We have repeatedly emphasized since the beginning of the year, including the last two months, that DEFI and RWA will be the explosion points of this bull market!
Recently, these views have been validated! The logic is simple: the main problems that blockchain can currently validate and solve are data information and asset storage, transfer! Other applications, due to infrastructure, market, etc., are difficult to quickly and scalably land! The flow of assets is inherently the business of financial institutions! Whether traditional financial institutions or decentralized on-chain financial institutions, they play an important role in this! Look at traditional financial giants; securities, insurance, and banks are super large companies, so the corresponding on-chain financial institutions will also follow this trend!
The approval of the ETF already represents a moderate policy, which means that the capitalist system based on the principle of private property being sacred and inviolable will legalize DEFI activities through relevant regulatory legislation! This will open up channels between traditional financial institutions and DEFI institutions, allowing institutional money to flow in quickly and in large quantities, which will rapidly lead to the rise of DEFI! This is the fundamental and logical basis! The competence and commitment of Trump, along with the current composition of the cabinet, are already very clear! Coupled with the recent continuous positive news about DEFI tokens, this is like adding fuel to the fire!
As seen in recent historical articles: U.S. tokens have completely ignited the bull market! The policy bull is here! The final chapter of the series on crypto investment with hundredfold returns - policies and character! RSR project advisor Paul Atkins has been elected as the new chairman of the SEC, which will bring hundredfold returns to related cryptocurrencies! (Most comprehensive summary) BITMEX founder: The true era opportunity of DEFI has arrived! Major policy benefits for Ethereum are here! Including SEC regulatory concept tokens! Bitcoin breaks 80,000 USD! In the Trump era, Bitcoin, Ethereum, and DEFI will usher in an epic opportunity!
But there are also opportunities brought by internal reasons of certain tokens: for example, the largest decentralized exchange (DEX) on Ethereum, UNI, announced in October that it would launch a new chain by the end of the year, mainly for staking! This is a huge benefit, liquidity dilution, this is the staking story initiated by Ethereum. This has become a theme in the industry and is very helpful for token appreciation. The main reason is that it exacerbates the supply-demand relationship, which we emphasized many times at the beginning of the year!
Moreover, the other two leading tokens, SUSHI and CRV, have also successively launched favorable policies!
Sushi DAO initiated a proposal for asset diversification strategy, intending to shift 100% of treasury assets in SUSHI tokens to 70% stablecoins (USDC, USDT, etc.), 20% blue-chip cryptocurrencies (ETH, BTC), and 10% DeFi tokens (such as AAVE). This strategy aims to reduce volatility, enhance liquidity, and generate income through staking, lending, and liquidity provision.
CurveDAO announced that the decentralized exchange Curve has launched a new savings module Savings crvUSD (scrvUSD), which is the yield version of its stablecoin crvUSD, allowing users to earn 'low-risk' compound interest by depositing crvUSD. This module has been developed in collaboration with Yearn Finance, utilizing Yearn's V3 vault technology.
scrvUSD allows users to deposit crvUSD to earn part of the interest income, with funds held securely and without re-collateralization risks, while realizing automatic interest compounding. This design enhances the stability and attractiveness of crvUSD, aiming to further promote its ecological growth through stable income models and expand into DeFi applications.
The appointment of crypto czar DAVID as the SEC crypto head has led to the rise of DYDX, HNS, and ZRX! It has also directly driven the heat of the RWA sector because DAVID believes that protocols are not securities and that more asset tokens should emerge! Historical articles have a special summary of this sector!
Binance's custody partner CEFFU supports the EOS mainnet, providing institutional-grade custody services for institutional holders of EOS and opening up new CEDEFI opportunities through Binance's Mirrorx integration! Meanwhile, EOS has been included in the COINBASE50 index!
Unlike the market's collective bearish outlook on EOS, I actually believe that fundamentally strong tokens have opportunities in a bull market! For example, historical articles: The iron tree blooms, EOS!
Of course, the RWA sector is also quite clear, requiring no analysis. Just check the U.S. article and the SEC chairman's article I posted earlier, and you'll know!
Ten institutions have completed the simulation test of the Regulatory Settlement Network (RSN), exploring the use of a shared DLT network to settle tokenized transactions. In addition to previous experiments settling tokenized commercial bank funds and tokenized central bank funds on the same network, tokenized government bonds and investment-grade bonds also appeared on the shared ledger in this experiment. The participating institutions include Citibank, JPMorgan, Mastercard, Swift, TD Bank NA, Bank of America, USDF, Wells Fargo, Visa, and Zions Bancorp.
There are several reasons why the shared institutional network for tokenized assets has garnered attention. If tokenized treasury bonds are settled using central bank funds on the same ledger, then settlement risk is nearly eliminated. Smart contracts enable automation and straight-through processing. The always-online network allows for settlements to occur outside of working hours and batch cut-off times, which could be particularly convenient for assisting overseas clients.
Additionally, due to the accelerated development of DEFI and RWA, oracles and storage will also explode, which has already played out once in 2020! Related tokens can be seen: the most comprehensive summary of the crypto bull market with hundredfold coins, including analysis of sector leaders! (Compiled by big names). The leading oracles mainly include LINK, PYTH, API3, and UMA. Storage mainly includes FIL, AR, etc. Related sector tokens will also have opportunities!
