Crypto Assets Industry's Dilemmas and Prospects

In the past year, the interaction between the Crypto Assets industry and traditional financial enterprises, large technology companies, and global political figures has become increasingly frequent. However, this bidirectional engagement has not brought the expected prosperity, but instead has led the market into stagnation.

The Great Stagnation Era of the Encryption Industry

People's attitudes towards Crypto Assets have shifted from frenzy to calm. The approval of the Bitcoin spot ETF has not changed the world as expected; instead, Bitcoin is now seen as a mapping asset of M2, losing its function of hedging against inflation and preserving value. At the same time, the launch of the ETF has also weakened Bitcoin's role as a catalyst for a bull market in the Crypto Assets market.

The market is flooded with ineffective information, from community AMAs to large-scale media promotions, and now the prevalence of KOLs, all reflecting the market's excessive focus on trading. This trend ultimately leads to the dominance of exchanges, as they are the final point of transaction.

At the same time, the role of traditional venture capital institutions is also changing. VCs in Silicon Valley, the Middle East, and Europe are still actively preparing for the next stage, while Chinese VCs are facing dual pressures from LPs and ROI, gradually transitioning towards becoming market makers.

New Asset Issuance Method

In every crisis of the crypto industry, new asset issuance methods emerge. In this market round, yield-bearing stablecoins (YBS) have become a new innovation point. YBS not only meets the market demand for stablecoins but also pioneers a brand new form of asset issuance.

Currently, the Crypto Assets market presents a tripartite pattern of exchanges, stablecoins, and public chains. Among them, the competition in the stablecoin sector is the fiercest, with traditional financial giants like USDC and BlackRock entering the market, while on-chain solutions like YBS have also emerged.

The Future of Ethereum

Ethereum remains the backbone of the Crypto Assets market. In terms of asset issuance, ETH and ERC-20 USDT still dominate. Although competitors like Solana occasionally surpass in certain metrics, Ethereum's position remains solid from an overall fundamental perspective.

However, the challenges faced by Ethereum cannot be ignored. Users tend to embrace stablecoins rather than ETH itself. Therefore, how to transfer the asset properties of ETH to the currency level has become a key issue. YBS may be the key to solving this problem, but the premise is that it can become a new mainstream asset issuance method.

Conclusion

The Crypto Assets industry is at a critical turning point. It should not degenerate into simple Financial Technology 2.0, but should pave a broader path for development. The development of YBS may bring new opportunities to the industry, but this requires market recognition and user acceptance. In this process, balancing technological innovation with practical application will be a major challenge faced by the industry.