Previously, many public chains aimed at benchmarking Ethereum, claiming they would surpass and replace Ethereum. Can they succeed? What does Ethereum look like now? Coupled with recent media critiques of Ethereum, how much longer can Ethereum last?
CPI good news was extinguished by the fires of war in the Middle East; what exactly happened on this night of market panic?
CPI data fell short of expectations across the board; it should have been a script for market revelry, but suddenly the Middle East exploded — US-Iran nuclear talks completely collapsed, and Israel told the US it was going to attack Iranian nuclear facilities. The US estimates that Iran will retaliate against US bases in Iraq, and Middle East War 2.0 seems imminent. As this unfolded, the market instantly changed its face, shifting from an upward trend to a correction. Simply put, when geopolitical risks arise, all good news must take a back seat.
While altcoins have been following the overall downtrend, ETH has held up better. Even more impressive is that ETH ETF inflows reached 240 million, setting a record, surpassing Bitcoin ETF's 160 million. Institutions are aggressively targeting ETH, and the eth/btc exchange rate is still rising — remember, ETH is the leader of altcoins; as long as it holds steady, when the overall market returns to an upward path, altcoins will have a chance.
Now when playing altcoins, one must change their mindset: old coins cannot rise again; go where the traffic is.
The current altcoin market is too sensitive; a slight market correction leads to declines. But have you noticed? The mainstream coins that were once praised are now looked down upon by large funds; those who used to trade these coins have all moved on-chain. The new things like on-chain memes and inscriptions may look flashy, but essentially they are not much different from the previous mainstream coins; it’s just a new layer of packaging.
To be honest, this round of altcoin trends is already over halfway through; popular coins, AI coins, and inscriptions have all produced hundredfold and thousandfold gains. Looking back at those old coins on exchanges, many may never recover, which is why I’ve been advising friends who hold small-cap coins to switch positions — rather than betting on a small chance of recovery, it’s better to concentrate funds on buying the leaders in each sector, like PEPE and AAVE. Playing small-cap coins is inherently high-risk speculation; one must learn to select assets that can be valued, just like institutions, rather than making blind bets.
ETH is leading the charge; these Ethereum-related sectors should be highlighted.
Next, ETH will likely lead the trend of Ethereum-related altcoins. I’ve filtered out a few valuable directions; seize the opportunity to position yourself:
1. ETH Layer2: ARB, OP, ZK, STRK, METIS, IMX. ETH aims to be the 'global computer', and Layer2 must uphold the banner of high TPS and low Gas fees. ARB, OP, and STRK are the top three, all with FDV exceeding ten billion. Focus on the implementation of their ecological applications, especially the zk series (ZK, STRK), which has fast technological iterations and is easily narratable.
2. ETH staking/re-staking: LDO, SSV, ETHFI, EIGEN. Since the ETH Shanghai upgrade transitioned to POS, the staking sector has become hot. LDO is the largest service provider, with the highest TVL in the network, and a market cap of 800 million; SSV is important infrastructure and is essential for re-staking. Now that institutions are aggressively buying ETH, the staking sector can still be speculated, especially for EIGEN, which is a re-staking protocol with strong correlation to LDO.
3. ETH established DeFi: UNI, AAVE, COMP, MKR, CRV. DeFi is the sector everyone is most familiar with, being the main force in the last bull market. Although innovation is scarce now, it excels in maturity. AAVE's lending, MKR's RWA, and CRV's stablecoin trading are all potential directions for institutional funds. Remember, don't touch small platforms; focus on leaders, like UNI's liquidity and AAVE's staking volume.
4. ETH meme: PEPE and NEIROmeme coins have surged the most this round. PEPE, as the leader, has already validated the traffic effect, and NEIRO, as a rising star, can be played with a small position, but remember not to go all in — meme coins are about hype; they rise quickly and fall even faster. Once you’ve made enough profit, run.
5. Innovation sector: PENDLE. PENDLE separates the principal and interest of tokens for trading, enabling future yield speculation. Recently, both TVL and token prices have surged, making it one of the rare innovative projects in DeFi. Now institutions are starting to research RWA; protocols like PENDLE that can decompose yields may attract funding.
In the current market, don’t expect a widespread rally without interest rate cut expectations, but the fact that institutions are aggressively buying ETH is clear — as long as it can break through 2800 USD, Ethereum-related altcoins will definitely follow.
Don't stubbornly cling to old coins; focus on the leading ones in sectors with traffic. Allocate key positions to Bitcoin, and use small funds to speculate on altcoins. To make money in this bull market, you have to follow the money and narrative.
I have already timed the next big market movement in advance; I'll help you easily go all in and profit!
