IMPORTANT POST
WHERE DID THE 100X CRYPTO
PROJECTS GO ? WHY RETAIL DON’T
CARE ABOUT BIG FUNDAMENTAL
PROJECTS ANY MORE ? WHY THE
SENTIMENT IS SO LOW ?
Simple - all These High FDV Project
Launches Are now Pushing Retail
Investors Away From Fundamental
Projects with experienced teams.
People only seem to care about
memecoins now and big projects
created this problem themselves.
Let me explain.
What is FDV?
Fully diluted valuation (FDV) represents the total value of a cryptocurrency project if all its tokens were in circulation.
FDV vs Market Cap
The market cap shows the current value of a cryptocurrency project by multiplying the current token price by the total number of tokens in circulation.
Now Crypto has become a place where you need lots of money to make more money.
There are very limited 50x-100x opportunities right now where retail can make life-changing gains.
VCs and new crypto projects have made it almost impossible for retail to win in this market condition.
Nowadays, crypto projects are launching at such high FDV that they have very limited upside potential left.
Let's see a few recent crypto launches and their FDV at the time of their launch:
1️⃣ Wormhole
➬ Launched in April with an FDV of $15B
2️⃣ EtherFi
➬ Launched in March with an FDV of $5B
3️⃣ Ethena
➬ Launched in April with an FDV of $10B
Apart from them, there were other projects like SAGA, DYM, and REZ, which all launched with an FDV > $2B
The only chance for retailers to make money through these protocols was through airdrops, but now it has completely become a game for the ultra-rich.
Very Few big FDV projects are been
successful but most have been just
hanging there.
But this was not always the case.
In the last bull run, several crypto projects pumped 100x-1000x, and retail made a ton of money from them.
Here are a few examples
1️⃣ Solana
➬ Launched in April with a market cap of just $7M and peaked in 2021 at $98B
➬ 14000x in just 18 months
2️⃣ Polygon
➬ Launched at a market cap of < $20M despite being a Binance launchpad
➬ Peaked at over $20B, an astonishing return of 1000x in just 2 years
3️⃣ Axie Infinity
➬ Launched on Binance launchpad in Nov 2020 with a market cap of $7M
➬ Peaked at $11B in 2021, a gigantic 1571x in just one year
There are several other projects too, like GALA, OCEAN, and FTM, that launched at a very low market cap and gave life-changing returns.
Rather than launching at $2B+ FDV, they build it to become a billion-dollar crypto.
Why Is This Bad?
For an AltSeason, retail influx is very important.
Right now, retail is entering the crypto market, but they're not focusing on fundamental coins as they have very high FDV.
If you look at the Binance top 10 coins with the most volume, 6 of them are memecoins.
This shows that retail is mostly interested in memecoins right now.
Reasons 👇
• Memecoins gave everyone an equal chance of participation
• Memecoins usually launch at < $5M FDV
• Memecoins are fun, and nowadays exchanges are also listing them very frequently
Will this AltSeason be different?
Just like every bull run, there'll be another AltSeason, but this time it could be a bit different.
IMO, retail is going to max bid memecoins this cycle to such an extent that it has never happened before.
Most fundamental tokens will not give crazy returns as they're already overvalued and retail is not interested in them.
In crypto, no one wants to be an exit liquidity, and with large VCs involved, it's usually retail on whom the tokens get dumped.
That's all from my side.
Hit like and repost if you found this info helpful.
Share your thoughts in the comments about the current crypto market dynamics