8.26 AI Daily Crypto Assets market ushers in a wave of transformation, intensifying the game between regulation and innovation.

1. Headline

1. Ethereum ushers in a milestone architectural transformation, leading the new era of verifiable computing.

Ethereum is preparing for its most significant architectural transformation since its inception: replacing the EVM instruction set with the RISC-V instruction set. This change aims to address the performance bottlenecks that Ethereum faces in the ZK era and pave the way for the vision of verifiable computing.

The RISC-V instruction set has higher performance and scalability compared to the EVM. The Ethereum Foundation believes that this transition will enable Ethereum to support a wider range of application scenarios and become the foundational trust layer of the next generation of the internet. However, this transformation has also raised concerns within the community, with some developers worried that backward compatibility issues may pose significant challenges.

Industry analysts point out that Ethereum's decision reflects its courage to keep pace with the times. In the context of the rapid development of ZK technology, Ethereum must make corresponding adjustments to maintain its leading position. Although there are challenges in the transformation process, in the long run, this will bring new development opportunities for Ethereum.

2. Federal Reserve Board member fired by Trump, raising concerns about the independence of the Federal Reserve.

President Trump of the United States recently fired Federal Reserve Board member Lisa Cook, citing her dishonest behavior in a loan application. This move immediately sparked widespread questioning and concern about the independence of the Federal Reserve.

Analysts point out that Trump's move may disrupt the budget balance of the U.S. government and affect the Federal Reserve's policy-making. The independence of the Federal Reserve is a key factor in maintaining the safe-haven status of U.S. Treasuries and the dollar. Once the Federal Reserve is subject to political interference, it will shake the market's confidence in the dollar.

On the other hand, Trump has long been critical of the Federal Reserve's monetary policy, and this dismissal is seen as an attempt to apply pressure on the Fed to force a rate cut. However, some analysts believe that Trump's actions may trigger a broader power struggle, further escalating tensions between the White House and the Federal Reserve.

Overall, this event once again highlights the importance of the Federal Reserve's independence. The Federal Reserve needs to strike a balance between political pressure and economic realities to maintain the coherence and effectiveness of monetary policy.

3. The application for cryptocurrency spot ETFs has been delayed again, casting a shadow over regulatory prospects.

The U.S. Securities and Exchange Commission ( SEC ) has once again delayed its decision on multiple cryptocurrency spot ETF applications, including Canary's PENGU ETF and Grayscale's Cardano ETF. This move further postpones the timeline for the approval of cryptocurrency spot ETFs.

Industry analysts point out that the SEC maintains a cautious attitude towards cryptocurrency spot ETFs, primarily due to the lack of regulation in the cryptocurrency market and the risks of manipulation. The SEC has consistently required spot ETF issuers to demonstrate that the cryptocurrency spot market is sufficiently large and cannot be manipulated.

On the other hand, there is also the viewpoint that the SEC's delay in the decision may just be to give itself more time for in-depth review. Once the regulatory policies are clear, the approval of spot ETFs will be just around the corner. After all, the introduction of spot ETFs will provide institutional investors with a more convenient channel for cryptocurrency investment, which is beneficial for the long-term development of the industry.

Regardless, regulatory clarity is key to the approval of cryptocurrency spot ETFs. The industry needs to strengthen communication with regulatory agencies, improve market supervision, and clear obstacles for the launch of spot ETFs.

4. The cryptocurrency market is experiencing a sell-off, and investor sentiment is low.

Driven by expectations of interest rate cuts from the Federal Reserve, the cryptocurrency market experienced a massive sell-off this week. Bitcoin briefly fell below the $110,000 mark, and major tokens like Ethereum and Solana also saw declines of 5%-8%.

Analysts point out that this round of sell-off reflects a declining confidence among investors in the cryptocurrency market. After a long bear market, investors' expectations for a bull market are increasingly dim. Even positive news struggles to uplift market sentiment.

At the same time, institutional funds are flowing out of the cryptocurrency market in large quantities. Data shows that Bitcoin ETFs have seen net outflows for five consecutive months, with an expected outflow of up to $1.2 billion this month. This further exacerbates the selling pressure in the market.

However, there are also optimistic analyses that suggest the current sell-off is just a short-term fluctuation caused by seasonal factors. In the long term, there is still significant room for growth in the cryptocurrency market, especially with the continued inflow of institutional funds. Investors should not be misled by short-term fluctuations, but should maintain patience and confidence.

