Original author: THE ALTCOIN INVESTOR
Original translation: TechFlow
1. Compared with previous cycles, we are still in the early stages.
2. 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 reached -50% to -63%.
Source: Glassnode
3. 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.
4. Bullish catalysts.
Bitcoin ETFs continue to see inflows
Ethereum ETF Coming Soon
Regulatory shift
Interest rates are at historical highs, and have already started to fall in the EU and Canada
Stocks at all-time highs
Gold nears all-time high
Stablecoin supply is at all-time highs
Circle’s stablecoin complies with MiCA standards, driving financial and commercial integration
Stripe integrates stablecoins
PayPal’s new $PYUSD growth ($405 million issued)
Blackrock promotes asset tokenization
Newly issued altcoins have fallen by about 80%, resetting valuations
Polymarket gains traction outside of crypto-native space
Blockchain is finally starting to scale
Finally, when the issues with Germany, the U.S. government, and Mt. Gox are resolved, the final suspense will be cleared.
5. 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 created massive selling pressure, which, combined with token unlocking by investors and team members, caused prices to fall by over 80% from their all-time highs.
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