Recently, a new protocol called "ERC314 Protocol" has emerged, which has attracted widespread attention, especially the $SIMP project. The main goal of this new protocol is to reduce the high gas fees on the Ethereum chain and allow users to interact directly with smart contracts outside the decentralized trading platform Swap.
Although this new protocol does sound innovative, a closer look reveals some potential risks:
First of all, this agreement has not yet been officially recognized and there is a certain degree of uncertainty.
Second, some argue that such protocols may be used more for hype than real innovation.
Finally, another potential problem is that if anyone can transfer money to the protocol address, then once a large amount of money is transferred, it may cause price fluctuations. A complete identification and processing mechanism is needed to prevent malicious transactions, but it is not clear whether such a mechanism already exists.
In summary, although the ERC314 protocol brings some new possibilities, the risks involved also need to be treated with caution.
In the world of Web3, various innovative concepts and directions emerge in an endless stream, but some of them, such as the 314 protocol, are often used for hype. Although some projects like AVE have opened a section specifically for the 314 protocol, we will also see many "copycat" versions of the 314 protocol, which requires everyone to distinguish more carefully.
The popularity of the Inscription Project in 2023 is undeniable, but the leading projects that can truly survive and thrive must be those with solid underlying technology, practical value and excellent team support. On the contrary, those project parties that only focus on "short-term" profits often find it difficult to achieve good results.
In this area, we can continue to pay attention to the emerging sectors. The development of any new thing takes time to verify and requires the participation and verification of more people to form a more complete understanding and conclusion. The emergence of the 314 protocol is undoubtedly an effective innovation, but it remains to be seen when it can be widely recognized and when it can be truly implemented.
In this process, it is very likely that industry insiders will question this "new thing", and we should also maintain a dialectical attitude. If it is just a short-term "hype effect", we can take it as an opportunity to learn about new things; if it has long-term "practical value", then continued attention is very worthwhile!
As for the good news about Core, it is unlikely to be true. Some people may make up some content to make people think that they are diligent, but it is still uncertain whether this coin can rise to 5u and stabilize in the next month. The current market shows that the price is in the stage of lowering the cost price, and it may be a low-level wash. In this case, the editor will recommend establishing a first position and covering the position at the support level to hedge the risk. Whether this news is true or false, you should remain vigilant.
What other coins may skyrocket in 2024?
Speculating in cryptocurrencies and stocks is essentially the same, both are zero-sum games. So how do you choose a coin that can increase 100 times? First, look at the circulating market value and total market value, preferably low. Take the little milk dog mentioned by Musk as an example. Its market value is very low, and there is no project party. Such a project is likely to only cut yourself. Secondly, pay attention to new narratives, but don't get involved in too unpopular tracks. New narratives usually mean long-term value discovery, not short-term speculation. For example, the little milk dog is the latest narrative promoted by Musk, and it has been supported by many international kols. Third, choose a place where no one cares. Because well-known coins basically open high or have normal valuations, do you think their unit prices can increase 100 times? For example, although the little milk dog is now known to many people, few people actually buy it. In addition, it is best to choose a token that was launched at the end of the bull market or the beginning of the bear market. When researching or purchasing, the circulation rate should be greater than 50%. For example, the little milk dog was listed at the beginning of the bull market, and the circulation rate reached 100%. Finally, the unit price should be low, and there should be more zeros after the decimal point. If the unit price is a few hundred or a few thousand U at the beginning, it is likely to scare away most investors. Especially in a bull market, most of the investors entering the market are novice investors who tend to only look at the unit price and not the market value. The unit price of meme coins and public chain coins is usually very low at the beginning, and 3-5 zeros are normal. Xiaonaigou fully meets these requirements.
Next, let’s analyze the situation of Ethereum.
Ethereum is expected to halve on April 20, which will be one of the most important events in the future.
Although this halving event is also good news, compared with the previous two halvings, everyone should lower their expectations. Because this halving will not have a big impact on the supply of Bitcoin. Bitcoin has entered the trading era and the mining era has long ended. At present, the total issuance of Bitcoin is close to 21 million, and 19.67 million have been mined, with a mining rate of 93.7%. Next, let's take a look at the impact of previous halving events on the market:
The first halving (2012/11/28): Ancient times, no longer mentioned;
The second halving (July 9, 2016): Before the halving event, the price of Bitcoin first rose by 70%, and then fell back by 30%. In the following week, the market did not fluctuate greatly, but entered a month of decline, with a drop of 30%. Then, Bitcoin began a historical level rise for one year and four months, and finally reached its peak in December 2017.
The third halving (2020/05/11): Before the halving event, the price of Bitcoin first fell by 70%, and then rose by 2.6 times. Then, after the halving event, the price of Bitcoin did not fluctuate significantly, but remained in a 10% range for two months. After that, Bitcoin began to rise by 40%. In May 2021, Bitcoin finally peaked.
The fourth halving (2024/04/20): Before the halving event, the price of Bitcoin first rose by 60%, and then fell back by 18%. At present, the halving event has not yet occurred, so we will wait and see.
In summary:
Halving events usually bring benefits to Bitcoin, but expectations need to be lowered. Generally speaking, the long cycle after the halving event is definitely beneficial, but it takes about two months to realize. In the three to four months before and after the halving, Bitcoin's trend does not have an obvious ups and downs. It is important to note that the 2020 halving event was affected by the epidemic, while the 2024 halving event was affected by the special circumstances of ETFs.
The most important pressure on the daily line is around 70,600. The trend will continue after the breakthrough. Once the space of the Bollinger upper rail is opened, it will enter a strong unilateral upward trend, which may also be the main upward wave in this bull market. On the contrary, if it is a false breakthrough, it will adjust downward to absorb funds. Even if this wave of pull-up breaks through the new high, it is reasonable. The price rose to the upper rail of the daily line in the early stage and then fell back. It tested the lower rail to stop the decline and rebounded, forming a strong rebound structure, but in the end there was a second test. The test did not break the previous low and reversed, sweeping out the bulls who entered the market in advance and ran away before reaching the previous low.
Please operate at the support or resistance level if you are cautious.
At present, when the big cake falls, Shanzi falls; when the big cake rises, Shanzi rises; when the big cake goes sideways, Shanzi rises. Therefore, the editor will not choose to do big cake. Shanzi is more likely to rise.
Support levels: 66500, 67500, 3320, 3250
Pressure level 70000, 71000 3610, 3685
Floating area 67500--69500 3350, 3570
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