5. Eclipse Labs announces a 65% layoff, former CEO resigns voluntarily.

The Ethereum SVM Layer 2 network Eclipse announced today that it will adjust its team and leadership structure to adapt to new developments following the TGE. As part of this transformation, Sydney will assume the role of CEO after actively stepping down from Litquidity. To align resources with the updated strategy, the team has cut 65% of its staff.

Eclipse stated that this decision aims to provide the flexibility needed for Eclipse to execute the next phase. In the future, Eclipse will prioritize building groundbreaking applications on its L2 infrastructure, with more details to be released.

Industry analysts believe that Eclipse's move reflects the severe challenges facing the Layer 2 sector. In the context of the Ethereum mainnet's expansion, the development space for Layer 2 networks is being squeezed. Eclipse has to make strategic adjustments to seek new development directions.

At the same time, the layoffs have raised doubts about the prospects of the Eclipse project. The project team needs to provide more details to clarify the specific development plans in order to regain investors' confidence. Overall, there are still many uncertainties regarding the future of the Layer 2 sector, and the industry's development is worth ongoing attention.

2. Industry News

1. Bitcoin's short-term plunge has triggered a wave of liquidations across the network, causing panic in the cryptocurrency market.

On August 26, Bitcoin plummeted by $5,000 in just five minutes, triggering a global cryptocurrency market liquidation of $940 million in a single day, with $826 million being long positions. The main reason was that a Bitcoin whale sold approximately $2.7 billion worth of BTC, causing the price to briefly fall below the key support level of $110,000.

Analysts indicate that the recent plunge has triggered panic among investors. On-chain data shows that the number of active Bitcoin addresses and transaction volume have significantly increased in the past 24 hours, reflecting heightened activity among market participants. At the same time, the outflow of Bitcoin from major exchanges has also risen markedly, which may suggest that some investors are buying the dip.

From a technical perspective, after Bitcoin briefly fell below the $110,000 mark, the support level below is highly anticipated. If it cannot gain strong support around $109,000, Bitcoin may further test the $108,000 level or even lower. However, some analysts believe that this round of decline may represent the second bottom of a double bottom formation, and Bitcoin is expected to build a base and rebound from here.

Overall, the short-term plunge of Bitcoin has triggered panic among investors. The market will closely watch whether Bitcoin can stabilize at key support levels, and whether there will be further declines or a rebound. Investors should remain cautious and manage their risk exposure.

2. Ethereum inflows are significant, and TVL has reached a new record high.

Despite the short-term plunge of Bitcoin, Ethereum showed relatively better resilience. On-chain data shows that major exchanges for Ethereum experienced a net outflow in the past 24 hours, which may suggest that funds are flowing into DeFi and other ecological sectors.

In fact, the total value locked in Ethereum ( TVL ) has continued to rise in this round of market, recently breaking a new high of 26 billion USD. Analysts believe that the continuous increase in TVL reflects that institutional funds are accelerating their inflow into the Ethereum ecosystem, mainly benefiting from the rapid development of popular sectors such as DeFi and RWA.

At the same time, the number of active addresses and transaction volume on Ethereum have also seen a significant increase, greatly enhancing trading activity. The inventory of exchanges on Ethereum has continuously declined to a historical low, which may further confirm the trend of funds flowing out of exchanges and into the ecosystem.

Analysts point out that the prosperity of the Ethereum ecosystem is mainly due to its first-mover advantage, technical strength, and ecological diversification. In the future, Ethereum is expected to continue attracting more capital inflows, and TVL may further rise. However, there are also voices warning that the rapid expansion of TVL may pose a risk of bubble formation, and investors should remain cautious.

3. The Solana ecosystem continues to heat up, and the new project FootballFun has attracted attention.

The Solana ecosystem continues to heat up, with the new project FootballFun recently attracting widespread attention in the market. Data shows that the number of addresses for this sports prediction application has exceeded 10,000, and Moonbirds holders can receive football player cards for free.

Analysts believe that the rapid development of FootballFun highlights the growth potential of the Solana ecosystem in the GameFi sector. Thanks to advantages such as high performance and low transaction fees, Solana is attracting more and more gaming projects.

At the same time, other popular projects within the Solana ecosystem have also performed well. The trading volume of the well-known decentralized exchange Hyperliquid has continued to rise, recently surpassing the largest in the world, becoming the leader in spot trading volume.

