01 Introduction

2024, which belongs to the encryption world, is a "rational craze."

It is neither as absurd and chaotic as 2017, nor is it like Zootopia in 2021. If I had to use one word to summarize 2024, except for "rational fanaticism", everything else seems to be almost meaningless. But as 2024 comes to an end, it is obviously not satisfactory to use only one word to describe the encryption world this year.

The actors, from the character relationships to the plot settings, from the main plot twists to the hidden plot reversals, and even the behind-the-scenes and announcements, want to share everything with the people around them.

The encryption world in 2024 will be so exciting. As the protagonist of cryptography, Bitcoin leverages the mainstream financial market as an ETF. The public chain battle between Ethereum and Solanan becomes more and more fierce. Meme, which is already active, is growing rapidly with the support of Pump.fun. Witch purging activities and the FIT21 bill (21st Century Financial Innovation and Technology Act), the CZ case, etc., while stumbling forward, have added some brightness to the ups and downs of the encryption world.

02 About "Rational Fanaticism"

Fanasia breeds prosperity, and rationality activates value.

●The crypto world is wild in 2024:

● Bitcoin price from the beginning of the year ’s US$40,000 soared and broke through the historic barrier of US$100,000;

●● The number of global cryptocurrency holders reached 562 million, with a growth rate of 33.8%, accounting for 6.8% of the global population;

● In terms of financing, cryptocurrency start-ups The company's total financing has increased for two consecutive quarters, reaching US$2.4 billion in the first three months of 2024, and financing in the first quarter of 2024 increased by 40.3% year-on-year.

●The encryption world in 2024 is also rational:

● Technological innovation and application expansion will lead the popular narrative in the next year. The Crypto+AI field has achieved breakthroughs. The total market value of the crypto AI asset sector has exceeded US$70 billion during the year, and the number of related projects has exceeded 600; the market value of the RWA field has increased to 13.5 billion US dollars, and its application has been expanded to private credit, commodities and other fields;

● Even after experiencing a significant correction phase, the market still maintains strong vitality. At the beginning of the second quarter of 2024, the total market value of the crypto market fell to US$2.43 trillion, a decrease of 14.4%, but the average daily trading volume of the market was still stable at US$90.8 billion. High position;

● The global regulatory environment has improved significantly. The approval of Bitcoin and Ethereum ETFs has been a trigger. Regulators in various countries have increased their attention to the encryption market and promoted related improvements.

Under the fermentation of "rational enthusiasm", today's encryption world shows a development trend of rising market activity, accelerated technological innovation, clear investment pattern, and gradually improving regulatory environment. The vision that Satoshi Nakamoto stated in his white paper 16 years ago, fairness and freedom, is blossoming in the current crypto world.

Next, this article will take you to review the encryption world in 2024 through 6 keywords, and deeply explore the innovations contained in it in the "rational fanaticism" and thoughts, while also providing some value predictions about 2025.

Keyword 1

#digitalgold

In 2024, Bitcoin’s breakthrough will not only be reflected in price, but also in terms of technology, market and supervision. The interaction between price and the latter three makes Bitcoin’s “digital gold” even more important.

In terms of price, after experiencing a series of leading market trends such as the Spring Festival market and ETF approval, Bitcoin entered a period of shock until the end of the US election. Only then was the pressure released, and it successfully exceeded the $100,000 mark in the early morning of December 17.

From 2010 to the present, the price of Bitcoin has shown a significant upward trend as a whole, and the benefits brought by price increases continue to reflect the entire crypto world. Citibank analysts predict that cryptocurrencies will achieve strong growth in 2025, driven by factors such as Trump, increased ETF inflows, and stablecoin innovation.Strong growth. Bitcoin’s breakout above $100,000 may be just the beginning.

In terms of technology, the challenge that the Bitcoin network cannot avoid has always been its Scalability and transaction throughput. In 2024, affected by the popularity of Inscription, everyone began to explore more feasible Bitcoin network expansion plans other than the Lightning Network. The Bitcoin L2 track became very popular as a result, and related technical solutions such as state channels, side chains, and Rollup gained a lot of attention. Favored by investment banks.

At the beginning of 2024, a total of more than 100 Bitcoin L2 projects have been launched.

However, such periodic prosperity is not real prosperity.

