Crypto Industry Faces New Challenges as Speculation Declines

According to PANews, Nick Tomaino, founder of 1confirmation, shared insights on the X platform regarding the current state of the cryptocurrency market. He noted that the total market capitalization of cryptocurrencies stands at $3.1 trillion, marking a 14% decline over the past year. However, he highlighted that this figure was zero back in 2009, emphasizing the industry's growth. Tomaino suggested that by 2025, the era of effortless gains in the crypto sector will come to an end. He pointed out the failures of venture capital-driven price hikes, meme coins, and DATs. Despite these setbacks, last year marked a significant milestone for the industry, as products not reliant on token speculation, such as Polymarket and stablecoins, outperformed others. Looking ahead, Tomaino stressed the importance of developing and utilizing products that can yield excess returns without relying on speculative tokens. He identified three constants within the crypto industry: the need to recognize the nature of fraudsters, the real macro trends of declining trust in institutions and the growing importance of the internet, and the investment opportunities presented by credible neutral currencies. Tomaino concluded that only two cryptocurrencies possess credible neutrality: Bitcoin (BTC) and Ethereum (ETH).