Compared with the altar status in the past, the collapse of VC coins in 2024 is a foregone conclusion. High valuation (FDV), low circulation, and the characteristics of "letting retail investors take over" seem to have become synonymous with VC coins. What is the root cause of the collapse of VC coins? What impact will this "VC coin effect" have on the entire crypto market? Why are VC coins criticized? The most important thing is, how can VC coins get rid of the narrative dilemma and achieve new development? It is not just VC coins that are in crisis, but the entire crypto market VC and the so-called "VC coins" have become the object of blame in the current environment. Although there are many views that VC coins are the culprit of this round of "difficult to take over in the bull market", this is not the case. If you make a comparison, you will soon find that not only VC coins, but also fully circulated altcoins and even Ethereum (ETH) have experienced a continuous decline. Looking back at the DeFi Summer era, the initial circulation rate of most tokens did not exceed 5%. Therefore, the simple lack of liquidity cannot fully explain the collapse of these tokens. From a macro perspective, the law of "four-year bull market cycle" is no longer applicable. Since the second quarter of 2024, the market has been in an abnormally low liquidity state. The peak of BTC's market capitalization share appeared later than the high point of BTC price, which usually corresponds to the bottom of the market in previous cycles. This time, even if BTC hits a new high, it did not drive a general rise in altcoins, even including ETH. This shows that the entire crypto market is facing a comprehensive crisis, not just VC coins.
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