Bitcoin L2 circumvents shortcomings such as transaction throughput limitations, high fees, and lack of Turing completeness through an independent execution environment, relying on the bridging mechanism and L1 builds asset links to achieve rapid verification, packaging and other operations of transactions, thereby improving the transaction throughput of the entire Bitcoin network. However, most Bitcoin L2 projects do not really solve the pain points of the main network.

Basically, they use Ethereum's "EVM-like architecture + cross-chain bridge" method to achieve expansion, and face many problems. After a wave of enthusiasm, the overall survival rate of the Bitcoin L2 project is only less than 20%.

Economy and Cost

●Bitcoin block space is scarce and the cost of publishing data is expensive . In a low-cost environment of 10sat/VB, the monthly cost of Rollups is US$460,000; in a high-cost environment of 50sat/VB, the monthly cost may exceed US$2.3 million;

● Lack of sustainable profit model.

From a long-term perspective, it is still necessary and important to explore the value of the Bitcoin network.

In 2025, only when the technology matures further can Bitcoin L2 achieve a major breakthrough. At the same time, after the pledge narrative solves core issues such as security and liquidity, the long-awaited activity of the Bitcoin ecosystem is also expected to be activated on a large scale.

In terms of market, on January 11, the US SEC approvedThe trading volume of 11 spot Bitcoin ETFs reached US$4.6 billion on the first day of listing. According to Bitcoin.com statistics, as of December 24, the US spot Bitcoin ETF holdings have exceeded 1.13 million BTC, which shows the gold-absorbing ability of digital gold.

The approval of spot Bitcoin ETF provides investors, especially investment institutions, with a legal way to invest in cryptocurrency. Cryptocurrencies have low correlations with traditional financial assets, so adding them to an investment portfolio can diversify risks to a certain extent. Traditional financial institutions have entered the market one after another, and a large amount of funds have begun to flow into the crypto market, accelerating the institutional-led investment pattern and indirectly promoting the improvement of relevant laws and regulations.

The regulatory direction is mainly affected by Trump's return to the White House, and the US cryptocurrency has turned from cautious to loose. In 2025, although the general benefits of encryption regulation are already certain, we cannot be overly ideal about the elimination of resistance. If cryptocurrency is to be widely used, there is still a long way to go in terms of regulatory integration and implementation.

The much-anticipated Bitcoin strategic reserve plan is likely to be difficult to implement. There are two main reasons:

It is difficult to implement the Bitcoin strategic reserve plan

● US Federal Total liabilities exceed US$36 trillion. Establishing a Bitcoin strategic reserve requires a large amount of capital investment. A Bitcoin reserve of at least 1 million coins poses a major risk to economic growth. This essentially conflicts with Trump’s strategy of developing the United States.

● The US dollar is a credit currency, and its value is maintained by the credit support of the United States. Although the status of the US dollar in the global economy has declined in recent years, it still maintains a certain status and strong dominance. The price of Bitcoin is highly unstable and lacks unified supervision. The most important point is that the decentralized nature of cryptocurrencies fundamentally challenges traditional currencies such as the U.S. dollar.

Therefore, no matter how much Trump talks, he cannot easily overturn the table of the US dollar system.

It is better to think from the perspective of being a large-scale cryptocurrency holder and advocate the inclusion of Bitcoin and others in strategic reserves to increase the value of cryptocurrency and attract More ordinary investors enter the market, thereby pushing up the price of cryptocurrency to achieve the purpose of profit for the interest class.

Remind investors that it is complex financial instruments and deceptive interest rate methods that drive the irrational prosperity of the crypto market.

Keyword 2

#broken·narrative

The encryption world in 2024 has reached a critical turning point. The prosperous era that relied solely on moving narratives is gradually fading away. After the advent of Bitcoin, the narrative of a decentralized electronic cash system opened the prologue to the crypto world.

In the following years, 1CO, 1EO, DeFi, NFT, Metaverse, L2, Web3, etc. appeared in turn. Many projects use high-yield incentives to attract funds under the guise of innovation, but behind them are actually empty business models. Once liquidity dries up, it collapses and investors lose everything.

The crypto market guided by the narrative is like a puppet being arbitrarily manipulated by a baton, swinging violently between illusory prosperity and cruel destruction, which makes investors They are gradually lost in the ups and downs, and the foundation of the entire crypto world's decentralized pursuit is crumbling under the excessive profit-seeking hype.

In 2024, participants who have experienced many rounds of bull and bear baptisms will become more mature and calm. The model of "story first, implementation later" has been abandoned by the market, and everyone is more Focus on the hard fundamentals rather than getting caught up in the narrative. The rise of modular blockchain, remortgage protocols, AI, and DePin have become key engines driving the development of the crypto world this year.

