Editor's Note: This article delves into the shifts in the crypto market, particularly the growing fatigue among retail users. It highlights the transition from a venture capital (VC)-dominated market at the beginning of 2024 to the meme coin frenzy. While meme coins initially offered a fairer playing field for retail investors, they eventually became overly speculative, worsening market conditions. Retail users, tired of losses, face a fast-paced and competitive market. The article emphasizes the importance of finding a new balance and calls for more focus on projects with real utility and fair distribution mechanisms.

Below is the original content (edited for clarity and readability):

As Kaito.ai pointed out, the term "fatigue" saw a significant increase in mentions on Crypto Twitter in the last two weeks of January 2025.

This cycle is different from previous ones—more challenging, even surprising traders who have experienced two or three cycles before. The market is evolving: narratives change faster, attention has become the scarcest currency, and increasing regulatory scrutiny and political involvement in crypto have introduced new variables.

Retail investors have missed out on opportunities for too long. Every time it seems like the goal is within reach, the market's rules change faster than before. In the 2021 cycle, we saw venture capitalists (VCs) achieving exponential returns compared to retail investors who had no access to private investment opportunities.

This trend continued until around 2023, when projects like TIA and DYM launched, marking the end of retail investors' disillusionment with VC-driven extraction mechanisms.

What was the most rational consequence of this? A movement to shift power dynamics.

The long-known "meme coin" narrative gained traction as VCs ran out of private筹码 to dump on uninformed buyers. This initially benefited retail investors, who found a more level playing field. However, the narrative became oversaturated, and users' attention spans shortened further. Let’s examine how the market landscape evolved and where it might be heading, while trying to explain why people feel so tired.

It feels like a long time ago, but before the AI hype and meme coin frenzy, the mainstream play for retail investors was airdrops. This trend was kickstarted by Arbitrum and other Layer 2 airdrops. Retail users saw the potential of earning airdrops by experimenting with new protocols and chains, turning airdrops into a business. Companies offering "airdrops as a service" emerged.

However, the dream turned into a nightmare when these projects began releasing their tokenomics. Users were deeply disappointed: all their efforts resulted in almost nothing. One of the most controversial launches was Scroll, a ZK-EVM Layer 2.

After over a year of ecosystem promotion, Scroll's airdrop was a letdown, with 5.5% of SCR supply allocated to Binance instead of the community.

Moreover, most of these tokens had very low circulating supplies (circulating supply / total supply), with significant portions allocated to VCs. Another topic of discussion was TIA and DYM, where the narrative revolved around staking these tokens in hopes of future ecosystem airdrops.

Spoiler alert: those airdrops never happened, and the token prices only declined (see DYM's chart below).

After the VC era ended, users had to find a new playbook, which they discovered through muststopmurad and his "meme coin supercycle."

For retail investors, meme coins seemed like the closest thing to an equal opportunity in the market—until they weren’t. Prices surged, Trump was elected, and it felt like we were heading to the moon.

But suddenly, liquidity dried up, market attention shifted elsewhere, and all your meme coins crashed during the market correction.

Meanwhile, insiders who had early access to these coins also had the chance to dump their holdings. Retail investors ended up in an even worse position than during the VC coin era.

What’s left now? Increased risk-taking, shorter attention spans, further fragmented liquidity, and attempts to understand past mistakes through more gambling disguised as "trading."

Pump.fun is a symptom of this market direction.

After losing out to VCs and now traumatized by the Pump.fun arena, users hope their next 100x gain will make up for previous losses. The market has changed forever, and the new playbook reflects this.

Market rotations are shorter and faster. In previous cycles, you could hold positions for weeks, but now, you can only hold for days or hours. New projects suck up all the liquidity: attention is scarce, and everyone is playing the same game.

Political and regulatory influences are growing: this was evident in the launch of TRUMP, highlighting how external events can have an unprecedented impact on the market.

Unfortunately, once again, retail investors are lost in this game, with many tokens resembling the capital extraction mechanisms they’ve become all too familiar with.

In contrast, Hyperliquid’s launch brought attention to community-driven airdrops and distributions. Over 31% of the airdrop was allocated to the community, and the token price has risen over 7x since launch. Hyperliquid proved that fair launches are possible.

However, not every project can replicate this model, as running a project like Hyperliquid for a long time incurs significant costs.

These phases highlight two extremes:

1. Excessive Power in the Hands of VCs: Retail investors couldn’t participate in private rounds and were left as exit liquidity.

2. Unrestricted Meme Coin Access: This led to a player-vs-player market, worsening overall market conditions.

Both have the same consequence: retail investor dissatisfaction and a need for balance and stability.

Here are some possible directions for the future:

• A Return to Utility: Less focus on meme coins, more on projects with real utility.

• Less Value Extraction, More Value Creation: Avoid zero-sum games.

• Fair Launches: Inspired by Hyperliquid.

• New Approaches to Protocol Marketing and Token Launches: Leveraging tools like Kaito for marketing, growth campaigns, and community influence.

While we all know that price is the best marketing tool and a key factor in attracting talent and liquidity, it would be a shame to remain focused on value extraction as a supportive regulatory environment emerges.

Emerging markets often experience rollercoaster-like growth cycles, but it’s crucial to have an end goal and chart a viable path for the majority. That path lies in building something truly valuable.

