LayerZero_Labs is about to be launched. In my opinion, it is a bit untimely to launch it at this stage of the market. $ZK, which was launched some time ago, is also one of the four kings of L2. Its performance after its launch is obvious to all. In fact, there are many reasons for this. Just like a person's success in life requires the superposition of many factors such as time, place, and people, the same logic applies to projects in the crypto market.
1⃣
First, let's talk about LayerZero. It is a blockchain underlying technology that can realize seamless transfer of assets across the entire chain in the crypto world. This will undoubtedly greatly improve the efficiency of the crypto market. Many cross-chain bridge projects use LayerZero's underlying technology, so L0 is a rigid demand, and L2 is more to solve the impossible triangle problem of L1. The biggest difference between the four L2 kings is the different verification methods. Combined with the current status of Ethereum's main network, GAS has dropped to the lowest point in recent years, and there is no congestion at present. So we can reflect on whether this market really needs so many L2s?
2⃣
Many people will discuss whether the research project itself is valuable. In fact, from an outsider's point of view, what value is there in the crypto market? Without an entity to support it, it's all air. I don't deny their point of view. Indeed, all projects are telling a story to the market, and then using this story to sell coins. All coins are MEMEs, including Bitcoin, which is the largest MEME.
3⃣
So how do we find high-quality investment targets in this market? My answer is to find strong market makers. No matter how good a project is, it is difficult for us to make money without a strong market maker. A MEME that seems to have no value can make us a lot of profit because of the strong market maker. I believe the market has already given the answer to this. Take ARB and SOL for example. From my personal experience, the ARB chain is not inferior to any project. On the other hand, the SOL chain has downtime from time to time. Its ecological DEX is as difficult to use as it can be. It even surpassed Ethereum in the name of high TPS. Regardless of whether it can become the next Ethereum, I can only evaluate it as difficult to use. The trend of SOL tokens is not a little stronger than ARB. From the bottom of about 20 last year to the current highest point of about 200 this year, it has increased tenfold. It is no exaggeration to say that the price of ARB is terrible. The reason behind this is that SOL is driven by Wall Street capital. So now I will not use the value of a project itself to judge whether it is worth investing, but look for targets with strong market makers.
4⃣
So looking back at whether $ZK $ZRO is worth our investment, I believe everyone has their own answer now. From the perspective of the project itself, it is valuable and very popular, but combined with the current market situation, we might as well think about it from another perspective. If we ourselves are institutions or capital, and we have billions of dollars in our hands, in such a global financial environment is not very good, the market conditions are unstable, and the liquidity of the cottage itself is insufficient, will we choose to give such a target a market value at this time?
5⃣
In summary, the success of a project requires its own narrative ability that meets market demand, a strong team (including the promotion of large capital), good market conditions, excellent market makers and other factors. In short, the strength of a project is reflected in the market and cannot be judged solely by the project's publicity.
6⃣
The money we earn is given by market conditions and trends. Don’t be too confident in how strong your own abilities are. For example, the profits from this round of market conditions basically come from some spot goods bought last year and held until this year. In a bull market, many people cannot make money because they have been chasing the rise, and as a result, they are always stuck at the top of the mountain and cannot hold on to the rise. So in the future, try not to chase highs when the market is particularly good, but to hoard coins when the market is not good. In fact, you can make good profits by bottom-fishing during the several crashes every year and then leaving after a rebound.
