The current weak performance of the altcoin market is mainly caused by the following factors:

1⃣️Frequent launch of new coins: Recently, new coins such as ZRO, ZK, IO, LISTA, etc. have attracted a lot of funds, and the market value of these new coins is often set very high at the beginning, and then a large number of tokens are unlocked, further diluting market funds.

2⃣️Insufficient liquidity: The altcoin market has been facing a liquidity shortage since March and April, and funds have gradually flowed to mainstream cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH).

3⃣️Lack of support from project parties: Many project parties have not shown long-term confidence and support for their own coins, and lack of market protection behavior.

4⃣️Rapid changes in market heat: The rapid launch of new coins and the rapid changes in market heat make the current currency circle more suitable for short-term trading rather than long-term holding, and long-term investors are prone to fall into an unfavorable situation.

The current market's hope lies in institutional positions, especially if large institutions such as BlackRock increase their investment, and the approval of the Ethereum ETF can bring a large amount of new funds to the market and improve liquidity. If market liquidity is not effectively improved, the recovery of the altcoin market will face challenges.