Return to Growth-Driven Value: How Can Tokens Get Out of the Woodwork?

First, the crypto market as a whole is in crisis

The crypto market is currently in a state of unusually low liquidity. Bitcoin’s breakthrough to new highs failed to lead other tokens higher, suggesting that the market as a whole is facing challenges. On the one hand, the marginal halving effect of Bitcoin is decreasing, and the larger base limits the upside. On the other hand, the global economic cycle may be changing, affecting the overall movement of the crypto market.

! [Returning to Growth-Driven Value: How Can VC Coins Get Out of the Narrative Trap Beast?] ](https://img-cdn.gateio.im/webp-social/moments-ba46bf446e6f249505418f708612825a.webp)

Second, the consequences of over-investment and mispricing

The boom of 2020-2021 allowed some projects that should have been phased out to survive and be financed at unreasonable valuations. This has led to the emergence of these projects in the secondary market at high valuations in 2023-2024. However, it’s not just the tokens that are facing problems, the entire market is stuck in a massive negative-sum game. In the absence of external cash flow, the market is forming a pyramid structure, with the upper layer profiting by exploiting the lower layer, which exacerbates the involution.

! [Returning to Growth-Driven Value: How Can VC Coins Get Out of the Narrative Trap Beast?] ](https://img-cdn.gateio.im/webp-social/moments-9138f1f18bddf9fff259c8b9040b6b44.webp)

Third, return to real growth

In the current environment, projects need to focus on the following points:

1. Organic Growth: Marketing is just as important as technology and needs to be highly integrated with product strategy.

! [Returning to Growth-Driven Value: How Can VC Coins Get Out of the Narrative Trap Beast?] ](https://img-cdn.gateio.im/webp-social/moments-34f8cf35a6f94a0911c1a1c56bcc22fd.webp)

2. Focus on high-quality KOLs: The core team should have in-depth communication with key KOLs, rather than simply outsourcing.

3. Take protocol revenue as the primary indicator: Build a sustainable business model to ensure long-term development.

! [Returning to Growth-Driven Value: How Can VC Coins Get Out of the Narrative Trap Beast?] ](https://img-cdn.gateio.im/webp-social/moments-2b7367d80bb8e20e772385d8137ecc4f.webp)

4. Improve the economic model: The following conditions need to be met:
   • Able to earn sustainable protocol income
   • The token cycle matches the project growth cycle
   • Think of incentives as investments rather than consumption
   • Solve the problem of class solidification of the chip structure

Only by returning to real user growth, revenue growth, and adoption growth can the project survive in the current era of great involution. The only thing the market believes in is real growth.

! [Returning to Growth-Driven Value: How Can VC Coins Get Out of the Narrative Trap Beast?] ](https://img-cdn.gateio.im/webp-social/moments-ea0ad861246f43bbb2a205e1be758d5c.webp)