Recently, I noticed an interesting market phenomenon: the liquidation volume of certain alts within an hour actually exceeded that of Bitcoin and Ethereum. What issues does this data reflect?

To be honest, participants in this situation often fall into a vicious cycle - retail investors blindly follow the trend, and as a result, become the easiest targets to be harvested. The market is like this now, with many projects' chips highly concentrated in the hands of the project party, whether to pump or dump basically depends on their whim. For those who are already trapped, the rational approach is to first understand the fundamentals and chip distribution of the coin in hand, and not to mindlessly throw more in.

From a liquidity perspective, this characteristic of the altcoin market means that the risks are much higher than those of Bitcoin and Ethereum. Once project teams decide to cash out, retail investors don’t even have the chance to react. If you are participating in similar varieties, it is advisable to assess your risk tolerance first, and not let emotions and FOMO dominate your decisions. Market opportunities are never lacking, but surviving is the most important.