Biteye 2024 Track Outlook

Written by: @0xdddd111, @lviswang, @FINT1121, @Jesse_meta, @pikpika6, @shouyi16, @0x_Way, Biteye core contributors

Editor: Crush, Biteye core contributor

On January 11, BTC ETF finally passed the approval of the SEC. Today, 11 BTC ETFs were officially launched for trading in the U.S. stock market. These two days can be regarded as milestone moments in the history of encryption.

With ETFs bringing BTC to the larger mainstream world and the upcoming BTC halving event at the end of March, 2024 will undoubtedly be a very important year for the crypto space.

So what tracks are worth our attention in 2024? CommunityAn analysis and outlook of the seven major tracks for 2024 written jointly by our partners.

01 BTC Ecosystem

Looking back at 2023, the main narrative of the BTC ecosystem is very clear. After Domodata proposed the BRC20 standard on March 8, a series of inscriptions quickly flourished on the BTC main chain. The narrative of new assets superimposed on the narrative of BTC allowed the first inscription asset ORDI to break through the market value of $1000M within a year.

As the number of transactions on the chain increases, problems such as network congestion and high transaction fees begin to emerge. When popular inscriptions are minted, BTC's GAS fee is so high that ordinary users cannot accept it. BTC's expansion needs also stand on the stage of future narrative. So what are the directions that we can focus on in the future of BTC ecology?

1. BTC New Asset Issuance Agreement

Atomicals, an optimization project for Ordinals and BRC20, solves the problem of BRC20's over-reliance on centralized off-chain indexes. It utilizes and expands Bitcoin's UTXO model, treating each Satoshi's UTXO as a specific Atomical Tokenor digital object. $ATOM is the firstToken, minted using POW,CommunityIt is considered to be more decentralized and in line with BTC fundamentalism. Due to its technological superiority, it currently has a strong community consensus.

SRC-20 is a token standard developed based on the Stamps protocol. BTC Stamps was invented by @mikeinspace. The biggest difference between it and Ordinals is that OrdinalsXiaobai NavigationThe image/text information of Nals is stored in the witness data, while the Stamps data is stored in the transaction output. This difference creates an important feature of Stamps, which is that it can always exist on the BTC chain and all nodes must synchronize the data.

Bitmap is the first metaverse project in the BTC ecosystem. It maps each transaction input in the Bitcoin block into a parcel to form a block or area. Bitmap also proposed the BRC-420 protocol. BRC420 is an asset protocol based on Bitmap. It combines multiple inscriptions to form a complex inscription, creating a variety of assets from small characters and pets.

Other new protocols include CBRC, Veda, Rune, and Sat that you can pay attention to.

2. BTC Infrastructure

The current mainstream BTC infrastructure projects are shown below. It can be seen that the future BTC infrastructure will be mainly divided into the following major directions:

• Cross-chain bridge

• IDO Platform

• DEX exchange

• Lending Platform

• Trading Market

3. BTC expansion plan

There are two main development directions for BTC expansion plans: one is the lightning network and the other is the side chain.

1) Lightning Network

The Lightning Network was proposed by Joseph Poon and Tadge Dryja in 2016 and is one of the Bitcoin Layer 2 solutions.

The Lightning Network is composed of payment channels, which are designed to achieve fast and low-fee transactions, allowing users to pay off-chain without confirmation. The final settlement is carried out on the main chain. In theory, the Lightning Network can process millions of transactions per second.

The Taproot Asset Protocol is an asset issuance protocol proposed by the Lightning Network development team Lightning Labs on October 19, 2023. The current mainstream Tarproot Asset issuance and trading platform is Nostr Aeest, and its tokens Double T ($TREAT & $TRICK) are currently mainly used for staking to purchase new shares.

2) Sidechain

Stacks ($STX): Stacks is the most developed in the BTC ecosystem. L2, Stacks verification mechanism adopts the POX (Proof of Transfer) consensus algorithm.

By anchoring transactions, the transactions are packaged and the block information of the transactions on the Stacks chain is broadcast to the Bitcoin network to ensure the authenticity of the transactions.Safetysex.

Stack has a complete execution environment (i.e. any application that can be built on chains such as Ethereum can be built on the Stacks layer).

Transaction validators and miners in Stacks can stake $STX and $BTC respectively to mine $BTC and $STX tokens to maintain the network.Safety.

Judging from Stacks’ roadmap, the launch of the Nakamoto network and SBTC in Q1 this year will be important milestones in the development of Stacks and deserve special attention.

3) Others

In addition to the protocols mentioned above, other BTC expansion plans worth paying attention to include the RGB protocol, the Bitcoin sidechain project Rootstock ($RIF), BitVM, BEVM, etc.

02 ModularityBlockchainand data availability DA

1. ModularityBlockchain

ModularBlockchainA blockchain that specializes in a specific function (such as execution, consensus, settlement, or data availability).Blockchain, and rely on otherBlockchainor services to perform the rest of the tasks.

This design can enhance the projectSafetyIt can save energy for the project team to focus on developing core features.

Modular blockchain solves the performance bottleneck of traditional single chain by decoupling the various functions and components of blockchain. Each module uses professional providers to provide the possibility of customized blockchain in combination.

There are many projects worth paying attention to in the modular blockchain direction:

• Celestia ($TIA)

Celestia uses an off-chain approach to implement DA, which ensures data availability through Reed-Solomon erasure codes and a specialized Namespaced Merkle Trees structure, making DA cheaper and more efficient.

Although Celestia has already issued its tokens, users can still indirectly participate in all modular projects that use Celestia by staking in their accounts. Recently, many Cosmos projects have also included Celestia staking accounts in the airdrop range.