Efficiency innovation—modular blockchain

2024, modular blockchain The technology has received widespread attention, and its flexibility and scalability provide a solid foundation for building the next generation of decentralized applications. This concept, which was proposed in 2018, was first implemented in Ethereum. This year, it has achieved breakthroughs and innovative practices in RWA, AI and other fields.

The current mainstream blockchain network is generally a single blockchain, which usually independently undertakes functions at all levels of the network. The modular blockchain decomposes functions into specialized components, such as execution layer, consensus layer, data availability layer, etc. Each layer focuses on solving specific functions, thereby improving the overall performance and scalability of the blockchain network.

Through this layered architecture, the blockchain network can maintain decentralization and security whileImprove performance in time and become an important starting point to solve the impossible triangle. For example, when building financial applications, you can choose modules optimized for high-frequency transactions to improve transaction processing speed and throughput to meet the needs of large-scale, high-concurrency applications.

Therefore, in 2025, if innovative applications in the encryption world want to make breakthroughs, the following three points are critical: performance, scenario-based and elasticity. Not being constrained by infrastructure is true innovation, and it is also the key to integrating the encryption market into the mainstream.

Income appreciation—re-pledge agreement

The birth of the re-pledge agreement has injected new vitality into the encryption market in 2024, unlocking the multiple values ​​of assets.

Under the traditional Ethereum PoS mechanism, the assets pledged by users are basically "sleeping" during the lock-up period, resulting in a single income. With the help of the re-pledge platform, the verifier can point the beacon chain withdrawal certificate to its smart contract and re-invest the pledged ETH into oracles, middleware or even other public chains.

For example, the EigenLayer project pioneered in allowing Ethereum validators to make secondary use of pledged assets, breaking the previous static of "one pledge is guaranteed for life" for pledged assets. model.

On the one hand, the re-pledge agreement has brought more generous returns to investors. In addition to the income of about 3% from Ethereum's native pledge, after re-pledge, according to For different projects, the additional income can reach 5%-10%, realizing the superposition of income.

On the other hand, for projects such as connected Rollup applications, there is no need to build a complex verification system from scratch. With the help of Ethereum's powerful trust network, it can be verified at a lower cost. Improve its own security, attract more users and capital inflows, and create more value possibilities.

Reality Empowerment—DePIN

DePIN serves as a bridge connecting the physical world and the blockchain , especially in the Web3 field, it has been regarded as an important trend.

Since 2024, the number and types of DePIN projects have increased significantly. New generation lightweight DePIN projects have appeared frequently, and new collections such as AI, bracelets, and watches have been added. health data wearables toand a host of portable lightweight physical devices DePIN. In the classic Depin market, innovative applications have been realized in multiple fields such as computing, storage, network distribution, and artificial intelligence, and are spreading to various industries at an unprecedented speed, broadening the boundaries of encryption applications.

Among them, Filecoin has made breakthroughs in many aspects in the field of distributed storage.

First of all, more than 4,700 independent contracts have been deployed on FVM, facilitating more than 3 million transactions. The average net deposit of DeFi activities on FVM exceeds 30 million FIL, and the average net borrowing is 26 million FIL.

Secondly, Layer 2 solutions based on Filecoin are constantly increasing, such as Basin, A kave, Storacha, etc. These Layer 2 achieve horizontal and vertical expansion through secure and customizable subnets, unlocking many application scenarios including managing data-intensive workloads, supporting AI and unstructured data, supporting games and privacy protection applications, and creating opportunities for paid transactions. This provides more opportunities and allows data storage to return to its "distributed" nature.

Third, Filecoin positions itself as a key player in the growing field of decentralized artificial intelligence.

Filecoin’s decentralized storage and computing capabilities provide strong support for AI model training, data storage and sharing, and promote data-driven research and experiments. Researchers in the field of AI can more easily access and analyze large-scale data sets, thus accelerating the development of new algorithms and models.

In addition, Filecoin supports decentralized computing, which can distribute the training of AI models on multiple nodes, improve training speed and model performance, and reduce training costs and time.

From the perspective of investors, the past speculative routines of following trend narratives and chasing ups and downs are no longer effective. In-depth analysis based on fundamentals is the correct and long-term investment strategy.

