What is there?

Current Trends in the Cryptocurrency Market

• Market Size: According to Crypto.com's latest market size report, the number of cryptocurrency holders globally saw a significant increase in the first half of this year. As of June, the number of holders rose by 6.4%, from 580 million at the end of 2023 to 617 million.

• DeFi Total Value Locked (TVL): A report by Steno Research shows that while the current TVL in the crypto ecosystem remains below its peak in 2021, there is potential for it to climb to all-time highs by the first half of 2025, driven by the impact of interest rates.

The Market for Contract and Spot Trading Is Not Fully Saturated

• Growth Rate of Contract Trading: According to Coingecko, the average daily trading volume of contract trading surpassed $1 trillion in 2024, with an annual growth rate of over 20%. However, global penetration, especially in emerging markets, remains below 20%, providing ample room for growth for platforms.

• Growth Rate of Spot Trading: The global average daily trading volume for spot trading is approximately $2 trillion. Compared to contract trading, growth is relatively steady, but growth rates in Asia and Latin America exceed 30%, highlighting the vast potential for market development in these regions.

Low-Cost Arbitrage Opportunities Exist in the Cryptocurrency Industry

Examples include on-chain strategy trading, arbitrage between on-chain and off-chain assets, and opportunities for arbitrage between centralized exchanges (CEXs).

• DEX Arbitrage Strategy: DEX arbitrage strategies for smaller capital participants yield annualized returns of over 50%, primarily due to lower on-chain liquidity and lower trading costs, which create significant arbitrage opportunities.

• Large Capital Strategy Returns: On-chain arbitrage returns for large capital amounts (e.g., over $1 million) typically range between 15%-20%. Although the returns are relatively lower, the strategies are more stable. With the support of AI automation, users can achieve consistent, stable returns.

• CEX Arbitrage: Arbitrage strategies between CEXs, such as price difference arbitrage and funding rate arbitrage, yield annualized returns of approximately 10%-30%.

• Funding Rate Arbitrage: Funding rates are a mechanism in the futures market designed to keep futures prices in line with spot prices. Funding rates are paid by either longs (those going long) or shorts (those going short), depending on market demand. If long demand significantly exceeds short demand, longs will pay a funding fee to shorts, and vice versa.

Platform Tokens as an Effective Way to Bind Users to Long-term Exchange Profits

A platform token is an effective way to bind long-term profits for both users and exchanges.

For exchanges, a stable platform token value not only helps drive the sustainable development of the platform ecosystem but also enhances user loyalty and engagement, leading to a more stable user base.

For users, a stable platform token value signifies the stability and security of the platform, allowing them to confidently participate in and benefit from the platform's ecosystem over the long term.