What are we talking about when we say the crypto market lacks dividends? In fact, it means that the tide of high valuations has receded. Crypto may follow the trajectory of airline or early-generation Internet company stocks, reaching a century peak and never touching that high again. Although the bottom will not be zero, it will be significantly lower than the current price.

While new developments in Crypto technology may be useful, they cannot support high valuations. The main beneficiaries are VC institutions that obtain bargaining chips at low valuations, and retail investors have limited returns. For example, MakerDao, a veteran DeFi with relatively good fundamentals, has an annual protocol revenue of 200-300 million and a valuation of 2.5 billion. A financial company with normal revenue should have a valuation of less than a quarter of this.

The generation of protocol income means that the token will not return to zero, but the bottom valuation is much lower than the current valuation. This is why the DeFi that was speculated in the last round has no performance this round, and institutions will not rush to take over the market for no reason.

Space is limited, so in my next long tweet I will try to analyze the reasons for the high valuations in the industry. This round of "Knowing the Wool" lacks a legendary narrative, so stay alone and stay awake. The general is on his way, not chasing the rabbit.