Although altcoins have performed poorly in this cycle, high-quality projects are often born in such an environment. Looking back at the bull market cycle of 2020-2021, the DeFi ecosystem has become an important support for the market. DeFi has not only survived successfully to this day, but is also continuing to develop. However, this cycle has not spawned a truly grounded narrative, and now there is only endless PVP gaming and nihilism in the market.
After Trump and his wife issued the coin, the meme coin that had been hyped for a year on the SOL chain collapsed precipitously, and the newly emerging AI Agent field was also hit hard, and its development momentum was curbed. Subsequently, the President of the Central African Republic also issued his own token on Twitter, which is similar to the TRUMP token. More and more "powerful people" are using this model to issue coins, resulting in the continuous absorption of market liquidity. The crypto industry seems to have become a "blood-sucking field" in this cycle. If this phenomenon continues, the entire industry will be difficult to expand and will eventually stagnate in the state of PVP game, and market liquidity will only become smaller and smaller.
Analysts at StarEx Exchange believe that this cycle is the most difficult to make a profit since the birth of the crypto industry. In the last cycle, there were only a few thousand altcoins, and the mainstream hype tokens were only dozens of them. Therefore, in the liquidity feast, even unknown projects could soar. However, in this cycle, the number of altcoins is as high as tens of millions, and projects with a little fame have a market value of billions of dollars once they are launched, making it difficult to reproduce the previous "altcoin season" market. In the current environment, only high-quality projects that trade in bands and truly implement product landing have the opportunity to stand out.
Ethereum's gas fee is routinely below 1 Gwei, and Bitcoin transaction fees are frequently below 1 sat/byte, with on-chain activity dropping to a freezing point. StarEx exchange analysts believe that if the crypto industry wants to continue to develop, it must find incremental markets, such as crypto payments, value storage, DeFi, AI Agent, RWA, and other directions, and new breakthroughs and applications are needed.
Although the market is currently sluggish, there is no need to be overly pessimistic. After the Internet bubble burst in 2000, the market was crazy about Internet technology, but it eventually collapsed due to the inability to realize cash. However, in the following years, companies such as Apple, Google, Amazon, and Facebook have experienced explosive growth, promoting the healthy development of the industry. Similarly, after a year of PVP market anxiety on the SOL chain, although fewer and fewer people are willing to calm down and build projects, truly resilient projects are still expected to stand out.
In addition to the already implemented crypto payment, value storage, DeFi and other ecosystems, StarEx exchange analysts believe that RWA, AI and the digital economy based on NFT may have greater opportunities for implementation.
In terms of RWA, trillions of dollars of assets around the world have potential tokenization needs. Ondo, which is supported by BlackRock, has a good development momentum. This field is very likely to breed high-quality projects. AI Agent previously plummeted due to the collapse of market liquidity, but this track still has the potential to reignite, especially in the field of encrypted asset payment and trading. The application space of AI agents is still full of imagination. In addition, the grand narrative of Web3 has rarely been mentioned since the meme coin hype, but the imagination of data storage and data economy is still very large. Data is the foundation of the Internet and has huge commercial potential. There may be projects that have the opportunity to rise in the future.
StarEx exchange analysts believe that although the market is full of challenges in the short term, truly high-quality projects are often born in the cold winter. History shows that only those projects that are truly innovative and capable of landing can settle in the market downturn and eventually usher in explosive growth.
