Except for a few sectors such as meme and AI, and a few projects such as SOL that are expected to take over ETFs, the performance of most altcoins in this round of market cycle can be described as "disaster". There are three main reasons why altcoins perform so poorly:

The approval of ETFs has led to changes in the market's liquidity transmission mode. In the past, the path for incremental funds to enter the market was generally "stable coins - BTC, ETH - altcoins", but now incremental funds from traditional markets are more inclined to invest directly in BTC through ETFs, which also leads to the inability of funds to continue to transmit, resulting in a lack of liquidity in the altcoin market.

The continuous unlocking of "VC tokens" has brought continuous selling pressure, resulting in a market pattern of "supply exceeding demand" - Looking closely at the circulation changes of some altcoins, you will find that although the prices of some tokens continue to fall, the circulating market value continues to hit new highs.

New projects that opened at sky-high prices are constantly sucking the remaining liquidity in the market. io.net, ZKsync, LayerZero, Blast... A large number of popular projects that have been hyped for a long time have been launched one after another, and the FDV is generally at the level of billions of dollars, which has further aggravated the lack of liquidity in the altcoin market.

Considering that the convention of "altcoins do not move when BTC rises, and altcoins collapse when BTC falls" has been broken, the situation of altcoins in the circle will be better in the future!