The Truth Behind the Collapse of Old Coins: A Life-and-Death Battle for Liquidity
Recently, many established altcoins (such as some projects from 2017-2020) have seen their prices continue to decline, even falling back to historical lows. Behind this is a brutal 'battle for liquidity':
Institutional funds only recognize 'hard currency'
This round of the bull market is led by Wall Street institutions, with funds primarily flowing toward Bitcoin, Ethereum, and a few compliant assets (such as MKR and RWA projects backed by BlackRock). These funds rarely penetrate down to small-cap old coins, causing the latter to fall into a 'liquidity vacuum'.
The 'New Coin Bloodsucking' Strategy of Exchanges
Leading exchanges like Binance frequently launch new coins, using staking, Launchpool, and other strategies to direct the remaining retail funds in the market toward new projects. Old coins, due to a lack of topics, dormant teams, and dispersed holdings, are gradually forgotten by the market.
Narrative Iteration Accelerates Elimination
In the 2021 bull market, it was possible to rely on 'pie-in-the-sky' promises to pump prices, but now funds only recognize real data: on-chain active users, protocol revenue, and ecological cooperation cases. Many old coins have stagnated technologically, and their communities have become dormant, completely losing their position under the impact of new narratives like AI, DePIN, and RWA.
The conclusion is very harsh: 90% of old coins have already declared 'bull market dead', and any rebound is merely an opportunity to escape.
