Compared with the bull market that broke out since the beginning of this year, the currency circle in May can be described as "crazy and calm". After the May Day holiday, Uniswap V3 and Dfinity came out one after another. With the crazy issuance and skyrocketing of the zoo category, the influx of However, after the policy was issued, the entire cryptocurrency market ushered in a wave of cooling, and everyone even questioned whether the current bull market will continue and whether the cryptocurrency is valuable, and some traditional institutions that bought it before sold off.

Whether it is DeFi or NFT, the development so far is not just as simple as a cryptocurrency. If you want to attract more traditional institutions to intervene, you need to be able to implement technology and scenario applications. The breakthrough of cryptocurrency can be implemented and avoid anti-money laundering. The essential.

According to data from CoinMarketCap, the number of encrypted currencies exceeded 10,000 this month, indicating that new funds are pouring in, and many new projects are also striving for users and developers, which is benign for the development of the entire cryptocurrency industry of.

From the perspective of the amount of funds, the total amount of funds as of April 30 was 2.15 trillion US dollars, and the total amount of funds as of now is 1.6 trillion US dollars. Under the sharp drop in the market, the funds have been reduced by more than 550 billion The U.S. dollar, about 34%, and I believe that zoo-type digital currencies also contribute some of the missing funds.

From the analysis of the actual situation, if we find out some of the more than 10,000 cryptocurrencies that can be combined with entities or have unique innovations, I believe that at least 50% of the digital currencies will be outside the list. According to the trend and past experience, the policies of countries around the world have not been released. In the next 6-7 months, there may be some announcements or national-level policies. Under the suppression of policies, some completely useless CX projects It will be gradually eliminated, and some cryptocurrencies that can really solve the current problems technically will be applied in more scenarios with the change of technology.

Let's review the policy information next:

On May 18, the three associations jointly issued an announcement to prevent the risk of virtual currency speculation.

At noon on May 21, CCTV.com published a comment, saying that Bitcoin is a speculative tool and be alert to the systemic risks of virtual currencies.

On the afternoon of May 21, Liu He, Vice Premier of the State Council, made it clear at the Finance Committee meeting: Crack down on Bitcoin mining and transactions, and resolutely prevent the transfer of individual risks to the social field.

On May 26, the National Development and Reform Commission and other four departments issued an announcement that they will deploy the national hub nodes of the national computing power network.

Before and after the release of several announcements, the price of the currency continued to plunge, and the amount of liquidation continued to rise. At the same time, some hackers attacked projects with loopholes and made a large amount of tokens. Moreover, the two major domestic exchanges were interviewed, further aggravating the situation. People's panic reflects the country's emphasis on the cryptocurrency and blockchain industry, and it is also suppressing the public's speculation in cryptocurrency.

The most concerned project and airdrop this month should be Gitcoin, an open source software funding platform. As a financing platform that has been used frequently by the public, the distribution of tokens will accelerate the decentralization of the platform. The traffic gathered by the nine rounds of funding has already Making the platform a global decentralized project, we can wait and see the next development.

For June, I think the big event that should be paid attention to is Polkadot’s Kusama auction and policy changes. Many Polkadot projects are waiting for the slot auction and the development after the auction is over, because the type of tokens issued by most projects is still ether Square, what value this public chain can achieve, presumably many participants are looking forward to it.

And the policy will continue, and the global attitude towards cryptocurrency will change with the International Financial Forum (IFF) held on May 29. At the moment when the issue of carbon neutrality is becoming more and more important, electricity, finance, Art, technology and other fields will be discussed together. This is an event that has never happened before, and it is also a key step in determining the future development of cryptocurrencies.

In terms of cryptocurrency investment, it is still recommended that everyone can improve their awareness, and do not buy some projects and leveraged contracts that are only suitable for short-term speculation, because the short-term timeline is beyond our estimation, and between centralization and decentralization At present, when the globalization game and policies are not perfect, some people will definitely wander in the gray area. Only by continuous learning can they have the ability to control wealth.

This month's digital currency investment recommendation report has been released, and you can get it by replying to [Report] on the official account.