Looking at this wave of market activity, behind the seemingly lively scene, a large amount of liquidity has actually quietly exited long ago. The only difference is that the approach was too "gentle," so most people didn't notice.

Let's start with Bitcoin. This asset best exemplifies the classic script of "old money getting on board, institutions getting off." Early large holders basically cash out according to a cycle, with no emotional attachment. The data is clear—according to on-chain analysis platforms, those long-term HODLers saw their realized profits peak at $1.47 billion per day in June last year; by October 2025, these veteran players are reducing their holdings at a rate of -104,000 BTC per month, with daily transfers to exchanges reaching about $293 million.

Calculations show that since early last year, early major holders have cumulatively realized about 3.27 million BTC. Where did these chips go? They have been mostly absorbed by ETFs and other compliant products worth nearly $100 billion.

Ethereum's situation is completely different. This time, it's not "whales dumping en masse," but rather the staking system bleeding. According to data from mainstream staking platforms, the net outflow of staked Ethereum throughout 2025 was about 1 million ETH. The chips originally locked in staking are starting to flow into ETFs and various compliant digital asset funds—continuing to earn interest, just in a different container. As of now, the total assets of Ethereum ETFs have surpassed approximately $19.1 billion. Due to differences in liquidity structure, this transfer hasn't caused a concentrated sell-off but rather an orderly migration.

The real casualties are those small coins.

Looking at the net inflow data of crypto funds and ETP products makes it clear:

XRP net inflow for the year is about $3.7 billion

SOL net inflow for the year is about $3.6 billion

And what about the rest? Besides these two leading coins, the total net inflow of all other altcoins in 2025 is only about $318 million.

This comparison alone explains everything. It can be inferred that inside crypto exchanges, apart from a few top coins, the actual net inflow of other altcoins in 2025 might be only one-tenth or even less of that of first-tier tokens like SOL.

In plain terms, the conclusion is quite sobering: in this cycle, liquidity hasn't disappeared; it has just become highly concentrated. The gains haven't decreased either; they have been systematically siphoned off by early participants. For most small coins, this isn't a correction—it's a long-term liquidity vacuum.