Altcoins: Is the bull market coming back?

On the whole, except for a few sectors such as meme and AI, and a few projects such as $SOL that are expected to take over ETFs, the performance of most altcoins in this round of market cycle can be described as "disaster". There are three main reasons why altcoins perform so poorly:

First, the approval of ETFs has led to changes in the liquidity transmission mode of the market. In the past, the path for incremental funds to enter the market was generally "stable coins - $BTC , $ETH - altcoins", but now the incremental funds from the traditional market are more inclined to directly invest in BTC through ETFs, which also leads to the inability of funds to continue to transmit, resulting in a lack of liquidity in the altcoin market

Second, the continuous unlocking of "VC tokens" has brought continuous selling pressure, resulting in a market pattern of "supply exceeding demand" - if you look closely at the circulation changes of some altcoins, you will find that although the prices of some tokens continue to fall, the circulating market value continues to set new highs

Third, new projects that opened at sky-high prices are constantly sucking the remaining liquidity in the market. io.net, ZKsync, LayerZero, Blast... A lot of popular projects that have been hyped for a long time have been launched one after another, and FDV Generally at the level of billions of dollars, which further exacerbates the liquidity shortage in the altcoin market

However, even in this case, since some top bosses are optimistic about the future market of altcoins

Rich Rosenblum, co-CEO and co-founder of cryptocurrency market maker GSR, posted on the X platform yesterday that altcoins will make a comeback and will return strongly, which is his most confident time.