The world is bustling, all for profit; the world is bustling, all for profit! Hello everyone, I am your friend Lao Cui, focusing on digital currency market analysis, striving to convey the most valuable market information to the vast number of coin friends. I welcome everyone's attention and likes, and reject any market smoke screens!

On weekends, there is not much time left for everyone to fantasize. I have talked too much about market trends, today I will analyze the underlying technology with you; many friends are struggling with the choice of spot currencies, often not knowing how to start. Let's compare the data of popular currencies so that you can make better choices. First, let's compare ETH and SOL. We have detailed these two currencies before, but due to the recent market trends, many have lost trust in them. What are their technical strengths? Why does capital choose to invest in Ethereum rather than SOL? From the perspective of processing speed, Ethereum transfers take 10 seconds, and the GAS fees are ridiculously high. Simply put, using ERC20 for transfers will have delays, especially before 2019, when many of you experienced congestion in the channels, with fees reaching 10U. In contrast, the SOL network only requires 1 second for confirmation, and the GAS fees are less than 1 cent.

In terms of speed and fees, SOL can be said to have a complete victory; however, Ethereum's advantages are also extremely strong, with the most complete ecosystem in the crypto world, covering well-known concepts like DeFi, NFT, and DAO. Smart contracts were born from the concept of Ethereum, and you can recognize that its ecosystem construction is unmatched by any other currency. However, there is also a fatal problem: it is too slow, with the mainnet only achieving a processing speed of 15 transactions per second. Even with Layer 2 technology, it barely reaches a few thousand transactions per second. This is good news for platforms; previously, BN, Huobi, and OK would often pull the plug, blaming Ethereum's congestion. The technology supporting early Ethereum is decentralization combined with security. This security is something SOL does not possess, which we will discuss later. Security is also the most important factor for capital involvement. You can recall that between 2022 and 2023, SOL experienced multiple thefts and outages, leading to a significant drop in its price. If no incidents had occurred during that time, SOL might have truly competed with Ethereum now.

Returning to the perspective of SOL, SOL and Ethereum are two extremes, with the former focusing on speed. Therefore, it first employed PoH, or Proof of History, where the underlying logic is that each transaction has a predetermined time for intervention, eliminating the need to queue at nodes and allowing for direct execution. This technology theoretically achieves a peak of 65,000 transactions per second, but this is only theoretical; the current operating speed is around 4,000 transactions per second, with a completion time of just 0.3 seconds and a cost of only 0.0001U. Looking at both sides, in terms of speed, SOL completely outperforms Ethereum, and the GAS fees are also significantly lower. But why does capital favor Ethereum? A processing speed of 15 transactions per second can have a certain impact on capital, especially with large amounts of funds involved. From the perspective of capital, safety remains the top priority. The most critical point is that Ethereum has not experienced any downtime for 15 consecutive years since its inception, while SOL has had multiple outages, which speaks to its security. Additionally, the support from other ecosystems is significant; according to the latest data, Ethereum has over ten thousand projects involved, demonstrating its ability to provide a safety net.

However, everyone needs to remember that the current SOL ecosystem is continuously improving, and project data is in pursuit. This year, many of you may be paying more attention to another coin, BNB. Today's social media also mentioned that Lao Cui's average purchase price is still around 514, and I cleared all holdings when it was just around 900, which may now seem like a smart choice. After Lao Cui exited, the market surged to 1374, and many friends thought exiting was a foolish choice. Lao Cui did not think so; in my view, BNB is a coin that cannot break the 1000 mark, at least at the time of my exit, there was no sign of a Hong Kong license. The ability to list in Hong Kong was unexpected, and I do not regret it. Based on the trend at that time, the returns and risks of BNB were not equal, and exiting was the only choice. For platform tokens, you cannot analyze them from the perspective of underlying technology.

You can think about it: the emergence of Coinbase and stablecoins themselves pose a threat to platforms. The Americans will certainly push their own platforms vigorously. Although BN is currently in the leading position, Trump always demands too much. I do not know how long CZ can hold on; based on Trump's characteristics, the threat to BN is somewhat significant. Platform tokens coexist with the platform; if you believe in this platform, you can invest, but without backend support, it is hard to go far. The license indeed gave BNB a breath of fresh air, but your investment in platform tokens needs to be cautious. No major institution chooses to invest in BNB's ETF. Comparing the technical aspects, you can look at BlackRock's actions. Currently, the BTC ETF has exceeded 110 billion dollars, and the ETH ETF has reached 18 billion dollars, so the only thing BlackRock can do is keep buying.

At the same time, you need to clarify the concept of ETFs: as long as customers buy in, they need to wait for shares to purchase; since the ETF was launched, the stock of BTC on exchanges has evaporated by more than 220,000 coins in the past six months, and ETH has also been bought up. As long as the funds for the ETF continue to flow in, this purchasing form will persist. Therefore, the impact on the spot market is likely to form; without stockpiled spot, it will create a growth state. This point was mentioned by Vitalik earlier: if institutions lock ETH into staking, the protocol will eventually be changed, and decentralization will cease to exist. The current crypto world is no longer a playground for retail investors; instead, it has become a slaughterhouse for giants. Therefore, if you want to judge the market, you must pay close attention to these points, especially the actions of the giants, which are extremely important. As long as BlackRock's staking is approved, they will buy in aggressively. Once the process starts, you just need to keep up with current events.

Lao Cui's summary: Today's article serves to reorganize the underlying logic of Ethereum, SOL, and BNB. At the same time, it provides a preliminary understanding of the movement of funds. For us ordinary people, what we can do at this stage is to believe in the subsequent market. What Lao Cui sees is that there will definitely be another bull market in the future, but there are short-term risks of decline. However, I do not see much downside potential. Unless we encounter another wave of washout before interest rate cuts, it is hard to guess whether the same actions will be repeated by the manipulators. If the platform wants to crash again, it also needs to consider whether the giants will continue to buy. I cannot judge domestic matters; I can only conclude that there is short-term bearishness and long-term bullishness, and this long-term will yield results within a few months. In the latest news, the Federal Reserve may print money again, which may not be unfounded, combined with the end of the balance sheet reduction in December, this is a signal for expansion, and the bull market is not far away. From Lao Cui's perspective, the current position is already low; everyone should seize the opportunity. If you have any questions, just ask, and Lao Cui will reply.

Original creation by WeChat public account: Lao Cui Talks About Coins. For assistance, please contact directly.

Lao Cui's message: Investing is like playing chess; a master can see five, seven, or even more than ten moves ahead, while a novice can only see two or three moves. The master considers the overall situation and strategizes for the big picture, not focusing on individual pieces or territories, aiming for the final victory. The novice, on the other hand, fights for every inch of land, frequently switching between long and short positions, only competing for short-term gains, resulting in frequent entrapment.

This material is for learning reference only and does not constitute trading advice. Trade at your own risk!

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