Lost Ethereum? Investing in a new paradigm: TRUMP drives SOL, bypassing ETH into alt season

Twitter famous account @milesdeutscher poured cold water on ETH, Ethereum supporters' least favorite, as TRUMP meme coin TRUMP skyrocketed.

He introduced a new model of cryptocurrency investment stages, implying changes under the influence of market dynamics and political reforms. The upcoming Trump administration is expected to create a more crypto-friendly environment, which could affect the stages mentioned in the post, especially considering the support for cryptocurrencies from well-known figures like Musk within the Trump circle. In the second stage of the new model, Solana (SOL) is mentioned as having a competitive advantage in the current market environment due to its fast transaction processing speed and low cost.

This chart is a visual representation of the flow of funds in the cryptocurrency market and market stages. It is divided into four main stages (Phase 1 to Phase 4), represented by different block colors.

The following is an explanation of the chart content:

Phase 1: $TRUMP

Description: Funds start flowing into a specific cryptocurrency (using $TRUMP as an example here), causing the price to rise rapidly.

Features: This is the initial stage of the market, usually attracting a large amount of investment from a few specific cryptocurrencies.

(Originally, the Phase 1 and Phase 2 of this chart overlapped, referring to ETH, but now it has been changed to SOL. Funds are gradually flowing towards SOL, but SOL may not be able to keep up with the growth of Bitcoin completely. Feature: SOL's price performance is starting to surpass Bitcoin, and funds are starting to flow back and forth between the two.)

Phase 2: $SOL

Description: Funds flowing into other major cryptocurrencies (here represented by $SOL for Solana).

Features: Large cryptocurrencies start attracting a large amount of funds for buying, and the market begins to enter the next wave of growth.

(Originally, this chart has Phase 3, which refers to large cryptocurrencies. When the cryptocurrencies in Phase 2 become hot to a certain extent, funds will be transferred to other large cryptocurrencies before entering the altcoin season. However, under the new paradigm, especially with the TRUMP frenzy this time, @milesdeutscher believes that there will be no Phase 3 and we will directly enter Phase 4, the altcoin season.)

Phase 4: Altseason（山寨幣季）

Description: Funds flowing into small and micro cryptocurrencies have led to significant price surges for almost all cryptocurrencies, regardless of fundamentals.

Features:

Cryptocurrency prices have reached a high point.

Small and micro cryptocurrencies (altcoins) are pumping on a large scale.

The market is full of frenzy, investor sentiment is high rise, and all kinds of tokens (including meme coins) are skyrocketing.

Competition between ETH and SOL: Ideology corresponding to the times

In the author's view, the competition between ETH and SOL can be likened to the opposition between idealism and realism:

ETH (Ethereum) is a symbol of innovation and decentralization, much like the Renaissance academies pursued the purity of technology and idealized values. The Ethereum ecosystem is filled with technological innovations, from DeFi (Decentralized Finance) to NFT (Non-Fungible Token), all of which are initiated by Ethereum. However, in a profit-driven market, Ethereum's ideals are often challenged. Vitalik's recent public statement expresses that Ethereum will not dominate the direction but instead support the developers' freedom to grow, which may be a response to the pressure from the DeFi community and reveals the internal tension between ideals and reality within Ethereum.

SOL (Solana) represents a kind of realism, like the entrepreneurs in the industrial revolution, focusing more on the rapid implementation of efficiency, speed, and commercial applications. Solana's ecosystem is clearly driven by the domestic development community and commercial interests in the United States. Its flexibility and high performance (such as high TPS) have attracted a large amount of funds and commercial projects. In addition, Solana's development is in line with the current global political environment, especially the trend of anti-globalization and US protectionism, making it more competitive. Recently, the meme coins promoted by the Trump team further demonstrate the connection between Solana and the political and commercial forces in the United States.

Overall,

ETH remains the main battlefield for innovative technologies, attracting developers and enterprises who want to push the boundaries of blockchain applications.

The SOL ecosystem tends to expand rapidly, especially in environments with fewer restrictions and high degrees of freedom. With the promotion of market speculation and commercial interests, Solana may achieve greater growth this year.

Lost Ethereum? TRUMP Drives SOL into the Altcoin Season, Skipping ETH: ChainNews ABMedia.