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Home web3.0 Witnessing History: The logic behind many altcoins reaching new highs

Witnessing History: The logic behind many altcoins reaching new highs

Jul 29, 2025 pm 04:27 PM
Blockchain tool Bitcoin binance cryptocurrency Ethereum Blockchain technology Binance Huobi Mainstream coins Dogecoin trading platform okx Ouyi

Behind the altcoin carnival is the flood of liquidity and speculative psychology, rather than purely technical value; 1. Although mainstream currencies such as Ethereum have technological innovations such as smart contracts and DeFi, they have certain functional value; 2. Global loose monetary policy has led to capital influx of high-volatility assets, and leveraged trading amplifies the market; 3. The lack of supervision and the FOMO sentiment caused by social media attract retail investors to follow suit, and encourage irrational prosperity; 4. History shows that the rise from fundamentals is difficult to sustain. Once liquidity tightens or regulatory intervention, altcoins lacking practical applications will face value revaluation, and investors should remain rational to avoid becoming the last takeover.

Witnessing history: The logic behind many altcoins' bravely reaching new highs - php Chinese

The world's mainstream currency trading platform:

Ouyi OKX:

Binance Binance:

Huobi:

Gateio Sesame Opening:

As Bitcoin prices hit new highs, the cryptocurrency market is sporting an eye-catching "altcoin carnival". Thousands of alternative cryptocurrencies such as Ethereum, Dogecoin, and Shiba Inu Coin have soared collectively, and currencies with smaller market capitalizations have even doubled in an extreme market. What kind of market logic is hidden behind this carnival?

From a technical perspective, mainstream altcoins such as Ethereum do show the iterative potential of blockchain technology. Innovations such as smart contracts, DeFi ecosystem, and NFT applications have given these projects functional value that Bitcoin does not have. In particular, the transformation of Ethereum 2.0 into a proof of stake mechanism may solve the energy consumption and efficiency issues that have long plagued the industry. This technological breakthrough naturally attracts investors looking for "the next bitcoin".

But what is more worthy of attention in the market fanaticism is the liquidity-driven speculative logic. The continued loose monetary policies of major central banks around the world have led to the flood of liquidity in the financial market. Traditional asset yields continue to decline, forcing investors to turn to high-risk, high-volatility crypto assets. With its low price and large volatility, altcoins have become an ideal tool for leveraged funds to gain excess returns. Data shows that the trading volume of cryptocurrency derivatives has far exceeded the spot market, and leveraged trading is amplifying market fluctuations.

Regulatory vacuum and FOMO (miss-phobia) psychology further encourage speculation. The lack of effective supervision has led to frequent market manipulation, and social media has fueled the fire to create a wealth effect, attracting a large number of retail investors who lack risk awareness to enter the market. This irrational prosperity reminds people of the absurd scene of "any company with .com can go public" during the Internet bubble in 2000.

Historical experience shows that any price carnival that is free from fundamental support will eventually return to rationality. Although the blockchain technology revolution is indeed deepening, the current collective excitement in the altcoin market reflects more the speculative psychology driven by liquidity. Investors need to be vigilant that when monetary policy shifts or regulatory heavy blows fall, altcoins that lack practical application support may usher in a cruel revaluation of value. Staying awake in the crypto market carnival may be the key to avoid being the last player to take over.

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