The Current Status and Future of the Crypto Assets Industry

The Crypto Assets industry has undergone tremendous changes in the past year. Traditional financial enterprises, internet giants, and global politicians have flocked to this field, marking the industry's entry into a new phase. The digital currency launched by Trump may herald the end of Crypto Assets liquidity, but it also means that the integration of encryption and traditional finance has only just begun.

The Stagnation Period of the Crypto Industry

People's views on Crypto Assets have changed significantly. When the Bitcoin spot ETF was approved, many believed that Bitcoin would change the world. However, the prevailing opinion now is that Bitcoin is merely a mapped asset of the M2 money supply, unable to effectively combat inflation and difficult to serve as a catalyst for a Crypto Assets bull market.

Recently, there have been some farces in the market, such as a certain platform's self-rescue actions and the launch of a certain wallet, but none of these have brought about any substantial changes to the market. Currently, the Crypto Assets market seems to be in a stagnation period.

Ethereum was once hailed as "a civilization-level innovation," but its price has dropped from $4000 to around $1500. Now, Ethereum is trying to regain its L1 competitiveness by introducing new technologies such as Risc-V, but whether this can save its position remains uncertain.

Although Solana continues to bet on L1 after the FTX collapse, the development of its scaling layer may have a vampiric effect on itself. The market landscape has fundamentally changed, with stablecoins rather than Ethereum becoming dominant.

Decline in Market Information Quality

Invalid information is eroding the entire market. From KOLs to exchanges, it ultimately leads to trading behavior. This is not a criticism of a certain group, but an acknowledgment of market laws. When the influence of KOLs reaches its peak, it often marks the beginning of their decline.

The ineffective information in the current market can be mainly divided into two categories: first, low-quality calls aimed at the sinking market; second, the platform promotion by veteran investors.

Changes in the Investment Environment

The venture capital sector is also undergoing significant changes. VCs in Silicon Valley, the Middle East, and Europe are positioning themselves for the next stage, while Chinese VCs are facing dual pressures from LP and ROI, with many having turned to a market maker model.

True innovation may emerge in new places, such as the Shenzhen Science and Technology Park. Chinese founders may need to seek funding support in Silicon Valley and Wall Street, but projects that can truly meet the market's next stage of demand may not be recognized by the existing investment framework.

New Asset Issuance Method

In every crisis in the crypto industry, new asset issuance methods emerge. Currently, the interest-bearing stablecoin (YBS) may become a new innovation point. The emergence of YBS is not because existing stablecoins cannot meet demand, but because it offers new possibilities.

Whether YBS can become a new mainstream asset issuance method will directly affect the future of Ethereum and the entire Crypto Assets industry. If successful, it may drive ETH to replace BTC as the new industry engine. If it fails, Crypto Assets may further lean towards traditional finance, and may even evolve into a "de-coin and store-chain" model.

Conclusion

Currently, exchanges, stablecoins, and public chains are the three main pillars of the Crypto Assets industry. Users tend to prefer using stablecoins rather than volatile Crypto Assets like Ethereum. The future development direction of the industry may lie in how to get users to accept new types of stablecoins, such as YBS, rather than just traditional stablecoins like USDT.

The Crypto Assets industry should not be limited to becoming Financial Technology 2.0, but should explore broader development space. It may be premature to excessively promote blockchain payments before new assets like YBS are widely recognized. The Crypto Assets industry needs to carve out new paths instead of narrowing its focus.