Author: THE ALTCOIN INVESTOR
Compiled by: TechFlow
Compared to previous cycles, we are still in the early stages.
Market adjustments are inevitable.
In previous cycles, the market has experienced much deeper corrections. For example, the correction in 2016-17 was between -25% and -35%, while the correction in 2020-21 was between -50% and -63%.
Source: Glassnode
While liquidity is the same as in 2021, the number of tokens has increased 50x.
In other words, it is now much harder to find tokens that offer 100x returns.
Bullish catalysts.
Potential bottom signal: ETH sentiment is now at its lowest point in 2024 and is close to turning negative.
Possible opportunity: DeFi valuation is low
In the summer of 2020, the cryptocurrency world witnessed a phenomenon that has come to be known as “DeFi Summer.”
This period marks an important turning point in the adoption and development of decentralized finance (DeFi) platforms.
At the time, users frequently jumped from one DeFi project to another, chasing higher rewards.
This frenzy brought massive selling pressure, which, combined with token unlocking by investors and team members, caused the price to drop by more than 80% from its all-time high.
