It's said that capital flows into Bitcoin, and altcoins can't move. It sounds reasonable, but that's just the surface explanation. If you ask me, the real reason that crushes small and medium tokens is actually more hidden.

Recently, the most common question from the backend is—"Why is my coin still not moving?" Watching Bitcoin fluctuate at high levels, but your small and medium tokens seem frozen. Many people blame market liquidity.

But this blame shouldn't fall entirely on liquidity. I've been observing the small token sector for three years and want to share something more sobering.

**The first truth: This is no longer an incremental game; it has become a battle for existing assets**

Numbers speak for themselves. The total market cap share of altcoins has dropped from 38.7% in 2021 to 14.2% now. Can you imagine? That's a shrinkage of nearly 64%. The market seems to be growing, but the slice of the pie for altcoins is getting smaller and smaller.

What happens after the approval of spot ETFs for BTC and ETH? Giants like BlackRock and Fidelity have almost all their funds flowing into major coins. By 2025, institutional holdings of Bitcoin will exceed 8%. These funds simply won't look at small-cap tokens. It's like a big river—main channels are rushing, but tributaries are almost dry.

What's the most terrifying? There are now tens of thousands of tokens competing simultaneously; CoinMarketCap alone lists 1,842. Every new project launched divides the limited funding pool even more. This creates a vicious cycle—liquidity isn't concentrated but infinitely diluted. New coins are no longer seen as innovation opportunities; instead, they seem like more mouths to feed.