If you are still buying tokens purely because of massive percentage spikes, stop now.
Chasing explosive percentage gains is how most retail traders end up holding illiquid bags right before liquidity evaporates. It feels like catching early alpha, but it is often just basic math playing tricks on your portfolio.
Take AllLayer recording an 18,851% TVL surge over the past seven days. On paper, that makes every other ecosystem look stagnant. The bulls will argue that explosive early inflows signal aggressive capital rotation and massive upside for early participants positioning before the crowd.
However, extreme percentage growth almost always masks a microscopic starting base rather than genuine network adoption. Comparing that to Shibarium posting a steady 165% TVL jump backed by active $SHIB and $BONE utility highlights the difference between sustainable liquidity and statistical noise. When a protocol goes from a few thousand dollars to a couple million, the percentage looks astronomical, but it rarely translates to real staying power.
Do you filter for baseline liquidity when evaluating these surges, or does the raw percentage momentum take priority?
#DeFi #CryptoTrading #Altcoins
Chasing explosive percentage gains is how most retail traders end up holding illiquid bags right before liquidity evaporates. It feels like catching early alpha, but it is often just basic math playing tricks on your portfolio.
Take AllLayer recording an 18,851% TVL surge over the past seven days. On paper, that makes every other ecosystem look stagnant. The bulls will argue that explosive early inflows signal aggressive capital rotation and massive upside for early participants positioning before the crowd.
However, extreme percentage growth almost always masks a microscopic starting base rather than genuine network adoption. Comparing that to Shibarium posting a steady 165% TVL jump backed by active $SHIB and $BONE utility highlights the difference between sustainable liquidity and statistical noise. When a protocol goes from a few thousand dollars to a couple million, the percentage looks astronomical, but it rarely translates to real staying power.
Do you filter for baseline liquidity when evaluating these surges, or does the raw percentage momentum take priority?
#DeFi #CryptoTrading #Altcoins