August 5, 2025
5 min read
Foresight News
Explore how Wall Street's entry and IPO fever are transforming the altcoin market and crypto industry dynamics in 2025.
Cryptocurrency Baptism: Encountering Wall Street
Summary: Sir, the times have changed! Author: Bright, Foresight NewsWill the Altcoin Season Come Again?
This is a question that almost all crypto players are asking. During the last bull market from 2020 to 2021, few were shouting "All in BTC," while during DeFi Summer, numerous altcoins surged fivefold. The total market capitalization of cryptocurrencies skyrocketed from about $200 billion in January 2020 to slightly over $3 trillion in November 2021. It can be said that 90% of those who truly turned the tide in this bull market were supporters of altcoins. However, the harsh reality is that while new assets will definitely come, an explosive altcoin season—seeking to find a sword in the boat—is already unlikely under current circumstances.The Defeated Army of Altcoins
While many are still waiting for the altcoin season, four years later, the crypto industry has quietly approached the end of the bull market. From 2024 to mid-2025, the total market capitalization of cryptocurrencies has actually grown dramatically by 130%.- On November 15, 2021, BTC reached a peak of around $69,000, and the total market capitalization of cryptocurrencies peaked at about $3 trillion.
- On July 14, 2025, BTC reached a peak of $123,091, and the total market capitalization peaked at about $3.91 trillion. In contrast, considering the garbage Memecoins rushed to issue during the Meme craze, there are already millions of altcoins on-chain. This time, altcoins have suffered a major defeat.
- VC-led setups and carefully designed low liquidity, high market cap strategies are no longer viable.
- Unregulated Meme coins continue to bleed after retail investors lost interest.
- DeFi has not become the first choice for institutional hot money. In fact, wealthy institutions on Wall Street entered crypto with a three-step approach:
- Use capital power to control Bitcoin—the most "decentralized" and highest consensus crypto—gaining a voice in the sector (e.g., Grayscale's Bitcoin ETF).
- Penetrate and expand their financial power into crypto, attracting native crypto investors to switch investment categories (e.g., stock tokenization and altcoin "micro-strategy" companies).
- Issue new crypto-related assets complying with existing financial regulations, mastering pricing power of crypto assets (e.g., crypto company IPOs). The hot money native crypto investors hoped for from Wall Street did not flood into the already crowded "decentralized" track. Instead, Wall Street chose to play its own game—and wants to force others to play theirs with cold hard cash.
- P2P model: The platform matches sellers of Kraken equity with buyers, assisting in KYC, due diligence, and contract signing.
- SPV model: The platform establishes a special purpose vehicle (SPV) to pool buyer funds and collectively purchase equity. Currently, the price on the Forge platform is $36.13, with a valuation of about $10 billion. If Kraken successfully goes public at a $15 billion valuation, current entrants may achieve over 50% excess returns. In summary, crypto company IPOs are like a rite of passage for the crypto industry. After receiving this recognition, it will gain widespread acknowledgment from the world—but must shed outdated trinkets of its childhood. Yes, we are talking about those garbage projects that cannot calculate price-to-earnings ratios and only know how to create PowerPoint presentations.
- Capitalizing on Bitcoin as the most "decentralized" and high-consensus crypto (e.g., Bitcoin ETFs).
- Expanding financial influence into crypto by attracting native investors (e.g., stock tokenization).
- Issuing new, regulated crypto-related assets to control pricing power (e.g., crypto company IPOs). Q: Did Wall Street's "hot money" flow into existing decentralized platforms? A: No, the article indicates that Wall Street did not primarily invest in existing decentralized tracks but rather created its own game, focusing on established financial instruments and compliance.
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In response, perhaps all we can say is: Sorry, we failed.The reason we cannot "Make Altcoin Great Again" is that the crypto industry, now focused on compliance, is experiencing the painful process of cutting away the excess fat that grew during the wild past.
Wall Street's Land Grab Game
Under the trend of crypto compliance in the United States, Wall Street's regular army—once hesitant to act recklessly—has begun to flood into the risky areas of cryptocurrencies during the Biden administration, planting the colonial flag of financial hegemony on-chain. From the player's perspective, the game structure composed of whales, retail investors, miners, and crypto institutions has vanished. Retail investors, jokingly calling themselves "Nasdaq and Dow Jones crypto traders," have genuinely become opponents of professional hedge funds on Wall Street. From the asset perspective:If you can't beat them, then join them.
The Undercurrent of IPO Fever
On June 5, Circle went public on the New York Stock Exchange, with its stock price soaring over 160% on the first day, eventually reaching a peak of $289.99—a staggering increase of 9.64 times from the issue price of $31. Meanwhile, cryptocurrencies performed only moderately. Circle's return on investment reflects the authentic flavor of past altcoin seasons. Following this, a series of crypto-related companies announced plans for IPOs in the second half of 2025, including domestic exchanges like Kraken, FalconX, Gemini, and Bullish, as well as fintech and asset management firms like Bitgo, Grayscale, and Figure. Reports even surfaced of OKX planning to go public in the U.S. Beyond the U.S. stock market, South Korean exchange Bithumb announced a two-step strategy for listing on the Korean KOSDAQ and the U.S. Nasdaq, while Thai exchange Bitkub stated it would list on the Thai Stock Exchange. On July 30, U.S. exchange Kraken reportedly sought to raise about $500 million at a valuation of $15 billion, further stimulating the crypto industry. Previously, Robinhood announced its entry into stock tokenization, launching equity for top private companies like OpenAI and SpaceX, officially opening up imagination for Pre-IPO. As Kraken stirred listing expectations, private equity trading platforms like Forge provided access and exit channels for those "wanting to sell" and "wanting to buy early." Generally, investors can purchase equity in unlisted companies through two methods:ChainCatcher reminds readers to view blockchain rationally, enhance risk awareness, and be cautious of various virtual token issuances and speculations. All content on this site is solely market information or related party opinions, and does not constitute any form of investment advice.
Source: Cryptocurrency Baptism: Encountering Wall Street