From the beginning of the year at 7.35 to now at 6.93, the RMB has appreciated faster than expected. Looking at it from another angle, if you held 1 million USDT at the start of the year, converting it to RMB now would mean 420,000 less. This is not alarmist; stablecoins have indeed become a shrinking tool in this wave of exchange rate fluctuations.

Why has the RMB suddenly become so strong? The US dollar index has fallen over 3% in two months, and non-US currencies have generally strengthened; coupled with the tidal effect of year-end corporate foreign exchange settlements, China's trade surplus has exceeded one trillion yuan, foreign exchange reserves are ample, and the central bank has enough chips to stabilize the exchange rate. But don’t get too excited— the central bank is repeatedly fine-tuning the midpoint rate, clearly preventing rapid appreciation from impacting exports. The range of 6.9 to 7.3 is likely to become the normal fluctuation range next year.

For crypto investors, short-term RMB appreciation might suppress the performance of risk assets, but don’t forget that RWA-type assets have risen 185% this year, and some Layer1 public chains are still rising against the trend. Structural opportunities still exist. The long-term approach is to keep an eye on policy trends; once the central bank uses counter-cyclical tools, you need to flexibly adjust your position and pace.

This exchange rate storm will continue, and it all depends on how you respond.