Azam Ali Baltistani

Crypto markets love simple narratives. Capital flows into whatever chain looks fastest, whatever ecosystem feels hottest, whatever ticker is moving. But every few years, someone steps back and points out that the real rotation is happening somewhere else entirely.
That’s what ElonTrades did in a recent post on X.
ElonTrades, known for calling Solana early when it traded below $1, shared a new thesis that challenges one of the biggest assumptions in the space: that institutional capital will eventually settle on the major public blockchains.
His view is blunt. The next rotation may not be Ethereum versus Solana. It may be public chains versus private infrastructure.
The Solana Call That Built His Reputation
ElonTrades reminded followers that his original Solana thesis back in 2020 was straightforward: Ethereum would not scale fast enough, and users would migrate toward chains built for speed and smooth execution.
That played out. Solana grew into one of the most active retail ecosystems in crypto, driven by low fees, fast transactions, and an integrated user experience that many traders prefer over fragmented Layer 2 setups.
But his 2026 view is very different.
“L2s Were a Band-Aid”
One of the sharpest parts of the thread was his critique of Ethereum’s Layer 2 landscape.
ElonTrades argued that L2s solved one problem but created several others:
Liquidity fragmentation
Bridging risk
UX complexity
A confusing multi-chain experience
Instead of one unified network, users now face a maze of rollups, bridges, wrapped assets, and shifting liquidity pools. For retail, that often pushes activity toward chains that feel simpler and more seamless.
I Called Solana Below $1. Here’s Where I Think Capital Flows NextToday I still think L2s are a band-aid that created more problems than they solved — liquidity fragmentation, bridging risk and UX complexity that pushes users toward integrated chains like Solana.But… pic.twitter.com/uxcnN1VB3d
— ElonTrades (@ElonTrades) February 4, 2026
In his words, integrated chains like Solana benefit from that reality.
Institutions Aren’t Choosing Solana Either
Here’s where his thesis becomes more controversial.
ElonTrades does not believe institutions are picking Solana as the endgame. In fact, he thinks they are not choosing any public chain at all.
His argument is that traditional finance has looked at the full landscape (Ethereum, L2s, Solana) and decided none of it meets core institutional requirements:
Privacy
Permissioning
Regulatory compliance
Control over counterparties
Instead of adapting to public crypto infrastructure, institutions are building parallel systems from scratch.
Read also: XRP Is Bleeding Fast, Could Get Ugly If Price Crosses This Line
The Canton Network Angle
ElonTrades pointed directly to the Canton Network as the clearest example of this shift.
Canton is designed for financial institutions that want blockchain-style settlement and tokenization, but within a framework that allows privacy and permissioned access.
The implication is simple: the largest pools of capital may not flow into Ethereum or Solana at all. They may flow into purpose-built private rails that never touch retail ecosystems.
That would represent a major structural change in how people think about adoption.
The L2 Ecosystem Gets “Stranded”
His most striking conclusion is that Layer 2s end up stuck in the middle.
Too fragmented for retail users who want simplicity.Too open and permissionless for institutions that need compliance.
If that plays out, the crypto landscape could split into two worlds:
Retail speculation consolidating on the best UX chain
Institutional tokenization happening on private networks
Public L2s would struggle to dominate either lane. ElonTrades is talking about infrastructure gravity.
Retail flows chase usability and liquidity.Institutional flows chase regulation, privacy, and control.
If institutions truly build their own rails, the biggest winners in crypto may not be the chains people expect. The next rotation would not be “ETH to SOL.” It would be “public to private.”
Read also: Bitcoin (BTC) Is Still Going Down, and the Real Panic Hasn’t Even Started Yet
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The post Analyst Who Called Solana at $1 Predicts the Next Capital Rotation Will Shock Crypto appeared first on CaptainAltcoin.
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Following Sunday's market crash, Bitcoin's derivatives market flashed an important signal: perpetual funding rates briefly turned negative. This reflects a phase of aggressive deleveraging, where the balance of payments temporarily shifts in favor of longs, making it more expensive to hold shorts. In this context, negative funding indicates not a change in market regime, but rather a process of forced liquidation of over-leveraged positions.
The key point is that negative funding was short-lived, lasting only two days before returning to positive territory today. This means the positioning skew toward shorts did not persist, and the derivatives market has returned to a more neutral state.
Practically, this reads as follows: if funding turns positive and open interest rises simultaneously, it signals new longs entering the market and the formation of a directional move. However, if funding turns positive without OI expansion, it more likely indicates short covering and profit-taking rather than an influx of new aggressive demand.
Conclusion:
The brief dip into negative funding and its quick return to positive territory point to a localized leverage flush, not the formation of sustained bearish pressure. Until rising funding is confirmed by expanding open interest, the base case remains consolidation and range-bound price action. A directional impulse will only emerge with a synchronized increase in both Funding Rate and Open Interest.
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From losing sleep to earning a million a month: My 'foolish method' works.
In the world of cryptocurrency trading, I went from losing sleep over my losses to now earning a stable million a month. It's not due to talent or luck, but rather a set of 'extremely simple' methods—easy to implement and particularly effective.
1. Capital Iron Rule: To make money, first protect your principal
No strategy can survive a single liquidation; it’s all for nothing. My iron rules are three: diversify your positions, with a principal of 100,000, only risk 10,000 per trial, and never exceed 20% total exposure; set fixed stop-losses, exit immediately if a single trade loses 2%, without hesitation or holding; avoid high leverage, which is completely prohibited for beginners, and even experienced traders should not exceed 10% leverage, as this alone can avoid 90% of liquidation traps.
2. Core Strategy: Do less to earn more
The market does not make money based on the number of trades, but rather on making the right trades for profit. I teach only three key points: one-way trading, either only long or only short, no back-and-forth, which naturally increases success rates; mechanical execution, set a 3% stop-loss and a 5% take-profit in advance, which is more reliable than judging based on feelings in the moment; control frequency, the first 1-2 trades of the day are the highest quality, more than 3 trades basically means handing out money.
3. Warning Zone: 90% of beginners fall here
Increasing your position against the trend is absolutely inadvisable; every time you add to your position, you get closer to liquidation; don’t engage in meaningless trades, as transaction fees accumulate and can eat up more than half of your profits; not taking your profits is equivalent to not earning; most liquidations stem from the greed of 'it can go up more.'
With the same 100,000 capital, different methods lead to vastly different outcomes. The wrong method is to go all-in with high leverage, averaging down on losses, and holding, ultimately leading to liquidation; my method is to use 20,000 as a base position, strictly execute a 3% stop-loss and a 5% take-profit, only engaging in two high-quality trades per week, with monthly returns stabilizing at 8%, compounding annually over 150%.
Remember the expert’s mantra: use spare money, stick to discipline, only engage in one-way trades; don’t go all-in, don’t hold positions, don’t block both sides. Lastly, a reminder, contracts are not a casino; those who gamble with their living expenses will eventually exit, protect your principal, live long enough, and you will qualify to earn big in the cryptocurrency space. @温舟-主流

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