Starting from the bottom: the “darkest hour” of the crypto market

In the first half of 2025, the crypto market faced significant pressure. Bitcoin retreated from its peak of $114,000 to around $100,000, leading to public speculation about whether the “bull market has ended” and “if the market is on the brink of death.” Many projects slowed down, and some second-tier exchanges collapsed or withdrew, exacerbating panic sentiment.

This “darkest hour” is not the first time it has appeared in the history of the crypto market. The 2018 ICO crash, the 2022 Luna incident, and the collapse of FTX have each raised questions about the end of encryption, but each time they also heralded the beginning of a new life.

Current price changes of Bitcoin and mainstream coins

As of June, the price of Bitcoin (BTC) remains around the 100,000 USD mark, with a 24-hour high reaching 105,993 USD. Although it has declined compared to the beginning of the year, the overall trend has not fully turned bearish. Ethereum (ETH) is stable around 5,400 USD, and among the top ten cryptocurrencies by market capitalization, the fluctuations of coins such as SOL, TON, and XRP are all within a controllable range.

This data indicates that the crypto market is not stagnant, but rather in a typical mid-term correction phase, and has not deviated from a structural bullish trend.

The activity level and development status of crypto projects

In terms of on-chain activity, there is still a large amount of funds circulating in the DeFi, Layer 2, and AI sectors. Public chains such as Polygon, Scroll, and zkSync maintain high daily interaction volumes, indicating that users are still active on-chain.

In terms of developer activity, according to a report by Electric Capital, the number of active developers is expected to slightly decrease in 2025, but it has still doubled compared to 2020. Representative projects such as EigenLayer and Giza Protocol have not only completed financing but also continue to update their technical documentation, indicating that the enthusiasm for development has not waned.

Has investor confidence truly collapsed?

Indeed, some retail investors have chosen to withdraw due to long-term returns not meeting expectations. However, at the same time, a lot of capital is shifting towards low-risk strategies, such as on-chain earning, stablecoin yield pools, and so on. The deposit volumes on platforms like Gate Wallet, Binance Earn, and Lido have seen significant growth recently, indicating that rational investors are positioning themselves for the next round of opportunities.

On the institutional side, Grayscale, BlackRock, and others continue to absorb BTC ETF shares. The proportion of traditional funds incorporating encryption assets into their investment portfolios is also on the rise, which is a sign of a shift from “speculation” to “allocation.”

A Review of the Historical “Death” Theory and the Experience of Rebound

Let’s take a look back at a few moments of crypto “death”:

• 2013: China banned Bitcoin for the first time, BTC fell to a hundred dollars, and the crypto market was filled with despair.
• 2018: The ICO bubble burst, ETH fell to $80, and it was believed that “blockchain is dead.”
• 2022: Luna and FTX collapsed one after another, causing the entire industry’s market value to shrink by more than 70%.

Every crash drives the industry to self-clean, comply, and upgrade technology. From these experiences, after every “crypto market conclusion,” there is always a new wave of technological explosion and market activation.

Why is it said that the crypto market is far from over?

1. Technology continues to evolve: new concepts are constantly emerging in areas such as zero-knowledge proofs, on-chain AI, and composable finance.
2. Application implementation is strengthening: platforms like World App, Telegram Wallet, and Visa on-chain payments are gradually advancing towards mainstream adoption.
3. Policy is becoming clearer: The United States, European Union, Japan, and other regions have successively introduced regulations for stablecoins and guidelines for exchange supervision, providing a fertile ground for the healthy development of the industry.

So, even if the short-term market is not good, and even makes people doubt that “encryption is dead”, from the perspective of the long cycle and industrial structure, this is just the eve of the next bull market.

Conclusion:

“Has the crypto market perished?” is not a technical question, but a psychological reflection of the market intertwined with faith and cycles. From historical experience, every “doomsday theory” marks the beginning of a deep reshuffling and rebirth. For newcomers who believe in technology and understand risks, now is not the time to flee, but rather a great opportunity to learn and strategize.