Original Author: 0xJeff
Original Translation: Shenchao TechFlow
The year 2025 was filled with unprecedented turmoil and change. We welcomed a U.S. President who is reportedly supportive of cryptocurrency and artificial intelligence. However, the market in 2025 did not usher in the anticipated bull run; instead, it became a year of "slaughter" for the entire industry.
- Most altcoins experienced a plunge of 80%-99% in 2025
- Bitcoin's market share returned to 2019-2020 levels (over 60%), outperforming most cryptocurrencies
- Ethereum (ETH) traded at prices similar to those in 2022
- The altcoin market was highly fragmented (with 40 to 50 million types of coins in circulation)
- Despite continuous positive news within the industry (such as clearer regulatory frameworks, ETF approvals, corporate adoption of blockchain technology, institutional investments in BTC, ETH, and altcoins), the stock market's performance in 2025 completely crushed the crypto market
Despite the pain and turmoil, 2025 was still seen by many as a year of "maturation" for the industry, but it also witnessed a mass exodus of practitioners and investors.
So, for those who remain steadfast in the crypto space, here is the key content you must understand before 2026 arrives:
Let's dive in ↓
Prediction Markets: Versatile Trading Tools
Prediction markets became one of the fastest-growing verticals in 2025—weekly nominal trading volume reached $3.8 billion for the first time, with Polymarket, Kalshi, and Opinion emerging as the dominant platforms in this field.
Despite ongoing debates about whether "prediction markets are equivalent to gambling," the U.S. Commodity Futures Trading Commission (CFTC) regards them as event contracts or binary options based on real-world event outcomes. The CFTC's innovation-friendly stance, coupled with increased market demand for betting/prediction, drove the rapid growth of prediction market trading volume in 2025.
From a trading tool perspective, prediction markets have demonstrated great flexibility. They can be seen as a more user-experience-optimized option tool (though liquidity remains a limitation).
You can use them for leveraged trading in any market, choose "Yes/No" directional bets, use them as hedging tools (by holding spot positions elsewhere), or earn yields and potential airdrop rewards by executing delta-neutral strategies (evenly distributing "Yes/No" shares in the market).
Cash-Secured Puts and Covered Calls
These two options strategies are well-suited for investors looking to manage their investments in a more conservative manner.
Instead of directly buying altcoins during price drops or quickly selling them, you can generate cash flow by selling call or put options. If the price reaches a certain target, you can choose to buy the dip or sell your altcoins; if the price does not meet the target, you get your principal back.
This strategy is one of the best ways to generate high annual percentage yield (APR) for your altcoins or stablecoins.
The only caveat is that your principal will be locked for a period (typically 3-5 weeks), but you receive the option premium immediately when selling the call or put.
Narrative Fatigue + Equity vs. Tokens = Return to Fundamentals
The rotation speed of market narratives has accelerated significantly. What used to last for weeks or even months now fizzles out in a matter of days.
The crypto community (CT) is shifting from chasing narratives to focusing on real fundamentals (e.g., user numbers, revenue, growth metrics). The market is increasingly inclined to evaluate metrics of real businesses and clarify the value transfer relationship between the business and its token.
However, this year, we witnessed too much chaos in the tug-of-war between equity and tokens, especially in the mergers and acquisitions (M&A) space:
- Pumpfun acquired Padre (a trading tool) but completely left Padre's token holders in the dark. After the acquisition was announced, the PADRE token plummeted by 50%-80%, sparking strong backlash from the community. To quell the discontent, Pumpfun promised to airdrop PUMP tokens based on the pre-announcement value of PADRE holdings.
- Circle acquired Axelar but similarly ignored Axelar's token holders. After the acquisition, the AXL token fell sharply. This is recent news, and what happens next remains unknown, but the community is justifiably furious.
The debate between equity and token holders is intensifying, leading us to a deeper issue......
Market-Governed Organizations and Ownership Tokens
MetaDAO launched a fair, transparent, and manipulation-resistant ICO launch platform featuring high circulation, a relatively low fully diluted valuation (FDV) structure, and no venture capital (VC) or private allocation. It also introduced mechanisms such as performance-based team unlocks and potential fund recovery features.
This structure grants token holders genuine ownership, control, and aligned interests, effectively addressing issues like project abandonment, token dumping, backroom deals, and improper acquisitions.
Colosseum (an independent accelerator for the Solana ecosystem) recently introduced "STAMP" (Simple Token Agreement with Market Protection), a new type of investment contract designed to merge private VC financing with public MetaDAO ICOs, ensuring investor rights and aligning with MetaDAO's on-chain governance.
The MetaDAO model has given rise to a new category of "ownership tokens"—projects launched via MetaDAO ICOs. Many launched projects have performed strongly—for example, Umbra, Omnipair, and Avici saw high demand during fundraising, and their tokens significantly outperformed the market in 2025.
Through the MetaDAO model, the importance of token holders is elevated; they truly have a voice and actual ownership of the project. Project revenues and fees are no longer directed to equity holders but directly benefit token holders.
The trend of market-governed organizations and ownership tokens is likely to continue into 2026 and will intertwine with the next trend......
The Rise of Tokenized Securities
With limited on-chain liquidity, market participants are gradually shifting their focus to fundamentals, revenue, buybacks, and other tangible values. Meanwhile, businesses are adopting stablecoins, more institutions are allocating capital to crypto, and recently, tokenized securities have become simpler and more feasible than ever, especially for regulated institutions.
