TRON Industry Weekly Report: BTC Breaks Through Resistance Level of 105,000, AI Empowered IP Economy Camp Network Gains Attention

I. Outlook

1. Macroeconomic Summary and Future Predictions

Last week, from an inflation perspective, the released data showed that the U.S. April unadjusted CPI year-on-year rate was 2.3%, lower than the market expectation of 2.4%, marking a new low since February 2021. This indicates that the inflation level in the U.S. continues to decline, showing a trend of further easing price pressures. Additionally, the U.S. April adjusted CPI month-on-month rate was 0.2%, although higher than last month's -0.1%, it was lower than the market expectation of 0.3%, indicating that the momentum for a short-term inflation rebound remains weak.

In the short term, the U.S. economy faces pressure for growth slowdown, but the long-term economic foundation remains robust. However, changes in the global economic environment, trade frictions, and domestic inflation control will be key factors affecting future economic trends.

2. Market Changes and Warnings in the Crypto Industry

After a phase of explosive growth in the market, Bitcoin and Ethereum have once again entered a high-level oscillation mode, with altcoins showing a mixed performance. Some tokens have demonstrated resilience against declines due to capital shifts, with the total market capitalization of the crypto market rising from $2.9 trillion to $3.24 trillion, suggesting that funds are flowing into non-Bitcoin assets, possibly signaling the early stages of an "altcoin season."

Investors should be wary of potential risks and pay attention to the breakthrough of Bitcoin's resistance level at $105,000, the movement of institutional funds (such as net inflows into Grayscale's GBTC and BlackRock's IBIT), and the impact of geopolitical and macroeconomic changes on the market. Maintain caution and closely monitor on-chain capital flows and changes in market sentiment to respond to potential short-term volatility.

3. Industry and Sector Hotspots

The Camp Network, a Layer-1 blockchain platform focused on modular IP and backed by giants like OKX and HTX, is designed to support AI agents trained on traceable, user-owned intellectual property (IP). MYX Finance, a decentralized exchange (DEX) platform that has received funding from HashKey and OKX, innovates the trading ecosystem through its P2Pool2P model and smart funding rate mechanism.

II. Market Hotspots and Potential Projects of the Week

1. Performance of Potential Sectors

1.1. What Makes Camp Network, a Layer-1 Blockchain Platform Focused on Modular IP Backed by Giants like OKX and HTX, Special?

Camp Network is a Layer-1 blockchain built specifically to support AI agents trained on traceable, user-owned intellectual property (IP).

The Autonomous IP Layer of Camp allows anyone to tokenize IP (such as music, images, videos, or even personal data) and register it on-chain for AI training, collaborative creation, and monetization.

Its architecture prioritizes gas-free IP registration and royalty distribution, providing a tailored isolated execution environment for agent workflows and automated authorizations. Developers can also deploy dedicated application chains (App Chains) with independent block space and computing resources, offering the flexibility and scalability needed for high-performance workloads.

++Architecture Overview++

Camp is a blockchain built for training and fine-tuning AI agents on decentralized, user-owned IP.

Through Origin, users can directly register any type of intellectual property—such as art, code, music, etc.—on-chain. Once registered, these IPs become discoverable and available for others to license, remix, or further develop.

mAItrix allows you to deploy AI agents that can be trained on user-owned IP. These agents can generate derivative IP and customized workflows, continuously learning through on-chain user interactions, achieving transparent ownership and compliant use, while unlocking new potentials for applications and creator economies.

Royalty distribution is a native function on-chain. Any interaction with registered IP—including reuse, remixing, or AI generation—automatically allocates earnings to the original contributors. This mechanism establishes a built-in incentive layer for AI-native applications, encouraging collaboration and co-creation.

++Technical Architecture: BaseCAMP and SideCAMPs++ Camp Network introduces a scalable architecture aimed at addressing the high latency issues faced by dApps on traditional Layer 1 blockchains. The system is built around two core components:

• BaseCAMP: The Layer 1 blockchain serving as the main chain, optimized for IP management.
• SideCAMPs: Dedicated chains for specific applications, which ultimately settle with BaseCAMP, providing dedicated block space for each application.

