The Zoom Effect refers to the behavioral phenomenon where individuals become more interested in and invested in certain cryptocurrencies following notable price increases or media coverage. When a particular coin experiences rapid appreciation, it often attracts attention from traders and investors.This effect is driven by the fear of missing out (FOMO). People witness others profiting and feel compelled to jump in, leading to increased trading volume and further price surges. As more investors pile in, the initial momentum can create a feedback loop, pushing prices even higher.However, this can also lead to volatility. As prices rise rapidly, some investors may decide to cash out, triggering sharp declines. The Zoom Effect can lead to unsustainable market behavior, where prices detach from intrinsic value based solely on hype and speculation.Overall, this phenomenon illustrates how perception and emotional responses can heavily influence market trends and investor decisions.
Avalanche Treasury Co. to Go Public in $675M Deal With Mountain Lake Acquisition
Avalanche Treasury Co. (AVAT), a digital asset treasury company aligned with the Avalanche Foundation, said Wednesday it has agreed to