2026-01-17 07:33:17

The cryptocurrency market in 2025 has been quite volatile. The total crypto market capitalization for the year first surpassed $4 trillion, though it experienced significant fluctuations and ultimately declined by about 7.9%. Bitcoin's performance is noteworthy—it hit new highs but retreated by the end of the year, with a market cap stabilizing around $1.8 trillion. Overall, it did not outperform gold and the US stock market.

However, a clear change this year is the continuous influx of institutional funds. The performance of ETFs is the most direct indicator—annual net inflows exceeded $21 billion, reflecting increasing recognition of crypto assets by traditional finance. The growth of stablecoins has also been rapid, with a market cap surpassing $305 billion, and daily trading volume reaching $3.54 trillion.

Interestingly, the revenue from DeFi protocols is noteworthy. In 2025, the annual revenue of DeFi protocols reached $16.2 billion, setting a new record. Even more interesting is that the TVL of RWA (Real-World Asset on-chain) surpassed that of DEXs for the first time, reaching $17 billion. This indicates that on-chain finance is no longer just about decentralized trading; the trend of bringing real-world assets onto the blockchain is becoming increasingly evident.

The competition among L1s mainly focuses on protocol revenue, while L2s face increasing fragmentation issues. Looking ahead to 2026, if loose monetary policies, fiscal stimulus, and regulatory easing work together, they could reignite market risk appetite, with institutional funds potentially leading a new wave of growth. On the regulatory front, policy frameworks in the US, Europe, and Asia are gradually becoming clearer.

BTC-1,09%

DEFI5,58%

RWA-1,29%

L10,42%

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ChainWallflower

· 01-19 10:28

RWA surpassing DEX is truly amazing; it feels like on-chain finance is finally starting to take shape. Institutional funds continue to flow in, but BTC still hasn't outperformed the US stock market, which makes it interesting. By 2026, it depends on whether the three major factors can truly synchronize; otherwise, it will just be another false dawn. The daily trading volume of stablecoins is 3.54 trillion, which is the real infrastructure. ETF net inflow is $21 billion... Traditional finance will truly embrace crypto, but we’ll have to wait; no rush. DeFi revenue hits a record of 16.2 billion, but fragmented L2s are still competing fiercely, which is a bit ironic. Dropped 7.9%, but the market cap first broke 4 trillion; it seems the overall direction is correct, just needs time for validation. I remain cautious about regulatory clarity; what is said and done by the US and Europe often differ. The story of RWA is indeed exciting, but the real breakout depends on whether practical applications can be implemented.

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CryptoGoldmine

· 01-19 02:25

Institutional funds net inflow of 21 billion, this number really can’t tell the full story; the environment for hash rate profitability is improving. RWA surpassing DEX is the real key; the ROI cycle for traditional assets on the chain is shortening. A 7.9% annual drawdown is negligible; the core indicator is the protocol revenue hitting a new high. With a daily trading volume of 3.54 trillion, the infrastructure for stablecoins is already solid enough. These days, Bitcoin underperforming US stocks isn’t something to worry about too much; the pace of institutional entry will determine the next cycle. The record of 16.2 billion in DeFi revenue indicates that the benefits of technological iteration have not yet been fully realized. From the growth curve of the hash rate network, current deployment opportunities are indeed quite good. The real variable is the clarification of the regulatory framework, which will determine the capital flow in 2026. With a stablecoin market cap of 305 billion, it feels like the on-chain financial infrastructure has just begun.

