Recent analysis of mainstream currency investment logic

Author: Revc

Foreword

Recently, the cryptocurrency market has performed strongly, with the total market value rising to US$2.7 trillion, an increase of 3.21% from the previous day. Market trading volume also increased significantly by 67.79% in the past 24 hours, reaching $208.85 billion. However, market risks still cannot be ignored. According to Coinglass's morning data, the liquidation amount of the entire network in the past 24 hours reached 695 million US dollars, of which 317 million US dollars were liquidated for long orders and 378 million US dollars were liquidated for short orders. If you are not careful at this time, the price of leaving the market may be huge.

Since Trump won the US election, the ceiling of regulatory restrictions in the encryption industry has been opened. To what height can the current market rise? We try to start from Look for answers in the recent performance of mainstream currencies.

A brief analysis of mainstream currencies

BNB

BNB In the past seven days, BNB has only increased by 10%. After hitting a high of $643.3, the price began a volatile correction. BNB has strong practicality in the Binance ecosystem, such as transaction fee deductions, which provides it with long-term value support. Recently, the linkage between the Binance ecosystem and the MEME sector has alleviated the pressure to list the currency to a certain extent, but it has not yet been directly reflected in the currency price. In the long term, Binance needs to further optimize the new model around staking BNB and the pre-market trading market to narrow the gap with user expectations and build a healthier and more sustainable new narrative for BNB.

BTC

As Trump confirms his victory, long-term The regulatory pressure that suppressed the development of the encryption industry has gradually been lifted, and there is no adverse news in the short term. BTC has ushered in a new development cycle. Some Wall Street analysts pointed out that Trump is less likely to be constrained before the midterm elections, which means that the encryption industry is expected to maintain a moderate and upward atmosphere in the next two years. Every time BTC breaks through a new high, the support for market value is strengthened and the risk of severe corrections caused by regulatory uncertainty is also reduced. However, at the operational level, we still need to be alert to black swan events, such as economic conditions that cause the Federal Reserve to change its interest rate cut path, geopolitical conflicts, and occasional events during periods of excessive presidential power. After all, the current market is full of greed and sensitivity.

ETH

During the FUD period before the election, ETH went through A month of volatility, especially on social media, has everyone from investors to crypto researchers wondering where Ethereum is headed. Compared with Bitcoin's continuous new highs, Ethereum is still far away from the high point of the previous cycle. Therefore, the main logic of ETH in the near future is to repair the oversold. The strong performance of the price rising from US$2,600 to US$3,200 has also triggered the concern of some investors. FOMO. However, near $3,200 is still the holding point in the previous cycle. As the “second best” asset in the crypto industry, Ethereum’s technical strength and decentralization are enough to allow it to gradually break away from the “altcoin” label. In particular, its huge developer community provides support for its development. When talking about ETH, Solana has to be mentioned. The short-term logic of ETH is to recover from overslumping. In the long term, we still need to pay attention to how it can develop an application layer full of business innovation vitality, and consider whether to shift the focus of the community to North America to attract more Web2 entrepreneurs to Web3. Currently, Ethereum’s layout in Europe, Asia and North America is relatively balanced.

Solana

Solana price is still at the top of the previous cycle Shock, but obviously this cannot meet the expectations of its supporters. Since the FTX incident, Solana has repaired the correlation with ETH. It is also an excellent L1, and Solana has returned to the peak where it belongs. It is worth mentioning that the proliferation of VC coins also exists in the Solana ecosystem, but the community's commercial sensitivity and innovation have covered up such problems, and RWA, MEME and DePin tracks have emerged. Ethereum is more of a decentralized organization with blurred boundaries (resulting in weak value support for governance tokens), and infrastructure construction with weak commercial returns consumes a lot of energy and resources. This has not changed significantly from the current perspective. Solana is an Alpha asset worthy of attention in the long term. After BTC stabilizes at new highs, liquidity spillover is expected to perform well.

SUI

SUI has recently broken through new highs with a full circulation market value of 32 billion US dollars, with an increase of over 67% in the past seven days. The team has the pragmatic spirit and engineering rigor of major Internet companies. It is different from other L1s. It focuses on compliance and focuses on the game track. The ecological TVL has increased significantly recently, but we must pay attention The sustainability of SUI’s price trend, the gaming track’s occasional performance in the bear market, and whether a new narrative can develop in the context of the bull market remain to be seen.

Summary

As Bitcoin continues to break new highs and the Federal Reserve releases Liquidity, the crypto industry will usher in at least two years of "rainy" development. Investors should find an investment method and track that suits them in order to obtain good returns in this cycle. Although the road is far, the journey will be steady.