An Increasingly "BenFen" Web3: A Collective Shift in the Maturity Phase of the Industry

This article is a submission and does not represent the views of ChainCatcher, nor does it constitute any investment advice.

Changes in the Rhythm of the Industry Ecosystem: From "Fast" to "Stable"

The development trajectory of the Web3 industry is undergoing a profound shift in rhythm.

In the early days, narrative-driven speculation constituted the main theme of the crypto ecosystem. Bitcoin halving, DeFi Summer, NFT frenzy—these stories once attracted a massive amount of capital and attention in a short period, accelerating the construction of infrastructure. However, the rapid pace also brought concerns: excessive reliance on financing and neglect of long-term implementation led to many projects being short-lived.

The paradox of fast-paced development is that it indeed fosters innovation, but it also drains the patience of users and capital. As the industry entered a cooling period from 2022 to 2023, speculative bubbles gradually faded, and market sentiment became more rational. This is not a retreat but a transition into a phase of genuine internalized growth.

According to CoinMarketCap data, mainstream coins like Bitcoin and Ethereum have re-established their dominance: Bitcoin's market cap share fell to about 39% in 2022, but rebounded to an average of 45.6% in 2023, further rising to 51.9% in 2024, and has approached 59.3% so far in 2025. This indicates that after experiencing the last bear market, capital is more inclined to flow towards leading assets like Bitcoin and Ethereum.

In contrast, long-tail altcoins and Memecoins have stirred up some excitement locally, but overall growth has been weak. For example, the Memecoin craze sparked by Pepe in the second quarter of 2023 saw Pepecoin's market cap soar to about $1.5 billion by the end of 2024, but it quickly fell back below $700 million; the meme launch platform pumpfun, which once saw a surge in revenue exceeding that of Tier 2 exchanges, has seen its fees drop to a maximum of 5% as market rationality returned.

(Red line: cumulative trading volume of pumpfun; blue bars: daily fees of pumpfun; source: Dune)

These types of meme coins, which lack fundamental support, often "bloom briefly" and struggle to retain market value in the long term. In contrast, crypto assets like Bitcoin and Ethereum, which possess network effects and application ecosystems, have shown more robust performance in this round of recovery, with their market cap growth and share increase significantly outpacing the vast majority of long-tail projects.

The decrease in investor risk appetite and the return to value have accelerated the concentration of market capital towards the top assets, sending a clear market signal: speculative projects are increasingly difficult to sustain in the long term, and capital is concentrating back to leading assets.

(Source: crypto rank)

The logic of VC investment has also changed. In 2022, venture capital fundraising in the industry peaked, but it suddenly shrank in 2023. As we enter 2024-2025, funding is warming up but with a different focus: investors prefer platforms with solid team backgrounds, MVPs that are operational, and cash flow models, rather than early experimental projects driven by narratives.

In light of the focus and shrinkage of primary market investment opportunities, industrial capital is turning its attention to secondary markets and public market opportunities.

On one hand, traditional VCs are becoming increasingly cautious about investing in early crypto projects; on the other hand, large institutional funds are beginning to position themselves by investing in publicly traded crypto assets. For example, the crypto investment firm Pantera recently invested $300 million specifically in companies adopting the "Digital Asset Treasury (DAT)" model, betting that these publicly listed companies incorporating crypto assets into their financial reports can achieve better returns than directly holding coins or ETFs.

These DAT companies issue stocks in the public market to raise funds, which they use to hold large amounts of Bitcoin, Ethereum, etc., and participate in staking yields, thereby increasing their net asset value per share. This innovative model has quickly attracted Wall Street's attention—reports indicate that several crypto asset treasury companies have emerged on Wall Street, raising billions of dollars, with stock prices soaring, attracting legendary investors like Stan Druckenmiller, Bill Miller, and ARK funds.

