During the Chinese New Year this year, the bull market started again, and some stagnant sectors led by MEME, AI, RWA, and BNB started to start until recently.
Recently, due to the application of Ethereum spot ETF, the Ethereum sector has also risen slightly, but the overall performance is still not very good. Looking at the projects that have skyrocketed in this round of bull market, most of them are different from the previous round, and the basic overlap is not even 10%.
The last round of bull market was dominated by DEFI, Lianyou, and public chains, and only a few of the above three sectors were relatively bright in this round, and most of them performed poorly. In the last round of bull market, VC capital new coins were quite popular and performed strongly. However, most of the investment in this round was "what retail investors like", which changed the way of chip distribution. Capital and project parties reserved too many chips, which became a criticism, and no one paid for it.
So the question is, what should we do, should we follow the trend and chase the rise, or ambush the sluggish sector?
First of all, in addition to phenomenal projects such as Bitcoin and Ethereum, most projects in this circle will sooner or later conform to the parabolic theory, that is, when they are hyped to a certain extent, they will cut leeks, such as FIL, LTC, BCH, UNI, EOS, etc. Many projects peaked at the end of 2017, many will peak in 21, and some will peak in this round. Even if there are good applications, it is still the same saying that time makes things happen.
Secondly, 99% of the projects will experience a long-term wash before pulling the market. ORDI, SOL, AR, CFX, all of these have experienced it. Which of the depressed sectors are completely garbage? Which are just washes? This is something worth considering and an opportunity.
In addition, look at the position of Bitcoin.
Any sector will be washed, AI has washed, BRC has washed before, and is washing now, and MEME has been washing for two years. Then many sectors have also experienced a bull market, AI has been bullish, BRC has been bullish, MEME is bullish, and it has been bullish for 2 months.
So in the second half of the year, should we choose MEME or AI, which are booming and have been booming for a long time, or those sectors that have not yet exploded, such as public chains or Lianyou?
From the main point of view, just like when Inscription was the hottest, I began to slowly switch to other sectors. Now, MEME should do the same.
Let me give you a simple example.
Inscription in December last year and Ethereum L2 in December last year were laid out at the same time. Even if L2 does not perform well, it will not lose money today, but Inscription will.This is not a disparagement of inscriptions, but a strategy. After the inscriptions go up, you can still buy, but how should you buy?
Buy less, buy small, buy in batches, and be optimistic about the long-term. Pay attention to short-term callbacks and the risk of zeroing most inscriptions. For projects that have risen dozens of times or hundreds of times, if everyone has made money before, then you should stop profit in batches. If you didn’t buy it before, and now you go ten times or a hundred times to help others? I think it’s stupid.
MEME’s strength this round is ultimately due to the changes in this round of hype and retail investor trends, but most retail investors will not buy too much MEME, or if they buy it, they will not get such a high multiple. This is why MEME can continue to rise.
meme does not need logic, has no application, and retail investors are happy together, but like GME at the beginning, many years later, everyone only remembers the GME myth, and no one knows how many corpses are buried. If there is really a new hot MEME, you can choose to deploy a small amount if you can afford it, but it is no longer suitable for comprehensive deployment or large-scale deployment, and you should stop profit in time.
In the second half of the year, you can try to deploy something like RWA, such as ONDO (this has not had a decent wash, and now the layout should be considered in batches), which is just a pre-hyped wave. Or the likes of 袢游 have always performed mediocrely. Or the inscriptions of the BTC ecosystem that have been relatively sluggish recently, such as L2.
I have recently deployed RACA, BIGTIME, MAGIC, GPT, RSS3, pixel, etc., and they all performed well. The main big cakes, Ethereum and SOL, are still rarely moved in the long term.
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