Recently, new coins have dropped quite severely, reminding me of the golden pit during the DeFi era. Back then, in September and October 2020, the market was hit hard, especially the DeFi projects represented by UNI, which were directly criticized harshly.

However, the first wave of the bull market ultimately started from the DeFi sector. Trends are worth believing in.

As long as there are continuous hotspots on the chain that bring wealth effects, large funds in the secondary market will pull benchmark projects. Once secondary funds lead the trend, more hot money will flow into the chain to chase the next wealth effect. This relationship is a mutually reinforcing cycle.

I still remember when UNI, SUSHI, and YFI plummeted, new DeFi projects continued to emerge on the chain. The current situation is similar; regardless of how the new meme coins in the exchanges fall, the on-chain activities are still thriving.

Next, which track will the funds choose to pull out the trend first? The answer is actually quite obvious.

Only after the first wave of the trend is completed will it be time for other narratives to take the stage. Just like the previous round of NFT, metaverse, and GameFi Ponzi projects, they all started performing only after DeFi had finished its run.