Analysts point out that the continuous warming of the Solana ecosystem is mainly attributed to its technical strength, ecological diversification, and continuous capital inflow. However, some voices remind that the Solana ecosystem is still in its early development stage, and its security and decentralization may need further improvement. Investors need to conduct a comprehensive assessment of the project and manage their risk exposure.

4. Regulatory policies raise market concerns, U.S. stock market cryptocurrency concept stocks decline sharply.

On August 26, cryptocurrency concept stocks in the US stock market generally fell. Among them, Coinbase dropped by 4%, Circle by 7%, and MicroStrategy by 4.17%. Analysts believe this is mainly influenced by Trump firing Federal Reserve Board member Cook.

Trump's move is seen as a challenge to the independence of the Federal Reserve, raising concerns in the market about the future of the Fed's monetary policy. Analysts point out that if the Fed's independence is weakened, uncertainty regarding future monetary policy will increase, potentially raising the actual cost of borrowing and putting pressure on risk assets.

At the same time, the U.S. Securities and Exchange Commission ( SEC ) has recently postponed the review of multiple cryptocurrency ETF applications, which has also intensified market concerns about regulatory policies. Analysts say that the uncertainty of regulatory policies may hinder institutional capital from flowing into the cryptocurrency market, creating certain obstacles to industry development.

However, some analysts believe that the clarification of regulatory policies is beneficial for the long-term healthy development of the cryptocurrency market. Reasonable regulation will provide confidence to institutional investors, thus promoting more capital inflow and benefiting the long-term development of the industry.

5. The volatility of the altcoin market has intensified, and investors need to be cautious of risks.

While Bitcoin has plummeted, the altcoin market has also experienced severe volatility. Data shows that mainstream altcoins such as Solana and Dogecoin have all seen declines ranging from 5% to 10% in the past 24 hours.

Analysts say that the severe fluctuations in the altcoin market are mainly influenced by the sharp decline of Bitcoin. In the cryptocurrency market, the trend of Bitcoin usually leads the direction of the entire market. Additionally, the high-risk characteristics of altcoins themselves are also important reasons for the severe volatility.

Meanwhile, on-chain data shows that the outflow of altcoin exchanges has significantly increased in the past 24 hours, which may suggest that some investors are buying the dip. However, some analysts remind that there is a high speculative demand in the altcoin market, and investors need to remain highly vigilant.

Overall, the extreme volatility of the altcoin market poses certain risks to investors. When participating in altcoin trading, investors need to conduct a comprehensive assessment of the projects, manage their risk exposure well, and closely monitor the trends of mainstream cryptocurrencies such as Bitcoin.

6. Institutional capital outflows are intensifying, Bitcoin ETF may see the second-highest monthly net outflow in history.

Despite the ongoing growth of the Ethereum ecosystem, the outflow of funds from Bitcoin ETFs has drawn market attention. Data shows that the cumulative net outflow of Bitcoin ETFs in August is expected to reach $1.2 billion, second only to February's $3.5 billion, setting a historical second-high record.

Analysts say that the outflow of funds from Bitcoin ETFs is mainly affected by the withdrawal of institutional funds during the summer. Generally, institutional investors tend to reduce their positions during the summer, leading to intensified fund outflows. Meanwhile, the continuous increase in the supply of Bitcoin ETF products may also exacerbate the pressure of fund outflows.

However, some analysts believe that the outflow of funds from Bitcoin ETFs is merely a short-term fluctuation caused by seasonal factors, and in the long term, institutional funds are still expected to continue flowing in. As the "digital gold" of cryptocurrencies, Bitcoin's hedging properties may become more pronounced against the backdrop of global macroeconomic turmoil.

Overall, the intensified outflow of funds from Bitcoin ETFs has attracted market attention. Investors need to closely monitor the movements of institutional funds, as well as changes in the macroeconomic situation and regulatory policies, and cautiously seize investment opportunities.

7. Industry leaders gather at WebX2025 to discuss the trends of tokenization.

On August 26, the WebX2025 conference was held in Japan. Several industry leaders discussed the development trends and challenges faced by tokenization.

The CEO of Pancake Swap stated that standardization is a core issue that urgently needs to be addressed in the tokenization of physical assets (RWA). The significant differences in risk attributes, formats, and distribution channels among various RWAs severely hinder their liquidity. At the same time, cross-chain infrastructure is crucial for enhancing liquidity.

