The formation of liquidity desertification phenomenon
The process of turmp creating a hundredfold myth is essentially the beginning of the market liquidity siphon effect. The subsequent follow-up of TRUMP creating a hundredfold myth is essentially the beginning of the market liquidity siphon effect. The subsequent follow-up projects like Melania and $LIBRA further exacerbated this trend. When TRUMP held the crypto summit, market participants mistakenly viewed it as a policy boon, but in fact, it marked the ultimate realization of Web3 traffic value. By this point, the liquidity foundation of the cryptocurrency market has essentially collapsed.
This judgment has been continuously validated by subsequent market events: from the HYPE main fund's squeeze on HLP liquidity, to the ruthless selling strategy of GPS market makers, and the flash crash triggered by ACT due to exchange rule adjustments, these black swan events collectively reveal a brutal reality - market liquidity is on the brink of exhaustion. It is worth noting that after the HYPE event, mainstream exchanges have begun systematic adjustments to leverage ratios and position limits, and these risk control measures have instead accelerated the evaporation of liquidity.
The logic of reconstructing the valuation system
Taking the plunge of sats as an example, it appears to be an irrational sell-off by main funds, but it actually implies profound market logic. In the context of continuous liquidity shrinkage, the traditional sitting position model has become ineffective. The plunge of SATS, for instance, appears to be an irrational sell-off by main funds, but it actually implies profound market logic. In the context of continuous liquidity shrinkage, the traditional sitting position model has become ineffective. SATS's long-term sideways movement at a valuation platform of 250 million dollars might have originally harbored some kind of trading plan, but the deterioration of the liquidity environment forced main funds to choose 'liquidation to escape'. The same script is being replayed in projects like $MASK, and this reconstruction of the valuation system will become increasingly common.
Survival rules of the post-altcoin era
Historical data shows that the real altcoin boom cycle concentrated in 2020-2021, driven by the two major innovation engines of DeFi and NFT, along with a massive influx of off-market funds. However, after Bitcoin reached an all-time high in 2024, the anticipated altcoin season did not arrive as expected. This is not a market failure, but rather the industry has entered the 'post-altcoin era' - characterized by:
Fragmentation of narrative scale (this cycle mainly comprises inscriptions and SOL ecological meme coins)
Capital turnover speed increases exponentially
Opportunity window period sharply shortened
In this market environment where liquidity continues to recede and valuation benchmarks keep declining, maintaining capital liquidity is far more important than chasing returns.
