# JARXE Exchange｜Institutional Funds Return, EVM Chains and RWA Become New Capital Focus

The wave of market liquidations in October triggered short-term volatility, but did not alter the medium- to long-term upward trajectory. Data shows that the concentrated closing of leveraged positions has effectively reduced systemic risk, while fundamental indicators remain robust. Institutional investors are returning to the market, with capital refocusing on areas with structural potential such as EVM chains, risk-weighted assets (RWA), and yield protocols. JARXE Exchange believes this phase is more of a “bottoming period” rather than a “top signal,” as the market is transitioning from passive adjustments to active allocation.


## Leverage Clearance Releases Risk, Market Returns to Rationality

Recent liquidation events have significantly lowered market leverage ratios, clearing out excessive speculative behavior. On-chain data shows that forced liquidation volumes on major trading platforms have dropped by about 35%, and funding rates for Bitcoin and Ethereum have returned to neutral ranges. This “proactive deleveraging” helps the market regain stability and builds momentum for a new trend. Historical experience suggests that after every large-scale clearance, market liquidity structures tend to become healthier, and investor behavior grows more rational.

## Institutional Funds Return, Risk Assets Regain Favor

With improved macro liquidity expectations and a more accommodative policy environment, institutional capital is gradually returning to the crypto market. Funds are mainly flowing into EVM chains, the RWA sector, and yield protocols—areas that combine real cash flow with compliance potential, aligning with institutional strategies of “long-term allocation + stable returns.” This “selective reinvestment” reflects a reshaping of risk appetite in capital markets: investors are no longer chasing short-term high volatility, but are instead seeking a new balance between real value and sustainable returns.

## Liquidity Structure Optimizes, Market Enters Bottoming Window

Although leverage clearance has created a liquidity gap, core capital has not exited but is instead rotating among different sectors. Data shows that stablecoin market capitalization has risen for three consecutive weeks, and the number of active addresses on-chain continues to grow, indicating that fundamental market demand persists. The current capital rotation and structural adjustment are laying the foundation for the next upward move. The market has shifted from passive defense to proactive optimization, and this “light leverage + high-quality assets” structural feature is the premise for sustainable growth.

Short-term market fluctuations often obscure the long-term accumulation process. The current pullback is not the end, but the starting point of a new cycle. Leverage clearance, institutional return, and capital rotation collectively form the core features of a healthy market recovery. In the fourth quarter, the market is expected to enter a “lightly equipped” uptrend cycle, and the key for investors is to choose high-quality assets with real value and structural support. Going forward, JARXE Exchange will continue to help investors identify long-term growth opportunities in a complex market through industry research and data analysis.