Recently, an interesting divergence is playing out in the altcoin market. Polygon gained 15% riding the narrative wave of payment infrastructure, while Chiliz surged 13 to 24% on sports DeFi concepts. However, coins without new narratives are basically stagnating, with some even showing pullbacks.
This phenomenon is actually quite normal during the mid-cycle of a bull market. Capital has long abandoned indiscriminate dumping and has become more selective. Investors now focus on projects with actual progress and real development rather than buying any coin. This suggests the market is gradually moving toward rationality, which is actually a good signal.
That said, narrative-driven moves are a double-edged sword. Concept hype can easily deviate from fundamentals, and once momentum fades, prices tend to plummet quickly. The key to participating in these coins is timing management—enter when the story is just starting to ferment, exit decisively when the hype reaches its peak, and absolutely avoid chasing rallies at higher prices, or you'll end up as a bag holder.
At this stage, the most important thing is to seriously research each project's real progress rather than following the trend when you see gains. Only by doing this can you profit from market divergence instead of being hurt by it.
I was laughing and then started crying. Polygon went up 15% and I was still watching the candles, then I turned around and Chiliz had already mooned.
If a good story makes a coin pump, then why haven't I gotten rich yet?
Coins without new narratives are just waiting for me to catch the falling knife, thanks for the reminder.
As for timing exits, what I'm good at is buying the top and crying my way out.
Data speaks for itself, but my ears are plugged up anyway.
Recently, an interesting divergence is playing out in the altcoin market. Polygon gained 15% riding the narrative wave of payment infrastructure, while Chiliz surged 13 to 24% on sports DeFi concepts. However, coins without new narratives are basically stagnating, with some even showing pullbacks.
This phenomenon is actually quite normal during the mid-cycle of a bull market. Capital has long abandoned indiscriminate dumping and has become more selective. Investors now focus on projects with actual progress and real development rather than buying any coin. This suggests the market is gradually moving toward rationality, which is actually a good signal.
That said, narrative-driven moves are a double-edged sword. Concept hype can easily deviate from fundamentals, and once momentum fades, prices tend to plummet quickly. The key to participating in these coins is timing management—enter when the story is just starting to ferment, exit decisively when the hype reaches its peak, and absolutely avoid chasing rallies at higher prices, or you'll end up as a bag holder.
At this stage, the most important thing is to seriously research each project's real progress rather than following the trend when you see gains. Only by doing this can you profit from market divergence instead of being hurt by it.