Why are more and more people choosing to leave the Web3 industry recently?

Author:Blockchain Knight

"When the tide recedes, we know who is swimming naked." Using Buffett's words to describe the current Crypto market is probably the best description. In the past period of time, we have always heard or seen some news about XXX "retreating the circle". This kind of news does not come from complaints or complaints, but has become the current expression of the industry.

As for why these people chose to leave this industry, the author roughly followed it, and there are only the following main reasons.

First of all, the most common reason is that due to the bleak market conditions in the past period or the changes caused by the market conditions, some people have to temporarily leave this industry and look for "rebirth"; secondly, in the past one or two years, Web3 has been in a "pathological" growth that is not favored, and some value creators choose to leave this field because they cannot see real value growth; in addition, some people have seen the rise of AI and believe that Web3 has become a past tense and will pursue a new blue ocean market.

Of course, the above reasons are obvious when deducting from individuals, but all these reasons cannot be changed from partial to overall. After all, most people in the market still choose to stay waiting and see or continue to build, because this industry that has been developing for more than ten years is not the first time that this dilemma has been facing such a dilemma.

It’s just that some people who leave this industry may be some more influential KOL, so it seems that it will affect the mentality of many people. But the author believes that this stage is the time to truly test Builder. Putting aside these superficial impetuousness, we need to see more things that are changing or have not been changed in the industry. Here we will briefly describe it from the following three aspects.

Has the Web3 industry entered the red ocean from the blue ocean?

According to a research report released by BTC financial services company River in March, only 4% of the world's population currently holds BTC, of ​​which the highest proportion of BTC is in the United States, with about 14% of people holding BTC. From the perspective of development stage, the current BTC adoption rate is equivalent to the Internet in 1990 or mobile social in 2005.

Through this simple data analysis, we can see that the current adoption rate of digital assets led by BTC is still in its early stages, far from the so-called red ocean market. Even from the perspective of industry influence, traditional financial giants like BlackRock and Fidelity have just entered the market. Just imagine, will they come in as a takeover?

From logic and data analysis, we must admit that if digital assets are the future development direction or Web3 is the intersection of the Internet and AI, then the greatest possibility of this game is that it has just run from the starting point to the midpoint, and there is still a long way to go.

Is there only the exaggerated MEME narrative left in the Web3 market?

Of course, for the value creation of many industries, the most criticized thing in the past year is naturally the popularity of MEME, because MEME has attracted too much attention, and because MEME has caused many people to enter this industry to experience a cleanup and even lose confidence in the industry. But as the author said in Weekly before, MEME is in evolution, and after experiencing a bubble, new recovery and growth may be needed, and this growth may bring value to the industry.

Secondly, we should not only see some superficial hot spot changes. Builders are still building, and value projects are still looking for their own breakthroughs. Through the changes in the number of active developers over the past year, we can see that despite the decline, it is still at a high level.

Although the market seems to be deserted and there is a lack of breakthrough narratives like DeFi in the previous cycle, looking back at the present, looking back at the past is always full of opportunities, while looking back at the present, looking back at the future is less likely to be a bit in mind. But isn’t this the law of the development and change of anything?

Even if we look back at the Web3 industry in 2018, it is still extremely bad, even dozens of times worse than now, but these did not hinder the subsequent explosion. We need time and patience to wait for the process from quantitative change to qualitative change.

Will the Web3 market continue to "fall"?

Finally, it is naturally about the price. More than 90% of people will feel that this cycle is very different from the previous cycles, and there is not much similarity. Therefore, many predictions of "carving a boat and seeking a sword" have become cannon fodder, but if the concept of the cycle is still valid, then we are most likely to be in this cycle, but there is no longer the crazy general rise in the past.

Recently, due to GS problems, US stocks plummeted, with a market value of nearly US$6.5 trillion evaporated in two days. The three major U.S. stock indexes have recorded the largest two-day decline and the largest weekly decline since March 2020, which has also led to a relatively extreme market trend in the global financial market. Whether this wave can change in the short term needs to be carefully viewed.

So, when BTC has retreated nearly 30%, and when the financial market encounters major changes once in a few years, can the entire Crypto market remain safe? Perhaps this is a difficult question to answer.

But Fan Li, our earliest economist, also known as the "God of Wealth", has a classic saying that is worth savoring, "The highest value is the lowest, and the lowest value is the lowest; the lowest value is the lowest value; the lowest value is like dirt, and the lowest value is like pearls and jade." Perhaps now we are in the delicate moment of "seeing everything as dirt".

Will BTC eventually reach $500,000 each? It sounds like a joke to say that BTC will reach 1 million yuan 7 years ago, but now it seems that it is not far away. You have to face reality when you live in the present, but you have to remain cautious and optimistic in the future. You have been on the road and always build it.