The market as a whole entered a correction period over the weekend. Bitcoin fell from last week's high of 73777 to Sunday's low of 64533. The drop was close to $10,000. Of course, most of the drop was completed last Friday. The reason for the drop I also explained in last week’s article that there are two main points. First, ETF capital inflows have slumped. The net inflows for two consecutive days last Thursday and Friday were less than 200 million, even before BlackRock released the data. , the market was once panicked and funds began to flee. The second point is that the U.S. Democratic Party put pressure on the SEC, asking the SEC not to approve other crypto ETFs, and then denied the significance of Bitcoin ETFs. This still caused a certain amount of negative sentiment for traditional institutions. .

Of course, from a market perspective, it is now time for a correction. After all, it has been breaking new highs for three or four days in a row, and the market profit margin needs to be released. You can observe the people who are four weeks old. Basically, how many people have Bitcoin? I bought it years ago and very few people have entered the market recently. However, after this wave of correction, everyone’s subconscious will feel that the risk has been lifted, so the motivation to buy next will be much stronger. Otherwise, there will never be a correction, and retail investors will never buy. A market that keeps rising is unhealthy, so we must not panic when facing a correction of this degree. It is just preparing for a better rise in the future.

The trend of the copycat market basically follows the broader market. The exchange rate of ETH to BTC continues to fall, and is currently only around 0.052. This means that the Cancun upgrade has completely failed. Other L2 projects have also adjusted back neatly, especially arb and Tianliang. Selling pressure was unlocked, so the fall was even worse. Of course, there are also strong sectors. First of all, it must be sol and its ecology. Bome was born on Friday, and then it was listed on Binance in 3 days and exceeded 1 billion. This wave amplified the sol chain’s money-making effect to the extreme. sol’s hot searches on Google and fdv All have reached record highs, various infrastructure ecological projects, Ray Jup Python, have surged by more than 50%, and various currency projects have begun to gain popularity in Sol. For example, dego announced that it will be launched on Solana and then soared by 30%. Previously, this project was due to the popularity of Solana. Inscription launchpad has also skyrocketed, which shows how huge the traffic of Solana is now.

Then came memes. Now various old projects have been resurrected, and new memes have begun to be posted on sol. The financing method directly imitates bome, that is, direct money transfer. Such imitation disk projects have a profit-making effect at the beginning, and nap has been pulling in all the way since its opening. 20 times, nos 10 times, and there are some like sorry bume bope bomo bibi iq50 usug sam john etc. The trends are similar. They pull first and then cut, and the subsequent rise is weak. Now they have fallen back to the opening price or even broke to zero, and then they returned. Some are directly rugs. For example, the 100,000 AVAV received by 4msener on avax is still a tornado. Of course, slerf is also considered a rug. Although this coin will complete the 100 times target today and the market value will exceed 500 million, the people who donated are indeed It has been cut off. There are still several projects with large donations that have not yet been listed. For example, smole has raised 169,000 SOL, VT_BNB has raised 30,000 BNB, shad has raised 2.860,000 SOL, and emo has raised 2.60,000 SOL. sol, temple has raised 8825 sol. I personally think that if you play this type of project, just go in and out quickly. Don’t take it for a long time or bring in big funds. This kind of thing is equivalent to buying a lottery ticket. If you are lucky, you can buy bome slerf and it will cost you dozens. Times, if you are unlucky and buy a junk imitation disk, you have to admit that you are out of the game. Don't imagine that any of these imitation disks will counterattack.

Market analysis

BTC: After last week’s adjustment, Bitcoin’s short-term trend has begun to rise again, and it will continue to rise before the halving. Next, everyone should keep an eye on the 4-hour level of 65,000. If it returns to this position again, then Bitcoin will There is a high probability that the currency will adjust downward, and the lower position will be around 60,000. In the short term, the market has stopped falling, which is a very good thing for copycats. Next, we can focus on the AI ​​sector. The NVIDIA conference event will continue to stimulate the AI ​​sector to rise. In addition, we must pay attention to the Bitcoin ecology. The currency ecosystem rune stones have skyrocketed to see if they can reactivate the Bitcoin ecosystem.

