This wave of altcoin rotation, how did it end up with the decentralized sector 'stealing the show'? #山寨季來了?
Recently, the rhythm in the crypto world is quite interesting—on one hand, there’s a collective celebration in some tracks, and on the other hand, funds are flocking to the decentralized sector like 'visiting neighbors'.
Take UNI for example, $UNI
it surged nearly 46% in a single day, with 24-hour trading directly exceeding 200 million USDT. If you say this is an isolated incident? Definitely not—open the market page and take a look, small coins in the decentralized exchanges and decentralized storage segments have either been quietly climbing or suddenly 'jumping', no longer the 'lying flat' state from before.
Why is it the decentralized sector?
In fact, the logic behind this wave of rotation is not complicated:
1. Funds have nowhere to go, they have to find 'low-lying areas'
Mainstream coins have not been fluctuating much recently, and there are no new stories to tell about the hot spots that were previously speculated on, so funds have to find a place with 'imagination space'. The valuation of the decentralized sector is not high to begin with, plus there are occasional whispers in the industry about 'the Web3 infrastructure needing an upgrade', naturally becoming a 'temporary landing place' for funds.
2. 'Decentralization' itself is an 'old IP with a new narrative'
Although this concept is not fresh, users' demand for 'privacy and self-control of assets' is becoming more and more practical—many people have recently complained about the limitations of centralized platforms and then turned to try decentralized products. This demand realization has also shifted the sector's heat from 'speculating on concepts' to 'looking at actual usage'.
But I have to remind you: excitement is one thing, the risk is indeed not small.
Altcoin rotation has always been 'fast to come, and fast to leave':
- These small coins have small market caps, easy to pump, and quick to crash; you might be making money in the morning, but by the afternoon you could be trapped;
- Many projects themselves have not made much actual progress, and their rise relies entirely on market sentiment; once the sentiment retreats, they can drop back in minutes.