How far can the crypto market go?

Looking at this year's market, the enthusiasm in the crypto market is clearly fading. The old batch of investors is still holding on, but you will find that new faces are becoming fewer and fewer.

The cost structure of contract trading is daunting - opening a position incurs a fee, and closing the position incurs another fee. Such a rate design is something even casinos wouldn't dare to implement. Compared to other financial derivatives markets, this dual charging model indeed reduces the willingness of newcomers to participate.

The spot market isn't doing much better. Cryptocurrency prices continue to be under pressure, and there's little hope for profits from holding coins; ordinary users can't see clear growth expectations. More importantly, concepts like decentralization and Web3 are too abstract for most retail investors— the problems they solve and the actual benefits they bring have not been clearly translated into values that everyday users can understand. The barriers to entry and the cognitive costs for market participants are gradually increasing.