The Enlightenment of “Self-Hosting” in the Trump 2.0 Era

Author: Samuel｜OKG Research

Two days after Trump was sworn in as the 60th President of the United States, he signed the "STRENGTHENING AMERICAN LEADERSHIP IN DIGITAL FINANCIAL TECHNOLOGY" executive order on January 23, 2025. This policy is seen as the United States’ strong support for crypto-asset innovation and economic freedom, marking a policy adjustment in the field of digital financial technology. In particular, the document clearly mentions the importance of maintaining the self-custody rights of digital assets, showing the United States' leadership determination in the fields of Web3 and the encryption economy.

At the same time, the memecoin launched by the Trump family on the eve of his taking office became a hot spot in the market. Among them, $TRUMP was the first to be issued on the Solana chain. It is not only an ordinary cryptocurrency issuance, but also an "experiment" around the conversion of personal influence into capital, defining a new on-chain gameplay. This token quickly set off a phenomenon-level craze by combining identity, community and market demand.

Interestingly, on-chain data shows that nearly half of the wallet addresses that purchased Trump family memecoin were newly opened wallets . In addition, this sale not only supports cryptocurrency trading pairs, but also allows users to purchase directly through bank cards, significantly lowering the threshold for participation. For many new users who have not previously dabbled in on-chain transactions, this provides the opportunity to enter the crypto space at a lower cost of understanding.

Pic Source: https://x.com/JasonYanowitz/status/1882238816507089220

But whether this boom has actually injected new liquidity into the crypto market is still debatable. Judging from market performance, almost all other on-chain projects have experienced varying degrees of decline in a short period of time. In contrast, Solana bucked the trend, pushing its price to an all-time high due to strong trading demand. At the same time, the number of active wallets on the chain reached its peak in nearly a month on January 19. This polarization phenomenon shows the fragility of market liquidity in the face of a single hot spot, and also exposes some deep-seated problems in the on-chain ecology.

Pic Source: https://solscan.io/analytics

This memecoin craze is not only an opportunity for the Web3 ecology, but also a "stress test", revealing the three core contradictions existing on the current chain: liquidity barriers, ecological fragmentation, and conflicts between user behavior and market structure. .

In this context, whether Web3 can move from a "bubble carnival" to "sustainable value creation" depends not only on the evolution of technology and protocols, but also on how to reconstruct the rules of user participation and the internal logic of the ecosystem. The answer to this revolution will determine the future direction of Web3.

On-chain liquidity: from boom to crisis

Trump’s currency issuance incident not only ignited the market, but also revealed the fragility of the ecological liquidity system on the chain. The large influx of funds in the short term has promoted a surge in wallet activity and transaction volume on the chain, but the ensuing "local overheating" phenomenon has exposed structural problems on the chain.

1. Liquidity concentration and market fragility

On-chain liquidity lacks a decentralization mechanism. When phenomenal opportunities such as $TRUMP appear, funds are quickly concentrated in popular assets, causing other projects to plummet due to capital outflows, and the market pricing mechanism is almost ineffective in the short term.

2. The “control effect” of CEX

Although DEXs have become an important tool for on-chain trading, centralized exchanges (CEXs) still control the main liquidity hubs. CEX’s operating strategy and liquidity allocation model have a profound impact on the on-chain ecology. For example, during the Trump currency issuance, user demand for Solana assets surged. However, due to the efficiency of asset transfer between CEX and the chain, some users faced certain challenges in fund allocation. Due to this reliance on centralized infrastructure, the current on-chain market still relies heavily on the liquidity of CEX.

3. Cross-ecological liquidity islands

The gap between EVM and non-EVM ecosystems such as Solana further amplifies the hotspot concentration effect. Although some cross-chain protocols are improving this problem, the current cross-chain experience is still fragmented and user operation costs are high.

future outlook

The chain needs richer asset carrying forms and diversified channels. Self-hosted wallets and their derivative functions will become an important part of the liquidity system, providing support for transactions, cross-chain and financial management applications, and upgrading on-chain wallets from security tools to the core hub of the Web3 ecosystem.

From “hosting fear” to “self-hosted revolution”

The crisis of trust in centralized hosting is reshaping user behavior. Events such as the FTX crash have triggered profound industry reflections on the CEX model. Self-hosted wallets are no longer just the choice for experienced players, but a “must-have tool” for more users. However, there are still challenges behind this trend. Users are afraid of the complexity of private key management, and the wallet operation interface is still cumbersome.

