From the new world of data research encryption, "these three" tracks are expected to rewrite the global financial landscape!

The cryptocurrency industry has entered a new stage of maturity, driven by increasing global adoption, ongoing innovation, and deeper integration with traditional financial systems.

This year, BTC hit new all-time highs in March and December, reflecting tremendous demand. At the same time, the position of Decentralized Finance in the global economy is continuously strengthening, and global capital inflows are approaching a new high. In addition, TradFi is becoming active again, with funds pouring into stablecoins and encryption exchange-traded products (ETPs) markets, indicating that cryptocurrency is quietly fulfilling its promise to reshape the global financial infrastructure.

This is not just another market cycle, but a key moment for Crypto Assets.

Atypical Bull Market

At the end of 2023, Bitcoin started to rise, symbolizing the beginning of a new round of bullish market.

Image source: Chainalysis

On March 5th, 2024, Bitcoin broke the previous historical high and rose to over $73,000; in December of the same year, it once again broke the $100,000 mark.

In addition, the transfer activities of all digital assets have exceeded the historical highs of the end of 2020 and 2021, indicating that the activity of this market cycle far exceeds the previous Bull Market.

Image source: Chainalysis

From the end of 2023 to the beginning of 2024, Decentralized Finance began to show signs of recovery, with activity levels reaching a historical high as shown below.

Image source: Chainalysis

The current asset prices and activity in Decentralized Finance are not the only indicators of market adaptability and resilience - the global adoption of stablecoins, explosive interest in TradFi (Traditional Finance), and the emergence of services for new application scenarios such as tokenization (as described below) all indicate that cryptocurrencies are being more widely accepted and integrated into the global economy.

The global promotion of stablecoins is driving their rise

Stable coins are usually pegged to the US dollar or other fiat coins at a 1:1 ratio, combining the efficiency, security, and transparency of cryptocurrencies while avoiding the volatility risks commonly seen in other encryption markets.

Although major cryptocurrencies such as BTC and Ethereum coin often dominate the headlines and offer returns that stablecoin cannot match, stablecoin has surpassed other types of cryptocurrencies in adoption rate. In recent months, stablecoin's on-chain volume accounts for more than half, even reaching 75%.

Image source: Chainalysis

By providing the stability of the US dollar to anyone with internet access, stablecoins offer a crucial solution for residents of countries facing currency Fluctuation, serving to protect savings and facilitate commercial transactions.

The increasing prominence of Stablecoin in overall trading activities indicates that this asset class has achieved high utility among encryption users.

BTC and Ethercoin ETP symbolize the historical integration of crypto coins and TradFi.

TradFi (TradFi) reached a historic milestone in the validation of Cryptocurrency in 2024, and the launch of SpotBTCexchange trading products (ETPs) in the US market further enhanced institutional investors' interest. exchange-traded funds (ETFs) - the most popular form of ETPs - attracted great interest from retail investors and institutional investors.

With the launch of Cryptocurrency ETF, the entire market has experienced an increase based on this, as these funds provide regulated mainstream investment vehicles that can access Crypto Assets. They usually attract investors who may hesitate to directly use traditional encryption trading platforms due to the complexity and security issues.

Image source: Chainalysis

The daily volume of BTC ETF has surged, approaching a daily volume of nearly 10 billion US dollars in March. The fund inflow of BTC ETF has also exceeded that of the first net gold ETF launched in 2005 (adjusted for inflation), making it the fastest-growing ETF in history, as shown in the chart below.

Image source: Chainalysis

On January 10, 2024, after the news of the approval of BTC ETF came out, the price of BTC began to rise rapidly and started trading shortly after.

Image source: Chainalysis

By providing more convenient access to Cryptocurrency through traditional trading platforms, ETP can unlock new sources of demand for underlying assets, which seems to be one of the important factors driving the recent price increase of BTC ($BTC).

Although it is difficult to define the exact impact of the U.S. BTC ETP launch, it is generally believed to have boosted market optimism and expanded institutional investors' exposure to BTC. The surge in demand reflects the unique appeal of ETPs among retail and institutional investors, providing a regulated and familiar way to access BTC without the complexity of managing Private Key Wallets.

tokenization: Real World Assets (RWA) are growing

Excitement around the massive tokenization of Real World Assets (RWA) is quietly reshaping the landscape of asset management and investment, with many TradFi giants like Franklin Templeton already making their mark in this market. Reports indicate that Goldman Sachs plans to launch an encryption trading platform focused on tokenization in the next 12 to 18 months.

RWA refers to any valuable asset - tangible or intangible - whose value comes from outside the blockchain. Through tokenization, the rights to these assets (from real estate, artwork to intellectual property) are represented as on-chain tokens. This process not only simplifies the sale and trading of these assets, but also increases their accessibility to a wider audience, creating a more efficient and liquid market. RWA also promises to enhance transparency in the investment market, as all transactions are recorded on-chain.

Currently, most RWA projects focus on tokenization of relatively simple and stable financial instruments, such as US Treasury bonds, lending platforms like Goldfinch and Ondo Finance, relying on tokenization RWA as their core, have taken up most of the market share in the RWA market. According to data compiled by asset management company 21.co, the total market capitalization of tokenization projects has exceeded 1,000 billion US dollars.

Image source: Dune

Despite still being in the early stages, the growing importance of RWA is a crucial step towards the future. In the future, most value transfers will take place on-chain, promoting a unified, open, and less frictional global market.

The maturity of the Crypto Assets industry may mean what to organizations

When we examine the progress of the encryption ecosystem, it is obvious that we are undergoing a significant transformation in perception and usage. Although the cryptocurrency market may experience fluctuations and long-term bear market cycles, there is one consistent trend: wallets with positive balances are growing linearly and continue to rise. Currently, there are over 400 million wallets holding cryptocurrency.

Image source: Chainalysis

Even though a Wallet does not necessarily mean only one user, as institutions and individuals can manage multiple Wallets, the growing number indicates that the adoption of Cryptocurrency is steadily increasing.

As the influence of Crypto Assets continues to expand, it becomes particularly important to evaluate the standards for success in this new paradigm. For organizations, adapting to the on-chain reality is not just about keeping up with technological advancements - it also requires a thorough reassessment of business models to leverage the unique opportunities brought by blockchain.

[Disclaimer] There are risks in the market, and investment should be cautious. This article does not constitute investment advice, and users should consider whether any opinions, perspectives, or conclusions in this article are in line with their specific circumstances. Investment based on this is at your own risk.

This article is authorized for reprint from: "Foresight News"

Original author: Chainalysis

'From data research encryption new world, 'these three' tracks are expected to rewrite the global financial landscape!' This article was first published in 'encryption city'.