The $19 billion cryptocurrency liquidation event in October 2025 exposed a critical structural flaw: the market's vulnerability to stress under liquidity pressure. Analysis shows that the current on-chain market size remains small and is in the experimental stage, with a few users dominating most of the trading volume, making it difficult for true institutional adoption. The future path requires integrating institutional-level risk management and compliance directly into protocols through cryptography and meticulous regulation, thereby building resilient and trustworthy infrastructure.