When US stocks are put on the blockchain, who will become the "version of the game" in the next cycle?

One viewpoint regarding the tokenization of US stocks is that it will be a fatal blow to crypto projects, eliminating any chance for altcoins. The reasoning is that money previously invested in crypto will be absorbed by high-quality US stocks. Undeniably, some funds that were previously invested in crypto will flow into tokenized US stocks. However, this is only one side of the coin; there is another.

The tokenization of assets, including the US dollar, US Treasury bonds, US stocks, and physical gold, will significantly increase the amount of on-chain assets. Given the composability of crypto finance, if Ethereum scales up and resolves privacy issues, one possibility is a surge in on-chain transactions, not only in DEXs, PERPs, and prediction markets, but also in funds previously invested in US stocks flowing into the crypto market. Funds that previously wanted to invest in US stocks but lacked the opportunity will also enter the market, thus increasing overall liquidity.

More importantly, the circulation of US stocks on the blockchain is not entirely one-way; it could also be two-way. However, the concern is that crypto projects' revenue isn't strong enough to sustain their growth. But the wealth effect doesn't solely depend on revenue; there are industries in the world with high revenue but low market capitalization.

Of course, this inevitably means the complete end of the widespread altcoin boom of the previous two cycles. However, there will still be demand for high-quality altcoins, as well as on-chain infrastructure, including public chains like Ethereum, DeFi, oracles, privacy technologies, digital identities, wallets, and so on. There is even a high probability that crypto AI agents and asset tokenization will combine to create new applications, giving rise to new tracks similar to prediction markets/PERP.

The core message here is: don't assume the end of the world or that liquidity will be siphoned off just because US stocks are tokenized. Stablecoins and US stock tokenization, once on-chain, won't simply sit idle; they'll become liquid, and the composability of crypto will be fully utilized. With a good narrative and good projects, not only will funds from the crypto space flow in, but funds from outside the crypto sphere will also enter—it's simply a matter of competition.

A select few high-quality projects in the crypto space, once they develop a compelling narrative, may not necessarily underperform the US stock market. The next cycle will likely see projects similar to prediction markets and PEP—projects that don't exist in traditional financial markets, possessing a unique crypto-specific market-to-dream ratio. The power unleashed by increased on-chain liquidity and composability is undeniable. People's desire for money and pursuit of innovation are so urgent that they are constantly exploring and creating new crypto species from the bottom up.

Furthermore, a repeat of the altcoin boom of previous cycles is highly unlikely. Even without the tokenization of US stocks, a full-blown altcoin boom similar to the last two cycles has already disappeared from the crypto scene. However, a small number of high-quality crypto projects still have opportunities, especially those infrastructure and applications used to support the tokenization of US stocks.

Finally, each cycle has a "version child" (or "version pick"), and the "version child" of the previous cycle, the last cycle, and this cycle will all be different, and the next cycle will also be different.

The golden age of the crypto world, Westworld, is gradually coming to an end. With the entry of institutions, the crypto space has entered a new phase of financial innovation.

At this stage, opportunities for high returns still exist, although the probability of success is much lower than in previous golden periods, but it's not impossible. Perhaps the next cycle's "golden child" is still a senior in college, or perhaps they've lost a lot of money in this cycle, lying low, waiting for the next cycle's opportunity to soar.