The Great Stagnation of the Crypto Assets Industry and Future Directions

In the past year, the Crypto Assets industry has experienced a two-way interaction with traditional finance, tech giants, and political forces. Although certain events triggered brief market fluctuations, overall, the industry has fallen into a state of stagnation.

Analysis of the Current Status of the Crypto Assets Industry

The approval of the Bitcoin spot ETF has not brought about the revolutionary changes as expected. Now, Bitcoin is viewed as a mapping asset for the M2 money supply, which is neither effective in combating inflation nor likely to serve as a catalyst for a bull market.

Ethereum is facing significant challenges. From "human civilization-level innovation" to a sharp price decline, Ethereum is seeking to reshape itself through technologies like Risc-V. However, whether this shift in technological direction can truly solve the issues remains in doubt.

Solana and other public chains are also continuously adjusting their strategies, but all face similar dilemmas. The entire industry seems to be caught in a situation of information overload and stagnation of innovation.

There have also been significant changes in the venture capital field. The traditional VC model is being challenged, and many institutions are turning to a faster market-making model. Meanwhile, exchanges are becoming the dominant force in the industry, attracting a large influx of talent.

New Opportunities: Yield-Generating Stablecoin ( YBS )

In this stagnant environment, interest-bearing stablecoin (YBS) may become a new breakthrough. It not only complements existing stablecoins but may also become a new way of asset issuance. The development of YBS could bring three potential outcomes:

1. YBS succeeds, driving Ethereum's resurgence, with ETH surpassing BTC to become the industry's core.
2. YBS was successful but was absorbed by traditional financial assets, leading to the marginalization of the Crypto Assets industry.
3. YBS failed, blockchain technology was simplified to a financial technology tool.

Industry Landscape and Future Outlook

Currently, exchanges, stablecoins, and public chains constitute the three main pillars of the industry. Among them, the competition in the stablecoin sector is the most intense, and the development of YBS will have a significant impact on the overall landscape of the industry.

Ethereum and Tron dominate the stablecoin market, but competitors like Solana are also catching up. The growth trends of stablecoins across different chains are basically synchronized, showing a high degree of correlation in the industry.

In the future, whether YBS can become a new mainstream asset issuance method will be crucial. This not only concerns the fate of Ethereum but will also determine the development direction of the entire Crypto Assets industry.

Conclusion

The Crypto Assets industry is at a critical crossroads. While technological innovation is important, it is even more necessary to focus on user needs and market realities. Industry participants should act cautiously, avoiding the simple classification of Crypto Assets as Financial Technology 2.0, and instead explore broader development spaces to create real value for users.