Taking advantage of the adjustment in BTC and meme sectors, funds are rotating into Ethereum ecosystem tokens and lesser-known altcoins. However, some established altcoins, such as XRP, ADA, XLM, and EOS, have seen larger gains, with XRP even re-entering the top three by market cap, reaching as high as $250 billion.

These tokens share a characteristic: after a long period of bottom consolidation, lacking hotspots and concepts, retail investors' holdings have dwindled, and large players have a high degree of control. Therefore, even with a large market cap, the resistance to price increases is relatively small.

Compared to the past, this cycle has seen more VC-backed altcoins and meme coins, which to some extent has disrupted the original rotation order, but the market trend and cycle generally do not change. The price increase of lesser-known old coins does indeed indicate market risk to some extent; the rise can be rapid, but the fall may also be swift. Especially since this round of altcoin season lacks ecological narratives, the number of coins and the overall market cap are much higher than in the previous cycle, relying purely on capital to drive prices up seems somewhat hollow.

But when will this market end? It’s hard to say; it requires obvious negative news or a widespread short squeeze in contracts. For some old coins that have seen significant short-term gains, it may be worth considering reducing positions to secure profits.