5 charts show the current state of the cryptocurrency market: adjustments are inevitable, and finding hundredfold coins is becoming more difficult
Compared to the previous cycle, we are currently still in the early stage.Original Title: 《The Current State of Crypto in 5 Graphs》
Author: THE ALTCOIN INVESTOR
Translation: 深潮 TechFlow
1. Compared to previous cycles, we are currently still in the early stages.
2. Market corrections are inevitable.
In previous cycles, the market experienced deeper corrections. For example, the corrections between 2016-17 ranged from -25% to -35%, while those in 2020-21 reached -50% to -63%.
Source: Glassnode
- Although liquidity is the same as in 2021, the number of tokens has increased by 50 times.
In other words, it has become more difficult to find tokens that can yield 100 times returns.
4. Bullish catalysts.
- Continuous inflow of Bitcoin ETFs
- Ethereum ETF is about to launch
- Regulatory shift
- Interest rates are at historical highs, with the EU and Canada starting to decline
- Stocks are at historical highs
- Gold is close to historical highs
- Stablecoin supply is at historical highs
- Circle's stablecoin complies with MiCA standards, promoting integration of finance and commerce
- Stripe integrates stablecoins
- PayPal's newly launched $PYUSD growth (issued $405 million)
- Blackrock promotes asset tokenization
- Newly issued altcoins have dropped about 80%, resetting valuations
- Polymarket gains traction outside the native cryptocurrency space
- Blockchain is finally starting to scale
Finally, when the issues with the German and US governments and Mt. Gox are resolved, the last uncertainties will be cleared.
5. Potential bottom signals: ETH sentiment is now at its lowest point for 2024, nearing negative.
Possible opportunity: DeFi valuations are low
In the summer of 2020, the cryptocurrency world witnessed a phenomenon later known as "DeFi Summer."
This period marked a significant turning point in the adoption and development of decentralized finance (DeFi) platforms.
At that time, users frequently jumped from one DeFi project to another, chasing higher rewards.
This frenzy brought immense selling pressure, combined with token unlocks from investors and team members, leading to prices dropping over 80% from historical highs.