Core Advantages

• Dedicated Block Space: Each application runs on its independent SideCAMP, avoiding network congestion and ensuring faster execution performance.
• Application-Level Sorting Mechanism: Each application can control its native transaction flow and block generation, optimizing performance and capturing relevant revenue.
• Low-Latency Integration: SideCAMPs can use Camp nodes for sorting and collaborate with BaseCAMP's main sorting mechanism, achieving lower latency while staying aligned with the main chain.
• Enhanced Security: Interoperability between the Camp ecosystem and external networks is secured by a decentralized validator network (DVN). This network monitors all transactions, votes to validate their legitimacy, and reaches consensus through majority agreement. These validators are economically secured through native tokens.
• Developer-Friendly: SideCAMPs support multiple runtime environments and can submit state roots to BaseCAMP for settlement, providing integration opportunities for developers from different ecosystems. For example, runtimes like Solana Virtual Machine (SVM) or Cosmos WASM can settle on Camp through state roots, similar to an optimistic rollup model. This architecture provides developers with tools to build high-performance, interoperable dApps while ensuring speed, scalability, and security.

Provenance Protocol: Origin + mAItrix Camp's "Proof of Provenance Protocol" simplifies IP management and agent-driven workflows through two core frameworks:

• Origin Framework: Simplifies the registration and remixing of IP by abstracting complex on-chain processes, providing a smooth user experience.
• mAItrix Framework: Supports the deployment and management of AI agents that can be trained on IP and autonomously generate new IP.

++ABC Stack++

ABC Stack is a high-performance sovereign rollup framework built on top of Celestia's Data Availability (DA) layer. By decoupling bridging functions from the execution layer and relying on Celestia for data availability, ABC Stack overcomes the limitations of traditional rollup solutions, allowing anyone to download and verify the state of the Camp network through Data Availability Sampling.

As an independent settlement layer, ABC Stack avoids the overhead of built-in Ethereum bridging, allowing bridging functions to be modularly customized based on application needs while maintaining a focus on optimizing execution performance.

• Throughput: Up to approximately 1 Gigagas/s, placing it at the high end of performance, about 100 times faster than existing similar stacks.
• TPS (Transactions Per Second): Approximately 50,000
• Block Time: Recommended value is 250 milliseconds, with a theoretical lower limit of 100 milliseconds (continuously optimized to break below 100 milliseconds).
• EVM Compatibility: 100% EVM equivalent, supporting all the latest Ethereum opcodes.

Data Availability (DA) Options:

• Celestia: A decentralized, public data availability layer.
• ZK Compatible (ZK-Ready): Future-oriented, supporting zero-knowledge virtual machines (zkVM) and using EIP-4844 opcodes to verify KZG commitments. That is, providing a blob commitment with a zero-knowledge proof, and if the proof is invalid, the precompile will roll back.

++Origin Framework++

The Origin framework simplifies the process of registering and managing intellectual property (IP) on-chain, enabling AI agents to mint and monetize new IP. Users can customize the usage rules of their IP on-chain, and all participants must adhere to these rules when engaging in activities such as remixing, consumption, or signing.

Core features of the Origin framework include:

• Easy IP Management: Simplifies the on-chain process for users' own IP and AI agents, allowing users to easily remix existing IP.
• IP Monetization Mechanism: The interactions between IP and AI (whether virtual or real) build an economic system based on royalties and value flow, which Camp Network seamlessly supports.
• Token Economic Support: Supports refined IP ownership and revenue distribution mechanisms, promoting better collaboration and alignment among ecosystem participants.
• User-Friendly Access Experience: Abstracts complex on-chain processes, allowing non-technical users to easily participate.

++mAItrix Framework++

The mAItrix framework is an AI agent incubation platform within Camp Network, simplifying the development, training, and deployment processes of autonomous agents through a unified SDK. It enables agents to seamlessly generate and manage intellectual property (IP) on-chain.

Core Components:

• Trusted Execution Environment (TEE): Provides a secure hosting environment for large language models (LLMs), ensuring the safety of user data and encryption keys.
• On-Chain Training Logic: Embeds training logic within the framework, allowing agents to fine-tune based on existing IP while automatically handling royalty distribution.
• Autonomous Fine-Tuning and Retrieval-Augmented Generation (RAG): Agents can securely fine-tune IP within Camp's IP registration system to create more specialized agents or access existing IP to supplement their knowledge base.

