ViaBTC chief executive Yang Haipo says digital assets have reshaped global finance over the past decade, but warns that unresolved structural weaknesses and speculation cycles continue to define the market as it enters another downturn.
Market downturn underscores structural risks
The total digital asset market has shed nearly $2 trillion from its peak, falling to about $2.18 trillion in early June 2026. Bitcoin has hovered near $60,000, while Ethereum has approached $1,700, reflecting a broader risk-off environment.
Yang said these conditions mirror earlier crises, including the 2014 Mt. Gox collapse, the 2022 Luna failure, and a major exchange bankruptcy the same year. Each ঘটনা exposed systemic flaws that were not fully addressed, allowing risks to resurface and compound over time.
Open finance expands access but raises exposure
According to Yang, blockchain-based systems have transformed financial infrastructure by enabling open participation through algorithms rather than intermediaries. Tools such as automated market makers and stablecoins have reduced barriers to entry while improving efficiency in liquidity, settlement, and issuance.
Uniswap’s constant product model allowed anyone to provide liquidity without order books, while newer protocols like GMX integrated trading, clearing, and market-making into pooled systems. Stablecoins have also reduced cross-border transaction costs from tens of dollars to under one dollar, while cutting settlement times from days to minutes.
However, Yang noted that this openness exposes participants directly to risk, as institutional safeguards are largely absent.
Speculation continues to outweigh utility
Yang described the market as cyclical, with growth often driven by speculative momentum rather than sustained demand. Waves such as the 2017 initial coin offering boom, decentralized finance expansion in 2020, and NFT surge in 2021 rapidly increased participation but failed to maintain traction once prices declined.
This pattern is visible again in 2026, as capital shifts away from incentive-driven models toward platforms generating real revenue through trading and lending fees. Uniswap, for example, maintained activity during an April slowdown, even as trading volumes across other exchanges declined. By early June, however, its daily volume had dropped to around $170 million, far below earlier peaks.
Capital concentrates around core networks
Yang said blockchain value should be viewed across layers, with infrastructure, applications, and financial assets playing distinct roles. He identified Bitcoin as the primary asset sustaining both block space demand and cross-border liquidity value, while most other tokens depend on usage that often fades with incentives.
Current market behavior reflects this dynamic. Ethereum and Bitcoin continue to anchor activity despite price declines of roughly 32% and 11% respectively in 2026. Ethereum’s network has expanded to more than 189 million non-empty wallets, compared to Bitcoin’s 59 million, yet both assets have faced selling pressure.
Meanwhile, U.S. spot Bitcoin ETFs have recorded cumulative net outflows exceeding 40,000 BTC over ten consecutive trading days since May 20, signaling caution among traders despite a broader shift toward established assets.
Ethereum also maintains dominance in decentralized finance, holding about 52% of total value locked, or $43.36 billion as of May 2026, reinforcing its position as a core infrastructure layer.
Integration with traditional finance accelerates
Yang expects digital assets to become increasingly integrated into traditional financial systems. This shift is already underway, with regulated investment vehicles playing a larger role in market activity.
A 2026 survey of 351 institutional decision-makers found that nearly three-quarters plan to increase allocations to digital assets, with 66% gaining exposure through exchange-traded products. This trend is introducing greater influence from traditional market structures, including trading hours and risk management practices.
Stablecoins and ai reshape payment use cases
Stablecoins are emerging as foundational components of digital payments, supported by clearer regulation. The GENIUS Act, enacted in July 2025, established federal oversight for payment stablecoins, helping drive their market capitalization above $300 billion in 2026.
These assets enable cross-border transfers at fees typically below 1%, significantly cheaper than the World Bank’s estimated 6.49% average for traditional remittances.
Yang also pointed to growing demand for low-trust, machine-driven transactions as artificial intelligence systems increasingly require automated payment mechanisms. He said blockchain networks with strong finality and low intermediation are best positioned to support such use cases.
Consolidation likely as market matures
Looking ahead, Yang expects consolidation around a small number of dominant networks, particularly Bitcoin and Ethereum, due to their liquidity, developer ecosystems, and security.
He said decentralized finance is more likely to focus on specialized functions such as on-chain trading and cross-border settlement rather than replacing traditional banking entirely. At the same time, increased integration with regulated finance will bring stricter oversight and gatekeeping.
Yang concluded that long-term value in digital assets will depend on whether the technology can consistently reduce trust costs, improve transfer efficiency, and sustain real-world utility beyond speculative cycles.
To explore how stablecoins and regulation could reshape this landscape, read this in-depth analysis next.
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