The crypto market currently lacks a clear demand:
What can be observed is that the market capitalization of stablecoins has increased tenfold in four years, while the price of BTC has nearly increased sevenfold in the same period.
During the DeFi bull market from 2020 to 2021, the demand for stablecoins peaked,
resulting in a rapid accumulation of stablecoins.
Following the approval of the BTC ETF, the demand for BTC began to rise, and the price of Bitcoin surged rapidly.
Additionally, during the rise of the metaverse, Sandbox Land skyrocketed from a few hundred dollars to between 12,000 and 18,000 dollars.
When PFP NFTs gained popularity, BAYC surged from a mint price of 0.08 ETH to around 450,000 dollars.
When BRC20 Bitcoin assets emerged, $ORDI rose from nearly zero cost to 25 dollars, and then to around 80 dollars.
Similar to 2021, the year 2024 also experienced a phenomenon where the market capitalization of stablecoins increased due to some significant events, but the price of BTC fell. However, this did not hinder the value accumulation driven by demand.
The AI MEME narrative has subtly created a demand—event witnesses and participants—but this demand is not sustainable.
VC tokens have not created demand beyond the conventional models of liquidity mining, staking, and governance, even with airdrop expectations and the popularity of Restake in early 2024.
Therefore, the demand for VC altcoins peaking throughout 2024 is purely speculative demand bubbles along with a portion of staking demand, which includes ETH, while $SOL capitalized on the foreseeable MEME demand in 2024, allowing it to stand out among many public chains.
