Author: Sankalp Shangari
Compiled by: TechFlow
This is not just another ordinary cryptocurrency cycle, but more like your favorite underground bar being acquired and turned into an upscale cocktail lounge. The "decentralized degens" and retail speculators who once dominated the market are now licking their wounds, while hedge funds, sovereign wealth funds, and traditional financial giants in tailored suits are entering the field with algorithmic strategies, ready to take control of the game.
The veterans of the cryptocurrency world have experienced more drama than a reality show - from the Mt. Gox collapse, the ICO frenzy, the DeFi summer hype, and the NFT gold rush that turned into a garage sale. They now hope that Bitcoin will quickly rise back to $120,000 to $150,000, contemplating whether to cash out like retired poker pros or take one more "crazy hand".
But the thing is - cryptocurrencies have not disappeared, they are just undergoing a "corporatization" transformation. New rules are being formed, and the question is: will you adapt, or are you still asking "can Dogecoin reach $10?"
1. The Market is No Longer What It Used to Be
The cryptocurrency market is like a once-chaotic Wild West town that now has a Starbucks and a planning commission - the chaos is fading, and institutional money is pouring in. The era of assets skyrocketing 100x on a "meme" and a dream is over. The new game rules are: suits, regulatory compliance, and macroeconomic chess.
Bitcoin's New "Puppetmaster": Macroeconomics, Not "Halving Fairies"
If you still think Bitcoin's price is entirely determined by a four-year cycle, you're like an "antique" waiting for a dial-up internet connection, disconnected from reality. Bitcoin is now a macro asset, reacting to interest rates, global liquidity, and economic risk sentiment like an experienced Wall Street trader. If you don't understand macroeconomics, you're like bringing a fidget spinner to a chess match.
Retail Exits, Institutions Take Over
Remember when your Uber driver and hairstylist were pitching Altcoins and debating Ethereum Gas fees? Those days are gone. Now it's BlackRock, sovereign wealth funds, and traditional finance giants pulling the strings. ETFs have injected billions into the market, but also turned Bitcoin into a corporate asset - no longer a wild stallion, but more like the slightly dramatic Tesla stock.
Liquidity Bifurcation: BTC and ETH Become VIPs, Altcoins Left Out in the Cold
Institutional money is flowing into BTC, ETH, and a few blue-chip Altcoins like champagne, while the liquidity of other assets is drying up faster than your New Year's fitness resolutions. Many small Altcoins are becoming "ghost chains" - haunted by the dreams of past bull markets and holders unwilling to take losses.
The Trump Effect: Meme Magic or Liquidity Trap?
Trump's recent pro-crypto stance has injected new life into the market, such as discussions of establishing a U.S. strategic Bitcoin reserve and rapidly pushing stablecoin regulation. However, his "meme coin casinos" (like $TRUMP, $MELANIA) have become liquidity black holes, sucking away speculative capital and leaving the entire market gasping for air. It's like a carnival where everyone spent their last dime trying to win a giant teddy bear, only to find they don't have enough for the ride home.
2. Web3 Promised a Revolution, But Where's the Utility?
Web3 was supposed to change the world, but now it feels more like a Las Vegas buffet - hype is flying everywhere, with only a few decent dishes and the rest just junk food. DeFi was meant to replace banks, NFTs to redefine ownership, and the metaverse to become people's new hangout. But after billions in promises, the only thing that's been widely adopted is stablecoins.
The Lone Killer App: Stablecoins (aka "Advanced Internet Dollars")
Forget the DeFi revolution and NFT empires, the only real success in cryptocurrencies has been creating more efficient, less intermediated digital dollars. If Web3 is a sci-fi movie, stablecoins are the only real working alien tech, while everything else is just concept art and fan theories.
Speculative Economy: Hype is Still the Dominant Tune
Cryptocurrencies are still like a high-risk Ponzi carnival, with meme coins, influencer pumps, and overhyped "next-gen" blockchains (like TIA, SEI, MONAD, BERACHAIN) launching with $5 billion+ valuations and barely any users. It's like opening a five-star restaurant, spending millions on marketing, and forgetting to hire a chef.
