Opinion: The crypto industry faces a "survival-level" token problem; if funds concentrate on top assets, it could exacerbate market imbalances.

On April 5th, CoinFeed reported that Blockworks co-founder Michael Ippolito published a lengthy article on the X platform stating that the crypto industry is facing a "survival-level" token problem: the growth rate of token supply has significantly exceeded the value it creates, leading to diluted returns and a decoupling of prices from fundamentals. According to data disclosed by DWF Labs, over 80% of projects are priced below their TGE level, with most experiencing a 50%-70% drop within three months, reflecting structural selling pressure in the token market. Michael Ippolito further pointed out that while the overall market capitalization remains relatively stable, the average value of individual tokens is weak, having fallen by approximately 50% since 2021, with most tokens retracing about 80% from their highs. Returns are concentrated in a few top assets, such as Bitcoin and Ethereum.