May 16, 2024 Grandpa checks in

Bitcoin broke through 66,000 with a big positive line, which made people mistakenly think that the market rebounded and was about to start the rise again. However, the actual rise was only concentrated in a few currencies, not a general rise. As the second largest Ethereum, data showed that the net increase in supply in the past week exceeded 13,000, and the static inflation rate was about 4%. Although it was much lower than PoW, it did not perform well for market expectations. The most direct reason was that the activity on the chain shrank severely, which was directly reflected in the fact that gas was reduced to single digits.

Since this round of bull market, although the price of Ethereum has also risen, more than 3 times relative to the bottom, it has been criticized by the market. The most important reason is the poor performance of the tokens of ecological projects. Due to the decline in the overall activity of the market, the profits of old DeFi projects are not high. The result of the stock competition is that only a few have emerged, and most have only followed the market to rise slightly or even go sideways, not to mention helping everyone get out of the trap. Therefore, the key to the rise of Ethereum in the future lies in the activity on the chain.

However, objectively speaking, it is not easy to unwind the projects bought at the high point of the bull market, especially the cottage projects, after experiencing the bear market. For cottage projects, it is not easy to survive several cycles, and there must be strong funds behind them to drive them. Although the prices of old DeFi projects in this round of market are not eye-catching, one of the reasons is the increase in circulation, which makes the market value not low. This is why I keep telling everyone that when buying hot new coins, don’t take long-term positions, because with the increase in circulation, even if the market value rises sharply, the final price can only perform mediocre.

As for the market, it has risen in the short term, but the overall market is still in a volatile pattern. Two days ago, I asked everyone to buy a few altcoins. According to the recent market practice, it is to place orders at a price of 10-20 points for swing trading, and then keep some for the long term. Of course, this is still the question I mentioned before. If you want long-term or short-term swing profits, my choice is to allocate some in different positions. The big cake directly came to 66,000. If it can stabilize, the altcoins will rise a little. Just wait for the short-term.

Thank you for your attention and likes.