$PNUT $ACT $neiro attracted a large number of retail investors.

To some extent, capital does tend to flow to places with more people. This phenomenon can be explained from several angles:

Market sentiment: When a certain token or sector attracts the attention of a large number of investors, the dissemination of information accelerates. This concentrated attention often creates a “herd effect,” where investors tend to follow the investment direction of the majority, hoping to profit from it. This phenomenon is particularly evident in electronic trading financial markets.

Liquidity: A market with more people usually means higher liquidity. High liquidity means that investors can more easily buy or sell assets, which reduces the costs and risks of trading. Therefore, a large amount of capital will naturally be attracted to these more liquid market areas.

The behavior of KOLs and influencers: Many KOLs cater to the market based on market sentiment. When a hot trend emerges, even if they are not on that train themselves, they still want to join the ranks of those shouting orders, at least to make themselves “have a seat on the train.” In their view, participating in a hot market not only potentially brings higher returns but also attracts retail investors’ attention through massive order calls and FOMO sentiment, further building their personal brand.

Think about the situation when $PNUT $ACT $neiro started to rally; all the capital was rushing in, and everyone was passing the baton.

“Why do coins with more ‘retail investors’ keep falling?”