Under the narrative-breaking crypto world, investors need to gain comprehensive insights from macro industry trends to micro project competitiveness, filter market noise, and make rational judgments and The long-term vision is to capture steady value-added opportunities in the encryption track that moves from virtuality to reality.

Value activation—RWA

In 2024, the asset tokenization trend led by RWA is accelerating.

Currently, including the United States, Europe, Singapore, Countries and regions including Switzerland and Hong Kong have begun to explore different forms of asset value innovation based on RWA technology.

Among them, the Guardian project is led by the Monetary Authority of Singapore. (Project Guardian) focuses on creating an industry framework for asset tokenization, formulating guidelines and standards, and developing a strong and sustainable digital asset ecosystem with practical applications, and has attracted traditional financial institutions such as the German Bundesbank and ANZ Bank. Institutions join in to jointly explore ways to enhance the liquidity and efficiency of financial markets through RWA.

Hong Kong also officially launched the "Ensemble" sandbox project on August 28. The purpose is to promote interbank settlement through experimental tokenized currencies, focus on tokenized asset transactions, and research and test asset tokens use cases. Such as: green bonds, electric vehicle charging stations and financial management, etc.

In addition, JPMorgan Chase issues and manages the tokenization of assets through the Onyx platform; Societe Generale issues tokenized securities on Ethereum.

With the establishment of relevant regulations in various countries, the entry of traditional financial institutions, and the breakthrough of encryption technology, the four major RWAs of stable currency, treasury bonds, private credit and commodities have All major sectors have achieved certain results.

●Stablecoin: Europe passed the MiCA Act, which clarified the issuance requirements and compliance standards for stablecoins; the US Stablecoin Act further standardized reserve disclosure and Transparency; Hong Kong launches stablecoin sandbox program.

●Treasury bonds: USYC has a market value of US$1 billion, accounting for more than 40% of the market share; MakerDAO also announced that it will invest US$1 billion in tokenizing US Treasury bonds.

●Private credit: According to RWA.xyz data, the total value of active loans in the RWA private credit market has reached US$9.53 billion, and the total loan value is US$16.2 billion. The average annualized interest rate is approximately 9.91%.

●Commodities: The total market value of the gold token market reaches US$1.05 billion, and the total number of gold token holders exceeds 58,610.

In 2025, relying on the following characteristics of RWA, it can bring accelerated changes to the traditional financial system:

●Activate diversified investment strategies: RWA allows partial ownership of assets and taps new sources of income, lowering the investment threshold and providing opportunities for small investors to enter;

●Improving asset liquidity: RWA uses the decentralized nature of the blockchain to simplify the transaction process and promote the rapid completion of asset transactions in a more transparent, secure and compliant manner.

●Reduce transaction and credit risks: RWA uses distributed ledgers and automated smart contracts to ensure that assets can circulate independently while also reducing fraud risks. Investors can also avoid uncontrollable risks of assets by tracing the detailed information of basic assets.

In addition, in addition to understanding the development process of RWA in 2024, its liquidity issue needs to be considered. Since the asset itself has a relatively clear value, the price fluctuations of RWA will be relatively small, making it difficult to form a large-scale trading volume in the secondary market.

So, how to create RWA use cases that provide liquidity has become the key to the next development.

Here are several directions for reference, and discussions are welcome.

● RWA asset portfolio packages different types of tokenized assets according to a certain risk-return ratio, similar to high-quality real estate portfolios in first-tier cities.

● RWA income stratification divides RWA assets with relatively stable income but high overall value into different levels of assets (such as A, B, C) . Among them, A-class assets enjoy priority in distribution of returns and have relatively low risks, while C-class assets have high risks but large potential returns.

Keyword 3

#0805

On August 5, 2024, Black Monday broke out, the global financial market faced a collapse, and the crypto world was wailing.

Bitcoin once fell to $49,000, and the price fell to $49,000 in a single dayFalling by more than 15%, Ethereum fell below the key support level of $2,100, with an intraday drop of more than 26%, and altcoins were even more miserable. The entire network’s 24-hour liquidation amounted to US$788 million. The amount of loan liquidation on DeFi exceeded US$320 million, setting a new high for the year at the time.

There are four main reasons for this Black Monday:

01

The non-farm employment data released by the United States on August 2 was significantly lower than expected. Employment data for May and June were revised downwards. The unemployment rate rose to above 4.2% in July, triggering the SUM rule and sounding the alarm on the risk of economic recession. Most investors' confidence in future economic growth was dampened, and risky assets were sold off.

