Analysis of the Transformation of the Encryption Asset Market and Related Stock Performance

In the first half of 2025, the global encryption asset market experienced a significant turning point, gradually shifting from being dominated by retail investors to being led by institutions. On May 22, the price of Bitcoin reached an annual high of $110,000, largely due to a substantial inflow of institutional funds. This trend has transformed encryption assets from mere speculative instruments into tools for asset allocation, bringing new investment opportunities for encryption concept stocks.

In the US stock market, the stock price of a well-known trading platform fluctuated at a high level, reaching a maximum of $271.95 on May 22. On June 5, a stablecoin issuer's stock price surged about 167% on its first day of trading, triggering multiple circuit breakers. In the Hong Kong market, influenced by the "Stablecoin Regulation," several related companies saw significant stock price increases. For example, a capital holding company received considerable attention due to its early investment in a stablecoin issuer, with a more than 14% increase during intraday trading on June 9. Other digital payment and fintech companies also experienced substantial stock price increases. The A-share market was similarly positively affected, with active performance in the digital currency and encryption security sectors.

The rise in the prices of encryption assets from late May to early June has become a key factor driving the performance of the encryption concept stocks market. This marks a new stage of institutionalization, compliance, and value reconstruction in investment, with investors having higher expectations for the shift from "speculating on coins" to "speculating on stocks."

The Linkage Logic Between Cryptocurrencies and Cryptocurrency Concept Stocks

The reasons for the recent outstanding performance of encryption assets are mainly as follows:

First, the effect of institutional control and concentrated capital is evident. In May 2025, Bitcoin reached a new high for the year, and on-chain data showed a significant increase in the proportion of coins held by institutions. Several asset management giants have absorbed a large amount of capital through spot ETFs, indicating that Bitcoin has officially been included in global asset allocation models.

Secondly, the Ethereum ecosystem is developing in sync, with Layer 2 transactions accounting for over 60%, and the total locked value surpassing 108 billion USD. The Cancun upgrade has improved network processing efficiency, driving up ETH prices, and the frequency of smart contract calls has increased by 55% year-on-year.

In addition, the compliance process for stablecoins is accelerating, reshaping the underlying financial infrastructure. Relevant legislation in the United States establishes a "100% USD/Treasury reserve" requirement, driving the market value of mainstream stablecoins to exceed 280 billion USD. The Hong Kong "Stablecoin Regulation" has been implemented, directly serving cross-border payment and supply chain finance scenarios.

These factors have collectively driven up the prices of encryption assets and have also boosted the stock performance of related listed companies.

Encryption Concept Stocks: The Industrial Coupling and Valuation Restructuring Behind Stock Price Correlation

With the booming market for encryption assets, encryption concept stocks are also experiencing an investment frenzy.

In the US stock market, several cryptocurrency exchange platforms and mining companies have seen their stock prices remain high or steadily rise. A stablecoin issuer's stock price soared 167% on its first day of trading, becoming the market focus.

The Hong Kong stock market has been positively impacted by the upcoming implementation of the Hong Kong "Stablecoin Regulation," with strong performance in stablecoins and encryption-related stocks. Several companies have seen significant increases in their stock prices, with gains ranging from 5% to 80%.

The A-share market's digital currency and encryption security sector is active. Many companies' stock prices have risen to varying degrees, showing overall stability.

The Three Major Drivers of Value Reconstruction: Compliance, Institutionalization, and Technological Innovation

Recently, the value of encryption assets and related stocks has surged significantly, reflecting a profound reconstruction of the industry's value system, primarily driven by three main forces.

First, compliance has become the cornerstone of industry development. Major economies around the world are accelerating the improvement of regulatory frameworks to enhance market transparency and security, resulting in a "license premium."

Secondly, institutional funds continue to flow in, reshaping the market pricing mechanism. Institutional investors are incorporating encryption assets into long-term asset allocation, driving the market from retail speculation to rational investment.

Finally, technological innovation injects new momentum into industry development. Traditional financial institutions actively explore the application of blockchain technology to enhance asset digitization and transaction efficiency.

The interaction of these three major driving forces propels encryption assets and related stocks into a more mature, compliant, and technology-driven new era.

Regulatory Differentiation, Scene Implementation, and Investment Paradigm Leap

In 2026 and beyond, the global encryption asset market regulatory environment will become more differentiated and refined. Regulatory differences in different regions will drive up the value of compliance licenses, giving rise to cross-regional compliance arbitrage opportunities. The concentration of the industry will further increase, and compliance qualifications will become the core threshold for corporate development.

In terms of asset digitization and practical application, Real World Assets (RWA) are becoming an important bridge connecting traditional finance with digital finance. In the coming years, the global RWA market size is expected to exceed hundreds of billions of dollars, with real estate, carbon credits, and supply chain finance being the main application scenarios.

At the corporate level, the cases of digital asset allocation are increasing. Some companies have launched large-scale Bitcoin purchase plans, treating digital assets as important value reserves and exploring their potential in the digital economy.

Overall, improved regulation, the implementation of digital asset scenarios, and upgraded investment concepts are driving the encryption asset and related stock markets into a more mature, compliant, and value-driven new phase. Investors should pay attention to "encryption value creators" with compliance advantages, technological innovation, and scenario application capabilities to seize long-term investment opportunities.

Conclusion: Value Anchoring under the New Paradigm

Institutionalization of encryption assets represents the systemic acceptance of decentralized trust mechanisms by the global financial system. Investment logic evolves from a zero-sum game to value symbiosis. Compliance constitutes the survival bottom line for enterprises, technology determines the growth slope, and scenario implementation shapes the valuation ceiling.

The core opportunities in the future will revolve around compliance barriers, technological depth, and the ability to embed into various scenarios, uncovering "encryption value creators" that transcend cycles. This new paradigm indicates that a new era of deep integration between digital finance and traditional finance has already begun.