The Event in Detail

Asian cryptocurrency markets have demonstrated significant outperformance, registering 47% cumulative returns over the past year. This contrasts with the 31% cumulative returns observed in the United States and 29% in the European Union over the same period. This growth is underpinned by a substantial increase in trading volumes across the Asia-Pacific (APAC) region, which saw a 69% year-over-year surge from $1.4 trillion in June 2024 to $2.36 trillion in June 2025.

A primary driver of this eastward shift in crypto market activity is the enhanced regulatory clarity in Hong Kong. The jurisdiction's 2025 Stablecoins Ordinance mandates that stablecoin issuers maintain 100% reserve backing with high-quality assets and adhere to strict capital requirements. Furthermore, the Securities and Futures Commission (SFC) has expanded its Virtual Asset Service Provider (VASP) licensing regime, establishing a commercially viable framework for crypto operations. This approach contrasts with the fragmented or inconsistent regulatory environments in the US and EU. As a result, 56% of Asia-based firms are actively utilizing stablecoins, with an additional 40% preparing for adoption.

Further evidence of this liquidity shift is the sustained positivity of the "Kimchi premium," which measures the premium of Bitcoin prices on Korean exchanges compared to global averages, consistently ranging between +1.5% and +8%. Concurrently, the Bitcoin Exchange Reserve Ratio, comparing U.S.-based to offshore exchanges, declined from 0.10 in late 2024 to -0.24 by September 2025, indicating a clear migration of both institutional and retail capital towards offshore platforms.

Market Implications

Despite a broader market downturn in September 2025, several altcoins exhibited significant resilience and gains. Mantle (MNT) increased by 12.1%, Avalanche (AVAX) by 10.7%, privacy coin Zcash (ZEC) by 11.62%, AIC by 117.10%, and TOSHI by 11.66%, while Aster (ASTR) rose 7%. This performance highlights diversified investor interest beyond major cryptocurrencies.

A notable development is AgriFORCE Growing Systems Ltd.'s rebranding to AVAX One, with plans to raise approximately $550 million. This capital raise includes a $300 million PIPE and an additional $250 million through equity-linked instruments. AVAX One aims to become the first NASDAQ-listed company with a dedicated strategy to maximize ownership of AVAX, the native token of the Avalanche network. This initiative provides public market investors with a professionally managed vehicle to invest directly in blockchain infrastructure.

Expert Commentary

Ryan Lee, chief analyst at Bitget, attributes the uptick in Asian markets to regulatory clarity in Hong Kong, fostering institutional and stablecoin adoption. Jeffrey Ding, chief analyst at HashKey Group, notes that while institutional flows are dominant in the US and EU, Asian markets remain more retail-driven, contributing to higher volatility and a stronger speculative element. However, Ding suggests that a rise in Asian speculative flows may not alter the long-term trajectory of institutional investment globally.

Jolie Kahn, CEO of AVAX One, stated that "The architecture of financial markets is changing, and programmable blockchains like Avalanche are the new foundation." Matt Zhang, Founder of Hivemind Capital and nominated Chairman of AVAX One, articulated the vision to "build the 'Berkshire Hathaway of the onchain financial economy'," emphasizing the need for Wall Street to gain smarter, more scalable exposure to institutional-grade blockchain infrastructure.

Broader Context

The strategy adopted by AVAX One, focusing on accumulating a significant treasury of a specific digital asset (AVAX) as a publicly traded entity, mirrors the approach taken by companies like MicroStrategy with Bitcoin. This indicates a growing trend among corporate entities to directly integrate digital assets into their treasury strategies, thereby offering conventional market investors indirect exposure to the digital asset ecosystem.

Hong Kong's strategic adoption of cryptocurrency, balancing innovation with stringent oversight, is positioning the city as a global hub for digital assets. The robust regulatory framework and academic validation of its economic impact have attracted substantial institutional capital, with surges to $2.4 billion in 2024 and projections of a $606 billion fintech market by 2032, driven by tokenized assets. This trajectory suggests a potential long-term shift in the global crypto power balance towards Eastern markets, underpinned by a clear framework that addresses systemic risks while fostering growth.

This trend highlights a maturing Web3 ecosystem where regulatory certainty can drive significant institutional and corporate adoption. The observed resilience of altcoins amidst market downturns, combined with structured investment vehicles like AVAX One, points to diversified investor sentiment and a move beyond purely speculative interest towards strategic asset accumulation and infrastructure development.