In the past two years, a very interesting phenomenon has emerged in the crypto market—funding has clearly differentiated.

Since the approval of the spot Bitcoin ETF, a large influx of compliant capital has poured into BTC. This is a good thing, but the problem is: all the money is concentrated in BTC, and the incremental funds flowing into other sectors have significantly decreased. The data clearly shows how big this difference is—BTC has nearly a 90% increase over two years, and this performance can be considered steady growth in a bull market.

However, looking at Layer2, GameFi, and other once-hot narrative sectors, the situation is completely different. Their retracements generally exceed BTC's gains, and some projects have even experienced alarming declines. Why is this happening? Simply put, market attention and capital have been attracted to BTC, Ethereum, and their ecosystems, which are also developing but indeed haven't received as much incremental funding.

This structural differentiation phenomenon is worth noting. It reflects deeper changes in market sentiment and capital allocation strategies—compliant capital tends to prefer relatively risk-controlled large-cap assets, while risk appetite for small and medium narrative sectors has significantly decreased.