SWIFT officials believe that in the future, central bank digital currencies, stablecoins, and tokenized deposits will coexist diversely. SWIFT will leverage standardized messaging formats to build interoperability bridges, prevent the fragmentation of the financial ecosystem, and ensure the seamless circulation of different forms of digital assets.

Participants generally believe that tokenization has matured from early experiments with security tokens to practical applications, and the readiness of the ecosystem, pragmatic solutions, and clear regulations are key factors driving the development of tokenization. Tokenization is expected to enhance the efficiency and inclusiveness of the financial system, but core challenges such as standardization and interoperability still need to be addressed.

8. Analysts warn that XRP faces a critical support test, the $3 death line will be revealed.

XRP is at a critical juncture of technical and fundamental battles. The intensification of whale activity and the growing interest from institutions create a delicate balance, making the $3 level a battleground for both bulls and bears.

From a technical perspective, XRP is facing increased short-term downward pressure, with the $3 support level being tested. If it falls below this level, XRP may further drop to $2.7 or even lower. However, the futures market shows that XRP futures continue to attract institutional investment, with the total value of open contracts exceeding $1 billion, paving the way for a spot ETF.

3. Project News

1. Sui Network accelerates ecological construction, Move system projects are rising one after another.

Sui Network is a brand new blockchain project created by the core team that was involved in the Diem( development at Facebook prior to its transition into cryptocurrency). The project is built on the Move language and aims to create a high-performance, low-cost Layer 1 blockchain.

Latest Updates: Sui Network officially launched its mainnet this year and introduced the first batch of ecosystem projects. These include the decentralized exchange Cetus, the NFT marketplace Turbo, and the decentralized lending protocol Navi, among others. All these projects are developed based on the Move language, showcasing the diversified development of the Sui ecosystem. Meanwhile, Sui also launched the SuiPlay game incubator to attract more game projects to join.

Market Impact: As a representative of the Move language camp, the rise of Sui Network is expected to promote the development of the entire Move ecosystem. Move is considered the next generation of smart contract languages, with higher security and composability. The prosperity of the Sui ecosystem will provide development space for more innovative projects and is expected to drive a wave of innovation across the entire field.

Industry Feedback: Well-known investment firm Multicoin Capital has given a high evaluation of Sui Network's technical strength and development prospects in its latest report. The report points out that Sui is expected to become another important Layer 1 blockchain following Ethereum. Industry insiders generally believe that the Sui ecosystem is worth continued attention.

2. The Aptos blockchain ecosystem is beginning to take shape, with Move projects competing to establish themselves.

Aptos is another public chain project based on the Move language, founded by former Meta employees. Since its launch at the end of last year, the ecological construction has progressed rapidly.

Latest updates: Recently, the first batch of ecological projects on the Aptos chain has been launched one after another, covering multiple fields such as decentralized exchanges, lending protocols, and NFT markets. Among them, decentralized derivatives exchange Crydon and NFT market Topaz have entered the public testing phase, demonstrating the initial formation of the Aptos ecosystem. Meanwhile, the Aptos Foundation continues to support the incubation of more innovative projects.

Market Impact: As one of the earlier public chain projects in the Move ecosystem, the ecological development of Aptos will directly influence the development prospects of the entire Move camp. If the Aptos ecosystem can attract more quality projects to settle in, it will help in the popularization and application of the Move language in the field. Conversely, it may weaken Move's competitiveness.

Industry feedback: The cryptocurrency analysis firm Messari gave a positive evaluation of Aptos's technological advantages and development potential in its latest report. The report believes that Aptos is expected to become another important public chain outside of Ethereum. However, some analysts are cautious about the current development status of the Aptos ecosystem, suggesting that it needs more time for observation.

3. Movement public chain launches token issuance, Move ecosystem adds new strength.

Movement is the latest public chain project in the Move ecosystem, and its token issuance plan has recently been officially launched.

Latest News: Movement announced that it will soon launch a token issuance, including public offerings, institutional private placements, and various other forms. The Movement team stated that the token issuance will inject new development momentum into the project and help attract more high-quality projects to settle in. Movement will also launch an incentive program to encourage developers to contribute code.

Market Impact: As a rising star project in the Move ecosystem, the token issuance of Movement will further promote the development of the Move ecosystem. If Movement can attract a large number of quality projects and developer resources, it will help the Move language occupy a larger share in the field. At the same time, the success of Movement will also set a benchmark for other Move projects.

