Some FIL holders asked why it has been lying on the floor without moving? It is very active in following the decline, but very slow in following the rise. There are "good news" articles almost every day, integrating with this today, cooperating with that tomorrow, and there will be some dynamics the day after tomorrow, but the price is a mess.

In fact, it is not just FIL in this cycle. The leaders of many tracks have basically not risen much, such as the modular public chain leader cosmos (AOTM), the dex leader UNI, the defi leader CRV, etc. On the contrary, the air meme coins have risen dramatically. If you don’t catch the hot spots related to BTC and meme, you will be lucky not to lose money in this round.

There are several core reasons: there are too many projects incubated by institutions in this cycle, and they are valued at tens of billions or even hundreds of billions of dollars when they go online, and then they are continuously unlocked to cash out. Retail investors in the secondary market simply do not have that much money to take over; most project tokens are essentially useless, they are just meme coins covered with a layer of concept, so retail investors might as well just speculate on pure meme coins with a small market value.

Filecoin is a project that has no substantial ecological applications yet. Institutions are releasing tokens every day, so funds will not speculate on it.

Due to the approval of the ETF, the Bitcoin ETF traded on the Nasdaq in the U.S. can actually be regarded as a U.S. stock. Its price is supported by global funds speculating on U.S. stocks. Traditional financial institutions and financial products can be used on it for investment, hedging, arbitrage, hedging, etc.

There are only two core factors in secondary market transactions: supply and demand. In the case of low-tech content, the importance of demand is far greater than that of supply. The traditional financial market may be better, after all, it is still difficult to start a company and requires a large investment. However, the issuance of tokens in the crypto market is very simple and the cost is very low, so the impact on the supply side is not that big. Even if Bitcoin is halved, the impact on the secondary market is currently very limited. This BTC market is mainly driven by ETF demand and has little to do with halving.

So the core is still demand. Many people think that good technology and good ecology are the most important, but this is actually a misunderstanding. Effective demand is demand, and pseudo-demand is also demand. As long as it can trigger purchasing behavior, it is effective demand from the perspective of the secondary market.

In 2017, 1co exploded, and 99% of the projects were scams at first glance, but they triggered a huge demand for ETH, and ETH skyrocketed; in the second half of 2023, meme coins were all air, and the exchange rate was 65825, but they triggered a huge demand for SOL, and the SOL-related ecosystem also soared.

In one cycle, Ethereum’s technological progress is actually greater and better than in the past, and the supply has been greatly reduced after ETH switched to POS, but ETH’s performance this round is very weak. The core reason is that the demand for ETH cannot keep up.

Back to Filecoin, the essence is the same. There is no effective ecological demand at present. Whether it is pledge, virtual machine or retrieval, there is no good scenario. The demand is insufficient, the plate is large, and the daily release is continuous. The core reason for the sharp rise in early 2021 is that the miners’ pledge demand was huge at that time, so the market rose sharply.

For it, it needs to find the demand scenarios of FIL as soon as possible. This is the core. As for the various articles that encourage people to cooperate with this one today and what technical progress will be made tomorrow, these are not good for the secondary market, so the impact is not great. In the next step, it can only be driven by ecological needs. This is the core.#filecoin #FIL/USDT #币安合约锦标赛