The real dilemma of the current crypto market is not as simple as 'poor liquidity'.
Many attribute the market downturn to poor liquidity, but I believe this is only a superficial phenomenon. What is truly worth digging into is why liquidity is poor? Is it a natural contraction, or is it being systematically guided away?
In my view, the core issue of this round of the crypto market is that liquidity has been 'deliberately and purposefully' transferred away. Although the previous bull markets had ups and downs, they at least had their own rhythm, and altcoins could still run independent trends. But now, the crypto market increasingly resembles a vassal of the traditional financial market, with every move being dictated by the Federal Reserve, SEC, and even comments from certain politicians.
Since the approval of the BTC ETF, crypto assets have been incorporated into the landscape of traditional finance, and the originally 'decentralized and borderless' imaginative space has gradually been subsumed under the game rules of established financial forces. New concepts such as RWA and stablecoins essentially resemble finding new buyers for US Treasuries. Liquidity is no longer flowing for innovation but is being 'precisely guided' to fill the gaps in other markets.
More importantly, most of these new projects in the market are packaged beautifully, but behind them is actually a 'black hole' that sucks away liquidity. They not only fail to inject new vitality into the market but instead become the terminal station for funds.
Crypto was supposed to be a vibrant, continually evolving ecosystem, but now it increasingly resembles a 'game' with parameters set by high-level powers, where project teams either comply or are technically 'cleared out'. In such an environment, how can liquidity flow freely, and how can the market be healthy and prosperous?
Where is the way out in the future?
We cannot expect traditional powers to refrain from 'interfering' in this market, nor can we prevent the old financial system from infiltrating the new financial structure. What we can do is see through these capital logics and strategic intentions, so that we can stand in a more advantageous position in the next round of games.
True transformation is not about continuing to bet on which track to take but about returning to the original spirit of crypto, which is 'self-organization and anti-monopoly'. Only when new crypto narratives can shake the power structure again can they reignite the market's true vitality.