The market has been so bleak these past few days, but unexpectedly, Alpha tokens have been taking off in turns.
Of course, I do not recommend that everyone buy these altcoins. This may be because the creators feel that a crash is imminent, and it could be the last dance for many altcoins that are about to go to zero.
Because in my view, there is no longer a festive altcoin season like before; in the future, it will only be the story of a very small number of altcoins. In other words, I believe that the vast majority of altcoins will go to zero.
1. Why is there no festive altcoin season anymore?
The festive altcoin season of 2021 was the result of many combined factors. But now, many things have changed.
The funding structure has changed:
In 2021, the funding for cryptocurrencies was basically from retail investors, so when everyone was fearful of Bitcoin, the funds would overflow into altcoins;
But this year, the mainstream funding for cryptocurrencies is institutional. Wall Street giants like BlackRock and Fidelity are not here to speculate; they are here to control the industry's infrastructure, and funds will not overflow into altcoins.
The way to play altcoins has changed:
The altcoin season of 2021 increased the number of altcoins from 8,000 at the beginning of the year to 16,000 by the end of the year. Many trapped users have already realized the bubble of the altcoin season over these four years.
It's now even more absurd, there are 28 million kinds of altcoins on the internet. Even after excluding zombie coins, there are still 19 million kinds. Without funding, the festive altcoin season can't be supported.
The macro environment isn't good either:
The altcoin season of 2021 ended with the announcement from ten ministries in China on September 24. Before that, the relevant policies were quite loose.
But now, geopolitical factors and other macro environments have raised the cost of funds and lowered everyone's risk appetite. Cryptocurrency is not the preferred asset for most people.
In summary, it can be said in one sentence: There are too many altcoins and too little market funding, so the overall altcoin bull can't be sustained.
Second, what will the future altcoin season look like?
So the question arises, is there still an altcoin season? I think there is.
An undeniable fact is that in the cryptocurrency industry, there are still some young people hoping to change their fate. They don't care about the rise and fall of mainstream coins like BTC and can only rely on altcoins to get rich overnight.
As long as such a group of people exists, the altcoin season will be there.
So the question arises, where will the altcoin season appear? I think it will be in Binance's Alpha sector:
Binance has attracted a large number of new users through the Alpha activities;
These new users are the best group for trading altcoins: they have daily trading needs; they have the mindset of taking advantage of opportunities; they have more than 1000u in available funds...
Moreover, Alpha is currently the most attractive sector for project parties. All project parties that want liquidity will pursue Alpha;
If we look at the altcoin season from a new model perspective, we actually had three rounds of altcoin seasons last year. It seems that there will be another round of small altcoin plays in the next few days. Friends playing meme coins should pay more attention to Alpha.