++Review++

Camp Network is a decentralized blockchain network centered around modular architecture and developer experience, emphasizing flexible combinations and rapid deployment, suitable for building high-performance DeFi, gaming, and other scenarios. It supports compatibility with chains like Ethereum, has good cross-chain scalability, and emphasizes developer friendliness. However, the Camp Network ecosystem is still in its early stages, with a relatively limited scale of applications and community, and coordination between modules may introduce some performance complexity, while its security and stability still require time for validation. Overall, it is a promising but maturing modular chain solution.

1.2. A Brief Discussion on How MYX Finance, a DEX Platform Backed by HashKey and OKX, Innovates the Trading Ecosystem Through the P2Pool2P Model?

MYX.Finance is a decentralized derivatives exchange (DEX) that innovates the trading ecosystem through its P2Pool2P model and smart funding rate mechanism. The platform simplifies liquidity management through a single-token liquidity provider (LP) system, allowing traders to focus on trading strategies.

MYX leverages its self-developed Matching Pool Mechanism (MPM) trading engine to provide an unparalleled on-chain derivatives trading experience.

MYX offers perpetual contracts with USDC margin, supporting leverage of up to 50 times. As an innovative decentralized perpetual contract exchange, MYX achieves zero slippage matching through its unique MPM mechanism. This mechanism efficiently matches long and short positions, increasing capital utilization to a maximum of 125 times, unleashing unlimited potential and opportunities for traders.

++Architecture Overview++

++Order Types++

• Buy-to-Open Orders: Buying index tokens to open long positions;
  ➤ Increases long open interest.
• Sell-to-Close Orders: Selling index tokens to close existing long positions;
  ➤ Decreases long open interest.
• Sell-to-Open Orders: Selling index tokens to open short positions;
  ➤ Increases short open interest.
• Buy-to-Close Orders: Buying index tokens to close existing short positions;
  ➤ Decreases short open interest.

++How Do Liquidity Pools Facilitate Trading?++

In MYX's decentralized, non-order book architecture, there is a natural imbalance between long and short open positions. The liquidity pool acts as a counterparty, taking on the intermediary role and achieving long-short matching through delayed matching.

• Liquidity Pool Passively Takes on Positions: The liquidity pool acts as a counterparty, passively taking on positions to achieve instant trade matching. It reserves corresponding collateral assets to cover potential maximum losses.
• Example of Market Equilibrium:
  ➤ If Alice goes long with 1 BTC, the liquidity pool will passively take on an equivalent short position and reserve 1 BTC as collateral. Alice's theoretical maximum profit is earning 1 BTC when the BTC price tends toward infinity.
  ➤ If Alice shorts 1 BTC at $30,000, the liquidity pool will passively take on an equivalent long position and reserve $30,000 USDC as collateral to cover Alice's theoretical maximum profit if BTC drops to 0.
• Liquidity Pool Delayed Matching and Position Unwinding: When new trades help alleviate the long-short imbalance, the liquidity pool will actively unwind existing positions and release funds, allowing traders to directly become counterparties until one side is liquidated or actively closed.

++Funding Rates, Market Balance, and Capital Efficiency Improvement++

Funding fees are paid by the dominant side in the market to the counterparty, settled hourly. If managed properly, market makers can earn funding fee income by providing liquidity while hedging against the risk exposure from underlying asset price fluctuations.

Statistics show that funding fees and market-making behavior typically balance the ratio of long and short open positions, approaching 50:50.

In a balanced market state, the risk exposure borne by the liquidity pool (LP) is minimal. Due to the overall low capital utilization, LPs can handle larger trading volumes.

While the Matching Pool Mechanism maintains high capital utilization during market imbalances, its capital efficiency performs even better in balanced market environments, far exceeding traditional P2Pool mechanisms.

++LP's Risk Hedging Mechanism++

When the market experiences severe imbalances, even high funding rates may not improve the situation, and long and short positions may tilt significantly. At this point, to avoid the risks brought by asset volatility, liquidity providers need to hedge their passive positions, especially when market tendencies become more pronounced.

Of course, LPs can also choose not to hedge their positions, potentially earning profits when traders incur losses or bearing losses when traders profit.

