Weekly Highlights in the Encryption Industry

This week, the cryptocurrency industry has seen a flurry of hot events, ranging from the craze of tokenized stocks to the macroeconomic situation, and the development of AI and Meme coins, showing a trend of diversification in the industry.

Tokenized Stocks Become the New Darling of the Market

Tokenized stocks are becoming an important innovation in the encryption field, expected to expand the overall market size and drive the encryption ecosystem towards mainstream development. However, the introduction of quality assets may pose challenges to altcoins. Currently, tokenized stocks are still in the early stages and face multiple challenges such as insufficient liquidity and regulation.

Many well-known encryption institutions are actively entering the tokenized stock market, adopting different technological routes and custody solutions to meet the diverse needs of global users. Private equity tokenization is also reshaping the way retail investors participate in the primary market.

Macroeconomic Situation Analysis

The US debt crisis has sparked a financial experiment, attempting to transform the encryption world into the "white knight" of US bonds, while the global monetary system is quietly being reshaped. In the future, the market may be driven by core narratives such as ETFs, real returns, and institutional adoption, presenting a "selective bull market."

The current encryption industry is facing a downturn similar to that of 2018 or 2022, not only due to price issues but also because of people's doubts and hesitations about the industry. The industry is gasping under the "three new mountains."

AI and Meme Coin Development

Artificial intelligence is moving from a hot topic of discussion to practical implementation, making the creation of scalable AI products a key competitive factor. As market sentiment warms up, Meme tokens are performing well. Some believe that only when AI truly "sinks" into every device will decentralized collaboration shift from concept to necessity.

Emerging Projects and Trends

Some emerging projects have garnered attention, such as Somnia, a parallel EVM Layer 1 public chain that claims to be the fastest and most cost-effective, and Project Eleven, which builds a Bitcoin security firewall using PQC.

From the research on 43 Pre-TGE projects on Kaito, it can be seen that the current development trends of encryption projects are: Layer 1 and Layer 2 are showing a vertical trend, AI blockchain has become the hottest track, and the full chain is the mainstream trend of chains and applications.

Industry Trends and Analysis

Major trading platforms are launching or upgrading payment products to compete for the connection channels between encryption assets and the real world. The Plasma and Stable public chains launched by USDT aim to achieve faster, cheaper, and more scalable stablecoin transfer functions.

The development of the Trump family's encryption project WLFI has garnered significant attention, and its future trajectory will depend on the passing of related legislation and the Trump family's profit distribution strategy.

The establishment of the Ethereum Community Fund ( ECF ) challenges the traditional governance model of the Ethereum Foundation ( EF ), sparking discussions within the industry.

Regulatory and Policy Trends

Multiple countries are strengthening regulations on encryption currencies. The Governor of the Bank of England warned that stablecoins could threaten public trust in currency. The US SEC is exploring universal listing standards for token-based ETFs to simplify the approval process. Singapore has tightened regulations on encryption currency trading.

Overall, the encryption industry is undergoing complex transformations and challenges, with various forces pushing the industry towards a more standardized and mainstream direction.