In this round of bull market led by Bitcoin, memes and new narratives, it seems that the tone of the previous round of bull market is different. In this round of bull market hot topics memes, Ordinals, BRC-20 and runes all seem to have a different tone. There is no shadow of venture capital institutions (VCs). On the other hand, linear unlocking tokens such as ARB, OP, and STRK, with high valuations led by many well-known institutions, have gradually fallen out of favor among retail investors. Therefore, this kind of bull market in which retail investors do not buy high-valued tokens in the secondary market, and institutions do not participate in the primary market BRC-20, rune and meme tokens, is dubbed by netizens as a "non-capital bull market".
Retail investors are awakening and no longer accept "value coins" led by institutions.
Investors who have experienced this bull market must have discovered that the Ethereum ecosystem, which is popular among users, has not become the leader in this bull market. Instead, the new Bitcoin ecosystem and the previously spurned Solana ecosystem have suddenly emerged and become Users’ new favorite.
In particular, there are many products in the Bitcoin ecosystem that "learn from" Ethereum, such as Ordinals and BRC-20. The main feature of such products is that the "NFT" or "token" issued by the project party does not have many traces of contamination from investment institutions. . In addition, BRC-20 focuses on "fair sale", allowing users to mint tokens as long as they spend gas, and the project team cannot reserve and issue additional tokens, making it difficult for VCs to deploy.
On the contrary, the value coins invested by VCs have not performed particularly well in this bull market, and many projects even rely on the Bitcoin ecosystem and Solana ecosystem to gain attention. The main reasons are: a large number of tokens are not unlocked and the project valuation is too high. The expectation that tokens will be smashed when unlocked, coupled with the low profits brought about by high valuations, gives retail investors a sense of "taking over" and they turn to projects where tokens are fully circulated or where high returns can be obtained.
Too many narratives cause market fragmentation
In this bull market, in addition to the confrontation between retail investors and investment institutions, the narrative sections that Eastern and Western cultures focus on are also different. Therefore, there will be a phenomenon in the market where a group of people are playing BRC-20, another group of people are speculating on AI, DePIN, and GameFi, and the remaining people are rushing into earth dogs and meme coins.
Compared with the last bull market, when everyone worked together to speculate on DeFi and public chains, the funds and people in this bull market are too dispersed, resulting in a fragmented market without consensus.
The sense of difference caused by uneven distribution of tokens
According to a tweet by crypto KOL Little Raccoon, "unfair token distribution" leads to "non-acceptance of each other's orders", showing that the token economics of the project side may lead to investors not being willing to purchase tokens.
First of all, the aforementioned unlocking of tokens by VCs and teams has become one of the factors that prevent retail investors from accepting orders. Furthermore, the high proportion of airdrops from the project side will also deter retail investors who have not received airdrops from accepting orders.
There is only so much market capital, how can we get it? Can we get it with a loan?
In the last bull market, we saw popular narratives such as "The First Year of NFT", "DeFi Summer" and "The Rise of Ethereum Killers". Market funds were also concentrated in public chains, DeFi and NFT. However, in this bull market we have the Ethereum ecosystem. , Bitcoin Ecology, Solana Ecology, Layer 2, DeFi, GameFi, DePIN, Tugo, Memes, Ordinals, BRC-20, Runes, ERC-404... There are too many narratives to finish, and the number of projects is the same as in the previous round. The bull market has more than doubled. In addition, many projects have adopted the "pledge airdrop" strategy not long ago, causing a part of the market's funds to be locked in these projects.
Therefore, in this cryptocurrency market where funds are dispersed and there is no external capital inflow, projects with a market value of over 100 million are everywhere on the streets. How should retail investors take over the projects and get loans?
