“Crypto majors SOL, AVAX, APT, SUI have corrected 40% to 70% in recent months, impacting altcoin sentiment. However, BTC and ETH are only 15% off their yearly highs. 😅

Venture capital funds have to sell tokens to make a profit on the investments they made in previous years. This has “particularly bad consequences” for new tokens and airdrop programs, especially those with large lockups, said Anagram partner David Shuttleworth.

The crypto market is undergoing a healthy consolidation after a massive rally from October to March — at least for those invested in the two largest digital assets. But for those holding smaller coins, this is a brutal correction reminiscent of bear market despair in crypto social media circles.

Bitcoin {{BTC}} and Ethereum's ether {{ETH}} are just 15% below their yearly highs, while several crypto majors like solana {{SOL}} and avalanche {{AVAX}} are down 40% to 50% from their March peaks. -1 rivals sui {{SUI}} and aptos {{APT}} dropped 60% to 70%.

A significant part of the selling pressure to make a profit on early investments in projects launched in previous years comes from venture capital funds.

“Venture capital funds invested $13 billion in the first quarter of 2022 as the market spiraled into a steep bear market,” Markus Thielen, founder of 10x Research, said in a report earlier this week. “These funds are now under pressure from their investors to return capital as artificial intelligence (AI) becomes a hotter theme.”

While market appetite for smaller, more speculative crypto assets is waning and trading volumes are falling – as they have been for the past few months – there simply isn't enough demand to absorb this supply shock.

So what do you think? We are waiting your comments!#cryptocurrency#DeFi #Web3"