This year will be a year of transformation and innovation for the blockchain and cryptocurrency industry. From the approval of BTC ETF to the integration of AI and cryptocurrency, every aspect demonstrates the vitality and potential of the industry.
BTC Ecosystem
1. BTC New Asset Issuance Protocol
2. BTC Infrastructure
3. BTC Scalability Solutions
Modular Blockchain and Data Availability (DA)
1. Modular Blockchain
2. Data Availability Layer
DePIN
New Public Chains and Ethereum Ecosystem
1. Parallel EVM Public Chains
2. Ethereum Ecosystem
GameFi
1. Full-chain Games
2. Non-full-chain Games
AI&Crypto
1. Decentralized Computing Power Network
2. AI&Crypto Applications
MEME
Conclusion
On January 11th, BTC ETF was finally approved by the SEC, and today, 11 BTC ETFs officially launched on the US stock market. These two days can be considered as a milestone moment in the history of cryptocurrency. With ETF bringing BTC into the mainstream world and the upcoming BTC halving event at the end of March, 2024 is undoubtedly an important year for the cryptocurrency track.
So, in 2024, what tracks should we pay attention to? In this issue, we bring you an analysis and outlook of the seven major tracks in 2024, jointly written by the Biteye community.
Looking back at 2023, the main narrative of the BTC ecosystem was clear. After Domodata proposed the BRC20 standard on March 8th, a series of tokens quickly flourished on the BTC main chain. The narrative of new assets combined with BTC allowed the first token, ORDI, to surpass a market value of $1000M within a year.
With the increase in on-chain transactions, the problems of network congestion and high transaction fees have become apparent. When popular tokens were minted, the GAS fee of BTC became so high that it was unacceptable for ordinary users. The scalability demand of BTC also took the stage of future narratives. So, what are the directions we can focus on in the future of the BTC ecosystem?
Atomicals, an optimization project for Ordinals and BRC20, solves the problem of BRC20’s excessive reliance on centralized chain indexing. It uses and extends the UTXO model of Bitcoin, treating each satoshi’s UTXO as a specific Atomical token or digital object. $ATOM is the first token of Atomicals, minted through Proof of Work (POW), and is considered more decentralized, in line with the original ideology of BTC. Due to its technical superiority, it currently has a strong community consensus.
SRC-20, a token standard developed based on the Stamps protocol, BTC Stamps, invented by @mikeinspace. The main difference between Stamps and Ordinals is that the image/text information of Ordinals is stored in witness data, while Stamps data is stored in transaction outputs. This difference creates an important feature of Stamps, which can always exist on the BTC chain, and all nodes must synchronize this data.
Bitmap, the first metaverse project in the BTC ecosystem, reflects each transaction input in a block of Bitcoin as a block (Parcel), forming a block or area. Bitmap also proposed the BRC-420 protocol, which is an asset protocol based on Bitmap. By combining multiple tokens, a complex token is created, creating a variety of assets from small characters and pets.
Other projects to watch include CBRC, Veda, Rune, and Sat.
The current mainstream BTC infrastructure projects are as follows, indicating that future BTC infrastructure will mainly be divided into several major directions:
1. Cross-chain Bridges
2. IDO Platforms
3. DEX Exchanges
4. Lending Platforms
5. Trading Markets
The development direction of BTC scalability solutions mainly includes two ways: Lightning Network and sidechains.
1) Lightning Network: Proposed by Joseph Poon and Tadge Dryja in 2016, it is one of the Layer 2 solutions for Bitcoin. The Lightning Network consists of payment channels and aims to achieve fast and low-fee transactions, allowing users to make off-chain payments without confirmation, with final settlement on the main chain. In theory, the Lightning Network can achieve a processing speed of millions of transactions per second.
The Taproot Asset Protocol is an asset issuance protocol proposed by the Lightning Labs development team on October 19, 2023. The mainstream platform for issuing and trading Taproot Assets is Nostr Aeest, and its tokens, $TREAT and $TRICK, are mainly used for staking.
