When I shared with you about the next trend of the market in the previous articles, some readers asked:If there is still a bull market in the second half, is it possible for DeFi digital assets to rise even higher than Ethereum?
To see this problem, we can compare a specific DeFi project with Ethereum.
Let’s take Uniswap, which is currently the most popular, as an example. As of writing, its market capitalization ranking has risen to No. 10, and it is the first DeFi project to break into the top 10 (not counting Link).
In the previous article, my fixed investment price recommendation for Uniswap is $5, and the fixed investment price recommendation for Ethereum is $400. Before the crash on May 19, the highest price of Uniswap was close to $45, and the highest price of Ethereum was close to $4,200.
If we count the fixed investment price as the low price, then Uniswap rose up to 9 times (45/5) before the plunge, and Ethereum rose more than 10 times (4200/400) before the plunge. The difference between the two increases is actually not that big.
Insert a sentence here: Why do I count the fixed investment price as the low price and not the lowest price in the market? Because the lowest price in the market has little meaning to most investors in practice, it is difficult for us to be sure to buy at that point. Only the fixed investment price is the price that we really have reference value for us in actual implementation.
Going back to the comparison between Uniswap and Ethereum, this phenomenon not only exists on Uniswap, but also on many other well-known DeFi projects, such as Compound and MakerDAO.
Therefore, judging from past data, the growth rate of top DeFi projects is basically similar to that of Ethereum. Therefore, I estimate that if the market breaks out again in the second half, the growth rates of these top DeFi projects and Ethereum will still not be much different.
Of course, there are some top projects (such as CRV) whose growth rate in the first half is obviously not as good as that of Ethereum, so in the second half, I believe it will perform better, but there seem to be not many such projects.
This is purely from the point of view of growth rate. In addition, if we look at it from the perspective of risk, are these projects more risky or Ethereum? I think even Uniswap is still riskier than Ethereum.So if you really want to buy, I suggest that for ordinary investors, it is better to directly buy Ethereum, which has low risk and similar returns, so that it is more reassuring, reassuring, and worry-free.
Speaking of which, I would like to share with you the market by the way: It has been more than a month since the plunge on May 19, and all digital assets have experienced a deep decline after more than a month of baptism. The risk on price has been removed a lot.
Investors who have spare energy and idle funds can consider entering the market again at an opportunity.
If you are more conservative, you can wait for a while to see if Ethereum can fall below $1,500.
If the second half is a bull market and Ethereum can fall below $1,500, buy it at that time, and there is no doubt about the future benefits; if Ethereum falls below $1,500, if you miss it, you will miss it, and you will have no regrets.
If there is no bull market in the second half, and now it enters a bear market directly, then the current price of Ethereum at $1,900 is probably not low, and it is likely to continue to fall, and it is very possible to fall below $1,500. In this case, $1,500 can be seen as a price point for a new bear market, at which I will start another 4-year bet.
Therefore, considering the two possibilities of the market trend, I will start the fixed investment again when Ethereum falls to $1,500.
Of course, investors who are more aggressive and have a strong tolerance for risk will not have a high risk of entering the market now.