The valuation paradigm of traditional capital markets is also influencing and reshaping the native Web3 rules. Although these companies are labeled as "crypto concepts," they operate according to traditional business standards: pricing based on balance sheets and cash flows, emphasizing net asset value per share, discounted earnings, and other fundamentals. For instance, MicroStrategy (now renamed "Strategy") has been purchasing large amounts of Bitcoin since 2020, and its stock performance is linked to Bitcoin prices, being seen as a "quasi-Bitcoin ETF"; new generation DAT model companies like BitMine Immersion have gone further, boldly financing Ethereum holdings through equity and convertible bonds, and using staking and DeFi strategies to enhance asset yields.

This indicates that the Web3 ecosystem is constructing a "Maslow-style hierarchy of needs" shift: moving from high-risk ventures to basic needs of safety, payment, and trust.

The past Web3 was filled with speculation and speed, but now, as capital and narratives cool down, the industry is shifting towards a more robust construction phase. The increase in market cap share of Bitcoin and Ethereum, the change in VC investment logic, the advancement of policy regulation, and the rise of new asset operation models like "DAT" are all signals of the arrival of the "BenFen Era."

Global Participants are "BenFen-ing": A Sign of Industry Maturity

If the "rhythm change" is an external manifestation of the industry, then "BenFen-ing" represents a deeper internal logic. "BenFen" refers to different roles returning to constructive and sustainable development paths.

The evolution of the policy environment is shaping new industry boundaries. The U.S. GENIUS Act, the EU's MiCA, and Hong Kong's stablecoin licensing system, while differing in details, share a clear consensus: to protect investors, enhance transparency, and open channels for compliant capital to enter. For project parties, this means that "gray area" businesses will become increasingly difficult, and compliance and transparency will become mandatory thresholds.

• United States: The "Stablecoin Innovation and Protection Act" (GENIUS Act) requires stablecoin issuers to maintain 100% reserves in highly liquid assets (such as U.S. dollars and short-term U.S. Treasury bonds) and mandates issuers to publicly disclose reserve compositions monthly to ensure stablecoins are "true to their name."

• European Union: The "Markets in Crypto-Assets Regulation" (MiCA) stipulates that crypto asset service providers (CASPs) must obtain licenses and meet capital requirements, bearing legal responsibility for customer asset losses; stablecoin issuers must maintain a 1:1 reserve and disclose regularly, with large stablecoins subject to oversight by the European Central Bank and the European Banking Authority (EBA).

From search trends, if "DeFi," "NFT," and "yield farming" were high-frequency keywords in the blockchain field on Google Trends in 2021, then from 2024 to 2025, the main focus of search popularity has quietly shifted to "stablecoins," "compliance," and "cross-border payment."

Especially with the implementation of the EU's MiCA and the signing of the U.S. GENIUS Act, Google Trends also shows that global searches for "stablecoins" surged to historical highs during regulatory favorable events (as seen in the chart below).

Google stablecoin search (Source: Google Trends)

These data indicate that while industry growth no longer exhibits the explosive frenzy of the early days, it is steadily recovering and growing sustainably. The evolution of keywords clearly shows the industry's trajectory from speculative narratives to stability and application scenarios, with blockchain technology becoming the foundational infrastructure for payment scenarios.

In this trend, capital markets are also seeking more robust entry methods. ETFs are one pathway to bring traditional capital into the crypto space, and the recent surge in BitMine's stock price proves the effectiveness of the DAT strategy: issuing stocks at a premium to acquire crypto assets, cashing out on volatile returns through convertible bonds, and obtaining staking and DeFi interest, ultimately feeding back into net asset value per share.

Its successful demonstration indicates that applying traditional DCF valuation models to crypto asset operations is feasible: the market is beginning to price these companies based on their ability to appreciate net asset value per share, rather than solely relying on the conceptual premium of crypto assets. This trend is already reflected in the finances of traditional enterprises and listed companies: more and more institutions are no longer just observing but are directly incorporating Bitcoin and Ethereum into their balance sheets.

Currently, the number of Bitcoin and Ethereum held on the balance sheets of listed companies and institutions is reaching new highs. As of the second quarter of 2025, over 100 listed companies globally hold Bitcoin on their balance sheets, collectively holding about 1 million BTC (approximately 4.7% of Bitcoin's total supply, valued at around $110 billion); regarding Ethereum, 11 institutions are reported to hold nearly 2.98 million ETH (about 2.5% of Ethereum's supply, valued at around $13.8 billion). These figures indicate that traditional capital is accelerating its entry into the crypto asset market through ETFs and the financial allocations of listed companies.

