Is the Bear Market Here? A Sober Reflection from Liquidity Drought to Systemic Crisis in the Industry

I’ve been researching the new trends in the x402 sector these past few days. When I checked the market first thing this morning—damn, it’s another bloodbath. I’ve been holding back, but I still have to say a few things:

Liquidity Dried Up Long Ago

Is this a bear market? Of course it is. After that TRUMP hype wave, liquidity was basically drained. Any occasional mini rallies that followed? That’s just sentiment barely propping things up.

Altcoins Start Off in Debt

Nowadays, altcoins are maxed out in debt status the very day of TGE. Think about it—where did all those diehard holders go? Where are the diligent contributors?

Airdrop hunters are farming en masse, VCs are in a rush to cash out and exit, exchanges are squeezing every bit out in between, and after years of effort, project teams themselves just want to cash in. Everyone’s scrambling to get out, so here’s the question—who’s left to hold the bag?

The MEME Coin Redemption Myth Is Broken

MEMEs were once seen as the savior of the altcoin market. True, they gave retail investors an option to fight back against high-FDV VC coins. But MEMEs—with their zero technical barrier and so-called “fair launch”—are basically just mass-produced on an assembly line.

This stuff can’t possibly become a channel for long-term value capture.

Without the kind of zero-to-one technological innovation that VC coins brought, the MEME boom is just existing funds battling it out PVP style. In the long run? The entire industry will be systematically eroded.

Exchanges Start “Internalizing” to Save Themselves

CEXs used to have a clear role: absorb the spillover effects of on-chain innovation and amplify liquidity.

But after the rise of platforms like Pumpfun, GMGN, and Hyperliquid—with their innovations and wealth-creation effects—exchanges panicked and started “internalizing” to save themselves.

The result? The shovel sellers started trying to dig for gold themselves, undermining the whole gold rush ecosystem.

Builders’ Darkest Hour

How bad is it for project builders right now? Absolutely hellish.

Why are so many projects lining up for TGE like crazy? Why has the market lost patience for product development? Why is the blame for structural imbalance pinned on project teams and VCs?

These questions are too complex for any perfect answer. But the facts are clear—crypto builders and VCs are going bankrupt and leaving; that’s the reality now.

What’s scarier than getting liquidated to zero? The entire industry being gutted, left deserted.

This is turning into a rant, but that’s exactly why I keep emphasizing the need for on-chain innovation.

Our crypto industry is long past its former glory. It’s sick, it’s old, maybe even terminally ill.

Only a truly from-scratch, tech-driven on-chain narrative can reset everything.