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SerRugResistant

· 01-17 08:03

RWA is really taking off now, finally it's not just the DEX world anymore. It feels like on-chain finance is really getting serious. Institutional funds are entering the market, but retail investors still need to watch their wallets. A 7.9% decline is acceptable; the key is that the ETF's 21 billion yuan is real money recognition. Honestly, DeFi protocols' 16.2 billion revenue still isn't earning as fast as some Web2 applications, but as long as the trend is right, that's enough. The fragmentation of L2s can't be solved; capital just loves diversified investments. If 2026 really brings a triple positive synergy, I need to seriously manage my positions. BTC didn't outperform the US stock market? Then retail investors need to think more about how to allocate. Stablecoins are at 305 billion, and the daily-used stuff is becoming more stable. Although boring, it's safe. I think the real inflection point is RWA surpassing DEXs. Once traditional assets come in, there's no going back. Clearer regulation sounds good, but transparent regulation—good or bad for us? I really don't know.

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ETHReserveBank

· 01-17 08:02

Institutional entry really changes the game, but it's still a bit painful that bt can't beat gold. I didn't expect RWA to surpass DEX; on-chain finance is really transforming. L2 fragmentation is becoming more and more serious; it feels like a reshuffle is needed. If in 2026 the three factors truly become interconnected, we might take off? But we also need to watch out for another mirage. The daily trading volume of stablecoins is 3.54 trillion, isn't this number outrageous? It's more aggressive than the entire traditional market. DeFi earned 16.2 billion, but I haven't seen the returns, haha. A 7.9% decline has gained institutional recognition; it still feels worth it.

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SatoshiChallenger

· 01-17 07:59

Still bragging about beating gold and the US stock market when you can't even do that? Data shows that Bitcoin's annual return is even lower than the S&P 500, which is what they call "digital gold" [cold laugh]. Institutions inflowed 21 billion, which is indeed impressive, but don't forget how that wave of institutional entry in 2017 ended. The lessons of history are right here. RWA surpassing DEX? Interestingly, how much of that 17 billion is real demand, and how much is just for storytelling and fundraising... The fragmentation of L2 is the most honest statement this year; everything else is just hype to inflate the bubble. Loose monetary policy + fiscal policy + regulatory easing happening all at once? I'm not joking—wake up, everyone. It won't be like this in 2026. Daily stablecoin trading volume is 3.54 trillion... I just want to ask, what percentage of this is not just wash trading? [funny]

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OnchainSniper

· 01-17 07:53

Institutions are疯狂扫货, retail investors are still debating whether to get on board... This is the gap. --- Has RWA surpassed DEX? What does this mean? The real financial system is going on-chain. --- A 7.9% drop compared to gold and US stocks—so what? The key is ETF net inflow of 21 billion, traditional finance is already hooked. --- DeFi revenue hit 16.2 billion, a new record, but I'm still losing money haha, can't smile. --- L2 fragmentation is so serious that even Solana is sneaking a laugh. --- Will 2026 really take off, or will there be another wave of suppression? --- Daily stablecoin trading volume is 3.54 trillion? This number is crazy, as much as real GDP. --- Bitcoin hitting new highs still can't beat US stocks. What should I do with my tiny gains? --- How likely are the three conditions happening simultaneously: loose policies + relaxed regulations + fiscal stimulus? --- The 17 billion TVL of RWA feels like just the beginning; the big funds are still watching the show.

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DeFiGrayling

· 01-17 07:51

The RWA super DEX thing is really interesting; on-chain finance is finally no longer just a gambling game. Institutional funds are really pouring in, but it's still pretty painful that BTC hasn't outperformed the US stock market. L2 fragmentation is truly a tough problem; we need to think about who can consolidate this scattered situation. If policies really loosen up in 2026, that will be the real highlight. It's too early to say anything now. Daily trading volume of stablecoins is 3.54 trillion? This data is crazy, completely beyond imagination. DeFi yields have broken 16.2 billion, which is incredible, but the risks are also not small. Institution-led next growth? I'm actually a bit worried; could it be just another prelude to a pump-and-dump? A 7.9% drop isn't too bad, better than I expected. Let's keep observing. Net inflow of 21 billion into ETFs; traditional finance veterans are finally getting serious. RWA is truly the future hope; decentralized trading is becoming too competitive. Is clearer regulation a good thing or a bad thing? It depends on who is setting the rules.

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