2) Sidechains: Stacks ($STX) is currently the most developed Layer 2 in the BTC ecosystem. Stacks uses the Proof of Transfer (POX) consensus algorithm for validation. By anchoring transactions, block information from the Stacks chain is broadcasted to the Bitcoin network to ensure the security of transactions. Stacks has a complete execution environment (any application that can be built on Ethereum can be built on the Stacks layer). Validators and miners in Stacks can stake $STX and $BTC respectively to mine $BTC and $STX tokens to maintain network security. Looking at the roadmap of Stacks, the upcoming launch of Nakamoto Network and SBTC in Q1 of this year will be important milestones in the development of Stacks and deserve attention.
Other BTC scalability solutions worth mentioning include the RGB protocol, Bitcoin sidechain project Rootstock ($RIF), BitVM, and BEVM.
Modular blockchain is a type of blockchain that specializes in specific functions such as execution, consensus, settlement, or data availability (DA), relying on other blockchains or services to perform the remaining tasks. This design can enhance the security of the project and save the project team’s energy to focus on developing core features. Modular blockchains decouple the functions and components of the blockchain to solve the performance bottleneck of traditional monolithic chains. Each module is provided by professional providers and can be combined to provide customization for blockchain.
There are many projects in the modular blockchain direction worth paying attention to:
1. Celestia ($TIA): Celestia uses off-chain methods to achieve data availability (DA), ensuring the availability of data through Reed-Solomon erasure codes and specialized Namespaced Merkle Trees. Celestia, although already launched, can still indirectly participate in all projects that use Celestia through staking in accounts. Many recent projects in the Cosmos ecosystem have included Celestia staking accounts in their airdrops.
2. Manta: Manta Network is a modular blockchain for zero-knowledge (ZK) applications and the first to convert the data availability layer from the ETH mainnet to Celestia’s Layer 2. Since Manta converted DA from ETH mainnet to Celestia in December last year, its transaction fees have reduced by 99.8%. Currently, Manta’s TVL exceeds $800 million, second only to OP and Arb.
3. AltLayer: AltLayer is a decentralized Rollup-as-a-Service protocol, and its entire stack adopts modular design. End-users can choose Rollups based on their needs. Rollup SDKs support Arbitrum Orbit, OP Stack, and more. The data availability layer supports Eigenlayer, Celestia, and Astria.
4. Cevmos: Cevmos is a rollup stack jointly developed by Cosmos EVM application chain Evmos and Celestia, aiming to become the best settlement layer based on EVM rollup on Celestia. Cevmos stands for Celestia, Evmos, and Cosmos.
Data availability layer is one of the main development directions of modular blockchains, and Celestia is a modular blockchain specifically designed for data availability. Data availability refers to the public storage of transaction data for verification services. The data availability layer ensures that the data is correct, protected, and easy to verify. In the current scenario, the most direct advantage is that the data availability layer can greatly reduce gas fees for project parties and users.
Currently, ETH L2 needs to upload Calldata to the ETH mainnet, which means the ETH mainnet is responsible for data availability. This is a super expensive expense. As seen from the significant reduction in transaction fees for Manta, it is evident that DA is a real need for Web3 projects, not only for cost-saving advantages but also due to the current market hype. The market prospects are very broad.
However, problems also arise with the growth of the market, the competition between DAs, the DA War. Many new DA projects will go live one after another in the near future. These are the DA service providers, excluding the users who use DA services.
Avail, led by the Polygon team, is a modular blockchain project and the main competitor of Celestia. Currently in the testnet phase, Avail can be considered as a benchmark project against Celestia. It has launched an “Node Conflict” incentive testnet, allowing users to participate in node execution to earn rewards.
Fuel, unlike Celestia, focuses on the execution layer of modular blockchains, using the SwayLang language. It currently provides corresponding Zealy identities.
EigenDA is a modular blockchain that provides low-cost, large-scale rolling data availability through Eigenlayer, protected by ETH Restaking. Users can try to participate in Eigenlayer to get involved in this project.
