Is the cryptocurrency industry facing its "darkest hour"? Will the benefits of the crypto market disappear once traditional finance enters?

Blockchain researcher Haotian recently commented on the current subdued and eerie atmosphere in the cryptocurrency market, starting with "The Darkest Moment of the Crypto Community," elaborating on the distorted values of project parties, investors, and retail investors in the current market. Haotian also indicated that the successive approval of cryptocurrency ETFs is accelerating the traditional financial sector's encroachment on the cryptocurrency market.

Is the "darkest moment" approaching for the crypto community?

Haotian pointed out that he feels powerless against the distorted values of "innovation is useless" in the primary market and "MEME is everything" in the secondary market, suggesting that the crypto industry seems to have truly entered what is known as the "darkest moment."

Industry Players and Market Sentiments at a Low

He first noted that in the past two months, driven by the market atmosphere, few projects have been able to excite investors. Perhaps due to a lack of innovation, repetitive narratives, or a disconnect between the primary and secondary markets, discussions within the community on topics related to technology, narratives, or business have become quite feeble.

Ignas: Lack of real innovation in the current market, pointing out that community, market predictions, and gaming projects lack potential innovative momentum

In response, Haotian emphasized that industry participants still need to maintain their spirits and continue to focus on hot topics and technology:

This includes engaging in technical exchanges with frontline developers or having in-depth communication with project founders. By doing so, one can not only avoid being disturbed by the sentiments in the secondary market but also clearly sense the "innovative vitality" flowing within the industry.

Memes as the Market Theme

At the same time, with narratives such as "high FDV completely diluted valuation, VC disruption, no one taking the lead, MEME is everything" becoming the prevailing theme in the market, he candidly stated:

Honestly, from a pure speculation perspective, all cryptocurrencies are MEME, whether packaged with VC narratives or simply meme coins.

He added, "The former is more likely to find value over the long term, while the latter carries gambling sentiment and may lead to wealth stories in the short term."

Community Opinion: Meme coins will gradually disappear, but it will not change risk investment

Haotian emphasized that VC coins and meme coins each have their pros and cons, and there is no right or wrong choice:

In any investment market, there are two groups of people with radically different short and long-term concepts. Choosing VC coins means enduring the agony of slow growth, while choosing meme coins means facing the risk of going to zero. It's just a matter of different paths.

However, he still acknowledged the steadfast faith of many developers who stuck to their beliefs during the meme coin frenzy, emphasizing that regardless of the cost, risks, and potential returns of any ecosystem, there is uncertainty:

This process, although painful, accumulates experience with each step. Unlike MEME, once the gambling nature spirals out of control, any reckless bet could lead to irreparable consequences.

ETF Approval: No reason to be pessimistic about the market in the long term

Additionally, Haotian is optimistic about the approval of Bitcoin and Ethereum spot ETFs, stating that it has propelled the entire crypto industry into an unprecedented period of prosperity.

Ethereum vs. Bitcoin Spot ETF, Bloomberg Analyst: Very stable first day of issuance!

He believes that as long as one does not indulge excessively in trading and short-term market fluctuations, he actually cannot find any reason to be pessimistic about the current market and industry:

From a macro perspective, the crypto industry is gradually breaking the sense of niche and patterns from the past few cycles, while rapidly merging with web3 alongside web2.

The End of the Crypto Boom?

Haotian mentioned that as the rapid integration continues, developers, projects, narratives, scams, gameplay, and choices continue to increase.

However, he also admitted that the wealth growth of diamond-handed coin holders will slow down as a result, and the trading risk of frequent swapping will increase. Especially, relying on past experiences of trading coins to cope with the current environment will no longer be effective:

Negatively speaking, the early rewards from trading coins are fading; but positively, the web3 industry is becoming more competitive and mature.

Maturity is the Path for Web3

Lastly, Haotian emphasized that intensifying competition and maturation are necessary stages in the industry's growth. Both developers and investors need to face the increasingly challenging conditions of entrepreneurship and investment and seek more opportunities.

He urged industry participants to maintain their original intentions and not let market sentiments lead to gambling:

Under no circumstances should values be confused, leading to a belief that the industry is failing and resorting to the essence of gambling. For most people, this was not the original intention of joining the crypto industry.