After entering October, there have been some new changes in the digital currency market. The original strong tokens have been adjusted, and some new star tokens have begun to rise. It is necessary for us to re-examine the market situation and discover the latest hot tokens and focus points.
1. Re-examination of Bitcoin’s value
Regarding the current re-examination of the value of Bitcoin, I briefly analyze it as follows:
The price of Bitcoin fluctuated around $20,000, and market confidence was under pressure.
However, as digital gold, Bitcoin still has certain anti-inflation properties and value storage functions.
Layer 2 solutions such as Lightning Network improve Bitcoin’s payment utility.
The equal distribution mechanism of Bitcoin mining provides support for its decentralized nature.
The number of Bitcoin holders continues to grow worldwide, and the user base continues to expand.
Bitcoin price trends have some overlap with the stock market, but the long-term drivers are more independent.
The likelihood of Bitcoin ETF approval is increasing, which will boost institutional acceptance.
Bitcoin is still the "biggest ship" in the digital asset field, and its technical foundation is relatively mature.
In general, this wave of adjustments has limited impact on the medium- and long-term investment value of Bitcoin, but short-term fluctuations still exist.
2. Can Ethereum achieve a technological breakthrough?
Regarding whether Ethereum can achieve new technological breakthroughs, I briefly analyze it as follows:
Ethereum is actively promoting the Shanghai upgrade, but there are still certain execution risks.
Whether the Shanghai upgrade can go smoothly is related to whether Ethereum can achieve the POS consensus transition as planned.
The technical team expressed confidence that it could solve the relevant challenges, but still needed community support.
The rapid development of Layer2, such as the most positive, has improved Ethereum's scalability problem.
Ethereum is still ahead in blockchain in executing smart contracts and a large number of DeFi and other applications.
But Ethereum also faces challenges from emerging high-speed public chains and requires technological innovation.
Ethereum is trying various breakthroughs such as sharding, but it still takes time to achieve.
Ethereum's ecological activity and community participation remain advantages.
Overall, Ethereum is expected to maintain its technological first-mover advantage, but it is also facing a new round of transition.
3. Impact of emerging public chains
Regarding the impact of emerging public chains on the market, I briefly analyze it as follows:
The rapid rise of emerging high-speed public chains such as Solana and Avalanche has opened up competition in the market.
These public chains have higher TPS and can carry more complex applications.
Some projects have begun to be deployed on emerging public chains, such as DeFi.
The low cost and high speed advantages of emerging public chains pose a threat to Ethereum.
However, some new public chains have uncertainties in scalability and security.
Ethereum and others are also accelerating innovation, and emerging public chains need to continue to improve.
Some new public chains may just be conceptual hype and need to be distinguished.
New public chains with excellent technology still have the opportunity to open up the market.
In the future, a multi-chain structure may be formed in which Ethereum and Nova public chains coexist.
Overall, emerging public chains bring more choices to the market, but also increase complexity.
4. Regulatory turmoil over stablecoins
Regarding the regulatory storm facing stablecoins, I briefly analyze it as follows:
Some centralized stablecoins have recently encountered regulatory risks such as frozen funds.
Regulators have strengthened supervision of stablecoin backup assets and required full 1:1 guarantees.
The reliability of some decentralized algorithmic stablecoins is also facing challenges.
Stablecoins may face stricter issuance supervision and the threshold will be higher.
But in the long run, there is still ample room for compliant stablecoins.
Regulation may increase users’ caution towards stablecoins and slow down their rapid growth to a certain extent.
Some decentralized stablecoins will be subject to review and are at risk of delisting.
Stablecoin issuers need to improve transparency and risk control.
Overall, after this round of regulatory storm, stablecoins will be on a healthier development track.
5. New attempt at proof of stake mechanism
Regarding the new attempt of Proof of Stake (PoS) mechanism in the field of digital currency, I briefly analyze it as follows:
Ethereum is steadily moving toward PoS, testing some new designs.
Emerging public chains such as Solana have adopted an improved version of PoS, which can alleviate the centralization problem to a certain extent.
Some projects try to combine PoS with other mechanisms such as PoW to achieve hybrid consensus.
The new PoS mechanism achieves better randomness and anti-monopoly.
Design incentives for coin holders through locking positions, staking, and transferring transaction fees.
Use methods such as Nomination to lower the node entry threshold.
Some projects use PoS to implement stablecoin issuance and management.
The PoS mechanism also has certain centralization risks, and its operation needs to be monitored.
More innovative mechanisms may emerge in the future, combining the advantages of PoS.
Overall, PoS brings more possibilities to blockchain, but it also needs to be used with caution.
6. The arrival of Layer 2
Regarding the arrival of the Layer 2 solution era, I briefly analyze it as follows:
Layer 2 solutions are developing rapidly, such as Zuizheng, Arbitrum, etc.
This type of side chain can significantly improve the scalability and transaction speed of the main chain.
More and more applications such as DeFi are beginning to migrate or be deployed to Layer 2.
Layer 2 significantly reduces gas fees and improves user experience.
The two-way bridge technology can ensure the cross-chain transfer of assets between the main chain and Layer 2.
But some Layer 2 have determinism and security concerns.
There is also competition among Layer 2s, and continuous innovation is needed.
For long-term health, the main chain and Layer 2 need to coexist synergistically.
In the future, a new situation may emerge in which the main chain and multiple Layer 2s coexist.
In general, Layer 2 provides an expansion path for the main chain, but it also adds complexity.
7. Slight recovery of the NFT market
Regarding the recent slight recovery of the NFT market, I briefly analyze it as follows:
Mainstream NFT markets such as OpenSea have seen a slight recovery in trading volume.
However, trading volume is still significantly lower than the peak in 2021, and real prosperity will take some time.
Some NFTs launched by celebrities on Twitter have also achieved good sales.
Some brands have begun to launch practical NFTs and explore application scenarios.
The number of off-chain exhibitions of NFT applications has also increased, raising public awareness.
However, mainstream application scenarios are still lacking, and most NFTs have low liquidity.
PFP and digital art NFTs remain highly speculative.
Only if there is a clear commercial scenario, the NFT market may continue to recover.
The current market recovery is only a short-term situation, and long-term development remains uncertain.
But positive factors are accumulating, and NFT may usher in new opportunities.
end
October can be said to be a month of change in the digital currency market, with some new trends and hot spots emerging. As investors, we must keenly capture these signals and adjust our strategies to remain invincible in this ever-changing market. Let us wait and see and continue to discover new opportunities in digital currencies.
【Thank you for reading. If you have any additions or other ideas, please feel free to discuss. 】
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【Disclaimer】The market is risky, so be cautious when investing. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions in this article are suitable for their specific circumstances. Investing based on this is at your own risk.