The recent fall of new coins (ACT, PNUT) reminds me of the golden pit in the DeFi era. At that time, in September and October 2020, the market was hit hard, especially the DeFi projects represented by UNI, which were directly criticized. However, the first wave of the bull market was eventually launched from the DeFi sector. Trends are worth believing.
As long as there are hot spots on the chain and bring wealth effects, large funds in the secondary market will pull benchmark projects, and once the secondary funds lead the trend, more hot money will flow into the chain to chase the next wealth effect. This relationship is a cycle of mutual achievement.
I still remember that when UNI, SUSHI, and YFI plummeted, new DeFi projects continued to emerge on the chain. The current situation is similar. No matter how the new Meme coins in the exchange fall, the chain is still in full swing.
Next, which track will the funds choose to pull out the trend first? The answer is actually very obvious. After the first wave of trends is over, it will be the turn of other narratives to appear. Just like the last round of NFT, Metaverse, GameFi and other Ponzi projects, they all started to perform after DeFi was pulled out.
