Why are alts still asleep? The funding situation tells you the truth.

[Coin World] Recently, someone asked why alts are so weak? Tom Schmidt, a partner at Dragonfly Capital, shared his opinion on a podcast - simply put, there is no new money coming in.

In the current market, whether retail investors or institutions, everyone is focused on the two leading assets, Bitcoin and Ethereum. New funds are basically flowing into these mainstream coins, while alts have become the neglected ones. This is not a new phenomenon; every time the market enters a correction period, funds tend to gravitate towards safe assets, and small coins often become the victims.

Unless there is a new influx of large amounts of funds into the market, it will be difficult for this situation to change in the short term. Investors' risk appetite has declined, and naturally, they will not chase after those projects that have greater volatility and average liquidity.