Bitcoin Reaches All-Time High, but Altcoins Remain Sluggish
Warning of 'Low Circulation Volume-High Fully Diluted Valuation' Trap
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According to Bloomberg, after Bitcoin reached a new high during the 'Crypto Week' on the 14th, the market has been moving within a limited range. Key figures in the digital asset industry focused on Ethereum's (ETH) breakthrough and the rebound in the Non-Fungible Token (NFT) sector as potential turning points, but the overall altcoin market is showing intermittent rather than comprehensive growth.
Notably, XRP surged over 60% from early July but experienced an 11% drop on the 23rd, demonstrating significant volatility. Of particular interest is the characteristic of popular altcoins. Most of these tokens have 'low circulation volume and high fully diluted valuation (FDV)', meaning that despite billions of dollars in fully diluted valuation, only a tiny fraction of tokens are actually tradable.
This poor structural characteristic is likely to trigger a price reversal by intensifying speculative sentiment and increasing market fatigue in the latter part of the so-called 'bull market'.
Choi Joo-hoon joohoon@blockstreet.co.kr
