According to PANews, the current state of the crypto primary market is perceived as being in a crisis, with several key issues highlighted by industry insiders.
Firstly, the narrative surrounding crypto has become meaningless, with a casino culture taking precedence. The concern is not just the slow delivery of technological narratives but the complete abandonment of narrative packaging in favor of a meme-driven casino culture. Previously, the slow delivery of technology narratives was seen as a long-term endeavor, supported by initial VC funding and transparent project development. However, the market has shifted to a game of community operations and financial speculation, with trading opportunities measured in minutes. This shift away from technology narratives has amplified the risks of meme trading, making the market more perilous for most participants.
Secondly, there is an accelerated loss of developers and a stagnation in technological innovation. Data indicates a nearly 30% decline in active crypto developers on GitHub from last year's peak, while AI and traditional tech companies are aggressively recruiting engineers. As major tech companies like OpenAI, Google, and Meta compete for talent in the AI sector, the crypto industry's narrative of 'disrupting the internet' struggles to retain developers. After several build cycles, developers are experiencing a rapid decline in innovation enthusiasm, with few significant breakthroughs from zero to one. Concepts like Restaking, Intent, and AI Agent have gained attention, but practical applications remain scarce.
Lastly, the crypto market is facing a lack of external attraction, leading to its marginalization. The appeal of crypto to external funds and talent is waning, with the real secondary altcoin season occurring in the U.S. stock AI market and primary innovation in the web2AI sector. Crypto's allure to traditional VCs and top talent is diminishing, and it is often labeled as speculative. Despite the introduction of ETFs bringing institutional funds, this recognition is more at the financial tool level, with Wall Street's inflow seen as asset allocation rather than a direct link to the altcoin market.
The discussion raises questions about the unique value that crypto can offer beyond decentralization, especially as traditional financial institutions embrace the market through stablecoins and ETFs. While the situation appears bleak, there is hope that a genuine solution may emerge in the near future, with optimism serving as the best support.
Miyuki
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