Crypto Assets: Innovation or Stagnation?

In the past year, the Crypto Assets industry has intersected more with traditional finance, large internet companies, and global politics. The cryptocurrency launched by Trump seems to signify the end of Crypto Assets liquidity, but this may just be the beginning of cooperation between the two sides.

From Pakistan to Bhutan and then to the Middle East, new trends related to Crypto Assets have emerged everywhere. However, these events often serve as the last straw for ordinary investors, causing them to lose confidence in the industry's prospects.

The Great Stagnation of the Crypto Industry

Humans seem to always be in pursuit of the opposite things. In the past, they sought freedom, but now they yearn for tradition. The only lesson humanity has learned from history is that it learns no lessons at all.

When the Bitcoin spot ETF was approved, people hoped it could change the world. But it is now widely believed that Bitcoin is merely a mapping asset of M2, unable to serve as an inflation hedge or value appreciation tool, and after being extracted by the ETF, it cannot act as a catalyst for a bull market. It seems to have become an asset that pleases neither side.

After Trump launched Crypto Assets, the market surged and then quieted down, which was to be expected. Some projects' self-rescue actions, new initiatives from certain wallets, and even rumors about executives of a certain trading platform have turned into unprofitable farces.

Crypto Assets seem to be in a stalemate. Ethereum has struggled to regain momentum after its peak and has to reshape itself with new technologies. Other public chains like Solana are also seeking breakthroughs. However, essentially, these efforts are unlikely to change the current market landscape.

Invalid information is eroding the entire market. From KOLs to exchanges, it ultimately leads to the trading behavior itself. This is not a criticism of individuals, but an acknowledgment of market laws. When the influence of KOLs reaches its peak, it often also means a decline in trust and influence.

Venture capital is also facing challenges. Although some overseas VCs are still laying out plans, many investors are quickly turning to the role of market makers. True innovation may come from unexpected places, rather than projects recognized by traditional investment frameworks.

The entire industry is undergoing profound changes. The era filled with opportunities, where everyone chased after instant wealth, is gone forever. Practitioners are being replaced in large numbers by talents from other industries, and the sector is gradually moving towards normalization.

New Asset Issuance Method

Despite the challenges faced by the industry, new asset issuance methods are always born during each crisis. This time, the interest-bearing stablecoin (YBS) may become a new invention. It is not designed to meet existing demands, but to create new possibilities.

YBS is expected to become a new form of asset issuance, but its prospects remain unclear. It may drive the resurgence of Ethereum, or it may be swallowed by traditional financial assets. If YBS fails to succeed, blockchain technology may head towards a "decentralized, tokenless" direction.

Stablecoins are becoming a new asset issuance model, which is unexpected for many. Respecting market rules is more important than indulging in technical narratives. In the current landscape, exchanges, stablecoins, and public chains stand in a tripartite balance, with competition in the stablecoin sector being the most intense.

From the perspective of asset issuance volume, Ethereum still holds a dominant position. The growth rates of stablecoins across various public chains are basically synchronized, indicating that they are still influenced by Ethereum. Whether YBS can become a new asset issuance method will directly impact the future of Ethereum.

Conclusion

Currently, Ethereum is only supported by a technical narrative, while users prefer stablecoins. The industry hopes users will choose YBS over USDT, but there is a gap between reality and expectations.

Before YBS and other crypto native assets mature, promoting blockchain payments too early may be somewhat hasty. The Crypto Assets industry should avoid becoming Financial Technology 2.0 and instead pave a broader path.