The Awakening of the Crypto Market in 2025: From Bubble Burst to Value Rebuilding Competition Clues

The Market Is Undergoing a Necessary Cleanup

The crypto industry in 2025 faces a severe test. Past reckless expansion has left behind a multitude of low-quality projects—overhyped with no real application, unlimited token issuance, and worthless “air coins.” These “zombie projects” drain market liquidity but never reinvest funds into ecosystem development. Many participants begin to question: Is this still the future of innovative finance? Or is it just a carefully crafted scam?

What’s most disappointing is that most airdrops ultimately become “pump-and-dump” schemes, with tokens serving as a cash-out window for insiders and teams, while long-term builders and ordinary holders suffer losses. Many altcoins have never recovered to their all-time highs, and market sentiment has plummeted.

But this cleansing process may be exactly what’s needed.

A Few True Builders Shine Bright Amidst the Murk

However, 2025 also proves one thing: Genuinely valuable projects are still thriving. Platforms like Hyperliquid, MetaDAO, Pump.fun, Pendle, and FomoApp demonstrate the true potential of the crypto industry through actual operations and revenue generation. These projects don’t rely on storytelling for funding but speak through real users and cash flow.

This competitive trend tells us: survival favors projects that solve real problems and create real value.

Stablecoins, Perpetual Contracts, and Tokenized Assets Become the Three Pillars

Looking back at 2025, three areas have become industry protagonists:

The Explosion of the Stablecoin Ecosystem

Driven by friendly regulatory policies, stablecoins have moved from the periphery to the center. Large-scale capital inflows from traditional finance, combined with advantages like cross-border payments, transparent clearing, and 24/7 liquidity, have resulted in net inflows exceeding $100 billion. Even more noteworthy is that yield-bearing stablecoins(YBS) have doubled their share of the total supply—meaning holding stablecoins is no longer static but can generate real returns.

The Rise of Perpetual Contract Trading

On-chain perpetual contract trading volume has surged from tens of billions to hundreds of billions of dollars daily, becoming the fastest-growing sector. New DEXs like Hyperliquid, with efficient mechanisms, buyback incentives, and airdrop competitions, are even beginning to threaten the dominance of traditional centralized exchanges. What does this indicate? The market is redefining the nature of trading.

Institutional Entry into Tokenized Assets(DAT)

DAT, as a gateway for traditional finance to enter the crypto world, surpassed $137 billion in total positions in 2025. Although a significant bubble correction followed, this phenomenon sends a key signal: capital structures are undergoing profound changes.

What the Market Is Telling Us

This cycle has taught the industry three lessons:

1. Real-world applications are king — On-chain applications must solve genuine problems, not create demand out of thin air.
2. Returns are more convincing than narratives — Investors are willing to pay for real income, value distribution, and sustainable mechanisms.
3. Differentiation determines life or death — L1 and general-purpose projects without unique competitive advantages will be ruthlessly淘汰.

Opportunity Map for 2026

Looking ahead, four areas will become new competitive frontiers:

Mainstreaming of Prediction Markets

Polymarket and Kalshi have broken sales records, attracting broad participation from institutions and retail investors. With $POLY listing and distribution channels expanding, prediction markets are poised to become the next center of centralized narratives.

Accelerated Penetration of Stablecoin Payments

The integration of giants like Visa, Stripe, and Mastercard is bridging the last mile between Web3 and Web2. For emerging markets, this means enormous financial inclusion potential.

Decisive Role of Mobile Experience

Growth in social trading, mobile wallets, and native mobile DApps shows that new users are more accustomed to engaging with Web3 via smartphones. This will reshape application design logic.

Widespread Adoption of Real Income Models

Currently, over 60 protocols generate monthly revenues exceeding one million USD. As more projects introduce mechanisms like revenue buybacks, income sharing, and token value anchoring, the entire industry will enter a more mature phase.

Final Thoughts

The winners are not those who tell stories but those with revenue, user base, and value flow mechanisms. The market is transforming from a “gambling paradise” into a “value factory.” This process will be painful but is crucial for the long-term health of the industry. The clues for 2026’s competition are written in these real numbers.