But at the same time, we can also see that more and more institutions are beginning to seek the increment in the middle ground generated by the combination of CEX + self-custody wallets. Aggregating exchange liquidity and integrating self-custody wallets to manage personal Web3 assets at the same time has become irresistible. Industry trends. A few days ago, OKX President Hong Fang said in an interview with Coindesk that the total assets held in the OKX platform’s self-hosted wallet are currently nearly 50 billion U.S. dollars, which has exceeded the total assets of its centralized exchange of 30.8 billion U.S. dollars. This change is not only a change in user behavior, but also an industry innovation driven by market demand.

During the $TRUMP craze, the advantages of on-chain wallets were particularly prominent . Data shows that many X platform users shared their experiences of quickly participating in this memecoin “PVP” war through OKX Web3 Wallet. Through one application, the exchange of exchange assets to the chain, as well as on-chain asset management, trading and exchange across ecosystems, not only make the operating experience smoother, but also significantly lower the technical threshold. Tools like OKX Web3 Wallet are becoming an important entry point for users’ on-chain activities.

In addition to the demand for asset autonomy, market hot spots are also driving changes in user behavior. The meme craze on Solana, which started in 2024, provides users with a simpler participation path and high-return opportunities. This "income-oriented" trend is attracting more "Risk Taker" investors to actively join the chain. Unlike traditional Web3 users who pay more attention to long-term value, these new users place more emphasis on the immediacy and rate of return of on-chain transactions. The meme craze has made on-chain projects no longer appear to have high barriers to entry, but has become within reach, further accelerating the popularity of the on-chain economy.

This transformation is not just a short-term phenomenon, but also a key driving force for the mainstreaming of the on-chain ecology . Users' shift from "custody fear" to "self-custody revolution" shows the awakening of asset sovereignty awareness, and also reflects that the market is looking for more efficient and convenient asset management models. Driven by CEX and on-chain self-hosting tools, the future of Web3 is building a more decentralized and dynamic economic system.

AI interaction: from tools to actors

Another core driver of mass on-chain adoption is the introduction of AI. Compared with the simple "auxiliary tool" role in the past, AI is now becoming an active participant in the on-chain ecosystem, redefining user experience and protocol functions. It not only helps users complete complex transaction operations, but is also likely to dominate decentralized governance in the future.

1. Lower the user threshold

AI is bringing unprecedented operational convenience to ordinary users through large language models and natural language interaction. For example, users only need to issue a simple instruction, and AI can automatically complete complex cross-chain asset transfers or LP parameter settings. This simplification not only lowers the technical threshold, but also opens the door to the on-chain world for more users.

2. Dynamic optimization and autonomy

The capabilities of AI are not limited to assistance, it also demonstrates a high degree of autonomy. For example, in liquidity pool management, AI can dynamically adjust capital deployment according to market fluctuations to maximize returns. In addition, AI’s real-time revenue prediction and risk warning functions also allow users to respond to market changes more calmly.

3. Protocol layer updates

The introduction of AI not only changes the way users operate, but also injects more flexibility into the protocol itself. For example, AI can dynamically adjust the parameters of the DeFi protocol through in-depth analysis of on-chain data, thereby improving the adaptability and stability of the protocol. In the future, we may see decentralized protocols driven entirely by AI, which will become the new power engine of the on-chain economy.

From fragmentation to integration

Although current on-chain adoption still faces problems such as liquidity fragmentation and insufficient self-hosted education, the trend is irreversible. The continuous maturation of cross-chain technology, the increasing popularity of AI tools, and users' increasing emphasis on asset sovereignty are all driving the on-chain economy towards full integration.

Education & Tools: Making self-hosting accessible to everyone

In the future, users will need not only tools, but also knowledge. Allowing every user to easily manage on-chain assets through a combination of education and tooling is the key to achieving mass adoption.

Cross-chain technology: breaking ecological barriers

Through the wallet's built-in aggregation chain functions, users will be able to seamlessly transfer assets between different ecosystems, and full-chain liquidity will become smoother.

AI: Unlocking on-chain potential

AI will no longer be just a tool, but a core component of the on-chain ecosystem. From user interaction to protocol design, AI will be deeply involved in every aspect of the on-chain economy.

In this era of network transformation, the chain is no longer just a concept, but the main battlefield where application types and scenarios are further extended. The Web3 era will not be the return of centralization, but the rise of on-chain applications .