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KOL: "The narrative in recent times has been really bad!" revealing the awkward situation of the cryptocurrency market's forced hype.

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KOL: "The narrative in recent times has been really bad!" revealing the awkward situation of the cryptocurrency market

The cryptocurrency market has seen wave after wave of speculation, each with its own narrative that stirs up the community. Hong Kong cryptocurrency influencer KOL Raccoon feels that the recent narrative is just not compelling enough to drive the bull market up.

Recent Narratives Are Disappointing

He feels that the recent narratives are not as exciting as the previous trends:

  1. Coinbase's upcoming L2 "Base" (a bunch of existing DeFi protocols claiming to go live)
  2. Bitcoin L2 (basic infrastructure tokens derived from the Bitcoin network, like Stacks STX)
  3. Goerli ETH NFT (hype around NFTs on the Ethereum test network...)
  4. Chinese concept coins (speculation on Chinese-themed currencies sparked by Hong Kong regulation)

He believes that these narratives fall short compared to the stories circulating recently.

He cites examples such as Ethereum L2 Arbitrum ecosystem, NFTFi, on-chain derivatives, and LSD (liquidity staking derivatives). He thinks that the current market lacks coherence and macro narratives, urging caution against risks.

Pushing Coin Hype Narratives Might Highlight Depletion of External Funds

Recent speculative narratives indeed present many logical contradictions:

  • The largest compliant U.S. exchange, Coinbase, is moving towards decentralized development to evade regulations. Almost all the protocols expected to enter are well-established in DeFi, and when expanding to other emerging public chains, they did not bring much price increase. Due to Coinbase's regulated status, Delphi Labs legal advisors even predict that Badse will attract regulatory troubles.
  • The NFT community is starting to evaluate the buying interest of Bitcoin veteran players in NFTs, and the recent Bitcoin NFT craze has faded away. Stacks STX, dubbed as Bitcoin L2, is often criticized as "fake L2" on Twitter, but recently saw a 200% increase in the past 30 days.
  • The Ethereum test network Goerli will be closed, and even here, there are businesses related to NFTs and cross-chain bridges.
  • The regulatory framework in Hong Kong is essentially the same as that under the securities laws of other countries, and the conditions for operators to serve retail investors are very strict. The community continues to buy unrelated coins, only calling for compliance-related currencies in Hong Kong. In fact, compliance in Hong Kong may be of no help to the demand for currencies.

Federal Reserve officials continue to be hawkish, influencing global investment market dynamics. Global tech companies are laying off employees, with the cryptocurrency industry shrinking even more severely, and external institutional investments are becoming more conservative, with crypto-friendly banks pulling out. The major moves by global regulatory agencies this year will significantly change the industry landscape.

Under the waves of internal speculation in the shallow cryptocurrency market, sustainability is bound to be affected, and investors must be cautious. "Don't be the last one!"