At the same time, some old projects will also support their exclusive DAs. For example, ETH’s Danksharding is essentially a DA, and its verification technology is more complex than Celestia’s. Ethereum founder Vitalik has repeatedly promoted his own DA technology and stated on social media that using third-party DA services does not count as Ethereum’s Layer 2, setting a moat for his own DA.
Essentially, DA is a business aimed at project parties and may not be perceived by users. Therefore, the soft power of DA projects, such as first-mover advantage, connections, and influence, may be more important than the technical details themselves. This year, the DA War will be very exciting.
As expected by Biteye in its 2023 outlook report, DePIN has become a hot track, and the crypto community seems to have found a large-scale practical use case outside of finance. DePIN refers to the decentralized physical infrastructure network that uses cryptocurrency incentives and coordination to launch and sustain decentralized infrastructure. DePIN is an important link between the virtual crypto world and the real world, promoting data security and effective coordination of idle resources to make our lives better.At the beginning of the project, DePIN used tokens or airdrops to incentivize users to participate in ecosystem construction and attract strong developers to provide more cost-effective products.
As more users use the products or services, the project’s revenue increases, which can be used for market value management and further marketing, giving rewards to the demand and supply sides of the product, incentivizing more participants, and attracting the attention of market funds to create a prosperous ecosystem.
During the bull market, DePIN will have a good positive feedback effect and has recently received attention from Binance and OKX, creating an introductory video on the theme of DePIN.
In the joint research report of Messari and Escape Velocity, DePIN’s track is divided into computing, wireless, energy, artificial intelligence, services, and sensors.
Below, we will introduce representative projects worth paying attention to in each sub-track, which is not investment advice. Readers can continue to explore and discover more interesting projects that have practical promotion for society.
Computing:
With the promotion of machine learning and AIGC, the amount of data generated has grown exponentially, driving the need for more secure decentralized storage. Filecoin ($FIL) is the leader in the storage track and ranks second in DePIN track revenue.
Wireless:
Helium ($HNT) is a decentralized wireless network protocol and one of the earliest and most well-known DePIN projects. It ranks first in the DePIN track financing list with a financing amount of 250 million US dollars, tied with Filecoin.
Helium Mobile ($MOBILE), a sub-DAO of Helium, provides discounted phone plan services to users and has recently become a shining new star due to the rapid increase in its token price.
Energy:
Arkreen is a global decentralized renewable energy data network that tokenizes trusted and verifiable data from renewable energy devices to promote carbon neutrality.
Artificial Intelligence:
Render Network ($RNDR) is a decentralized GPU rendering network that connects idle GPUs to assist in film and animation rendering. It has collaborated with well-known companies such as Stable Diffusion and Netflix.
Services:
Braintrust ($BTRST) is the first decentralized talent network that matches top freelance technical talents with the needs of large companies.
Sensors:
Hivemapper ($HONEY) is a mapping network where contributors collect street view images through Hivemapper’s dashcams and create up-to-date maps.
Investors can participate in DePIN track investments in two main ways. One is to purchase relevant products and devices as suppliers and provide services, earning token rewards to recover costs and make profits. Another way is to purchase relevant tokens because during the bull market, project teams use the revenue from device sales to stimulate price comparisons, thereby promoting people to continue purchasing products and devices, and rapidly advancing the construction of the ecosystem network.
However, it is important to note that the market-making willingness of the DePIN track is stronger, and the observed token prices often show a volatile trend. Investors can consider short-term trading, phased entry, or grid trading.
In addition, we can also consider enjoying the more cost-effective services of DePIN from the perspective of demand.
Public chains are the backbone of the cryptocurrency industry and the largest infrastructure. With the development of blockchain technology, we believe that high-performance single chains (parallel EVM), Ethereum re-staking, Cancun upgrades, and modular blockchains will be the four major directions to pay attention to in 2024 (we have already introduced modular blockchains in the first section).
