Crypto Assets Market Reflection and Trend Analysis

Recent market dynamics have sparked some in-depth reflections. The true market trend is expected to become clear only after September. Considering macroeconomic headwinds, summer liquidity constraints, and quarterly position adjustments, substantial changes in the market are likely to occur only when participants return after the August holidays. Recently, the rise of altcoins has been largely driven by short squeezes, lacking support from long-term holders. Many tokens have experienced significant fluctuations.

Ethereum unexpectedly rebounded, with AI and certain coins leading this surge. Tokens with practical use, strong fundamentals, or buyback mechanisms have shown strong resilience. The following insights can be drawn from this:

1. The demand for Bitcoin is solid and enduring.

Traditional capital is entering the market through various regulated channels. The nature of the capital supporting BTC is significantly different from previous cycles, which reduces the likelihood of large-scale liquidations.

2. The differentiation of altcoins is intensifying.

Funds may flow back to altcoins, but will only favor tokens with clear use cases and practical applications. This is why Ethereum may outperform other public chains. Clear regulations, increased DeFi usage, deflationary mechanisms, and staking demand together create a strong flywheel effect.

3. Some tokens face structural risks

Token unlocking will continue to exert pressure on prices. In the case of insufficient liquidity, the ongoing selling pressure from early investors limits the upside potential. Certain ecosystems' tokens are particularly facing this issue.

4. Structural Advantages of Specific Tokens

Certain tokens have structural advantages due to characteristics such as fair issuance and no venture capital unlocks. However, this phase may be coming to an end. In the future, only tokens with strong narratives and market recognition will have real speculative value.

5. Emerging Opportunities

Web2/3 projects with fair launches may become the next wave of wealth opportunities. To seize these opportunities, active participation in on-chain activities is required. Information asymmetry often breeds great opportunities.

Future Trends Outlook

The combination of AI and Crypto Assets may become the next hotspot. Many early AI projects failed after hype, but practical projects are quietly being built. As the popularity of certain tokens decreases, attention may shift towards AI-related projects.

Overall, the market is undergoing differentiation and transformation. Projects with practical applications and strong fundamentals may perform better in the future. Investors should closely monitor emerging trends, especially in the intersection of AI and Crypto Assets, as this area may hold the greatest asymmetric opportunities.