I heard that a leading wallet is negotiating a new round of financing, with its valuation directly set at $2 billion.

Right now, the Web3 wallet track feels a bit like the chaotic O2O battles back in the early days of the internet—the era of burning money to grab users is over. From here on out, it’s about spending money more precisely and truly delivering differentiated products.

In this kind of bearish market environment, VCs are already cautious with their investments. For a project that has already broken out to still secure large-scale financing, there are really only two reasons behind it: either the business expansion needs more firepower, or they’re laying the groundwork in advance for the next growth cycle.

The wallet track may look like a red ocean, but the landscape is far from settled. Whoever can truly deliver differentiation in user experience, security, and ecosystem integration will have the opportunity to reap the rewards of the next cycle.