Understanding New Crypto Trends from WLFI's Sky-High Opening Price

Chainfeeds Guide:

The next decade of crypto may no longer belong to world-changing geeks, but rather to those who know how to package the on-chain world into financial products that Wall Street can understand.

Source:

Author:

Haotian

Opinions:

Haotian: 1) For Wall Street institutions, the popularity of a new Wall Street DATs narrative has overshadowed previous narratives such as layer2, BTCFi, ZK, and other technical stories. The fact proves that adoption by institutions is what truly brings incremental growth, even if most of the operators behind them have ulterior motives; 2) Emphasis on capital efficiency—the market is no longer focused on the TPS arms race or superficial TVL shows, but is now paying attention to how to generate more yield returns from limited funds. 3) Financial engineering > technical concepts. The expansion of crypto from financial to non-financial fields seems to be a strange cycle. Every cycle talks about outward Mass Adoption, but in the end, it always returns to the most essential financial trading scenarios. The allure of complex cryptography and consensus mechanisms has long faded, replaced by structured product design deeply rooted in financial business expertise. 4) The B2B2C model replaces pure C-end narratives. It has long been proven that the only business model in the crypto space that can serve retail investors well and drive them is the exchange—a centralized, monopolistic, and not-so-cool local overlord model. For ordinary builders who want to innovate around on-chain, choosing to first serve institutions and then let institutions serve retail investors is a smart and wise approach. 5) Compliance has become the threshold for innovation. There was a time when compliance was not the first principle for crypto innovation; it was mostly an afterthought. But under the new trend, obtaining licenses before developing products is more effective than developing products first and then seeking compliance. In other words, compliance has become a new unfair competitive advantage, such as the dimensionality reduction blow dealt to the crypto space by the TRUMP family, who possess government resource advantages.