The Collapse of "Fat Protocol" Theory
For years, the "fat protocol" theory of blockchains claimed that the value of the infrastructure should exceed that of the applications built on top. But it turns out this is like investing in roads and expecting them to be more valuable than the cities they connect. Real-world business valuations are typically 5-15x P/E, yet some stagnant L1s and L2s still exist at 150x to 1000x, despite no growth. These chains are now more like a theme park without any rides - expensive tickets, but full of broken promises.
VCs Still Need Exit Liquidity (And You're That "Liquidity")
Many "innovative" projects exist solely to allow early investors to cash out, just like the 2017 ICO craze. If a project launches with immediate token unlocks and a fully diluted valuation higher than Coinbase, congratulations - you're not investing, you're becoming their exit liquidity. It's like buying a house and finding the previous owner sold you the land, walls, and even the air in the rooms separately.
3. Talent Exodus in the Crypto Industry: Developers Turning to AI
Top developers in the crypto space are fleeing like rats abandoning a sinking ship, or more accurately, like Web3 influencers deleting "decentralization forever" tweets overnight to rebrand as AI "thought leaders".
Why Are Developers Abandoning Crypto for AI?
Because AI is the new hotness, while cryptocurrencies are more like the has-been rock star trying to ride on a 2017 hit song.
Clearer Regulation
AI is like a promising but slightly terrifying prodigy child - governments are still debating whether to nurture or strictly control it. Crypto? Still the rebellious teenager who maxed out grandma's credit card on Dogecoin, seen as a problem child by authorities.
Better Funding Environment
VCs treat AI investments like the next Google, while crypto founders can only pitch their 12th "revolutionary" L1 project in empty conference rooms.
Fewer Boom-Bust Cycles
AI is the stable overachiever, while crypto is the student who either wins the science fair or burns down the lab - no in-between.
The Great Migration from Web3 to AI
The "visionaries" who once promised to decentralize the world are now training AI models to write corporate emails, and even generating unsettling hyper-realistic deepfake videos.
Cryptocurrencies once aimed to replace banks.
AI just wants to replace you.
According to current trends, the developers who remain in the crypto space are either true believers or those who are too lazy to update their LinkedIn.
4. OGs are cashing out, but the game is not over
The crypto veterans - those who have weathered the Mt. Gox collapse, the ICO frenzy, the DeFi rug pulls, and the "I accidentally sent my entire portfolio to the wrong address" phase - are finally starting to cash out. They've been in the industry long enough to know that the era of exponential growth is over now that BlackRock is buying Bitcoin.
Where are they going?
AI and Tech
Instead of betting on meme coins, they're developing algorithms that can replace financial analysts.
Real Estate
After years of staking, mining, and leveraged trading, the real 100x return might be buying a house in Miami.
Semi-Retirement
Some OGs are done with the 2 AM CoinGecko refreshing and have moved to tropical islands, communicating only in Bitcoin maximalist lingo.
But institutional money is taking over
The OGs' exit doesn't mean the end of crypto. Instead, large institutional money is pouring into the market, just like Wall Street's financial elite discovered the allure of DeFi summer, albeit two years late, but still with great enthusiasm.
Crypto is no longer just the playground of decentralized degens and speculators - it's evolving. The casino is still open, but now the slot machines belong to Goldman Sachs.
The question is: are you ready for the next chapter? Or are you just here to FOMO into the next meme coin?
5. The Optimistic Outlook: The Next Crypto Boom Will Be...
The next crypto boom will be like that old party friend who now shows up to brunch in a suit, ordering a salad instead of tequila shots. The chaos is settling, and the former rebellious youth is growing into a "investment-grade" adult - at least to some degree.
Regulation is Finally Taking Shape
Crypto is undergoing a makeover - like that class clown who suddenly becomes the student council president. It's still mischievous, but now it's wearing a brand-new suit and a "let's follow the rules" badge.
The SEC has finally decided to stop treating every crypto exchange like the villain in a Bond movie. They've dropped their lawsuits against Binance, Coinbase, Kraken, Uniswap, and others, as if they've finally realized crypto isn't going away - a bit like your dad finally not arguing with you about your "controversial" tattoo.
