In the field of digital currencies, the dramatic changes in wealth continue to unfold between day and night. An investor shared a poignant experience late at night: the 500,000 yuan invested in a niche digital currency last year has now shrunk to 80,000. In stark contrast, another investor showcased the astonishing rise of PEPE, soaring from 0.000001 to 0.00001266. These two extreme cases vividly illustrate the harsh reality of the current altcoin market.

Although a new wave of altcoin frenzy seems to be forming, the current market environment has fundamentally changed compared to the 'bull market' in 2021. Nowadays, the flow of funds is more concentrated, and only a few cryptocurrencies can attract significant investment, while most others have become also-rans.

The emergence of this phenomenon has its deep-rooted reasons. Firstly, the number of cryptocurrencies in the market has surged. Major exchanges such as Binance and OKX launch 20 to 30 new coins every month, resulting in more than 5,000 new cryptocurrencies per year. This kind of 'barbaric growth' expansion has caused investors' attention and funds to be overly dispersed.

Secondly, the overall market size growth has not kept up with the expansion rate of the number of cryptocurrencies. During the bull market in 2021, the total market capitalization of global cryptocurrencies soared from 1 trillion USD to 3 trillion USD, with the additional 2 trillion USD providing ample financial support for most altcoins. However, the current market capitalization is only 2.5 trillion USD, which has not yet surpassed the peak of 2021, while it needs to support the development of over 30,000 cryptocurrencies, indicating a significant shortage of capital supply.

It is worth noting that the strategies of market manipulators have also undergone significant changes. According to insider information, the current mainstream practice is to concentrate resources on promoting 3-5 selected altcoins, while using other coins as 'bait' to attract retail investors. In the first half of this year, the performance of a few coins such as SOL has confirmed this.

In such a market environment, investors need to be more cautious and conduct in-depth research on the fundamentals of each project, rather than blindly following market trends. At the same time, they should also be alert to the risks brought by excessive concentration, as once mainstream funds withdraw, certain seemingly popular coins may quickly lose support.

Overall, the cryptocurrency market is entering a more mature and complex phase. In this phase, opportunities and risks coexist, and only investors with deep insights and risk management capabilities can succeed in this rapidly changing market.