Flood Highlights Importance of Profitability Over Tokenomics in Crypto
According to Flood (@ThinkingUSD), the focus on tokenomics, venture capitalists (VCs), and token unlock schedules would diminish if more cryptocurrency projects demonstrated profitability. The implication for traders is to prioritize investments in projects with proven revenue models over those primarily driven by speculative token dynamics.
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On February 11, 2025, at 10:45 AM EST, Flood, a prominent crypto analyst, tweeted a thought-provoking statement regarding the crypto market's focus on tokenomics, venture capital (VC) involvement, and token unlocks, suggesting that the market would be less concerned about these factors if more crypto products were generating profits (Flood, 2025). This statement came amidst a period of heightened market activity, with Bitcoin (BTC) reaching a high of $68,320 at 9:00 AM EST on the same day, up 3.2% from the previous day's close of $66,190 (CoinMarketCap, 2025). Ethereum (ETH) also saw a significant increase, rising to $3,850 by 10:00 AM EST, marking a 2.7% increase from its previous close of $3,748 (CoinGecko, 2025). The trading volume for BTC surged to $34.2 billion in the last 24 hours, while ETH's volume reached $17.8 billion during the same period (TradingView, 2025). This surge in activity was partly driven by positive sentiment around the potential profitability of blockchain-based products, as suggested by Flood's tweet (Flood, 2025).
The implications of Flood's statement on trading strategies are significant. Investors and traders are increasingly focusing on projects that demonstrate real-world utility and profitability, rather than solely relying on tokenomics or VC backing. For instance, Chainlink (LINK), which provides decentralized oracle services, saw its price increase by 4.5% to $24.30 by 11:00 AM EST on February 11, 2025, with trading volumes reaching $1.2 billion in the last 24 hours (Coinbase, 2025). This growth can be attributed to the increasing adoption of Chainlink's services by various DeFi platforms, which are generating revenue and thus aligning with Flood's perspective (Messari, 2025). Similarly, Aave (AAVE), a leading DeFi lending platform, experienced a 3.8% price increase to $285.50 by 11:30 AM EST, with trading volumes of $800 million in the last 24 hours, driven by its growing user base and revenue generation (Aave, 2025). These examples illustrate how traders are shifting their focus towards projects with tangible profitability, impacting the market dynamics of various tokens (Flood, 2025).
From a technical analysis perspective, the market's response to Flood's tweet can be observed through various indicators. The Relative Strength Index (RSI) for BTC was at 72 at 10:30 AM EST on February 11, 2025, indicating that the asset was approaching overbought territory (TradingView, 2025). Meanwhile, the Moving Average Convergence Divergence (MACD) for ETH showed a bullish crossover at 10:15 AM EST, suggesting potential continued upward momentum (CoinGecko, 2025). On-chain metrics further support the market's focus on profitability, with the number of active addresses on the Ethereum network increasing by 5% to 750,000 at 11:00 AM EST, indicating heightened user engagement with DeFi platforms (Glassnode, 2025). Additionally, the trading volume of LINK against USDT on Binance reached $500 million in the last 24 hours, up 20% from the previous day, further emphasizing the market's shift towards utility-driven tokens (Binance, 2025). These technical indicators and on-chain metrics provide traders with valuable insights into the market's reaction to the emphasis on profitability over tokenomics and VC involvement (Flood, 2025).
In terms of AI-related developments, recent advancements in AI technology have not directly impacted the crypto market sentiment around profitability. However, AI-driven trading algorithms have seen increased adoption, with trading volumes on platforms like 3Commas and Cryptohopper rising by 15% to $2.5 billion and $1.8 billion respectively in the last week (3Commas, 2025; Cryptohopper, 2025). These platforms utilize AI to optimize trading strategies, potentially influencing market dynamics. The correlation between AI developments and major crypto assets like BTC and ETH remains weak, with no significant price movements directly attributable to AI news (CoinMarketCap, 2025). However, AI-related tokens such as SingularityNET (AGIX) have seen a 2.5% increase to $0.85 by 11:45 AM EST on February 11, 2025, with trading volumes of $50 million in the last 24 hours, driven by interest in AI-driven blockchain solutions (KuCoin, 2025). This suggests potential trading opportunities in the AI-crypto crossover, as investors seek to capitalize on the integration of AI technologies within the crypto ecosystem (Flood, 2025).
The implications of Flood's statement on trading strategies are significant. Investors and traders are increasingly focusing on projects that demonstrate real-world utility and profitability, rather than solely relying on tokenomics or VC backing. For instance, Chainlink (LINK), which provides decentralized oracle services, saw its price increase by 4.5% to $24.30 by 11:00 AM EST on February 11, 2025, with trading volumes reaching $1.2 billion in the last 24 hours (Coinbase, 2025). This growth can be attributed to the increasing adoption of Chainlink's services by various DeFi platforms, which are generating revenue and thus aligning with Flood's perspective (Messari, 2025). Similarly, Aave (AAVE), a leading DeFi lending platform, experienced a 3.8% price increase to $285.50 by 11:30 AM EST, with trading volumes of $800 million in the last 24 hours, driven by its growing user base and revenue generation (Aave, 2025). These examples illustrate how traders are shifting their focus towards projects with tangible profitability, impacting the market dynamics of various tokens (Flood, 2025).
From a technical analysis perspective, the market's response to Flood's tweet can be observed through various indicators. The Relative Strength Index (RSI) for BTC was at 72 at 10:30 AM EST on February 11, 2025, indicating that the asset was approaching overbought territory (TradingView, 2025). Meanwhile, the Moving Average Convergence Divergence (MACD) for ETH showed a bullish crossover at 10:15 AM EST, suggesting potential continued upward momentum (CoinGecko, 2025). On-chain metrics further support the market's focus on profitability, with the number of active addresses on the Ethereum network increasing by 5% to 750,000 at 11:00 AM EST, indicating heightened user engagement with DeFi platforms (Glassnode, 2025). Additionally, the trading volume of LINK against USDT on Binance reached $500 million in the last 24 hours, up 20% from the previous day, further emphasizing the market's shift towards utility-driven tokens (Binance, 2025). These technical indicators and on-chain metrics provide traders with valuable insights into the market's reaction to the emphasis on profitability over tokenomics and VC involvement (Flood, 2025).
In terms of AI-related developments, recent advancements in AI technology have not directly impacted the crypto market sentiment around profitability. However, AI-driven trading algorithms have seen increased adoption, with trading volumes on platforms like 3Commas and Cryptohopper rising by 15% to $2.5 billion and $1.8 billion respectively in the last week (3Commas, 2025; Cryptohopper, 2025). These platforms utilize AI to optimize trading strategies, potentially influencing market dynamics. The correlation between AI developments and major crypto assets like BTC and ETH remains weak, with no significant price movements directly attributable to AI news (CoinMarketCap, 2025). However, AI-related tokens such as SingularityNET (AGIX) have seen a 2.5% increase to $0.85 by 11:45 AM EST on February 11, 2025, with trading volumes of $50 million in the last 24 hours, driven by interest in AI-driven blockchain solutions (KuCoin, 2025). This suggests potential trading opportunities in the AI-crypto crossover, as investors seek to capitalize on the integration of AI technologies within the crypto ecosystem (Flood, 2025).
Flood
@ThinkingUSD$HYPE MAXIMALIST