DeFi brokerage rules? The IRS might have to stop ruining everyone's fun. Imagine telling your uncle, "You can keep the party going - just don't mess it up."
The Senate Banking Committee is about to vote on the Stablecoin Bill, and the GENIUS Act is gaining support. It's like crypto finally got the parental permission slip for the off-campus activity.
Institutional Adoption is Accelerating
Major institutions are joining crypto like the "cool kids" of finance, as if they've finally decided to let you sit at their lunch table.
BlackRock, JPMorgan, and sovereign wealth funds are not just "dipping their toes" - they're diving into the deep end, praying their heavy portfolios don't hit the bottom.
The UAE's Mubadala fund is now a major holder of Bitcoin ETFs, proving crypto has finally found that "cool uncle" who can tell jokes and pay for the vacation expenses.
Solana, XRP, and other ETFs are in the works, making this crypto party feel more like a black-tie affair, with suits and ties replacing the casual flip-flop crowd.
Crypto IPOs are Coming
Now that crypto is dressed up, it's ready to go public. We're seeing Kraken, Gemini, and BitGo IPOs in the works - bringing transparency and credibility to a space that used to feel like a high-stakes poker game in a dimly lit basement.
Going public is like crypto's graduation - finally getting the diploma and a chance to explain to the concerned parents what it's been up to.
Governments are Warming Up to Crypto
The governments that once saw crypto as the crazy, drunk relative showing up at the family gathering are now willing to share a cab. Crypto is gaining the respect it always felt it deserved.
Multiple US states are considering holding Bitcoin reserves - it's like these states are adding a little "cool factor" to their balance sheets.
Hong Kong has approved spot Bitcoin and Ethereum ETFs, basically saying, "We accept it, just don't mess it up."
The UAE, Brazil, and Australia are developing crypto-friendly regulations, becoming the new "cool kids" in the crypto space.
The EU's MiCA framework is like crypto's enlightened teacher handing out a good behavior certificate, saying, "You used to be a bit mischievous, but we're now letting you play with the other kids."
Final Thoughts: Adapt and Survive
Yes, the market has changed; yes, the OGs are tired and considering retirement; and yes, the scammers are still active like those trying to sell "miracle" weight loss pills on Instagram. But every cycle brings new winners - like a constantly changing cast in a reality show with ever-evolving rules.
In 2013, the Bitcoin pioneers were the crazy Wild West settlers, claiming they had a gold mine while the rest of us were still figuring out how to use PayPal.
In 2017, the ICO founders saw a white paper and thought, "Let's raise $1 billion and then figure out what to do," like a group of kids selling lemonade in the desert, except their bank accounts had a few more zeros.
In 2020, the DeFi developers were launching new protocols faster than your uncle telling you about his latest "high-risk" stock. They were like mad scientists quickly rolling out new protocols, trying to create decentralized money without blowing up the lab.
In 2021, the NFT speculators saw pixelated ape images as golden tickets to the "chocolate factory," except the payoff wasn't candy, but bags of cash. While the rest of us were still trying to figure out what "minting" meant, they had become the Wall Street stock brokers of the digital art world, raking in the dough.
In 2024, we witnessed the institutional ETF takeover, running parallel to the meme coin frenzy - until the meme coin defenders realized the Wall Street bankers in suits had taken over far more than they ever imagined. We saw the entire crypto image transform from a rebellious teenager listening to punk rock to a suit-and-tie-wearing professional suddenly showing up at the business conference (but with a coffee stain on the tie).
2025 and Beyond
Institutions have taken over. Either adapt and learn to play the game, or get left behind.
Bitcoin remains the king, a macro asset like gold. Learn macroeconomics, learn Wall Street's mindset and trading ways.
The new government will continue to work with its allies to extract value from cryptocurrencies. This is nothing new, just another player, like the past FTX, Luna, 3AC or VC coins. You need to adapt and learn to play with these "players" instead of giving up easily.
As for Altcoins, despite the huge amount of investment over the past decade, their real value remains limited. Most Altcoins, including Ethereum and Solana, are still speculative assets, with little actual demand for their products. Once institutions start evaluating these tokens based on their actual fundamentals, many tokens may appear to be severely overvalued. This is why BTC is becoming more important.