The reserves of Bitcoin are also starting to emerge one after another!
Some states in the U.S. may lead the federal government in establishing Bitcoin reserves. Florida is taking steps to establish its reserves as early as the first quarter of 2025. Pennsylvania is also drafting a strategic Bitcoin reserve bill, which will be proposed in November. The proposal may require the state to invest 10% of its general fund into Bitcoin. States like Michigan and Wisconsin are choosing to invest in Bitcoin-related ETFs and trusts.
The U.S. Treasury Department stated in a report that in the world of decentralized finance (DeFi), the primary use of Bitcoin appears to be as a store of value tool, or 'digital gold'; so far, speculative interest seems to play a significant role in the growth of digital tokens.
The new tax law in the Czech Republic introduces clear conditions explaining under what circumstances cryptocurrency transactions can be exempt from personal income tax.
Among them: 'If an individual’s total annual income from cryptocurrency transactions does not exceed 100,000 Czech crowns (approximately 4,000 USD), they can enjoy an exemption. Additionally, digital assets held for more than three years before sale also qualify for tax exemption.'
Czech Prime Minister Petr Fiala stated that the new tax rules will promote better conditions for cryptocurrencies, making people's lives easier and supporting modern technology.
The second-largest stablecoin issuer USDC, which is about to impact NASDAQ ICO, Circle CEO Jeremy stated on X that 'cryptocurrency will 'never look back', and crypto infrastructure will become widespread globally, just like the internet infrastructure in 2004.'
A new blockchain has caused the rise of the DEPIN token:
The cryptocurrency exchange Coins.ph, global ride-hailing platform inDrive, and decentralized mapping network Hivemapper will launch the Philippines' first blockchain-driven ride-hailing fleet, which will allow inDrive drivers to earn additional rewards by mapping the roads of the Metro Manila area. Besides earning income through ride-hailing services, participating drivers will also receive HONEY tokens for their contributions. These tokens can be securely stored on Coins.ph.
This is the main trend at present! Opportunities for individual tokens are continuously being released, I am quite confident, and the upward cycle will be prolonged! The magnitude will increase!
However, I have noticed two rather unfavorable risks, such as a serious risk related to MicroStrategy!
I see that the CEO of MicroStrategy has really been floating lately, suggesting others allocate Bitcoin everywhere. He also plans to short gold, and this funding comes from Bitcoin collateral! I wasn't worried when Citron shorted MicroStrategy. But now that he's risking it by shorting gold, I'm afraid Wall Street will focus on its Bitcoin pocket, which could really make it the next LUNA! If that event occurs, we should leave without hesitation. MicroStrategy currently holds over 400,000 Bitcoins, and it will only increase. I can guarantee that MicroStrategy cannot outmatch Wall Street's shorts!
Additionally, it's about DEFI!
An address on-chain leveraged long ARB. This address withdrew 2.936 million ARB (3.41 million USD) from Bybit two hours ago and deposited it into Aave as initial collateral, then borrowed 2.95 million USDT from Aave to buy 2.478 million ARB on Binance at a price of 1.19 USD. Currently holding 5.415 million ARB (6.4 million USD)
Sky Protocol (formerly MakerDAO) stated on platform X that the following parameter changes will be implemented on December 9 at 5:24 (UTC+8) after the latest executive vote was approved.
Savings rate updates:
The Sky savings rate (SSR) will increase to 12.5%, and the Dai savings rate (DSR) will increase to 11.5%.
Stable fee parameter updates:
ETH stable fee will increase: ETH-A will increase to 12.75%, ETH-B will increase to 13.25%, ETH-C will increase to 12.5%.
WSTETH stable fee will increase: WSTETH-A will increase to 13.75%, WSTETH-B will increase to 13.5%.
WBTC stable fee will increase: WBTC-A will increase to 16.25%, WBTC-B will increase to 16.75%, WBTC-C will increase to 16%.
This means that DEFI is about to experience a historic application growth, and now leveraged users are increasing, with the subsequent market overheating expected to be more severe. Once there is a sharp market fluctuation, coupled with related lending protocols raising interest rates, it will be roughly equivalent to the 2008 U.S. lending crisis, repeating itself. Furthermore, since everything on-chain operates based on protocols, the collapse will be even faster and more severe than in 2008. Historically, as long as regulation is immature, large-scale overdrafts will inevitably lead to a collapse! I believe this matter cannot be avoided. We will have to wait for verification.
Of course, these dangers will occur after the market overheats significantly, not now. I believe this risk will be anticipated in advance. At that time, don't be too optimistic!
Additionally, since you have read for so long, I'll give you a potential opportunity. Just like last time we predicted the potential opportunity of SUI on DEX, CETUS. SUI's SCLP is still at the bottom, and the staking volume is continuously increasing, hee hee, the next CETUS is coming!
One day, you will reopen this article! I hope that it is during your prosperous time, not during your downfall!
(For opinion sharing only, not investment advice)
