The trend of Bitcoin is very, very ugly right now. The decline in price coincides with the downward trend in the overall financial market. Here I mean the decline in the price of the S&P 500 Index, the Nasdaq Composite Index, gold and so on.
Thinking of this, some people always say that the current currency circle is very dull and quiet, and they have no idea what to do. For traditional retail investors, they don’t even know what to buy in the cryptocurrency market.
Fortunately, you clicked in. If you miss this article, you will basically miss the next bull market, because I will share 2 hot spots that we can still pay attention to in the bear market of the currency circle, and have the potential to double our wealth many times!
bear market problem
As the saying goes, where there is danger, there is opportunity. To find a currency with potential for explosive growth, you must first understand the market conditions. In a bear market, anything can happen. We already have enough problems in our own currency circle. On the other side, the Federal Reserve insists on coming out and stepping on us more.
He directly released hawkish news last week, saying that the current inflation data has shown a downward trend, but he still said that he did not see a long-term continued decline. What does that mean? To put it simply, it implies that interest rates may continue to rise, causing many people who originally wanted to enter the market to suddenly switch to a wait-and-see attitude. Wow, this is really a headache. Do you think this will cause the market to fall again in the next wave? Next let’s take a look at the data.
Decentrader, a cryptocurrency market data tracking platform, pointed out that the sharp drop in Bitcoin at that time directly eliminated the leverage bubble. Not only has the funding rate turned negative, the long-short ratio has fallen back to a more reasonable level, and the number of open positions that have been increasing has also disappear. Newbie friends may not understand it well. What this means is that the long and bullish positions have been liquidated. The crazy market sentiment has calmed down than before, making the entire market healthier.
However, the Bitcoin Liquidity Map data shows that after the collapse of Bitcoin, a large amount of liquidity was wiped out. In view of the current liquidity crisis, it only needs to sell 463 BTC equivalent to US$12 million to cause the price of Bitcoin to drop. down 1%.
Suppose Bitcoin drops again, smart people already know this, right? This is a good time for us to seize the opportunity to enter the market layout! It hasn’t fallen yet, so we can first take a look at what good opportunities there are in the market that are worthy of planning, and let’s go!
Opportunity 1: Keep paying attention to new hot topics and don’t linger on the topics of the last bull market
The next cycle will likely be driven by new applications because we are no longer as constrained by infrastructure as we once were. Let me give you an example. The bull market in 2013 was mainly driven by Bitcoin, the bull market in 2017 was driven by tokens and ICOs, and the bull market in 2021 is driven by DeFi protocols and NFTs.
Can you see it? The narrative of each bull market is different, because the development of the currency circle is changing with the times. In fact, we can also see that because the development of cryptocurrency and blockchain is becoming more and more mature, so many different protocols have been derived. The concept section allows everyone to participate, which sounds exciting, right? Back to topic, so I've seen this rhythm of different hotspots in every bull market for ten years, and representatives say that the next cycle may be driven by new applications because we are no longer limited by infrastructure as we were before.
So what’s hot right now? No Oracle protocol
This concept emerged because after several years of development, the DeFi field has also suffered billions of dollars in thefts. In 2022 alone, hackers stole more than $3.8 billion through DeFi protocols and cross-chain bridges. The "Oracle-less protocol", that is, the concept of not relying on oracles, can fundamentally provide a more robust and secure technical architecture for DeFi. To put it bluntly, it is a good thing!
Blur's Blend is a peer-to-peer permanent lending protocol, and it has the feature of not relying on oracles, so the Blur project is likely to explode. Now its token $BLUR is only $0.2, with a market value of about $170 million, and it is still outside the top 100 in market capitalization. So can it become a hundred times coin? I will make another article to share with you in the future!
Opportunity 2: Zero-knowledge proof
What? Zero knowledge? Does this mean I can make a fortune without studying? Of course not! Simply put, users on the blockchain will be able to instantly verify the state of the chain without having to download block data or rely on a third party, which will change the way the entire network interacts with users. To put it more plainly, you can use zero-knowledge proof, where one party can prove something to the other party without providing any necessary information, thus achieving the effect of protecting privacy.
Even Ethereum co-founder Vitalik Buterin (V God) once said at the EDCON 2023 conference in Montenegro that zk-SNARK will be as important as blockchain in the next 10 years.
That’s enough time for popular science. Let’s just see what related currencies can be purchased now.
$MINA: This lightweight public chain Mina Protocol uses a zk-SNARK technology called Pickles, which allows blocks to maintain a fixed size. Theoretically, the constant size of the entire ledger is about 22kB. MINA Token can serve as network gas fee and participate in node verification.
$MATIC: This year the Polygon team announced the official release of Polygon zkEVM, claiming to be the first EVM-equivalent zero-knowledge (ZK) Layer 2, taking Ethereum expansion and ZK innovation to a new level. For an established Layer 2, it may be a good way to increase exposure in new hot spots!
$IMX: Immutable X is a Layer 2 scaling solution for NFTs on Ethereum. The network offers fast transaction confirmations for minting and trading NFTs with near-zero gas fees. With ZK-rollup technology, ImmutableX provides scalable and high-response infrastructure for various blockchain gaming ecosystems.
There are many other currencies in the zero-knowledge proof section. Leave a message and tell me if you are interested in the project currencies in this section. If the response is enough, I will share this track with you in depth.
Institutional investors generally feel optimistic about prospects for the year ahead
According to a recent in-depth market survey report published by Binance Research, based on feedback from more than 200 global institutional investors, 63.5% of respondents stated that they are optimistic about the development prospects of cryptocurrency in the next 12 months. When asked about their outlook for the next decade, the vast majority also expressed a positive outlook. Even institutional investors have begun to enter the market. What are you still looking at?
So if you want to stay close to the cryptocurrency market and know which big names are also optimistic about cryptocurrency, remember to like and follow us on Monsterblockhk. We will regularly publish currency circle information every week, so you will never be afraid of missing important information!
Summarize
Finally, I think the entire cryptocurrency market will definitely grow more than 10 times, not only because traditional financial funds have not yet come in, but to be honest, the currency circle has really attracted many outstanding, smart, and creative young people on the planet. , everyone is building in the on-chain economy in different fields. Are you afraid that there will be fewer projects that can make big money in the future? I do not believe! See you next time!