The wild joy will eventually lead to a wild ending #加密市场回调
1. Otherside Minting: The Crazy Overflow of ETH and DeFi Value
On April 30, 2022, the Otherside metaverse project sparked an NFT minting frenzy, causing the Ethereum network to become extremely congested, with single transaction gas fees reaching as high as 5 ETH (approximately $14,000), and the total accumulated gas fees soaring to an astonishing $180 million. This scene vividly illustrated the frenzy of the NFT market and further highlighted the enormous overflow of ETH and DeFi ecosystem value, with funds rushing into hot assets, creating unbelievable records.
2. MEME Era: The Crazy Rise of Attention Economy
If the gas fee frenzy from Otherside minting is the ultimate manifestation of ETH ecosystem value overflow, then the pump.fun on the Solana chain in the past two years is the pinnacle work of MEME coins and the attention economy.
As @thecryptoskanda sharply commented: '@pumpdotfun is not a launchpad, nor is it part of the Sol ecosystem; it is a new paradigm of mass media. Just like a young player from a small town in China last night, who, relying only on CA address and K-line, could keenly capture the latest hotspots of the U.S. President and Musk; in contrast, traditional mainstream media is sluggish and unaware.
pump.fun
Its rise perfectly illustrates the power of the MEME economy: a large influx of funds and users greatly increased the network activity and attention of the SOL chain, building a massive attention economy stronghold and thoroughly showcasing the value overflow of the SOL ecosystem.
3. Liquidity Siphon Effect: Trump Token Launch and pump.fun Token Launch Plan
When Trump launches the token (TRUMP), market liquidity is instantly drained, severely impacting the performance of other MEME coins, resulting in a significant market correction. Now, the news of the pump.fun token launch is stirring the market again, which will create a huge liquidity siphon effect once more.
This effect means that in the short term, funds may quickly rush into pump.fun (some predict the presale won't even fill up), further amplifying the attention economy effect on the Solana chain, while also quickly draining the liquidity and attention of other SOL ecosystem projects. After Trump and Musk's argument last night, will pump.fun still choose to launch the token at this moment?
4. SOL's upcoming 'HOLY SHIT' moment: Decline of MEME and Attention Dissipation
Historical experience repeatedly shows that once the attention economy reaches its peak, it must accompany rapid collapse and dissipation. The huge risk faced by the SOL ecosystem is that the crazy party of MEME coins is about to end. With the launch of the pump.fun token, I predict that the MEME economy will decline, market attention will significantly dissipate, and SOL will inevitably enter its 'HOLY SHIT' moment.
5. Return to Value Investing: DeFi and Yield Tokens Regain Favor
After experiencing the madness of the attention economy, the market will inevitably return to rationality, re-examining the significance and importance of value investing. DeFi tokens that truly possess earnings and real applications will once again become mainstream in the market.
The market cycle has never changed; after the wild joy, there must be a wild ending. However, SOL's 'HOLY SHIT' moment is not entirely a crisis, but rather a historical opportunity for market reshuffling and value reconstruction.
