$FHE Many people simply attribute the slump of altcoins to a lack of money and liquidity,
but that's just the surface.
The real change lies in the fact that: the market ecology and the mindset of participants have completely changed.
The era where a single story or concept could drive the price of a coin to the sky is over.
Current funding is more rational and selective,
old tricks no longer work in the market.
Currently, it's tough for altcoins, and the core issues are two points:
no innovation and overvaluation.
In the past few years, many projects simply piled up concepts,
with no products launched and no real scenarios,
relying solely on storytelling to support valuations.
But now, no one is willing to pay for such narratives anymore.
On the other hand, VCs have pushed valuations too high during the bull market,
with many projects launching at a market cap of several billion dollars,
retail investors entering the market often just to hold the bag,
this structure itself cannot sustain a lasting market.
The reality is that capital is becoming highly concentrated.
Just like in the U.S. stock market,
a few leading projects have siphoned off most of the funds,
the remaining altcoins can only exist on the fringes.
Project teams are also aware,
that a slight pullback can lead to a crash,
so they simply choose to stay low-key and survive.
The result is:
new coins frequently plummet below their initial value, even faith can't hold up.
In such an environment,
hoping to hold long-term for wealth is basically unrealistic.
The current pace can be summed up in three words:
short, fast, exit.
Seize the opportunity, take a wave, and withdraw,
if you’re slow, you might not even get a sip.
When the next round of liquidity truly warms up,
the opportunity may come again,
but at that time, it won't be about luck.
In short:
the current altcoin market,
is no longer about closing your eyes and waiting for a pump,
but rather a fast, precise, and ruthless game.
Only those who can adapt to the new rules
are qualified to stay in the game.
