Original Author: Sankalp Shangari
Original Translation: Deep Tide TechFlow
This is not just another ordinary cryptocurrency cycle; it feels more like your favorite underground bar being transformed into a high-end cocktail lounge after being acquired. Those "decentralized gamblers" and retail speculators who once dominated the market are licking their wounds, while hedge funds, sovereign wealth funds, and traditional financial giants are entering the game in tailored suits, armed with algorithmic strategies, ready to take control.
The crypto veterans have experienced more dramatic events than reality shows—from the Mt. Gox collapse, the ICO frenzy, to the DeFi summer boom and the NFT gold rush that turned into a garage sale. They are now hoping for Bitcoin to quickly rebound to $120,000 to $150,000, contemplating whether to cash out like retired poker pros or if there’s still a chance to play one more "crazy hand."
But let's be clear—cryptocurrency has not perished; it is undergoing a "corporatization transformation." New rules are forming, and the question is: will you choose to adapt, or are you still asking, "Can Dogecoin reach $10?"
1. The Market is No Longer What It Used to Be
The cryptocurrency market resembles a once-chaotic western frontier town that now has a Starbucks and a planning committee—chaos is fading, and institutional funds are flooding in. The days when a single "meme" and a dream could multiply assets a hundredfold are over. The new game rules are: suits, regulatory compliance, and macroeconomic maneuvering.
Bitcoin's New "Operator": Macroeconomics, Not "Halving Fairies"
If you still think Bitcoin's price is entirely determined by a four-year cycle, you are like an "antique" still waiting for dial-up internet to connect, out of touch with reality. Bitcoin is now a macro asset, responding to interest rates, global liquidity, and economic risk sentiment like an experienced Wall Street trader. If you don’t understand macroeconomics, you might as well be playing chess with a fidget spinner.
Retail Investors Exit, Institutions Take Over
Do you remember when your Uber driver and barber were promoting altcoins and debating Ethereum gas fees? Those days are long gone. Now, it’s BlackRock, sovereign wealth funds, and traditional financial giants controlling the market. ETFs have injected billions into the market, but they have also turned Bitcoin into a corporate asset—no longer a wild stallion, but more like a dramatic Tesla stock.
Liquidity Divergence: Bitcoin and Ethereum Become VIPs, Altcoins Are Neglected
Institutional funds are pouring into BTC, ETH, and a few blue-chip altcoins like champagne, while the liquidity of other assets is rapidly drying up, faster than your New Year’s fitness ambitions. Many small altcoins are becoming "ghost chains"—haunted by the dreams of past bull markets and holders unwilling to cut losses.
The Trump Effect: Is It "Meme" Magic or a Liquidity Trap?
Trump's recent pro-crypto stance has injected new energy into the market, such as discussions about establishing a U.S. strategic Bitcoin reserve and rapidly advancing stablecoin regulation. However, his "meme coin casino" (like $TRUMP, $MELANIA) has become a liquidity black hole, siphoning off speculative funds and leaving the entire market gasping for air. It’s like a carnival where everyone spends their last dollar trying to win a giant teddy bear, only to find they can’t even afford the ride home.
2. Web3 Promised a Revolution, But Where's the Usability?
Web3 was supposed to change the world, but it now feels more like a Las Vegas buffet—full of hype, with only a few decent dishes and the rest being junk food. DeFi aimed to replace banks, NFTs were supposed to redefine ownership, and the metaverse was meant to be the new gathering place for people. But after billions of dollars in promises, the only thing that has been widely adopted is stablecoins.
The Only Killer App: Stablecoins (aka "Premium Internet Dollars")
Forget the DeFi revolution and NFT empire; the only real success in cryptocurrency has been the creation of fewer intermediaries and a more efficient digital dollar. If Web3 is a sci-fi movie, stablecoins are the only truly functioning alien technology, while everything else is just conceptual art and fan theories.
Speculative Economy: Hype Remains the Main Theme
Cryptocurrency still resembles a high-risk Ponzi carnival, with meme coins, influencer pump-and-dump schemes, and overhyped "next-gen" public chains (like TIA, SEI, MONAD, BERACHAIN) launching with valuations over $5 billion, yet with very few users. It’s like opening a five-star restaurant, spending millions on marketing, but forgetting to hire a chef.
