Crypto can’t thrive on VCs and FOMO forever

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Cryptocurrency feels unstoppable following the US presidential election. Bitcoin (BTC) rises above $100,000 for the first time; This figure seemed like a pipe dream just a year ago. The air is filled with FOMO as investors and entrepreneurs try to ride the wave. But let’s not get carried away. Moments like these are exciting, of course, but they can also blind us to the basics. If we want blockchain to truly succeed, we need to shift the focus from speculative fluctuations to building sustainable revenue-generating products.

I understand Excitement is contagious. Volatility and moonshots are part of the DNA here. But this time, the excitement is not just about noise. The signal is clear: Crypto is finally ready for real adoption. Game-changing innovations like account abstraction and chain abstraction are making user experiences seamless. SocialFi projects like Farcaster are pushing the boundaries and tokenization is advancing rapidly (even though memecoins embarrass us occasionally).

What we actually need is growth

Yes, metrics like growing TVL and the popularity of Bitcoin exchange-traded funds show that the ecosystem is expanding. And of course, it’s normal for tech startups to rely on venture capital in their early stages. But let’s face it: No industry can thrive indefinitely on venture capital financing alone. After all, every company must stand on its own feet; This means generating real income.

Think of early-stage crypto projects as babies in the womb. They rely on an external lifeline (VC funding) to survive. But at some point they need to breathe, walk and develop independently. We are at this point now. It is ready to step into the crypto world and prove that it can not only innovate but also sustain itself.

For too long, growth has been tied to inflationary token models. While these systems may make technical sense, the value they create is often illusory; it is about circulating supply rather than actual demand. Thankfully, we are starting to see new models emerge. These are not just about speculation; they’re about solving real problems, paving the way for mainstream adoption, and scaling in meaningful ways.

don’t be at ease

Crypto startups should aim for more than just increasing valuations or generating quick returns. Token prices are flashy, but they’re not the end of the game. Our focus should be on building sustainable, interoperable economies. Models built on the assumption that a native token will “keep going up” are inherently unstable and fuel the skepticism that has cast a shadow over cryptocurrency in the eyes of traditional markets.

The good news is that the tools to shift gears are available. As user experiences catch up with technical capabilities, the door to building robust, user-focused businesses opens wide.

One of the key opportunities is interoperability. Consider why people value the dollar; The dollar works everywhere. Now imagine that every store you visit has its own currency. Shopping was going to be a logistical nightmare. Crypto should not fall into this trap. Instead of flooding the market with isolated tokens, we should focus on useful cross-platform rewards and assets.

This doesn’t mean compromising blockchain’s unique advantages. Many L1 and L2 support tokens compatible with products in DeFi and beyond. It’s time to move towards tokenomics, which rewards users with assets they can use, not just speculative bets.

In conclusion

Blockchain is a revolutionary technology that has the potential to overhaul global infrastructure. It’s like replacing steam engines with high-speed trains; faster, smarter, better. But no matter how innovative we are, the basic laws of economics still apply. If our products don’t generate real cash flow, they won’t survive.

Hype cycles will come and go, but if we focus on creating products that deliver clear value and grow sustainably, the possibilities are endless. This is not just a wish; we are ready to make this happen. The foundation is here and the potential is huge. Let’s not waste it.

Yair Cleper

Yair Cleper is co-founder and CEO of MagmaDevs, a team of expert blockchain engineers shaping the future of web3 infrastructure, and contributes to Lava Network, a decentralized marketplace for data providers that process transactions and user requests across 40+ blockchains . A successful serial entrepreneur, Yair founded his first company at the age of 21 and has since founded numerous successful ventures. He served for six years as the sole founder and CEO of Supersmart, the world’s first cashierless supermarket payment solution. Under his leadership, Supersmart has scaled to process $1 billion annually for top retailers in more than nine countries. In addition to Supersmart, Yair also co-founded groundbreaking startup companies such as Ogmenti, which specializes in augmented reality, and Octopai, a business intelligence platform. Across his ventures, he has raised over $50 million, built teams of hundreds, and achieved two successful exits.