WLFI is rising against the trend by 50%, while ETH is being heavily shorted by institutions but may be brewing a reversal?

Question

[Block Rhythm] Liquid Capital founder Yi Lihua recently shared some interesting observations.

WLFI has been quite strong these days, rising 50% despite the overall market not being great. He believes there are three main reasons behind this: the USD1 stablecoin track is inherently promising, the project party has been consistently repurchasing chips in the market, and additionally, the recent rebound in the US stock market has added to the momentum.

On the other hand, ETH's situation is a bit awkward. Research data shows that multiple platforms and institutions are heavily shorting ETH, making November quite tough for it. However, Yi Lihua predicts that after this phase, there might be a short squeeze — after all, the current environment is completely different from four years ago: the popularity of stablecoins has increased, ETF channels have opened up, new narratives such as DAT are also fermenting, and the policy environment is much friendlier than before. In this favorable context, ETH's current price may be severely undervalued.

DeFiGrayling · Accepted Answer

WLFI has taken advantage of the situation this time, buybacks are the way to go, more effective than any promotion.

ETH is currently being pummeled by short positions like it&#39;s charging, waiting for that explosive moment.

Yili Hua&#39;s analysis does have some merit, the stablecoin ecosystem has indeed changed.

If ETH gets through November, it&#39;s To da moon, I&#39;m betting on it.

Institutional shorting is giving us the opportunity to enter a position, just wait a bit longer.

GasGasGasBro · Answer

The 50% rise of WLFI this time is really amazing, the buyback strategy is still ruthless... Speaking of which, with ETH being hammered so hard right now, if a short squeeze really happens, we’ll have to see who can’t hold on first.

GateUser-bd883c58 · Answer

WLFI&#39;s performance this time is truly impressive, with the market being so weak yet still achieving 50%. The power of buybacks seems to be quite effective.

ETH is currently being hit quite hard, but it feels like there might really be an opportunity by the end of the year; the stablecoin ecosystem is indeed much stronger than it was four years ago.

Yi Lihua&#39;s comments about the short squeeze sound a bit optimistic; it all depends on how many short orders the institutions hold.

LiquidityWitch · Answer

WLFI&#39;s performance this time is indeed extraordinary, but to be honest, how long can the buyback last? The stablecoin sector isn&#39;t just relying on it.

As for ETH being shorted, it sounds like institutions are just dumping it. In the end, it will still have to rebound. I believe in a short squeeze market, but when will it happen?