1. Parallel EVM public chains:
Recently, Georgios, the CTO of Paradigm, proposed that 2024 will be the “year of parallel EVM”, and Paradigm is actively exploring this technology internally.
One of the performance bottlenecks of EVM is that transaction execution is processed sequentially, so it faces network congestion and delays during peak periods. The auction mechanism of gas also leads to high gas fees, which is the most troublesome issue for users when using Ethereum.
If EVM can achieve parallel computing, it will greatly improve network processing speed and system throughput, and improve the performance and efficiency of EVM. Currently, there are mainly two solutions to achieve this:
1) Independently design parallel EVM public chains, and
2) Use the parallel processing layer as Layer2 to execute transactions.
Projects worth paying attention to:
Sei ($SEI)
Sei is a Layer1 specifically designed for trading and adopts an optimistic parallel scheme. It is expected to achieve parallel EVM in the latest V2 version. At the same time, Sei also allows interaction between Cosmwasm smart contracts and EVM smart contracts, providing a more diverse execution environment.
Eclipse
Eclipse is a modular rollup platform that brings Solana to Ethereum. It uses the parallel computing Solana virtual machine as the execution layer and Ethereum as the settlement layer. Celestia is used for DA layer, and Risk Zero is used for fraud proof, creating a parallel EVM public chain.
Eclipse is currently running on the testnet and can be tested through the official website.
Lumio
Lumio is a Layer2 based on OP rollup, dedicated to using Aptos as the second-layer execution layer. Aptos, based on the Move system, has the potential to shine again in the parallel EVM track.
Lumio is currently in closed testing on Ethereum and will gradually open to NFT holders and Liquidswap users. Users can pay attention to testing qualifications and participate in the testnet early.
2. Ethereum ecosystem:
In 2023, the Ethereum Layer2 experienced explosive development, with more than ten Layer2 mainnets launched. According to L2Beat statistics, the total TVL (Total Value Locked) of Ethereum Layer2 has reached $19.35 billion. The OP Stack and Polygon CDK further reduce the difficulty of launching Layer2 mainnets, so it is predicted that the total TVL will continue to increase in 2024 with more Layer2 deployments.
1) Re-staking narrative:
In addition to utilizing Ethereum’s security, EigenLayer also uses Ethereum nodes to some extent to facilitate the construction of new public chains.
EigenLayer is a middleware protocol based on Ethereum that introduces the concept of re-staking, allowing Ethereum nodes to re-stake their staked ETH or LSD tokens into other oracles, bridges, and public chains, enabling them to enjoy Ethereum-level security at a lower cost, while users can receive multiple returns.
Recently, there has been a market for liquidating the liquidity staked in Eigenlayer into a new layer of liquidity tokens called LRT, creating a nested liquidity staking game called LRTfi. Projects worth paying attention to include:
Pendle ($PENDLE)
Pendle will soon launch eETH, a liquid staking token on ether.fi. Users can deposit eETH into Pendle’s LP and receive EigenLayer points, EtherFi points, and multiple staking rewards.
Swell
Swell is an LSDfi protocol where users can stake ETH to obtain Pearls and staking rewards. Swell plans to add re-staking functionality to its swETH, allowing users to stake ETH and receive rswETH, releasing liquidity for ETH and increasing additional returns.
Puffer Finance
Puffer is a liquidity staking protocol based on EigenLayer. Through its self-developed Secure-Signer tool and RAV technology, it solves the confiscation issues in Ethereum and EigenLayer networks, providing participants with low-risk dual rewards. It plans to launch its mainnet in 2024.
2) Cancun Upgrade:
On the evening of January 4th, the 178th Ethereum core developer meeting made the final confirmation of the testnet Dencun upgrade schedule. The testnet activation time for the Cancun upgrade will start on January 17th.
The core content of this Cancun upgrade is the implementation of the EIP-4844 proposal, which aims to increase the total number of transactions Ethereum can handle.
Before the Cancun upgrade, L2 transactions were stored in L1 transaction calldata. This method is costly and has limited calldata space.
