The Labubu craze has finally run its course, at least according to recent market sentiment. What once seemed like an unstoppable collectible phenomenon is now looking pretty deflated. The speculative frenzy that drove prices skyward appears to have cooled significantly as reality sets in. Many who rode the hype wave early are now questioning whether the digital collectibles space still has legs, or if we've just witnessed another boom-and-bust cycle in the NFT world. Market cycles like these are pretty typical in Web3—rapid enthusiasm followed by harsh corrections. The question now is whether projects in this category can rebuild trust and create real, sustainable utility.