Most general-purpose blockchains and projects on them will gradually die if they do not find a niche.
We have too many blockchain networks, but looking back, only a few networks have real users.
First, in terms of surface, blockchain has two user segments: #consumer and #investor.
The consumer group is currently very small and often does not care what blockchain is; what they use is the product's features. So, essentially, blockchain is left with only one user segment, which is investors, including investors, airdrop farmers, yield farmers, and market makers. So don't be surprised when the market is purely PvP.
Within investors, there are two smaller groups: smart money and degen money, simply understood as intelligent money flow and gambling money flow.
Gambling money flow is quick, flexible, agile, small, and always present with the market's attention. Wherever there is potential for profit exploitation, degen money is present. However, easy come, easy go; the loyalty of this group is zero, and the money will leave as soon as there is no attention.
Smart money or serious money flow is similar to gambling money flow, both aiming at a single goal: profit, but differs in that it is based on a fundamental system of reasoning and analysis. Because the characteristic of this group is extremely large volume; they are not easily moved or exploited in areas of weak liquidity. They also cannot be brought to places with potential risks. This group is also referred to as value investing.
Therefore, to attract this smart group, the fundamental analysis of the network and the project must be solid, not just simply running some incentive programs or creating games for the degen money group.
If you pay attention, you will see that the most resilient projects in the market are those serving smart money and generating real revenue. These are L1s accumulating value, centralized and decentralized exchanges, no ponzi yield farming projects, stablecoins, wallets, oracles, and privacy.
The group of projects serving degen money often comes and goes with trends.
Ultimately, blockchain and crypto will only be tools, the theories for building products will revert to traditional ones: supply demand, market segment, brand positioning, 4Ps, 7Ps. And blockchains and projects without positioning, weak positioning, and wrong positioning will gradually be eliminated.
"In the end, every market becomes a two-horse race" - 22 immutable laws of marketing - Al Ries, Jack Trout.
