The changes in the crypto assets market are always astonishing. Recently, a heartbreaking piece of news spread in social groups: an investor's 500,000 investment from last year now remains only 80,000, resulting in a heavy loss. Meanwhile, the big pump of PEPE has made many people eager to act. However, we must recognize that the current altcoin market has undergone significant changes.

Continuing to use the investment strategies from 2021 is akin to self-destruction. So, why has the era of easily making profits disappeared for good?

First of all, the number of alts is growing geometrically. Now more than 500 new altcoin projects are added each month, which is five times more than two years ago. This oversupply situation makes it difficult for even quality projects to stand out.

Secondly, the supply of funds is severely insufficient. The current total market value of Crypto Assets is about 2.5 trillion, yet it has to support more than 30,000 projects. This imbalance in fund distribution makes it difficult for most alts to obtain adequate financial support, and the rise is naturally weak.

Moreover, the strategies of market manipulators are becoming increasingly complex. It has been observed that some traders focus solely on a few specific coins for targeted speculation, while other alts are used as a smokescreen to create the illusion of 'you'll regret missing out,' enticing retail investors to take over.

In the face of such a market environment, how can we find potential alts? Here are some suggestions:

In-depth analysis of on-chain data is crucial. Utilize professional tools like Nansen to closely monitor changes in holdings. For example, before the big pump in SOL prices, the number of large holding addresses suddenly increased by 37%, which may indicate that a significant market change is about to occur.

Overall, in the current altcoin market, blindly following trends is no longer advisable. Investors need to be more cautious and conduct in-depth research to find opportunities in this rapidly changing market.