Where are the real opportunities in the second half of the year?
The altcoin sector is showing divergence, with the surging MEME sector already showing signs of distribution. Other altcoins in the ETH ecosystem have also fallen back significantly from their highs. Personally, I tend to believe that after a correction, the altcoin market will still have potential, but there may be sector rotations. 1- Expectations for Fed Rate Cuts
If U.S. stocks experience volatility or economic data weakens in the second half of the year, the market may reignite expectations for rate cuts. History shows that easing cycles often drive capital inflows into the crypto market, benefiting mainstream coins like Bitcoin from a reversal in liquidity expectations. The current correction is creating space for potential market movements, and we need to closely monitor signals of policy shifts.
2- Dual Focus on AI and Meme
In the AI sector, projects with on-chain data applications and DeFi strategy optimization scenarios are more resilient; Meme coins should focus on targets with strong community dissemination and social virality attributes. The market has entered a phase of "eliminating the false and keeping the true," and pure conceptual projects will be eliminated. Focusing on assets with substantial progress or strong consensus is key.
3- Opportunities in the Ethereum Ecosystem
Ethereum has shown strong resilience amid fluctuations. If positive developments such as the Cancun upgrade materialize, enhanced on-chain efficiency will activate the Layer 2 ecosystem, driving a recovery in the DeFi and NFT sectors. Blue-chip projects within its ecosystem (such as UNI, AAVE) may become new targets for capital, shifting the market sentiment from a "leading role dancing alone" to "ecosystem resonance." In the second half of the year, market differentiation will intensify, and we should abandon the fantasy of widespread increases. Focus on policy-sensitive mainstream coins, clearly narrative-driven AI/Meme targets, and core assets in the Ethereum ecosystem, strategically investing in projects with real value amid fluctuations.
