Tiger Research: Realism is the only answer to the downfall of encrypted currency

The present report is submitted by♪ Tiger Research ♪Written that the encrypted currency market continues to be in a long decline. In this environment, projects that can continue to exist are those that show a realistic and realistic vision。

Core elements

• Projects that address real and specific issues can remain resilient even in periods of market downturn。
• Hyperliquid, Canton and Kite address different problem areas, but they share a common feature: they provide practical and realistic solutions rather than abstract narratives。
• To assess this reality, the analysis should focus on three factors: the problems the project aims to address, the structure of the solution and the ability of the team to implement in practice。

1. Living conditions in Bear City: Does it work in practice

Bitcoin has fallen to $70,000. Only 7 of the 100 encrypted currencies with the highest market value remain above the 200-day moving average. By contrast, 53 of the NASDAQ 100 index is still traded above that threshold。

Market conditions cannot be resisted. Nevertheless, some encrypted assets can survive in the worst of circumstances。

Their resilience cannot simply be attributed to artificial marketing or accidental rebounds. A closer look at their trajectory reveals different interpretations。

These projects no longer rely solely on vague vision or technical complexity. Instead, they share a common feature: solutions that are rooted in real-life solutions to core market problems. Their methods usually correspond to three directions:

1. Have they addressed the current problems facing markets

2. Are they ready for practical applications in the near future

3. Are they building the infrastructure on which industries depend for a long time

Ultimately, the ability to solve real problems in practice remains the strongest fundamental。

2. Three directions of market choice

Projects capable of answering the above questions have survived successfully. Their approach is to: 1) clearly identify market problems; and 2) propose practical solutions that match a given time。

2.1. Hyperliquid: addressing instant trade friction

Centralized exchanges have traditionally been seen as responsible intermediaries. In practice, however, when problems arise, they are often not consistent with the interests of investors. Access to the central chemical exchange had emerged as an alternative, but poor user experience and performance had led many investors to avoid it。

In this context, Hyperliquid introduced the concept of a permanent contract to go to the centralization exchange (perp DEX). It uses HLP mechanisms to bring investors to the centre of the central exchange — — e.g., high leverage, rapid execution and stabilization of liquidity — — and the chain environment。

EARLY USAGE IS PARTLY DRIVEN BY DEMAND FOR $HYPE DROPS. HOWEVER, CONTINUED PARTICIPATION AFTER AIRDROP REFLECTS USER SATISFACTION WITH PLATFORM PERFORMANCE。

In the final analysis, the resilience of Hyperliquid stems from the resolution of a continuing reality: dissatisfaction with the centralization exchange。

Canadian Network: Preparing for the Institutional Financial Age

Canton proposes a solution for the near future. As interest in real world assets (RWA) continues to rise, institutions have begun to view the block chain as a financial infrastructure rather than a public network. In this context, institutions need not complete data transparency but selective privacy models that support regulatory compliance and confidentiality。

Canton Network was born. Through DAML, Canton can provide configurable data disclosure to each participant。

This allows agencies to share information only to the extent necessary while maintaining the confidentiality of transactions. Canton did not impose provider-driven designs, but rather built infrastructure that met institutional needs。

Another key factor is that from the outset Canton focused on real deployment to expand its ecosystem and was supported by early cooperation with financial institutions。

Most notably, its partnership with DTCC has created a gateway for the expansion of assets managed by the traditional financial system to an environment based on Canton. DTCC handles approximately $3.7 billion annually, highlighting the practicality of the Canton Network approach。

Ultimately, Canton Network offers a structural solution designed to meet the requirements of three institutions simultaneously: privacy protection, regulatory compliance and integration with existing financial systems。

2.3. Kite AI: Build the outstanding AI economy

Unlike the first two examples, the current practical application of Kite AI is limited. However, from the perspective of the future of AI agents operating as economic agents, its structural logic remains striking。

In the areas of Web2 and Web3 there is broad consensus on the agency-driven future. Very few questions have been raised about the situation of AI acting on behalf of users dealing with such tasks as booking hotels or buying daily supplies。

HOWEVER, SUCH A FUTURE WOULD NEED TO ALLOW AI AGENTS TO INDEPENDENTLY INITIATE AND EXECUTE THE INFRASTRUCTURE TO PAY. EXISTING TRADING SYSTEMS ARE DESIGNED AROUND TRANSFERS BETWEEN PEOPLE AND EFFICIENCY AMONG HUMAN PARTICIPANTS。

NEW MECHANISMS, INCLUDING AN IDENTIFICATION AND AUTOMATIC PAYMENT FRAMEWORK, ARE THEREFORE REQUIRED TO ALLOW AI AGENTS TO OPERATE AS AUTONOMOUS ECONOMIC ENTITIES。

Kite AI is building payment infrastructure for this environment. Its core components include &ldquo for identification; proxy passport ” and x 402 protocol functionality for automatic payment。

The vision presented by Kite AI cannot be deployed on a large scale at this time, simply because it has yet to be realized for the future it targets。

Nevertheless, the relevance of the project stems from the broader premise that when this widely anticipated future comes, the bottom-up technology it is developing will be necessary. This consistency with the widely accepted development trajectory gives the project structural credibility despite its current limited use。

Three key issues for assessing practical feasibility

Despite their different time lines, the three projects share a common characteristic: the viability of the real world。

The assessment of the same project is often divided. Some believe that it solves the real problem, while others believe that it is oversold. In order to bridge this interpretation gap, at least three core issues must be raised:

1. What does it solveAre the issues addressed by the project real and marketable

2. How does it workAre the proposed solutions structurally sound and implementable

3. Who's on itDoes the team have the capacity and resources to translate the vision into reality

As most projects promote optimistic future narratives, it takes time and effort to answer these questions correctly. Filtering misleading or incomplete information is not easy. Projects that are unable to respond confidently to these three questions may experience short-term price increases, but they are likely to disappear when the next downturn comes。

The current state of the encrypted currency market is clearly unfavourable. But that does not mean it's over. New experiments will continue, with the task of assessing what these efforts really represent。

The most important thing now is realism。