Chainfeeds Introduction:
It is just waiting for the right conditions. Chinese version compiled and published by Jinse Finance.
Article Source:
https://www.jinse.cn/blockchain/3713579.html
Article Author:
Blockworks
Perspective:
Blockworks: David Zimmerman from K33 wrote in a report that the cycle of 2020/2021 may have reached its peak. If there is no new retail capital inflow, the profitability of speculative tokens without revenue, without products, and without a roadmap beyond sentiment will become more difficult, he said. In addition to the overall maturity cycle we have seen, a significant change is that meme coins have truly established themselves in the cryptocurrency field. As I wrote on Milk Road last week, meme coins accounted for about 25% of total cryptocurrency trading volume during their peak in the first quarter. This means that the future path of Altcoins is more likely to be selective. As Zimmerman pointed out, the overall Altcoin market faces $4.3 billion in token unlocks in May, $2.8 billion in June, and $3.2 billion in July. These unlocks are headwinds that require significant new liquidity to absorb. Without any significant demand surge or new retail inflow, the calculation is simple: more supply against static or shrinking demand equals downward pressure. Beyond the obvious need for liquidity, times have changed. In the past, Altcoins could get a boost just by being close to hot topics. Now, there is more need to focus on fundamentals (I swear I'm not trying to keep mentioning this, it's just happening). Zimmerman says Bitcoin will remain dominant, but there is an opportunity to allocate smaller positions to Altcoins. While some Altcoins may perform well, the window of opportunity is limited and increasingly brief. As cryptocurrencies mature, tokens may not continue to be big winners. Take stablecoins as an example. Currently, the most bullish crypto asset besides Bitcoin is almost certainly stablecoins. They are advancing into payment infrastructure, continuously growing in market cap, and positioning themselves at the center of retail and institutional use cases, Zimmerman said. Among many choices, investors now must focus on metrics before investing in tokens (unless you insist on investing in meme coins). For K33, this means understanding product-market fit, user growth, or the token's earnings. A more serious cryptocurrency era is about to arrive.
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