Behind the fluctuations in the cryptocurrency market hides complex capital flows and behavioral patterns. From market rises to falls, wealth effects, marginal buyers, leverage risks all play important roles. This article will explore how these factors drive the cyclical volatility of the market and provide some coping suggestions for investors.
The fundamental reason for the market's rise is the influx of new funds. This inflow of funds not only drives prices up but also creates wealth effects, stimulating further development of the ecosystem. Airdrops are important tools for creating wealth effects. In September 2020, Uniswap distributed 400 UNI tokens to over 0.25 million addresses (valued at approximately $1400 at the time), with a total value exceeding $0.9 billion. This airdrop not only benefited users but also acted as a catalyst for the explosive growth of the DeFi ecosystem. In December 2023, Jito distributed 90 million JTO tokens to users, with a total value of up to $0.165 billion. Some users obtained returns of up to $0.01 million by transferring JitoSOL tokens worth only $40. Similar to Uniswap's impact on DeFi, Jito's airdrop drove the growth of Solana's total value locked (TVL) and sparked a significant amount of on-chain activities. In addition, the Jupiter project distributed 0.7 billion JUP tokens to over 2.3 million wallets, becoming one of the widest distribution airdrops in crypto history. These airdrops convert users into stakeholders, and beneficiaries often reinvest wealth back into the ecosystem, creating a self-reinforcing positive cycle.

I have learned alot from other users on here i am more than thankful for each one of you that gave opinions, i learned alot from yous, definitely love the support and just ppl wanting to help in general for the new users we see wanting to learn and that are not afraid to ask questions..
I love helping others understand the charts.. and most definitely love the help of others foremost. Have a great trading week my friends , mistakes, help you learn so dont be afraid of makin...

As the market has recently taken a dip, many investors especially beginners are voicing concerns about what feels like a crash. But let’s take a step back and put things into perspective.
A Pullback, Not a Panic
Personally, I believe this is a very healthy consolidation. In fact, I would be more concerned if the markets continued to rise endlessly without any corrections.
Since late December, stocks have experienced a noticeable decline. Howe...

Serve Robotics ($SERV): A Strategic Play at $16.80
Serve Robotics ($SERV) is trading at $16.80, presenting a compelling opportunity in the fast-growing robotics and automation sector. Here’s a quick breakdown using The Roman Sun Tzu Method™:
Technical Analysis
• Price Action: Trading near $16.80, just above key support at $16.15. Holding this level is essential to sustain bullish momentum.
• Resistance Levels: Immediate...