Asset Rotation in the Next Cycle: Zhu Su's Analytical Perspective

Zhu Su, the founder of Three Arrows Capital, recently presented a fascinating analytical framework for understanding how digital assets may evolve in upcoming market cycles. His reasoning is based on historical patterns and current capital migration trends across different segments of the crypto ecosystem, providing an important lens for investors seeking to anticipate trends.

Comparative Analysis Methodology

According to Odaily, Zhu Su proposes a model of analysis based on historical correlations. The core premise is simple but powerful: observing how previous assets performed in past cycles can reveal indicators about the trajectory of emerging tokens in the next period.

This type of comparative analysis functions as a mirror of time, allowing market participants to identify recurring patterns. Each cycle tends to replicate similar structures, but with different protagonists. It is in this transition that the greatest opportunities and challenges arise.

Expected Trajectory for Rising Altcoins

According to Zhu Su’s perspective, the rotation mapping follows a clear logic: ETH may follow the path BTC took in the previous cycle; SOL may replicate ETH’s historical trajectory; HYPE tends to evolve similarly to SOL from the last cycle; and finally, LIT may follow the pattern that SUI exhibited in earlier periods.

This revealing sequence suggests that the market operates in waves of adoption, where established assets pave the way for emerging alternatives. Each “generation” of tokens inherits characteristics and dynamics from the previous generation, but with significant variations.

What to Expect in the Next Market Cycle

Zhu Su’s view emphasizes the importance of recognizing patterns without falling into the trap of assuming identical outcomes. While history offers valuable clues, factors such as technological innovation, institutional adoption, and regulatory dynamics can introduce significant deviations. The challenge for market participants is to understand these cyclical patterns while maintaining flexibility to adapt to new scenarios. This is the core of the forward-looking analysis Zhu Su proposes to navigate the upcoming period of transformation in the crypto market.