02

The Bank of Japan has undergone major changes and began to adopt radical interest rate hikes and quantitative tightening. The short-term negative interest rate was raised to 0.25% and the scale of monthly asset purchases was reduced, causing the yen to appreciate rapidly and a large amount of funds flowed back into yen assets. Affected by this Japanese yen arbitrage trade, the U.S. stock market was impacted, and the crypto market was also caught up in the torrent of capital inflows, putting currency prices under pressure.

03

After the blockchain creates a new block on August 1, Bitcoin mining Mining difficulty has soared by more than 10% and continues to increase, causing miners' costs to rise. Many miners have no choice but to sell Bitcoin in order to survive. In addition, there was news that the United States might sell 2 billion bitcoins seized, causing a large number of investors to panic and sell off their assets.

04

The U.S. Securities and Exchange Commission (SEC) frequently takes action, causing all parties in the industry to Under great pressure. When the platform suffered a blow, investors' panic over regulatory uncertainty spread and they began to redeem assets in large quantities. Market liquidity tightened and currency prices fell.

Among them, the liquidation selling of ETH by market maker Jump Crypto was one of the main reasons for Ethereum to fall to a low of 2100. According to on-chain data, the cumulative value of ETH sold by Jump Crypto exceeds US$370 million. The main reason behind this is likely to be affected by the Terra case 44.700 million settlement payment.

However, the impact of the 8.5 plunge is not universally sad. Macroeconomic undercurrents encountered internal and external troubles in the encryption market. The encryption industry ushered in a cruel but necessary reshuffle during this plunge.

Many low-quality projects have withdrawn under the impact of the market. They either lack practical application value or are for the purpose of making money. When the tide recedes, they will be left naked. There is no escape for swimmers. And those high-quality projects that truly have technical strength and are dedicated to solving practical problems are beginning to emerge. With its solid technical foundation, it has won the trust of users and investors. Not only has the number of users increased against the trend, but the price of project tokens has also doubled when the market picked up.

In 2025, more and more resources will be concentrated on these high-quality projects, promoting the transformation of the encryption market from barbaric growth to intensive farming, and laying the foundation for a long-term and healthy ecosystem. Build a solid foundation for development.

Keyword 4

#cyclical pattern

The Bitcoin halving cycle has always been the "wealth password" in the minds of investors.

● The first halving: the price of Bitcoin soared to a maximum of $1,100, an increase of nearly a hundred times, starting the first bull market of Bitcoin.

● The second halving: Bitcoin price soared from US$650, breaking through the US$20,000 mark at the end of 2017.

● The third halving: The price of Bitcoin on the day of the halving was more than US$8,600, reaching a historical peak of US$69,000 in November 2021.

2024 In 2017, Bitcoin ushered in its fourth halving, but the influence of the cycle has weakened, and its attention has become slightly deserted.

It is not difficult to understand from a supply perspective. During the first halving, the reduced output of Bitcoin accounted for 15% of the circulation at that time. As circulation increases, the impact of the next halving is reduced to one-third of its original value.By the time of the last halving in 2140, the impact will be minimal.

From the perspective of market feedback, investor sentiment is generally more cautious due to factors such as maturity, macroeconomics, and miner ecology.

Market maturity: The rise of many powerful public chains such as Solana and BNB Chain, various innovative encryption projects and diversified financial products have given investors a choice Richer, money no longer flows into Bitcoin as intensively as it did in the past.

Not as good as before, the momentum for price increases has been greatly weakened.

Macroeconomics: The global economic recovery is weak, the U.S. economic data is ups and downs, inflation has fallen but is still at a high level, and the Federal Reserve has entered a wait-and-see mode after raising interest rates hawkishly During this period, interest rates remained at a high level, causing funds to flow back into the traditional financial market and making risky assets less attractive.

On June 12, news that the Federal Reserve expected only one interest rate cut in 2024 caused Bitcoin’s market dominance to fall by 5.3% in a week (over the past year maintained between 44% and 53%).

Miner ecology: Bitcoin rewards are halved. With transaction fee income unstable and mining difficulty continuing to rise, many miners are in profit trouble, and many The shutdown of small mining farms has further affected the supply and price stability of Bitcoin.

In addition, the excessive expectations of the encryption market have also overdrawn the benefits of Bitcoin's halving to a certain extent.

