The public chain sector has always been a battleground since the birth of blockchain. As the foundation of blockchain development, a successful public chain will not only gather most of the funds and popularity in the market, but also influence the development trend of the market through its own ecological construction.

After the birth of the Ethereum chain, smart contracts began to prevail, and everyone could issue coins. After the Binance chain became popular, the Pink Platform could sell up to 9,000 projects a day, and the subsequent success of chains such as SOL opened up the Layer2 technology competition, with low fees and high speed becoming the new public chain standards.

Behind the success of these projects are huge profits, which have spawned countless millionaires and billionaires. This is also the motivation for many people to invest in blockchain. With a small investment, they can gain wealth that they cannot earn in several lifetimes.

However, since the collapse of FTX, which caused SOL to plummet, the performance of public chain projects has been unsatisfactory. Although the project development is orderly, new public chain projects such as APT, ARB, CORE, etc. seem to no longer be favored by ordinary investors. The prices continue to fall and cannot find a breakthrough in the market.

Therefore, before we prepare to invest in public chain projects, we need to understand why so many high-quality public chain projects at this stage cannot get out of the current downward trend.

The first and most fundamental reason is that in the current bear market environment, the scale of market funds has shrunk and is insufficient to support so many high-market-value projects.

For example, the ARB offering price is around $1, and the total amount is 10 billion. So the market value is 10 billion US dollars at the beginning of the offering. How much room for growth will there be? (The current market value of BNB is around 30 billion US dollars)

The opening is the peak, and I believe those who were hanging on the top of the mountain when Blur opened must have a deep understanding of this.

The second point is also a common problem of large public chain projects today, that is, early institutions and investors hold too many positions.

Institutional investment is a double-edged sword. You need institutional funds to keep your project running, but once you accept institutional investment, it means that you need to hand over most of the future of your project to the institution. This year's SOL was dragged down by FTX. In order to fill its asset gap, FTX sold a large amount of assets.

The biggest impact on retail investors is that with institutional investment, ordinary people can no longer obtain low-priced chips. After retail investors lose the opportunity to make a small profit with a big investment, they are even less interested in such public chain projects.

It is under these multiple factors that the consensus makers in the secondary market have gradually disappeared. Some have left the cryptocurrency market, while others have gone to the primary market to look for opportunities.

Could it be that retail investors will no longer find the opportunity to get rich by investing in ETH and BNB like they did a few years ago?

There are not many public chain projects in the primary market. We often see news about zero-cost mining on certain public chains, because since projects like CORE have made a group of people rich by taking advantage of airdrops, more and more domestic projects have followed this model. But it is obvious that such projects are not in the category of small investment and high return, and can only be regarded as wool-pulling, which is not suitable for long-term investment.

Secondly, the explosion cycle of public chain projects is longer than that of general projects. Even for a public chain like TX, it was wholly acquired by an institution midway due to funding issues. Although it brought a short-term rise, it is still a long way from getting rich overnight.

Because to reach the level of SOL or even BNB and ETH, it is not something that can be solved by the investment of one or two institutions.

The reason why ETH, BNB, and SOL stood out was that they injected powerful development genes into the blockchain market in terms of technology and ecology, and opened up a broader development space.

We should use our spare funds to study the market, identify the right investments, and hold on to them. We should not pursue opportunities to get rich in a few days, but wait for financial freedom in the near future.