Recently, the market trend of Solana has provided holders with a heart-wrenching lesson in market psychology. When the market falls, it also falls, but looking closely at the source of this decline, it is simply caused by psychological panic and technical breakdowns, and is not due to any issues with the project itself.



Ironically, just recently, SOL successfully withstood a 6Tbps level DDoS attack - which is equivalent to conducting an extreme stress test, fully validating its technical stability. But what about the market? It instead began to panic and sell off due to some institutions' pessimistic predictions, turning a blind eye to this fundamentally positive news.

This actually reflects a very cruel but common market rule: when an asset has once been questioned for its "reliability" and the technical risks have substantively decreased, market sentiment often lags behind. It will still price this asset as a "problem asset" and continue to offer discounts. This short-term divergence between sentiment and fundamentals indeed creates Alpha opportunities, but it can also lead to significant volatility.

Then the question arises: as an investor, how can one seize such "mispricing" opportunities without being hurt by emotional fluctuations?

One approach is to revisit the thinking of asset allocation. When allocating to high-growth but highly volatile "offensive" assets like SOL, one should also allocate to an extremely stable and reliably valued "defensive" asset. This underlying need for certainty and stability is precisely the significance of decentralized stablecoin assets—they do not participate in market sentiment games, only providing value anchoring. Choosing appropriate stable assets to balance the investment portfolio may be the most pragmatic way to cope with such market fluctuations.
SOL-0.46%
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