Market Dilemma and Redemption: Why On-Chain Innovation Is the Only Way Out for Crypto

Recently, I have been deeply evangelizing in a certain track for a few days, and suddenly I realize that everything has changed. Instead of bottling it up, I might as well openly share some market phenomena and the underlying logic.

Liquidity exhaustion, even a small spring is just an emotional game

Since Trump took office, the actual market liquidity has significantly contracted. The so-called rebound that followed is essentially emotion-driven rather than supported by fundamentals. Genuine incremental capital has not returned.

Altcoins have become the debt side

From the day of token issuance, altcoins have been in an over-leveraged state. The once steadfast holders have disappeared, and dedicated developers have also dispersed. Instead, there are airdrop arbitrageurs, venture capital firms eager to raise funds, exchanges extracting funds, and project teams looking for quick cash-out. Every participant wants to exit, but who will take over? No one can answer this question.

The mission of MEME coins has been accomplished, and their glow is fading

MEME coins were once seen as weapons for retail investors to resist overvalued VC tokens. This mission has indeed been fulfilled. But the lack of technical barriers and false promises of “fair launch” lead to mass production on an assembly line, which cannot create long-term value accumulation. Without a background of technological innovation stories from traditional VC tokens, the prosperity of MEME coins is merely an internal game of existing funds, ultimately leading to systemic decline in the entire industry.

Exchanges are starting to sell shovels, and the gold rushers have lost their meaning

The traditional role of exchanges is to carry the spillover effects of on-chain innovation and amplify liquidity. But when platforms like Pumpfun, GMGN, Hyperliquid emerge and create wealth effects, exchanges feel threatened and initiate “internal ecosystem” self-rescue plans. The result is clear—when those selling tools start mining themselves, the foundation of the entire gold rush industry is dismantled.

Builders and investment institutions are facing a survival crisis

Why are projects issuing tokens in clusters? Why has the market lost patience for product refinement? Why do the responsibilities for industry structural imbalances ultimately point to project teams and VCs? These questions are complex, but one undeniable fact is that—builders and capital in the crypto space are experiencing large-scale bankruptcies and capital outflows. Even more terrifying than losing all capital is that the entire industry is being drained from the bottom, leading to talent loss and ecological hollowing out.

Where is the only way out?

I have always emphasized the importance of on-chain innovation, precisely because of this: the crypto industry has lost its vitality, it is aging, and even severely ill. Only a true on-chain narrative revolution driven by technological innovation can break this cycle and rebuild the industry’s ability to generate its own vitality.