According to BlockBeats news on August 10, trader Eugene Ng Ah Sio posted on his personal channel, stating that the so-called 'leveraged ETH Beta' concept will always attract speculators as long as the underlying asset is trending. At different times, the market will prefer different names (assets). But all of these names have the same flaw—they do not perform ideally when acting as 'Beta.'
The definition of Beta means that as long as the price of the underlying asset fluctuates, the volatility of the Beta asset should be greater than that of the underlying (correlation > 1). For all other altcoins, this means that funds need to flow from ETH to that altcoin. In the past, when optional assets were limited, this logic was effective. But in the current market, faced with numerous projects trying to become the 'preferred ETH Beta,' people can easily feel confused.
However, there is one type of asset that remains relatively low-key, and that is NFTs. Their uniqueness lies in the fact that prices are denominated in ETH, so the market does not need to sell ETH to acquire this asset. Even without any speculation on a specific NFT, you can do nothing and directly enjoy the appreciation of ETH.
I suspect this situation will change soon—when ETH approaches its historical high, the market will realize that it is easier to speculate on NFTs rather than chase a specific ETH Beta altcoin. This happened in 2021, and I see no reason why it wouldn't return.
In my opinion, there are only two series worth speculating on right now: CryptoPunks and Pudgy Penguins. I have never been a successful NFT trader, so whether my guess this time will come true or remain just a guess is quite worth looking forward to.
