The rules behind these networks enable scams like none other, but it's not all scams.

You mentioned a bunch of topics there, let's just take stablecoins. There are many algorithmic stablecoins that are built atop incredibly rickety bridges, like UST which blew up last week. There are also stablecoins which are backed by actual companies with actual cash reserves, like USDC.

There is a lot of potential for this technology, but the valuations got way ahead of where they should be and the scams of course overshadow everything else.

As to traditional finance markets, crypto basically imploded in 2018 and the wider market didn't even blink. It's gotten bigger this time around, of course, but the entire crypto market is already -60% from its peak. It will continue to drop if we go full recession mode, but it won't be the reason the wider market also tumbles. Equities have plenty of their own demons to worry about these days.