I recently came across an interesting perspective: a strategist at Scotiabank said that the dollar's decline might not be particularly large. At first glance, it doesn't seem groundbreaking, but upon closer reflection, it’s quite insightful.

What does this reflect? The possibility of the Federal Reserve cutting interest rates is real, but at the same time, the resilience of the US economy remains intact, and the demand for geopolitical risk hedging hasn't diminished. Plus, the so-called "de-dollarization" process is actually far more complex than many imagine. These factors stack up like an invisible dam, firmly supporting the dollar's position. As the global reserve currency and the ultimate safe-haven asset, the dollar's dominance is unlikely to be truly shaken in the foreseeable future.

What does this mean for asset allocation? Simply put, the trend of chasing a "weak dollar" narrative and blindly pouring into non-US assets (including various cryptocurrencies) as a one-way gamble will significantly decline. The market will become more rational and selective, starting to carefully evaluate the fundamentals of each asset.

For the crypto world, this is a test: if the dollar no longer provides readily available arbitrage opportunities, where will crypto assets' returns come from? The answer can only be inward—innovation within the ecosystem, breakthroughs in efficiency, and productivity upgrades. This is exactly what LSDFi protocols are doing. When the external dollar "tide" weakens, the "currents" generated within the crypto network itself become especially crucial.