The current Crypto Assets market is facing multiple challenges

Recently, while traveling in Lijiang and Dali, I communicated with some leading developers in the industry, and everyone unanimously mentioned the multiple challenges currently facing the primary market of Crypto Assets:

Narrative failure, speculative culture prevalent

What is concerning is that the importance of technological narratives is being overlooked, replaced instead by a purely speculative culture. In the past, even when technological progress was slow, there was at least the support of long-termism, with venture capital covering the initial innovation costs, and project teams would gradually advance according to the roadmap. This transparency helps users assess the strength of projects.

However, the market has now evolved into a purely community-operated and capital game, with trading opportunities occurring frequently within minutes. When the market no longer focuses on long-term technological development, the risks of speculation are greatly amplified, making this market more dangerous for most participants.

Talent loss in development, innovation stagnation

According to relevant data, the number of active Crypto Assets developers on Github has decreased by nearly 30% compared to last year's peak. Meanwhile, the recruitment compensation for engineers in artificial intelligence and traditional tech companies is rising rapidly.

The logic behind this phenomenon is quite simple: as large tech companies vigorously recruit talent to build AI ecosystems, the narrative allure of the cryptocurrency industry’s "disrupting the internet" has struggled to retain developers.

What is even more concerning is that after several rounds of development cycles, developers in the Crypto Assets field seem to have fallen into a stage of sharply declining innovative enthusiasm. There are very few real technological breakthroughs from zero to one. Although some new concepts like Restaking, Intent, AI Agent, etc., have sparked heated discussions, where are the actual applications and market fit for these products? Many people seem to be reinventing the wheel, yet are unable to focus on how far these "wheels" can go.

External attraction weakens, industry marginalization

The attraction of Crypto Assets to external funds and talent is significantly lacking. Currently, the real secondary market hotspots are in the US stock AI sector, while the true primary innovation market is in the Web2 AI field. The appeal of Crypto Assets to traditional venture capital and top talent is increasingly declining, and it may instead be labeled as "speculation," losing its former luster.

The reason is that, apart from the unique advantage of "issuing coins", the Crypto Assets industry seems to struggle to present other solid cards. Although the launch of ETFs has brought in institutional funds, this is more about recognition at the financial tool level and is not closely related to the altcoin market.

The key question is: what scenarios are indispensable for non-Crypto Assets? In the past, the value of Crypto Assets lay in providing a relatively free experimental space for financial innovation. However, as traditional financial institutions begin to enter this market through stablecoins, ETFs, and other means, besides the technical characteristic of "decentralization," what irreplaceable value can Crypto Assets bring to users?

Despite the current situation being bewildering, there is still reason to maintain hope. A true breakthrough may be just around the corner. Staying optimistic might be the best thing we can do right now.