$SOL

The last chance to escape! ! !

Cryptocurrency market liquidity dilemma and cycle turning point analysis

The current crypto market is facing a structural liquidity crisis. The leading trading platforms and public chain ecosystem show a significant Matthew effect. Traditional capital is more inclined to chase celebrity IP-type Meme assets such as Trump concept coins, causing the altcoin market to fall into a liquidity depletion dilemma. Historical cycle laws show that when the market falls into a negative-sum game stage (such as the bursting of the ICO bubble in 2018), public chain tokens often encounter systemic selling pressure.

Taking SOL as an example, its ecological prosperity is highly dependent on the false liquidity formed by the speculation craze of Meme tokens such as Pump.fun. The $2 billion token reserve that will be unlocked on March 1 is in sharp contrast to the gradually weakening market demand, and there is a risk exposure similar to the value recovery after Ethereum ICO. When speculative funds stop injecting blood into the Meme sector, public chain tokens may face a downward spiral in liquidity.

The current market is at a critical stage of risk clearing, and the real bottom signal needs to wait for: 1) The Meme token speculation craze completely subsides; 2) The on-chain gas fee drops to a cyclical low; 3) The trading volume of altcoins on mainstream exchanges continues to shrink. By then, protocol tokens with the ability to capture actual cash flow will show anti-fall properties, while assets lacking fundamental support may face the risk of a second halving. It is recommended that everyone maintain a reserve of liquid assets and wait for the market to complete the generational switch.