The 70 Percent Rule That Predicts The Next Bull Run
On-chain activity just experienced its sharpest contraction in months, with network revenue plummeting to $200 million in November. The decline hit certain ecosystems, like the one powering $BNB, particularly hard. Protocols like PancakeSwap are currently generating a fraction of the revenue they saw just one month prior.
For the uninitiated, this looks like a death spiral. For the experienced analyst, this looks like the required precursor for massive upside.
We have seen this play out before. Historically, deep revenue slumpsโespecially those exceeding 70%โhave acted as the final cleansing cycle before major market recoveries. In 2021, similar drops paved the way for chains like $ETH and $SOL to post 2x to 3x gains within six months.
The current quiet period is not a sign of failure; it is the market consolidating strength, shedding unsustainable hype, and preparing for the next explosive movement. The greatest gains are often made when the data looks the worst.
Not financial advice. Do your own research.
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