Industry Feedback: The well-known investment institution Polychain Capital has expressed optimism about the development prospects of the Movement project. The institution believes that Movement has the potential to become the "Ethereum" of the Move ecosystem. However, some analysts have doubts about the token economic model of Movement, believing that its sustainability still needs to be tested over time.

Overall, the Move ecosystem is accelerating its development, with projects like Sui, Aptos, and Movement rising in competition, which will drive the entire Move camp to gain greater influence in the field. The development prospects of the Move language are worth continuous attention.

4. Economic Dynamics

1. Trump's dismissal of Federal Reserve Board member Cook raises market concerns.

Economic Background: The US economy has experienced moderate growth over the past year, but inflation rates remain persistently high, far exceeding the Federal Reserve's target level of 2%. The unemployment rate remains at historically low levels, but the risks of an economic slowdown are continuously increasing.

Important Event: U.S. President Trump announced the dismissal of Federal Reserve Governor Lisa Cook, citing her hawkish stance on interest rate decisions. This move has raised questions about the independence of the Federal Reserve.

Market Reaction: Trump's decision shocked the market, causing a brief decline in the dollar exchange rate and a steepening of the treasury yield curve, reflecting investors' concerns about long-term inflation. The stock market fell as investors worried that political interference would affect the Federal Reserve's policy-making.

Expert Analysis: Economist Stephen Harmalick stated that undermining the independence of the Federal Reserve is concerning, as the newly appointed governors may be directly influenced by presidential directives, which would be detrimental to the financial markets, potentially leading to rising bond yields and increased pressure on government debt management. Analysts at Credit Suisse noted that this event has reignited concerns regarding the independence of the Federal Reserve, weakening market confidence in the United States.

2. Federal Reserve Chairman Powell reiterates the "gradual" rate hike path

Economic Background: Despite high inflation rates, the U.S. job market remains strong, and economic activity continues to grow moderately. The Federal Reserve faces the challenge of seeking a balance between controlling inflation and avoiding an economic hard landing.

Important Event: At the annual Jackson Hole Economic Policy Symposium, Federal Reserve Chairman Jerome Powell reiterated that he will continue to raise interest rates "gradually" until there are clear signs of a slowdown in inflation.

Market Reaction: Powell's speech was interpreted by the market as a dovish signal, with investors expecting a slowdown in interest rate hikes. US stocks rebounded, with the S&P 500 and Nasdaq indices reversing early losses and closing higher.

Expert Analysis: Goldman Sachs analysts stated that Powell's speech emphasized a gradual interest rate hike path, suggesting a 0.5 percentage point increase in September, rather than 0.75 percentage points. However, they warned that if the job market and inflation data remain strong, the Fed may increase the pace of rate hikes before the end of the year.

3. The European energy crisis intensifies, Germany activates "defense mode".

Economic Background: Affected by Russia's reduction of natural gas supplies, energy prices in Europe have soared, exacerbating inflation. Countries like Germany are facing the risk of energy shortages, and the pressure of economic slowdown is continuously increasing.

Important Event: The German government has announced the launch of the second phase of its emergency energy plan, "defense status," in response to the possibility of Russia further reducing natural gas supplies.

Market Reaction: European stock markets fell, and the euro to dollar exchange rate dropped to its lowest level in two decades. Investors are concerned that the energy crisis will further impact the European economy and exacerbate inflationary pressures.

Expert Analysis: The chief economist of Deutsche Bank stated that Germany's activation of the "defensive state" reflects the severity of the current energy shortage. If Russia completely cuts off gas supplies, the German economy will fall into recession. Goldman Sachs analysts expect that the eurozone economy will enter a slight recession in the fourth quarter of this year.

5. Regulation & Policy

1. Trump fires Federal Reserve board member Cook, raising concerns about the independence of the central bank.

U.S. President Trump fired Federal Reserve Board member Lisa Cook, raising new concerns in the market about the independence of the Federal Reserve. As the central bank of the United States, the independence of the Federal Reserve is crucial for maintaining stability in the financial markets.

Trump's decision to fire Cook is seen as an attempt to exert pressure on Federal Reserve policymakers. Cook has openly stated that tariffs could drive up prices, forcing the Fed to maintain higher interest rates for a longer period. Her departure would allow Trump to further reshape the Federal Reserve Board, potentially influencing the direction of future monetary policy.