Since the past few rounds of halving cycles have formed a mindset for investors, before the halving in 2024, the price of Bitcoin has opened an upward channel early and digested it in advance. Expected halving. The significant benefit of the approval of the Bitcoin ETF has prompted a large influx of funds in advance, and the price of Bitcoin has soared from around US$41,000 at the beginning of the year to more than US$63,000 before the halving. By the time of the halving, the market benefits have already been exhausted.

Without new driving force, it will be difficult for prices to break through again.

However, the Bitcoin cycle is no longer overheated. In fact, it may not be that it has entered a new stage of development.

Affected by this factor, practitioners in the encryption industry, whether miners, developers or trading platforms, need to proactively adjust their operating strategies to adapt to the declining dominance of Bitcoin and market diversification. new situation. This then promotes the entire industry chain in the encryption market to actively innovate and seek change for survival.

In 2025, the encryption market will inevitably focus more on exploring the integration of development and traditional finance to explore new business growth points. Bitcoin will also enter this critical cycle node of 400 to 480 days. Whether Bitcoin can reach new highs by then is still worthy of attention.

Keyword 5

#水流

In 2024, the encryption market has undergone many major changes, writing several important turning points in the history of the encryption world.

"21st Century Financial Innovation and Technology Act"

The road to compliance in the U.S. crypto market A watershed moment

On May 22, the U.S. House of Representatives passed the Financial Innovation and Technology Act for the 21st Century (FIT21) by a vote of 279 to 136. This bill establishes a regulatory framework for digital assets. Once implemented, it is likely to become a landmark bill in the crypto world.

From the core points of the bill, the industry’s ideal new encryption situation remains to be seen.

1. Defined as a commodity: The bill proposes to determine whether a cryptocurrency is decentralized enough through conditions such as investment contracts, usage scenarios, degree of decentralization, and technical characteristics. Thereby determining whether digital assets can be classified as commodities.

2. Clarify the division of supervision: The bill clearly divides the payment scope of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).

3. Investor protection: The bill requires project developers to disclose key information such as project operating status and ownership structure in detail.

4. Clean up the trading environment: Exchanges, brokers, etc. must publish transaction data in real time, strictly manage user funds, and adopt measures such as isolated storage.

The key breakthrough point of this bill is to standardize the regulatory framework for digital assets and provide guidance for their compliance path. The encryption world is expected to bid farewell to the high pressure of SEC law enforcement supervision and officially open a new development situation.

Exploring Hong Kong’s new encryption policy

A watershed in the global encryption landscape

In addition, Hong Kong, located in the Asian market, will also start its own new wave of encryption in 2024.

● At the end of April, Hong Kong took the lead in approving Bitcoin and Ethereum spot ETFs. This is the first time such products have been launched in the Asian market, marking Hong Kong as the highland of Asian encryption supervision. Moreover, it will continue to lead cryptocurrency innovation in the next few months of 2024, injecting surging power into the crypto ecosystem in the Asia-Pacific region.

● On July 18, the Hong Kong Monetary Authority announced the list of the first batch of companies to participate in the "sandbox", including JD Coin Chain Technology, to adapt to the future in advance The stablecoin regulatory system has accumulated valuable experience for industry compliance practice.

● On December 6, Hong Kong announced the Stablecoin Act to fill the regulatory gap and build a comprehensive regulatory framework for stablecoins anchored to legal currencies.

Comparing the development ecology and current situation of the respective encryption markets in Hong Kong and the United States, Hong Kong is expected to change the status of the United States as a global encryption center.

In terms of regulation, Hong Kong is in the process of building a regulatory framework related to cryptocurrency, and the principle of creating space for development of compliant virtual asset activities; the encryption of the United States Currency regulation has shown a more decentralized and complex situation, with the back-and-forth between strictly controlling risks and encouraging innovation. Cross-regulation by multiple departments has inhibited the large-scale and coordinated development of the encryption market to a certain extent. Many unresolved potential benefits have yet to have actual effects. It is not conducive to the stable development and predictability of the encryption world.

In terms of market activity, although the overall trading volume of the Hong Kong market is not as good as that of the United States, the overall development speed is relatively rapid. The Bitcoin and Ethereum ETFs launched in Hong Kong rely on professional fund management to track the price trends of the underlying assets. The fluctuations are relatively mild, they are protected by strict supervision, and the safety of the assets is guaranteed.

