5 pictures show the current situation of the encryption market: adjustments are inevitable, and it is more difficult to discover 100x coins

Original title: "The Current State of Crypto in 5 Graphs"

1. Compared to previous cycles, we are still in the early stages.

2. Market adjustment is inevitable.

In previous cycles, the market experienced deeper corrections. For example, adjustments in 2016-17 ranged from -25% to -35%, while adjustments in 2020-21 ranged from -50% to -63%.

Source: Glassnode

3. Although the liquidity is the same as in 2021, the number of tokens has increased 50 times.

In other words, it’s now much harder to find coins with 100x returns.

4. Bullish catalysts.

• ​​​​​​​Bitcoin ETF continues to see inflows
• Ethereum ETF coming soon
• Regulatory shift
• Interest rates are at all-time highs, EU and Canada have started to fall
• Stocks are at all-time highs
• Gold is close All-time highs
• Stablecoin supply at all-time highs
• Circle’s stablecoins are MiCA compliant, driving integration of finance and commerce
• Stripe integrated stablecoins
• PayPal’s new $PYUSD growth ($405 million issued)
• Blackrock’s push to tokenize assets
• Newly minted altcoins have fallen by around 80%, resetting valuations
• Polymarket gains traction outside of cryptocurrency’s native space
• Blockchain is finally starting to scale

Finally, when Once the issues between Germany, the US government and Mt. Gox are resolved, the final suspense will be cleared.

5. Potential bottom signal: ETH sentiment is now at its lowest point in 2024 and is close to turning negative.

Possible opportunities: DeFi valuation is cheap

In the summer of 2020, the cryptocurrency world witnessed a phenomenon that came to be known as “DeFi Summer.”

This period marks an important turning point in the adoption and development of decentralized finance (DeFi) platforms.

At that time, users frequently jumped from one DeFi project to another, chasing higher rewards.

This mania brought huge selling pressure, which combined with token unlocking by investors and team members, caused the price to drop by more than 80% from its all-time high.

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