The advancement of legislation provides a safety net for investors and paves a broad avenue for sovereign funds and the finance departments of listed companies to enter. As compliant capital floods in, the game rules of the crypto industry increasingly align with those of traditional capital markets—transparency, compliance, and intrinsic value will become the focal points of market attention, making large-scale widespread application more likely. As capital logic gradually becomes institutionalized, the industry's focus shifts from speculation to construction.

The essence of this trend is that Web3 is entering the "Builder Era." The value of trust and order is replacing short-term profit-seeking as the core. The regulations and rules of medieval guilds once provided a foundation of trust for commerce; today, stablecoins and compliance frameworks serve as the "daily necessities" of digital finance, and the value of this "daily necessities" is directly reflected in stablecoin data.

(Image source: Internet, please delete if infringing)

The Explosive Growth of Stablecoin Data Also Indicates a Restructuring of the Landscape

According to Artemis data, the global monthly settlement amount of stablecoins is approximately $5.1 trillion by December 2024, three times that of the same period in 2023 and 22 times that of 2021; VanEck states that the daily settlement scale of stablecoins has reached about $100 billion, gradually approaching the scale of traditional cross-border payment networks like SWIFT.

The on-chain trading structure has also changed; according to Chainalysis data, stablecoin trading volume accounts for 50% to 75% of total on-chain trading volume, becoming the most important asset class on-chain.

This is why we have invested in and incubated the public chain BenFen, which natively supports stablecoin payment for Gas, one-click token issuance, and on-chain merchant payment interfaces—because this is the most fundamental part of future demand.

Market performance has shifted from "high volatility" to "steady growth."

According to Bloomberg, from 2024 to 2025, the volatility of Bitcoin and Ethereum prices has significantly decreased, with Bitcoin's two-year implied volatility dropping to a two-year low; according to Coindesk, compliant stablecoin ecosystems like Circle (USDC) rapidly expanded after favorable policies, with their stock prices skyrocketing over tenfold after new regulations were announced. Capital flows are also becoming more rational: some crypto capital is moving away from high-risk stocks towards digital assets like Bitcoin and stablecoins as "hedge" allocations.

Further analysis by McKinsey indicates that blockchain + stablecoin payments can shorten the traditional cross-border payment settlement cycle from 2-3 days to seconds, greatly improving the payment experience. This change is reflected not only in market data but also in the shift in user demand.

In 2021, users chased wealth myths and excitement—an almost "self-actualizing" level of radical adventure: high-yield DeFi pools, NFT breakout myths, GameFi overnight wealth. This emotional overlay shaped a crypto narrative colored by desire and speculation.

By 2025, this demand has quietly shifted to "basic functions": the convenience of payments, the security of assets, and the certainty of compliance. This transformation coincides with the implementation of regulations, the entry of institutions, and the maturity of infrastructure. In McKinsey's words, "The significance of blockchain + stablecoin payments is not speculation, but shortening cross-border payments from 2-3 days to seconds."

This also raises a deeper question: in a context where risk control and stability are increasingly important, what is the true foundation of digital currency? Is it speculative enthusiasm, or is it the "sense of order" that is widely accepted and can be used in daily life? Perhaps when cryptocurrencies are reinterpreted as "daily necessities" financial tools rather than tickets to overnight wealth, they will truly mature.

This resonates with the change in user demand: if in 2021 crypto users were chasing wealth myths and high-risk games, by 2025, users are more focused on payment convenience, asset hedging, and compliance security. In other words, digital currency is returning from "radical adventure" to "basic functions," from satisfying curiosity to satisfying a sense of security.

This shift may resemble an "industry coming-of-age ceremony": bidding farewell to barbaric growth and entering a period of institutionalized and steady growth.