In terms of prospects, Hong Kong, with its unique geographical advantages, can easily reach major global economies, attract capital, technology and talents from Europe, America, Asia and even all over the world, and expand crypto asset securitization and cross-border payments. and the depth and breadth of applications to achieve the optimal allocation of resources; the United States will continue to lead the forefront of encryption innovation with its profound technological foundation and huge market capacity. Only with clear implementation regulations can it continue to consolidate its position as the global encryption center.

Exploration of currency listing on centralized exchanges

The watershed of value issuance

5 On March 20, Binance took the lead in adjusting the currency listing strategy and released an open recruitment plan for currency listing projects to directly solve the market disadvantages caused by the mainstream gameplay of low circulation and high FDV in the market. This is undoubtedly the transformation of cryptocurrency exchanges from price issuance to value issuance. Critical watershed

According to CoinGecko data, among the top 300 cryptocurrencies on the market, low circulation accounts for 21.3%. Many new projects choose to enter the market with very little token circulation, while carrying extremely high completeness Diluted Valuation (FDV). Behind this method is the profit-driven intention of the project team to create scarcity.

In the early stages, it attracted investors to rush for money, quickly raising the price of the currency, and using a small amount of circulating chips to leverage huge market value growth. Some project teams and early investors hold a large number of unlocked tokens, waiting for the right time to unlock and realize them. However, this has laid many hidden dangers for the subsequent market, and ordinary investors often become takers without knowing it.

For the project itself, excessive pursuit of low circulation and high FDV is tantamount to drinking poison to quench thirst. Once the trust of the market collapses, it is extremely difficult to repair. A healthy project requires stable capital flow, a solid trust foundation and continuous Product innovation. This is also complementary to the development of the regulatory environment.

Keywords 6

#perspective

Let me tell you a real situation first. Argentina has been stuck in the quagmire of high inflation for a long time, with an imbalanced economic structure and a high fiscal deficit. Its legal currency, the peso, has become one of the fastest depreciating currencies in the world. In 2024, Argentina’s inflation rate continues Soaring to 200%, the purchasing power of the peso has shrunk sharply. Under this predicament, people are looking for ways to preserve their assets.Mainstream cryptocurrencies such as Ethereum have become the target of public buying due to their relative scarcity and independence from Argentina’s poor economic system.

According to local trading platform data, in the first half of 2024, Argentinian people’s purchases of Bitcoin increased by nearly 150% year-on-year. It is hard to imagine that a legal currency system is facing collapse, and crypto assets have taken up the banner of dealing with inflation and currency devaluation.

Thus, we gain a new perspective on thinking about the ups and downs of the crypto world.

"The rise in asset prices is actually the depreciation of legal currency."

When people realize When the legal currency continues to depreciate and the money in your hands becomes less and less valuable, you will start to look for other assets that can maintain or even increase in value to store wealth. Therefore, when the purchasing power of fiat currency declines, more funds pour into the cryptocurrency field, pushing its price up. From this logic, the rise in cryptocurrency prices may reflect the transfer of people's trust in fiat currencies and the increased demand for new ways to store value in the context of depreciation of fiat currencies.

In the crypto world, the truth behind price fluctuations is often more complex than meets the eye.

Meme Super Cycle

In 2024, we are experiencing a Meme super cycle.

From Doge to Shiba, from Moo to PUNT, its ultra-high return on investment has won the favor of the market, although there are still various companies that are aimed at making money quickly. Purpose, the so-called Zoo Meme Coin and Celebrity Meme Coin, but the mainstream culture and consensus effect behind them have also been accepted and adopted by more and more mainstream people.

What is the logic behind the Meme super cycle?

First, it is the same as if a village wants to be rich, it must build roads first. If the crypto world wants to obtain more funds and integrate into more application scenarios, the first thing it must do is attract enough users. The role of Meme is to help decentralized products quickly enter the market.

For example,

● Topic leverages the market: Meme quickly spreads on social media and other channels with its unique, interesting and easy-to-spread concept Generating a lot of discussion can quickly gain high exposure for product selling points or stories

● Concepts take the lead: Meme can quickly carry new trends and hot spots in the crypto world, bring products to the market as soon as possible, and seize the opportunity, instead of missing the best time window after lengthy preparations.

● Low threshold to expand the audience: It has relatively simple and easy-to-understand settings, allowing many non-professional ordinary investors and users to easily participate, especially when the target is an emerging field. Reduce users’ cognitive costs

● Active ecology and stable popularity: Meme has created a unique active community ecology, which can encourage users to participate in product marketing, feedback and other aspects, and use the power of users to help products take root and expand in the market faster.

