1. Traditional Old Coins (XRP, ADA, HBAR, etc.)
These older coins have been in the market for some time, but they are still seen as 'quality assets' by conservative investors. The high market capitalization and widespread attention of XRP and ADA continue to attract risk-averse investors. In addition, many investors also chase their cyclical fluctuations. However, new players have relatively little interest in these coins unless some breakthrough news arises.
At this stage, old coins are no longer the focus of the market, and most new investors seem to prefer those 'emerging sectors,' such as DeFi and AI coins.
2. DeFi (such as UNI, CRV, DYDX, etc.)
• DeFi is one of the most obvious trends in the current bull market. Early DeFi tokens, such as UNI (Uniswap) and CRV (Curve), were mainstream currencies frequently seen by investors. However, as the market changes, the popularity of older DeFi coins gradually decreases, and their upward momentum on exchanges has entered a bottleneck period, especially for new investors.
• For many, these coins seem to have become 'old.' Worse still, their structures have matured, and unless similar ecological changes and industry upgrades occur, relying solely on 'rotation' to attract a new round of funds is evidently quite difficult.
• However, the DeFi portion of the market remains vast, being an important component of decentralized finance that attracts a significant inflow of funds. But this requires certain market confidence and macroeconomic conditions.
3. AI Field: WLD, IO, FET, RENDER, etc.
The AI field you mentioned is undoubtedly a major hotspot in the crypto world right now. Especially some AI tokens that have been listed on exchanges, like WLD, IO, FET, etc. Although the market attention is relatively low, the technology and application scenarios they represent have great potential for the future.
• The 'perception of value' in this area is relatively weak, especially since these tokens did not initially receive strong endorsements like those behind applications such as ChatGPT and OpenAI.
• However, with the continuous advancement of AI, there will still be significant volatility and growth potential in their markets. Especially for those AI projects that have already matured, they could become the new focal point of the entire crypto market at any moment.
4. L2, Modular Chains, and Game Tokens
• These relatively niche sectors currently seem to lack sufficient attention in this round of the market. For example, L2 solutions, this field currently has several relatively mature technical solutions, such as Arbitrum and Optimism, which utilize Ethereum Layer 2 (L2) to address high transaction fees and throughput issues. These are extremely promising innovations.
• However, in the early stages of this bull market, most investors may overlook this, as L2 technology itself is relatively more 'dull' compared to concepts like AI, DeFi, and NFTs, leading to a lack of enthusiasm among retail investors.
• Additionally, while game tokens are an important area for long-term development in the future, they may currently lack strong explosive factors in the short term, and retail investors' interest in investing in them is not high.
Your questions, 'Rotating to DeFi?' and 'When will the retail investors return?' are very realistic. We can speculate that this current stage is akin to the classic bull market strategy— the 'old coin' phase has passed, and the next is the sustained popularity of emerging sectors like DeFi and AI. For new investors entering the market, this stage remains an important moment to expand market size.
• The rotation of the DeFi sector, from historical experience, is always accompanied by further maturation of the market. When the prices of 'mainstream' sectors rise, older coins face market fatigue, while fresh coins in fields like AI and DeFi may become the next breakout point.
• The call for the AI sector is high: this is also a point that aligns with trends; it is indeed one of the areas currently favored by all investors. A lot of retail investors' money has indeed flowed into AI tokens, including WLD, FET, Render, etc. Therefore, AI is likely to further ignite market trends in the future.
• L2, modular chains, and game tokens are fields that, while not currently receiving much attention, will have their values reassessed as the bull market gradually moves into a deeper phase. More retail investors and investment institutions will also include them in their investment perspectives.
This also aligns with a major characteristic of bull markets: everyone's energy is limited, making it difficult to seize opportunities in every sector. People often have too much confidence in the projects they hold, leading to missed investment opportunities in other sectors.
This phenomenon is quite common: many investors choose to stick with their favorite coins and rely on the price increase of these coins. But bull markets are inherently accompanied by high risks and high returns, and retail investors often miss out on early good opportunities, eager to chase the last wave of surging prices.
