The current crypto assets market is undergoing a new cycle, and understanding its underlying logic is crucial for investors. The main driving force behind this round of market activity comes from ETFs, particularly the launch of Bitcoin ETFs. Behind these ETFs is a significant amount of capital from the TradFi sector, which mainly focuses on Bitcoin and may soon venture into Ether ETFs.

These funds are not interested in or lack understanding of other projects in the Crypto Assets ecosystem, such as various Layer 1 and Layer 2 solutions, AI-related tokens, decentralized physical infrastructure (DePIN), or GameFi projects.

Currently, a large amount of capital is concentrated in the top assets, forming a huge pool of funds. However, unlike in the past, this capital is less likely to flow evenly to all small-cap tokens.

At the same time, the internal cryptocurrency ecosystem has produced many independent ecosystems and liquidity pools due to various technological innovations, such as Layer 2 scaling solutions, high-performance Layer 1 chains, and modular designs. Now, many blockchain projects are attracting user attention through meme tokens (MEME).

Investors should no longer expect the strategy of holding long-term and waiting for small-cap tokens to surge as in the past. The future market for small-cap tokens may become short-lived and volatile, driven by specific narratives, forming an 'ecosystem market'. When a certain narrative reaches its peak, even if the price is still rising, one should consider selling in a timely manner.

A wise strategy is to convert profits into stablecoins or Bitcoin, and then look for the next emerging investment hotspot. This flexible investment approach may be more suitable for the current market environment.