After Solana's surge, where will the next plate wheel be?

作者：Subhashish C.

编译:比推BitpushNews Mary Liu

This article will explore an in-depth analysis of the latest Solana rally and the next potential “wealth code”.

Note: This article will not discuss buying Solana or which tokens are in the Solana ecosystem, which is currently highly saturated, but will cover what I think will happen to the next sector rotation in the market.

This involves understanding where Solana’s current speculators are profiting, especially those in the early stages of the ecosystem, and where they might turn next.

I believe this is a much more engaging and critical way to play, so that’s the point, and everything covered in this article is geared towards short- to medium-term volatility opportunities. This article will be especially relevant if you are worried about FOMO and plan to hold any positions due to the current price spike.

First of all, to be clear, I remain bullish on Solana (SOL) for the long term, regardless of short-term volatility.

Solana拉涨

First, let’s talk about Solana’s current position. Now seems like a good time to start taking profits. The chart shows an increase of about 4% even on the 12-hour time frame. If this momentum continues, we could see up to 50% gains in a single day, which is not sustainable.

! [After Solana soars, where will the next plate wheel be driven?] (https://img-cdn.gateio.im/webp-social/moments-69a80767fe-3c94356ecc-dd1a6f-cd5cc0.webp)

If I’m still holding Solana at this point, I’m sure I’ll take profits, at least wait for a pullback before buying, and the risk-reward ratio doesn’t seem to be favorable anymore.

The State of Solana: Is It Time to Invest?

Do you have FOMO?

While Solana has been performing well, it’s worth noting that I wouldn’t tolerate a one-sided bet on it in the short term, especially when compared to other opportunities. Similar to when Chainlink recently rose to $15, I didn’t find it particularly attractive due to its aggressive growth.

Solana has been consolidating since November 1st and I’m keeping a close eye on whether it will see a breakout. When it broke out on November 7th, I took profits at over $50 and thought it was good enough.

What’s happening to the Solana ecosystem?

Many people on Twitter are talking about the significant benefits of the Solana ecosystem.

We’ll verify this by looking at the various projects within the Solana ecosystem on CoinGecko. Most of them have increased in value substantially, and this excitement is driving liquidity within the ecosystem.

! [After Solana soars, where will the next plate wheel be driven?] (https://img-cdn.gateio.im/webp-social/moments-69a80767fe-9aac42364d-dd1a6f-cd5cc0.webp)

The SOL ecosystem has made progress in the last 7 days

The surge in the Solana ecosystem is not limited to major tokens, but also includes altcoins like Bonk and Radium, which have all made significant gains. I have increased them in this month and last month’s altcoin positions, and those who buy soon will make good profits in a short period of time.

So, should you buy now? The answer is no. Solana and ecosystem tokens are about to undergo adjustments, after which you can consider opening a position. Currently, it is largely driven by speculative trading rather than long-term growth potential.

This pattern is consistent with past market behavior and suggests that the current focus on the Solana ecosystem will soon shift.

Where does the hot money go next?

At this stage of a bull market, it is common for funds to rotate to different ecosystems. In the past, we have witnessed similar rotations between Solana, Luna, and Avalanche (AVAX) during the peak of the bull market in late 2021 and before.

This happens because the crypto market is driven by sentiment and the search for on-chain opportunities by traders and profit-seekers. When one ecosystem becomes overbought, traders move on to the next.

In the current market, Solana is the focus of attention. However, I think it’s time to focus on the next potential hot spot.

These shifts can happen quickly, so it’s crucial to stay ahead of the curve.

**As a result, liquidity will flow into the Polygon, Avalanche, and Arbitrum ecosystems. **

! [After Solana soars, where will the next plate wheel be driven?] (https://img-cdn.gateio.im/webp-social/moments-69a80767fe-fabd87016e-dd1a6f-cd5cc0.webp)

I trade Avalanche at around $14.50 with a stop loss price of $12 and a take profit target of at least $20. Both Avalanche and Solana are considered Ethereum killers, and historically, during bull runs, funds have flowed between these ecosystems.

In addition to Avalanche, I keep a close eye on the Arbitrum ecosystem. Arbitrum is Ethereum’s L2 solution, and it has an incentive program that attracts volatile traders. I also traded with Arbitrum because I believe it has the potential for significant growth in the coming week.

! [After Solana soars, where will the next plate wheel be driven?] (https://img-cdn.gateio.im/webp-social/moments-69a80767fe-6327f63065-dd1a6f-cd5cc0.webp)

! [After Solana soars, where will the next plate wheel be driven?] (https://img-cdn.gateio.im/webp-social/moments-69a80767fe-5a61aa1796-dd1a6f-cd5cc0.webp)

Focus on top projects in these ecosystems to maximize investment opportunities.

Case in point: AVAX and Arbitrum (and possibly MATIC) and tokens that run exclusively on these networks will be the emerging focus this week and next.

If we want to take a deeper look at these ecosystems, we can look at specific altcoins in them. In the Avalanche ecosystem, I am bullish on the potential of GMX, Radiant Capital, Benqi Protocol, Trader Joe, and Camelot.

These projects are either decentralized exchanges or lending platforms built specifically for the Avalanche and Arbitrum ecosystems. When liquidity flows into the ecosystem, they have the potential to perform well. Arbitrum is attractive because of its popularity among DeFi traders, and incentive programs are boosting yields.

! [After Solana soars, where will the next plate wheel be driven?] (https://img-cdn.gateio.im/webp-social/moments-69a80767fe-7d9026e383-dd1a6f-cd5cc0.webp)

The on-chain token, AVAX, is sorted by TVL from highest to lowest

Despite the overall growth of AVAX, these particular platforms are still undervalued, so it is possible to reap significant returns.

Similarly, in the Arbitrum ecosystem, Ethereum-related platforms such as GMX and Radiant Capital are poised to break through.

Polygon？

In addition to AVAX and Arbitrum, Polygon (MATIC) has also emerged as a contender, notably as it is about to upgrade to Polygon 2.0 and rebrand its MATIC token to POL. Polygon underwent a token upgrade to become the Polygon (Pol) token with new tokenomics. While Polygon’s ecosystem isn’t primarily DeFi-focused, rebranding and token upgrades will be in the spotlight.

It’s important to get the rhythm right, and the rotation of ecosystem plates only happens a few times. Usually, by the third occurrence, the trend disappears completely.

This is because there is still a lot of enthusiasm for the Solana ecosystem and a willingness to invest in Solana altcoins. By the time these people switched to AVAX, they had already seen the Solana ecosystem rise and fall, so they wanted to speed up the rotation. They invest in the top AVAX altcoins and are likely to quickly exit and move on to the next chain, whether it’s Arbitrum or Polygon, once they see gains.

As people become more accustomed to this way of trading, the process becomes faster. That’s why I don’t recommend going into ecosystems with very small plates.

In the hot spot rotation, always being one step ahead is essential to maximize opportunities and profits.