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The Downward Spiral of Cryptocurrency: A Repetition of the Internet Bubble Burst Era | Opinion
The current cryptocurrency market is reminiscent of the internet bubble era, with high FOMO sentiment, soaring valuations, and token trading prices exceeding their earnings by over 100 times, while actual revenue remains limited. As the market matures, projects like Ethereum generate measurable income through staking and DeFi, making rough P/E ratio analysis possible and revealing the widespread issue of overvaluation. Just as Pets.com and eToys went bankrupt after the bubble burst, while Amazon and Google rose against the trend, some weakly founded crypto projects are now heading toward failure. However, protocols with solid fundamentals may be able to weather the storm. Bitcoin’s price has fallen nearly one-third from its peak of $126,000, and other cryptocurrencies have experienced even larger declines. Market consolidation may occur in 2026—eliminating inefficient tokens and laying the foundation for a lasting Web 3 era.