Crypto Ecosystem Needs a Forest Fire to Clear the Undergrowth
Arboreal ecosystems thrive on a brutal paradox: periodic fires are essential for regeneration. Without them, the forest floor becomes choked, stifling new growth. Dion Lim draws a parallel to technology cycles, where speculative frenzies and subsequent crashes act as cleansing fires.
The dot-com bubble burned away excess, leaving giants like Google and Amazon. The 2008 financial crisis cleared the way for Facebook and Uber. Crypto now faces a similar juncture—overgrown with projects that refuse to fail, hoarding resources needed for evolution.
Packard’s Law underscores the dilemma: revenue growth cannot outpace the capacity to execute. The crypto market’s stagnation may stem from an absence of corrective conflagrations. Until the underbrush burns, the ecosystem risks stagnation.