The most important point is that Meme has a lot of gems in front of the topic of wealth creation myth, coupled with the support of Fomo sentiment generally in the market, it is bound to attract enough people Follow.

Second, the value currency does not live up to its name. The encryption market is full of projects that are built with innovative concepts but have no practical application scenarios or weak user needs. These projects generally rely on incentive mechanisms, and there are unfairness, rat positions, etc. Problem. The so-called solution to demand is just a gimmick to cut leeks, and the wealth effect cannot stand up to a little scrutiny.

Just like the Argentinian people looking for ways to preserve their assets by investing in cryptocurrencies, investors in the crypto world may still be stuck in the reckless era in their definition of value projects, that is, projects that can make people make money, but the three fairness requirements are This is done both overtly and covertly, but it often takes a long time to eliminate and adjust before a truly valuable coin can be found.

So, instead of insisting on so-called value coins and touting the application scenario ecology, it is more direct to use Meme. Value coins that do not make money are not like the peso abandoned by the people.

Third, PUMP.FUN effectively solves the problem of Meme issuance. According to Dune data, PUMP.FUN has deployed nearly 5 million Mems since its launch.Ecoin has 300,000 daily active users and 170,000 new addresses every day.

The explosion of Crypto+AI

Crypto+AI is the advanced development of the encryption market Key solution.

From the perspective of market performance, according to Dexu AI platform data, in December 2024 alone, the AIagent sector rose by more than 72.2% in 30 days, of which AI16Z rose by 295 %, PHALA rose 209%. In addition, the total market value of AI category projects exceeds US$23 billion, ranking fifth in the crypto world (the top four are public chains, CEX, Meme and DeFi).

From the perspective of technical adaptability, the three elements of AI development include data, algorithms and computing power. With the continuous development of large AI models, the battle for AI is intensifying, and the requirements for computing power of large models are increasing day by day.

According to the estimated data previously provided by OpenAI, the computing power requirements for training large models will double every 3.5 months, especially as the application of actual scenarios becomes more widespread. The demand for computing power in AI development has further increased. In the encryption world, with the rise of decentralized computing power, DePIN-based computing in particular can more easily deal with this problem, relying on idle resource contribution and token incentive mechanisms to provide low-cost computing power required for AI development.

AI's intelligent algorithms and efficient computing power can also solve problems such as risk assessment and market analysis in Crypto transactions, improving transaction efficiency and security.

AI Agent can monitor market dynamics in real time, independently decide on buying and selling opportunities based on preset investment strategies, and accurately trade between various crypto assets, stocks, and funds. Flexible allocation of funds greatly expands the use scenarios and value appreciation space of assets, allowing investors to realize intelligent and efficient operation of their assets.

In addition, the most critical perspective is: AI agents are the best carrier of cryptocurrency incentive models.

As one of the important factors for the stable, healthy and sustainable development of the blockchain system, the incentive model plays an indispensable role in everything from technical maintenance to ecological construction. effect. In order to realize the vision of widespread application, lowering the operating threshold is a key point that must be solved for ordinary users.

As AI agents develop increasingly maturely, they possess a high degree of automated execution, such as interaction capabilities, data processing capabilities, learning optimization capabilities, intelligent fraud prevention capabilities, and customization capabilities, which can be used as It is an important means to develop the cryptographic world, especially to maintain the ecology on the chain.

On the user side, the introduction of AI technology can lower the operational threshold for users to respond to specific behaviors in the application scenario of the cryptocurrency incentive model. On the task issuing side, the agent can quickly confirm the situation that meets the incentive conditions and issue corresponding cryptocurrency rewards according to the established rules. Its automated execution is far more efficient than manual operation, ensuring the smooth and rapid progress of the incentive process, and passing Learn and adaptively adjust the parameters and rule application methods of the incentive model to ensure the long-term fairness and rationality of the crypto world ecology.

Conclusion

In a few hours, 2024 in the crypto world will come to an end. . Perhaps "rational fanaticism" cannot replace your summary of this year's encryption journey. But in this year, every event or node we experience will become a key element towards the final form of the crypto world.

In 2025, the pace of technological innovation will not stop, and the regulatory framework and standards will become increasingly clear. With the blessing of standardization, innovation, and integration, the boundaries of the crypto world will continue to expand in 2025, creating more uniquely valuable business scenarios.

Finally, I wish everyone a prosperous or wealthy year in 2025.

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