SOL is like a bamboo, how long can it rise?

Author: Chain Research Society

Why is SOL so strong, technology is far ahead?ecological explosion?capital self-help? These views have been heard too much recently, I say something different may subvert your cognition, the article will also talk about when SOL is expected to rise, which is what you need to care about in Holdings

There are 3 main points to tell:

1. Faith falls out, Consensus rises out

2. Making assets is the key, MEME leader BONK out of the circle and new narrative Depin

3. There are a large number of lock-up positions in the chip structure and a high degree of concentration, and FTX Rekt cannot be dealt with in the short term and there is no selling pressure

Why is it said that faith falls out and Consensus rises?

You can understand by comparing the bulls and bears that ETH has experienced in the last round of Bull Market, ETH performed particularly well, rising nearly 60 times from the lowest point in 2018. But before that, compared to the 2017 high, ETH fell from 1440 to 81.79, a full 94%, and SOL fell from 259.9 to 8, a 97%. When market confidence is strongly impacted, triggering large-scale selling behavior is almost equivalent to clearing everyone’s accounts and starting anew, which is not only experienced by ETH and SOL, BTC has also had several drops of more than 90%, clearing all floating chips, and stable Holdings. As the price rises, the money-making effect is created by continuously creating assets, and external buying begins to enter, and only then will everyone pay attention to the changes brought by the fundamentals. There are two types of people who are already holding and increasing their positions, and potential buyers who will buy at support levels or in an uptrend. When the market is bought by everyone who wants to buy and holds for a long time, it enters a sideways trade until the next key event.

Why is asset creation key?

ETH’s two rounds of Bull Market have experienced asset expansion, ICOs and Decentralized Finance fevers, locking up most of the liquid chips. SOL is also the same, a BONK has completed the road of a thousand cups, and then there is the introduction of the concept of Depin to expand the circle to acquire new users and create new assets, and whether the public chain can win has never been how leading the technology is and how perfect the ecology is, but the money-making effect and new narrative. And ETH due to the inefficient flow of gas funds and the large number of believers (all the ones that should be bought at present) and the chip structure of the pos mechanism has stabilized, you need to wait until the next key event, such as the large drop of gas or the ETF through the introduction of new funds, due to its large number of believers, the potential buying is sufficient, and the explosive power will be very strong after the key event is triggered, so don’t rush to sing.

Why is it necessary to have a large number of lock-up positions in the chip structure?

The market generally believes that the more evenly balanced the chip structure, the better, and that a high concentration of chips is a bad thing. In fact, the opposite is true, you must know that everyone involved in market transactions is just like you, and the more evenly balanced the chip structure, the more factors that need to be gambled, the more difficult it is to actually rise. The factor that determines the price increase is that the potential buying order is not the distribution of chips that have already purchased the target, and the two types of potential buyers, one is already holding and constantly adding positions, and the other is that potential buyers will buy in the support level or upward trend, and the Holdings are stable, which constitutes an upward trend in the price. It is also an example of ETH, the last round of ETH also has a large number of lock-up position chips, ETH2.0 lock-up position, after the lock-up upgrade can be withdrawn, a large number of grayscale fund buy-in only in and out, a large number of lock-up positions in Decentralized Finance, almost all floating chips are locked, ETH can have a maximum 60-fold increase, without these floating chips Lock-up Position will definitely encounter huge pressure. Speaking of SOL, FTX and Alameda wallets hold a total of about 55.8 million SOL, accounting for 13% of the total circulation, which is completely similar to what ETH experienced at the beginning, but SOL in FTX and Alameda Wallet may no longer be strong after the resumption of circulation, which is similar to the withdrawing of funds after the Shanghai upgrade experienced by ETH.