DeFi and L1 are the main token issuers, and token distribution strategies are undergoing optimization adjustments
In recent times, the crypto market has seen a series of projects announcing the issuance of tokens. PANews has compiled statistics on 21 crypto projects that have recently officially announced their TGEs. These projects cover sectors such as DeFi, L1, Non-Fungible Token, L2, and DAO, with DeFi and L1 projects being the main token issuers, accounting for nearly half of the total. Based on public information, these projects have generally received the favor of the capital market, with a cumulative financing amount exceeding $620 million, involving investors such as Polychain, , , Dragonfly, , Alliance DAO, , and . VC endorsement is often seen as an important symbol of a project's reliability and potential, which can add more credibility and potential to these projects. However, with the involvement of capital, the problem of continuous price declines due to high FDV and low liquidity that occurred previously has also gradually aroused strong dissatisfaction and controversy in the market. Faced with this dilemma, the market's attention has begun to shift significantly, including turning to relatively fair and decentralized crypto assets, such as coins. For example, 10x Research recently released a report stating that the Google search trend for "Meme Coins" has reached a new high, surpassing the previous peak in March 2024. This data also indirectly confirms that investors are currently relatively more inclined towards community-driven and more equitable investment opportunities. In terms of token distribution, many projects have begun to adjust the problem of low initial liquidity, in order to avoid the limited sustainable upside space brought by high FDV. For example, the initial liquidity of Movement is 22%, Side Protocol is 22.9%, and Zircuit is 21.95%. This change reflects the market's reflection on the low liquidity and high FDV model, especially in these projects, where ordinary investors often become the "sacrifices" of liquidity withdrawal. Furthermore, token distribution strategies are also placing more emphasis on ecosystem building and community participation. For example, Bluefin allocates 52% of the total tokens for ecosystem growth, Movement allocates 40% of the total tokens to the ecosystem and community, Magic Eden allocates 37.7% of the tokens to the community and ecosystem, and Usual allocates 90% of the tokens to the community. Such strategies can help strengthen the project's community cohesion and market competitiveness, and better promote the long-term development of the project. Particularly in terms of airdrops, the average token airdrop ratio of these 21 projects reached 14.9%, with Suilend, Hyperliquid, Zircuit, Swan Chain, and WalletConnect reaching 40%, 31%, 21%, 20%, and 18.5% respectively, significantly exceeding the average, especially , which has an airdrop value of up to $28,500 per person, making it one of the largest crypto airdrops this year. Airdrops, as an effective means of attracting and incentivizing community members, still play an important role in project promotion, not only providing generous returns for early supporters, but also effectively enhancing the project's influence and visibility.Multiple factors may help the return of the "Altcoin season", but cannot rely solely on the driving effect of Bitcoin
The intensive announcement of token issuance by crypto projects is closely related to the market rebound and the loose policy environment in the United States. Recently, with the continued rise of Bitcoin, mainstream public chains, DeFi, , L2, and gaming sectors have seen a strong rebound. At the same time, the intensified PVP competition in the market has also discouraged many players, and market attention is gradually shifting to the secondary market. "The 'Altcoin season' may be about to begin," top trader Eugene said recently. According to the latest report released by Bitfinex, the overall crypto market has reached a new cycle high, and the market capitalization of Altcoins is now approaching the $984 billion peak of May 2021, indicating that speculative capital is shifting from Bitcoin to Altcoins. Historically, such capital rotation usually heralds the arrival of the "Altcoin season", with Altcoins outperforming Bitcoin in terms of price gains. Crypto analyst Mikybull Crypto said that Bitcoin's dominance in the crypto market has fallen below its two-year support line, which may indicate that the market has "officially entered the Altcoin season". This is because the decline in Bitcoin's dominance means that investors are taking profits from their BTC positions and investing part of the funds in Altcoins. QCP also pointed out that the recent decline in Bitcoin's market capitalization ratio reflects the trend of capital gradually shifting from BTC to ETH and other Altcoins. According to data disclosed by IntoTheBlock, the net outflow of stablecoins from CEX reached the highest level since April, about $4.5 billion. In addition, with the crypto market gradually moving towards the mainstream, the loose crypto policy environment in the United States has also boosted the market's optimism about the overall development of the Altcoin industry and beyond. According to a previous report, the list of members of the new U.S. government has been gradually unveiled, and many of them have publicly expressed a friendly attitude towards cryptocurrencies, which may bring more positive policy expectations for the industry. Particularly, the upcoming departure of SEC Chairman Gary Gensler is seen as a change that may provide more space for the further development of the crypto industry. It is also worth mentioning that the market's anticipation is rising with the ETF applications of coins such as Solana, , and . However, CEO Ki Young Ju also pointed out that compared to the previous bull market, the current Bitcoin rally is mainly driven by institutional investors and spot ETF demand, and these funds are different from crypto exchange users and have no intention of shifting assets from Bitcoin to Altcoins. At the same time, since institutional investors mainly operate outside of exchanges, asset rotation becomes less likely. Although institutions may allocate to mainstream Altcoins through investment tools such as ETFs, small-cap Altcoins still rely on retail users on exchanges.The total market capitalization of Altcoins is expected to reach a new high, requiring a large influx of new capital into the exchanges, but the current level is still below the historical high, indicating a decrease in liquidity brought by new users. Therefore, Altcoin projects should focus on developing independent strategies to attract new capital, rather than relying on the momentum brought by Bitcoin.
