Many people often ask me how this coin is, how that coin is, whether it can be bought, and how much it can rise.
Today, I will write an article to systematically answer this question.
Here, we only discuss coins that can be held for 3-5 years.
Without discussing trading coins that are held for the short term based on hot narratives.
First of all, I think it's too difficult to make money through trading. I believe most people don't need to take this path.
Moreover, the path of trading is not something you can learn just by reading a few articles and taking a few courses; it requires a lot of real-world experience with losses.
Having seen money, lost money, and refined my mindset and emotions to cultivate character is the only way. I won’t elaborate on trading here.
For a coin to rise and be recognized by the market, its demand must surely exceed supply. Aside from emotional speculation, if a coin can attract a large amount of capital voting, then that money must be smart. If money goes there, it indicates that this coin is recognized by the market.
For a coin to truly rise long-term, there are several conditions.
First, this token must have a limited total supply, preferably deflationary.
Second, this token must have a large number of use cases.
Third, the project of this token must be sustainable and maintain its first-mover advantage.
Such a coin has no reason not to rise.
For example, BTC, ETH, and BNB all meet these three conditions. XRP, SOL, and HYPE meet two of the conditions, so these coins can rise so high.
Among these coins, the use cases of BNB are gradually shrinking, because centralized DEXs will gradually be replaced by decentralized projects in the next 5-10 years, and the ecosystem on the BSC chain will also be replaced by more decentralized projects. The use cases of BNB are also gradually weakening, and the returns from launching new projects are gradually decreasing. This compensation mechanism relying on exchanges giving away money will not be sustainable forever.
Therefore, it is possible to earn money from cyclical emotions on BNB, but for long-term development, it depends on the sustainability of the projects and ecosystem behind it.
If it cannot be maintained, the development of BNB will also be hindered. The inevitable result of not being able to grow will lead smart holders to switch to paths that can grow. The same reasoning applies to SOL; after the meme cycle, whether SOL can be widely applied in other fields remains to be seen by the market.
For example, UNI meets condition one but does not meet conditions two and three. If one day, UNI becomes useful, such as being able to participate in dividends, staking, or empowering listings, and has no competitors in the DEX field, then UNI surpassing BNB in market capitalization will be just around the corner. But currently, it does not. Many people buy it, and institutions hold it, precisely because of the expectations of these two behind it.
As for why UNI has not met criteria two and three, it is because it is still too weak now and does not have the strength to directly compete with institutions like the SEC. Its technical advantages have not completely monopolized the DEX space, and numerous capital institutions will undoubtedly come to create DEXs, which will certainly put pressure on UNI. Whether it can maintain its advantages and establish a strong moat is currently uncertain. Thus, its market capitalization has not been particularly strong, and the price of the coin has not exploded, which is the fundamental reason for its continuous stagnation.
Although many people are not optimistic, I am extremely optimistic myself. Mainly because it is focused enough on the matter of DEX.
I often imagine that UNI can eventually soar.
This is certainly not investment advice, just one person's opinion. I simply favor UNI, that's all.
I will mention two coins here, like LINK and AAVE. LINK is parasitic on the rise of DeFi; it deals with data, and you can think of it as a data intermediary company that connects real-world data with on-chain data.
We can imagine that the DeFi field will inevitably have very large prospects, with staking, lending, trading, and everything relying on real information and data feeding.
Although LINK does not have passive deflation, it has a limited total supply; as for use cases, there are too many. Companies providing data must use LINK coins, and projects accepting data must also provide LINK coins. If the data provider's cost is too high, then LINK will be confiscated. It can be said that it satisfies having a large number of use cases and almost monopolizes the oracle market.
LINK also has an advantage, which is that it is fully circulating with no unlocking. This means that the current market capitalization is completely priced at its real value.
DeFi developed in 2020, and it has only been a short five years; LINK's ability to surpass UNI's market capitalization is because it is truly useful and will continue to grow.
AAVE's lending transactions and data usage on the chain will reach a scale of 10 trillion US dollars in the future without any problems.
Now the entire market is only one trillion US dollars.
Based on these conditions, how much can LINK and AAVE rise in a bull market? Personally, I believe it can start from five times.
I have no reason not to hold it. I think people in the crypto circle, especially those playing DeFi, should study these two projects well.
Buy a coin.
The point of usefulness is very important, whether it is useful in the short term or continuously useful.
Usefulness is the most core factor for determining whether a coin's price can rise.
I think even trading coins based on emotional hype, like chain games and meme coins.
In the short term, this coin must have use cases to experience significant price increases.
Only when this certainty exists can its price explode rapidly.
And a useless coin relies solely on emotions and cycles. The weight of luck will significantly increase.
And the only thing we cannot control is luck.
I have finished writing, keep it up! I am Feige from the crypto world, sincerely wishing you to become rich in the crypto space.
