The operational mechanism of the Crypto Assets market is worth exploring in depth. First of all, the core driving force of the market lies in the "narrative". Attractive stories can trigger trends and hype, providing opportunities for high-priced dumping of funds. If we strip away the high-end packaging of investment and view Crypto Assets as a regular commodity, then long-term investment is actually paying for the stories and prospects that may emerge in the future.



In terms of return on investment, different Crypto Assets exhibit diverse performances. Bitcoin (BTC) typically achieves a growth of 5 to 10 times within a cycle. Ethereum (ETH) once reached an astonishing 20 times increase in 2021, and now achieving a 5 times growth is considered good. Solana (SOL) achieved a 20 times return in its second round of growth, while Ripple (XRP) has a typical growth multiplier of about 6 times. Low-priced coins usually can achieve a growth of 6 to 8 times. Sui reached about 7 times growth in the recent round. These data reflect the maximum return ceiling of the industry on a 2 to 5 year cycle.

The core of investment lies in finding quality themes and captivating stories. This explains why certain newly issued tokens, such as WLFI, can rise from $0.2 to nearly $0.4 after the contract goes live. The key to WLFI's success lies in its popularity and active speculation, which has given it a certain level of certainty. In contrast, Trump coin, issued by the President of the United States, has an even higher degree of certainty. Essentially, there is a close relationship between certainty, story, and speculation. Projects with stronger certainty often achieve multiples of growth that match it.

In this rapidly changing market, investors need to keep a clear mind and carefully assess the potential and risks of each project. While high-return opportunities do exist, they come with corresponding risks. Rational analysis, in-depth research, and keen insight into market trends are key factors for success in this field full of opportunities and challenges.
BTC0.13%
ETH-0.02%
SOL0.44%
XRP0.57%
View Original
post-image
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 8
  • Repost
  • Share
Comment
0/400
ForkThisDAOvip
· 10h ago
The ecological narrative is on point.
View OriginalReply0
metaverse_hermitvip
· 09-03 22:49
Clear and thorough logic
View OriginalReply0
DarkPoolWatchervip
· 09-03 22:48
Almost all rely on storytelling.
View OriginalReply0
GasFeeVictimvip
· 09-03 22:45
The story is greater than the technology.
View OriginalReply0
MEVictimvip
· 09-03 22:39
Be Played for Suckers is still you Crypto Veterans
View OriginalReply0
MiningDisasterSurvivorvip
· 09-03 22:36
Without a story, who engages in Cryptocurrency Trading?
View OriginalReply0
GateUser-74b10196vip
· 09-03 22:33
The market is betting on stories.
View OriginalReply0
0xTherapistvip
· 09-03 22:23
Data speaks for everything
View OriginalReply0
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)