After the Cancun upgrade, L1 will store the data submitted by L2 in a new location called “blob”, which is cheaper to store and has a larger space.
It is important to note that the income source of L2 is essentially the gas fees charged to users minus the gas fees paid to Ethereum. After the Cancun upgrade, the fees paid by L2 to Ethereum will be greatly reduced, allowing the income level of L2 to increase significantly.
Therefore, the Cancun upgrade is essentially a positive development for all Layer2s that use Ethereum as the data availability layer, including Optimistic rollup, ZK rollup, and other related Layer2s.
In the next quarter, the related targets of the Cancun upgrade are those with certain fundamental advantages.
The most obvious beneficiaries are OP and ARB, which are also two native protocols in the ecosystem. There will be some linkage effects. For example, Velodrome ($VELO), the largest DEX in OP, and GMX ($GMX) on ARB are worth paying attention to.
In addition, small and medium-sized Optimistic rollups, such as MetisDAO ($METIS) and Boba ($BOBA), are also beneficiaries. MetisDAO plans to become a Layer2 decentralized sequencer, which is worth paying attention to with the overlapping dual narratives.
Furthermore, due to the temporary storage solution introduced by EIP-4844, the data stored in Blob will be deleted after being temporarily stored for about a month. If L2 wants to retain relevant data for a long time, it needs to be stored by other storage service providers based on actual needs. This indirectly increases the demand for decentralized storage tracks, which is also a positive development for the decentralized storage track.
The Gamefi track currently has two classifications for games:
1) Full-chain games (FOCG)
2) Non-full-chain games (NFT assets + off-chain games)
Full-chain games refer to games where assets and game state storage and execution logic are on-chain, making them more decentralized and more versatile compared to non-full-chain games.
However, full-chain games are still in the early stage, and the entry barrier for users is relatively high. Therefore, it may take a long holding period for related tokens or NFTs to generate returns.
The two main game engines for full-chain games (FOCG) are:
1) MUD
2) Dojo
The former belongs to the OP stack, while the latter is on Starknet.
The MUD game engine is released by Lattice, a sub-project of 0xPARC. 0xPARC was established by the Dark Forest team, the pioneer of full-chain games, and they have received donations from the Ethereum Foundation and Gitcoin.
Currently, the game Sky Stife running on MUD is worth paying attention to. If you didn’t get a Pass in the previous season, don’t miss out on the new season starting on January 8th.
Dojo is a full-chain game engine proposed by core members of Loot Realms, the founder of Cartridge, and the founder of Briq, to develop a full-chain game engine on the Starknet network.
Compared to Solidity, Cairo has higher efficiency and modularization, which is why the core developers of Dojo chose Starknet instead of the OP stack.
Projects worth paying attention to in the Loot Realms series include:
1) Realms: Eternum (sandbox strategy game): Participating in the game requires purchasing Realms NFTs. By playing the game or staking Realms, users can earn rewards.
Please note that this translation is subject to human error and should not be considered a definitive or official version of the content.Token $Lords has been obtained, and the game is not fully open yet.
2. Loot Survivor (a text-based Roguelike game) and Shoshin launched by Topology have been launched on the mainnet and can be tested on the testnet. Playing the game requires consuming at least 25 $Lords tokens.
Non-full-chain games refer to games where some game assets are on the chain. Currently, most NFT-related games belong to this category.
Although the NFT market has been cold this year, NFTs in the gaming sector are very hot. Analyzing a project generally involves three perspectives:
1. Technology
2. Operations (breadth)
3. Community (depth)
Among them, 2 and 3 are the most important, while 1 is relatively secondary.
Notable projects include Matr1x.
Matr1x aims to create a web3 boutique game platform. The first shooting game is already available for experience, and the related community is very active. It is one of the few game projects that have landed and have a high community engagement.
Of course, this game also faces challenges: how to attract web2 users? Because the number of web3 users is limited, and most of them only care about profits rather than games, the project needs to attract web2 players to make the game more sustainable.
