Recently, American news reports described the altcoin market as a "garbage dump", which undoubtedly sounded the alarm for investors.

In this bull market led by Wall Street institutions, the performance of the altcoin market is indeed remarkable, but the risks cannot be ignored.

Although the total market value of the altcoin market is still at a historical high, the price of a single altcoin has generally fallen.

At the same time, the market value of new coins has also soared rapidly in this round of bull market, from tens of millions directly to hundreds of millions. Skirt--Exchange--Flow QQ +2763827485

Behind this surge in market value, there is also a large number of altcoins unlocked and circulated, which undoubtedly increases market uncertainty and risks.

There are no new hot spots in the Ethereum ecosystem, which also makes investors full of doubts about the future of the altcoin market.

The last round of NFT craze has driven the prosperity of the entire market, but what new hot spots will emerge in this round of bull market?

And those altcoins focusing on the AI ​​field, do they have real applications to support their market value?

Unlike retail investors, institutional investors will be more cautious and rational when entering the market. They will not blindly follow the hype, but will comprehensively consider multiple factors such as the actual value of the project, the strength of the team, and the market prospects.

In the long run, the bear market in the altcoin market may not be a completely bad thing. It helps to eliminate those altcoins that lack actual value and support, allowing truly promising projects to break through.

This also means that there will no longer be a general rise in the altcoin market.

After a round of plunges and reshuffles, institutional investors will only choose those altcoins that really have potential for investment.

Therefore, investors need to be more cautious in selecting investment projects, just like looking for treasures in a garbage dump, which requires unique vision and judgment.