[SERIOUS] The Dilemma of Crypto | To HODL or to Spend?

I'm heavily invested in crypto, and I'm a big fan of it, but I need to be honest with everyone here, I think something's wrong with it.

See, as its name implies, crypto is meant to be used as a currency for monetary transactions.

However, let's be real for a second and take a look at the crypto space today, doesn't the current system incentivize holding crypto rather than spending it?

In traditional economics, users of fiat currencies are encouraged to keep their money in circulation by using it for their day-to-day transactions or to keep them in banks in exchange for some interest. They do this because if people just hoarded their money, the economy will decline, and if left unchecked, the economy could experience recession.

So, looking at crypto from this perspective, isn't HODLing a bit counterintuitive if we want its price to increase? Doesn't its hard coin caps and deflationary nature encourage users to just keep on hoarding their crypto and thus slowing down its "economy"?

One solution I see (please correct me if I'm wrong) is to create something like a decentralized bank governed by smart contracts where holders can keep their crypto and businesses can borrow crypto to fund their projects. This way, the crypto economy will keep on flowing and thus increase its value.

What do you guys think? I want to hear your thoughts since this aspect of crypto is really bothering me.