The Crypto Market in the Era of Great Internal Competition: Returning to Real Rise

Recently, the crypto market has fallen into a slump. Not only the so-called "VC coins", but also many tokens including fully circulating altcoins, Meme coins, and even Ethereum have experienced significant declines, underperforming Bitcoin. This indicates that the current market predicament is not limited to a specific type of token, but rather a challenge faced by the entire encryption field.

The reasons for this situation are mainly as follows:

1. The impact of Bitcoin halving cycles is weakening. With multiple halvings, the marginal effect of Bitcoin's inflation rate decreasing gradually diminishes, reducing its driving force on prices.

2. Changes in the global economic cycle. The overall upward trend since the birth of cryptocurrencies may be undergoing a reversal.

3. Over-investment in the primary market. Between 2020 and 2022, a large amount of capital flowed into the encryption field, leading to some unreasonable projects receiving financing and being listed at high valuations, ultimately affecting the performance of the secondary market.

4. The internal competition in the market has intensified. In the absence of external capital inflows, the crypto market has formed a multi-tiered exploitation structure, with each tier squeezing profits from one another, further exacerbating the internal competition.

In the face of such a market environment, for a project to survive, it must return to real growth, which mainly includes the following aspects:

1. Focus on organic growth. While technology and products are important, marketing is equally essential. Projects should pursue genuine user growth and retention, rather than relying solely on short-term incentives to acquire superficial data.

2. Reassess collaboration with opinion leaders. High-quality opinion leaders can not only provide promotion but may also contribute strategic advice and resources. Project teams should engage in in-depth communication with key opinion leaders to build a relationship of mutual trust.

3. Use protocol revenue as a core indicator. A sustainable business model and stable income are the foundation for the long-term development of the project. The project should strive to achieve surplus and establish a reasonable governance mechanism and economic model.

4. Build a real economic model. This includes: ensuring sustainable protocol revenue sources, matching the token cycle with the project's growth cycle, viewing incentives as investments rather than consumption, addressing the issue of class solidification in the chip structure, etc.

Overall, in the current market environment, projects need to focus more on substantial growth and value creation rather than relying on short-term speculation or excessive marketing. Only projects that can truly create value for users and the market can stand out during this challenging period.