The current capital-driven benefits have obviously temporarily failed. Some objective factors have led to the current market situation of low circulation and high FDV:

1. The market is fragmented, with more wolves and less meat: In the last round of bull market, global capital was working together to hype DeFi and public chains, but in this round of the market, funds and participants are too dispersed, narratives are diversified, and capital from the East and the West do not take over each other. It often happens that there are not enough takers for the coins issued, and the market is fragmented;

2. Lack of copycat bull market, insufficient hype power: The infrastructure of the EVM public chain has been perfected, funds and projects are rolling in the same direction, and the Ethereum killers have not brought new breakthroughs. In the absence of a bull market for altcoins, similar projects quickly emerged after the benchmark projects came out, which in turn aggravated the value depression effect;

3. Simple things are complicated, and complicated things are story-telling: Pseudo-innovation can be seen everywhere in the market, and simple things are artificially complicated, just to tell the market about bigger dreams, which is essentially the same thing in a new bottle;

4. The Matthew effect is becoming more and more obvious: the crypto industry has been developing for nearly 16 years, and the top monopoly benefits have basically been generated. Whether it is technology, projects, or investors that have survived to this day, the strong are getting stronger and the weak are getting weaker, and the market voice of top companies is becoming more and more stable;

5. Lack of innovation and liquidity: The primary challenges facing the current market are the lack of innovation and insufficient liquidity, which makes it difficult for the market to increase in volume and the overall development is in a bottleneck.