Since MYX's LP pool adopts a dual-token design, LP's exposure is easily identifiable and manageable, allowing them to choose to hedge their passive positions in other markets (such as centralized exchanges).

++Automatic Deleveraging Mechanism (ADL)++

As trading volumes continue to grow, if the market is in a balanced state, open interest may expand to a scale far exceeding the capital size of the liquidity pool. While this increases the returns from liquidity provision, it may also bring operational challenges in certain cases.

When the liquidity pool's capital utilization reaches its limit, all new opening orders will be rejected, but closing and liquidation orders remain unaffected.

Due to capital constraints, LPs can no longer take on additional positions. If they continue to close or liquidate one side, it may further exacerbate market imbalances, making it unfeasible.

To address this issue, MYX has introduced the Automatic Deleveraging (ADL) mechanism. This mechanism will forcibly close the most profitable side's position, synchronizing the long and short open interest decline, and completing the deleveraging operation without introducing additional capital.

++Summary++

MYX Finance is an innovative decentralized derivatives trading platform that achieves zero slippage trading, extremely high capital efficiency (up to 125x), and simplifies liquidity management through a single-token LP system with its unique P2Pool2P model and Matching Pool Mechanism (MPM). The platform supports perpetual contracts with USDC margin at up to 50x leverage, while also designing smart funding fee mechanisms and an ADL automatic deleveraging system to effectively maintain market balance and protect the liquidity pool's safety.

In terms of advantages, MYX offers excellent capital utilization efficiency, precise matching, low slippage experience, passive market-making opportunities, and a controllable LP structure for risk hedging, making it suitable for high-frequency strategies and professional traders.

On the downside, due to its non-order book model, in extreme market imbalances or high volatility situations, the capital utilization ceiling may limit new openings, requiring the ADL liquidation mechanism to respond. Additionally, LPs face exposure management pressure, and if hedging strategies are inappropriate, they may incur losses.

2. Detailed Analysis of Projects to Watch This Week

2.1. How Miden, a Platform Claimed to Solve the Blockchain "Impossible Triangle" Theory and Backed by A16z with $25 Million in Funding, Cleverly Utilizes Clients to Achieve This Feat

++Introduction++

Miden is a rollup solution aimed at high throughput and privacy applications.

With Polygon Miden, developers can build innovative high-throughput privacy applications covering payments, decentralized finance (DeFi), digital assets, and gaming. Applications and users are secured by Ethereum and AggLayer.

++Technical Architecture Analysis++

The architecture of Polygon Miden significantly differs from traditional blockchain designs to support privacy protection and parallel transaction execution. In traditional blockchains, to achieve verifiability, states and transactions must remain transparent, which is the fundamental premise for block generation and execution.

However, user-generated zero-knowledge proofs allow state transitions (e.g., transactions) to achieve verifiability without the need for public transparency.

1. ++Accounts++

Accounts are the core entities in this protocol. They can hold assets, store data, and execute custom code. Each account is essentially a specialized smart contract providing a programmable interface for interacting with its state and assets.

In Miden's hybrid UTXO-account model, accounts support the creation of powerful smart contracts using a Turing-complete language.

An account consists of several core components, as shown below:

The main components of an account include:

• ID: Each account has a unique identifier used to distinguish and reference it on-chain.
• Code: Stores the execution logic of the account, supporting custom smart contracts written in a Turing-complete language.
• Storage: Used to save any data related to the account's state, such as variables, mappings, or configurations.
• Vault: Manages the assets held by the account, including native assets and tokens, supporting fine-grained access control.
• Nonce: Prevents replay attacks and is used to track the order or count of operations executed by the account.

1. ++Notes++

Notes are the medium for communication between accounts. Each Note holds a certain amount of assets and defines the conditions under which these assets can be consumed. In Miden's hybrid UTXO and account model, Notes are equivalent to UTXOs (Unspent Transaction Outputs). They support parallel execution of transactions and enhance privacy and system throughput through a locally asynchronous Note generation and consumption mechanism.