The Path Forward for Projects: Returning to Product and Operations, with Rising Success Thresholds

In the current environment of tightening regulation and changing capital preferences, the biggest dilemma for project parties is that the old paths have become ineffective: it is increasingly difficult to easily finance through "issuing tokens + narratives." The new path to survival is to benchmark against traditional internet giants and return to product and operations. Success is no longer about luck but a competition of comprehensive strength.

First, the choice of track and matching user needs has become the key to success or failure. Just as Meituan focuses on local life services and ByteDance excels in content socialization, rising through excellent execution in their respective fields, Web3 entrepreneurs also need to identify niche markets and consistently provide excellent products.

For example, Ethereum has continuously upgraded its network capabilities (from PoW to PoS, advancing sharding, etc.) in the smart contract platform track for many years, attracting a large number of developers and users, ultimately solidifying its unshakeable ecological position. In contrast, many so-called "Ethereum killers" projects, despite initially achieving high valuations, quickly lost momentum due to their inability to sustain technological breakthroughs and expand user scenarios.

Similarly, in the decentralized finance (DeFi) sector, Uniswap initially met users' urgent need for on-chain exchanges and maintained its competitive advantage through continuous algorithm improvements (upgrading to V3/V4 protocols, etc.), far surpassing later imitators in market share. These cases illustrate that projects without long-term product-market fit (PMF) will ultimately be eliminated by the market.

Secondly, user experience (UX) and infrastructure improvement have become crucial. Web3 products often involve complex concepts like private key management and Gas fees, which have historically been barriers to mass adoption by ordinary users. However, the industry has recently seen numerous explorations aimed at improving UX, such as smart contract wallets, account abstraction, and off-chain transaction acceleration technologies, designed to bring blockchain interaction experiences closer to the convenience of Web2 applications.

Teams that prioritize UX are undoubtedly more likely to capture mainstream users. For instance, hyperliquid, which has become popular in this bull market, has designed its UX to match FTX, specifically catering to trading teams and asset management teams, creating product stickiness by targeting individual traders' user habits. Therefore, project parties need to refine their products with a user-centric approach, just like internet companies, to stand out in a crowded market.

(Image source: Internet, please delete if infringing)

Lastly and most importantly, the comprehensive threshold for Web3 entrepreneurship has significantly increased; funding, teams, management, and strategic direction are all indispensable. In the past, a small development team of two or three could raise over $100 million through creativity alone, but now investors are more rational, and users are more discerning.

Entrepreneurial teams need sufficient capital reserves to endure long R&D and customer acquisition cycles, as blockchain infrastructure and ecosystem cultivation often take longer and cost more than traditional internet; they also need to attract top talent to form strong teams, including both blockchain foundational technology developers and diverse talents who understand product design and market operations; at the same time, a scientific management and governance structure is crucial—many decentralized projects lack governance frameworks, leading to inefficient internal decision-making and ultimately missing opportunities; conversely, some projects have made their team operations more stable and efficient by adopting dual governance structures of foundations + communities and bringing in experienced operational executives.

Finally, a visionary captain is needed to grasp a clear strategic direction and adjust the course in a timely manner amidst industry waves. As one accelerator mentor said, "Fast-profit-seeking altcoin projects lack sustained value; entrepreneurs should focus on long-term visions and solve real problems, rather than chasing fleeting trends." Only under the premise of correct direction, continuously iterating and optimizing business based on market feedback can projects expand their user base and revenue sources, entering a virtuous cycle.

Overall, as the Web3 industry matures, entrepreneurship has returned to its commercial essence: there are no longer shortcuts for "overtaking on curves"; success requires patiently refining products, continuously operating communities, adhering to compliance requirements, and integrating various resources.

In this process, entrepreneurial teams that can benchmark against traditional giants—combining innovative passion with pragmatic style and operational wisdom—are most likely to succeed in increasingly fierce competition and capture a significant market share. The threshold for entrepreneurial success has significantly increased compared to a few years ago: this is both a challenge and a sign of the industry's maturation.

The Web3 enterprises that truly stand out in the future may simultaneously possess the robust operational capabilities of traditional internet giants and the innovative tension brought by blockchain technology, writing their own legends in the new digital economy landscape.

