The Challenges and Opportunities in the Encryption Industry

Recently, social media has been filled with criticism and mockery of the current state of the encryption industry, including from those who have previously found success in this field. As a practitioner, I believe there is no need to stand on a moral high ground and blame others just because the industry is in a downturn. After all, it is the existence and development of this industry that has created their achievements today.

Currently, the encryption circle is facing a downturn similar to those of 2018 or 2022. This is not only due to price issues, but also because people's confidence in the industry has been shaken. The past two years were seen as years of hope, but now most people scoff at this hope. The main reason is that the much-anticipated "altcoin season" has yet to arrive, coupled with the fact that the industry seems to have failed to nurture new narratives over the past two years, or that some emerging narratives have quickly faded away.

However, what may truly impact the industry are external factors. In recent years, the rapid development of artificial intelligence has captured most investors' attention, and the encryption industry is no exception. It is understood that in the past year, many practitioners, especially developers, have turned to the AI field. This has become the last straw that broke the confidence in the industry.

Nowadays, with the disappearance of the altcoin season, comments about a "lack of new narratives" are on the rise. Coupled with the mad rise of AI, the crypto space seems to be left with nothing but the sighs of practitioners. In addition, the recently emerging "coin stocks" track has also directly diverted the last portion of liquidity.

In the face of these challenges, the encryption circle has once again fallen into a trough. But as the saying goes, without a trough, how can there be a climax? So, where are the opportunities for this industry now and in the future?

First, regarding the altcoin season, although it may not experience a crazy outbreak like in 2017 or 2021, there have still been plenty of niche areas creating wealth myths over the past two years. This trend is likely to continue, and we need to adjust our mindset and expectations.

Secondly, in terms of new narratives, the recently discussed stablecoin is a great example. Whether in the West or the East, stablecoins have become a hot topic. The success of stablecoins may bring revolutionary changes to the industry, much like the launch of Alipay did years ago. It could significantly expand the user base of the encryption circle, truly open up the market, bring long-awaited new users, and usher in the industry's "iPhone moment".

Finally, regarding AI, blockchain is likely to become the native tool for AI, solving the issues of information transfer between machines and the genuine interaction between machines and humans. With the development of AI agents, ensuring secure and reliable communication between machines, which can also be verified by humans, blockchain may be the best solution.

In the face of these changes, we should accept and adapt to the trend with joy, rather than resist or curse it. The encryption industry will not remain in a downturn forever; why not rise to the challenge again and embrace new opportunities?