2026-01-11 03:27:14

Recently, while analyzing on-chain data, I discovered an interesting phenomenon—during the last bull market, the major token addresses of those highly regarded tokens have hardly increased their holdings over the past three months; instead, they have been continuously releasing chips to retail investors. Meanwhile, some less conspicuous assets are quietly being absorbed by unfamiliar addresses, reflecting deeper changes in the market landscape.

As we dig deeper, we find that there are indeed some phenomena in the market that warrant caution. Especially when judging the life and death of tokens, there are several very practical indicators worth paying attention to:

First is the project's actual user base. Statistics show that many tokens ranked in the top 50 by market cap have fewer than 10,000 daily active users, yet they support a considerable market cap. These projects often lack stable protocol revenue and genuine user cash flow, relying solely on narrative support.

Second is the true state of liquidity. A sample check of the top 300 tokens by market cap revealed that more than 30% of these projects have over half of their trading volume concentrated in one or two trading pairs on certain exchanges. This highly concentrated liquidity is actually very fragile; once market-making support disappears, prices could face rapid declines.

Third is community activity. Compared to the number of active addresses holding tokens, what truly reflects the health of the ecosystem is the scale of active users participating in the project and the frequency of on-chain interactions.

Looking back now, the projects that are truly expanding applications and generating real cash flow are becoming increasingly distinct from those that rely solely on hype and liquidity to survive. For investors, learning to interpret these differences through on-chain data may be more valuable than chasing hot trends.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

11 Likes

Reward
11
6
Repost
Share

Comment

0/400

screenshot_gains

· 01-11 03:57

Big players are dumping chips, while small investors are picking up the bags. I've seen this scenario many times. A market cap supported by 10,000 daily active users is just a story, and it will collapse sooner or later. Liquidity is concentrated on one or two exchanges, which is extremely fragile—can flip at any moment. Now I finally understand how far genuine users and narratives are from each other. The projects that survive this cleanup are the real deal, true gold and silver. Buying the good projects that no one pays attention to is much more reliable than chasing hot trends.

View OriginalReply0

BlockchainNewbie

· 01-11 03:52

Large investors are quietly fleeing while retail investors are still taking the bait—that's the current market. The top 50 coins have only 10,000 daily active users. When this data came out, I just laughed; it's all just hype and nonsense. Liquidity is concentrated on 1-2 exchanges? Market making gets pulled, and the price drops straight to the floor—those who have experienced it know. Community activity is the real thing; those who only look at the number of addresses are all trapped. Honestly, it still comes down to whether there are real users and genuine cash flow; otherwise, no matter how loud the name, it's just air. This round will likely eliminate a batch of projects that only tell stories. Those who understand on-chain data will make money, while those who follow trends will keep losing—it's that simple.

View OriginalReply0

GweiObserver

· 01-11 03:50

Whales are dumping, retail investors are buying in, this routine never changes --- Only 10,000 daily active users for the top 50 coins? Laughable. How long can a market be sustained by stories? --- Liquidity is concentrated on two exchanges? That's a ticking time bomb, it can collapse very quickly --- Projects with real cash flow will increasingly diverge from air coins, this judgment is spot on --- Instead of constantly checking the top gainers, it's better to analyze on-chain data, that's the real deal --- Having many community addresses makes a project seem stable? Wake up, you need to see who is really using it --- Whales reducing holdings and small coins being absorbed, the outcome will be clear after this wave plays out

View OriginalReply0

ProbablyNothing

· 01-11 03:47

Whales are running, retail investors are catching; this routine is the same every time haha. If daily active users are less than 10,000 and still claim to be in the top 50, I just smile and say nothing. Liquidity concentrated on one or two exchanges? That's a ticking time bomb, waiting to explode. Real cash flow is the key; storytellers will all be cooled off. On-chain data doesn't lie; understanding these is the way to survive longer. How can someone chasing hot topics every day possibly outrun those who do their homework? Another round of harvesting is about to begin; the foolish will lose. Projects with high community activity are half bots generated. I still trust the actual on-chain interaction frequency more; the number of holding addresses is not very meaningful. Large funds are quietly positioning; once retail investors are caught holding the bag, they will start to cut.

View OriginalReply0

StakeTillRetire

· 01-11 03:38

Large investors are dumping tokens while retail investors are buying in. I've seen this trick many times. The top 50 coins have less than 10,000 daily active users? That's hilarious. Is that called market value or just air? Liquidity is concentrated in one or two exchanges. If something really happens, it will be a slaughterhouse.

View OriginalReply0

GasWastingMaximalist

· 01-11 03:36

Big whales quietly run away, retail investors are still holding the bag. This trick is old-fashioned. The top 50 tokens have only 10,000 daily active users? Laughable. Isn't this just a worthless coin disguised as a market cap? Liquidity is concentrated in one or two trading pairs? Then just wait for a dump. Without a market maker, it collapses in a second. The data sounds very hardcore, but to be honest, it's still that saying—if there are no real users, on-chain scams can't fool anyone.

View OriginalReply0