The Era of Intense Competition in the Crypto Market: From VC Coin Collapse to Growth-Driven Value Restructuring

The current crypto market is stuck in a low liquidity predicament. This is not just an issue with VC coin, but a challenge faced by the entire market. In the past few cycles, the top of Bitcoin's market share usually corresponds to the bottom of the market cycle, but this time the situation is different. Bitcoin's breakthrough to new highs has not led to a general rise in other tokens, indicating that the entire crypto market is in crisis.

There are several reasons for this situation. First, the marginal impact of Bitcoin halving on price is continuously weakening. Second, the launch of Bitcoin ETFs overlaps with the halving cycle in timing, giving the market an illusion of a bull market. Additionally, the global economic cycle is also undergoing changes, which has a profound impact on the crypto market.

In this era of intense competition, the market has formed a pyramid structure. The profits at each level come from the exploitation of the next level and draw liquidity out of the market. This cycle exacerbates distrust in the market, making the competition even more severe. In this structure, VC has become the relatively weaker party due to the restrictions of contracts and lock-up periods.

In the face of this situation, the survival pressure on projects and tokens has greatly increased. The past top-down "technological determinism," "background determinism," and "narrativism" are becoming ineffective. The only thing the market believes in is real growth - the growth of real users, the growth of real income, and the growth of real adoption.

In such an environment, organic growth becomes crucial. Projects need to reassess their market strategies and cannot rely solely on cold data growth. True growth should be highly integrated with product strategy and should maintain a high retention rate even after eliminating unsustainable factors.

For KOL collaboration, project parties need to change their mindset. High-quality KOLs can not only provide assistance in market and brand aspects but also offer advice on products, strategies, and more. Founders should communicate one-on-one with important KOLs directly, rather than relying entirely on intermediaries.

Protocol revenue should become the most important rise indicator for projects. Sustainable growth comes from sustainable business models and revenue. Projects need to find reliable sources of income to ensure the possibility of achieving surplus, and build effective governance mechanisms and economic models.

Finally, most projects have not established a real economic model. An effective economic model should generate sustainable protocol revenue, align the token cycle with the project growth cycle, view incentives as investments rather than consumption behaviors, and address the issue of class solidification in the chip structure.

In this challenging time, only by returning to real growth and value creation can projects survive and develop in the highly competitive market. This requires the joint efforts of project parties, investors, and the community to rethink and adjust strategies to adapt to this new market environment.