#加密市场观察 Market Silent Period, Why Is Ethereum Standing in the “Strike Zone” for a New Wave of Explosive Growth?

Since the market crash on 1011, the crypto world seems to have pressed the pause button. The market is dull, funds are retreating, and sentiment is low—many market makers and investors have suffered heavy losses, and market recovery indeed takes time. But if we only see the surface silence, we might miss the structural change in accumulation at the bottom.

History repeatedly proves that the crypto market is never short of new volatility and opportunities born from despair. Currently, we are at a critical juncture: the integration of traditional finance and crypto assets is not stagnating but quietly deepening its moat during the market downturn, accumulating energy for the next breakthrough.

一、Traditional Finance on Chain: Not “if” but “when”

Former SEC Chairman Paul Atkins recently told FOX in an interview at NYSE: “In the next few years, the entire US financial market may migrate onto the chain.”

The significance of this statement far exceeds the current market gloom. It is not from a crypto evangelist but from a former core official deeply understanding the US financial system and regulatory logic. This points to a clear signal: financial on-chain transformation has moved from marginal innovation to mainstream agenda, especially within US regulatory perspectives, where it has become a foreseeable evolution path.

Why will this process accelerate during a downturn?
Because the market’s cooling-off period is the golden window for infrastructure solidification, compliance framework construction, and institutional quiet布局。Without frantic speculation interference, true technological integration and regulatory dialogue can deepen.

二、Policy Cycle Shifts: US and China Send Loose and Friendly Signals

Looking at the key interaction period of 2025–2026, the policy directions of the two largest economies, the US and China, show a shift toward crypto- and growth-oriented assets:

· US Direction: Expected to move toward “tax cuts, interest rate cuts, loosening crypto regulation.” Once the interest rate cut cycle begins, the pressure of tightening global liquidity will ease, and valuation suppression of risk assets will weaken. Meanwhile, the gradual clarifying of regulatory frameworks (even if slow) will provide a safer entry channel for institutional funds.
· China Direction: The policy focus is on “moderate easing and financial stability,” primarily aimed at suppressing extreme asset price volatility and creating a stable environment. Although the direct embrace of cryptocurrencies is less likely, the gentle expansion of macro liquidity and financial stability needs will indirectly reduce systemic downward risk in global markets, providing a relatively stable external environment for digital assets.

Though US and Chinese policies differ in approach, the shared orientation toward “loose” and “stable expectations” forms a downside protection cushion for the crypto market, especially for mainstream assets.

三、Why Ethereum? The Value Capture Logic Deepens in the Trend of Fusion

Among many crypto assets, Ethereum has always been our core long-term preferred configuration because its value capture capability is highly aligned with the trend of financial integration:

1. Irreplaceable Niche: Ethereum is far more than just a digital currency; it is the global settlement layer, decentralized application platform, and issuance hub for digital assets. As traditional finance begins migrating on chain, what it needs is not a simple payment tool but a foundational protocol capable of supporting complex financial logic, ensuring security, and enabling programmability—this is exactly the moat built by Ethereum over the past years.
2. Clear Cash Flow and Value Accumulation Model: With the deepening of EIP-1559 burning mechanism and POS staking, Ethereum’s economic model has shifted to a “deflation + interest-earning” dual-driven system. The more frequent the on-chain activity, the stronger the fee burning and staking demand, creating an endogenous value accumulation flywheel. During market downturns, these mechanisms silently operate, reserving value for the next wave of activity.
3. Preferred Testing Ground for Institutions: From bond tokenization to on-chain fund shares, from CBDC bridges to enterprise DeFi pilots, most institutional experiments choose Ethereum or layer-2 solutions based on it. This “default choice” status has a strong network effect during the early stages of integration.

四、Now Is the “Strike Zone” for Strategic Deployment

When the market is extremely panicked, with funds and sentiment yet to recover, it is often the best window for long-term investors to deploy. For Ethereum, this “strike zone” is built on the following points:

· Valuation Returns to Rationality: Compared to previous highs and fundamental metrics, current valuations have digested most pessimistic expectations, with limited downside risk.
· Continuous Technical Evolution: Post-Kanun upgrade, Layer 2 performance and cost advantages are further unleashed, ecosystem applications are continuously improving, and the technical prerequisites for large-scale adoption are in place.
· Clear Cycle Positioning: We are at a confluence of policy from tightening to easing, technology transitioning from infrastructure to applications, and market shifting from speculation to utility value. Ethereum is at the forefront in these dimensions.

五、In Closing

The history of the crypto market has never been written in a straight line but spirals forward in cycles of “collapse - recovery - breakout.” Today’s silence is precisely for tomorrow’s sound.

The trend of on-chain financial systems will not regress; the looseness of US and China policies is already faintly visible; and as the core protocol layer of this integration, Ethereum’s story of value capture has just begun.

Remain rational when others are fearful, recognize structural lights in the downturn—this may be the gift the market offers to the thoughtful.

Opportunities always quietly sprout where no one pays attention.
Only after the tide recedes can we see who is truly building the future. (Rhino Crypto Community)

Risk warning: The above analysis is for market trend discussion only and does not constitute any investment advice. Crypto assets are highly volatile; readers should exercise rational judgment, make independent decisions, and pay attention to asset risk allocation. #创作者成长激励计划 $ETH ‌$GT $XRP