Crypto Market Structure Undergoes Significant Changes

Crypto markets have undergone significant changes over the years, leading to a shift in market structure. One prominent trader, CryptoCred, has warned that this new landscape makes it challenging for traders to rely on traditional methods of identifying safe bets.

In a recent post, Cred pointed out that much of the top 50 cryptocurrencies now consists of 'ghost coins or bloated governance slop' that have underperformed and are difficult to treat as investable. This has rendered market capitalization a poor proxy for quality, making it harder for traders to make informed decisions.

Cred also noted that speculation in the crypto market is becoming increasingly concentrated, with too many tokens competing for attention and much of the highest-velocity speculation happening away from centralized exchanges. As a result, the classic 'alt season' wealth effect has become harder to replicate.