The Transformation of the Blockchain Ecosystem: A New Era of DeFi and RWA Integration

After experiencing the baptism of frenzy and rationality in the cryptocurrency market, the blockchain ecosystem is quietly undergoing a qualitative leap. In recent years, Decentralized Finance ( DeFi ), with its permissionless characteristics, has redefined the rules of global capital flow. Meanwhile, the exploration of Real World Assets ( RWA ) on the chain is dedicated to breaking down the barriers between traditional finance and the blockchain world, mapping trillions of dollars of physical assets onto the blockchain, and further enhancing financial efficiency.

In this transformation, the flow of funds often indicates future trends. Recently, a focal point of attention has been the frequent investments made by a well-known political and business family’s investment institution in the Blockchain field. In particular, their ongoing investments in a certain emerging public chain not only reflect a long-term optimism towards DeFi and RWA sectors but also demonstrate that traditional capital is accelerating its infiltration into the Blockchain world, injecting new momentum and confidence into the cryptocurrency market.

The Resonance of Capital, Technology, and Market Influence

On-chain data shows that this investment institution has made two large purchases of a certain emerging public chain's native tokens in the past two months, with a total amount exceeding $225,000. It is noteworthy that this institution is not just a purely financial investor; the political influence behind it has given this series of actions a deeper meaning in the market.

In the crypto world, the flow of funds often represents expectations for the future. When such inflow comes from capital closely linked to the political sphere, it is more easily interpreted as some form of implicit support. This institution's favor towards the public blockchain not only injects funds into it but also invisibly increases market attention, attracting the gaze of more traditional investors.

However, this is not a blind investment, but a strategic choice based on the technological advantages and ecological potential of the public chain in the DeFi and RWA fields. This emerging public chain is becoming a noteworthy emerging force in the DeFi and RWA sectors, thanks to its high throughput, low cost, and financial-grade infrastructure.

Technical Advantages: Efficient and Low-Cost, Providing an Ideal Foundation for Decentralized Finance and RWA

In the process of blockchainization of DeFi and RWA, the performance and cost of public chains are crucial. The core advantage of this emerging public chain is reflected in its efficient and low-cost trading environment, making it an ideal carrier for financial-grade applications:

• 5G processing capability per second: far surpasses most existing public chains, especially suitable for high-frequency trading scenarios in Decentralized Finance.
• Built-in trading matching engine: Optimizes order execution efficiency, significantly reduces slippage, and improves capital utilization.
• Extremely low transaction fees: far lower than mainstream public chains, allowing DeFi and RWA projects to operate at a lower cost.

These technical features not only enable the public chain to perform exceptionally in the DeFi field but also provide a solid foundation for the blockchainization of RWA assets.

Explosive Growth of the DeFi Ecosystem

The DeFi ecosystem of this public chain is experiencing explosive growth. According to a fourth-quarter report from a data analysis agency, on-chain transaction volume is expected to reach about $1 billion in the fourth quarter of 2024, with 65% coming from DeFi protocols. The total locked value (TVL) has increased by 3830.9% year-on-year, reaching $250 million. This indicates that even in a volatile market environment, real funds are still flowing significantly into this ecosystem.

In terms of specific protocol performance, several DeFi projects have shown strong momentum:

• A major decentralized exchange's average daily trading volume increased by 815.9% in the fourth quarter, surpassing $10.1 million.
• A native lending protocol occupies 88.7% of the daily active addresses in DeFi on the chain, with a TVL of over 210 million native tokens.
• A certain yield aggregator reached a TVL of $12.3 million at the end of the season, demonstrating strong capital attraction.

It is worth noting that although the price of the native token fell by 14.4% in the fourth quarter, the TVL measured in native tokens increased by 17.1%, indicating that more capital is continuously flowing into the blockchain's DeFi ecosystem. This positive cycle of funds and applications not only strengthens the financial foundation of the ecosystem but also holds the potential to further support the recovery of token value.

RWA Financialization: Linking Reality and Digital Assets

In addition to DeFi, the public chain is accelerating the blockchainization layout of RWA assets, building a connector between the real world and on-chain finance. In its RWA ecosystem, multiple projects are exploring application scenarios for on-chain financial assets:

• A certain project introduced a stablecoin pegged to the US dollar, providing on-chain settlement services for RWA assets, enhancing the stability and reliability of on-chain financial transactions.
• Another project provides more efficient trading and settlement capabilities for RWA assets through on-chain liquidity protocols, accelerating the mapping and circulation of traditional financial assets onto the Blockchain.

At the same time, mainstream trading platforms are also increasing their investment in the RWA track of this blockchain. A large-scale DeFi event initiated by the wallet of a well-known exchange has attracted the attention of many traditional financial institutions, indicating that the layout of this blockchain in the RWA field is gradually gaining favor from traditional capital.

Future Outlook: The Potential of On-Chain Financial Infrastructure

Under the trend of parallel development of DeFi and RWA, this emerging public chain is gradually establishing its position as on-chain financial infrastructure with its strong technical foundation and ecological growth. In the future, with the launch of performance upgrades, its transaction processing capacity will increase by 50 times, further enhancing its competitiveness in financial-grade applications.

A well-known family investment institution's continuous investment in this public chain not only recognizes its technological potential but may also indicate a deep integration of on-chain finance and traditional capital within this network. As the on-chain mapping of RWA assets continues to accelerate, this public chain is expected to become a core bridge between traditional finance and the DeFi world, playing an increasingly important role in the global financial landscape.