This round of market sentiment temporarily sees the end of the interest rate hike cycle at the end of May. Friends who often watch me know that I am a staunch bull, and I have been telling everyone to hold on to their positions in the last month. However, there are still many uncertainties in the second half of the year, so we have to be vigilant. If we are more pessimistic, we might see a little more than 20,000 BTC by the end of the year.
Next, we must pay special attention to on-chain transactions. LSDFI is a big narrative that everyone generally recognizes, but apart from LSD pledge stocks, few LSDFI projects are listed on major exchanges. As the main narrative in the future, they will definitely be listed on major exchanges. This must be a big opportunity for players on the chain. Of course, we also mentioned the techniques and disciplines of on-chain transactions at the meeting, so I won’t go into details here.
The ecology of zk era is also good. Of course, other second layers are also OK, but I will focus on era, because new projects are constantly emerging, and the enthusiasm of wool party is not diminished. It is very likely that there will be a scenario like arb, where wooling stimulates the ecology, the ecology stimulates wooling, and finally the coin takes off. Of course, the ecology of arb chain must also be considered, and I will spend less attention on the ecology of op.
Cancun Upgrade:
This is the next hot spot that is ready to go after Ethereum’s Shanghai upgrade. You can see that ETH has been soaring after the Shanghai upgrade, but the altcoins have not moved. Except for some actions by ARB, the others have basically not moved. They follow the decline but not the rise. All hot spots still need to be ambushed.
1. Shanghai upgrade will be on April 13, which is good for LSD narrative; Cancun upgrade is expected in May-June, which is good for Layer2 (L2) narrative.
2. L2 is the biggest narrative in the blockchain field in the past 1-2 years. At the same time, L2 also complements other narratives such as zk, defi, derivatives, and chain games.
3. The most important content of the Cancun upgrade is EIP-4844, and EIP-4844 is an optimization solution tailored for L2.
4. Originally, L2 had to compress transaction data and store it in the calldata of the L1 execution layer, and synchronize it to every node in the entire network for permanent storage, which was very expensive. EIP-4844 allows L2 to store data only in the nodes of the consensus layer, without going on the chain, and only keeping it for 30 days.
5. This will enable L2 to achieve at least one order of magnitude of cost optimization, and will obviously make L2 more competitive than other L1s.
6. From now on, establish a concept. L2 is the future. Any L1 other than Ethereum can be hyped, but the long-term value must be questioned. This statement may not be 100% correct, but 80% is correct. From the perspective of long-term value investment, it is better to look at L0 and L3 instead of L1.
7. What should we do? Grab L2 and ZK. Arb was obviously undervalued a few days ago, but it is not high now. ZK has several airdrops, so you should get them right away. Get familiar with the ecosystem and participate as soon as possible. Within 2 years, as long as you can grasp L2+ZK, your investment income should exceed that of most people.
Elon Musk, Bitcoin and Dogecoin
The Twitter owner has influenced the cryptocurrency market several times in the past. His popularity in the cryptocurrency space first grew with his stunts with Bitcoin. He even made the products of his car company Tesla available for purchase with Bitcoin, before later stopping the practice and triggering a crash in May 2021.
Likewise, his influence on Dogecoin is one of the most disappointing developments in the crypto market. His support for the meme coin was so obvious and significant that it even prompted people to nickname Musk the DOGEfather.
While the recent Dogecoin-related tweets did take $6.3 billion off, all of this demonstrates just how much he can influence price action.
Elon Musk will either create hype or exploit it in his own way, and from the looks of it, that’s what to expect from his next announcement. ChatGPT’s competitor – X.AI.
Despite being originally part of the OpenAI team, Elon is only now launching his AI robot competitor. This could lead to the Tesla CEO enjoying the optimism of the AI hype through his X.AI Corporation.
Artificial Intelligence Hype and Its Impact on Crypto Markets
Discussions around artificial intelligence have increased over the past year, including investor interest in the past few months. Like Elon Musk, cryptocurrency market investors are always looking at trends and what sparks the most social cues, ultimately pushing its price up the charts.
When it comes to the top AI tokens that can benefit from Elon Musk’s move, the list is not too long as AI and such tokens are still in their infancy. The total market cap of these tokens is less than $6.3 billion.
Among them, the top 5 cryptocurrencies have achieved significant gains in the past 7 days, with Injective (INJ) performing the best, up 48%, followed by Render token, which is up nearly 33% in a week.
While the gains of The Graph, SingularityNET, and Oasis Network may seem small in comparison, these tokens are still outperforming many of the top cryptocurrencies in terms of the broader market.
Therefore, Elon Musk’s entry into this space will surely make AI Token his new Dogecoin playground.
Continue to eat AI sector: FET (high probability of leading the rise and also confirmed) AGIX OCEAN follow up and look forward to the timing node. Now the outside world is beginning to react to the AI sector, which is too slow
The logic of the idea is very clear. If you observe the recent news, you will know the subsequent hype sectors. There is only so much money in the market. What else can you play if not the hot sectors?
With the Cancun upgrade in May, L2 should have been hyped up in April, otherwise there would not be enough time. Other old coins that are not in the mainstream sector are not played much.
Time is running out for cottages, so cherish the market.
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