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Binance Launchpool's latest project Renzo issued a liquid re-collateralized token ezETH, which was decoupled from ETH this morning due to insufficient liquidity and the liquidation of many leveraged ezETH positions. The price fell to as low as 0.2132 ETH.
However, under the halo of Binance and re-staking, market liquidity quickly took the opportunity to intervene and pull back the price.
Many friends buy the dips and made a lot of profit. This wave really made the on-chain lending play out clearly. The selling pressure of the airdrop directly blew up the lending leverage, and they could only sell ezeth to cover their positions.
The core reason is that the Renzo airdrop rules are relatively bad this time. 250,000 users who deposited a total of US$3.5 billion in ETH for 6 months were allocated an airdrop share of 5% of the total supply, and half of them had to be locked for six months.
This means that users who take the risk to participate in the points activity will initially receive the same tradable shares as users who deposit risk-free for seven days on Binance Launchpool.
Therefore, many large investors were dissatisfied and sold directly, resulting in depegging. This time, thanks to Binance Launchpool, the liquidity was quickly pulled back! This saved the risk, although there was no large-scale capital flight. It is estimated that some of the friends who have revolving loans will be killed.
A brutal harvest of on-chain leveraged nesting mining, the maximum decoupling of ezETH and ETH reached 20% in a short period of time, resulting in large investors who greedily leveraged to mine renzo points being liquidated in succession.
If stable assets cannot maintain their stability, then the most basic risk aversion will be lost and the project will be meaningless.
So many friends asked me how Renzo is, I just want to say run! The garbage project is listed on Binance just to let their own insider trading run away!
The second wave of AI sector is about to start
According to insiders, GPT5 will be released in May or June this year and will be available in the market in August.
The first wave of AI sector:
wld5.6: From the end of October 2023 to the peak, it increased 8 times
arkm2.31: Because Ultraman Investment came from behind, it also increased by about 10 times
AI Coin 1.81: Launched in January, lacks a wash-out phase, and has more than doubled
AIdoge: A meme coin with AI concept, a project of Wang Dayou, which also increased seven or eight times to its peak in October (compared with other AI concept-related coins mentioned above, the depth is poor, and the fluctuation will be more exaggerated)
The market will react in advance to the expectation of GPT5. As the biggest core narrative of this bull market, especially in the second half of the bull market, the liquidity of the cottage will gradually increase. From the perspective of sentiment, the second wave should be more fierce. Therefore, the above coins are also worth paying attention to.
This wave of Bitcoin's pullback will only leave it with a few weeks of volatility. It is highly likely that you will not be able to see a new low, and it will not be easy for you to get chips at a low price.
The reason is that the market will fully price in. That is, stocks that are favored by everyone may not necessarily have a very large increase.
1) Those that have certain market recognition but are not favored by the entire population are the focus of research, so the potential returns are high and the risks are low.
2) The sector with low market popularity, as a mini warehouse lottery sector 5 Although it is very pleasant to cross margin a sector, you may also miss the entire bull market, which is not recommended due to the high risk. It is recommended to use the method of concentration + limited quantity. Divide into several key points and secondary points. The overall control is within one number. There are three situations of sector speculation
1) Deterministic major events , such as the Shanghai upgrade leading to the hype of LIDO and SSV, and the Arbitrum airdrop causing the rise of its ecological projects.
2) Sudden events . For example, the sudden popularity of chatgpt triggered the explosion of the AI sector. Similarly, the release of Sora also triggered a wave of increases. For example, in the second half of 2021, the popularity of the metaverse triggered a craze in the crypto GameFi.
3) After a certain coin explodes, it becomes the leader, causing the projects in its sector to become popular.
The hype of a sector is uncertain most of the time, which is why we have to wait for the wind to come in a bull market. Because the time of the hype cannot be determined. Only the first type of major event is relatively certain.
But its disadvantage is that due to its strong certainty, the increase you can participate in may not be very large. That's because there are always many people who will plan ahead.
The most typical example is this year's Cancun upgrade, where the growth of arb and OP lags behind other currencies.
In the bull market, there are two strategies
The first type: All assets are heavily invested in certain sectors. All you need to do is wait for the bull market to come. The advantage is that the operation is simple, so it is suitable for most people and those who are busy with their daily work.
The disadvantage is: you need to hold on to it. Holding on to it is a test of human nature. Especially when you see coins everywhere that are making people rich, but your own coins are standing still.
I recommend 2 to 4 specific sectors. If you want to have only one, that's fine, but it requires a lot of personal judgment. Too many sectors is risky and not recommended.
The second type: part of the position is hidden , and part of the position is opened when the sector is hyped. The advantage of the position is that it can be advanced or retreated, which is more flexible.
However, the disadvantage is that you need to be more sensitive to the market, spend more experience, and always focus on the market.
