From Bitcoin Halving to DeFi Boom: Changes and Reflections in the Digital Money Market

The third Bitcoin Halving has passed four months. As the DeFi market experiences wave after wave of excitement, the initial anticipation and attention towards the Halving trend has gradually subsided. Although most Bitcoin whales are still taking a wait-and-see approach, the trend of Bitcoin migrating to the Ethereum network has become a foregone conclusion.

Data shows that the number of Bitcoin transferred to Ethereum has reached 45%. Bitcoin holders' pursuit of high returns in the DeFi sector is increasing.

The current landscape of the digital money market has undergone some changes. EOS is gradually fading from mainstream view, while Tron has intensified its market expansion efforts by launching the SUN token to compete for market share. Although the 2.0 version of Ethereum has not yet been released, its DeFi ecosystem still attracts a significant influx of capital.

In contrast, the voice of Bitcoin seems to have weakened. But will its market position be shaken?

In the field of Digital Money, the true winners are the projects that can bring actual returns to investors. Recently, the high yields of DeFi projects within the Ethereum ecosystem have attracted many investors, while the decline in Bitcoin prices has raised concerns about its prospects for some. However, the value of Bitcoin should not be judged solely based on short-term price fluctuations.

The positioning of Bitcoin is changing. From being initially viewed as a speculative object, it is now gradually being accepted by mainstream investors. Many seasoned Wall Street professionals have incorporated Bitcoin into their portfolios, with some even allocating over 50% of their assets to Bitcoin.

In certain regions, Bitcoin is playing a role in hedging against currency devaluation. For example, in Africa, Bitcoin trading volume has significantly increased. Some merchants in Lagos, Nigeria, are paying suppliers with Bitcoin to avoid the impact of local currency devaluation.

However, the actual application of Bitcoin still faces challenges. There have been attempts to survive for 21 days in Beijing, Shanghai, and Shenzhen relying solely on 0.21 Bitcoin, which ultimately nearly failed due to difficulties in exchanging for fiat currency. This indicates that the use of Bitcoin in daily life still has limitations.

The founder of Bitcoin, Satoshi Nakamoto, once warned that excessive early attention could jeopardize the project's development. This viewpoint still holds practical significance today. As a pioneer of blockchain technology, the value of Bitcoin should not be limited to short-term speculation but should focus on long-term development.

Currently, the digital money market is undergoing rapid transformation. New projects are emerging one after another, but not all popular projects can withstand the test of time. Projects that truly have long-term value need to continuously improve and innovate in areas such as technology, applications, and ecosystems.