The current cryptocurrency market presents a clear rhythm: mainstream coins remain stable, while small and medium-sized coins show significant differentiation, with capital flows following market narratives.

Mainstream encryption currencies such as Ethereum (ETH), Solana (SOL), Binance Coin (BNB), and Ripple (XRP) have shown stable performance, with a stable chip structure. Ethereum has recently been trading in the range of $4300 to $4400, with early investors gradually exiting while new funds are slowly entering the market. Bitcoin (BTC) is in a similar situation, with on-chain data showing stable chips, panic selling has ended, and a significant decline is unlikely in the short term.

The small and medium-sized encryption currency market has shown significant differentiation, with many early speculative tokens being eliminated. Currently, investors are more focused on coins with strong community strength and clear project direction. The pace of capital inflow is relatively slow, reflected in the "turnover + new funds gradually taking over" model, with no major players daring to make a massive increase at once.

From the distribution of sectors:
1. AI and data chain projects such as WLD, ARKM, FET, etc., rely on hype, but once the topic gains traction, short-term returns can be substantial.
2. Layer 2 and Restaking related projects such as ARB, OP, EIGEN, etc., have stable structures, clear funding preferences, and relatively steady trends.
3. RWA (Real World Assets) and stable yield projects such as ONDO, PLUME, GMX, SYRUP, etc., are mainly led by institutions and are one of the few tracks that can withstand bull and bear markets.
4. GameFi and social chain projects such as UXLINK, RON, GALA, etc., also rely on hotspots, with significant emotional fluctuations and challenging timing for grasping opportunities.
5. Meme coins and sentiment coins like DOGE, SHIB, PEPE, BONK, BOME, PNUT, etc., have a high proportion of retail investors holding the coins, making it difficult for large players to effectively control the market. When the price rises, it can easily trigger a large amount of trapped selling.

Overall, large holders of mainstream cryptocurrencies remain cautious, while the funds in smaller cryptocurrencies are relatively dispersed. The entire market is closely related to Bitcoin's trends; when BTC fluctuates, other cryptocurrencies also experience volatility, and investment opportunities mainly arise near support levels. In this market environment, investors need to remain cautious, pay attention to the fundamentals of projects, and closely monitor changes in market sentiment.