Cycle Network Investment Research Report: The Future Value and Investment Opportunities of the Decentralized Multi-Chain Settlement Layer

1. Introduction

With the rapid development of blockchain technology, multi-chain ecology has gradually become mainstream. However, there are still many challenges in asset interoperability, transaction efficiency, and user experience between different chains. As a set of "multi-chain settlement layers" designed to eliminate multi-chain friction, Cycle Network uses self-developed Verifiable State Aggregation technology and Symbiotic security consensus to aggregate the state of multiple chains into a unified settlement plane, providing users with a seamless cross-chain experience. This article will conduct an in-depth analysis from the aspects of technical architecture, application scenarios, market potential, risks and challenges, etc., and provide a detailed investment research report for professional crypto investment research analysts.

2. Cycle Network technical architecture and core advantages

1. MultiChain Settlement Layer

Cycle Network is a chain abstraction infrastructure designed to address liquidity barriers in a multi-chain environment. Its core lies in aggregating the state of multiple chains into a unified settlement layer through Verifiable State Aggregation technology and Symbiotic security consensus, thereby realizing bridgeless mapping of cross-chain assets and zero-slippage transactions. This technology not only enhances trading efficiency but also reduces liquidation delays and spread risks.

2. Chain Abstraction

Cycle Network introduces the concept of chain abstraction, which enables the free flow of assets across chains through decentralized application-centric infrastructure (DACI), integrating technologies such as OSCI, verifiable aggregation sequencers, ZK hardware acceleration, and fully homomorphic cryptography. This architecture not only improves security but also reduces latency, providing technical support for global state proofs.

3. B-end and C-end two-wheel drive

Cycle Network adopts a two-wheel drive business model of B-side (enterprise-level) and C-side (user-side) two-wheel drive. On the B-side, the Cycle SDK provides aggregated liquidity support to help applications such as DEXs, cross-chain lending platforms, and on-chain games enable multi-chain transactions. On the C-side, Cycle has generated significant in-app purchase revenue and strategic shares by partnering with projects like Golden Goose. This two-wheel drive model provides a steady stream of cash flow for Cycle Network.

3. Application scenarios and value positioning

1. Stablecoin vs. RWA infrastructure

Cycle Network has a significant value proposition in the stablecoin and real-world asset (RWA) space. With the circulating market capitalization of stablecoins surpassing $250 billion and the RWA market expected to reach $16 trillion by 2030, Cycle Network's multi-chain settlement mechanism provides a secure, low-friction cross-chain flow solution for these assets. For example, issuers can mint USDC on Chain A and map the same amount of assets to Chain B without a bridge through the Cycle settlement layer to achieve zero-slippage transactions.

2. Cross-chain stablecoin clearing gateway

Cycle Network provides a multi-chain clearing gateway for stablecoins, allowing users to seamlessly switch assets between different chains. This mechanism not only enhances trading efficiency but also reduces liquidation delays and spread risks. For scenarios such as cross-border payments and supply chain settlements, Cycle Network can save up to 50% in handling fees and 1–2 business days in arrival time through automatic path optimization and batch netting.

3. RWA secondary market matching

Cycle Network also supports secondary market matching for RWAs. For example, Tokenized Treasury bonds can be issued on the OP Stack chain, institutional market makers can manage positions on the Berachain side and quote on the Arbitrum side, and the underlying netting is completed by Cycle aggregation, avoiding the risk of spreads caused by bridging delays.

4. Market potential and growth leverage

1. User base and penetration rate

According to DeFiLlama 2025 data, there are only less than 20 million active wallets on the entire network, and if the multi-chain threshold is completely smoothed, the number of users is expected to increase exponentially to 100 million to 150 million within five years, referring to the penetration curve of mobile payments from early testing to popularization. Cycle Network is expected to accelerate this process by unifying the settlement layer.

2. Stablecoin market potential

The current market capitalization of the stablecoin market has exceeded $250 billion, and if the annual scale of global cross-border payments reaches $150 trillion, even 1% of the migration to the chain will be $1.5 trillion in liquidizable turnover for the settlement network. Cycle Network, as a multi-chain settlement layer, is expected to become the infrastructure for this vast market.

3. RWA market outlook

The BCG report predicts that the size of on-chain real assets could reach $16 trillion by 2030. These assets require a secure, low-friction cross-chain liquidity layer, and Cycle Network meets this need. Through the multi-chain settlement mechanism, Cycle Network can provide efficient liquidity support for RWAs.

5. Risks and challenges

1. Technical risks

Despite its advanced chain abstraction technology, Cycle Network's complexity can lead to technical vulnerabilities. For example, the security issues of smart contracts have been verified multiple times on Ethereum, and Cycle Network needs to ensure the reliability of its technical architecture.

2. Regulatory risks

With the popularity of blockchain technology, regulators in various countries are becoming increasingly strict about crypto assets. Cycle Network, as a multi-chain settlement layer, may face regulatory scrutiny from different countries, which could impact its global expansion plans.

3. Competitive risk

Currently, there are several similar multi-chain settlement solutions on the market, such as zkLink, Chainlink CCIP, etc. These projects have their own advantages in technology, ecology, and business models, and Cycle Network needs to stand out from the fierce competition.

6. Investment advice

1. Long-term investment value

As an innovator in the multi-chain settlement layer, Cycle Network has long-term investment value. Its technical architecture and application scenarios are wide, especially in the fields of stablecoins and RWAs, and it is expected to become an important infrastructure in the coming years.

2. Short-term focus

In the short term, investors should pay attention to Cycle Network's technological progress, ecosystem construction, and cooperation with mainstream DApps. For example, the adoption rate of the Cycle SDK and the results of collaborations with projects like Golden Goose will directly impact its market performance.

3. Risk warning

Investors need to pay attention to technical risks, regulatory risks and competitive risks. It is recommended to fully evaluate these factors before investing and make decisions based on your own risk tolerance.

7. Conclusion

As a set of "multi-chain settlement layers" designed to eliminate multi-chain friction, Cycle Network provides a new solution for the blockchain world through technological innovation and ecological construction. Its value proposition in the stablecoin and RWA space, as well as its two-wheel drive business model on the B-side and C-side, make it valuable for long-term investment. However, investors also need to be wary of multiple risks such as technology, regulation and competition. Overall, Cycle Network is poised to become a key part of the Web3 mass era in the coming years