The bigger the waves, the more expensive the fish. The volatility and yield of the crypto market have recently been killed by the A-share and Hong Kong stocks, and the volatility of the entire crypto market is declining significantly.

It has been exactly 7 years since I entered the circle in 2017. As a person who has been through it, in 2017, there were thousand-fold coins everywhere. If a coin could not open at a hundred times, it was simply garbage.

By the time of the 21st bull market, although there were not many thousand-fold coins, there were still a lot of hundred-fold coins. Whether it was blockchain games, DeFi, or NFT, it was a very lively period, and everyone could make incredible profits from all kinds of outrageous tracks or projects.

In this bull market, let alone a 100-fold return on coins in the secondary market, a 10-fold return is already a frog on a steel pipe - top notch. Even some very popular projects can only earn several times the return when they open.

Now there are more and more project owners, and they are becoming more and more sophisticated. They are unwilling to give such high returns to the market, and the market is not so passionate about rushing in to support them. So it has entered a death spiral.

Apart from these new projects, the volatility of Bitcoin is also decreasing. This is the inevitable law of the development of things. When the market value increases, the volatility will inevitably decrease. Let me give you an example to illustrate this. Bitcoin has doubled from 10,000 to 20,000. Bitcoin has dropped from 60,000 to 50,000, with a drop of only a dozen points. The volatility is completely different for the same 10,000 US dollars.

On the one hand, it is because of market consensus and economic laws, and on the other hand, it is due to external factors, such as compliance. Last time, a friend raised a point of view that I thought made sense. He said that the good news in the crypto industry before was endogenous, such as Bitcoin halving, the mainnet launch, second-layer applications, the launch of DeFi, etc. But now, it almost all depends on the mood of the Federal Reserve and the US stock market. As long as there is bad news, the market will crash. But good news may not be useful.

This is a bit like drinking poison to quench thirst. In the beginning, too many external forces were introduced for rapid development, but now they are also beginning to be countered by external forces. This is actually equivalent to handing over the dominance of cryptocurrency, which is a very fatal thing, but there is no way, it has been handed over.

This is not the worst thing, because it is a long-term pain, and there is no obvious cause and effect in the short term. But the short-term pain makes everyone feel very uncomfortable. Two words, confusion.

The iteration speed of the industry has dropped significantly, and innovation has come to an end. The ICO innovation in 2017 has led to the booming development of the spot market. Then, the traditional financial model was copied, ushering in the climax of contract trading. Then there was innovation on the chain, and DeFi, blockchain games, and NFT came out. Now, apart from inscriptions, it seems that there is no new narrative.

The industry iteration speed has slowed down, and there is a lack of new narrative expectations. The entire industry, from institutions to project parties to investors, has fallen into a period of confusion. We know that the future is bright and promising, but how can we get through this garbage time? Let's quote Du Fu's poem to bless this market.

The wind and clouds suddenly rise, the world changes, and the mighty momentum shakes the universe.

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