Looking at the recent market conditions, liquidity has dropped to nearly historical lows, even more extreme than at the end of the 2022 bear market. Rough estimates suggest that only about 10%-15% of the total network funds are actively participating in liquidity, with the rest mostly air positions and various leverage positions engaging in self-destruction.

The performance of altcoins in the secondary market is the most exaggerated—any pull can easily push them up by 50%-200%, only to be slammed down with a direct cut in half or more, creating a rollercoaster in a true liquidity vacuum. Retail investors reacting a bit too late often become the bagholders.

The derivatives market is even more absurd, with 24-hour liquidation volumes easily surpassing one billion dollars, both long and short positions being harvested, forming a "perpetual motion" cycle. Behind this extreme volatility reflects a structural imbalance among market participants.

Regarding new coin launches, a standard script has already formed: opening with 20-50x gains, retail investors rushing in, VCs, institutions, and market makers dumping at precise moments, then pulling another wave to give last-minute bagholders some hope before repeating the cycle. Major exchanges' spot and derivatives new coins are basically caught in this routine.

The MEME coin ecosystem is even more brutal. Except for a few varieties controlled by top whales (platforms, KOLs, group admins, large holders often being the same group), 99.9% of MEME coins are doomed to be "short-lived" from birth. No matter how good the narrative or how active the community, without a whale to take over, the only ending is a sharp decline after a rise—what goes up must come down. Retail investors turn into a zero-sum PVP game, where the last bagholder is often the one shouting the loudest, and the more aggressively they shout, the more ruthlessly they cut.

Ultimately, this market is no longer about investment but naked zero-sum slaughter. In the final stages of liquidity exhaustion, the only survival logic is to be colder, react faster, and act more ruthlessly than others.