A Note consists of several core parts, as shown below:

Key components of a Note include:

• Assets: The assets held by the Note, which can be native tokens, digital assets, or other programmable values.
• Script: Defines the conditions for asset usage. Assets in the Note can only be consumed when the script rules are met.
• Inputs: Additional data provided by the creator for validation or logical judgment during script execution.
• Serial Number: The unique identifier of the Note, recorded as used once consumed to prevent double-spending.
• Metadata: Contains additional information related to the Note, such as creation time, purpose description, or specific strategy tags.

1. ++Assets++

Assets are units of value that can be transferred between accounts through Notes.

Assets are units of value that can be transferred between accounts through Notes. The issuance of assets is completed by Faucets (issuing accounts), and their types and issuance rules are defined at the time of account creation.

Faucets can issue fungible or non-fungible assets. The contract code of the Faucet defines the minting conditions of the assets, i.e., how, when, and by whom these assets can be minted. Once minted, these assets can be transferred to other accounts through Notes.

Asset Types

1. Fungible Assets

• The encoding of this type of asset includes:
• Asset amount
• The faucet_id that issued the asset
• The maximum quantity is 2⁶³ − 1, representing the maximum supply of a single asset.
• Typical examples include: ETH, DAI, USDT, USDC, and other stablecoins.

1. Non-Fungible Assets

• The encoding method hashes the asset data into 32 bytes and uses the faucet_id as the second field.
• Examples of non-fungible assets include NFTs like DevCon tickets.

Asset Storage Methods

Assets can be stored in accounts or Notes:

• Account Vault:
  Uses a sparse Merkle tree as the vault structure, capable of supporting an almost unlimited number of asset storage.
• Note Vault:
  Uses a simple list structure, allowing storage of up to 255 assets, suitable for lightweight transfers or trading scenarios.

Burning

In Miden, assets can be burned in various ways:

• Non-consumable Notes:
  Storing assets in a Note that cannot be consumed, making them permanently unavailable, equivalent to burning.
• Returning to the Original Faucet for Destruction:
  Assets can also be sent back to their original Faucet and destroyed through the dedicated destruction function of that Faucet.

1. ++Transactions++

In Miden, a transaction refers to the state transition process of a single account. A transaction takes one account and zero or more Notes as inputs and outputs the updated account state along with zero or more Notes. In Miden, a transaction is essentially a Miden VM program, and its execution generates a zero-knowledge proof (ZK proof) to prove the transaction's validity without disclosing transaction details.

The design goals of Miden's transaction model:

1. Parallel Transaction Execution:
   Each account can independently and concurrently update its state without needing to synchronize with other accounts, achieving high throughput.
2. Private Transaction Execution:
   The zero-knowledge proof of the transaction is generated on the client side, and the entire network only needs to verify this proof to confirm the transaction's legality without exposing transaction content, enhancing privacy.

Unlike most blockchains, where a transaction typically involves multiple accounts (e.g., sender and receiver), in Miden, a transaction only involves one account.

For example:
Suppose Alice (Account 1) wants to send 3 ETH to Bob (Account 2).
In Miden, this process would be divided into two transactions:

1. First Transaction: Alice creates a Note containing 3 ETH.
2. Second Transaction: Bob consumes that Note, thereby receiving the 3 ETH.

The advantage of this design is that it eliminates the need for a global lock on the blockchain state, allowing Miden to achieve true parallel transaction processing.

5. ++State++

State represents the current snapshot of all accounts, notes, nullifiers, and their statuses, serving as a "real-time snapshot" of the protocol.

Objectives of the State Model

Miden's concurrent state model achieves three main goals through local execution and proof:

• Privacy Protection: Using Notes and Nullifiers to achieve private transfers, with zero-knowledge proofs ensuring correctness.
• Parallel Processing: Transactions can be executed concurrently without a global lock, increasing system throughput.
• Reducing On-Chain Burden: Data can be stored locally or on the network, reducing on-chain data inflation.

State Components

Miden nodes maintain the following three types of state data:

1. Accounts
2. Notes
3. Nullifiers

5. ++Blockchain++

The Miden blockchain protocol defines how states are advanced through blocks. Each block contains account state changes, corresponding zero-knowledge proofs, and the notes created and consumed. Blocks represent the differences in global state between two time points, and applying all blocks to the genesis state can restore the current global state.

Design Goals

• Verified Transactions: All transactions included in a block have been locally proven and verified before packaging.
• Fast Synchronization: New nodes can quickly synchronize from the genesis state to the latest block state.

