Opportunities and Challenges in the New Cycle of the Blockchain Industry: Interview with Solv Protocol Founder Ryan

Recently, the cryptocurrency market has experienced significant fluctuations, prompting many investors to reassess the prospects of this industry. In this context, Ryan, the founder of Solv Protocol, participated in an in-depth interview, sharing his views on the current market situation and his outlook for future developments.

Market Cycles and Investment Strategies

Ryan believes that although there have been some adjustments in the market, the cyclical benefits of the cryptocurrency industry have not completely disappeared. He pointed out: "Opportunities still exist around 2028. However, compared to the previous cycle, many arbitrage opportunities have significantly decreased this time."

For retail investors, Ryan suggests focusing on Bitcoin: "Anyone who is rational and makes the right choice to hold Bitcoin until now has actually made a profit." He emphasizes that compared to altcoins, Bitcoin is more likely to yield certain returns, although the magnitude may not be as high as in the past.

New Developments in the Bitcoin Ecosystem

Speaking about Solv's strategic shift from Ethereum to the Bitcoin ecosystem, Ryan explained: "Starting in 2024, we will basically focus on Bitcoin yield assets. The main reason is that the stablecoin and Ethereum markets have become red ocean markets, with very fierce competition."

He believes that the focus of the current cycle has shifted from algorithmic innovation to asset innovation. "Whoever can introduce incremental assets into this industry will achieve greater success in this cycle." Ryan stated that there is a real demand for interest rate hikes in the Bitcoin market, and combined with applications such as financial services, mortgage lending, and leverage, it makes it the best choice.

The Future of DeFi and Its Relationship with Traditional Finance

Regarding the question of whether DeFi will completely replace traditional finance, Ryan takes a cautious stance: "DeFi cannot completely replace traditional finance, but it improves certain inefficient aspects in a more efficient way, and the two are destined to complement each other."

He pointed out that DeFi is particularly suitable for providing services for non-financial assets, such as tickets or other assets that are not completely defined as financial. The traditional financial system has very strict regulations on securities-type assets, while DeFi can provide better services for these non-traditional financial assets.

Development and Security of Solv Protocol

Ryan introduced the rapid growth of the Solv Protocol, with its TVL approaching $1.5 billion. He explained the reasons behind this growth:

1. The huge bonus of the Bitcoin market
2. The real commercial value of the product and the product value
3. The low-cost operating model of DeFi

Regarding security, Ryan emphasized that Solv has implemented multiple measures to ensure the safety of funds, including introducing well-known custodians such as Coinbase and Fidelity, as well as providing a product line with varying risks and returns for users to choose from.

Industry Risks and Future Outlook

Ryan pointed out that in the current cycle, project risks are more evident on the asset side rather than on the algorithm side. He emphasized the importance of risk control capabilities and strategy selection on the asset side.

Looking to the future, Ryan believes that blockchain technology still has immense potential, especially in the area of financial innovation. He stated: "I am not in a hurry to venture into other fields, as there are still too many opportunities in financial innovation and blockchain technology waiting for us to explore and realize."

Overall, Ryan has a cautiously optimistic view of the future of the cryptocurrency and Blockchain industry, believing that although there are challenges, opportunities still exist. The key lies in how to find the right direction for development in the ever-changing market.