The Four Sectors I Favor Amidst the Major Structural Changes in the Web3 Market
Author: Meng Yan Original Link: https://mp.weixin.qq.com/s/Y8DuXVCPk22kNM1rs07HcA The current state of the Web3 industry and the crypto market can be summarized in one sentence: crypto prices are decent, but the industry is in a deep bear market. This situation has never been seen before in the history of this industry. Previously, prices and volume either both rose or fell together. The current scenario, where there is a severe divergence between volume and price, is the first of its kind in over a decade of the crypto market’s existence. Although the situation seems peculiar, the reason behind it is actually quite simple — lack of liquidity. Many people are asking, “Why do crypto prices and total market capitalization appear to be fine while the industry is so depressed?” Actually, this question is being asked the wrong way. Don’t forget, the U.S. federal funds rate is still at a historical high, and macro liquidity is in a tightening cycle. In this cycle, both the stock market and c...