The Turbulence in the Cryptocurrency World: The Crisis of Altcoins and the Struggles of Retail Investors
The cryptocurrency world resembles a fantastical and unpredictable otherworld, where changes are constantly unfolding. Currently, the altcoin market is engulfed in an exceptionally fierce turmoil, leaving investors anxious and unsettled.
There was a time when altcoins shone brightly in the cryptocurrency world, like the most dazzling stars in the night sky, attracting a large number of wealth-seeking investors with their novel ideas and enticing prospects. At that time, stepping into the altcoin market felt like opening the door to wealth, and people flocked in, causing the market to boil with activity.
However, as time passed and the cryptocurrency market flourished, the number of altcoins exploded. In 2017, there were only about 3,000 globally; now, it has skyrocketed to 34 million. This vast number of coins has fragmented the limited flow of funds like countless tiny pipes, making it extremely difficult to create a powerful wealth-generating effect again.
Turning our attention to the flow of funds, Bitcoin has undoubtedly become the current focal point. As the industry leader, it attracts countless investments with its high recognition, strong influence, and relatively stable value storage characteristics. In this market cycle, Bitcoin's wealth-generating effect is significant and highly sought after, but its prohibitive price leaves small and medium investors only able to watch from the sidelines.
Looking at the altcoin side, the once short-lived “altcoin season” is long gone, now only appearing occasionally in localized flashes, and then quickly fading away. Reviewing this market cycle, the rules of the game have completely reversed. In the past, investors who easily sold their altcoins often missed subsequent gains, while those who held firmly reaped the rewards; today, for 99.7% of altcoins, holding on not only fails to bring wealth but instead makes one an “exit liquidity provider.” Like the specific periods at the beginning of last year and this year, although altcoins have fluctuated, they have only been a fleeting moment.
In this brutal competition, very few altcoins have emerged successfully. For instance, Ray leverages strong applications and the Solana ecosystem to enhance its value; OM has strong backing to support its price. This indicates that the altcoin bull market has not completely disappeared, but it remains limited to a few specific coins, with the vast majority of altcoins struggling to survive and facing elimination crises, leaving retail investors to suffer and unsure of where to go.
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