Challenges in the Web3 Market

Since Bitcoin’s inception, cyclical volatility has become a hallmark of the cryptocurrency industry. Each cycle brings dramatic market sentiment swings, speculative behavior, and abrupt capital flows. By 2024, despite continued volatility, this cycle diverged significantly from previous ones—particularly in the underperformance of altcoins, which dashed many investors’ expectations.

In past crypto bull markets, "altcoin seasons" typically emerged, with small-cap coins skyrocketing through short-term capital inflows and speculative hype, further fueling market euphoria. However, 2024 defied this expectation. While Bitcoin surged due to spot ETF approvals and political factors like Trump’s election, altcoins faced capital outflows and shrinking liquidity. This left speculative investors disappointed, dragging overall market sentiment downward.

For ordinary investors, this environment proved particularly challenging. Many had previously focused on altcoins, hoping for rapid returns from high volatility. Yet 2024’s altcoin stagnation shattered their "get-rich-quick" dreams, damaging confidence. Crucially, investors confronted a new reality: fast-profit opportunities in crypto are dwindling, and altcoin-based wealth strategies are losing effectiveness.