The impact of macro events

Many major events happened in the cryptocurrency industry in the first half of the year, which had a great impact on the industry. Among them, Ethereum completed the Shanghai upgrade, which brought a more securities-oriented gameplay to cryptocurrencies. Many traditional companies began to build strategies based on this.

In addition to the upgrade of Ethereum, the changes in Hong Kong's cryptocurrency policy have also attracted great attention from the market. The Hong Kong government actively promotes the compliance of cryptocurrencies and provides a corresponding regulatory framework. This policy change has triggered a wave of climax in the cryptocurrency field.

However, one of the most eye-catching events in the first half of this year was the collapse of a US digital bank. This incident directly affected more than 70% of the liquidity in the market, causing drastic market fluctuations. In addition, the US Securities and Exchange Commission (SEC) filed a lawsuit against exchanges such as Binance and Coinbase, which also exacerbated the market's unstable sentiment to a certain extent.

Focus before the bull market

The development direction of the cryptocurrency industry is greatly affected by market and regulatory policies. Although the industry still lacks a clear narrative logic, with the occurrence of major events such as Ethereum upgrade, Ethereum L2 launch, and cryptocurrency ETF approval, the future development prospects of the industry are still worth looking forward to. The following are the key points to pay attention to before the bull market:

Ethereum upgrade: The upgrade of Ethereum in the second half of the year will bring higher performance and scalability to the public chain. As the Ethereum L2 network gradually matures, the focus of competition in the public chain field may no longer be limited to transactions per second (TPS), but more diversified development, such as security, smart contract functions and developer ecology.

Private keyless wallet and on-chain AA smart wallet based on MPC technology: MPC (multi-party computing) technology realizes the secure management of private keys and authorization of transactions through the use of multi-party computing protocols, thereby providing higher security and convenience, and effectively reducing the risk of private keys being attacked or leaked.

The AA (Autonomous Agent) smart wallet on the chain is a smart contract-driven wallet that can automatically execute pre-set rules and conditions, automatically perform transactions, investments, storage and other operations, realize automated fund management and transaction operations, and provide users with more personalized and intelligent services.

These new technologies are expected to form unified standards and lower the threshold for users to use cryptocurrencies.

Cryptocurrency ETF: The application of cryptocurrency spot ETF by traditional financial institutions is expected to be approved by the end of the first quarter of next year. Once approved, it will open up the compliant capital channel in North America and is expected to introduce more compliant funds into the market.

Future trends

With the continuous development of technology and the gradual relaxation of policies, the cryptocurrency industry will usher in a broader space for development. The following are the trends of future development:

Technological innovation: Blockchain technology will continue to innovate and improve, opening up more application scenarios for the cryptocurrency industry, thereby promoting the sustainable development of the industry. At the same time, with the continuous development of technology, the security and stability of cryptocurrency will also be further enhanced.

Policy relaxation: As more and more countries begin to discuss the compliance of cryptocurrencies and gradually open up the cryptocurrency market, the cryptocurrency industry will have more development opportunities. The relaxation of policies will attract more capital and talent to the field, injecting new vitality into the development of the industry.

Take China as an example. In recent years, the Chinese government has gradually increased its attention and support for blockchain technology. China has issued a series of policies at the national level to support the development of blockchain, including building a digital economy, promoting the integration of blockchain and the real economy, and strengthening blockchain standardization. The introduction of these policies will further enhance China's position in the global blockchain industry and provide a broader development space for China's cryptocurrency projects and innovative enterprises.

Financial innovation: With the development of the cryptocurrency market, traditional financial institutions are increasingly interested in blockchain and cryptocurrency. In the future, the integration of the financial sector and the cryptocurrency sector will become a trend.

For example, some banks have begun to study the application of blockchain technology in cross-border payment and clearing to improve transaction efficiency and reduce costs. At the same time, some financial technology companies have also launched innovative products such as lending, investment and payment based on blockchain to provide users with more flexible and efficient financial services.

Popularization of DeFi applications: DeFi refers to a decentralized financial system built on blockchain technology, which uses smart contracts to implement financial transactions and services without intermediaries. In a decentralized financial system, users can participate in various financial activities such as lending, trading, and savings without relying on traditional financial institutions.

This decentralized financial model has greater openness and transparency, providing more financial autonomy and participation rights to users around the world. At present, DeFi applications have covered multiple fields such as lending protocols, stablecoins, decentralized exchanges, etc., and are showing a booming momentum.

It can be seen that if you want to break through in the future, it is obviously not the narrative logic of how high the TPS is. Some recent innovations in Bitcoin have made us re-examine another possibility for the development of the industry. Although Bitcoin has certain limitations in performance, it has created quite interesting products through different underlying technical features. As an already unique public chain, Nervos$CKB may have the opportunity to step into the narrative of non-homogeneous public chains in the next round of bull market.