Why We Named Our Incubated Project BenFen

In the noisy and volatile industry cycle, Bixin Ventures has been seeking foundational infrastructure opportunities that can transcend cycles.

We clearly see that as speculative narratives recede, stablecoin payments and compliant applications that align with real use cases are becoming the core increment of Web3. What is truly lacking is not new coins, but a foundational system that can support all stablecoins and facilitate real transactions.

"BenFen," in the Chinese context, means being grounded, responsible, and long-term oriented. It is precisely our summary of the long-term investment logic in this industry: not chasing trends, but solidifying the foundation.

This is also the reason we are incubating the BenFen public chain.

Why BenFen

As a long-term strategic project incubated by the Bixin team, BenFen is different from other chains in the market; its mission has been very clear from day one: to be the chain for the next generation of stablecoins.

We chose to invest in and promote BenFen for three reasons:

• Trend Judgment: Stablecoins are transitioning from "exchange assets" to "payment and settlement assets," and the industry needs a public chain specifically designed for stablecoins.

• Team Background: The core team has been deeply involved in blockchain for ten years, experiencing multiple bull and bear markets, and possesses cross-disciplinary collaboration capabilities in technology, capital management, and compliance understanding.

• Long-term Path: BenFen does not chase short-term hotspots and token prices but gradually builds an ecosystem around real scenarios such as payments, cross-border settlements, and RWA.

Specific Practical Directions of the BenFen Approach

Concepts must be translated into practice. The technology and product path of the BenFen chain is designed around "long-term infrastructure capabilities," building a robust, universal, and sustainable on-chain financial foundation.

• High-Performance Execution Environment: Sub-second confirmation speeds and tens of thousands of TPS support high-frequency scenarios such as payments and transactions.

• Stablecoins at the Core: We believe stablecoins are the most sustainable interface between Web3 and the real world and are the foundational assets for rebuilding global payment and financial order.

• One-Click Issuance Mechanism: Supports low-threshold smart contract issuance for ordinary tokens, stablecoins, and RWAs, lowering the barriers for entrepreneurs and builders.

• Stablecoin Payment for Gas: Stablecoins can be used to pay for Gas, reducing usage barriers and optimizing the on-chain user experience.

• Native Gas-Free Support (Sponsored Transaction Mechanism): On-chain transaction fees can be sponsored by third parties, allowing users to complete transfers, exchanges, and other operations without holding native tokens, significantly lowering the usage threshold for Web3 applications.

• Native Cross-Chain Bridge + Oracles + DEX: The BenFen chain natively integrates three major modules: cross-chain protocols, oracles, and decentralized exchanges (DEX), constructing an integrated decentralized financial infrastructure. The cross-chain bridge supports the flow of multi-chain assets, unlocking inter-chain liquidity; oracles provide verifiable off-chain data on-chain, ensuring trustworthy pricing for key scenarios like RWA and exchange rates; the DEX module (BenPay DEX) provides on-chain liquidity support for stablecoin and mainstream asset exchanges, serving actual needs such as payments, lending, and asset allocation.

• Native Privacy Payment Support: Exploring the integration of privacy technologies like zero-knowledge proofs to protect transaction amounts and recipient privacy during on-chain payment processes, providing censorship resistance and financial anonymity while ensuring compliance.

• Social Account One-Click Login System: Based on zkLogin, users can create wallets with their Google/Apple accounts, achieving an "install-free, mnemonic-free" on-chain experience.

These capabilities collectively form the core advantages of BenFen: not creating short-term increments but gradually building long-term capabilities that transcend cycles, continuously and stably providing a long-term usable foundation for the application of stablecoins in lifestyle scenarios.

Bixin Ventures' Choice

As investors and incubators, we are well aware that the industry's noise has not completely dissipated, but the future order is already clear: only by being grounded can we move towards sustainability.

BenFen chooses to spend time on research, refinement, and construction rather than chasing fleeting hotspots. Perhaps this path will not be the fastest, but it will certainly go the farthest.

For Bixin Ventures, BenFen is not just a public chain; it is our judgment and investment answer for the industry in the next decade.