Continue Capital: After a significant drop, the project is undergoing a transition between old and new, with more focus on the project's fundamentals
What we need to do is to take investment more seriously and carefully select.Author: Pima, Co-founder of ContinueCapital
Note: This article only represents the personal views of the original author and is for learning and communication purposes, not investment advice.
After every major drop, it marks the fall of the iron curtain of new and old alternation, while also opening up another chapter of "youthful brilliance" for some projects. What we need to do is to treat investments with utmost seriousness and carefully select.
In fact, the rhythm is the same each time, just with different protagonists: some projects basically ended their bull market journey before May 19, 2021, and the subsequent time was mostly spent struggling to return to previous highs, such as UNI representing DeFi / DOGE / BNB / DOT / MATIC, etc.
Some projects, after May 19, continued to thrive like youth, experiencing significant waves, reaching 5-10X of the pre-May 19 highs, peaking only in December 2021, such as SOL / LUNA / SHIB / AXS / SAND, etc.
So, from my personal perspective after this major drop, what am I observing?
1/ SOL and its ecosystem, not much more to say, you can never wake up someone who is pretending to sleep.
2/ SAGA and its ecosystem, a modular L1, comes with ecological Buff, but still faces challenges in attracting user groups; we need to see when the critical point arrives.
3/ SUI and its ecosystem, the technology is unquestionable, MOVE dual stars and other L1s face severe difficulties in attracting user groups, with long-term DAU of 20,000 to 50,000, compared to SOL / BNB's DAU of 1 million, the gap is widening. New things and new brands are far less attractive to ordinary users than expected.
Don't live on Twitter, live on the fundamentals of the projects. Sometimes you feel it's hot and popular, but it might just be a topic in your group/in your village. A check on on-chain data shows only a few thousand people are playing, just playing house.
4/ Clob order book. The mission of AMM has been completed; high-capacity L1s need better adaptive DEXs, and the competition is fierce. UNI's V5 seems to also be an order book; which among Drift / Hyperliquid / RabbitX will emerge? Is there a chance for the dual-token Purr?
5/ What will SocialFi evolve into? What kind of crypto-native experience will $Friend / Fantasy / DistrictOne bring? How to scale and retain users is something SocialFi needs to explore further.
6/ Will new AI projects have opportunities? When will they generate positive revenue? $NMT $DE AI $NOS, we have seen the harsh and picky nature of the US stock market towards AI companies' performance, while also rewarding true performance significantly. The crypto circle's AI will also have revenue; the question is how to scale and establish a moat.
7/ RWA is indeed one of the paths to PMF; standing tall while being hit, how to filter I still haven't figured out, requires collective wisdom $MKR $RIO.
8/ MEME, you think the MEME you bought is rising all the way, but in reality, it is fraught with difficulties. What you see is just the result, overlooking the torment of the holding process (torturous STAN / MONK / GIGA). Recently, it has been interesting to see the disputes between community cat representatives POPCAT / MICHI and VC cats during the cat king competition. Currently, it seems that pure community MEME has won decisively, and the anti-VC sentiment has blown into MEME.
