From a financial and governance perspective, the fundamentals are fine, and proposal votes are proceeding normally. So what is the reason for the lack of a sharp surge? To put it simply, it’s about making way for the bearish forces—there are both retail investors and quite a few institutions involved.

Honestly, in the holding structure of these tokens, large holders account for a significant proportion, so the market cap is limited. LPs could theoretically move to other DEXs, but what about the reality? The performance differences among the top players in the entire DeFi industry are only about 10 percentage points. Looking for alternatives further down the line, security starts to drop significantly. Under these circumstances, the probability that they will move is actually quite low.

More importantly, institutions have very high requirements for liquidity depth—this directly limits their options. Plus, this direction was chosen by the voting community itself; people tend to follow the crowd. Once a decision is made, the motivation to exit is not that strong. The churn rate may even decrease further, forming a certain balance.