Recently, the cryptocurrency market has shown a brand new pattern, with the price trends of Bitcoin and Ethereum breaking traditional perceptions. The current market mainly reflects three core characteristics:

Firstly, ecological differentiation is increasingly intensifying. As the total amount of cryptocurrencies exceeds 25,000, the siphoning effect of funds has led many small cryptocurrencies to face liquidity crises. Bitcoin's daily trading volume reaches over $30 billion, while most small cryptocurrencies have a trading volume of less than $500 million. This trend is particularly evident in the second quarter of 2025, when Bitcoin's market capitalization exceeds 55%, and more than 70% of small cryptocurrency projects experience a significant decline in daily trading volume. Projects that rely solely on conceptual hype find it difficult to avoid the fate of liquidity exhaustion, even during the active period of small cryptocurrencies.

Secondly, the market's value selection mechanism is upgrading. The successful breakout of projects like ENA proves the new market standard: either possessing the integration technology of AI and blockchain (such as TAO achieving a 300% increase in the first half of the year), or having a real user ecosystem (such as ZORA's daily token minting volume exceeding 47,000 pieces). In contrast, those projects that rely solely on community speculation are like small cryptocurrencies stuck in 2018, failing to capitalize on the AI technology wave and missing the development opportunity of DePIN (Decentralized Physical Infrastructure Network), which may ultimately go to zero in market liquidation.

Finally, the market cycle pattern is being restructured. Currently, the small cryptocurrency seasonal index remains at 36 points (neutral range), still some distance from the 50-point activation threshold. Historical data shows that the explosion of small cryptocurrencies in 2025 typically occurs in the second to third quarter of Bitcoin's price consolidation (such as the rebound in August 2024). However, to stand out in this cycle, projects need to meet the following conditions: daily active addresses exceeding 100,000 (such as Solana ecosystem projects), and a monthly average total locked value (TVL) growth of over 15% (such as DePIN projects).

These changes indicate that the cryptocurrency market is undergoing a profound transformation period. Both investors and project teams need to adapt to this new market environment, focusing on real technological innovation and user value, rather than short-term speculative behavior. In the future, projects that can survive and thrive in this new landscape may lead the next wave of growth in the cryptocurrency market.