The doomsday theory of encryption has been increasing recently. Upon careful consideration, it is indeed difficult to distinguish between going downhill and transitioning from chaos to order, The decrease in popularity and the clear differentiation of projects have led to too many commonalities, causing many investors to have a misconception. There are several characteristics of an industry going downhill: 1. As the number of new users approaches disappearance and usage frequency declines, it leads to internal competition within the industry, rampant advertising commission and other behaviors, and the start of product price wars, resulting in rapid profit squeezing. 2. Innovation stagnates, new narratives and products rapidly decrease, and engineering talent flows out to more promising tracks. 3. Financing has deteriorated in a cliff like manner, with high-quality projects unable to obtain funding or long-term capital, and even unable to maintain high valuation financing, let alone other junk projects. 4. When the systemic reputation collapses and cannot be repaired, one can refer to the asbestos industry. 5. Uncertainty becomes long-term, and most projects no longer choose long-term plans of 3-5 years or more. Short term arbitrage and then re harvesting with new shells. 6. Infrastructure loses funding for maintenance, such as ETH and SOL being completely unattended. If we summarize the above characteristics, it is that the certainty of future cash flows is getting worse and the expectations are getting lower. But the clearest structural change of encryption in 2024-2026 is order and compliance, and we now have: -A stablecoin scale of 300 billion US dollars. -GENIUS Act (stablecoin regulatory framework) in the United States. -MiCA of the European Union. -Hong Kong's HKMA has announced plans to issue the first batch of stablecoin licenses between 2026 and March. -According to official disclosures from Reuters and Tether, USDT has a huge supply and profit scale, and the company is expanding its business territory and compliance narrative (although there is controversy in the community, this is itself a sign of industry maturity). -A large number of ETF channels. Many people mistakenly believe that encryption is on the decline, you can refer to my previous post shanzhai era tweet. The upper level (with a large number of knockoffs and narrative coins) may remain sluggish for a long time, and the post knockoff era will continue until old inventory is cleared. The bottom layer (stablecoins, compliance, clearing, custody, risk control, auditing, infrastructure, etc.) has begun to implement compliance clearly and quickly. There is a huge misconception here that compliance does not kill the wealth effect, and the endless issuance of coins for financing by VC and project parties, as well as the arbitrary listing of exchanges, will completely kill the wealth effect of encryption. This bear market is about completely eradicating these greedy hunters.