ETH: ETH is now facing a strong blow from SOL in the public chain field. The defi, nft, meme, innovation, financing, innovation, etc. that it was proud of in the past have all been beaten by Sol in all aspects. The exchange rate against BTC has also been falling. The Cancun upgrade has become an industry joke. Now the market is spreading new jokes, saying that ETH is CPU, SOL is GPU, and TIA is memory. Of course, ETH still has the most powerful developer community, TVL and infrastructure, even if the growth rate cannot keep up. It's easy to outperform the market with stocks like sol and tia.

The benefits of the Cancun upgrade do not seem to be judged in the short term. The introduction of Blob space, a new data structure, breaks the bottleneck of Layer 2 relying on calldata to store data in the past. Blob is designed as temporary partial node storage, rather than requiring full node permanent storage like calldata. This change greatly increases the upper limit of data submitted by Layer 2 to the Ethereum main network each time, thereby expanding Layer 2’s throughput (TPS). However, this also means that the completion of the Cancun upgrade will break the competitive position of ETH L2 such as Arbitrum and Optimism, and the technical and ecological confrontation between OP and ZK will become more intense.

More importantly, the entry of third-party DA layers such as Celestia has also seriously impacted the value position of L2s such as Arbitrum. The modular trend means:

1. Developers build applications by combining different modules (more flexible)

2. Modularity allows developers to reuse existing modules to build new applications or services (without building infrastructure from scratch)

3. Split the system into multiple smaller, single-function modules for testing (higher security).

The trend of modularization may cause the traditional L2 to be more seriously impacted, but Celestia's value will also be affected by the competition from the upgraded L2 in Cancun.

For investors, we try our best to earn more dividends and resources in public chain competition, including but not limited to:

1. Participation in DA layer staking service

Celestia-$TIA

Dymension-$DYM

Avail-Testnet participation and DYM staking

EigenDA - Ethereum Staking

2. Cross-chain protocols will become more important with the emergence of more public chains, especially the fragmented liquidity problem after the Cancun upgrade.

Neutron——$NTRN

LAYERZERO——$ZRO

Shoulders——$AXL

Stargate Finance——$STG

3. The craze of parallel EVM

Berachain——$BERA、$BGT

Six——$SIX

Monad - testnet interaction

Neon - testnet interaction

Eclipse - testnet interaction

The next three major sector currencies that can be heavily invested in the currency circle are:

Fan coins:

santos: Santos fan token EBP—20 functional tokens.

lazio: Lazio fan token EBP—20 functional tokens.

chz: The first choice for big funds in the fan currency market.

European Cup ➕ America's Cup in June, fan tokens have been ready to move in recent months. The outbreak period is about April to May. Fan tokens have not been raised for three years, and they have been raised five times or ten times.

Ai sector:

Leading FET, AGIX

Coin Circle NVIDIA Rndr

Wld and Arkm of openai founder concept

Really do video AI business LPT

The AI ​​sector is the primary sector this year. Any good news inside or outside the industry is for the advancement of the AI ​​industry, and the AI ​​sector will run through the entire bull market.

Chain gaming sector:

AXS’s son Ron Pixel

DWF market making ➕AI➕Chain games GALA, YGG

ARB’s biological son Xai

Finally, there are still many things that have not been written in, such as specific opportunities and specific decisions. These things often cannot be summarized in one article.

Create a high-quality circle, mainly to explain various basic industry knowledge in the currency circle, and recommend coins with market potential and altcoins! The rotation of hot spots, the basic methods of identifying tops and bottoms, how to better grasp this bull market, and a series of other knowledge, if you are interested, you can contact me.