Let’s first look at the current market situation:
The number of altcoins hit a new high, with 1 million new coins created in May alone, twice the number of tokens on ETH from 2015 to 2023.
The share of altcoins/BTC has been on a downward trend this year and is currently approaching the lowest point of the bear market.
The overall narrative is relatively backward, specific narratives perform significantly better than other narratives, and there is a lack of killer application innovation.
The altcoin market as a whole has entered the PVP stage - there was a general rise in Q4 of 2023, more wins than losses in Q1 of 2024, and extremely dispersed liquidity in Q2 of 2024, with more losses than wins. In summary, the market has no money, and the altcoins are too saturated to pull them up. The overall liquidity is relatively poor, which may be more difficult than the bull market in 2020. The development of everything is constantly evolving and will not remain unchanged. If you play the altcoins of this cycle according to the logic of the previous round, your mentality will inevitably collapse.
The characteristic of this cycle is that funds mainly flow into Bitcoin through channels such as ETFs. As the market improves, the overall funds should also be presented on the top BTC and ETH. The increase in the cottage season may be a hot money play, with local pull-ups on a few hot tracks, and it is difficult to see the spectacular scene of thousands of coins rising together.
Then the copycats in the second half of this cycle must focus on narrative tracks that can be hyped: AI, Depin, MEME. If it is an old coin, you should choose a large exchange that has been through a period of wash trading, the team is good at hype marketing, can keep up with market hotspots, and the main force has enough chips to increase the distribution in the new round of bull market. If it is a super early coin, it is best to choose a brand new asset type + profit distribution model + highly decentralized new asset.
Which ones to choose
Those that are recognized by the market but not favored by the whole nation are the focus of research, so the potential returns are high and the risks are low;
The market has low popularity, such as the mini-warehouse lottery sector;
If you really don’t know how to choose, you can contact me and I will choose a suitable site for you based on your position.
Later, I will bring you analysis of leading projects in other tracks. If you are interested, you can click to follow. I will also organize some cutting-edge consulting and project reviews from time to time. Welcome all like-minded people in the cryptocurrency circle to explore together.