The Collapse of the "Fat Protocol" Theory
For years, the "fat protocol" theory in blockchain posited that the value of infrastructure should exceed that of the applications built on it. But it turns out to be like investing in roads while expecting them to be more valuable than the cities they connect. In reality, corporate valuations typically hover around 5-15 times earnings, while some stagnant L1 and L2 chains still exist at multiples of 150 to 1000, despite no growth. These chains now resemble a theme park without rides—expensive tickets, yet filled with broken promises.
VCs Still Need Exit Liquidity (And You Are That "Liquidity")
Many "innovative" projects exist solely to allow early investors to exit, much like the ICO frenzy of 2017. If a project launches with immediate token unlock mechanisms and a fully diluted valuation higher than Coinbase, congratulations—you are not investing; you are becoming their exit liquidity. It’s like buying a house only to find the previous owner sold you the land, walls, and even the air in the rooms separately.
3. Talent Drain in the Crypto Industry: Developers Are Turning to AI
Top developers in the crypto space are fleeing to AI like rats abandoning a sinking ship—or more accurately, like Web3 influencers deleting their "decentralized forever" tweets overnight to become "thought leaders" in the AI field.
Why Are Developers Abandoning Crypto for AI?
Because AI is the new hot topic, while cryptocurrency feels more like a washed-up rock star trying to keep selling tickets with an old hit from 2017.
Clearer Regulation
AI is like a potentially brilliant but slightly terrifying child genius—governments around the world are still hesitating on whether to nurture it or keep it under strict surveillance. And cryptocurrency? It still resembles that rebellious teenager who maxed out grandma's credit card to buy Dogecoin, viewed by the government as a problem child.
Better Funding Environment
Venture capitalists treat AI investments like the next Google, while cryptocurrency founders can only pitch their twelfth "revolutionary" L1 project in empty conference rooms.
Fewer Boom and Bust Cycles
AI is like a stable honor student, while cryptocurrency resembles that student who either wins the science fair grand prize or burns down the lab—there’s no middle ground.
The Great Migration from Web3 to AI
Those who once promised a decentralized world are now training AI models to write corporate emails and even generate unsettlingly realistic deepfake videos.
Cryptocurrency once aimed to replace banks.
AI just wants to replace you.
At the current trend, developers remaining in the crypto space are either true believers or those too lazy to update their LinkedIn profiles.
4. OGs Are Cashing Out, But the Game Isn’t Over
The crypto veterans—those who have experienced the Mt. Gox collapse, the ICO frenzy, the DeFi exits, and the "I accidentally sent my entire portfolio to the wrong address" phase—are finally starting to cash out. They have been in the industry long enough to know that when BlackRock starts buying Bitcoin, the era of exponential growth has ended.
Where Are They Going?
AI and Tech
Instead of betting on meme coins, they are developing algorithms that can replace financial analysts.
Real Estate
After years of staking, mining, and leveraged trading, the real 100x return might just be buying a house in Miami.
Semi-Retirement
Some OGs have had enough of the 2 AM CoinGecko refreshes and have moved to tropical islands, communicating only in the language of Bitcoin extremists.
But Institutional Funds Are Taking Over
The exit of OGs does not mean the end of cryptocurrency. On the contrary, large institutional funds are flooding into the market, much like Wall Street's financial elite discovering the allure of DeFi summer, albeit two years late but still enthusiastic.
Cryptocurrency is no longer just a playground for decentralized gamblers and speculators—it is evolving. The casino is still open, but now the slot machines belong to Goldman Sachs.
The question is: are you ready to embrace the next chapter? Or are you just here to FOMO into the next round of meme coins?
5. An Optimistic Outlook: The Next Crypto Boom Will Be… Different
The next cryptocurrency boom will resemble that once-crazy party friend who now shows up in a suit at brunch and orders a salad instead of tequila. The chaos is settling, and the once-rebellious youth is maturing into a well-behaved "investment-grade" adult—at least to some extent.
Regulation is Finally Taking Shape
Cryptocurrency is undergoing a makeover—like that class clown suddenly becoming the student council president. It’s still mischievous, but now it’s donned a brand-new suit and is wearing a "Let’s Follow the Rules" badge.
The U.S. Securities and Exchange Commission (SEC) has finally decided to stop treating every crypto exchange like a villain in a Bond movie. They have dropped lawsuits against Binance, Coinbase, Kraken, Uniswap, etc., as if they have finally realized that cryptocurrency is not going away—much like your dad finally stopping the arguments over your "controversial" tattoos.
