Recently, I’ve been reflecting on a question: why does this cycle of the crypto market feel completely different?

It’s not about the price—that’s too superficial. It’s the overall atmosphere of the ecosystem that has changed. Builders in the crypto community are fewer and fewer, the timeline is full of disappointment, and many people have simply chosen to leave. A friend told me that during the previous bear markets, he would study projects and test applications every day, full of anticipation for the next wave. This time? He almost doesn’t want to touch this field anymore. I can understand that feeling.

Honestly, retail investors in this cycle have experienced not just a bear market, but a complete harvest. From September to December 2024, the memecoin craze attracted millions of new wallets, but 99% of the tokens went to zero within 90 days. By March 2026, among 1.37 million wallets trading on a major platform, only 4% made more than $500. Most people had no chance of making money from the start.

Then came the big liquidation in October this year. A flash crash caused 1.66 million traders to be liquidated for over $90k, the largest liquidation event in crypto history. Countless wallets went to zero directly. Many people left the industry permanently, and I completely understand why.

But this cycle, the crypto market has undergone a fundamental shift.

In previous bear markets, once retail investors exited, the market would fall into a vacuum. This time, it’s different—institutions are supporting the floor. In 2025 alone, US crypto ETFs attracted $31.77 billion. BlackRock bought $24.7 billion worth of Bitcoin, inflows into Ethereum spot ETFs increased nearly fourfold, and after Solana spot ETFs launched, they attracted $568 million for 20 consecutive days. Even now, with 90% of retail investors panicking, net ETF inflows continue unabated.

ETFs are just the beginning. Looking at the bigger picture, giants like Goldman Sachs and JPMorgan support RWA projects handling over $9 trillion per month, Stripe and Paradigm are building payment blockchains, and some institutions have already issued $22 billion in real loans on-chain. The market cap of stablecoins has reached $317 billion. Companies of this scale wouldn’t spend so much money on areas without exponential growth potential.

On-chain data also tells the same story. By March, Bitcoin exchange reserves fell to their lowest in nearly two years. Moreover, 64% of Bitcoin flowing into exchanges comes from the top 10 wallets.

So, the essence of this cycle is clear: retail investors are losing, institutions are accumulating. The crypto market is completing a transfer of power.

When retail investors return on a large scale next time, they will face a completely different crypto market. No longer the era of wild growth, but a market supported by institutional funds, settled in stablecoins, and sustained by real products. How profound this change is, I think we haven’t fully realized yet.