At first, new technologies and stories were like treasures hidden in the corners, as nobody understood them, so they contained enormous profit opportunities. But once this secret becomes known, the opportunity disappears, leading everyone to focus on the new while the old is left behind; the blockchain industry is no exception.
Those who first tasted success are like miners who struck gold, attracting more people to join in the hunt. Everyone fears missing out on a great opportunity to make money, and this fear of missing out has intensified the trend of profit-making. Major exchanges like Binance, OKEx, and others are eager to list new tokens, while venture capital firms are closely following suit, with massive funds flooding into new projects. Suddenly, new projects are popping up like mushrooms after rain.
In this wave of trends, Ethereum became a market star due to its hard strength and wide range of application scenarios. Everyone rushed to lock ETH in various applications, creating a virtuous cycle that made ETH look like the one with the greatest potential for appreciation. However, all this prosperity needs to be supported by the larger environment. Now that the market environment has changed, we need to reassess blockchain.
Which blockchain is the hottest? Which one is making people envious of profits? Which one has new opportunities? These are the issues we need to pay attention to.
In fact, as the market continues to evolve, Ethereum's competitors are becoming increasingly numerous. Some emerging blockchain projects have won over users with their unique skills and innovative application models. These projects not only attract a large number of projects and venture capital but also drive up the demand for native tokens. If Ethereum is no longer the market leader, it’s no surprise that its price isn’t rising.
Of course, Ethereum's strength cannot be underestimated, but the issue is that its technological updates and market cycles are somewhat misaligned. There seems to be a disconnect between infrastructure development, application implementation, and profit generation. Although Layer 2 scaling solutions have alleviated some congestion on the mainnet, they haven't brought about the prosperity that everyone expected. While the cost of launching chains has decreased, large-scale applications are still a long way off.
The NFT boom in 2021 brought temporary benefits to Ethereum, but this was more a result of market speculation than the efforts of developers. A good story can indeed give technology more imaginative space, but when the story is over-told, it’s like blowing bubbles, and they will eventually burst. However, new stories will continue to emerge, pushing the market forward.
For Ethereum ETFs, the problem it faces is that some retail investors do not understand it. The concept of Bitcoin as digital gold is well-known, but why does ETH rise in price? Where does its importance lie? These questions are not easy to answer. This leads some traditional investors to be cautious about ETH, thinking its price is too high. Ethereum's price may need to adjust, or a new method to evaluate its value may need to be found.
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