++Summary++

Miden achieves high scalability, privacy protection, and parallel processing capabilities by decentralizing transaction execution and state management to the client side. Its architecture, based on zero-knowledge proofs and a hybrid account model, effectively reduces on-chain load and enhances security and performance; however, this also brings higher local computing costs and a more complex transaction model, posing a certain learning curve for developers and users.

III. Industry Data Analysis

1. Overall Market Performance

1.1 Spot BTC & ETH ETF

As of November 1 (Eastern Time), the total net outflow of Ethereum spot ETFs was $10,925,600.

1.2. Spot BTC vs ETH Price Trends

BTC

Analysis

Last week, after BTC continued to rebound to around $106,000, it showed obvious signs of upward fatigue. Although the two pullbacks stabilized at the support levels of $100,000 and $101,500, the false breakout scenario in the early hours of this Monday (briefly touching a quarterly high of $107,000 but facing rapid selling pressure) indicates a clear signal of current upward momentum weakening.

This week, focus on three support levels: the first support near $103,000, the second support at $101,500, and the third support at the $100,000 round number. Given that the $101,500 area coincides with the lower boundary of the ascending channel, it has a dual support effect. Therefore, stabilizing and rebounding in this price area is highly likely; conversely, if it breaks below, it can directly look to the $100,000 round number. If it stabilizes, it also means there is still upward momentum.

However, users should be reminded that an effective drop below $100,000 would mean the end of this rebound. Until then, the bullish outlook should prevail.

ETH

Analysis

For ETH, the strong rebound above $2,700 in the first half of May has marked a complete reversal of the weak pattern that lasted for more than half a year. However, after failing to break through the $2,800 resistance last week, it has entered a downward channel on an hourly basis. This week, focus on the support level at $2,380; if it breaks, it may continue to run along the lower boundary of the channel until it further explores the second support near $2,300 or finds a good opportunity for stabilization and rebound.

Users are reminded that only a rapid drop below $2,300 and the lower boundary of the channel, along with sustained breaks below $2,270, would warrant a bearish outlook. Until then, both $2,270 and $2,320 have a chance to become starting points for stabilization and rebound.

2. Public Chain Data

2.1 BTC Layer 2 Summary

Analysis

Here is a summary of significant developments in the Bitcoin Layer 2 space from May 12 to May 17, 2025.

Lightning Network

• First Quarter Transaction Volume Exceeds 100 Million: The Lightning Network's transaction volume surpassed 100 million in the first quarter of 2025, a 28% increase from the fourth quarter of 2024. This indicates a rapid rise in the adoption of global retail payments and low-fee transactions.
• Steak 'n Shake Accepts BTC Payments: On May 17, the American fast-food chain Steak 'n Shake announced nationwide acceptance of Bitcoin payments through ZeusLN. This is one of the largest merchant implementations to date.
• Defense of Positive VC Investment Impact: At the Token 2049 summit from May 13-16, developers in the Bitcoin ecosystem defended venture capital support, arguing that VC funding has accelerated the innovation and development of Layer 2 protocols and node services, especially in the Lightning Network.

Stacks (STX) - Smart Contract Platform on Bitcoin

• Nakamoto Upgrade Officially Launched: The Stacks network completed the "Nakamoto Upgrade" in mid-May, significantly enhancing the throughput and latency performance of Clarity smart contracts, making it one of the core platforms for Bitcoin DeFi.
• Surge in DeFi and NFT Activity: In the week following the upgrade, DeFi activity on Stacks increased by over 35%, while Ordinals-style NFT minting also saw a significant rise, driving ecosystem prosperity.

Rollups and Sidechains

• BOB (Build on Bitcoin) OP Stack Rollup: According to L2Beat data from May 15, the OP Stack Rollup built by BOB has cumulatively processed approximately 1.8 million user operations (UOPS), and its wBTC and tBTC-v2 cross-chain bridges are gradually becoming active, indicating early robust growth.
• Liquid Network (Blockstream): Although there were no updates this week, the roadmap released by Blockstream at the end of April shows that Liquid is developing a new ELIP upgrade, expected to launch mid-year, which could reduce confidential transaction (CT) fees by up to 90%.

