The currency circle is benchmarked against the traditional financial market, and the currency that changes at the beginning is Ethereum
In the second half of last month, the GEM next door adopted the registration system and officially implemented a 20% rise and fall limit. The rise and fall limit of the GEM was changed from 10% to 20%.
Originally, this restructuring was to endow the GEM with more "value discovery" functions, but after it landed, there was a phenomenon of frantic speculation of junk stocks and low-priced stocks.
There are many stocks on the GEM that have almost been cut in half and half in the past two years, but in the past half a month, some stocks have been able to pull 8 20% daily limit in 9 trading days, just 12 The trading day rose 6 times.
Other 1-yuan and 2-yuan stocks were also directly exploded. Only half a month later, there were basically no stocks below 4 yuan on the GEM, and the entire market appeared to pay no attention to value stocks and only buy cheap stocks.
In addition, the huge hype on the GEM led to a large-scale outflow of funds from the Shanghai Stock Exchange Index and the Shenzhen Stock Exchange Main Board. The turnover of the GEM has exceeded the Shanghai Composite Index in the past two days. 337.5 billion, while yesterday the turnover of the Shanghai Composite Index was 341.1 billion, and that of the GEM was 402.2 billion. This is a very obvious upside-down phenomenon.
The reason why such a situation is unbelievable is that there are more than 1,700 stocks in the Shanghai Composite Index, while there are only more than 800 stocks in the Growth Enterprise Market. The total market value of the Shanghai Stock Exchange is 42 trillion, while the total market value of the Growth Enterprise Market is 9.8 trillion. The number of stocks belongs to the other party. Twice, the total market value is more than four times that of the other party, but the transaction volume has been overtaken by the other party. There is basically no other reason for this except the concentration of funds and hype. Shanghai Composite Index exceeded the main board, resulting in capital outflows and the Shanghai Composite Index fell.
This is very similar to the situation in our currency circle some time ago. When DeFi was hot, it attracted funds from Bitcoin and the mainstream currency market. Various DeFi proxy tokens skyrocketed, while the big pie continued to fluctuate and even fell.
Many principles are the same in the financial system. For example, many stocks on the main board have a relatively high market value and are well-researched by everyone. Therefore, the amount of funds required to pull the market is relatively large, and the market value of Bitcoin and mainstream currencies is also at the forefront. It requires a huge amount of capital to pull the market, and the pace of mainstream currencies is basically the same, and almost all rise together. In addition, in the past few years, the routines of mainstream currencies have been thoroughly studied by the market. It is difficult for fresh means to attract investors' attention.
But on the other hand, the currency circle is better than the stock market. Like the current market hype, there are many 1-yuan shares and 2-yuan shares on the ChiNext Board, which are basically thoroughly researched by the market. You don’t need much money to pull the market. However, in the past two years, under the circumstances of IPO expansion, there is little capital attention. This part of the stock, but it is still favored is speculation for no reason.
In the past, Bitcoin and mainstream currencies were drawn blood because of DeFi. Although DeFi does have elements of hype, it is not all hype. Some DeFi projects have a high degree of recognition, so the rise in value is indeed understandable.
On the other hand, the funds drawn by DeFi are not too much for Bitcoin, at most several billion U.S. dollars, but the market value of Bitcoin has reached more than 200 billion, and there are nearly 10 billion U.S. dollars in circulation.
To some extent, the GEM is just a separate hype, while the DeFi hype contains more innovations. We can confirm that the situation of the GEM will not last long, and the regulators will inevitably issue relevant containment policies , and DeFi is already showing signs of regaining momentum.
Therefore, we should be happy to see such a situation. After all, it is also a financial market. The current currency market is more logical than some traditional financial markets. This is a manifestation of the progress of the currency market.
Regarding DeFi, we should remember that in the currency circle, a hot spot is rarely paid attention to once and then abandoned, especially such a hot and attractive hot spot. The way may evolve from time to time, so we must embrace changes at any time and follow the changes.
Back to the market, the current overall market is still running within a range, and the shock is expected to continue.
If you look at the rhythm of the interval operation, it is quite obvious, basically maintaining the operation in the range of 9,800-10,400 US dollars. Looking carefully at yesterday's trading volume, it is about two-fifths less than the day before yesterday. This is very likely to maintain a weak and volatile structure. One of the signs of weak shocks is that funds are not active.
If the market does not rise or fall like this, the DeFi sector will be good. If it rises, it will withdraw funds from DeFi. If it falls, it will drive the DeFi sector to fall. Maintaining volatility is a better development opportunity for DeFi, so wait and see whether DeFi will continue in the future There will be new moves.
Today’s changes in mainstream currencies are due to the activity of ETH. In the morning, ETH directly broke through the strong pressure of 360 US dollars and once reached above 370 US dollars. It is currently in a correction, so you can pay attention to the support of 360 US dollars.
Regarding ETH, we suggested long-term attention a long time ago. Even when it fell some time ago, it is still a high-quality asset that can be held for a long time. It is often an excellent target to break the deadlock when the market fluctuates. It is too large, ETH has both applications and qualifications, and is the first choice of many value investors.
