2026 Market Structural Trend In-Depth Analysis: Why is the PayFi Sector Leading the Decline? Resilient DeFi Protocols Turn Into Safe Havens for Capital

As global market risk aversion sentiment spreads, the cryptocurrency market experienced a broad correction on February 6. However, amid cries of “all-out collapse,” the internal structure of the market is undergoing profound bifurcation.

According to Gate market data, the PayFi (Payment Finance) sector, centered on cross-border payments and traditional financial links, was severely hit, with an average decline of nearly 14% within 24 hours, making it the hardest hit area. Among them, Ripple (XRP) fell 9.26% to $1.30, and Litecoin (LTC) dropped more sharply by 12.71% to $51.03. Meanwhile, the decentralized finance (DeFi) sector, although overall down 7.41%, has already shown significant differentiation. MYX Finance (MYX) defied the trend, rising 6.69% to $6.55, becoming a bright spot amid the green.

Market Divergence: Structural Fission in the Crash

The cryptocurrency market on February 6 did not simply experience a broad decline but rather a fierce structural adjustment. Capital is rapidly flowing, reassessing the value and risks of different sectors.

Based on Gate market data, as of February 6, the total market capitalization of cryptocurrencies representing the overall trend has shrunk significantly. However, in finer segments, assets related to payment finance faced even more intense selling. XRP’s market cap evaporated about $8 billion in 24 hours, now standing at $78.94 billion. LTC’s market cap fell to $3.9 billion. This performance starkly contrasts with the overall market correction, indicating that investors are losing patience with certain narratives.

In sharp contrast, some DeFi protocols demonstrated remarkable resilience. MYX Finance (MYX) not only recorded gains during the crash day but also saw a 7-day increase of 15.60%, and a 30-day increase of 30.24%, very different from the weak performance of PayFi assets. Another noteworthy asset is Hyperliquid (HYPE), which, despite its 24-hour price being dragged down 5.76% to $32.93 by the market, maintained an 11.28% positive growth over 7 days, with a market cap of $7.75 billion.

PayFi Leading the Decline: Narrative Setback and Macro Transmission

Why did the PayFi sector become the “epicenter” of this decline? It is the result of multiple factors stacking up, far beyond simple market volatility.

The primary reason is the phased setback of the “cross-border payments” narrative. Take XRP as an example. Although it has long been dedicated to interbank cross-border settlement, under the backdrop of increased macroeconomic uncertainty and expectations of slowing global trade growth, the short-term utility value and growth prospects of such “financial bridge” assets are being re-priced by the market. According to Gate market data, XRP’s price has fallen 43.26% over the past 30 days, reflecting capital withdrawal from this story.

Secondly, there is the direct transmission of risks from traditional finance. The PayFi sector is most closely linked to fiat currencies and traditional payment systems. When global risk assets (such as US stocks and silver) plunge simultaneously, markets worry that economic recession may impact payment network activity and revenue expectations. This concern is directly reflected in related crypto assets; LTC’s price has halved over the past year, with a decline of 50.84%, showing cautious long-term capital attitude.

DeFi Counterattack: How Innovative Protocols Capture Real Demand?

In market panic, capital always flows toward areas with higher certainty and proven survival ability. The strong performance of MYX and HYPE reveals a change in the market’s valuation standards for DeFi.

The core competitiveness of MYX Finance lies in its innovative “risk-free” perpetual contract trading model. The protocol uses an order book model and a unique collateral sharing pool design, which hedges traders’ positions against each other, greatly reducing the protocol’s own liquidation risk. In an environment of intense volatility and frequent liquidations, this architecture’s robustness becomes its biggest selling point. Investors realize that a stable trading infrastructure during storms has more long-term value than chasing high-volatility narratives.

Hyperliquid (HYPE) represents the victory of high-performance native chains. As a Layer 1 blockchain built specifically for derivatives trading, HYPE attracts professional traders and institutional liquidity with its extremely low trading latency and fees. During market downturns, the demand for hedging, arbitrage trading, and risk management activities tends to increase, directly boosting HYPE’s underlying network usage and fee capture capacity. Its 24-hour trading volume of $71.94 million demonstrates an active ecosystem.

Data Insights: Long-term Market Expectations from Price Forecasts

Beyond short-term fluctuations, from Gate’s long-term price forecast data, we may glimpse the market’s deep confidence differences in assets across various sectors.

The outlook for PayFi assets is relatively conservative. XRP’s forecast shows a median price of about $2.52 by 2031, representing approximately 95% potential upside from the current $1.30. LTC’s median forecast price in 2031 is $101.77, with a potential return of about 99%.

In contrast, the market seems to assign higher expectations to growth in innovative DeFi protocols. Despite a sizable base, MYX Finance (MYX) is forecasted to reach a median price of $10.44 by 2031, with a potential return of 61%. Hyperliquid (HYPE) is expected to reach a median price of $53.63, with a potential return of 64%. These figures indicate that investors are willing to pay a premium for DeFi protocols with unique technical architectures, clear business models, and strong fee capture capabilities.

Investment Insights: Identifying True Alpha Amid Volatility

This market divergence offers a vivid risk education: in the crypto world, sector selection may be more important than timing.

For investors, the primary lesson is to see through narratives to the essence. A grand, long-term story (like reshaping global payments) may falter in macroeconomic headwinds, while a product that addresses current trader pain points (such as high Gas fees or liquidation risks) can create immediate value and market rewards.

Second, stress testing is a gold standard for protocol quality. Market crashes are like stress tests; those that can maintain functionality, liquidity, and user activity under extreme conditions tend to have stronger fundamentals. MYX and HYPE exemplify this.

Finally, this indicates that the crypto market is maturing. Capital no longer blindly rotates sectors but begins to conduct refined fundamental analysis, distinguishing between “beta assets” dependent on external narratives and “alpha assets” capable of creating independent value.

When the leading PayFi asset XRP struggles to hold the $1.3 level on Gate’s chart, MYX’s trading interface is flashing buy orders at $6.55. Meanwhile, the old cross-border payment dream trembles in the macro cold wave. On the other side, the matching engine of order books and blockchain settlement code are quietly swallowing the territory of traditional finance. This crash did not kill DeFi; rather, like a forest fire, it burned away dead branches, making the truly adaptable species more clearly exposed.