Analysis of the Song of Ice and Fire in the Encryption Market

 

Summary: Genius or Psychotic

Foreword: The recent PEPE has been on the hot topic list, which has changed the “tepid” market status and rekindled the dream of users to get rich overnight with MEME coins. But MEME coins are a very dangerous cryptocurrency because they originate from Internet culture. In other words, price action depends on whether MEMEcoin can remain relevant by driving hype or support from the community, which itself lacks fundamental value.

On the other hand, the launch of the SUI mainnet has opened a new chapter for the narrative of the public chain. Judging from the popularity of the market, it seems that MEME has stolen the limelight, but its ever-increasing public chain ecology also shows the development potential of SUI. On the one hand, there is a frenzy of MEME coins, and on the other hand, there is a low tide of “falling into silence” in the public chain. It seems that the two planes of ice and fire, but what traps and business opportunities are hidden?

Fire: dance on the tip of the knife

In April, the PEPE coin whose logo was based on the famous Internet IP “Sad Frog” suddenly became popular, and it rose by 270,000 times in half a month. Following PEPE, a large number of “earth dog” MEME coins have also appeared one after another. Speculators feel the huge price fluctuations in the fast-forward and fast-out, and the thickness of the wallet also changes together. There is a big wave of animal coins in 2021.

In the meme craze in 2021, Elon Musk can be called the number one contributor. He once shouted on Twitter to fly DOGE, SHIB, FLOKI and other MEME coins. Every time he mentioned it, the currency price rose to varying degrees, creating DOGE 400 times , SHIB 100,000 times, Floki tens of thousands of times the myth of wealth creation.

“Earth Dog” changed to “Golden Dog”, which is a compliment to meme coins. At present, the strong traffic and market enthusiasm have naturally attracted many “earth dogs” to follow suit, including the Hasaki (HAHA) coin, which is derived from the skill voice of the game character “Yasuo” in “League of Legends”, and originated from the panda head spoof expression package. POGAI tokens, WOJAK tokens derived from the familiar expression pack of depressed bald men with raised forehead lines, and Ladys, which Musk has recently “shouted orders”.

At the same time, this year’s wave of speculation has also caught up with the BRC-20 token standard developed by the Bitcoin network in March. Many projects have begun to issue MEME coins on the Bitcoin network to give this “earth dog” speculation The heat provided another excuse.

Different from the narrative style of MEME coins, BRC20 is more like a narrative of Bitcoin value capture. But for Bitcoin fundamentalists, Bitcoin without ecology is more imaginative and has a higher value.

Ice: the dark power under the momentum

If the hottest public chain last year was Aptos, the hottest public chain in the first half of this year is Sui. Although SUI has repeatedly shouted “There is no airdrop plan” since last year, there are still a large number of users who “do not give up” and continue to ambush the ecological airdrop interactively.

Therefore, on April 15, the public chain Sui confirmed that it will not airdrop in the end, but will conduct SUI token sales directly through the exchange. OKX, KuCoin and ByBit have successively announced the sale of SUI tokens. Users need to meet specific whitelist requirements before they can subscribe. The basic subscription price is 1 SUI = 0.1 US dollars, and those who meet the whitelist of Sui Foundation contributors can get a minimum subscription of 0.03 US dollars price. After the launch of the Sui mainnet, the price of the SUI currency once soared to $2, an increase of up to 2000%.

However, because the official finally implemented the “no airdrop” move, some people in the community were dissatisfied and shouted “no airdrop = no community”, thinking that there is no airdrop for early users, testnet participants, and those who waste time and energy. Let the project suffer.

However, for the public chain Sui, its market enthusiasm has not cooled down. Even after the meme craze attracted a wave of funds, Sui’s performance is still very strong. Within a few hours after the Sui mainnet was launched, the SUI transaction volume exceeded 700 million US dollars, and half of the transactions occurred on Binance’s SUI/USDT trading pair.

According to CoinGecko data, SUI has fallen back to trade at $1.43, with a market cap of $760 million and a fully diluted valuation (FDV) of $14.4 billion.

In comparison, SUI’s main competitor, Aptos’ native token, APT, has a market capitalization of about $1.8 billion, or a fully diluted valuation of $10.2 billion.

As a high-performance Layer 1 public chain, Sui adopts the Proof of Stake (PoS) consensus mechanism, and both Aptos and Aptos use the Move programming language created by Meta (formerly Facebook) to drive applications on the blockchain.

With the launch of the mainnet, Sui’s development network and test network have supported more than 200 projects, including a series of categories such as games, finance, law, and business. Devnet’s validator set consists of just four validators, all of which are run by Sui’s core contributor and protocol designer, Mysten Labs, as it prioritizes being a secure execution environment for the project, putting pressure on application development test.

Sui’s testnet was built in batches, testing various aspects of the protocol. Testnet Wave 1 is designed as a secure environment for validators to test the operation of Sui nodes or machines. Testnet Wave 2 expands participation to application builders, end users, and delegates, while testing storage funds, Sui’s DPoS consensus mechanism, and gas mechanism. In late March 2023, Sui announced its permanent testnet to test sponsorship transactions, zero-knowledge proofs, and other future developments.

Although Sui’s currency price has not seen a large increase at present, its ecological enthusiasm continues. This style of pursuing long-term development and value capture is in line with the narrative style of the public chain. For example, Solana’s high-performance story, Cosmos and Polkadot’s cross-chain narrative, and PlugChain and ChainLink’s value capture in the field of decentralized oracles. As an aside, compared to ChainLink, which only focuses on the oracle field, PlugChain is more inclusive and open, effectively combining cross-chain technology, oracle, and on-chain AI, so that “data on the blockchain “It is more valuable and more conducive to the intelligent development of ecology.

For the public chain, it is not seeking short-term skyrocketing and plummeting, but more like a step-by-step exploration of future fields. In the past big bull market, the growth rate of public chain projects is often a hundred times or even a thousand times higher than that of institutional seed rounds, and the ecological projects of public chains can also run many excellent projects, so the public chain is equivalent to a golden mountain , As long as you participate in the early stage investment, you can almost participate in the following high-quality ecological project quotas, as long as you are interested.

At the same time, the life cycle of public chain projects is relatively short, and the benefits that can be maintained will be longer. After all, most early projects will have a lock-in mechanism. Many counterfeit online projects are almost a wave of flow without follow-up, while public chain projects can survive A bull and bear, and there is a chance to create higher value.

In the public chain track, it seems that under the ice, there is actually a fire of hope hidden. Maybe there is only a bull market opportunity, or an ecological flash point.

Conclusion: Whether it is the MEME currency or the public chain, they are only a very small number of projects left after the big waves washed away the sand, and the consensus of the encryption community has become their value support. However, most projects end in death. After the popularity subsides, we will know who is “real gold” and who is “stone”. In the world of blockchain, there is never a lack of narrative, what is always lacking are those who have been really doing things!