Cryptocurrency Roller Coaster: Ethereum breaks $4600 to set a record, with $5 billion evaporating overnight for 110,000 leveraged players.
Today, the cryptocurrency market presents a 'tale of two extremes': Ethereum leads the surge, breaking through $4600, with institutional funds pouring in over $1 billion through ETFs in a single day; on the other side, the high-leverage derivatives market is awash in blood, with 117,000 traders liquidated for $5.01 billion in a single day, setting the record for the most brutal liquidation in history. In this drama of simultaneous revelry and slaughter, policy and technological change are quietly reshaping the industry landscape.
1. OKB Surges 200%: The power of destruction economics and Layer 2 ambitions
OKX's fire ignited the market: A one-time destruction of 65.25 million OKB (30% of the circulating supply), permanently locking total supply at 21 million. This move stimulated OKB's price to surge 200% within two hours, surpassing $121. However, the deeper intention lies in strategic shift:
X Layer Upgraded to Super Financial Public Chain: Based on zkEVM technology, increasing TPS to 5000, reducing gas costs by 40%, focusing on three major scenarios: DeFi, payments, and RWA (real asset tokenization), directly targeting Polygon and Coinbase's Base chain;
Ecological Integration Ambition: Integrating OKX Wallet, exchange, and payment system into X Layer, even sacrificing its own OKTChain (to be shut down next year), forming a closed loop of 'exchange wallet public chain'.
Revelation: Exchange public chains are upgrading from mere expansion tools to fortresses competing for traditional financial scenarios.
2. Ethereum's Institutional Frenzy: The undercurrents behind the ETF's $1 billion daily inflow
Ethereum surged to $4600 today, with a monthly increase of 16%, driven by a 'quiet revolution':
BlackRock + Fidelity = Capital Flood: On August 12 alone, the net inflow of U.S. Ethereum ETFs was $1.01 billion, with BlackRock accounting for $640 million and Fidelity attracting $277 million, bringing total inflows to over $10.8 billion;
Staking Economic Awakening: Since transitioning to PoS in 2022, institutions have purchased over 50% of the newly produced ETH, viewing it as a 'yield-bearing digital treasury';
Temptation of Historical Highs: Polymarket traders bet on a 65% probability of reaching $5000 this month, but Vitalik warns that corporate hoarding may trigger an 'excessive leverage crisis'.
Risk Point: Exchange ETH inventory has dropped to a 9-year low (15.28 million), tightening liquidity may amplify volatility.
3. New Regulations for Hong Kong Stablecoins: How will compliance revolution reconstruct financial pipes?
The Hong Kong (Stablecoin Ordinance) effective on August 1 has brought a silent earthquake:
Ending the Era of Anonymity: Requiring all stablecoin holders' identities to be continuously verifiable, transfers limited to KYC-certified wallets, completely eliminating 'regulatory arbitrage space';
Technical Weapon ERC 3643: Writing compliance into the token's DNA—automatically intercepting suspicious transactions through 'compliance contracts' to achieve real-time on-chain freezing;
The Rise of Offshore RMB (CNH) Stablecoins: Becoming a new vehicle for cross-border clearing, Shenzhen pilots two-way exchange of digital yuan, reducing costs by 30%.
Far-reaching Impact: Hong Kong is transforming from a 'regulatory follower' to a 'rule-maker', pushing stablecoins from speculative tools to cross-border trade settlement infrastructure.
4. U.S. Policy Easing: Retirement funds entering the market ignite a $12 trillion capital pool
The Trump administration's 'Project Crypto' is opening Pandora's box:
401(k) Gate Opened: Allows $8 trillion in retirement funds to invest in cryptocurrencies, breaking down barriers for traditional capital entry;
SEC Regulatory Restructuring: ERC 3643 established as the compliance standard for RWA tokenization, bridging the asset channel between TradFi and DeFi;
CFTC's 'Crypto Sprint' Plan: Ending the gray area of Bitcoin spot trading, allowing direct trading on registered futures exchanges.
Contradiction: Policies lack execution details, and the collaboration progress between Congress and the CFTC is unclear, potentially forming a 'regulatory vacuum'.
5. $5 billion liquidation warning: The wealth meat grinder under leverage frenzy
As Ethereum breaks through $4600, the derivatives market is witnessing a bloody massacre:
Single-day liquidation of $5.01 billion: On August 13, over 117,000 people were liquidated, with shorts accounting for 60% of the losses, far exceeding the August 10 record ($343 million);
Even Big Shots Fail: BitMEX founder Arthur Hayes sold 2373 ETH (worth $8.32 million) during the volatility, and a week later bought back at a high price, publicly repenting 'never to take profits again';
AI Sector's Strange Rebound: The TAO and RENDER, which led the decline the day before, surged 6% today, while Fartcoin skyrocketed 18.39% in a single day, showing hot money is wildly flowing between sectors.
Survival Law: ETH borrowing rates on exchanges skyrocketed to 35% annualized, high funding rates (0.1%/hour) became the fuse for both bulls and bears.
Investment Perspective: Surfing between institutional dividends and the ruins of leverage
Short-term Caution Against Corrections: Ethereum's RSI has entered overbought territory, with the 4400-4500 USD range forming a battleground for bulls and bears; falling below 4160 may trigger programmatic sell-offs;
Mid-term Embrace of Compliance: Hong Kong's ERC 3643 stablecoin and the U.S. RWA tokenization will give rise to a new trillion-dollar sector, focus on compliance infrastructure service providers;
Long-term Bet on Integration: Traditional finance's irreversibility into the chain, public chains focused on payments and RWA like X Layer may become the engine for the next bull market.
> Cryptocurrency Proverbs: When most people are moaning in the leverage graveyard, a few holding spot are laughing at the clouds. The technology revolution supported by policies will eventually crush speculative bubbles—after all, in the financial market, compliance is the longest-lasting moat.