Altcoins: Will the bull market return?
Judging from the current market situation, except for a few sectors such as meme and AI, and projects such as SOL that are expected to be affected by ETFs, most altcoins have performed very poorly in this round of the market. The reasons are mainly the following three points:
1. The approval of ETFs has changed the way liquidity is transmitted in the market. In the past, incremental funds usually entered the market through the path of "stablecoins - BTC, ETH - altcoins", but now, funds from traditional markets prefer to invest directly in BTC through ETFs, resulting in a serious lack of liquidity in the altcoin market.
2. The continuous unlocking of "VC tokens" has brought huge selling pressure, and the market is oversupplied. Observing the circulation changes of some altcoins, it can be found that although the price is falling, the circulating market value continues to hit new highs.
3. New projects are frequently launched, sucking away the remaining liquidity in the market. Popular projects such as io, ZKsync, LayerZero, and Blast have been launched one after another, and the FDV is generally as high as billions of US dollars, which further exacerbates the lack of liquidity in the altcoin market.
Despite this, some industry leaders remain optimistic about the future of altcoins.
Rich Rosenblum, co-CEO and co-founder of cryptocurrency market maker GSR, posted on the X platform yesterday that he believes altcoins will return strongly, and this is the most confident he has ever been.
