Has the "third generation" of cryptocurrencies come to an end — considering the turning point in the industry

Charles Hoskinson, the founder of Cardano and one of the main developers of Ethereum, has issued a warning to the industry. According to him, the current cryptocurrency market is dominated by hype, speculation, and meme coin frenzy, diverging from the true purpose of technology. In a video message released on December 25, 2025, Hoskinson states that a fundamental shift in values within the crypto space is essential.

Challenges Facing the Industry and the Limitations of Third-Generation Blockchains

Hoskinson’s remarks highlight the structural issues faced by the cryptocurrency industry. Third-generation blockchain technology was introduced with promises of scalability and energy efficiency improvements, yet the market remains highly susceptible to speculative demand. There is an ongoing problem of fraudulent projects and tokens lacking utility, causing projects with genuine use cases to be overshadowed.

Building on this situation, Hoskinson discusses the next steps for blockchain technology. His proposed privacy technology, called “Midnight,” symbolizes a new approach centered on practicality and sustainability.

The Path to the Next Generation — The Potential of Fourth-Generation Blockchains

Developing fourth-generation blockchains means going beyond mere technical improvements to genuinely address social and economic challenges. Hoskinson’s statements suggest that the entire crypto industry needs to shift toward long-term value creation and real-world applicability. Blockchain solutions that respond to societal needs such as privacy protection, data sovereignty, and sustainable payment systems should become the foundation for future industry growth.

To avoid the loss of trust and achieve true innovation, it is urgent to move away from hype and focus on implementable projects that generate real value.