In the capital market, when everyone is sure of something, there will often be a reversal. After all, it is impossible for 100% of people to make money.
For example, the Federal Reserve started a cycle of interest rate cuts. According to common sense in economics, everyone believed that U.S. Treasury bonds would rise. After the influx of funds, there was a continuous sell-off of U.S. Treasury bonds, resulting in heavy financial losses. No one dared to question ETH as the "king of ecology", and no one expected that it would continue to fall against BTC and SOL for half a year, with almost no rebound.
As the mainstay of the crypto industry, BTC was embraced by institutions and big investors after the ETF was approved, and it entered a firm bull market. However, small funds were deposited in the meme casino of the SOL ecosystem and have not subsided for half a year. The market value of many memes is over 1 billion US dollars, leaving those "value coins" in disarray.
Ethereum is currently facing a major panic: the staking income is only about 4%. If the ecosystem fails to develop significantly and lead ETH to rise, the staked ETH will panic. After all, a 4% income faces a 50% risk of decline. If nodes unstake one after another, it will fall into a negative spiral of "worrying about a decline, thus unstaking and selling, which further leads to a decline", which will shake the security and decentralization of the Ethereum network, both of which are the foundation of Ethereum.
Whether it is being accused of big company disease and being out of touch with reality, or the ecosystem has been slow to prosper and generate sufficient demand for ETH, these are all lingering over Ethereum. Objectively speaking, in terms of security and decentralization, Ethereum is definitely better than SOL. Why do funds embrace SOL? To be precise, it is speculative funds that embrace SOL. Institutional funds and big players are still more in Ethereum.
Due to its low degree of decentralization, SOL is very fast to use and has extremely low fees, making it an "on-chain casino" for funds. Since it is a casino, funds are more concerned about experience and cost, and the security level of SOL is sufficient for them.
The US election is now the focus of global attention, and the market has higher expectations for Trump's election. The core of Trump's policies is to significantly cut interest rates, reduce taxes, and launch trade wars, which will undoubtedly make US inflation more stubborn. Therefore, funds choose gold, Bitcoin, and top US stocks to hedge against inflation. The decline in US bonds is because holding US bonds is not cost-effective under continued inflation.
BTC has become an important asset in the capital market, and its current market share has exceeded 59%. It can be said that BTC has partially escaped from the category of cryptocurrency assets and has become a financial asset, while Ethereum can only hope for a rejuvenated ecosystem. SOL is not as secure and decentralized as Ethereum, and the meme coin hype cannot continue forever. When a substantial ecosystem emerges, the meme coin hype will most likely end.
As encryption technology becomes more and more mature, more and more projects have the opportunity to overtake others by relying on the "unexpected" rise of the ecosystem. The throne of "digital gold" will always belong to BTC, but whether the throne of "king of ecology" will always belong to Ethereum has begun to be questioned.
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