Chainfeeds Digest:

In the journey of the Bit market, we have witnessed cycles and rotations time and again. Today, the market has once again fallen into silence, with tightening liquidity, cautious VCs, and retail investors stepping back, and many builders feeling unprecedented challenges. However, if history can teach us anything, it is that the market is not static, but a dynamic system full of reflexivity.

Source:

https://x.com/mirrorzk/status/1898371798116565269

Author:

Mirror Tang

Viewpoint:

Mirror Tang: The fickle speculators have already left, and the true builders are still holding their ground. In such a market environment, what is the most worthwhile thing to do? The core competitiveness of top investors has never been to follow the trend in a Bull market, but to identify truly valuable projects in the low tide period. Historically, Sequoia invested in Airbnb during the 2008 financial crisis, and a16z bet on DeFi and Non-Fungible Tokens during the 2018 Bear market, both of which ultimately yielded handsome returns. Today's market is also nurturing the next great opportunity: areas such as ZK, AI+Bit, DePIN, and on-chain financial infrastructure are evolving rapidly. The valuations of many excellent projects have returned to reasonable levels, which is the golden window for long-term layout. Investors who dare to bet when the market is fearful will be able to reap the greatest dividends in the next cycle. The Bear market in the primary market is the best period for construction. Almost all the leading projects in each Bull market were born in the coldest stage of the primary market: Uniswap built the automated market-making protocol in the 2018 Bit winter, and became the core infrastructure of DeFi in 2021. Arbitrum & Optimism quietly cultivated the Rollup solution in 2020, and became the protagonists of the Layer2 track in 2023. Ordinal & Bitcoin L2 were born in the market downturn of 2022-2023, and are now expanding the boundaries of BTC. If you are a founder, the most important thing now is not the short-term price, but to focus on building truly useful products, constructing anti-cyclical business models, and attracting long-term users and investors. The market is driven by emotions, and a new cycle requires a new narrative. Today's market needs to find a story that can ignite a new round of market confidence. Will ZK technology reshape the privacy and scalability of blockchain? Will the Bitcoin ecosystem usher in a new growth curve with policy support? Can on-chain AI truly change the production relations of Bit? Can DePIN (decentralized physical infrastructure) become a new paradigm for blockchain infrastructure? Before each market rebound, there are always new paradigms that become catalysts, and we are now witnessing the early budding of these trends. The Bit market has never been a linear growth, but always swings between confidence and fear, bubbles and troughs. Soros' theory of reflexivity tells us that the market's downturn is not only a reflection of reality, but also a product of collective emotions. And when this emotion begins to turn, the market rebound is often faster than anyone expects.