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Original Author: 0xJeff
Original Compilation: Deep Tide TechFlow
2025 is filled with unprecedented turmoil and change. We welcomed a U.S. president who supposedly supports cryptocurrency and artificial intelligence. However, the market in 2025 did not bring the anticipated bull market; instead, it became a year of 'slaughter' for the entire industry.
Most altcoins experienced a decline of 80%-99% in 2025
Bitcoin's market cap share returned to the levels of 2019-2020 (over 60%), outperforming most coins
The trading price of Ethereum (ETH) is not much different from that in 2022
The altcoin market is highly fragmented (with 40 to 50 million types of coins available)
Despite the constant stream of good news in the industry (like clearer regulatory frameworks, ETF approvals, corporate adoption of blockchain technology, institutional investments in BTC, ETH, and altcoins, etc.), the performance of the stock market in 2025 completely overshadowed the crypto market.
Despite the pain and turmoil, 2025 is still seen by many as the 'year of maturity' for the industry, but it also witnessed the exit of a large number of practitioners and investors.
So, for those who are still holding on in the crypto space, here are the key points to understand before 2026 arrives:
Let's delve deeper ↓
Predictive markets: multifunctional trading tools
Predictive markets became one of the fastest-growing verticals in 2025—weekly nominal trading volume first reached $3.8 billion, with Polymarket, Kalshi, and Opinion emerging as dominant platforms in the field.
Despite the ongoing debate about whether 'predictive markets are equivalent to gambling,' the Commodity Futures Trading Commission (CFTC) considers them as event contracts or binary options based on real-world event outcomes. The CFTC's innovation-friendly stance, combined with the increasing market demand for betting/prediction, has propelled rapid growth in predictive market trading volume in 2025.
From the perspective of trading tools, predictive markets demonstrate great flexibility. They can be seen as a more user experience-optimized options tool (though still lacking in liquidity).
You can use leveraged trading in any market, choose 'yes/no' directional bets, use it as a hedging tool (by holding spot positions elsewhere), or execute delta-neutral strategies (evenly distributing 'yes/no' shares in the market) to earn returns and potential airdrop rewards.
Cash-secured put options and covered call options
These two options strategies are very suitable for investors who wish to manage their investments in a more conservative manner.
Rather than buying into altcoins directly or quickly selling them when prices drop, it's better to generate cash flow by selling call or put options. If the price reaches a certain target, you can choose to buy on dips or sell your altcoins; if the price doesn't reach the target, you'll recover your principal.
This strategy is one of the best ways to generate high annual percentage yields (APR) for your altcoins or stablecoins.
The only thing to note is that your principal will be locked for a period (usually 3-5 weeks), but you will receive the option premium immediately when selling call or put options.
Narrative fatigue + equity vs tokens = return to fundamentals
The rotation speed of market narratives has significantly accelerated; hotspots that used to last for weeks or even months can now only last a few days.
The crypto community (CT) is shifting from chasing narratives to focusing on real fundamentals (such as user numbers, revenue, growth metrics). The market is more inclined to assess metrics of real businesses and clarify the value transfer relationship between businesses and tokens.
However, this year we witnessed too much chaos in the battle between equity and tokens, especially in the mergers and acquisitions (M&A) field:
Pumpfun acquired Padre (a trading tool), but left Padre's token holders completely in the dark. After the acquisition news was announced, PADRE tokens plummeted by 50%-80%, triggering a strong backlash from the community. To appease the discontent of the Padre community, Pumpfun promised to airdrop PUMP tokens based on the value of PADRE holdings before the acquisition announcement.
Circle acquired Axelar, but also ignored Axelar's token holders. After the acquisition, AXL tokens dropped significantly. This is recent news, and what will happen next is still unknown, but the community is already outraged (and rightfully so).
The debate between equity and token holders is becoming more intense, leading us to a deeper question...
Market governance organizations and ownership tokens
MetaDAO launched a fair, transparent, and unmanipulable ICO launch platform, characterized by high throughput, relatively low fully diluted valuation (FDV) structure, with no venture capital (VC) or private allocations. Additionally, mechanisms such as performance-based team unlocks and potential fund recovery features were introduced.
This structure grants token holders genuine ownership, control, and alignment of interests, effectively addressing issues such as project abandonment, token dumps, opaque operations, and improper acquisitions.
Colosseum (an organization independently accelerating the Solana ecosystem) recently launched 'STAMP' (Simple Token Protocol, a market protection mechanism), a new investment contract designed to merge private equity financing with public MetaDAO ICOs, ensuring investor rights and aligning with MetaDAO's on-chain governance.
The MetaDAO model has given rise to a new category of 'ownership tokens,' with these projects launching through MetaDAO's ICO. Many launched projects have performed strongly—such as Umbra, Omnipair, and Avici—showing significant outperformance against the market during fundraising.
Through the MetaDAO model, the importance of token holders has been elevated; they truly have a voice and practically own the project. Project revenues and fees are no longer directed to equity holders but directly benefit token holders.
The trend of market governance organizations and ownership tokens is likely to continue into 2026 and will interweave with the upcoming trends...
The rise of securities tokenization
On-chain liquidity is limited, and market participants are gradually turning their attention to fundamentals, revenue, buybacks, and other real values. Meanwhile, enterprises are starting to adopt stablecoins, with more institutions investing capital in the crypto space. Recently, securities tokenization has become simpler and more feasible than ever, especially for regulated entities.
