Family, who understands! Yesterday, the crypto circle was shaken by the news of '20 billion leverage liquidation,' causing chaos. Many newcomers were directly scared and messaged me asking if the bear market is coming back. Here’s the conclusion: Don't panic! This seemingly bloody liquidation is essentially the market 'scraping the bone to detoxify,' and it actually hides three healthy signals that excite veteran players—today, let's peel back the surface and explain the essentials!
First, it's important to clarify that liquidation is not a signal that the market is going down, but a necessary process of 'squeezing the air out of the speculative bubble.' The 20 billion liquidation data in DWF Labs' report looks alarming, but a detailed breakdown shows that most of it comes from short-term leveraged funds that chased highs and sold off. These funds inherently carry a 'gambler's attribute,' increasing leverage with a slight rise and getting forcibly liquidated with a slight fall; they should have been filtered out by the market long ago. What really deserves attention is the capital movement behind the liquidation: the supply of stablecoins has surged over 50% year-on-year, which is not a small number! It's important to know that stablecoins are the 'lifeblood' of the market. Previously, this portion of funds mostly rushed with hot topics; now over 20 billion has flowed into interest-bearing stablecoins—what does this indicate? Funds have become rational! People are no longer thinking of getting rich quick through gambling but are pursuing stable returns. This 'asset management trend' is what a mature financial market should look like.
A more critical explosive signal is the surge in on-chain real-world assets (RWA)! It skyrocketed from 4 billion to 18 billion, this growth rate directly crushes most popular cryptocurrencies. Some newcomers may not understand what RWA is; simply put, it's about moving real-world assets (like government bonds, real estate) onto the chain. This operation is significant—it means that the cryptocurrency market is no longer a 'house of cards' but is beginning to connect with the real world's financial system. Additionally, the proportion of DEX derivatives has quadrupled, indicating that the market's risk hedging ability is strengthening. Previously, it was 'naked speculation'; now, risks can be mitigated through derivatives. Isn't this undeniable proof of the market evolving?
Finally, to summarize: this wave of liquidation is not the end, but the starting point of the cryptocurrency market shedding its speculative guise. Those players relying on leverage to gamble have been eliminated, leaving behind rational funds and real demand. The market is slowly transforming into a credible financial infrastructure. Follow me @链上标哥 to avoid getting lost!
