Stick with it, find your strengths, and you will be rewarded.
Author: 0xJeff
Compiled by: Deep Tide TechFlow
The year 2025 is filled with unprecedented turmoil and change. We welcomed a U.S. president who allegedly supports cryptocurrency and artificial intelligence. However, the market in 2025 did not see the anticipated bull run; 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 levels seen in 2019-2020 (over 60%), outperforming most coins
Ethereum (ETH) traded at prices similar to those in 2022
The altcoin market was highly fragmented (with 40 to 50 million coins available)
Despite continuous positive news in the industry (such as clearer regulatory frameworks, ETF approvals, corporate adoption of blockchain technology, and institutional investments in BTC, ETH, and altcoins), 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 a mass exodus of practitioners and investors.
So, for those who remain steadfast in the crypto space, here are the key points to understand before 2026 arrives:
Let’s dive deeper ↓
Prediction Markets: Multifunctional Trading Tools
Prediction markets became one of the fastest-growing verticals in 2025—weekly nominal trading volume first reached $3.8 billion, with Polymarket, Kalshi, and Opinion becoming the dominant platforms in this field.
Despite ongoing debates about whether "prediction markets are equivalent to gambling," the U.S. Commodity Futures Trading Commission (CFTC) views them as event contracts or binary options based on real-world event outcomes. The CFTC's innovation-friendly stance, coupled with increased market demand for betting/prediction, drove rapid growth in prediction market trading volume in 2025.
From the perspective of trading tools, prediction markets exhibit 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 them as hedging tools (by holding spot positions elsewhere), or earn profits and potential airdrop rewards by executing delta-neutral strategies (evenly distributing "yes/no" shares in the market).
Cash-Secured Puts and Covered Calls
These two options strategies are well-suited for investors looking to manage their investments more conservatively.
Instead of directly buying or quickly selling altcoins when prices drop, you can generate cash flow by selling call or put options. If the price reaches a certain target, you can choose to buy low or sell your altcoins; if the price does not reach the target, you will recover your principal.
This strategy is one of the best ways to generate high annual percentage returns (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 immediately receive the option premium when you sell call or put options.
Narrative Fatigue + Equity vs. Tokens = Return to Fundamentals
The speed of market narrative rotation has significantly accelerated, with previously hot topics lasting for weeks or even months now only lasting a few days at most.
The crypto community (CT) is shifting from chasing narratives to focusing on real fundamentals (such as user numbers, revenue, and growth metrics). The market is more inclined to assess the metrics of real businesses and clarify the value transfer relationship between businesses and tokens.
However, this year, in the battle between equity and tokens, we witnessed too much chaos, especially in the mergers and acquisitions (M&A) space:
Pumpfun acquired Padre (a trading tool), leaving Padre's token holders completely in the dark. After the acquisition announcement, the PADRE token 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 PADRE holdings value before the acquisition announcement.
Circle acquired Axelar but similarly ignored Axelar's token holders. After the acquisition, the AXL token saw a significant drop. This is recent news, and what will happen next remains unknown, but the community is already furious (which is understandable).
The debate between equity and token holders is intensifying, 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, and no venture capital (VC) or private placement allocations. Additionally, it introduced mechanisms such as performance-based team unlocks and potential fund recovery features.
This structure grants token holders true ownership, control, and alignment of interests, effectively addressing issues such as project teams running away, token dumping, opaque operations, and improper acquisitions.
Colosseum (an independent organization accelerating the Solana ecosystem) recently launched "STAMP" (Simple Token Protocol, Market Protection Mechanism), a new investment contract designed to merge private venture capital 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 projects launching through MetaDAO's ICO. Many launched projects have performed strongly—such as Umbra, Omnipair, and Avici—showing robust demand during their fundraising periods, with their tokens significantly outperforming the market in 2025.
Through the MetaDAO model, the importance of token holders has been elevated; they truly have a voice and actual ownership of the projects. 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 intertwine with upcoming trends…
The Rise of Tokenized Securities
On-chain liquidity is constrained, and market participants' focus is gradually shifting towards fundamentals, revenue, buybacks, and other real values. Meanwhile, companies are beginning to adopt stablecoins, and more institutions are investing capital into the crypto space. Recently, tokenized securities have become simpler and more feasible than ever, especially for regulated institutions.
On December 11, 2025, the tokenized securities sector welcomed a significant regulatory breakthrough. The U.S. Securities and Exchange Commission (SEC) issued a "No-Action Letter," clearly stating that it would not take enforcement action against DTCC (Depository Trust & Clearing Corporation) subsidiary DTC's pilot tokenization program. The pilot includes the tokenization of Russell 1000 index constituents, U.S. Treasury bonds, and major ETFs.
