Every era has its unique market leaders

Recently, many industry insiders have been discussing a well-known market maker, which has sparked reflections on the current trends in the cryptocurrency market. Considering the characteristics of this market cycle and the changes in sentiment, we can observe some interesting phenomena: Is the entire cryptocurrency industry undergoing a simplification and "meme-ification" process from top to bottom? Does the market urgently need a shot in the arm?

1. Simplification and Emotional Release

Looking at the characteristics of this bull market, in addition to the institutional funds entering the market brought by ETFs, investment strategies in other areas are also developing towards "simplification" and "straightforwardness". In short, the market is pursuing a "simple and high-volatility" investment experience, and this trend has reached unprecedented levels. This is specifically manifested in:

• DeFi has been labeled as overly complex, with the idea that the more complex it is, the easier it is to lose money.
• NFTs were once the most imaginative sector, but in this bull market, they have shown almost no signs of a second explosion.

These two former star tracks have performed mediocrely in this round of the market, for a variety of complex reasons. Stagnation of innovation is one aspect, while the loss of user confidence is another significant factor. After experiencing several large project collapses and DeFi security incidents, the digital collectibles held by investors have also lost value. Rebuilding market confidence requires new stimuli, time to settle, and strong catalysts.

This constitutes the unique background of the current bull market, showing extreme polarization characteristics.

Therefore, this round of community-led meme coins has become the protagonist. They are simple and easy to understand, can meet the need for emotional venting, and have high volatility. These characteristics perfectly align with the current market environment.

2. The Role Transformation of Market Makers and Market Polarization

Looking back at the previous market cycle, many market makers who were once regarded as "elites" suffered setbacks in several major events, resulting in a sense of regret. The blind following of certain large market makers by investors has become history, and the market suddenly realizes that the top players in the cryptocurrency industry may be more fragile than previously thought. In this context, some controversial emerging market makers have risen to prominence, known for their aggressive strategies, seemingly playing the role of a stimulant in this special era.

From the perspective of market makers, there are some obvious differences between the cryptocurrency market and traditional financial markets:

• Scale: Compared to traditional financial markets, the operating scale of cryptocurrency market makers is generally smaller.
• Liquidity and Volatility: The cryptocurrency market has lower liquidity but significantly higher volatility.
• Regulation: The regulatory framework for the crypto market is still not perfect, and the relationships between various parties are quite complex.
• Technical requirements: Some market makers need to engage in on-chain operations or DeFi strategies, which requires sufficient technical strength to ensure the security of trade execution.

3. Focus of Controversy

Traditionally, the main functions of market makers include:

1. Provide liquidity: By continuously offering buy and sell depth, ensure that the market always maintains liquidity, allowing investors to trade at any time.
2. Stabilizing prices and promoting price discovery: Market makers smooth market price fluctuations by adjusting quotes, while also driving the price discovery mechanism.
3. Enhance market efficiency: By quickly matching trades, market makers can reduce trading delays and improve overall market efficiency.

It is generally believed that an excellent market maker should have strong capital strength, be able to provide ample liquidity, and make price fluctuations smoother. However, some emerging market makers are known for their high volatility and aggressive strategies; they not only provide market-making services but also directly participate in project investments. This practice often sparks controversy and may even face accusations of market manipulation.

4. Catering to Market Demand

In fact, some controversial market makers have accurately grasped the main emotions and demands of users in this market cycle through the highly controversial method of "giving you what you want," such as launching a series of meme tokens. In the current market environment, this strategy is in a favorable position that takes advantage of the right timing, location, and people.

Although the author has always insisted on long-termism and value investing principles, it has been proven that the correct investment strategy does not mean completely rejecting memes, Ponzi schemes, or any projects with speculative nature. Value investing should not become an excuse for stubbornness, and long-termism should not be elitist. I often see many people with a profound analysis of market situations and issues, which is indeed commendable, but the real heroes are those who can adapt to the changes of each era and keep up with the times.

From this special bull market cycle, some controversial market participants have risen in unique ways. Although their future direction is still unknown, they have undoubtedly left a deep mark on the current market.