The value of crypto comes from the massive markets it aims to disrupt, not small, niche plays, the report said.
The bank's analysts said the GENIUS Act has fueled a 42% jump in stablecoin growth this year, with Circle’s USDC chipping away at Tether’s dominance.
The firm has opportunities in three areas: crypto infrastructure, stablecoin payments and its bitcoin treasury strategy.
The broker maintained its buy rating on the stock and raised its price objective to $16 from $12.
The network secures $103 billion across more than 2,500 projects with partners such as Swift, DTCC and JPMorgan.
Alongside, JPMorgan downgraded IREN and CleanSpark
Digital asset treasuries are now allocating to ether at scale, creating structural demand that exceeds new supply, the report said.
The broker hiked its IREN price target to $75 from $20 while reiterating its outperform rating on the stock.
Semler (SMLR) rose to just $32.06 yesterday even as the implied acquisition value was above $86, an unusually wide arbitrage spread, said analyst Mark Palmer.
As investors look for alternatives to traditional assets, bitcoin could evolve from a speculative bet into a legitimate pillar of the global financial system, the bank said.
Jefferies says most institutional investors remain on the sidelines despite growing token infrastructure, but that's changing, and it's a good thing for the industry.
Without significant expansion, the new wave of stablecoin launches may simply redistribute market share rather than grow the pie, said the bank.
Wall Street analysts see upside in Bullish’s early execution, citing accelerating SS&O growth, regulatory progress and options trading on the horizon.
Network activity remains the key driver of ether’s value, but much of the recent growth has been on layer-2s, the report noted.
U.S.-listed mining companies accounted for 26% of the Bitcoin network last month, unchanged from July, the report said.
The strongest DATs will be those with cheap funding, scale, and staking yield, which favors ether and solana treasuries over bitcoin, analyst Geoff Kendrick said.
A mix of strong liquidity, a benign macro backdrop and supportive regulatory signals could keep the crypto market rally alive in the fourth quarter, the report said.
The company's bid to join the S&P 500 index was rejected, despite meeting eligibility criteria, the report said.
Institutions hold about 25% of bitcoin ETPs, and according to one survey, 85% of firms already allocate to digital assets or plan to in 2025.
One of the most important benefits these vehicles offer is enhanced liquidity, the report said.
Tokenized money market funds are expected to lead adoption thanks to their attractive yields relative to stablecoins, the report said.
The combined market cap of the 13 U.S.-listed bitcoin miners the bank tracks reached a record high last month.
Analyst Mark Palmer reiterated his buy rating and $705 price target on the Michael Saylor-led company, which is more than a double from current levels.
The broker noted IREN's recent designation as an NVIDIA preferred partner, which came almost simultaneously with the announcement of the purchase of an additional 2,400 GPUs.
Bitcoin volatility has plummeted from around 60% at the beginning
of the year to a current record low of 30%, the report said.
Benchmark analyst Mark Palmer hiked his Hut 8 price target to $36 from $33, while reiterating his buy rating on the stock.
Since the beginning of June, ether treasury companies and ETH ETFs have purchased a massive 4.9% of the crypto's circulation, the bank's Geoff Kendrick said.
Institutional adoption, inflation-hedge demand, and the nature of bitcoin’s fixed supply, will propel the cryptocurrency to new highs, the report said.
Regulatory uncertainty, volatility, and liquidity challenges, could all elevate the credit risk profile of firms adopting a crypto treasury strategy, the report said.
Stablecoin demand for Treasuries won’t meaningfully shift T-bill dynamics, but instead poses a bigger challenge to money market funds, the report said.