Many people now blame the inability of altcoins to rise on the lack of interest rate cuts and liquidity. They are eagerly waiting for the Federal Reserve to show mercy and bring forth a downpour of liquidity. However, I believe that even if interest rates are cut, altcoins won't see any significant improvement. Many of those hoping for rate cuts have developed a dependency on the events of 2021, where the massive global liquidity injection was a key factor in the bull market. But more importantly, there was a simultaneous surge of innovation in the crypto space, along with a strong belief in Web3 across various industries. The narratives of who can run faster and the crypto market being a big casino have taken root, and the competition is more about who can hold on longer with diamond hands. Therefore, after rate cuts and liquidity injections, there needs to be a reservoir to absorb it.
Is the recent bull market in crypto and stocks related to interest rate cuts? It's still due to the scarcity of assets. Why do many in the crypto space have such absurdly low estimates of Circle's market cap? Ultimately, it opened four times lower than expected, not because the entire US stock market's stablecoin concept can only buy Circle, but because in the crypto space, you can't even count the stablecoins available for purchase.
So even if liquidity is injected now, where is the reservoir? It's in BTC, with only a little trickling down to ETH and SOL. As for altcoins? "Finally, we've endured to the point of liquidity injection, let's hurry up and issue coins!"
I have always felt that the dilemma of altcoins is not a liquidity problem, but that there are indeed few people who still believe in the "story" of leeks that can survive until now, even if the control rate is 99%, the fundamentals are not good, spend money to engage in mindshare, how to shout up by mouth, how to come down, and the buying orders brought by publicity may not be enough to cover the cost. But looking at Aave and Hyperliquid, these two hard ones are like they are still in a copycat bull market. This is quite similar to the US stock market, no matter how abundant the liquidity of the large market is, it will rarely flow to small and mid-cap stocks.
In the last round of VCs, they first looked at the project party's TO exchange ability, but even if they were lucky in this round, these projects really did not have the ability to hold the price.
It's good, whether it's a first-level VC or a second-level leek, they all have to return to the judgment of fundamentals in the end, and three things are indispensable:
1. Whether the product or service creates value for users
2. Whether there is revenue generation and growth
3. Whether the token can capture these revenue generation
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