The highly anticipated Altcoin season has not yet come true, and Deutscher believes that it has solved the reason behind it.

Deutscher stressed that the main factor of the movement of capital from large subcoins on the X on the X is the rise of the Pump Fun platform, which allows users to easily create on-Chain breast coins.

Traditionally, during the rally in Bitcoin, speculative capital turns to subcoins with medium and high market value; This nurtures the process of investors as “subcoin season” (subcoin season).

For example, according to CMC Altcoin Season Index, the crypto market is accepted in the Altcoin season if the first 100 coins (excluding stabilcoins such as tether, branches and asset supported tokens such as WBTC, Steth, Clınk).

Currently, however, CMC Altcoin Season Index is only 37, which shows that the expected Altcoin season has not yet happened.

According to Deutscher, this time the market cycle followed a different course. Normally, the speculative capital flowed to the best subcoins, while investors preferred to turn to on-Chain tokens with a lower market value.

“The reason we can’t observe no ‘sub-season’ in large subcoins, the fact that the speculative capital, which used to flow to the upper 200 assets, decided to take its place and flow to the low market values, Deut Deutscher summarized this situation.

Platforms such as Pump Fun offer users the opportunity to start breast coins instantly. This creates almost a casino atmosphere in the crypto market; In the early stage, those who invest in these tokens make big gains, while those who are mostly retail investors have suffered severe losses due to the loss of value in a short time with low liquidity token.

In 2022, most retail investor losses were experienced in large subcoins with sufficient liquidity in stock exchanges, while Deutscher states that this time is different. Investors have turned to non-liquid on-Chain breast coins, which has led to a great destruction that caused the destruction of the reserves.

Deutscher, “This situation, except Luna, the early 2022 range of the decrease in the destruction of a much greater destruction. Bitcoin and some large altcoins are still in the trend of macro bulls, retail investors, low liquidity, low-chain breast coins stuck in the form.” He made a statement.

Interestingly, he doesn’t blame Deutscher Pump Fun. According to his statement, restrictive SEC regulations made it difficult for projects to be released fairly in traditional methods, which led the industry to search for new models.

Therefore, the emergence and rise of Pump Fun is considered as a result of the existing situation. “Maybe this changes during the Trump period,” Deutscher ended his sharing with a hopeful speculation. ”

As a result, behind the fact that the Altcoin season does not start as expected, the investors’ capital is more risky and rapidly gaining value and losing to On-Chain low market to valuable breast coins.

This is seen as a new trend in the crypto market and has both great opportunities and serious risks for investors.