Everyone is asking 'Is there still a山寨 season?' Data reveals the truth: VC projects are fading out

Last night, veteran players gathered in the square to watch CZ's live stream, and the entire screen was flooded with messages — 'Is there still a山寨 season?'

The more people ask, the clearer the truth becomes: Fewer and fewer believe in a large-scale山寨 season, and market data further confirms this judgment.

VC Projects: The story is running out of steam, and capital is voting with its feet

Two years ago, projects could easily raise funds just by packaging themselves as 'high-profile fundraising' or 'led by top-tier institutions.'

Now, hearing such stories, most people only ask: 'How will it make money?' The market's cold response is clearly reflected in funding data: In 2025, the number of crypto VC investments dropped 60% year-on-year, falling from over 2,900 in 2024 to just 1,200; although the total amount slightly rebounded, capital is concentrated on mature companies, while early-stage projects struggle to secure funding.

Without a real-world revenue model, relying solely on fundraising and PowerPoint presentations to survive, the previous market frenzy had masked these flaws. Now, as the wind dies down, the underlying risks are exposed. In 2025, Digital Asset Treasury (DAT) raised a cumulative $29 billion, becoming the preferred choice for institutions, while traditional VC projects continue to lose appeal.

The market's choice has always been brutally honest: Capital is rushing into Meme coins

Capital is voting with its feet: Rather than supporting VC projects' 'long-termism,' investors prefer betting on volatile Meme coins. Data confirms this: By early 2026, the market cap of the Meme coin sector surged from $35 billion to $47.7 billion, increasing by over $10 billion in a single week; PEPE trading volume jumped from $2.17 billion to $8.7 billion, a 300% increase, while lesser-known Meme coins in ETH and SOL ecosystems also doubled in value.

This is the harsh reality of the market: When the hype fades, only the strong survive. The Meme coin frenzy is essentially the market's rejection of VC projects that rely on storytelling without real profits.

After years, it feels like we've come full circle: Institutions hold tight to their anchors, while retail investors shift toward emotional assets

The capital shift is clear: Institutions stick to BTC, ETH, and other anchor assets. Data shows that as of June 2025, 139 institutions hold 3.3 million BTC (15.73% of total supply); 12 U.S. spot Bitcoin ETFs hold 1.38 million BTC (6.6% of circulating supply), with giants like BlackRock continuously increasing their holdings; it's expected that institutional holdings will exceed 4.2 million BTC by 2026, with $300 billion in capital continuing to flow in.

Retail investors, on the other hand, are turning to Meme coins: high volatility, low entry barriers, and sentiment-driven markets. Once-promising VC projects are gradually being marginalized under the pressure of institutional capital centralization and retail emotional speculation.