Bitcoin continues to surge, constantly setting new highs. Ethereum also broke through the new high early this morning in a wave of rally. Many may not understand the current trend, feeling that Ethereum is starting to catch up while altcoins remain stagnant. The overall activity in the current market is relatively low, causing altcoins to perform poorly, appearing very 'garbage'.
However, the market will eventually arrive. The key is whether Ethereum can continue to strengthen after breaking through new highs. Once it stabilizes and continues to rise, even if market activity is low, altcoins will follow Ethereum's lead.
At this stage, the most important thing is to hold onto your chips firmly and not to change positions easily, avoiding situations where the coins you sell start to soar while the ones you buy are at a high. Especially for recently launched coins, participation is not recommended; manage risks well and proceed steadily.
But this repeated oscillation is a precursor to stabilizing at 4000 Matic and the rise of altcoins. Today's market focus:
1. New coin VANA: The market maker pushed it to 35 Matic last night before crashing back to 26 Matic, with significant volatility, so caution is advised.
2. FTX restructuring: The restructuring plan will take effect on January 3rd, with FTT subsequently surging by 30%.
3. CRV dynamics: The founder has begun buybacks, which is beneficial for restoring market confidence.
4. BlackRock ETF: Continuous inflow of funds indicates a major market trend is about to arrive.
Popular project dynamics:
1. CAT: It surged by 80% yesterday and is currently stabilizing around 60%. As the first meme coin recently launched on BN, its performance is strong, with a market cap of about 400 million Matic.
2. BSC chain IP benchmark: If the BSC ecosystem is to rise, it will definitely need a flagship IP. DWF was one of the market makers for CAT; after exiting, it announced a return today, further strengthening CAT's performance and potential.
Summary: The overall market is gradually building strength. After ETH stabilizes at 4000 Matic, the altcoin market could explode at any time, and CAT, as a popular project on the BSC chain, is worth paying attention to.
To discuss the overall market, let's take a look at on-chain data; data does not lie!
Solana (SOL)
Recent performance has been weak, mainly due to the on-chain TVL growth of only 13% this month. The ecological business is primarily based on 'meme coins', and the meme coin season has not yet started, lacking the wealth creation effect. However, investments should consider future potential; once the meme coin season returns, Solana is expected to revive, similar to the situation when ETH was sluggish in the past. Technically, Solana is currently in a rising flag pattern; right-side traders can wait for a breakout above the downtrend line to enter, targeting 320; left-side traders can accumulate on dips.
Ethereum and its related tokens
Recently fully recovering, the on-chain TVL increased by 40% this month, reaching ten times that of Solana, with both price and volume rising. Especially AAVE, whose TVL has reached a historical high of 39 billion USD, far exceeding the previous bull market’s 32 billion, but the token price is only over 300, clearly undervalued. AAVE has less selling pressure, with 95% unlocked, possessing long-term value, while the short-term surge is significant, so one may wait for a pullback to enter. Additionally, DeFi tracks like AAVE and UNI are quality essential assets, still undervalued by the market. The Trump family project WLFI also holds AAVE and has increased holdings in ETH and ENA.
SUI
Although it has risen over 50% recently, the on-chain TVL has only increased by 26%, which is comparable to the market average. Its market cap is nearing half of Solana’s, with significant overvaluation risks; chasing highs is unwise. In comparison, quality coins at the bottom like Pepe have greater potential. Meanwhile, Puffer, which escaped at previous highs, has pulled back by 40%, and the current price is stable, making it worth considering for re-entry on dips.
Dogecoin (DOGE)
Long-term sideways consolidation, with no one paying attention to the market; however, on January 20th, Musk will take office as 'Doge Minister', and expectations may lead to an explosion as the date approaches. Currently, DOGE has made a profit after a pullback, and short-term opportunities are evident. Additionally, ETH previously entered at precisely 3850 points, continuously capturing market fluctuations.
Currently, comparing Bitcoin and Ethereum, I would choose Ethereum and its related tokens, as they have certain advantages in terms of price and market sentiment. Why do I say this? Let's take a look together:
Positive news one: ETF upgrade
Ethereum ETF is about to upgrade to a stakable ETF and support physical creation. This news comes from the ETF issuer Vanguard. Considering the movements of giants like Vanguard and BlackRock, they are likely to submit ETF modification applications after the new SEC chair takes office. At that time, a 20% rise in Ethereum is expected, similar to XRP's explosive performance due to ETF speculation.
Positive news two: Prague upgrade
The Prague upgrade in March 2024 is a certain event. From historical performance, each upgrade has doubled the price of ETH. Instead of betting on uncertain trends, it is better to seize such stable opportunities.
Technical aspects and expected targets
Ethereum has broken through the previous high of 4100 and is expected to start a new round of upward momentum. The short-term target is at least looking towards the historical high of 5000, and after the Prague upgrade in March, ETH is expected to surge to 8000. At that time, small coins in the Ethereum ecosystem will also experience increases of 3 to 10 times, making it an opportunity worth seizing!
Today's article ends here. Currently, we are in a bull market with dynamic changes; we share codes daily. If you're unsure how to navigate the bull market, feel free to follow us for spot market codes and layout strategies, which can be shared free of charge.
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