Cryptocurrency analyst Joao Wedson shared sharp insights on the current market landscape, noting that the days of explosive gains from major coins are fading.
Wedson pointed out that compared to earlier cycles, the return on investment (ROI) for leading cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), XRP, Cardano (ADA), and Dogecoin (DOGE) has steadily declined year after year.
“With every cycle, the 1-year ROI of BTC, ETH, XRP, ADA, and DOGE continues to shrink. These top cryptocurrencies no longer deliver the massive profits they once did,” Wedson explained, emphasizing that building significant wealth with small amounts of capital has become increasingly difficult.
The analyst believes that outsized returns are now only possible by getting into promising new projects at their earliest stages.
“The chances of getting truly rich are limited to new projects where you can get average buy-in close to the launch price. But that’s a complex process in itself.”
However, it is important to note that smaller projects carry extremely high volatility risks, which can lead to the complete loss of invested capital, including the principal.
Wedson also highlighted the negative impact of rising leverage ratios on exchanges, warning that “leveraged trades cause heavy losses for many investors and siphon liquidity out of the market.”
He reminded that in previous cycles, it was possible to see 2–3 cryptocurrencies deliver returns of 10x to 100x, whereas today, the maximum profit potential has dropped significantly, typically ranging only between 1.5x and 6x.
“The chances of getting rich decrease with each cycle.”
Wedson also drew attention to social media sentiment and search activity, noting, “Google searches have recently reached a local peak. When excitement is at its highest, that’s usually when whales are selling.”
