This bull market may have the most significant diminishing returns of all cycles, and here’s why:
First of all, the starting price of new coins in the current market is generally set relatively high. Compared with the previous low, the market capitalization floor of this cycle is approximately ten times higher. Nowadays, there are many types of altcoins on the market, and various narratives and tracks emerge one after another, causing the dilution phenomenon between currencies to become more serious.
To look at it from another perspective, in the past, only about 2% of people in the United States held cryptocurrency, but now this proportion has exceeded 25%. Given this current situation, it will be difficult for us to increase the number of people holding crypto assets tenfold. This will require more capital to drive the market. However, as far as the current situation is concerned, the number of altcoins will continue to increase, various tracks will continue to emerge, and funds will be dispersed wider. Therefore, for those investors who buy spot and hope to win, it will be more difficult to see outsized returns similar to those seen in previous cycles.
Excellent narrative, incremental funds and incremental users, these three need to appear at the same time to bring about a bull market for "lay-win" investors.