Matr1x’s approach is to use Douyin, Bilibili live broadcasts, and organize esports competitions. From the game data, its web2 players account for a considerable proportion.
There are two ways to participate in Matr1x:
1) Stake NFTs to obtain tokens.
2) Participate in subsequent game activities or public tests.
If the Gamefi trend arrives, non-full-chain games will be the first to receive attention, and full-chain games will be brought up when the entire ecosystem’s funding overflow occurs.
According to a report from Binance Research, the financing of Web3 projects related to artificial intelligence is growing strongly in 2023, reaching 298 million US dollars, far exceeding the total financing amount of AI-related projects from 2016 to 2022.
At the same time, tokens related to AI outperformed BTC and ETH in 2023. 2023 can be said to be the AI year of the world. As AI’s importance in the Web2 world gradually strengthens, we should also consider how AI and blockchain can be combined and what directions the combination can take. Finally, we can focus on which projects.
With the increasing demand for AI models, whether it is large language models or AI models customized according to demand scenarios, the improvement of AI intelligence cannot be separated from a fundamental aspect: extensive training, and extensive training relies on computing power. In traditional large-scale model training, the training environment of large models is conducted in a centralized data center environment, with high-performance computing devices as clusters, and connected through high-speed networks to share computing tasks.
In the Crypto environment, by sharing computing power and idle bandwidth, more computing power can be provided for AI model training, which is one of the exploration directions for the combination of AI and Crypto.
The decentralized mechanism of Web3 allows AI to become more democratic from the most basic level. By deploying, training, and using AI in a decentralized manner, users’ data privacy can be better protected, and they also have the opportunity to receive rewards through sharing data.
However, it should be noted that for model training in a decentralized computing network, due to the distributed nature, there are communication delays. Nodes need to spend more time waiting for data transmission, which is less suitable for models that pursue training efficiency.
In Web2, well-known AI applications include chatbot Chat GPT, AI search engine New Bing, image generation tool Midjourney, and virtual character AI. In Crypto, if AI wants to integrate with Crypto on the application level, it can develop in the following directions:
1) Like RSS3, based on the ChatGPT model, incorporate on-chain data and data sources such as Twitter, Reddit, Lens, Farcaster, and Mastodon for training, to build a more Crypto-native chatbot or AI assistant that caters to the needs of Crypto players.
Or, like 0xScope, build an AI cognitive model based on a knowledge graph, and users can use the AI trading assistant Scopechat to obtain and understand on-chain data for investment and transaction analysis.
2) In addition, generative AI can also bring new narratives to Web3 applications. For example, implanting virtual people and character AI in games, social ecosystems, and developing new gameplay.
From the recent projects launched by Binance, it is not difficult to see that the largest exchange in the world is very optimistic about the future of AI in the Crypto industry. The two projects launched are AI image generation and AI virtual idols, which are explorations of the combination of AI and Crypto at the application layer.
In addition to the mentioned projects, other projects to pay attention to include:
1) Bittensor ($TAO): A blockchain-based decentralized machine learning network that coordinates the collaboration of AI models using blockchain and mining incentive mechanisms.
2) FetchAI ($FET): A blockchain-based machine learning platform aimed at enabling traditional products to access AI through Fetch.ai tokens without changing the underlying business applications.
3) Dynex ($DNX): A neural morphology supercomputing blockchain based on the DynexSolve chip algorithm. It proposes a useful proof of useful work (PoUW) method to improve the speed and efficiency of decentralized networks, aiming to provide computing power for machine learning, fintech, biopharmaceuticals, etc.
4) Grass: A decentralized incentive network for web scraping. Users sell their unused network resources to companies, laboratories, and other institutions through the Wynd Network. Grass’s buyer companies seek unused network resources to access a more diverse range of IP addresses, conduct market research, or perform web scraping, training AI, and other tasks.
5) Clore.ai ($CLORE): A platform that provides GPU computing power rental services based on PoW. Users can rent their GPUs for tasks such as AI training, video rendering, and cryptocurrency mining, providing services to individuals and institutions in need of computing power.
