Last night, Binance announced the launch of GRASS perpetual contracts, which immediately ignited market sentiment. The price of GRASS soared to $3.5, setting a new record high. The trading volume exceeded $700 million in 24 hours. Since its launch on October 29, GRASS has accumulated a growth of more than 400%. So the question is, what is the basis for this coin?
I wrote an article about GRASS before. At that time, the price was only $1.5, and I told everyone to buy it! As expected, the price of GRASS has increased several times. Today, I will talk to you about the latest developments of this coin. You can also go back and read the previous article as a review.
The magical GRASS: a black technology for data monetization?
What is GRASS? It is the latest darling of the DePIN track. Simply put, if you just hang some data, GRASS will give you rewards (TOKEN/POINT). This model is not only fresh, but also interesting. Behind it are top VC Polychain, as well as investment giants such as Deiphi (the promoter of the once king-level project LUNA) and Hack, which have injected a lot of trust into it. These big institutions directly carried the sedan chair, and GRASS was like riding a rocket, soaring into the sky from the starting line.
Having said that, the operation of this DePIN is not simple. The reason why GRASS attracted a lot of VCs is that it grasped two words: data. Everyone knows that AI is a rigid demand for the future of mankind, but AI cannot be separated from data, and data has always been monopolized by a few large companies. GRASS uses decentralization to trace data and directly breaks this monopoly model. This kind of "democratic data sharing" sounds good, but it is clear that it is "paying you with your data." This operation has immediately won the hearts of a large number of loyal users and investors.
Technical analysis: RSI indicator and potential pullback pressure
GRASS's surge is dazzling, let's take a look at the technical analysis.
GRASS's RSI has quickly climbed from 55 two days ago to 71.8 after the recent price surge. This rise indicates strong buying pressure, which has pushed the RSI into the overbought range. Such a rapid rise shows the market's high attention to GRASS. Even a few days after the official announcement of the second airdrop of GRASS, the RSI once reached 85.
RSI (Relative Strength Index) is a momentum indicator that measures the speed of price changes. When RSI is above 70, it usually means overbought, and below 30 means oversold. Currently, GRASS's RSI is 71.8, which is in the overbought area, indicating that market enthusiasm may have pushed prices too high, too fast.
However, the RSI has fallen significantly since yesterday, which may indicate that the market has entered a cooling-off period, buying momentum has weakened, and prices may face the possibility of adjustment.
The GRASS Ichimoku cloud chart shows that GRASS is now riding on the clouds and has a bright future as the entire Solana ecosystem seems to be thriving (Solana has hit a new high of $205 as of press time).
The first key support area is located near the upper edge of the cloud, around the $2.9 level, coinciding with where the cloud begins to thicken.
The second key support is around the $2.4 level.
If GRASS really needs to pull back, this support range may be its "cushion".
Of course, if BTC continues to maintain its strong momentum and Binance’s contracts continue to bring firepower, GRASS may continue its upward trend and may soon break through the $4 threshold.
Current status of staking: lock up your stake and wait for returns?
Since November 6, the number of GRASS staked has remained above 26.6 million, showing investors' confidence in long-term holding. The stability of the number of stakes indicates that the market has entered a consolidation phase after a short-term boom. Although the number of stakes was close to 28 million in early November, the current level of stability may indicate a more mature market mentality.
An increase in the number of staked GRASS usually means that investors have reduced the circulating supply, which helps stabilize prices. However, excessive short-term gains may prompt some investors to gradually take profits and leave the market, so subtle changes in the stake indicator are worth paying attention to. A decrease in the number of stakes may indicate a market correction, while if the stake increases again, it means that more long-term holders are re-entering the market at a low level.
How long can GRASS's potential last?
Looking back, the reason why the GRASS project became popular is that it is backed by institutions and is in line with the current data economy and decentralization trends. The future potential of the DePIN track is undoubtedly huge, especially with the growing demand for AI and big data, and everyone is eyeing the fat meat of data. With more and more users and capital entering the market, the popularity of the DePIN track is expected to continue to increase. In the future, the trend of GRASS may be affected by the overall market, but as long as Bitcoin remains stable, GRASS is likely to be able to hold up for a while.
The trend of DePIN: Is data no longer exclusive to giants?
If we dig deeper, we can find that there are actually quite a few projects emerging in the DePIN track.
Data shows that Messari predicts that by 2028, the market value of the DePIN market is expected to reach 3.5 trillion US dollars, which is higher than the current market value of Bitcoin (Bitcoin is currently 1.5 trillion). This market value prediction caused an uproar in the market, and the value of DePIN was directly promoted by capital as a "newcomer".
DePIN essentially solves the problem of data being monopolized by a few giants. In the GRASS model, your data will become valuable. The more you contribute, the more you earn. Think about the future AI era, when the value of data soars, and DePIN is like a potential stock, which is directly placed on the "future trend" track by investors.
After this wave of popularity of Grass, many DePIN projects will emerge in the future, and opportunities similar to GRASS will also emerge in an endless stream.
But the question is, how do you play this track? In a nutshell: you need to reserve server resources and know how to manage them in batches.
The core concept of DePIN is to integrate the idle computer resources around the world for AI and other needs, and then issue token rewards to resource contributors through blockchain technology. Simply put, DePIN's "means of production" is computer resources. Whoever owns a computer and can manage it can earn tokens. This is just like brushing likes and being an LP in the past. Whoever knows how to play can make a fortune.
Although you may want to run DAWN directly on your home computer, the problem is that it is complicated to get 100 or 1,000 accounts. If you find a proxy, you will never know how it is done behind the scenes; if you open a server yourself, you have to consider how to allocate resources reasonably, otherwise it will be wasted. The management and data monitoring of multiple servers are even more troublesome, and the technical requirements are also high. The threshold for participating in the DePIN track is not low now. Unlike LuMao, the competitive pressure is small, but there are also more "scientists".
However, this is actually a good thing. The high threshold means that there are relatively few entrants, and the opportunities are more precious. The future of the DePIN track is still full of potential.
Conclusion: Is it a dream or a pit? Should we continue to increase our investment or quit while we are ahead?
In general, GRASS is one of the most eye-catching projects in the current DePIN track. The launch of Binance contracts gives it many opportunities to reach new heights. However, in the short term, the overbought state makes it face certain callback risks. For investors who really want to hold for the long term, the DePIN track does have a bright future, and GRASS is expected to continue to enjoy the dividends of this wave of data decentralization.
With the interest rate cut and the cryptocurrency bull market that started after Trump's election, AI and big data will be the undisputed themes in the future, and DePIN is likely to become a force in it. The rise of GRASS is not just a temporary speculative operation, but more like the beginning of a data revolution. Investors who want to catch the trend must stay calm in the heat. After all, the ultimate winners are often those who see the track clearly and run fast enough.
