As someone who has been navigating the crypto market for many years, I have seen countless assets rise and fall. But the market trend in 2025 has truly exceeded all my expectations.

One particularly striking phenomenon is that silver, a traditional asset, has increased by 140% this year. You read that right—this asset, once mocked as "poor man's gold," has not only outperformed gold's 70% gain but has also become one of the most aggressive assets this year. Even more astonishing, the silver inventory in the London gold and silver market dropped from 31,023 tons in June 2022 to 22,126 tons in March 2025—shrinking by one-third over three years.

What is driving this behind the scenes? I believe there are three core factors at play.

**First, the Federal Reserve's shift in monetary policy**

The Fed claims to be "managing liquidity," but the actual "Reserve Management Purchase" (RMP) program is essentially a form of quantitative easing. Major economies worldwide are cutting interest rates, and the US dollar index has fallen below 100, meaning the opportunity cost of holding interest-free assets has dropped sharply. In other words, in this environment, physical assets like silver become much more attractive.

**Second, a surge in industrial demand**

In 2025, the global photovoltaic industry used 7,560 tons of silver, more than doubling from 2022. The proportion of silver used in photovoltaics jumped from 20% in 2022 to 55% of total global silver demand. The industrial demand driven by the energy transition has become a strong catalyst for silver prices.

**Third, supply-side constraints**

The continuous decline in inventories indicates a clear trend—silver is gradually being "absorbed." This is not just driven by investment demand but also by genuine industrial needs.

All of this points to one key message: as traditional assets begin to rotate upward, and physical and safe-haven assets regain attention, digital assets—another important store of value—are quietly undergoing a long-term transformation.

The story of silver tells us that the asset allocation in 2025 is experiencing a profound restructuring. Whether digital assets can ride this wave remains a critical question for all market participants to consider.