In the current bull market cycle, the market shows the natural characteristics of ample funds and high emotions. The unique policy environment in the United States, with its relatively loose stance, provides fertile ground for the development of the crypto market. Coupled with the support of opinion leaders like Elon Musk, meme coins quickly became the focal point of social media and market attention, embodying the perfect combination of "timing, location, and harmony".
However, behind the wave of meme coins lies an undeniable truth: assets lacking value support are hard to sustain in the long run. Although meme coins are currently in high demand, the market will ultimately return to rationality, and capital will flow back to assets with deeper narratives and broader imaginative spaces. Tokens represented by ETH, known as "VC coins" (i.e., tokens with actual applications and investment logic), remain the preferred choice for long-term investors. Especially after the meme frenzy recedes, projects that can provide ecological value and have solid infrastructures will regain market favor. Here are some directions worth paying attention to:
- Layer 2 Scaling Solutions
- DeFi Infrastructure
- Core tokens for Web3 applications
The ultimate goal of capital rotation is to pursue more attractive "bubble narratives". The short-term brilliance of meme coins may bring temporary excitement, but the ecological value of "VC coins" is the backbone of the future bull market.
In this round of bull market, the rotation of asset sectors reveals the complex interplay between market sentiment, capital flow, and narrative construction. From the initial explosion brought by Bitcoin ETFs to the nationwide frenzy of meme coins, the market's attention has always been attracted by speculative assets. However, from a long-term perspective, only those tokens with actual value support and profound narrative space will be the ultimate destination for capital.
For investors, grasping market rhythm is indeed important, but it is even more crucial to lay out truly high-quality assets with long-term potential. This not only requires sharp market insights but also a deep understanding and judgment of the project's value and future prospects.
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