How to Break Narrative Exhaustion in the Post-"Centralization Co-optation" Era?
In the conclusion of The Evolution of Crypto Investment Cycles (Part 1): Rebuilding a New World, after waves like Ethereum-led ICOs, public chain investments, DeFi, and GameFi, crypto venture capital entered a "painful transition period" where NFTs staged their "final dance" before a rapid decline. This phase was marked by unforeseen black swan events—from LUNA's collapse and 3AC's implosion to FTX's sudden downfall and Genesis' bankruptcy—alongside relentless regulatory crackdowns by U.S. agencies like the SEC and CFTC.
During the bear market, dwindling liquidity forced the industry to rely on cyclical "sector rotations." Bitcoin and L2 ecosystems emerged as rare bright spots, laying groundwork for later milestones like Bitcoin and Ethereum spot ETFs. Yet, by 2024—15 years after Bitcoin's genesis block and its fourth halving—crypto's original vision of a "peer-to-peer electronic cash system" seemed increasingly distant. The once-celebrated ideals of sovereign individualism, network states, and decentralization faded, replaced by an inexorable march toward "centralized co-optation."
Following Part 1's recap of 2016–2021, this article analyzes key events and trends from 2022–2024, offering insights into the current cycle's trajectory.
TL;DR (Key Takeaways)
- NFTs marked Ethereum’s "last glory," with Moonbirds/Bored Ape Yacht Club (BAYC) peaks in May 2022 signaling the end of an era.
- Cascading collapses (LUNA/UST, 3AC, FTX) turned crypto into a "domino effect of disasters."
- Post-crisis, Bitcoin ecosystems and Meme coins became new growth drivers.
- Bitcoin/ETH ETFs achieved regulatory milestones—or epitaphs?
- Overcoming path dependency: anomaly detection, internal "shadow factions," and external advisory.
- Active 2022–2024 investors: exchange VCs, gaming-focused funds led the charge.
- Macro trends: multi-chain dominance, Western capital’s ascendancy, and the primacy of liquidity.
The Last Crypto Boom: The NFT Frenzy
By 2022, NFTs remained the undisputed hotspot. Celebrities like Jay Chou and Edison Chen launched short-lived projects, while Azuki’s anime-style art became a cultural phenomenon. Decentraland hosted its "first Metaverse Fashion Week," attracting luxury brands, and StepN’s "Move-to-Earn" sneaker NFTs went viral. OpenSea peaked with a $13.3B valuation after a $300M Series C.
👉 Explore how NFT platforms adapt post-boom
Yet, beneath the surface, LUNA, UST, 3AC, and FTX loomed as impending catastrophes.
The Darkest Year: A Chain Reaction of Collapses
- May 2022: Terra’s UST/LUNA death spiral wiped out billions overnight.
- June–July: Celsius and 3AC imploded, triggering Voyager Digital’s bankruptcy.
- November: FTX’s collapse erased $32B in value, eroding trust industry-wide.
- Market lows: BTC plunged to ~$15,800; ETH to ~$1,090.
Despite this, Q1 2022 set a record with $10B+ in funding, driven by L1/L2 projects like Near, Polygon, and Aptos. Ethereum’s PoS transition in September marked another pivotal moment.
The Crypto Revival: Bitcoin Ecosystems and Meme Coins
2023’s recovery was fueled by Bitcoin’s "old-tree-new-blossom" phase:
- Ordinals/BRC-20 protocols sparked a "inscription craze," extending to chains like Solana and AAVX.
- Meme coins (PEPE, BOME) revived speculative fervor, with Solana’s Pump.fun driving $90M+ in revenue.
👉 Why Meme coins dominate cycles
Infrastructure investments surged, e.g., Babylon ($70M Series A) and LayerZero ($30B valuation). AI-crypto hybrids like MyShell and Worldcoin gained traction.
Regulatory Milestones: Progress or Tombstones?
- January 2024: SEC approved Bitcoin spot ETFs after years of resistance—yet prices stagnated as focus shifted to ETH ETFs.
- July: ETH ETF approval failed to reverse market downturns amid geopolitical tensions.
Key insight: Crypto’s deepening ties to traditional markets dilute its "hedge" appeal, signaling a loss of autonomy.
Breaking Path Dependency
Investment traps:
- "Next Unicorn" obsession: Over-reliance on past successes (e.g., Solana backers chasing "the next SOL").
- Siloed thinking: Ignoring跨界 innovations (e.g., Telegram’s Tap2Earn via NotCoin).
Solutions:
- Anomaly detection: Identify outliers (e.g., TON’s unexpected rise).
- Internal "shadow factions": Empower autonomous teams to experiment.
- External advisors: Fresh perspectives mitigate blind spots.
The Rainmakers: Active Investors (2022–2024)
- Top 2022 investors: Coinbase Ventures, Animoca Brands, a16z.
- 2023–2024 shifts: Bitcoin-focused funds (OKX Ventures, ABCDE), gaming/SocialFi bets (Farcaster’s $1.5B round).
Western capital now dominates upstream investments, while Asian players pivot to mass adoption (e.g., TON ecosystems).
Macro Trends: Multi-Chain Worlds and Western Dominance
- 公链格局: Ethereum → Solana/Aptos/Sui (Rust/Move languages challenge EVM hegemony).
- 话语权: East (mining/exchanges) cedes to West (VCs/stablecoin issuers/TradFi integration).
Conclusion: Liquidity is the linchpin—asset distribution, tech innovation, and resource allocation all serve its flow. Meme coins’ PVP markets and DeFi’s resilience underscore this truth. As the Fed’s policies loom large, crypto’s next chapter hinges on adapting to liquidity’s eternal reign.
Acknowledgments: Odaily’s Mandy, editor Ark, and YBB Capital’s Erin. Special thanks to source materials cited here.