Lost Ethereum? New investment paradigm: TRUMP drives SOL, skips ETH and enters the altcoin season

The well-known Twitter account @milesdeutscher has poured a bucket of cold water on the most hated Ethereum supporters as the Altcoin TRUMP meme coin is experiencing a crazy surge.

He introduced a new model for the stages of cryptocurrency investment, hinting at the changes influenced by market dynamics and political shifts. The incoming Trump administration is expected to create a more crypto-friendly environment, which could impact the stages mentioned in the post, especially considering the support for cryptocurrencies from prominent figures in Trump's circle like Musk. The second stage of the new model mentions Solana (SOL), which has an advantage in the current market environment due to its fast transaction processing speed and low fees.

This image is a visual chart describing the flow of capital and market stages in the cryptocurrency market. It is divided into four main stages (Phase 1 to Phase 4), with different block colors representing them.

Here is an explanation of the content in the chart:

Phase 1: $TRUMP

• Description: Capital begins to flow into a specific cryptocurrency (using $TRUMP as an example here), causing the price to rise rapidly.
• Characteristics: This is the initial stage of the market, usually where a few specific cryptocurrencies start to attract a large amount of investment.

(Originally, this chart's Phase 1 and Phase 2 overlapped phases, referring to ETH, but now they have been changed to SOL. Capital is gradually flowing into SOL, but SOL may not be able to keep up with the growth of BTC completely. Characteristics: SOL's price performance begins to outperform BTC, and capital starts to flow back and forth between the two.)

Phase 2: $SOL

• Description: Capital flows into other large cryptocurrencies (using $SOL to represent Solana here).
• Characteristics: Large cryptocurrencies start to attract a large amount of capital inflow, and the market enters the next wave of growth.

(Originally, this chart had a Phase 3, large-cap coins, which meant that when the coins in Phase 2 became hot enough, the capital would then shift to other large-cap coins; and finally enter the Altseason. But in the new paradigm described, especially with this TRUMP hype, @milesdeutscher believes that there will be no Phase 3, and it will directly enter Phase 4 of the Altseason.)

Phase 4: Altseason

• Description: Capital flows to mid-sized and micro cryptocurrencies, causing the prices of almost all cryptocurrencies to surge significantly, regardless of their fundamentals.
• Characteristics:
  • The prices of large cryptocurrencies reach their peaks.
  • Mid-sized and micro cryptocurrencies (Altcoins) experience a large-scale surge.
  • The market is filled with frenzy, and investors' sentiment is high, with all kinds of tokens (including meme coins) experiencing crazy price spikes.

The Competition between ETH and SOL: Ideological Orientations Corresponding to the Times

In the author's view, the competition between ETH and SOL can be analogized to the opposition between idealism and realism:

• ETH (Ethereum) is a symbol of innovation and decentralization, like the academic circles of the Renaissance, pursuing the purity of technology and idealized values. Ethereum's ecosystem is full of technological innovations, from DeFi (Decentralized Finance) to Non-Fungible Tokens (NFTs), all of which were initiated by Ethereum. However, the reality is that in a market dominated by interests, Ethereum's ideals are often challenged. Vitalik's recent public statement expressed that "Ethereum will not dominate the direction, but support developers' free development", which may be to address the pressure from the DeFi community, and also reveals the tension between ideals and reality within Ethereum.

• SOL (Solana), on the other hand, represents a kind of realism, like the entrepreneurs of the Industrial Revolution, focusing more on efficiency, speed, and the rapid commercialization of applications. Solana's ecosystem is clearly driven by the domestic development community and commercial interests in the United States, and its flexibility and high performance (such as high TPS) have attracted a large amount of capital and commercial projects. Furthermore, Solana's development is in line with the current global political environment, especially the trend of anti-globalization and American protectionism, making it more competitive. Recently, the meme coin pushed by the Trump team has further reflected the connection between Solana and American political and commercial forces.

Overall,

• ETH remains the main stronghold of innovative technology, attracting developers and businesses who want to push the boundaries of blockchain applications.
• While the SOL ecosystem is more inclined towards rapid expansion, especially in an environment with fewer restrictions and higher freedom, driven by market speculation and commercial interests, Solana may achieve greater growth this year.