Current status of the crypto market:

1. Funds have not flowed into the crypto market:

Despite China's monetary easing and the US dollar's interest rate cuts, it stands to reason that more funds should flow into the market. But the reality is that this liquidity has not entered the crypto field in large quantities. Investors prefer traditional assets such as stocks and real estate rather than riskier crypto assets.

2. The pressure on project parties and institutions to unlock and cash out has increased:

In previous cycles, ordinary investors had more opportunities to participate in high-quality projects early, such as through ICOs or launchpads. However, now many new projects are financed through private placements, and ordinary investors cannot participate. When these projects enter the public market, early venture investors have already received several times the return. When their tokens are unlocked, they often choose to sell and cash out, which brings continuous selling pressure to the market and depresses prices.

3. The altcoin market is too fragmented:

Many new tokens have a high fully diluted valuation FDV, but the actual circulation is low. This means that the number of tokens circulating in the market is very small relative to the total supply. At the same time, the number of new tokens with high FDV is too high, further dispersing the liquidity of the altcoin market. As locked tokens are gradually unlocked and enter the market, there will be a continuous downward pressure on prices.

4. Lack of confidence among external investors:

Market volatility and some previous negative events, such as the closure of the FTX exchange and the collapse of the Luna project, have led many external investors to take a wait-and-see attitude towards the crypto market.

5. Lack of new market hotspots:

In this cycle, we have not seen similar innovations that can attract the public's attention to drive market sentiment. ICO, DeFi, and NFT have all brought about a corresponding wave of copycats.