Why do altcoins behave like "dead" in the current market?
There are several main reasons:
Exchanges have over-listed new coins: Recently, exchanges have continuously listed multiple new coins, such as ZK, ZRO, IO, lista, etc.
These new coins have not been strictly audited, have too high market capitalization, and have serious false propaganda problems, and a large number of tokens have been unlocked.
Insufficient market liquidity: There are many types of altcoins, and the primary and secondary altcoins are seriously sucking blood. Although the inflow of funds from Bitcoin and Ethereum ETFs has increased slowly, the liquidity of altcoins is still insufficient.
Project parties lack long-term planning: Many project parties sell off soon after going online, and are basically unwilling to support market prices. After the old coins disappear, they will directly launch new coins for harvesting.
The market hype atmosphere has weakened: There is a large hype gap in the market, and any small disturbance may lead to a drop in prices. The contradiction between value-based coins and supporters is intensifying, making it difficult to hold coins for a long time.
The only hope for the market at present may come from the joint pull of institutions.
With the approval of the Ethereum ETF and the increase in liquidity, the instability of the market is expected to ease. At the same time, the market also needs to pay attention to the impact of factors such as interest rate cuts and national elections.
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