Yuga Labs CEO on Today’s Unique Crypto Market Cycle

The crypto market has always moved in cycles of boom and bust, each shaped by innovation, speculation, and overextension. 

Yet according to Greg “Garga” Solano, cofounder and CEO of Yuga Labs, the current cycle stands apart from its predecessors.

Yuga Labs, the company behind Bored Ape Yacht Club, CryptoPunks, and the highly anticipated Otherside metaverse has a front-row seat to these shifts. 

Speaking in a recent interview, Solano emphasized that this cycle represents a structural break from the past, with institutional finance and cultural micro-trends taking the lead where retail-driven consumer hype once dominated.

“Every crypto cycle is a little bit like a revenge on the excesses of the last one,” Solano explained. “This one is very different.”

A Market Cycle Driven by New Entrants

In prior cycles, crypto narratives were often led by consumer excitement, retail investors piling into Bitcoin, NFT mania pushing JPEGs to million-dollar valuations, or gaming tokens surging during the play-to-earn rush.

But this time, Solano points out a striking divergence:

• Institutional Capital: North America is coming on-chain through treasury companies and ETFs, signaling that regulated investment structures are shaping this cycle’s momentum.

• Zoomer Culture: Younger generations are finding their entry point not through DeFi or NFTs, but through memecoins and viral platforms like pump.fun.

This dual-track evolution creates a bifurcated market: one side anchored in institutional finance and long-term infrastructure, and the other driven by youth culture and speculative virality. 

The absence of broad consumer adoption in the middle makes the market feel unusually quiet compared to the fever pitch of 2021–2022.

Read Also: Yuga Labs Just Sold Bored Ape Yacht Club! What Will Happen to Holders?

Blockchain Gaming’s Funding Crunch

One area where this quiet is especially evident is blockchain gaming. According to DappRadar, funding for crypto gaming has plunged by 93% year-over-year, and user activity has fallen sharply.

Just a few years ago, blockchain gaming was heralded as the next frontier. Play-to-earn titles like Axie Infinity exploded, NFT-based land sales surged, and metaverse hype reached a peak. 

Yuga Labs itself saw over $500 million in Otherdeed NFT sales in a single day in 2022, shortly after raising $450 million in funding.

Yet today, the sector faces skepticism. Investors have grown wary of unsustainable economic models, and gamers remain cautious after seeing earlier titles collapse under token inflation and poor gameplay.

Read Also: ApeCoin Soars 100% as Yuga Labs Launches ApeChain: What You Need to Know

Otherside: Yuga’s Bold Vision for Web3

Despite the downturn, Yuga Labs is doubling down on its flagship project, Otherside. Designed as a hybrid between a social space and a video game, the platform aims to enable massive user-generated content, much like Roblox or Fortnite.

What makes Otherside different, Solano explains, is its audience composition. Unlike most blockchain games that target Web3-native players, Otherside’s holders are primarily collectors from the NFT space. Solano stated:

“The core Otherside holders don’t actually overlap a ton with Web3 gaming, “It is a very collector-minded audience.”

This insight is shaping development priorities. Instead of relying purely on gameplay, Otherside integrates community-driven interaction and social mechanics, ensuring collectors, creators, and gamers all find value within the ecosystem.

Financial Strength and Long-Term Commitment

One of Yuga Labs’ biggest advantages is its financial resilience. While many blockchain gaming startups struggle for funding, Solano stressed that Yuga is well-positioned:

“Yes. Hands down. We can do that just with cash without ever even touching any crypto assets that we own,” he said when asked if Otherside has enough runway for two to three more years of development.

With hundreds of millions in reserves, Yuga can afford to outlast the current downturn. More importantly, Solano noted that the team is now shipping at its fastest cadence ever, suggesting momentum is building behind the project even as broader market enthusiasm remains subdued.

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Why This Market Cycle Matters

The unique contours of today’s crypto cycle carry implications not only for Yuga Labs but for the future of Web3 as a whole.

1. NFT Ecosystem Reset: The speculative bubble of 2021 has cooled, pushing projects to focus on utility, cultural value, and sustainable community models.

2. Institutional Adoption: ETFs and treasury companies signal that crypto is entering a phase of mainstream financial integration, shifting the industry closer to regulated markets.

3. Cultural Fragmentation: Zoomers entering via memecoins show that crypto remains a cultural phenomenon, even if broader consumer adoption has slowed.

4. Gaming Evolution: The collapse of play-to-earn hype is forcing blockchain gaming toward quality, user engagement, and social experiences.

Otherside sits at the intersection of these forces: a project backed by deep funding, targeting collectors and creators, and aspiring to redefine what Web3 gaming can be.

Forward-Looking: Can Otherside Become the Roblox of Crypto?

Yuga’s challenge is clear: deliver a platform compelling enough to transcend speculation and become a true cultural hub. 

Roblox and Fortnite succeeded because they blended gaming, social experiences, and creator economies. Otherside aims to do the same, but on a blockchain foundation.

If successful, it could serve as a blueprint for the next generation of metaverse platforms, blending NFTs, community, and user-generated content into a sustainable ecosystem. 

However, with crypto gaming enthusiasm at a low, Yuga faces the pressure of proving that Web3 can add lasting value beyond hype cycles.

Read Also: Massive Whale Purchase of 45 CryptoPunks Sparks NFT Market Frenzy

Conclusion

The current crypto cycle may be quieter, but it is also more structurally significant. With institutions embedding crypto into traditional finance and youth culture keeping memecoins alive, the market is maturing in unexpected ways.

For Yuga Labs, this presents both challenges and opportunities. Otherside must deliver not just as a game but as a cultural platform capable of bridging collectors, gamers, and creators. 

Armed with funding, experience, and ambition, Yuga has the chance to lead Web3 gaming through its lull and into its next era.

As Solano put it, this cycle may feel different but difference often lays the groundwork for transformation.

FAQ

What is Yuga Labs’ Otherside project?

Otherside is a metaverse blending gaming, social interaction, and user-generated content, aiming to rival Roblox and Fortnite in a Web3 context.

Why is today’s crypto market cycle different?

CEO Greg Solano highlights that institutions are entering via ETFs and treasury firms, while younger generations join through memecoins, creating a unique dual dynamic.

How is blockchain gaming performing in 2025?

Funding is down 93% year-over-year, and user activity has slowed significantly since the 2021–2022 play-to-earn boom.

How much funding does Yuga Labs have for Otherside?

Yuga Labs has enough cash reserves to fund 2–3 more years of development without selling any crypto assets.

What makes Otherside different from other blockchain games?

Unlike typical Web3 gaming projects, Otherside focuses on collectors and community, integrating a strong social component with user-generated content.

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