The essence of the crypto market is a game of belief. From a certain perspective, tokens are the most direct financial instruments created by humans—they directly convert investors' expectations and market attention into liquidity. Price fluctuations are not driven by utility value, but by stories, expectations, and people who know how to turn market focus into chips. This is fundamentally not a traditional market; it’s more like a psychological game full of variables. Most participants haven't really figured out where they stand.

The process of price discovery in the market can actually be traced. No matter how project teams hype it up, all tokens generally follow the same cycle—initially driven purely by speculation, with little to no practical application. Prices soar purely on herd mentality, communities gather around distant visions, and marketing volume drowns out reality. Then, an inevitable correction occurs—this round will shake off the weak-willed and expose investors who jumped in after hearing just one slogan.

A significant retracement is actually a watershed. Projects without genuine demand begin to fade: social media activity halts, development pauses, and they gradually disappear from view as funds flow elsewhere. But the tokens that survive will enter the next phase—when hype subsides, real applications gradually take shape. These projects will go through a long and steady accumulation period until the next cycle begins.