Multiple Crises in the Crypto Market: Three Major Challenges Hindering Development

In recent communications with frontline project developers, we have found that the current primary market for cryptocurrencies is facing multiple difficulties, which are severely restricting the healthy development of the industry.

1. Narrative Failure, Gambling Culture Prevails

What is concerning is that the technical narrative is being completely abandoned, replaced by a purely speculative culture. In the past, project teams would attract investors through transparent roadmaps; now it has evolved into a game of pure community operation and capital speculation.

This shift has significantly increased market risks. Trading opportunities have become extremely fleeting, even measured in minutes. For ordinary investors, this purely speculative environment is far more dangerous than the technology-driven long-term development.

2. Talent loss in development, innovation stagnates

Data shows that the number of active cryptocurrency developers on GitHub has decreased by nearly 30% compared to last year's peak. Meanwhile, artificial intelligence and traditional tech companies are aggressively recruiting talent, offering more attractive compensation.

The problem facing the cryptocurrency industry is that after multiple rounds of development cycles, the innovative enthusiasm of developers is rapidly waning. Although concepts like Restaking, Intent, and AI Agent are emerging one after another, there are very few projects that have truly landed applications and found product-market fit.

Developers seem to be stuck in a dilemma: constantly reinventing the wheel, yet unable or unwilling to pay attention to how far these wheels can go. This situation seriously hinders the technological progress of the industry.

3. Insufficient external attractiveness, clear trend of industry marginalization

The appeal of cryptocurrencies to external capital and talent is rapidly declining. Currently, the real secondary market hotspot is in the US stock market's AI sector, while the primary innovation market is focused on the Web2 AI field. Traditional venture capital and top talent's interest in cryptocurrencies is waning, and they may even bear the negative label of "speculation" as a result.

The reason for this situation is that, aside from the characteristic of "token issuance", cryptocurrencies seem to struggle to demonstrate other unique advantages. Although the launch of ETFs has brought institutional funds into the industry, this recognition is more at the level of financial instruments and is not closely related to the altcoin market.

The key question is: in which scenarios are cryptocurrencies indispensable? In the past, cryptocurrencies provided a relatively free experimental space for financial innovation. However, as traditional financial institutions enter the market through stablecoins, ETFs, and other means, apart from the technical characteristic of "decentralization," what other irreplaceable value can cryptocurrencies bring to users?

Despite the current severe situation, we should still maintain an optimistic attitude. The true breakthrough may be just around the corner, and continuous exploration and innovation will ultimately lead the industry out of difficulties.