On December 11, 2025, the tokenized securities space achieved a significant regulatory breakthrough. The U.S. Securities and Exchange Commission (SEC) issued a "No-Action Letter" stating it would not take enforcement action against DTCC's (Depository Trust & Clearing Corporation) subsidiary DTC's pilot program for tokenizing securities. The pilot includes tokenizing Russell 1000 index constituents, U.S. Treasuries, and major ETFs.
This mechanism, during the pilot period (starting in the second half of 2026 and lasting three years), enables compliant centralized tokenization operations via DTC, directing activities to regulated infrastructure rather than fully decentralized alternatives.
This means that from 2026 onward, we will see more tokenized security projects, increasing demand for tokenized stocks and accelerating the convergence of traditional finance (TradFi) and decentralized finance (DeFi).
Consumer Crypto Products and Perpetuals as Crypto Core
In 2025, consumer crypto products and perpetuals (Perps) became core hotspots in the crypto industry:
- Pumpfun peaked in 2024-2025
- Virtuals adopted a similar model but infused it with a new AI smart agent narrative
- Zora also attempted something in the content token space, backed by Jesse
- Collectibles, fantasy football, and prediction markets gained massive popularity in 2025
These are consumer-oriented products that allow both crypto-natives to have fun and non-crypto users (e.g., prediction market participants) to earn while enjoying themselves.
Crypto itself is like a game, and trading is a form of entertainment. Thus, novel consumer products that combine the two effectively tend to stand out.
Perpetuals have a similar appeal, as they allow users to make precise bets on the rise and fall of asset prices.
If you look at key metrics for prediction markets and perpetuals, both hit all-time highs (ATH) in 2025. The data seems to "shout" that product-market fit (PMF) has been found in crypto: prediction markets reached a weekly nominal trading volume of $3.8 billion, while perpetuals hit a weekly trading volume of $340 billion (monthly volume of $1.3 trillion, an all-time high).
This is why people are so eager to participate in platforms like Hyperliquid, Lighter, Aster, Polymarket, and Opinion. Huge activity, massive demand, and significant capital flows directly translate to higher valuations and more airdrop rewards.
Consumer crypto products also hold potential, but in 2025, we haven't seen truly sustainable ones yet. Sportsdotfun (SDF) showed good early growth and is currently conducting community fundraising on Legion and Kraken. While the future of this space is uncertain, the prospects are exciting for now.
The lesson here is that if you want to find your edge in this market, either invest in the platforms (like prediction markets, perpetuals, consumer crypto products) or actively participate in these categories:
- Learn how to trade perpetuals
- Make predictions in prediction markets
- Use consumer crypto products
Through these practices, you can better understand the market and find your competitive advantage. Otherwise......
You Can Become a "Storyteller"
Yes, now The Wall Street Journal (WSJ), Silicon Valley, and tech professionals everywhere are enthusiastic about the role of the "Storyteller." Many startups have opened job postings for "Storytellers."
In crypto, this has long been commonplace. We have "Yappers," key opinion leaders (KOLs), and storytellers who have been discussing projects and helping build crypto communities for years (even before Kaito coined the term "Yapper").
But now, it seems the whole world is realizing the importance of having the right narrative and conveying the brand, product, and positioning appropriately.
However, the role of a storyteller goes far beyond "yapping." Currently in crypto, many "yappers" simply copy and paste content to "farm engagement" rather than trying to truly learn and understand what they're discussing.
This creates an opportunity for those who genuinely understand the industry, possess expertise, or are curious to learn—whether within the crypto community (CT) or beyond.
Those skilled in storytelling can, by expanding their personal brand, ultimately have the freedom to choose: they can go independent or be "acqui-hired" by startups and projects that align with their brand.
In 2025, we've already seen successful examples of this dynamic. For instance, Kalshi recruited well-known figures from the crypto community, and some crypto projects successfully shaped their brand and attracted more users through close partnerships and ambassador programs (like sharing badges).
If you're good at telling stories, this era is your stage!
Core Summary
The crypto market in 2024-2025 was like playing a game of Monopoly;
2026 will be more like the domain of enterprises, startups, and suit-wearing finance professionals—less Monopoly-like gameplay, fewer easy money opportunities, and fewer narratives driven solely by "number go up."
The future will focus more on fundamentals, aligned interests, value accumulation, and compound leverage. If you cannot develop a real competitive advantage, even if you are an OG (original gangster), you might end up being someone else's "exit liquidity."
Your competitive advantage can be any of the following:
- Having a clear mind, not clouded by delusion;
- Being skilled at telling good stories;
- Building quality products that people actually need;
- Spotting trends;
- Trading rationally, not swayed by emotions.
Persist, find your edge, and you will be rewarded.
Thank you very much for reading! If you want to know my thoughts on some projects and more straightforward opinions, you can check out my column The After Hour on Substack.
Disclaimer
This article is for informational and entertainment purposes only. The views expressed are not investment advice or recommendations. Readers receiving this article should conduct their own due diligence before investing, based on their financial situation, investment objectives, and risk tolerance (not covered herein). This article does not constitute an offer or solicitation to buy or sell the assets mentioned.