Decentralized finance (DeFi) brokerage rules? The IRS may have to stop ruining everyone’s fun. Imagine telling your uncle: "You can keep the party going—just don’t mess it up."
The U.S. Senate Banking Committee is about to vote on the Stablecoin Act, and the GENIUS Act is also gaining support. It’s like cryptocurrency finally got the parental signature for an off-campus activity permission slip.
Institutional Adoption is Accelerating
Large institutions are entering the cryptocurrency space with the swagger of the "cool kids" in finance, as if they have finally decided to let you sit at their lunch table.
BlackRock, JPMorgan, and sovereign wealth funds are on the scene, and they are not just "testing the waters"—they are diving straight into the deep end, hoping their hefty investment portfolios won’t hit rock bottom.
The Mubadala fund in the UAE is now a major holder of Bitcoin ETFs, proving that cryptocurrency finally has that "cool uncle" who can tell jokes and pay for vacations.
Solana, XRP, and other ETFs are in the works, making this crypto party feel more like a black-tie gala, with suited individuals replacing the casual crowd in flip-flops.
Cryptocurrency IPOs Are Coming
Now, cryptocurrency is donning formal attire, preparing for an IPO. We see Kraken, Gemini, and BitGo pushing forward with their IPOs—bringing transparency and credibility to a field that once felt like a high-stakes poker game played in a dimly lit basement.
Going public is like a graduation ceremony for cryptocurrency—finally receiving a diploma and having the chance to explain to worried parents what it is you’ve been doing.
Government Attitudes Toward Cryptocurrency Are Warming
Governments that once viewed cryptocurrency as the crazy cousin who shows up drunk on homemade wine at family gatherings are now willing to share a taxi with it. Cryptocurrency is gaining the respect it has always believed it deserved.
Several U.S. states are considering holding Bitcoin reserves—it's like these states have added some "cool points" to their balance sheets.
Hong Kong has approved spot Bitcoin and Ethereum ETFs, essentially saying, "We accept it, just don’t mess it up."
The UAE, Brazil, and Australia are crafting friendly cryptocurrency regulations, becoming the new "cool kids" in the crypto space.
The EU's MiCA framework is like a good behavior certificate issued by the enlightenment teacher of cryptocurrency, saying, "You were a bit naughty, but we now allow you to play with the other kids."
Final Thoughts: Adapt and Survive
Yes, the market has changed; yes, the OGs are tired and considering retirement; yes, the scammers are still as active as those trying to sell "miraculous" weight loss pills on Instagram. But every cycle brings new winners—like a reality show with constantly changing contestants and ever-ambiguous rules.
In 2013, Bitcoin pioneers were the enthusiastic western pioneers claiming to own gold mines while others were still figuring out how to use PayPal.
In 2017, ICO founders saw white papers and thought, "Let’s raise a billion dollars and then figure out what to do," like a group of kids selling lemonade in the desert, only with bank accounts that had a few extra zeros.
In 2020, DeFi developers launched new protocols faster than your uncle could tell you about his latest "high-risk" stock. They rolled out new protocols like mad scientists, trying to create decentralized currency without blowing up the lab.
In 2021, NFT speculators viewed pixelated ape images as golden tickets to the "chocolate factory," and what they got in return was not candy, but a bag of cash. While the rest of us were still trying to figure out what "minting" meant, they had become the Wall Street brokers of the image world, raking in profits.
In 2024, we witnessed the takeover of institutional ETFs alongside the rise of meme coin mania—until the defenders of meme coins realized that the takeover by suited Wall Street bankers far exceeded their imagination. We saw the entire image of cryptocurrency transform from a rebellious youth who only listened to punk rock into a well-tailored suit and tie suddenly appearing at business meetings (though still with a bit of coffee on the tie).
2025 and Beyond
Institutions have taken over. Either adapt and learn the game, or be eliminated.
Bitcoin remains king; it is a macro asset akin to gold. Learn macroeconomics, learn Wall Street thinking and trading.
New governments will continue to extract value from cryptocurrency alongside their allies. This is nothing new; it’s just another player, like past FTX, Luna, 3AC, or VC coins. You need to adapt and learn to play against these "players" rather than giving up easily.
As for altcoins, despite the massive investments over the past decade, their real value remains limited. Most altcoins, including Ethereum and Solana, are still speculative assets with minimal actual demand for their products. Once institutions begin to evaluate these tokens based on real fundamentals, many tokens may appear severely overvalued. This is precisely why Bitcoin is becoming increasingly important.
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