Crypto Market Shifts Toward Utility and Regulation Amid Deflationary Trends

Industry figures Tom Schmidt of Dragonfly Capital and Alok Vasudev of Standard Crypto have outlined a clear vision for the future trajectory of the cryptocurrency market, emphasizing a renewed focus on consumer value, usability, and regulatory clarity. Speaking at an event in July 2025, both highlighted how the sector is evolving from a speculative asset class toward one grounded in practical applications and user experience [1].

Their insights reflect a broader shift in venture capital priorities within the crypto space. Investors are increasingly allocating funds to projects that deliver tangible utility and are built on compliant frameworks. This trend is reshaping the landscape of crypto innovation, with a growing emphasis on infrastructure that supports real-world adoption [1]. Regulatory developments have also played a pivotal role in this transformation, providing the stability and clarity needed for long-term investment and consumer trust [1].

The comments from Schmidt and Vasudev align with past industry cycles, such as the surges seen in 2017 and 2021, where innovation in use cases accelerated market adoption. Analysts now see a similar dynamic unfolding, with a stronger emphasis on sustainable models that serve user needs rather than speculative hype. This shift is evident in projects that integrate deflationary mechanics and token utility to build long-term value [1].

One such example is FINVESTA, a project operating on the Pulsechain, which incorporates a 4% burn tax and 1% reflection mechanism to reward token holders. These mechanisms aim to reduce circulating supply and enhance token value over time, mirroring the strategies advocated by Schmidt and Vasudev. With a current circulating supply of 1 million tokens against a maximum of 21 million, FINVESTA’s model emphasizes scarcity and controlled supply, aligning with the broader industry’s move toward deflationary design [1].

However, despite its structural advantages, FINVESTA has experienced a 19% drop in price over the past week, outperforming the broader market decline of 1.6% during the same period. The token’s 24-hour trading volume stands at $13,188.29, representing a 15.4% decrease from one day prior. This dip may reflect broader market sentiment or shifting investor behavior, even as the project continues to operate within the deflationary framework [1].

The project’s fully diluted valuation (FDV) is equal to its current market capitalization due to the low circulating supply. This FDV, a theoretical metric assuming all 21 million tokens are in circulation, offers a potential gauge for long-term value appreciation. Analysts have noted that tokens with well-structured tokenomics are attracting greater attention in a market increasingly focused on sustainability and predictability [1].

The broader implications of these trends suggest a maturing crypto market that is moving toward mainstream adoption. As institutional interest grows and regulations evolve, the industry is shifting toward products that are not only compliant but also intuitive and accessible. This transition marks a critical turning point, where the focus is no longer solely on the underlying protocols but on delivering value through user-centric applications [1].

Source: [1] FINVESTA Live Price Chart, Market Cap & News Today (https://www.coingecko.com/en/coins/finvesta)