This mechanism will achieve 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 in 2026, we will see more tokenized securities projects, which also implies an increase in demand for tokenized stocks, accelerating the integration of traditional finance (TradFi) and decentralized finance (DeFi).
Consumer-Grade Crypto Products and Perpetual Contracts Become Crypto Core
In 2025, consumer-grade crypto products and perpetual contracts (Perps) became core hotspots in the crypto industry:
Pumpfun peaked in 2024-2025
Virtuals adopted a similar model but incorporated a new AI smart agent narrative
Zora also made similar attempts in the content token space, gaining support from Jesse
Collectibles, fantasy football, and prediction markets were 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 prediction markets) to earn profits while enjoying themselves.
Crypto itself is like a game, and trading is a form of entertainment. Therefore, consumer-grade products that are novel and effectively combine both aspects tend to stand out.
Perpetual contracts (Perps) also have similar appeal, as they allow users to make precise bets on asset price fluctuations.
If you pay attention to the key metrics of prediction markets and perpetual contracts, you will find that both reached all-time highs (ATH) in 2025. These figures seem to be "shouting" that the product-market fit (PMF) in the crypto space has emerged: weekly nominal trading volume in prediction markets reached $3.8 billion, while weekly trading volume in perpetual contracts soared to $340 billion (monthly trading volume of $1.3 trillion, setting a new historical record).
This is why people are so eager to participate in platforms like Hyperliquid, Lighter, Aster, Polymarket, and Opinion. Huge activity, massive demand, and significant capital flow directly translate into higher valuations and more airdrop rewards.
Consumer-grade crypto products are also full of potential, but in 2025, we have yet to see truly sustainable consumer-grade crypto products. Sportsdotfun (SDF) showed good growth momentum early on and is currently undergoing community financing on Legion and Kraken. While the future of this sector remains uncertain, the outlook appears exciting.
From this, we can learn that if you want to find your strengths in this market, you should either invest in platforms (such as prediction markets, perpetual contracts, consumer-grade crypto products) or actively participate in these categories:
Learn how to trade perpetual contracts
Make predictions in prediction 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 "Narrator"
That's right, now The Wall Street Journal (WSJ), Silicon Valley, and various tech practitioners are starting to embrace the role of "Narrator." Many startups are opening up "Narrator" positions for recruitment.
In the crypto space, this has long been a common phenomenon. We have "Yappers," key opinion leaders (KOLs), and narrators who have been discussing projects and helping to build the crypto community for years (even before Kaito introduced the concept of "Yappers").
However, it now seems that the whole world is beginning to realize the importance of having the right narrative and conveying brands, products, and positioning in the appropriate way.
Yet, the role of the narrator goes far beyond that of a "Yapper." Currently, in the crypto space, many "Yappers" simply copy and paste content to "boost their presence," rather than genuinely trying to learn and understand the topics they discuss.
This creates 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 in broader fields.
Those skilled in storytelling can expand their brand influence and ultimately gain the freedom to choose: they can opt for independent development or be "acqui-hired" by startups and projects that align with their brand.
In 2025, we have already seen successful cases of this dynamic. For example, Kalshi recruited well-known figures from the crypto community, while some crypto projects successfully shaped their brand image and attracted more users through close partnerships and ambassador programs (such as sharing badges).
If you excel at storytelling, this era is your stage!
Core Summary
The crypto market of 2024-2025 is like playing a game of "Monopoly";
Whereas 2026 will resemble a stage for corporations, startups, and suited financial professionals—less of the "Monopoly" style gameplay, fewer easy money-making opportunities, and less reliance on the narrative of "rising numbers."
The future will focus more on fundamentals, aligned interests, value accumulation, and compounding leverage. If you cannot cultivate a true competitive advantage, even if you are an OG (original gangster), you may ultimately become someone else's "bag holder."
Your competitive advantage can be any of the following:
Having a clear mind, not blinded by delusions;
Being good at telling compelling stories;
Creating high-quality products that people truly need;
Insight into trends;
Rational trading, not swayed by emotions.
Stick with it, find your strengths, and you will be rewarded.
Thank you very much for reading! If you want to know my thoughts on some projects and more candid ideas, you can check out my The After Hour column 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 their own due diligence based on their financial situation, investment goals, and risk tolerance (not covered in this article) before investing. This article does not constitute an offer or invitation to buy or sell the assets mentioned.
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