BOMBSHELL: I Just Discovered What’s REALLY Going On With Cryptocurrency

Introduction to the Current State of Cryptocurrency

The current cryptocurrency market is experiencing a delay in the alt season, despite Bitcoin being up over 500% in the last two years. Ethereum and Solana have not surpassed their old all-time highs, raising questions about the delayed alt season.

The Reason Behind the Delayed Alt Season

The main reason for the delayed alt season is the massive increase in the number of crypto tokens. In 2013-2014, there were around 500 crypto tokens, which increased to 3,000 in 2017-2018 and 300,000 to 3 million in 2021. Currently, there are around 36.4 million tokens, expected to reach over 100 million. This has led to a fracture in the value capture per coin, making it harder for individual coins to move the market.

The Impact of the Increased Number of Tokens

The increased number of tokens has led to a dilution of the market, with exchanges listing low-quality tokens to grab volume and grow their user base. Retail investors buy these tokens, only to lose money and quit. The space is dominated by token developers, insiders, and exchanges, making it difficult for legitimate projects to succeed.

The Explosion of Tokens on Solana

The number of unique crypto tokens on Solana has exploded, with the total stablecoin supply surging to 10.5 billion. However, the retention rate of new users is abysmal, with less than 1% of users sticking around after the initial hype.

The Delayed Alt Season and Its Implications

The delayed alt season is a result of the increased number of tokens and the lack of fundamentals behind most of them. However, this also presents an opportunity for legitimate projects to stand out and attract capital. The alt season will continue to happen, but it will be shorter and more focused on high-quality coins.

Bitcoin Dominance and the Upcoming Halving

Bitcoin dominance is still high, and the upcoming halving process is expected to drive the price of Bitcoin. The MVRVZ score indicates that Bitcoin is not overvalued, making it a good time to buy.

Conclusion

The current state of the cryptocurrency market is characterized by a delay in the alt season, a massive increase in the number of tokens, and a lack of fundamentals behind most of them. However, this also presents an opportunity for legitimate projects to succeed and for investors to make informed decisions.