Crypto can’t thrive on VCs and FOMO forever

Crypto feels unstoppable in the wake of the US presidential election. Bitcoin (BTC) soars past $100,000 for the first time—a number that felt like a pipe dream just a year ago. The air is thick with FOMO as investors and entrepreneurs scramble to ride the wave. But let’s not get swept away. Moments like these are exciting, sure, but they can also blind us to the fundamentals. If we want blockchain to truly succeed, we need to shift focus from speculative surges to building products that generate sustainable revenue.

I get it. The excitement is contagious. Volatility and moonshots are part of the DNA here. But this time, the excitement isn’t just 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 boundaries, and tokenization is evolving fast (even if memecoins occasionally make us cringe).

The growth we actually need

Yes, metrics like growing TVL and the popularity of Bitcoin exchange-traded funds show the ecosystem is expanding. And sure, it’s normal for tech startups to lean on venture capital in their early stages. But let’s face it: no industry can thrive indefinitely on venture funding alone. Eventually, every company has to stand on its own two feet—and that means generating real revenue.

Think of early-stage crypto projects as babies in the womb. They rely on an external lifeline—VC funding—for survival. But at some point, they’ve got to breathe, walk, and thrive independently. That’s where we are now. Crypto is ready to step into the world and prove it can not only innovate but also sustain itself.

For too long, growth has been tied to inflationary token models. While these systems make sense technically, the value they create is often illusory—more about circulating supply than real demand. Thankfully, we’re starting to see new models emerge. These aren’t just about speculation; they’re about solving real problems, unlocking mainstream adoption, and scaling in meaningful ways.

Don’t get comfortable

Crypto startups must aim higher than just pumping valuations or driving quick returns. Token prices are flashy, but they’re not the endgame. Our focus should be on building sustainable, interoperable economies. Models built on the assumption that a native token will “just keep going up” are inherently unstable, feeding the skepticism that clouds crypto in traditional markets’ eyes.

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

One significant opportunity is interoperability. Think about why people value the dollar—it works everywhere. Now imagine if every store you visited had its own currency. Shopping would become a logistical nightmare. Crypto shouldn’t fall into that trap. Instead of flooding the market with isolated tokens, we should focus on useful rewards and assets across platforms.

This doesn’t mean sacrificing blockchain’s unique advantages. Many L1s and L2s support tokens that are compatible with products across DeFi and beyond. It’s time to lean into tokenomics that reward users with assets they can use, not just hold as speculative bets.

The bottom line

Blockchain is a revolutionary technology with the potential to overhaul global infrastructure. It’s like replacing steam engines with bullet 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.

The hype cycles will come and go, but the possibilities are limitless if we focus on creating products that deliver clear value and grow sustainably. This isn’t just wishful thinking—we’re ready to make it happen. The foundation is here, and the potential is enormous. Let’s not waste it.

Yair Cleper

Yair Cleper is the co-founder and CEO of MagmaDevs, a team of expert blockchain engineers shaping the future of web3 infrastructure, and a contributor to Lava Network, a decentralized marketplace for data providers that processes transactions and user requests across over 40 blockchains. An accomplished serial entrepreneur, Yair launched his first company at age 21 and has since founded multiple successful startups. He served for six years as the solo founder and CEO of Supersmart—the world’s first cashierless supermarket checkout solution. Under his leadership, Supersmart scaled to process $1 billion annually for top retailers in more than nine countries. In addition to Supersmart, Yair has co-founded groundbreaking startups like Ogmenti, specializing in augmented reality, and Octopai, a business intelligence platform. Across his ventures, he has raised over $50 million in funding, built teams of hundreds, and achieved two successful exits.