In the face of "skyrocketing" currencies, how should the market outlook be laid out?

Among the DeFi tokens, two have been particularly eye-catching recently, one is Link and the other is Sushi (sushi). The reason for the eye-catching is the skyrocketing price.

In my impression, Link has hovered around $10 for a long time, and it has exceeded $20 in one fell swoop these two days; Sushi has hovered around $1 for a long time, and it has risen to more than $6 in these two days.

These two coins are also highly concerned by our readers, especially Sushi. After being included in the YFI ecosystem, it has completely turned around, and the recent skyrocketing price has also made many people who were not optimistic about it before. Investors are starting to change their minds.

Many investors have invested in these two coins before, or they got off the car very early, or bought other coins because they were not optimistic about swapping positions. Therefore, these investors will have strong remorse and anxiety when they see the recent trends of these two coins.

In fact, this is a very common phenomenon in the bull market. Everyone will have such experiences and emotions, but once you have such emotions, you must restrain them in time and remind yourself to calm down. Because if this kind of emotion is allowed to develop, if investors do not think rationally, they will probably blindly throw away other varieties in their hands to chase high and buy these projects, and after changing positions in this way, investors will often find that The breed horse I just threw away has risen, but these two coins will not rise but will fall.

At this time, I usually first take a closer look at the projects I hold to see if their fundamentals have changed.

If their fundamentals have not changed, I will not sell the coins I hold at will to chase these popular projects. I believe that with the rotation effect in the bull market, as long as the coins they hold are valuable, they can also usher in their own bright moments.

If the fundamentals of some coins in my hand have deteriorated and the potential is no longer there, then I may consider selling those coins whose fundamentals have deteriorated and consider switching to other coins, but whether to switch to these popular projects depends on their prices Is the valuation too high? If it is, I will not buy it, but will continue to look for coins with lower valuations.

Readers of my articles from last year may have noticed that I also bought LINK at one point, but I sold them all around $8 or so. At that time, I thought that although LINK was the leader in the field of oracle machines, its application had not yet been popularized enough to support its token price, and it was entirely possible that new competitors would appear in this field, so I thought its valuation Sold it all on the high side.

Now let’s look at LINK again. Its leading position in the oracle field should be more stable than last year: on the one hand, it is increasing its cooperation with industry projects; Therefore, looking at its fundamentals now is very good, but I still think how much room there is for future growth based on its current price, and it is worth evaluating carefully.

I remember that after I sold LINK for $8 last year, I switched all of it to Ethereum. At that time, the price of Ethereum was around $300. Now the price of Ethereum is close to 1200, an increase of almost 4 times. The current price of LINK is $21 , an increase of less than three times. So looking back at the practice of throwing away LINK at that time, there was nothing wrong with it.

Now I will continue to pay attention to LINK, but I will not buy it at this price.

A reader once asked me my opinion on Sushi, and I said at that time that if I compare Sushi with UNI, I am more optimistic about UNI. At that time, the biggest reason I was not optimistic about Sushi was that a series of operations by his founder made me think that a project led by such a team had a worrying future.

However, later Sushi was fully taken over and incorporated into the YFI ecosystem. The whole project seemed to be rejuvenated, and it was getting rid of the shadow of the past and emerging from the downturn. Let us wait and see whether it can reach the circle of first-tier exchanges in the future. I'll keep an eye on Sushi, but I won't be buying right now either.