The altcoin market has once again fallen into a slump. How to cope with the current predicament?

Since the beginning of this year, the most notable feature of the cryptocurrency market has been the lack of sustained upward momentum. This situation is reflected not only in the small coins on trading platforms, but even the on-chain tokens that performed well in the fourth quarter of 2024 are facing the dilemma of significant declines.

Data shows that the decline of major AI-related tokens in 2025 is as follows:

• Virtual：-79.2%
• Ai16z：-85.5%
• AIXBT：-68%
• Griffain: -80.3%
• Buzz: -72.4%
• Fartcoin：-67.5%
• ARC：-62%
• Swarms：-45%

In less than three months, these once-popular leading projects have dropped by eighty percent. Although it cannot be definitively concluded that this sector has failed, it is an undeniable fact that market attention towards it has clearly decreased, and it will be difficult to regain the previous level of enthusiasm in the short term.

At the same time, the situation in the celebrity coin sector is even more severe. Since the trend started with a well-known political figure, other celebrities and even countries have followed suit. Here are the declines of major celebrity coins since their peak:

• Trump：-77.1%
• Melania：-91%
• Vine：-92.7%
• jailstool：-93.5%
• Jellyjelly：-98%
• CAR：-98.5%
• Libra: -94.3%

There is a saying in the cryptocurrency market: "Invest in the new, not the old," which means that funds tend to prefer speculating on newer concepts. However, compared to AI-related tokens, the decline in the celebrity coin sector has been even more severe. So, what are the main issues currently facing these two sectors? In the absence of new concepts, is there still a possibility for breakthroughs?

Current Narrative Dilemma: Overreliance on Concept Hype

In the field of AI-related tokens, many projects remain in the "concept demonstration" and "future planning" stages, lacking practical and scalable products. Even though some operational services have been launched on the market, there are issues such as complex interfaces and poor user experiences, making it difficult to attract ordinary investors for long-term participation. Worse still, some project parties, in order to cater to investors' expectations for "AI + blockchain," often inflate prices through exaggerated promotions, while actual applications are repeatedly delayed. Over time, funds lose patience, attention begins to shift, leading to significant declines in the prices of related tokens.

In terms of celebrity coins, although the participation of a certain political figure has sparked a frenzy, problems also arise when the cryptocurrency market encounters the "celebrity effect decay": it is challenging to find another public figure who can surpass him in terms of topicality and influence. Subsequent politicians, internet celebrities, and stars from various countries have attempted to follow suit, but they have been unable to replicate the initial funding heat and market sentiment. As the market's enthusiasm dwindles, the celebrity coin track exhibits characteristics of a fleeting phenomenon, investor confidence rapidly erodes, and prices naturally plummet.

The reason why these tracks are experiencing significant fluctuations is that many projects are only at the "speculative concept" level, lacking real and sustainable revenue models. Whether it's AI-related tokens or celebrity coins, their core narrative relies on the rapid influx of funds and popularity, yet they lack the motivation for users to participate long-term. When the hype subsides, maintaining the price becomes challenging, making it even harder to attract new funds.

Looking for projects with real returns

To stand out in the current market where narratives are scarce, the key is to find products that have "real returns" and are "willing to share with users". The so-called "real returns" are not just the short-term increases that occur when a coin is listed on a trading platform, but rather the ability to continuously generate returns through actual business models and trading behaviors, and to provide feedback to token holders or ecosystem participants.

A certain decentralized trading platform fits this model. It is similar to centralized trading platforms in its operations, with its main revenue coming from contract trading fees. However, this platform uses 100% of the fees to repurchase its platform tokens, and the trading fees are determined by trading volume, thus closely linking the token price with the product's usage.

The data shows that the platform accounts for about 45% of the total trading volume of all perpetual contract decentralized exchanges in a 24-hour period, with a current daily trading volume of $3.78 billion and daily revenue of about $1 million. In the current market downturn, the platform still maintains a very high level of activity, which is why its platform token price remains strong despite the general decline of alts in the past month.

No matter how popular a concept is, it will eventually fade away. What can truly survive in the crypto market are those projects that have product-market fit, high user stickiness, and can generate real profits.