The past week was eventful: Bitcoin once again took center stage after the Fed Chair's speech, Solana made an important decision on inflation, and StarkWare achieved a technological breakthrough by conducting the first quantum-resistant transaction on the network of the leading cryptocurrency.
Bitcoin: Volatility and the Macroeconomic Factor
The leading cryptocurrency attempted to storm $81,000, reaching $81,354 on Binance. However, on Friday, after a speech by Fed Chair Kevin Warsh, the price sharply dropped below $76,000. The regulator's head reaffirmed commitment to the 2% inflation target, noting that weak summer data does not indicate an improvement in the underlying trend. This statement triggered a shift in expectations: the probability of a rate hike at the September meeting rose from 35.4% to 57% within a day.
At the time of writing this analysis, Bitcoin has recovered to $79,000, gaining more than 1.5% over 24 hours and maintaining a weekly gain of nearly 2%. Inflows into spot Bitcoin ETFs slowed to $934.5 million, compared to $1.92 billion the previous week, and on Friday investors withdrew $202 million, breaking a nine-day streak of inflows. Ethereum funds, in contrast, saw inflows rise to $824.4 million.
The Quantum Frontier: StarkWare and Ethereum
On August 26, StarkWare engineers conducted the first transaction on the Bitcoin mainnet resistant to attacks from quantum computers. The experiment, part of the Quantum Safe Bitcoin (QSB) scheme, did not require consensus changes. The method is based on signature grinding using hash functions, allowing coins to be moved to a protected output. For now, the technique remains expensive and slow: preparing an operation takes hours and costs hundreds of dollars. It is important to understand: this is an emergency measure, not full post-quantum protection for the entire network.
In parallel, Ethereum developers proposed a new version of the deposit contract that would allow a future transition to post-quantum signatures without reworking the infrastructure. The initiative introduces a flexible key format and cryptoscheme identifiers, laying the groundwork for upcoming changes.
Solana: Accelerated Disinflation
The Solana community approved proposal SGP-0002, doubling the annual inflation reduction rate from 15% to 30%. The 1.5% target will be reached in 2.8 years instead of 5.7. This will reduce issuance by approximately 18.9 million SOL over six years. However, nominal staking yields will decline from the current 5.84% to 4.34% in the first year, and further to 3% and 2.25%.
Expert Perspective
Quantum-resistant transactions are not just a technological curiosity but a signal of the industry's maturity. Infrastructure is preparing for future threats, and projects that build in such protection now will gain a competitive advantage. As for Solana, accelerated disinflation is a sensible step to reduce seller pressure, but investors should revise their expectations for staking returns.