asset is Bitcoin joins the S&P 500," noted BTCC analyst Mark Chen. "It represents a fundamental shift in how Wall Street views crypto assets."

The S&P committee's decision is expected this Friday. If approved, Strategy would transition from being seen as an alternative asset play to a mainstream investment, potentially forcing thousands of institutional funds to gain Bitcoin exposure through index tracking.

Starknet Resumes Operations After 14-Hour Network Outage

Ethereum Layer 2 solution Starknet experienced a complete network halt on September 2, freezing block production for nearly 14 hours. The outage occurred during migration to a new decentralized sequencer system implemented in Starknet's September 2025 upgrade.

The upgrade introduced several major changes:

• Decentralized sequencing with three Tendermint nodes
• Near-instant pre-confirmations (
• EIP-1559-inspired fee market
• Optimized mempool architecture

According to the Starknet Foundation, the outage resulted from compatibility issues between the new sequencer and legacy Cairo 0.x smart contracts still operating on the network. Engineers performed an emergency rollback to restore service, requiring users to resubmit transactions made during the outage window.

"Starknet is now fully operational," the team tweeted, promising a full post-mortem report. The incident highlights the growing pains of decentralizing ethereum scaling solutions while maintaining backward compatibility.

Trump-Backed WLFI Token Implements Buyback After Rocky Launch

The World Liberty Financial (WLFI) token, endorsed by Donald Trump, has launched a $500 million buyback program following a 34% price crash hours after its debut. The project will use protocol revenue to repurchase and burn tokens weekly, aiming to stabilize prices and reward long-term holders.

In a dramatic twist, WLFI froze 3 billion tokens belonging to early investor Justin Sun, citing "suspicious transaction patterns." The MOVE has sparked debate about decentralization principles, as the supposedly "trustless" protocol demonstrated significant centralized control.

Sun called the action "unprecedented overreach" and demanded token release, arguing it violates blockchain's Core tenets. Meanwhile, WLFI's trading volume has surged to $2.8 billion daily as speculators bet on the outcome of this power struggle.

Stripe and Paradigm Unveil Tempo - A Stablecoin-Optimized Blockchain

Payment giant Stripe and crypto VC Paradigm have launched Tempo, a new blockchain specifically designed for stablecoin transactions. The network boasts 50,000 TPS with sub-second finality, outperforming even Solana's high-speed infrastructure.

Tempo's key innovations include:

• Native stablecoin swap functionality
• No proprietary token requirement
• Institutional-grade validator set
• SEC-compliant governance framework

Backed by Circle, Paxos, and major banks, Tempo aims to become the backbone for global stablecoin transactions as the market approaches $3 trillion in value. Early tests show USDC transfers settling in 0.4 seconds at $0.0001 fees.

Hyperliquid to Launch USDH Stablecoin via Validator Vote

Perpetuals DEX Hyperliquid announced plans to launch its native USDH stablecoin, with protocol validators voting to select the development team. The move comes alongside major fee reforms and new slashing mechanisms to secure the network.

"USDH won't just be another stablecoin," said Hyperliquid founder Jeff Wu. "It will be deeply integrated with our derivatives ecosystem, offering capital efficiency no CeFi platform can match."

The project has reserved the USDH ticker and will release governance details next week. Market makers anticipate strong demand given Hyperliquid's $12 billion in open interest.

Gemini Targets $2.22 Billion Valuation in NYSE IPO

The Winklevoss twins' crypto exchange has filed for a U.S. public listing, seeking a $2.22 billion valuation. Goldman Sachs and JPMorgan are leading the offering, which comes after Gemini secured Europe's MiCA license in August.

Despite 2024 revenues of $780 million (up 42% YoY), Gemini trails Coinbase's $4.1 billion. The IPO represents a test case for crypto exchanges regaining Wall Street trust post-FTX.

Galaxy Digital Tokenizes Shares on Solana via Superstate

Mike Novogratz's Galaxy Digital has become the first public company to tokenize its shares directly on solana through Superstate's Opening Bell platform. These SEC-registered tokens provide full equity rights while enabling 24/7 on-chain trading.

"This bridges TradFi and DeFi without synthetic wrappers," Novogratz explained. The move follows Galaxy's $65 million investment in Solana ecosystem projects last quarter.

Nasdaq Tightens Rules Against Micro-Cap Crypto Pump-and-Dumps

The exchange has implemented stricter listing requirements to combat penny stock-style manipulation in crypto equities. New rules mandate:

• $50 million minimum public float
• $25 million minimum IPO raises from risky jurisdictions
• Enhanced disclosure for shell company reversals

SEC data shows crypto-related pump-and-dump complaints surged 300% in 2024, costing retail investors an estimated $430 million.

Weekly Crypto Briefs

• Ethereum whale moves $4B BTC to ETH, surpassing Sharplink Capital
• Revolut allows employee stock sales at $75B valuation
• Ethereum Foundation prepares to sell 10,000 ETH ($43M)
• Bitcoin mining difficulty hits new ATH at 86T

Crypto Weekly Q&A

What's the significance of MicroStrategy's potential S&P 500 inclusion?

This would mark the first Bitcoin-focused company joining the benchmark index, forcing thousands of institutional funds to gain BTC exposure and validating Bitcoin as a corporate treasury asset.

How does Tempo blockchain differ from other stablecoin platforms?

Tempo offers native stablecoin swaps without requiring a proprietary token, with institutional-grade validators and regulatory compliance built into its architecture from day one.

Why did WLFI freeze Justin Sun's tokens?

The project cited suspicious transactions but provided limited evidence, raising concerns about centralized control in supposedly decentralized projects.