So how do we filter out quality and valuable clones?
In popular sectors like public chains, MEME, AI, gaming, L2, DEFI, etc., there are differences in performance among projects within the same sector. Taking MEME as an example, while people, doge, and floki are all established MEMEs, people has a smaller increase, while doge and floki are experiencing a crazy surge. Why is this?
1. Narrative: For instance, Doge has gained attention due to Musk's mention, attracting traffic and capital inflow, which leads to market speculation, resulting in a favorable price.
2. Project community team operations: Community teams actively create narratives or promote progress, such as after being listed on Binance, then expanding to platforms like CB, Bithumb, and Upbit.
3. Strong market makers: Support from powerful market makers.
Meeting these conditions makes valuation and price increase more promising; otherwise, it is constrained. This principle also applies to public chains, gaming, DEFI, etc., as speculation on any coin is inseparable from traffic and capital.
To assess market speculation and new sectors, one can pay attention to the dynamics of Binance, CB, the macroeconomic situation in the U.S., mainstream media, and hot topics in U.S. stocks, as well as statements from celebrities in the crypto space, looking for corresponding narrative projects in the crypto market and analyzing them, closely following market speculation trends. The market is always right.
In the past year or two, new sectors like Depin, RWA, Payfi, BTCfi have emerged, and we should pay attention to whether similar projects have received significant capital favor.
The recent speculation of DOGE and PNUT is an example; even if one cannot predict it, timely follow-up can seize opportunities, as PNUT did not achieve success overnight.
