Crypto Assets market faces multiple crises, industry development is in trouble

Recently, during discussions with some leading developers, a common viewpoint caught my attention: the current primary market for Crypto Assets seems to be陷入 a difficult-to-break multiple crisis. This crisis is mainly reflected in the following aspects:

Narrative Failure, Speculative Culture Prevails

What is concerning is that the importance of the technological narrative is being marginalized, replaced by a purely speculative culture. In the past, even when technological development was slow, there was at least the support of long-termism, with venture capital funding early innovations, and project teams would methodically advance their plans for development, testing, and mainnet launch.

However, today's market has evolved into a purely community-driven operation and a game of capital speculation. Trading opportunities have become extremely short-term, even measured in minutes. When the market no longer focuses on long-term technological development, the risks of pure speculative trading are significantly amplified, making this market more dangerous for most participants.

Developer Attrition, Stagnation of Innovation

Data shows that the number of active Crypto Assets developers on Github has decreased by nearly 30% from last year's peak. Meanwhile, salaries for engineers at artificial intelligence and traditional technology companies are rapidly increasing.

Faced with fierce competition in the field of artificial intelligence, the narrative charm of the Crypto Assets industry "disrupting the internet" is weakening. More critically, after several development cycles, developers' enthusiasm for innovation is rapidly declining. Genuine technological breakthroughs from zero to one have become rare. Although new concepts such as Restaking, Intent, and AI Agent continue to emerge, there are very few projects that have truly landed applications and found product-market fit.

Decreased External Attraction, Industry Marginalization

The attraction of Crypto Assets to external funds and talent is clearly insufficient. Currently, the real secondary market hotspots are in the US stock AI sector, while the primary innovation market is concentrated in the Web2 AI field. The appeal of Crypto Assets to traditional venture capital and top talent is declining and may even be labeled as "speculation."

Apart from the characteristic of "issuing coins", the Crypto Assets industry seems to struggle to present other significant advantages. Although the launch of ETFs has brought institutional funds, this is more about recognition at the level of financial instruments and is not closely related to the actual application scenarios of Crypto Assets.

The key question is: in which scenarios are Crypto Assets indispensable? In the past, Crypto Assets provided a relatively free testing ground for financial innovation, but as traditional financial institutions began to enter this market through stablecoins, ETFs, and other means, besides the technical feature of "decentralization," what other irreplaceable value can Crypto Assets bring to users?

Despite the current situation being confusing, there is still reason to remain optimistic. The real breakthrough may be just around the corner. Maintaining a positive attitude during this challenging time may be our best option.