Recently, this wave of market rally has indeed been driven by a few key factors. First, there is good news on the regulatory front—major compliance developments like bank license applications are clearly boosting market expectations, giving everyone more confidence in the future. Second, there has been significant action in stablecoins, with the adoption of USD1 accelerating, which directly links to the demand expectations for governance tokens, and the enthusiasm for capital following the trend has naturally increased.

Coupled with a surge in short-term trading, market sentiment has been amplified, trading volume has skyrocketed, buy orders have piled up, and the price has risen rapidly.

However, don’t be blinded by short-term prosperity. The real driving forces depend on whether the medium- and long-term fundamentals can hold up—such as how well USD1 is penetrating actual applications, whether compliance progress can continue, whether there are real use cases supporting the ecosystem, and whether capital flows can stabilize. These are the key factors that will determine future rises and falls.