Recently, many people have been struggling with the trend of SOL, which is indeed a bit uncomfortable. When it falls, the decline is sharp; when it rebounds, it seems weak and feeble. The former "Ethereum killer" label now sounds a bit awkward. Based on fundamental analysis, the price should stay above 136.5, but reality always proves us wrong. I can understand the frustration of friends holding it.
When the overall market trends downward, SOL often leads the decline; when market rebound signals appear, it remains relatively inactive. Ultimately, the most painful thing is the shrinking account balance.
But just complaining won't change anything. The real question to consider is: when your assets are underperforming continuously, should you cut losses decisively or hold on? More importantly—where should the funds freed up by stop-loss or the idle money you plan to invest go?
Switching directly to another small-cap coin? That risk isn't necessarily smaller; it might just be moving from one pit to another. At such times, a different approach is needed: instead of waiting for a single coin to rise, let the assets generate returns themselves.
Recently, my focus has shifted to yield-generating infrastructure. Rather than calling them new concepts, they are more like practical implementations of DeFi—such as protocols that focus on liquidity staking and stablecoin yield farming.
Simply put, if you hold ETH or other mainstream staked assets, you can collateralize them into these protocols and then borrow stablecoins pegged to the dollar. The benefits are straightforward: your main assets continue to generate income within the protocol, and the borrowed stablecoins can participate in other strategies for profit, effectively working on two fronts.
The advantage of this model is that it doesn't rely on the price movements of a single coin but is driven by protocol mechanisms and market demand to generate yields. No matter how the market fluctuates, this system can keep running. For investors tired of being tormented by the performance of a single coin, it can serve as a good buffer.