New Landscape of the Crypto Market: Seeking the Transformation of Alpha and Beta

The current crypto market is undergoing a fundamental transformation, and investors' methodologies for seeking market Alpha and Beta have significantly changed. Here are several key observations:

Traditional finance and on-chain integration become mainstream

1. Stablecoins as Infrastructure: Stablecoins are gradually becoming a core link between traditional finance and decentralized finance. Investors need to pay attention to cross-chain stablecoin liquidity, yield differences, and innovative applications.

2. Crypto assets entering the company's balance sheet: It has become a trend for listed companies to include crypto assets such as Bitcoin and Ethereum in their balance sheets. Finding high-quality projects with potential as "quasi-reserve assets" has become a focus for investment.

3. Innovative Track for Institutions: Decentralized financial protocols, compliant yield products, and on-chain asset management tools designed specifically for institutions will attract significant capital. The industry motto has shifted from "code is law" to "compliance is king."

Reimagining Native Narratives in the Crypto Market

1. Ethereum Ecosystem Revival: As the price of Ether breaks through, the Ethereum ecosystem will usher in a new wave of technological innovation. Zero-Knowledge Proof (ZK) technology may replace the previous Rollup-centric strategy and become the new dominant direction.

2. Competition Among High-Performance Public Chains: The competition among public chains is no longer limited to transaction processing speed, but has shifted towards the ability to attract substantial economic activities. Key indicators include the proportion of total locked value of stablecoins, native yield rates, and the depth of institutional partnerships, among others.

3. Small market cap tokens face challenges: A widespread bull market for small market cap tokens may be difficult to achieve due to insufficient capital momentum. Some tokens may experience a temporary rebound, and these types of projects typically have concentrated chip distribution, active communities, and associations with new concepts such as artificial intelligence or physical assets.

The Market Position of Meme Coins is Rising

1. Capital efficiency advantage: Compared to traditional small-cap tokens, meme coins have become the new favorite for capital due to their fair issuance and high turnover rate, potentially capturing a large portion of the market share of declining small-cap tokens.

2. Attention economy dominance: The influence of opinion leaders, community culture building, and the trend-chasing model remain core competitive advantages, while liquidity distribution still follows the principle of attention.

3. A new indicator of public chain strength: The activity level of the meme coin market may become one of the important criteria for measuring the overall strength of public chains.

In this ever-changing market environment, investors need to adapt to new investment logic, focusing on the integration of traditional finance and the encryption world, as well as emerging market dynamics and indicators.