Value pit! Everyone, the coins I want to discuss today have strong fundamentals and are about to explode; smart money is quietly positioning itself!
In the latest on-chain data analysis, which chain among Sol, Sui, and Ethereum is truly undervalued? And which small coins currently have the opportunity for wealth? Let’s follow Shuqin to explore.
First, let’s look at the recent data from major public chains; we will analyze them one by one, as several small coins have significant recovery potential.
First, regarding Sol, its recent weakness does have reasons; its on-chain TVL has not increased much this month, only 13%. This is mainly because Sol's primary business is centered around meme coins, and since the dog coin season hasn’t arrived yet, there hasn’t been a wealth creation effect, so it has remained somewhat stagnant recently.
However, investing is not about looking at current data; this is already a given. We need to look ahead and see what its future potential is.
We are quite certain that this dog coin season will definitely return, so Sol will also rise. It will be just like the previous Ethereum; we were buying when it was ignored. Just think about how weak Ethereum was before; it oscillated around two thousand, and reaching 2700 was considered a peak. But Shuqin was steadfast and led everyone to reach 4000, so the same goes for Sol.
Yesterday, we analyzed that Sol has formed a very typical ascending flag pattern. Right-side traders can wait for it to break through this descending trend line before entering long positions, with hopes of rising to 320. So, left-side traders should accumulate at low points, while risk-averse right-side traders can wait for a K-line breakout confirmation signal.
Meanwhile, Ethereum has recently fully recovered, with its on-chain TVL skyrocketing by 40% in a month, showing a rise in both price and volume, with its TVL being ten times that of Solana.
However, in terms of price increase, I think the on-chain small coins may rise even more sharply. Looking at AAVE, its on-chain TVL has reached a record 39 billion USD, far exceeding the last bull market’s 32 billion, indicating a surge in usage. Yet, its price is only over 300, while in the last bull market, it was close to 700.
Currently, AAVE has stronger data and more users, yet its price is only half of what it was in the last bull market. This is definitely undervalued, and those retail investors who do not understand on-chain data will absolutely not know this; that is the information gap.
However, from a short-term perspective, it has indeed risen a bit much in the last two weeks. We can see if there’s a pullback before getting back in, which would be more stable. Shuqin had already led everyone to enter when it was around 200, and prior to that, we bottomed out at over 70. I’m still holding onto it, aiming for the Prague upgrade next year.
The DeFi sector is also definitely undervalued by the market. Just look at AAVE or Uni; these projects are necessities and are truly quality assets. Even Trump’s family project WLFI holds AAVE, and they have recently increased their positions in Ethereum and ENA.
However, the ENA coin still has 80% of its supply locked, while AAVE has 95% of its coins already unlocked with no selling pressure, so the difference is obvious.
Returning to the data from various chains, Sui has indeed risen dramatically recently, up over 50%, but its on-chain data TVL only increased by 26%, which is about the market average.
Its total market value has already reached 40 to 50 billion USD, while Solana is just over 100 billion. Therefore, Sui is approaching half of Sol's total market value. Whether it is overvalued is for everyone to judge; it is not wise to chase high prices now, as there are many quality coins like Pepe still at the bottom, which can be bought.
On the other hand, I think we can also buy back the Puffer we previously escaped from at a high point when the price dips. We entered this coin at 0.5 and exited at 0.8 and 0.9, after which it retraced by 40%. Small coins are like this; they rise and fall boldly. Now that it has retraced and solidified its price, I think we can start again.
Additionally, I see that Dogecoin is also consolidating. Over the past month, Bitcoin and Ethereum have surged, but Dogecoin has been flat for over a month, practically ignored. Since Elon Musk is set to take over as Doge Minister on January 20, there’s no reason for the market not to speculate on it.
However, there’s still more than a month before the old horse takes office, so it's normal for the price not to react much. Generally, the market tends to gain momentum in the one or two weeks leading up to positive news. Moreover, dog coins usually do not rise frequently, but when they do, it’s significant; that’s their characteristic.
Last week, when Doge plummeted, Shuqin already led everyone to buy the dip once. Currently, there’s a decent profit, and we entered Ethereum at the bottom of 3850 with an accurate entry point. Whenever there’s an opportunity, I’ll lead everyone to make bold moves; if you’re interested, come take a look.
Alright, let’s continue. I currently hold a significant amount of Ethereum and its ecosystem coins, because compared to other coins with unclear positive news, Ethereum has several definite positive catalysts for next year, which will undoubtedly surge.
The first thing is that Ethereum's ETF will upgrade to a stakable ETF, and it will also support the creation of physical assets.
This is not just my opinion; it’s from the ETF issuer VanEck itself. It is likely that VanEck or BlackRock will submit their ETF amendment applications after the new SEC chairman takes office, and at that time, a surge of 20% will be easy. After all, everyone saw how XRP skyrocketed before, largely due to ETF speculation.
If you think this positive news is still not clear, then Ethereum's Prague upgrade in March is definitely a certain event, and its price increase is relatively easy to predict; basically, every upgrade tends to double its price.
So rather than gambling on probabilities, I prefer stability. If you feel that holding Ethereum itself doesn’t yield high enough returns, you can choose to leverage it two times or position yourself in its ecosystem small coins. Hey, doesn’t that immediately increase the yield?
From my perspective, the current market situation can be described as ready to explode. From the K-line analysis, Ethereum has already broken through the previous high of 4100, and it is very likely to initiate a new wave of upward momentum, at least reaching the historical high of around 5000 before facing resistance again.
Then, after the Prague upgrade in March, it will rise to 8000, and at that time, various ecosystem small coins will see increases of 3 to 10 times. I think this is an opportunity; what do you think?
Alright, that's it for today's program. Everyone, please follow along, and let’s achieve financial freedom together in this bull market. Bye~
