Galaxy Digital: Driving Three Major Web3 Tracks in the Crypto Market

On October 11, 2025, the entire crypto market experienced a significant pullback. Bitcoin slid from nearly $126,300 high to around $107,000; Ether fell from about $4,800 to around $3,500. According to publicly available data, this pullback triggered approximately $20 billion in Get Liquidated within just 24 hours, making it the largest concentrated liquidation this year, potentially affecting over 1.6 million trading accounts.

After this pullback, Portal Labs found that the entire network has “once again” started to see some reflective voices appearing one after another: ).

Many market participants realize that if they become overly addicted to price fluctuations and leveraged speculation, they will only be swept away by FOMO emotions, while neglecting the real and long-term value-building Web3 projects.

At the same time, there are also some discussions about “bulls and bears”. For example, Alex Thorn, the head of research at Galaxy Digital, pointed out in the Weekly Top Stories released on October 19 that while the short-term remains fragile, the mid-term structural bull market is still in place.

So, what can provide support for the upcoming bull market? Alex Thorn believes there are three major tracks that will promote this together:

First, AI capital expenditure (AI Capex)

Thorn pointed out that the current round of AI infrastructure construction is becoming a “super cycle” in the real world. Whether it's the data center expansion of cloud computing giants or the large-scale capacity investments by chip manufacturers, it all indicates that the funding and computing power demands for AI continue to rise. Blockchain and crypto assets have the opportunity to play a role in data rights confirmation, computing power matching, and incentive mechanisms. Therefore, AI is not just a passing trend; it is an industrial-level momentum that can bring sustained external support to the crypto market.

Second, stablecoins (Stablecoins)

Stablecoins are still the hub of on-chain capital flow. Thorn emphasized that the scale and penetration of stablecoin usage continue to grow, deepening on-chain liquidity and expanding the application scenarios for real payments and settlements. From cross-border settlements and DeFi clearing to the daily payments of users in emerging markets, stablecoins are becoming the “underlying pipeline” that drives the activity of the on-chain economy.

Third, asset tokenization (Tokenization / RWA)

Real assets are going on-chain, transitioning from proof of concept to substantial implementation. Whether it's bonds, funds, real estate, or carbon credits, tokenization not only provides traditional financial markets with new liquidity tools but also creates new trading demands and value carriers for blockchain itself. Thorn believes this is a bridge that spans traditional and crypto, and it will become the most certain incremental space in the coming years.

In Thorn's view, the “digital gold” property of Bitcoin has not wavered. Especially when there is widespread doubt about the sustainability of fiscal and monetary policies, Bitcoin remains an important tool for hedging risks. Meanwhile, mainstream public chains like Ethereum (ETH) and Solana (SOL), which are closely tied to the use of stablecoins and asset tokenization, are also considered to have good development potential. However, in the short term, the market may still hover below previous highs. But in the medium term, the market still possesses resilience. The three forces of AI investment, stablecoin growth, and asset tokenization will constitute the structural support for the continued upward movement of the crypto market.

Portal Labs believes that these three major trends are not only the driving force for the mid-term upward movement of the market but also the directions that Web3 entrepreneurs need to focus on. For entrepreneurs, they signify the infrastructure and application scenarios that are likely to be implemented in the coming years, as well as outlining the areas that are more likely to gain capital favor and policy support.

How can Chinese Web3 entrepreneurs find their place in it?

First, from data to computing power.

For Chinese entrepreneurs, the combination of AI and blockchain is not an abstract “cross-border” concept, but can be applied to practical aspects such as computing power scheduling, data rights confirmation, and privacy protection. Currently, the mainland's policy encourages “data elements” and “computing power networks,” so Web3 entrepreneurial teams can focus on the direction of “on-chain data circulation + computing power sharing” and treat blockchain as a tool rather than a speculative narrative.

At the same time, it is important to avoid simply packaging “AI + Token” as a means of financing; China's Web3 is more suitable to be positioned as “blockchain-assisted AI infrastructure.”

Second, payment infrastructure rather than token speculation.

Globally, stablecoins have become a conduit for on-chain funds, but in mainland China, issuance and circulation are under high policy pressure. For Web3 entrepreneurs, the opportunity lies in “the payment infrastructure around stablecoins”, rather than creating stablecoins themselves. For instance, cross-border clearing, on-chain payment channels, and compliant KYC services are all directions that are allowed to be explored under the regulations of Hong Kong and Singapore.

Moreover, it is impossible to create stablecoins directly in the country. Web3 entrepreneurs can consider entering through Hong Kong VASP and payment licenses to accommodate outbound funds and enterprise needs.

Third, start from the tool platform.

RWA is the most certain trend, but it is also the most regulated area. For Chinese Web3 entrepreneurs, directly engaging in “tokenized issuance” carries high risks. A more reasonable path is “to provide compliance tools and services”, such as asset registration, on-chain certificates, and compliance API interfaces, to help traditional asset management institutions achieve digitalization. The stablecoin and RWA framework in Hong Kong provides a institutionalized window for mainland Web3 entrepreneurs, but the prerequisite is to isolate domestic and foreign markets in the business architecture.

Therefore, Web3 entrepreneurs can position themselves as “infrastructure service providers” rather than “asset issuers,” which is key to long-term survival.

The alternation of bulls and bears is an inevitable natural law, but for Web3 entrepreneurs, what truly determines whether they can go far is whether they focus their energy on business implementation, infrastructure construction, underlying technology refinement, and aligning with regulatory frameworks during market fluctuations. The market will always reward those teams that remain focused on value creation when the noise subsides.

Next, China's Web3 entrepreneurship should find a way to solidify industrial value within the trends of AI, stablecoins, and RWA, making construction practical and adhering to long-termism.