The market has finally made a slight rebound, and Ethereum is trying to stabilize at $3000. Altcoins are also performing well today, basically recovering the losses from the previous days. I don't know if you have noticed, but there have been particularly many short-term 'door painting' recently, with pin bars up and down—this is actually a clear signal of increasing volatility, often a prelude to a major market movement.
At this point in time, Christmas is approaching, and in previous years, Western funds tend to withdraw, making the market vulnerable to declines. But this year it seems to have dropped early? Although we still have our Spring Festival ahead, it might be a bit pressured to enter a bull market directly in the next month or two, but the market has been too quiet for too long, I feel that after the increase in volatility, the possibility of a push upwards is even greater.
Here's something interesting: the fundamental AI model for the DeFi project I’m tinkering with has just started running its first version. Why am I doing this? Because my previous grid orders for UNI and MET were all trapped! After much pain, I want to find some solid fundamental basis. This model does not look at short-term trends but focuses on uncovering the intrinsic value of projects. I plan to use it to select some coins in the DeFi sector, like PENDLE, for continued investment.
Take UNI for example; since it surged to $10, it has fallen sharply, but the real buyback and burn vote is about to be finalized. The previous ups and downs were market sentiment; now it is time to test the real strength of buying back with actual funds.
However, just as my AI model was working hard to filter 'value coins', I discovered a common and fatal flaw in the current DeFi ecosystem: almost all models analyze token economics, team backgrounds, income data... yet very few have an indicator that can truly measure a project's 'stability' and 'survivability' in extreme market conditions.
In other words, we are all looking for coins that can rise, but we rarely ask: When the market hits a wall again and black swans come, which projects have the ability to navigate the cycle rather than be knocked down for good?
This thinking led me to focus on a track often overlooked by 'value investors': decentralized stablecoins. Because stability itself is a rare value, especially in a cryptocurrency world where volatility has become the norm.
And this is precisely the key to @usddio and its core product #USDD entering my field of vision. The principle of 'seeing trust through stability' (#USDD以稳见信) advocated by USDD fills the gap missing in most DeFi models: how to build ultimate trust and stability without relying on centralized commitments within a decentralized framework.
My AI model may be able to analyze a token's growth potential, but USDD addresses a deeper issue: it provides a reliable value scale and settlement basis for the entire DeFi ecosystem. It establishes 'credit' on a mathematically verifiable foundation on-chain through over-collateralization and transparent reserves, rather than the beautiful prophecies in white papers.
So, when I use the model to select the next potential DeFi token, I ask: Is this project built on a stable underlying asset like USDD? Can it protect user assets amid volatility? A healthy DeFi ecosystem cannot only have an 'engine' chasing profits; it must also have a 'ballast' to withstand risks.
Perhaps the true value discovery in the next bull market is not just about finding skyrocketing altcoins but also identifying those foundational components that can reduce systemic risk and enhance the overall resilience of the ecosystem. And #USDD is doing exactly that.
Do you already have such a 'ballast' in your investment portfolio? Or have all your chips been placed on 'warriors' that can only charge forward but cannot defend?
