Today the market has entered an adjustment phase, with Bitcoin fluctuating around $91,500 and Ethereum around $3,150.
From the perspective of U.S. investors' sentiment, their FOMO feelings have begun to wane.
The market has already detached from the influence of the elections. Even with favorable news from MicroStrategy, Bitcoin's upward momentum did not last long, indicating that there may be a need for a market correction in the short term.
However, from a medium to long-term trend perspective, there will still be an upward trend before Trump takes office on January 20.
In the Bitcoin ecosystem, FB saw a significant increase yesterday mainly because it launched on Binance's mining pool.
In the MEME coin track, PNUT and ACT have also started to show corrections.
The market's fear and greed index has now reached 83. Historically, such a high greed index is usually accompanied by market adjustments.
In the primary market, uro, rif, and ban saw significant increases yesterday.
The recent rise of ban is due to the launch of contract trading on Binance.
The rise of rif and uro is because they are the leading projects in the DeSci track.
DeSci is a biotechnology project invested by Binance, with logic similar to a16z's investment in AI meme projects like goat and act. It is not ruled out that Binance might launch projects in this track.
What are the main lines in the current MEME coin market?
In this bull market, I have noticed some obvious trends and a core logic.
The core logic is that the production method of tokens in the cryptocurrency circle is changing, and this change has brought new wealth effects, especially in on-chain Meme assets.
This phenomenon is similar to the DeFi boom of the last bull market.
Currently, the MEME market has four main lines:
The first line is the political line: This line mainly revolves around Musk and his Dogecoin, as well as the Meme track that overflows from Doge to exchanges. Representative projects include PNUT, DOGE, etc.
The second line is the economic line: The lifeblood of the U.S. stock market lies in the development of AI technologies, which corresponds to the AI + MEME track in the cryptocurrency circle. Representative projects include ACT, GOAT, etc.
The third line is the Binance line: The DeSci track that has been very popular these days is something CZ is very optimistic about, and Binance is leading the investment. So when looking at the DeSci narrative, just hold on tightly to Binance and CZ's support.
The fourth line is the MEME coin infrastructure: Solana and some public chains that ride on MEME hype constitute this line. Representative projects include SOL, SUI, etc.
This is also the reason why SOL has performed so strongly recently.
Currently, the status of SOL in the meme coin market is similar to that of ETH in DeFi in the last round, which deserves close attention.
Given the current trend, the market direction in this bull market has changed somewhat.
The so-called altcoin season may be different from what we previously imagined. Perhaps we should change our thinking to increase our chances of winning.
In previous bull markets, there were hundredfold opportunities on Binance, but this time there are none.
The 'price discovery phase' of crypto assets has already shifted to on-chain. Early value assessment and screening have already been completed on-chain.
When facing new things with wealth effects, we should embrace them first rather than question them; this is the most important principle in the cryptocurrency circle.
Because the essence of the cryptocurrency circle is to issue new assets. As long as it is 'new', it will definitely be different from your previous understanding. The market is never wrong; the mistake lies with those who do not understand the trend.
For example, Binance has been launching some valuable coins, but these projects have fallen after launching on Binance, even without any buying interest. This not only failed to attract new users but also received criticism from the market.
Later, Binance began to change its strategy and started to launch MEME coin projects. Regardless of whether these projects have communities, their market values quickly reached 500 million or 1 billion.
In this bull market, 500 million has already become a small threshold for memes, as it seems any project can reach that.
If it is a leading track with high global attention, it generally starts at 1 billion; everyone dares to invest and is willing to jump in.
And the current on-chain memes cannot be compared with last year's inscriptions; the market conditions are completely different.
Macroeconomically, last year was during monetary tightening, while now we are in the early stages of monetary easing.
Last year, there were fewer than three inscription projects with a market value of over 100 million, while now there are more than five projects in the AI meme track that exceed 100 million.
In terms of consensus, inscriptions are mainly in the Chinese community, while on-chain memes are basically participated in by a global community, so we should cherish the best time on-chain.
If capital in the entire cryptocurrency circle forms a synergy, this bull market may give birth to many new projects worth 5-10 billion.
Future wealth opportunities may concentrate on BTC, SOL, Solana meme, and projects related to Musk and Trump.