New Asset Layer on Bitcoin: Runes vs. Ordinals

• Runes Resurgence: On May 17, a Medium article refocused attention on the Runes protocol launched by Casey Rodarmor—a highly efficient Bitcoin-native fungible token standard (proposed before Ordinals)—with community interest noticeably rising.
• Continued Growth of the Ordinals Ecosystem: During the same period, NFT inscription activities based on Ordinals grew by 22%, with developers exploring ways to integrate it with decentralized storage and Lightning Layer 2 settlements, expanding use cases.

Ecosystem Events and Institutional Dynamics

• Lightning Series Conferences: This week, LQWD Technologies showcased its new custody and liquidity management tools designed for institutions at Lightning Network conferences held in Vancouver and Berlin.
• Wallet and User Experience Optimization: On May 14, CCN reported that several wallets (such as Phoenix and Wallet of Satoshi) have supported features like "one-click channel opening" and dynamic fee predictions, significantly lowering the barriers for users to access the Lightning Network.

2.2. EVM & Non-EVM Layer 1 Summary

Analysis

++EVM-Compatible Layer 1 Blockchain Dynamics++

1. Ethereum: Scaling and Performance Optimization Proposals

• EIP-9698 Proposal: Ethereum researcher Dankrad Feist proposed increasing the gas limit by 100 times over four years, aiming for a throughput of approximately 2,000 TPS by 2029. This proposal is scheduled to be implemented on June 1.
• EIP-9580 Proposal: Introduces block-level access lists, allowing for parallel transaction processing, similar to Solana's mechanism, aimed at improving network performance under high load.
• RISC-V Architecture Proposal: Ethereum co-founder Vitalik Buterin proposed replacing the existing EVM with the open-source RISC-V architecture to enhance execution efficiency and simplify the execution layer structure.

1. Kadena: Launching Chainweb EVM

Kadena announced its Chainweb EVM, adding 20 EVM-compatible chains, achieving native parallel execution and near-zero gas fees, providing scalable and efficient PoW security.

3. Monad Partners with Orderly Network

Monad, an EVM-compatible Layer 1 blockchain, launched its testnet and partnered with Orderly Network to provide traders with a fast building platform, potentially attracting users through airdrops.

4. Injective Integrates Native High-Performance EVM Support

Injective announced the integration of native high-performance EVM support into its Layer 1 blockchain, enabling it to run Ethereum-compatible decentralized applications, with plans for testing on the development network first.

++Non-EVM Layer 1 Blockchain Dynamics++

1. Miden: Polygon's Independent ZK-STARK Layer 1

Miden is an independent ZK-STARK driven Layer 1 blockchain launched by Polygon Labs, focusing on privacy and high throughput, recently securing $25 million in seed funding.

2. Camp Network: Layer 1 Focused on AI and Intellectual Property

Camp Network is a Layer 1 blockchain focused on artificial intelligence and intellectual property, allowing users to register and tokenize their intellectual property on-chain and earn copyright revenue, recently completing a $30 million Series A funding round.

3. Evmos Launches evmOS

Evmos launched evmOS, a modular technology stack based on the Cosmos SDK, enabling EVM compatibility and full customizability. Ripple and Peersyst will leverage evmOS to further develop and enhance the EVM sidechain of the XRP Ledger.

4. Komodo Plans Transition from PoW to PoS

Komodo announced plans to transition its consensus mechanism from proof of work (PoW) to proof of stake (PoS) to improve energy efficiency and environmental sustainability.

2.3. EVM Layer 2 Summary

Analysis

Fusaka Upgrade Will Benefit L2 Networks

On May 12, Ethereum core developers announced the next protocol upgrade named Fusaka, introducing PeerDAS (Peer-to-Peer Data Availability Sampling), which will significantly increase the upper limit of data blobs, thereby reducing the packaging and verification costs of L2 rollups and alleviating the burden on verification nodes.

Rollup Networks Aim for 200 Milliseconds Effective Block Time

On May 15, multiple sources revealed that mainstream EVM Layer 2 rollup networks are advancing towards achieving 200 milliseconds effective block time (far below the current approximately 1-2 seconds), meaning transactions will be close to instant confirmation, greatly enhancing user experience and transaction speed.

