The Daily Gwei - Fallout - The Daily Gwei #480
Fallout - The Daily Gwei #480It's finally time to accept reality - the party is well and truly over.The crypto markets are wildly unpredictable and pretty much no one knows where prices are going to go in the short to medium term. Even in the longer term it’s very hard to predict which projects will survive and I think there’s really only 2 that we have any certainty for - Ethereum and Bitcoin. In the meantime, and for the next several months at least, we are going to be experiencing the fallout of the 2021 excess. Ponzis collapsing, funds blowing up, retail getting rekt, quality assets getting giga oversold, people reaching the acceptance stage of grief and ogs welcoming the pain
This is how bottoms are formed - surviving this should now be your only objective - don't blow yourself up As I said in my tweet above, crypto bear market bottoms are formed when there is a “max pain” of sorts throughout the industry. This usually comes in the form of lots of people getting absolutely obliterated, a cleansing of all the trash projects that pumped during the bull market, a humbling of egos and a feeling of a “reset” across the industry. Though just because a bottom may be formed it doesn’t mean that prices are going to start going back up immediately - it usually takes quite a while for the market to turn bullish again after events such as those we’ve experienced over the last few days. The craziest thing about the last few days is that what happened to the Terra ecosystem is quite literally unprecedented within crypto - especially at the scale it happened at. Of course, we’ve had other big things blow-up over the years (Mt. Gox, Bitconnect, the March 2020 crash) but never at the scale or speed of LUNA and UST. It’s hard to tell right now, but I think the effects of these last few days are going to be felt for a long time to come - the tens of billions of wealth that has been destroyed in such a short period of time will take a while to recover from. Obviously I’m still very bullish on Ethereum and ETH - actually even moreso after the Terra collapse - but unfortunately it is not immune to broader crypto market movements. I do think ETH will fair better in the recovery and that many of the most popular 2020/21/22 era tokens won’t ever see their all time highs again (or even close to them). Ethereum will also keep shipping its major upgrades regardless of market movements - The Merge, sharding, layer 2’s - all of this is still going to launch and continue to be worked on. The crypto industry has been through market cycles plenty of times now and the quality projects have come back stronger every time. Though a key difference now compared to previous cycles is that the macroeconomic environment has completely shifted and is in uncharted territory with things like inflation in the U.S at 30 year highs. It’s always good to keep things like this in mind as not to get sucked into deterministic thinking as this often leads to rash short-term decision making which can then leads to monetary losses. Have a great day everyone, Enjoyed today’s piece? I send out a fresh one every week day - be sure to subscribe to receive it in your inbox! Join the Daily Gwei EcosystemAll information presented above is for educational purposes only and should not be taken as investment advice. If you liked this post from The Daily Gwei, why not share it? |
Older messages
A Terrable Day - The Daily Gwei #478
Tuesday, May 10, 2022
Another one bites the dust.
Max Pain - The Daily Gwei #477
Monday, May 9, 2022
Is this the bottom?
Straight to Goblin Town - The Daily Gwei #476
Friday, May 6, 2022
Most tokens are on a 1 way trip to Goblin Town.
Unique Positions - The Daily Gwei #475
Thursday, May 5, 2022
Celebrating ENS' 5th Birthday.
Building Through Hell - The Daily Gwei #474
Wednesday, May 4, 2022
If you're building through hell, keep building.
You Might Also Like
Top 4 accounting firm turns to Ethereum for blockchain-based business contracts
Thursday, April 18, 2024
OCM is designed to facilitate the secure handling of business contracts on a public blockchain, ensuring privacy by utilizing zero-knowledge proofs to maintain contract integrity and confidentiality. ͏
CryptoQuant Research Director: Halving is imminent and Bitcoin price has room to continue to rise
Thursday, April 18, 2024
Julio Moreno, the Head of Research at CryptoQuant with over 13 years of expertise in commodity research, leads the forefront of on-chain analytics. This podcast discusses CryptoQuant's recent
Fetch.ai, SingularityNET, and Ocean Protocol’s planned $7.5 billion ASI token to launch in May
Wednesday, April 17, 2024
Artificial intelligence was one of the leading narratives in the crypto industry during the first quarter of the year. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
Claim $AVAX with LayerZero Quest
Wednesday, April 17, 2024
Complete two, easy onchain actions for $AVAX and build your LayerZero onchain reputation. Reputation could help you get the upcoming airdrop Flipside Crypto Hey there, Claim $AVAX when you complete
DeFi & L1L2 Weekly - 💱 Ondo Finance Successfully Tests Near-Instant Conversion Between USDC and BUIDL
Wednesday, April 17, 2024
Ondo Finance tests instant conversion between BlackRock's BUIDL and USDC. Ethereum's Pectra upgrade to introduce smart contract functionality to wallets. EigenLayer removes staking caps on LSTs
DeFi & L1L2 Weekly - 💱 Ondo Finance Successfully Tests Near-Instant Conversion Between USDC and BUIDL
Wednesday, April 17, 2024
Ondo Finance tests instant conversion between BlackRock's BUIDL and USDC. Ethereum's Pectra upgrade to introduce smart contract functionality to wallets. EigenLayer removes staking caps on LSTs
Interpreting the underlying design mechanisms and limitations of the Runes protocol
Wednesday, April 17, 2024
Author: 十四君 Source: https://mp.weixin.qq.com/s/EN8ZdiomQVUQ4WBRZ4GqKA What is Runes? In the past year, the biggest narrative in web3 has been the explosion of the inscription ecosystem, starting with
Analyst predicts low inflows for Hong Kong’s newly approved Bitcoin, Ethereum ETFs
Tuesday, April 16, 2024
Bitcoin and Ethereum ETFs in Hong Kong may struggle due to limited market and high fees - Balchunas ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
Bitcoin’s 4th Halving
Tuesday, April 16, 2024
Understanding the significance of halvings, impact on miners and bitcoin's price ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
Chinese Top VC Discuss Controversial Topics: Is AI+Crypto and Bitcoin L2 Just Hype? Is Binance Too Monopolistic?
Tuesday, April 16, 2024
This episode of the podcast is organized by Wormhole & Pyth during the Hong Kong Activity Week. The host is Colin Wu, Founder of Wu Blockchain. Guests include BMAN, Co-Founder of ABCDE; Michael,