Declining network revenue and shifting macroeconomic conditions suggest the broader cryptocurrency market is struggling, with Bitcoin remaining the only asset maintaining significant momentum through institutional ETF adoption.

Key Points

• Network revenue for most blockchains has trended downward since 2021, signaling a decline in actual user activity and utility.
• The end of the Zero Interest Rate Policy (ZIRP) era has reduced speculative capital, making high-risk "shitcoins" less attractive compared to traditional assets.
• Bitcoin dominance reached approximately 60% during the 2025 bull run, as institutional demand via ETFs decoupled it from the rest of the crypto market.
• Data from CoinGecko indicates that 11.6 million tokens failed in 2025, accounting for 86% of all crypto project failures since 2021.
• Emerging sectors like artificial intelligence have diverted speculative interest and capital away from traditional crypto gambling and NFT trading.

Why it Matters

The transition from a low-interest-rate environment to a higher-cost-of-capital regime has fundamentally altered the risk-reward calculus for digital assets. As investors pivot toward traditional equities and AI-driven opportunities, the crypto industry faces a potential long-term contraction that threatens the viability of projects lacking clear, real-world utility.