To deeply participate in the above projects, the main ways to participate are to rent computing power or engage in mining. For example, Grass currently allows users to download Chrome plug-ins on computers, and users can earn points by registering and hanging up through Wi-Fi. After the project launches its tokens, users can obtain tokens based on points.
(Note: Most AI & Crypto projects are in the exploration stage, with projects focusing on the integration in various application scenarios. However, it is necessary to carefully distinguish whether the project itself has real demand.)
The Meme track, as a unique branch in the cryptocurrency field, has attracted widespread attention in recent years.
Memes can be a misspelling (HODL), a catchphrase (GM, LFG).
Memes can be a counter-cultural phenomenon (Doge, RFD).
Memes can also be a “arbitrage” of liquidity overflow (Aidoge, Stark Inu because airdrops are expected to appear on Starknet).
The characteristic of this track is that it does not rely on traditional business models or specific technical applications but relies on community consensus and cultural attributes. The value of Meme tokens largely depends on the recognition and emotional connection of the community, rather than the traditional asset valuation model.
From the rise of $PEPE in the bear market, the meme-like $BITCOIN, the arrival of $BONK in early bull market, and the endorsement of $Silly by the founder of Solana, we can see that strong meme coins often have the following characteristics:
1. Cultural resonance and community-driven
Meme tokens are usually combined with popular internet culture. For example, Dogecoin ($DOGE) and Shiba Inu Coin ($SHIB) originated from popular internet memes or cultural symbols.
This cultural resonance is easy to spread in the internet community, attracting a large number of followers and supporters, and gaining enthusiastic discussions on social media, increasing the visibility and attractiveness of these tokens.
2. Social media and celebrity effects
Social media has a huge influence on meme coins. Tweets by celebrities like the founder of Solana can significantly promote the market value of Silly Dragon ($SILLY). This celebrity effect and the dissemination power of social media can greatly increase the visibility of a token and create FOMO among investors in a short period.
3. News coverage and media attention
Meme coins often become the focus of news reports due to their unique image and sometimes bizarre stories, which further increases public attention to these tokens.
One thing we need to understand about memes is how to judge the consensus strength of a meme, that is, how many people in the market are willing to buy into a meme.
In the early stages of a meme, we often can only judge its investment value based on factors such as community activity, IP concept (riding the trend), and the strength and cultural background of the project team, which is the biggest risk of early meme investments. It’s either zero or a rug.
When the meme successfully “survives” for a period of time, we can try to judge whether the meme is worth investing in from multiple dimensions such as the number of token holders, trading volume, and support from the K-line (for example, there are more mentions of the meme on Twitter).
With memes becoming more widely known, their consensus will continue to strengthen, and the risks of going to zero and rugs will gradually decrease. Of course, the returns from memes at this time will also be discounted. As they say, risks and returns coexist.
Overall, the Meme track represents a new direction of diversification and cultural integration in the cryptocurrency market. It is not only a speculative direction but also a carrier of cultural expression and community consensus. With more cultural elements and creativity joining, the Meme track is expected to continue developing, but the risks it brings should not be ignored.
Therefore, for ordinary investors, understanding the cultural attributes of meme tokens and obtaining early chips, the most important thing is to develop a logic and judgment that one is familiar with and execute it. This is the key to participating in the Meme track.
Finally, 2023 is a year of change and innovation in the blockchain and cryptocurrency field. From the launch of the first modular blockchain to the rise of the BTC metaverse, to the combination of AI and crypto, each link injects new vitality into this industry.
As we step into 2024, we believe that these developments will continue to influence the direction of the industry. Stay tuned and keep learning, analyze market dynamics rationally, and explore new tracks. This may be one of the required courses for everyone in 2024.
In 2024, Biteye will not forget its original intention and continue to select high-quality projects to explore the code of wealth with our team!
* Declaration: The content shared in this article is for learning and exchange purposes only and does not constitute any investment advice, nor does it represent the position of Biteye. If you like our articles, click the business card below to follow us!
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