The Practical Approach to the Full Homomorphic Encryption Track

2026 is destined to be the year of explosive growth in privacy computing. FHE technology can perform computations directly on encrypted data, which is a major event for AI and on-chain privacy. Related targets (such as the ZAMA ecosystem or Fhenix) inherently carry event-driven attributes. Once the white paper is updated or the testnet goes live, market sentiment fluctuations will be quickly reflected in the 15-minute K-line, with a steep slope that can be startling.

How to operate in practice? Observe the key support level at $5.5. When the RSI drops into the oversold zone at 30 and signals of large on-chain position increases appear, it’s time to step in. Privacy sector tokens are particularly concentrated, and rebound potential is often significant. However, these targets tend to fall back after a quick rise; after achieving a 20% profit, you must immediately clear your position. No matter how strong the technical narrative, liquidity depletion in 2026 cannot be stopped. Taking profits promptly is the key.

Arbitrage Strategy in the Fraxtal Ecosystem

Frax completed a brand upgrade in 2026, transforming from FXS into the Gas fuel of the Fraxtal chain. I’m less concerned with long-term locked-in yields and more focused on the "leverage-like" volatility compensation that occurs when the FRAX stablecoin detaches from the dollar peg by more than 0.5%. The governance token oscillates according to an automatic repair mechanism driven by the algorithm, and this pattern is extremely consistent.

The entry point is when FRAX retraces to $0.99. When the market begins to worry about collateralization ratios, the token stabilizes with reduced volume at the structural level of $8.5, presenting an entry opportunity. After the repair is complete and a wave of revenge buying arrives, exit immediately once profits are reached. The stablecoin market will be highly competitive in 2026, so only extract profits during the most certain "mechanism repair period"—never assume long-term holding.