There is a phenomenon worth paying attention to: when a project drops from a high level, there are always voices asking "Is this the bottom? Can I buy the dip?" Taking ADA as an example, it fell from $1.20 all the way down to $0.35, a decline of nearly 70%, and its market cap shrank from $25 billion to $12.5 billion. The urge to buy the dip begins to stir, but it might not be that simple.

Why do I say this? Because as early as October last year, when ADA was around $0.60, some analysts pointed out that the project was overvalued. The comment section was very heated at the time—various opinions were expressed. Looking back at the three-month trend now, the doubts from back then have gradually become reality.

From the project itself, ADA does have some "credentials." As a participant in the 2017 ICO wave, it received quite a bit of attention early on, and was called a potential "Ethereum competitor" due to its layered design and POS mechanism concepts. But that was eight years ago. The rules of the crypto market are changing, the ecosystem is evolving, and relying solely on past glory and technical concepts makes it difficult to maintain an advantage in competition.

Where exactly are the issues? First, the fundamentals—besides being "old enough," the project's development speed and ecosystem construction seem to lag behind market expectations. No matter how good the technology is, without real-world applications and a user base, valuation will ultimately revert to reality. Second, the market environment has changed. The tokenomics model of 2017 is completely different from today's crypto market logic, and old value propositions need to be proven with new performance.

So rather than rushing to buy the dip, it's better to ask a few questions first: When will the fundamentals of this project improve? Is the ecosystem truly becoming more active? What have competitors been doing during this period? The answers might be more important than the price itself.