Editor's Note: This article delves into the shifts in the crypto market, particularly the growing fatigue among retail users. It highlights the transition from a venture capital (VC)-dominated market at the beginning of 2024 to the meme coin frenzy. While meme coins initially offered a fairer playing field for retail investors, they eventually became overly speculative, worsening market conditions. Retail users, tired of losses, face a fast-paced and competitive market. The article emphasizes the importance of finding a new balance and calls for more focus on projects with real utility and fair distribution mechanisms.

Below is the original content (edited for clarity and readability):

As Kaito.ai pointed out, the term "fatigue" saw a significant increase in mentions on Crypto Twitter in the last two weeks of January 2025.

This cycle is different from previous ones—more challenging, even surprising traders who have experienced two or three cycles before. The market is evolving: narratives change faster, attention has become the scarcest currency, and increasing regulatory scrutiny and political involvement in crypto have introduced new variables.

Retail investors have missed out on opportunities for too long. Every time it seems like the goal is within reach, the market's rules change faster than before. In the 2021 cycle, we saw venture capitalists (VCs) achieving exponential returns compared to retail investors who had no access to private investment opportunities.

This trend continued until around 2023, when projects like TIA and DYM launched, marking the end of retail investors' disillusionment with VC-driven extraction mechanisms.

What was the most rational consequence of this? A movement to shift power dynamics.

The long-known "meme coin" narrative gained traction as VCs ran out of private筹码 to dump on uninformed buyers. This initially benefited retail investors, who found a more level playing field. However, the narrative became oversaturated, and users' attention spans shortened further. Let’s examine how the market landscape evolved and where it might be heading, while trying to explain why people feel so tired.

It feels like a long time ago, but before the AI hype and meme coin frenzy, the mainstream play for retail investors was airdrops. This trend was kickstarted by Arbitrum and other Layer 2 airdrops. Retail users saw the potential of earning airdrops by experimenting with new protocols and chains, turning airdrops into a business. Companies offering "airdrops as a service" emerged.

However, the dream turned into a nightmare when these projects began releasing their tokenomics. Users were deeply disappointed: all their efforts resulted in almost nothing. One of the most controversial launches was Scroll, a ZK-EVM Layer 2.

After over a year of ecosystem promotion, Scroll's airdrop was a letdown, with 5.5% of SCR supply allocated to Binance instead of the community.

Moreover, most of these tokens had very low circulating supplies (circulating supply / total supply), with significant portions allocated to VCs. Another topic of discussion was TIA and DYM, where the narrative revolved around staking these tokens in hopes of future ecosystem airdrops.

Spoiler alert: those airdrops never happened, and the token prices only declined (see DYM's chart below).

After the VC era ended, users had to find a new playbook, which they discovered through muststopmurad and his "meme coin supercycle."

For retail investors, meme coins seemed like the closest thing to an equal opportunity in the market—until they weren’t. Prices surged, Trump was elected, and it felt like we were heading to the moon.

But suddenly, liquidity dried up, market attention shifted elsewhere, and all your meme coins crashed during the market correction.

Meanwhile, insiders who had early access to these coins also had the chance to dump their holdings. Retail investors ended up in an even worse position than during the VC coin era.

What’s left now? Increased risk-taking, shorter attention spans, further fragmented liquidity, and attempts to understand past mistakes through more gambling disguised as "trading."

Pump.fun is a symptom of this market direction.

After losing out to VCs and now traumatized by the Pump.fun arena, users hope their next 100x gain will make up for previous losses. The market has changed forever, and the new playbook reflects this.

Market rotations are shorter and faster. In previous cycles, you could hold positions for weeks, but now, you can only hold for days or hours. New projects suck up all the liquidity: attention is scarce, and everyone is playing the same game.

Political and regulatory influences are growing: this was evident in the launch of TRUMP, highlighting how external events can have an unprecedented impact on the market.

Unfortunately, once again, retail investors are lost in this game, with many tokens resembling the capital extraction mechanisms they’ve become all too familiar with.

In contrast, Hyperliquid’s launch brought attention to community-driven airdrops and distributions. Over 31% of the airdrop was allocated to the community, and the token price has risen over 7x since launch. Hyperliquid proved that fair launches are possible.

However, not every project can replicate this model, as running a project like Hyperliquid for a long time incurs significant costs.

These phases highlight two extremes:

1. Excessive Power in the Hands of VCs: Retail investors couldn’t participate in private rounds and were left as exit liquidity.

2. Unrestricted Meme Coin Access: This led to a player-vs-player market, worsening overall market conditions.

Both have the same consequence: retail investor dissatisfaction and a need for balance and stability.

Here are some possible directions for the future:

• A Return to Utility: Less focus on meme coins, more on projects with real utility.

• Less Value Extraction, More Value Creation: Avoid zero-sum games.

• Fair Launches: Inspired by Hyperliquid.

• New Approaches to Protocol Marketing and Token Launches: Leveraging tools like Kaito for marketing, growth campaigns, and community influence.

While we all know that price is the best marketing tool and a key factor in attracting talent and liquidity, it would be a shame to remain focused on value extraction as a supportive regulatory environment emerges.

Emerging markets often experience rollercoaster-like growth cycles, but it’s crucial to have an end goal and chart a viable path for the majority. That path lies in building something truly valuable.