Circle IPO's valuation tripled in just three days, with a market value exceeding $20 billion, and practitioners are celebrating.

Water friends lament the strong wealth effect of cryptocurrency stocks this year, from MicroStrategy, Metaplanet to Sharplink, and then to Circle.

However, the director feels an underlying worry; the strong performance of cryptocurrency stocks is siphoning liquidity from the crypto space to the US stock market.

According to the director's observation, despite the continued issuance of stablecoins, the visible liquidity in Crypto is declining. Not only altcoins, but even Bitcoin's liquidity has also been partially diverted to stock ETFs. The trading of Bitcoin in the crypto space is merely reflected through repeated deposits and withdrawals on Coinbase. @WutalkWu indicated that recently OTC markets have been reporting that crypto bosses are frantically withdrawing funds to invest in stocks.

The strong performance of cryptocurrency stocks seems positive in the short term, but in the long term, it appears to be negative. The general trend of industry development should be that internal liquidity becomes increasingly abundant, but it has reversed now.

If this continues, liquidity in cryptocurrency exchanges represented by Binance and Coinbase will also continue to decline, ultimately leading to a collapse of the overall fundamentals.

The director's grand wish for the crypto space to eventually replace Nasdaq as the preferred global capital market for innovative companies to exit will also be in vain.