Why must the crypto bull market be driven by ecological innovation?

In yesterday's and previous articles, I often mentioned that the forces from within the crypto ecosystem are the healthiest, most sustainable, and most powerful forces that can drive the market; while external catalysts and stimuli often only have a temporary effect, and their sustainability is very short.

This is also why, despite sharing positive news about crypto policies, I prefer to share inventions, creations, new models, and new scenarios that come from within the ecosystem.

What are the forces from within the crypto ecosystem?

For example, the two sectors that have risen in this market cycle: inscriptions and AI agents.

However, inscriptions have shown weakness and have not truly formed a force; while AI agents faced multiple shocks before they could even take shape, which has hurt their vitality, and now we have to wait for their recovery.

In this regard, a complete cycle that has fully ignited emotions is typified by the DeFi, NFT, and blockchain gaming explosions in the last bull market.

Many readers experienced the last bull market, and I believe that many can vividly recall the strength and appeal of the internal forces at that time.

In the current crypto ecosystem, after experiencing wave after wave of shocks, it seems that we have gradually forgotten this feeling.

In fact, right next door, the A-shares and Hong Kong stocks have experienced and are experiencing the best reference.

The first wave of recovery for A-shares from despair began with the policy-driven market starting in September last year.

That scene is not far from us, and I believe everyone is familiar with it.

At that time, under pure policy stimulation, A-shares and Hong Kong stocks suddenly soared, with the Shanghai Composite Index's daily increase exceeding 5 percentage points during the rally. The Shanghai Composite Index was pulled up by nearly 1000 points in less than a month, with an increase of over one-third; this is not about individual stocks, but about the index.

Besides "crazy," I really can't find any other words to describe the market at that time.

And what was the result?

After the National Day holiday, without further strong policy stimulation, the market immediately halted, and A-shares and Hong Kong stocks fell in sync, with no significant recovery afterward.

This is the situation we see when relying solely on external stimulation without internal ecology.

In fact, this characteristic applies not only to traditional financial markets but to any financial market, including the crypto market.

To pull up the market in this way, it requires a continuous and massive influx of liquidity and constant motivation.

Apart from a few developed countries like the United States and Japan, I estimate that it is not easy for other countries to achieve this.

The traditional market is like this, and the crypto market is no exception. Even if the crypto market has strong policy stimulation, how long can it stimulate?

Returning to A-shares and Hong Kong stocks.

After the A-shares and Hong Kong stocks became sluggish in October last year, an unexpected event occurred in January this year:

The emergence of DeepSeek disrupted the development path of large models, making developers realize that besides boosting computing power, they could also innovate in algorithms.

This news not only shook the U.S. stock market but also resonated in the A-share market. People began to look for various listed companies that indirectly held shares in its parent company, Huanfang Quantitative.

A-shares began to stir, while southern capital and foreign capital started to pay attention to Hong Kong tech stocks again.

Then, a series of AI-related positive news emerged, such as the robots from Yushu Technology and the stake of Nvidia in WeRide.

Moreover, Apple's selection of Alibaba as its AI partner for iPhones in China pushed the AI theme to a climax.

In addition to the publicity in the news, I have personally witnessed numerous cases in practical applications: during this period, I often saw friends in my social circle posting news about their companies launching certain + DeepSeek solutions, all promoting the improvements in efficiency and cost reductions brought by DeepSeek to their business.

Clearly, the application and popularization of AI have begun to tangibly enter our lives and change our lives.

During this time, almost all Hong Kong-listed Chinese tech companies' stocks have started to rise, and the Hang Seng Tech Index has become the focus of attention.

In terms of A-shares, the current market trend is relatively healthy, maintaining a pattern of taking two steps forward and one step back, rather than the irrational surge seen in September last year.

This is the driving force from within the ecosystem. A market driven by such forces is a healthy market, a sustainable market.

What the crypto ecosystem lacks is precisely this kind of internal driving force, this true source of power.

It is impossible for the crypto ecosystem to develop healthily by wishfully relying on policies or treating "games" as "serious business." Therefore, we still need to focus on discovering new trends, inventions, and scenarios within the ecosystem.

As a side note: The purpose of writing this article today is not to encourage everyone to buy A-shares or Hong Kong stocks, but I suddenly thought that the driving forces behind the movements of A-shares and Hong Kong stocks last year and this year correspond exactly to external policy forces and internal driving forces. Additionally, A-shares and Hong Kong stocks are very familiar to us, making it easier for us to understand through comparison.

By comparing, we can clearly see the problems facing the current crypto ecosystem. I hope we can use this reference to see the true direction and real driving forces of the crypto ecosystem in the future, exploring towards the right direction in our daily learning and seeking the true driving forces of the crypto ecosystem within that direction.