On October 11, 2025, the entire crypto market experienced a sharp decline. Bitcoin fell from a high of nearly $126,300 to approximately $107,000; Ethereum plummeted from approximately $4,800 to approximately $3,500. According to public data, this pullback triggered approximately $20 billion in liquidations in just 24 hours, becoming the largest centralized liquidation so far this year, potentially affecting over 1.6 million trading accounts. Following this pullback, Portal Labs observed that voices of reflection had begun to emerge across the network once again: ). Many market participants have realized that excessive obsession with price fluctuations and leverage speculation will only lead to FOMO (fear of missing out) and neglect Web3 projects that truly build value over the long term. Meanwhile, there has been some discussion about the bull and bear markets. For example, Alex Thorn, head of research at Galaxy Digital, noted in his October 19th Weekly Top Stories that while the short-term outlook remains fragile, the medium-term structural bull market remains. So, what can support the upcoming bull market? Alex Thorn believes three key areas of advancement are driving this growth: First, AI capital investment (AI Capex). Thorn noted that this round of AI infrastructure development is becoming a real-world "supercycle." Whether it's the data center expansion of cloud computing giants or the large-scale capacity investment of chip manufacturers, the demand for AI funding and computing power continues to rise. Blockchain and crypto assets offer opportunities to play a role in data ownership confirmation, computing power matching, and incentive mechanisms. Therefore, AI isn't just a passing trend, but rather an industry-wide driver of sustained external support for the crypto market. Second, stablecoins remain the central hub of on-chain capital flows. Thorn emphasized that the continued growth in the scale and penetration of stablecoins not only deepens on-chain liquidity but also expands the application scenarios for real-world payments and settlements. From cross-border settlement and DeFi liquidation to everyday payments for users in emerging markets, stablecoins are becoming the "underlying pipeline" that drives on-chain economic activity. Third, asset tokenization (RWA) is the process of putting real assets on blockchains, moving from proof-of-concept to concrete implementation. Whether it's bonds, funds, real estate, or carbon credits, tokenization not only provides traditional financial markets with new liquidity tools but also creates new transaction demands and value for blockchain itself. Thorn believes this bridges the gap between traditional and cryptocurrencies and will be the most promising growth area in the coming years. In Thorn's view, Bitcoin's "digital gold" status remains unshaken. Especially amid widespread doubts about the sustainability of fiscal and monetary policies, Bitcoin remains a crucial tool for hedging risks. Meanwhile, mainstream public chains like Ethereum (ETH) and Solana (SOL), closely tied to stablecoin usage and asset tokenization, are also considered promising growth opportunities. However, in the short term, the market may remain below previous highs. However, in the medium term, the market remains resilient. AI investment, stablecoin growth, and asset tokenization will provide structural support for the continued upward movement of the crypto market. Portal Labs believes that these three trends are not only driving the market's medium-term upward momentum but also key areas for Web3 entrepreneurs to focus on. For entrepreneurs, they represent the infrastructure and application scenarios that are likely to be implemented in the coming years, and they also highlight which sectors are more likely to attract capital and receive policy support. For Chinese Web3 entrepreneurs, how can they find their place within this landscape? First, from the perspective of data to computing power. For Chinese entrepreneurs, the combination of AI and blockchain is not an abstract "cross-border" venture, but can be applied to practical computing power scheduling, data ownership confirmation, and privacy protection. Current mainland policies encourage "data elements" and "computing power networks." Therefore, Web3 startup teams can focus on the "on-chain data circulation + computing power sharing" approach, using blockchain as a tool rather than a speculative narrative. At the same time, we should avoid simply packaging "AI + Token" as a financing tool; China's Web3 is more appropriately positioned as "blockchain-assisted AI infrastructure." Second, payment infrastructure, not token speculation. Globally, stablecoins have become a conduit for on-chain funding, but in mainland China, their issuance and circulation are both policy red lines. For Web3 entrepreneurs, the opportunity lies in "payment infrastructure surrounding stablecoins," not in developing stablecoins themselves. For example, cross-border clearing, on-chain payment channels, and compliant KYC services are all areas of exploration permitted under the regulatory framework of Hong Kong and Singapore. Furthermore, since it's impossible to directly develop stablecoins in China, Web3 entrepreneurs can consider entering the market through Hong Kong VASP and payment licenses to accommodate overseas capital and corporate needs. Third, entering the market through tool platforms. RWA is the most certain trend, but it's also the area with the strictest regulation. For Chinese Web3 entrepreneurs, directly launching a tokenized offering is extremely risky. A more reasonable approach is to provide compliance tools and services, such as asset registration, on-chain credentials, and compliant APIs, to help traditional asset managers achieve digitization. Hong Kong's stablecoin and RWA framework offer an institutional window for mainland Web3 entrepreneurs, but this presupposes a business architecture that isolates domestic and international markets. Therefore, Web3 entrepreneurs can position themselves as "infrastructure service providers" rather than "asset issuers," which is crucial to their long-term survival. The cycle of bull and bear markets is an inevitable natural law, but for Web3 entrepreneurs, the real determinant of their longevity lies in whether they focus their efforts between cycles on commercial implementation, infrastructure development, underlying technology refinement, and integration with regulatory frameworks. The market will always reward teams that remain focused on value creation even when the hype subsides. Moving forward, Chinese Web3 startups should identify niches within trends like AI, stablecoins, and RWA that can accrue industry value, solidify their development, and maintain a long-term perspective.
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