Faced with the "skyrocketing" price of currencies, how should we plan for the future market?

Among DeFi tokens, two have attracted much attention recently, one is Link and the other is Sushi. The reason for this is the skyrocketing prices.

In my impression, Link has been hovering around $10 for a long time, but in the past two days it has exceeded $20; Sushi has been hovering around $1 for a long time, but in the past two days it has risen to more than $6.

These two coins are also of high concern among our readers, especially Sushi. After being incorporated into the YFI ecosystem, it has completely made a comeback. The recent surge in prices has also caused many investors who were previously pessimistic about it to change their views.

Many investors have invested in these two coins, but either got out of the market early or bought other coins because they were not optimistic about the future. Therefore, these investors will feel strong regret and anxiety when seeing the recent trends of these two coins.

In fact, this is a very common phenomenon in the bull market. Everyone will have such experiences and such emotions, but once such emotions arise, they must be restrained in time and reminded to calm down. Because if such emotions are allowed to develop, investors will likely blindly sell other products in their hands and buy these projects at high prices if they do not think rationally. After such a change of positions, investors will often find that the products they just sold have risen, while these two coins will not only not rise but fall.

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

If their fundamentals have not changed, I will not sell the coins I hold to chase these popular projects. I believe that with the rotation effect in the bull market, as long as the coins I hold are valuable, they will also have their own highlight moments.

If the fundamentals of some coins I hold have deteriorated and their potential is gone, then I might consider selling those coins with deteriorated fundamentals and switching to other coins. However, whether to switch to these popular projects depends on whether their prices are too high. If so, I will not buy them, but will continue to look for coins with lower valuations.

Readers who read my article last year may have noticed that I also bought LINK, but I sold all of them at around $8. At that time, I thought that although LINK was the leader in the oracle field, its application was not yet popular enough to support the price of its token, and it was entirely possible that new competitors would emerge in this field, so I thought its valuation was too high and sold all of them.

Now let's look at LINK again. Its leading position in the oracle field should be more stable than last year: on the one hand, it is increasing its cooperation with projects in the industry; on the other hand, its competitors do not seem to have made any decent moves. Therefore, its fundamentals are very good now, but I still think that it is worth careful evaluation to see how much room for growth it has at its current price.

I remember that after I sold LINK at $8 last year, I exchanged all of it for Ethereum. At that time, the price of Ethereum was around $300. Now the price of Ethereum is close to $1,200, which is almost a 4-fold increase, while the current price of LINK is $21, which is less than a 3-fold increase. So looking back, there was nothing wrong with selling LINK at that time.

I will continue to monitor LINK for now, but will not buy at this price.

A reader once asked me what I think of Sushi, and I said at the time that if I compare Sushi with UNI, I am more optimistic about UNI. The biggest reason why I was not optimistic about Sushi at the time was that a series of actions by its founder made me think that a project led by such a team would have a worrying future.

However, Sushi was later fully taken over and incorporated into the YFI ecosystem. The entire project seems to be rejuvenated and is getting out of the shadow of the past and out of the downturn. Let us wait and see whether it can rush into the circle of first-tier exchanges in the future. I will pay attention to Sushi, but I will not buy it now.