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study cow馃憞馃徎
We have been due a changing of the guard for a long time. Most crypto tokens don鈥檛 solve a real problem.
At the time of posting this, there are only:
>71 crypto assets with more than $1B in market cap
>14 crypto assets with more than $10B in market cap
If we take the top 14 as an example, many arguably offer very little value and/or differentiation in their approach to solve the same problem: permissionless infrastructure.
XLM, ADA, and XRP offer poor technology relative to comparable token valuations. BNB, ETH, SOL, TRX are all L1s that struggle to retain moats as protocols get more commoditized, and 3 of the top 14 are stablecoins (which actually have product market fit, but aren鈥檛 investable tokens so you could say there are 11 tokens above $10BN).
What this tells me is there is demand for L1s, Stablecoins and exchange tokens, but that鈥檚 the problem they solve isn鈥檛 useful to many people today (I.e their centralized alternatives are already strong).
So In that sense, I agree with many of the altcoin cynics in that many of these 71 tokens offer limited value. Why should DeFi protocol #34 on chain #23 be worth anything? We were promised the future of finance but we got the dropshippification of finance.
Conversely, BTC sits cleanly atop the crypto pyramid. I think many understudy its characteristics. Why is Bitcoin worth so much? Why is it so strong? Why is it the king?
The answer is simple: it solves many problems and provides real value to people.
Bitcoin offers:
>An alternative to fiat currency and centralized systems which have proven unworthy of trust
>capped supply, true decentralization and accessibility
>A battle tested network (security)
>Psychological safety (best performing asset of all time
The first point matters the most by a wide margin at this point in the game. If our fiat system worked or centralized institutions were reliable, many likely wouldn鈥檛 need Bitcoin.
But it does not and they are not.
The top 100 tokens should solve REAL problems to justify gigantic valuations. Random tokens will not be worth billions of dollars in the future. It鈥檚 just basic math: too many sellers, too few buyers.
All in all, this changing of the guard is a good thing. Tokens like #SPX6900 that solve REAL problems are given the opportunity to climb the ranks as competition struggles to adapt to the new paradigm.
In many ways, the comparisons to Bitcoin above make too much sense to ignore.
Offer people a means of resistance.
Offer people camaraderie.
Offer people a permissionless vehicle.
Offer people hope.
Align financial incentives.
This is how you reach Trillions. And for SPX, that is where the game begins.View quoted post on X