The market reaction is a change in U.S. Treasury yields, reflecting uncertainty about potential policy changes and the future direction of the Federal Reserve. Analysts warn that this unprecedented move could test the independence of the Federal Reserve and undermine market confidence in the U.S. The dollar exchange rate has weakened, and risk aversion has increased.

UBS Global Wealth Management Chief Economist Paul Donovan stated that the increasing politicization of the Federal Reserve could lead to a higher risk premium in the U.S. bond market, raising the actual borrowing costs and increasing the government's debt repayment pressure. This situation could undermine the dollar's status as a reserve currency.

2. National Committee Member of the Chinese People's Political Consultative Conference Yao Zhisheng: Hong Kong should strive to become a global stablecoin issuance center.

Yao Zhisheng, a standing committee member of the National Committee of the Chinese People's Political Consultative Conference, pointed out in an article that stablecoins anchored to fiat currencies combine the decentralized attributes of blockchain technology with the value stability of fiat currencies. As an international financial center and the largest offshore RMB business center in the world, Hong Kong should leverage its "one country, two systems" advantage to seize the high ground in the development of stablecoins and strive to become a global center for stablecoin issuance.

Stablecoins are a type of cryptocurrency that is pegged to fiat currency, offering high transparency and price stability. As regulatory bodies improve their oversight of stablecoins, the prospects for their application in payment, settlement, and other areas are broad.

The Chief Executive of the Hong Kong Monetary Authority, Eddie Yue, previously stated that stablecoins are expected to become an important infrastructure for the development of digital finance in Hong Kong. Hong Kong is studying how to use stablecoins to promote cross-border payments and digital financial innovation.

Industry insiders believe that Hong Kong, leveraging its position as an international financial center and the advantages of being an offshore RMB center, has the potential to develop into a global stablecoin issuance center. However, Hong Kong also needs to improve relevant regulatory systems to ensure the transparency and prudence of stablecoin issuance.

3. The U.S. Securities and Exchange Commission has launched a public comment period for the Canary Staking INJ ETF.

The U.S. Securities and Exchange Commission (SEC) has initiated a 21-day public comment period for the Canary Staked INJ ETF and will decide whether to approve the product within a maximum of 90 days. If approved, this will become one of the first exchange-traded funds in the U.S. market to track Injective (INJ) and combine staking yields.

Injective is a decentralized blockchain protocol designed to provide high-performance and low-cost infrastructure for financial applications. INJ is the native token of the Injective network, used for paying transaction fees and staking.

Staking tokens refers to the act of locking tokens for a period of time to earn rewards. Staking INJ ETF will allow investors to earn INJ staking rewards while enjoying the liquidity and regulatory protection of the ETF.

Previously, the SEC had approved several Bitcoin futures ETFs and short-term futures ETF products. However, spot crypto ETF applications have not been approved, mainly due to the regulatory framework for crypto assets being incomplete.

Industry insiders believe that the SEC's initiation of the public comment period for the Canary staking INJ ETF reflects that the regulatory agency is carefully evaluating crypto asset ETF products. If this product is approved, it will pave the way for future applications for other crypto asset ETFs.

4. Fidelity Releases Ethereum Report, Focusing on Its Long-Term Potential in the Digital Asset Market

Fidelity Investments recently released a digital asset report focusing on Ethereum's long-term potential in the digital asset market. The report points out that Ethereum's investment philosophy is to serve as a technology platform, using its native token Ether as a means of payment.

The report outlines the fundamental differences between Ethereum and Bitcoin as well as other assets. It presents three scenario assumptions regarding the long-term potential of Ethereum.

In a bull market scenario, the Ethereum smart contract platform will comprehensively reshape social collaboration and trust mechanisms, becoming the core infrastructure for global coordination.

In a baseline scenario, smart contract platforms only bring improvements in certain financial and non-financial areas, serving as a balancing protocol for traditional systems. Many users and businesses benefit from decentralized contract networks, but due to their inherent financial nature, the adoption rate is lower than that of typical technology adoption curves.

In a bear market scenario, smart contract platforms fall into cyclical speculation, yet they are unable to produce products that the public truly needs.

Fidelity believes that Ethereum remains the dominant platform capable of providing reasonable value capture for investors, but professional competitors will limit its market share to use cases that demand the highest levels of security and trust.

The report reflects institutional investors' attention to the long-term development prospects of Ethereum. As the regulation of crypto assets becomes increasingly refined, institutional investors are expected to become an important force driving the development of the industry.