In the face of the “surge” of coins, how to layout the market?

Two of the DeFi tokens that have been particularly notable recently are Link and Sushi. The reason for the attention is that the price has skyrocketed.

As far as I can remember Link was hovering around $10+ for a long time and has surpassed $20 in the last two days; Sushi was hovering around $1 for a long time and has risen to over $6 in the last two days.

These two coins are also of high interest to our readers, especially Sushi, which has completely turned around after being included in the YFI ecosystem, and the recent spike in price has made many investors who were previously not optimistic about it start to change their views.

There are many investors who had invested in these two coins and either got off early or changed their positions to buy other coins because they were not optimistic. Therefore, these investors will have strong remorse and anxiety when they see the recent trend of these two coins.

In fact, this is a very common phenomenon in the bull market, everyone will have this experience and this kind of emotion, but once you have this emotion should restrain this emotion in time and remind yourself to calm down. If you let this emotion go on, if you don’t think rationally, you will probably blindly throw away your other coins to buy them, and after you change your position, you will find that the coins you just threw away have gone up, and the two coins will not only go up but also go down.

At this point in time I would usually first take a closer look at the projects I hold to see if their fundamentals have changed.

If their fundamentals haven’t changed, I won’t arbitrarily sell my coin holdings to go after these popular projects. I believe that with the rotation effect in the bull market, as long as the coins you hold are valuable, they can also usher in their own moment of glory.

If the fundamentals of some coins in my hands have deteriorated and the potential is no longer there, then I may consider selling those coins with deteriorating fundamentals and consider switching to other coins, but whether to switch to these popular projects, it depends on whether their prices are too high in valuation, if so I will not buy and will continue to look for coins with lower valuations.

Readers who read my article last year may have noticed that I did buy LINK at one point, but I sold them all at around $8. At the time I thought LINK, despite being the leader in the prophecy machine space, was not yet popular enough to justify its token price, and there was every chance that new competitors would emerge in the space, so I sold them all because I thought it was overvalued.

Looking at LINK now, its position as the leader in the prophecy machine space should be more solid than last year: on the one hand, it is increasing its cooperation with projects in the industry; on the other hand, its competitors don’t seem to have come up with any decent moves yet. So its fundamentals are very good now, but I still think it’s worth evaluating with caution how much upside it has at its current price.

I remember that after I sold LINK at $8 last year, I exchanged it all for Ether, which was around $300 at the time, and now the price of Ether is close to 1200, up almost 4 times, while LINK is now at $21, up less than 3 times. So in retrospect, there was nothing wrong with dumping LINK at that time.

I will keep an eye on LINK now, but will not buy at this price.

I was asked by a reader what I thought of Sushi, and I made it clear that if I were to compare Sushi to UNI, I would be more bullish on UNI, and that the biggest reason I was not bullish on Sushi was because of the actions of its founders, which made me think that a project led by such a team would have a worrying future.

However, Sushi has since been fully taken over and incorporated into the YFI ecosystem, and the whole project seems to be rejuvenated and is emerging from its former shadow and slump. Let’s wait and see if it can make it to the top tier of exchanges in the future. I will keep an eye on Sushi, but I won’t buy it now either.