Institutional funds have long voted with their feet. When a certain well-known fund launched a 'shanzhai index fund', savvy investors noticed that 80% of its holdings were in BTC and ETH. The logic of the shanzhai season that once created wealth myths is being dismantled by three fatal factors:

▷ Huge amounts of unlocking continue to exert selling pressure (a certain Layer 1 releases $250 million every month)

▷ VC costs are severely mismatched with market prices (the institutional holding cost of a certain AI coin is only 1/3 of the current price)

▷ Real income cannot support valuations (most DeFi protocols have annual revenues of less than 0.1% of FDV)