The fall of the Internet capital market: What is behind the fall?

The Internet Capital Markets (ICM) division has raised questions about the possibility of long -term survival due to a sharp decrease in activity. The Break App’s trading volume plunged 80% from last week’s highest.

At the same time, the creation of new tokens also decreases by 77%, showing a slowdown in market interest.

Is the end of the Internet capital market getting closer?

According to Dune Analytics’ data, the daily trading volume of ICM tokens continued to decline since its peak at $ 773 million on May 14. On May 20, the trading volume was $ 143.6 million.

Similarly, the number of new tokens created per day dropped from 4,977 on March 13 to 1,134 from May 20.

It is also believed that the APP has promoted the creation of more than 23,000 tokens to date. But only 5.3% of these tokens were activated.

This low activation rate suggests that many tokens may not be traction or attention from users. This indicates the lack of supply or utility in the fired tokens.

This trend also led to rapid criticism from industry observers. Analyst Mars Defi recently pointed out the erosion of user trust in ICMS in a statement on X (previous Twitter). He thought it was due to the inflow of “empty tokens” driven by the meme coin craze.

“The user had to believe in the formation of a new capital. Instead, there was noise. Now we have a fatigue point.

Analysts argued that the original vision of ICMS, which wants to foster valuable product -oriented projects, was damaged by low -effective launches with little material. He also pointed out that the era of the meme -centered market is disappearing.

According to him, the problem is not the meme itself, but rather does not provide any more materials or reliability needed to maintain long -term attention.

“The final game is not a lunch pad. It is a liquid, a distributed capital market.” It’s not to fire and disappear, but not to launch a product and to build it openly. It’s the power of ICM.

HITESH MALVIYA, a co-founder of Dyor, warned that the ICM story could only maintain momentum for 4-6 weeks before. As this sector shows signs of peaks, the peak signs can be concretely embodied.

Nevertheless, not all development refers to a permanent stagnation. Break’s founder, Ben Pasternak, recently announced the launch of The Break API.

Pasternak said, “The goal of the Believe API is to make it easier for the building to create a harmony between the product and the coin.

This development can attract more builders to the platform. In addition, by allowing developers to integrate better features into the project, it can promote the revival of token production and trading volume.

In addition, the default network is closely watching the Internet capital market trend. Jesse Pollak, the bass and coinbase wallet officer, told Beincrypto that he is growing token generation and the growth of distributed applications, which are increasing as part of this new ICM trend.

Pollak said, “We are basically happy to see the steady increase in TGE and new apps. We see all of this as an Internet capital market, and we see $ 14 billion+ assets as the center of emerging world economy.”

It also emphasized the role of BASE for encryption economy by providing infrastructure and tools to users and developers.

“If we want to bring billions of people to all chains, one day more things will be tokenized, and the basics provide infrastructure and tools for both consumers and architects to distribute tokens more easily.”

Nevertheless, the challenge still remains. If the ICM division hopes to regain and maintain the user’s trust, it must change the focus to a project with a type of utility in speculative and meme -based launches.