On December 11, 2025, the securities tokenization field welcomed an important regulatory breakthrough. The U.S. Securities and Exchange Commission (SEC) issued a 'No-Action Letter,' clearly stating it would not take enforcement action against DTCC (the U.S. Depository Trust & Clearing Corporation) for its subsidiary DTC's pilot securities tokenization program. The pilot includes the tokenization of Russell 1000 index constituents, U.S. Treasury bonds, and major ETFs.
This mechanism will implement compliant centralized tokenization operations through DTC during the pilot period (starting in the second half of 2026, lasting three years), directing activities to regulated infrastructure rather than fully decentralized alternatives.
This means that starting from 2026, we will see more securities tokenization projects, which also means that the demand for tokenized stocks will increase, accelerating the integration between traditional finance (TradFi) and decentralized finance (DeFi).
Consumer-grade crypto products and perpetual contracts become the core of crypto
In 2025, consumer-grade crypto products and perpetual contracts (Perps) become the core hotspots of the crypto industry:
Pumpfun peaks in 2024-2025
Virtuals adopt a similar model but incorporate a new AI intelligent agent narrative
Zora has also made similar attempts in the content token space and received support from Jesse.
Collectibles, fantasy football, and predictive markets became very popular in 2025.
These are consumer-oriented products that allow crypto natives to have fun while attracting non-crypto users (such as participants in predictive markets) to earn returns while enjoying themselves.
Crypto itself is like a game, and trading is also a form of entertainment. Therefore, innovative consumer-grade products that can combine both aspects tend to stand out more.
Perpetual contracts (Perps) also have a similar appeal because they allow users to make precise bets on price movements of assets.
If you pay attention to the key metrics of predictive markets and perpetual contracts, you will find that they both reached all-time highs (ATH) in 2025. These data seem to 'shout' that the product-market fit (PMF) in the crypto field has emerged: the weekly nominal trading volume of predictive markets reached $3.8 billion, while the weekly trading volume of perpetual contracts soared to $340 billion (monthly trading volume of $1.3 trillion, setting a new record).
That's why people are so eager to participate in platforms like Hyperliquid, Lighter, Aster, Polymarket, and Opinion. Huge activity levels, immense demand, and significant capital flow directly translate into higher valuations and more airdrop benefits.
Consumer-grade crypto products also hold potential, but in 2025, we have yet to see truly sustainable consumer-grade crypto products. Sportsdotfun (SDF) has shown good growth momentum in the early stages and is currently undergoing community financing on Legion and Kraken. Despite the uncertainty about how this field will develop in the future, the prospects appear exciting.
From this, we can learn that if you want to find your advantage in this market, you should either invest in platforms (like predictive markets, perpetual contracts, consumer-grade crypto products) or actively engage in these categories:
Learn how to trade perpetual contracts
Make predictions in predictive markets
Use consumer-grade crypto products
Through these practices, you can better understand the market and find your competitive advantage. Otherwise...
You can become a 'Storyteller'
That's right, now (The Wall Street Journal) (WSJ), Silicon Valley, and various tech professionals are starting to be enthusiastic about the role of 'Storyteller.' Many startups have opened positions for 'Storytellers.'
In the crypto space, this has long been a common phenomenon. We have 'talkers' (Yappers), key opinion leaders (KOLs), and storytellers who have been discussing projects and helping to build the crypto community for years (even before Kaito proposed the concept of 'talkers').
But now, it seems the whole world is beginning to realize the importance of having the right narrative and delivering brands, products, and positioning in the right way.
However, the role of a storyteller goes far beyond just being a 'chatterbox.' Currently in the crypto field, many 'chatterboxes' simply copy and paste content to 'boost their presence' rather than genuinely trying to learn and understand the topics they discuss.
This provides an opportunity for those who truly understand the industry, possess expertise, or are curious about learning to stand out—whether in the crypto community (CT) or broader fields.
Those who are good at narratives can expand their brand influence and ultimately gain the right to choose freely: they can choose to develop independently or be 'acqui-hired' by startups and projects that align with their brand.
In 2025, we have already seen successful examples of this dynamic. For instance, Kalshi recruited notable figures from the crypto community, while some crypto projects successfully shaped their brand image and attracted more users through close partnerships and ambassador programs (like sharing badges, etc.).
If you are good at storytelling, then this era is your stage!
Core summary
The 2024-2025 crypto market is like playing a game of 'Monopoly';
The year 2026 will feel more like a stage for enterprises, startups, and suited financial professionals—less of the 'Monopoly' style gameplay, fewer easy money-making opportunities, and fewer narratives based purely on 'numbers going up.'
In the future, there will be more focus on fundamentals, alignment of interests, value accumulation, and compounding leverage. If you cannot cultivate a true competitive advantage, even if you are an OG (original player), you may ultimately become someone else's 'greater fool.'
Your competitive advantage can be any of the following:
Keep a clear mind, unclouded by delusions;
Good at telling great stories;
Create high-quality products that people truly need;
Insight into trends;
Rational trading, not swayed by emotions.
Hang in there, find your advantage, and you will be rewarded.
Thank you very much for reading! If you want to know my views on some projects and more straightforward thoughts, you can check out my column 'The After Hour' on Substack.
Disclaimer
This article is for informational and entertainment purposes only. The views expressed in this article are not investment advice or recommendations. Readers receiving this article should conduct due diligence based on their own financial situation, investment goals, and risk tolerance before investing (not covered in this article). This article does not constitute an offer or invitation to purchase or sell the assets mentioned.