Starknet TVL Hits All-Time High: $629 Million

On May 16, the ZK-Rollup network Starknet announced its TVL reached $629 million, setting a new all-time high and solidifying its leading position in the ZK-Rollup space.

zkSync Era Sees Surge in Activity Before Airdrop

As of May 13, zkSync Era's TVL reached $500 million, a week-on-week increase of about 5%. With the first $ZK airdrop approaching, on-chain activity has significantly increased, indicating enhanced user confidence.

Polygon Fully Migrating to zkEVM Architecture

According to recently released data, Polygon is gradually migrating its entire ecosystem to a zero-knowledge proof-based EVM (zkEVM) architecture as per its 2.0 roadmap. This will provide stronger scalability, decentralization features, and lower costs for application chains.

IV. Macroeconomic Data Review and Key Data Release Points for Next Week

In the consumer sector, last week's data showed that U.S. retail sales in April recorded a month-on-month increase of 0.1%, slightly above the market expectation of 0%, but significantly lower than the previous value of 1.5%. This data reflects a slowdown in consumer spending, indicating some signs of fatigue after the strong growth in March.

Key macroeconomic data points for this week (May 19 - May 23) include:

May 21: U.S. EIA crude oil inventory for the week ending May 16

May 22: U.S. initial jobless claims for the week ending May 17

V. Regulatory Policies

United States

SEC Crypto Assets Roundtable & Follow-up Actions

• May 12: The U.S. SEC's crypto assets and cybersecurity team held a "Tokenization Roundtable" to discuss how to regulate the issuance, custody, and trading of smart assets under U.S. securities law. SEC Chairman Paul Atkins emphasized that establishing a regulatory framework for "smart securities" is a priority.
• May 15: The SEC released an FAQ document titled "Gradually Moving Forward," clarifying how existing securities regulations apply to crypto asset activities to alleviate uncertainty for market participants.

Stablecoin Legislation: Progress on the GENIUS Act

• Mid-May: The U.S. Senate advanced the GENIUS Act, the first federal regulatory framework for U.S. dollar stablecoins. Key provisions include that issuers must hold safe, liquid reserve assets, comply with anti-money laundering/counter-terrorism financing (AML/CFT) regulations, and provide bankruptcy protection for holders.
• The bill has faced some criticism, as it may open the door for large tech companies to issue stablecoins, leading to proposed revisions to limit participation from non-financial giants.

Industry Feedback: SIFMA Comments

• May 12: The Securities Industry and Financial Markets Association (SIFMA) and its asset management division (SIFMA AMG) submitted comments to the SEC, supporting the collection of information but calling for clearer definitions of "non-security digital assets" and the establishment of unified custody rules to avoid regulatory fragmentation.

European Union / France

MiCA Implementation Details & AMF Supporting Guidelines

• Effective December 30, 2024: MiCA will fully take effect in the EU, establishing a unified regulatory framework for crypto asset service providers, stablecoin issuers, and market integrity.
• May 14: The French Financial Markets Authority (AMF) adopted six technical standards from the European Securities and Markets Authority (ESMA) under MiCA rules, providing clear guidance for local service providers and stablecoin issuers.

Calls for Strengthening the "Travel Rule"

• May 16: Following several recent kidnapping incidents involving executives of crypto companies in France, industry participants are urging regulators to reassess the implementation of the FATF's "Travel Rule" (i.e., conducting due diligence on the identity of transfer users) and to strengthen reporting mechanisms to prevent ransom funds from flowing through cryptocurrencies.

India

Financial Intelligence Agency Strengthens Monitoring of Geopolitical Risk Areas

• May 13: India's Financial Intelligence Unit (FIU) has requested domestic cryptocurrency exchanges to enhance monitoring of transactions involving accounts in high-risk border areas such as Jammu and Kashmir, due to concerns about funds flowing towards money laundering and terrorism financing.

Other Countries and Regions

Japan, China, the UK, etc.

• Japan: No major policy updates this week. The amendment to the Payment Services Act passed in March 2025 is being gradually implemented.
• China: Continues to enforce a comprehensive ban on cryptocurrency trading and mining since 2021, with no signs of policy easing.
• UK: The Financial Services and Markets Bill, which expands the regulatory powers of the Financial Conduct Authority (FCA), is still in the public consultation phase launched in April, with no new developments this week.