The fact that CN Coins do not increase or the price increases a little and then dumps is a natural adjustment that the crypto market has to go through. Like macroeconomic cycles, the crypto market also follows large and small cycles, typically a 4-year cycle, where asset types are alternately "dominated" by crowd sentiment, leading to to the shift from one extreme to another.
Phase 1: Blockchain revolution and the rise of technology coins
Initially, the blockchain revolution motivated people to look for groundbreaking projects that promised real value. $ETH $EOS $SOL ,... are typical examples, attracting capital from both individual investors and venture capital funds. A series of "valuable" projects are built and priced increasingly high with the expectation of reselling to retailers in the bull market.
Phase 2: Meme coin takes over, technology coins are "estranged"
When the market is gradually saturated with a large number of top coin tokens being unlocked, FDV is diluted => the price drops. Investors are discouraged and no longer collect CN Coins. Instead flock to #memecoin , ignoring their high-risk, speculative nature. Meme coin has become a "gambling casino" with huge cash flows, promising huge profits, but also has the potential for catastrophic collapse.
Stage 3: The meme coin bubble burst, the market plummeted
Meme coin cannot increase in price forever. When the cash flow dried up, the big guys started selling goods => the meme coin bubble burst => causing the entire market to plummet. Coin CN, which was already weak, continues to be forgotten in the Bearmarket.
Phase 4: Return of value
After the storm, the market purified, real value emerged. Coin CN with a reasonable valuation and long-term growth potential will attract cash flow again, promoting a new round of growth.
Stage 5: Meme coin revives, cycle repeats
Money earned from Coin CN will flow back into meme coin, sparking a final wave of the cycle, before everything repeats from the beginning.
Although the market fluctuates unpredictably, basic laws still govern its flow, like the pendulum of a clock, bringing the market from peak to abyss, then continuing its journey again. Meme coin or Coin CN are all part of that cycle, creating a colorful, volatile and attractive picture of the crypto market.
Where do you think we are in this cycle? Comment below to discuss!!!