• Manta

Manta Network is a modular blockchain for zero-knowledge (ZK) applications and the first Layer2 to convert the data availability layer from the ETH mainnet to Celestia.

Since Manta switched DA from the ETH mainnet to Celestia in December last year, its transaction fees have been reduced by 99.8%. Currently, Manta's TVL exceeds 800 million US dollars, second only to OP and Arb.

• AltLayer

AltLayer is a decentralized Rollup-as-a-Service protocol. Its entire stack adopts a modular design, and end users can choose Rollups according to their needs.

Rollup SDKs support Arbitrum Orbit, OP Stack, etc. The data availability layer supports Eigenlayer, Celestia, and Astria.

AltLayer has released the first testnet tasks and OAT on Galaxy. You can pay attention to the subsequent testnet tasks. OAT may be empowered in the future. At the same time, Altlayer has previously released the Ottie NFT series, which will have the opportunity to receive token airdrops in the future.

• Cevmos

Cevmos is a rollup stack jointly developed by the Cosmos EVM application chain Evmos and Celestia. It aims to become the best settlement layer built on Celestia based on EVM rollup.

Cevmos is the abbreviation of Celestia, Evmos and Cosmos.

2. Data availability layer

Data availability layer is one of the main development directions of modular blockchain, Celestia is a modular blockchain that specializes in data availability layer.

Data availability mainly refers to the public storage of transaction data to provide verification services.The data availability layer ensures that data is correct, protected, and easy to verify. For the current scenario, the most direct thing is that the data availability layer can greatly reduce the Gas Fee of the project party and the user.

Current ETH L2 Calldata needs to be uploaded to the ETH mainnet, which means that the ETH mainnet is responsible for DA, which is a huge expense.

From the significant reduction in Manta transaction fees mentioned earlier, it can be seen that from the advantage of saving money alone, coupled with the current market popularity, it is not difficult to see that DA is already a real need of Web3 project parties, and the market prospects are very broad.

But problems also arise. A bigger pie means competition among DAs, the DA War. In the coming period, many new DA projects will be launched one after another (the following are DA service providers, not including users of DA services):

• Avail, a modular blockchain project led by the Polygon team, is Celestia's main competitor. Currently in the testnet stage, Avail can be seen as a project benchmarking Celestia. It has launched the "Node Conflict" incentive testnet, where users can participate in running nodes to earn income.

• Fuel, unlike Celestis, is a modular blockchain for the execution layer, using the SwayLang language, and can currently obtain the corresponding Zealy identity.

• EigenDA，是由 Eigenlayer 提供低成本、超大规模的滚动数据可用性，安全性由 ETH Restaking 保护。可以尝试通过参与 Eigenlayer 参与该项目。

At the same time, some old projects will also support their own exclusive DA. At that time, choosing which DA to use will become the key point of market competition.

For example, ETH's Danksharding is essentially DA, and its verification technology is more complex than Celestia.

Ethereum founder Vitalik has repeatedly stood up for his own DA technology. He has repeatedly stated on social media that using third-party DA services cannot be considered as Ethereum's second layer, setting up a moat for his own DA.

In essence, DA is a business for project owners, and has little to do with user perception. Therefore, the soft power of DA project owners, such as first-mover advantage, personal connections, voice, etc., may be more important than the technical details themselves. This year, DA War will be very exciting.

03 DePIN

As Biteye expected in its 2023 outlook report, DePIN has become a hot track, and the crypto circle seems to have found large-scale practical scenarios beyond finance.

DePIN refers to a decentralized physical infrastructure network that usescryptocurrencyIncentivize and coordinate the launch and ongoing operation of decentralized infrastructure.

DePIN is an important link between the virtual cryptosphere and the real world. It can promote data security, effectively coordinate idle resources, and make our lives better while allowing more people to see it.cryptocurrencyPractical value and charm.

In the early stages of the project, DePIN uses tokens or airdrop expectations to incentivize users to participate in ecosystem construction and attract powerful developers to provide more cost-effective products.

As more and more users use products or services, the project's income increases, and the income can be used for market value management and further marketing, giving rewards to product demanders and suppliers, incentivizing more participants and attracting the attention of market funds to create a prosperous ecosystem.

DePIN will have a good positive flywheel effect during the bull market. It has also recently attracted the attention of Binance and OKX, which produced an introductory video on the DePIN theme.

A joint research report by Messari and Escape Velocity divides the DePIN track into computing, wireless, energy, artificial intelligence, services, and sensors.

The following is an introduction to representative projects worth paying attention to in each sub-track. This is not an investment advice.Readers can continue to explore and discover more interesting projects that can have practical benefits for society.

• calculate

In machine learning and AIDriven by GC, the amount of data generated has grown exponentially, which has also driven the need for more secure decentralized storage. Filecoin ($FIL) is the leader in the storage track and ranks among the top two in terms of revenue in the DePIN track.

• wireless

Helium ($HNT) is a decentralized wireless network protocol and one of the earliest and most famous DePIN projects. With a financing amount of US$250 million, it ranks first in the DePIN track financing list together with Filecoin.

son DAO Helium Mobile ($MOBILE) provides users with discounted phone package services and has recently become a shining star due to the rapid rise in the price of the currency.

• energy

Arkreen is a global decentralized renewable energy data network that tokenizes trusted and verifiable data on renewable energy devices to promote carbon neutrality.

• AI

Render Network ($RNDR) is a decentralized GPU rendering network that connects idle GPUs to power movie and animation rendering, and collaborates with well-known companies such as Stable Diffusion and Netflix.

• Serve

Braintrust($BTRST) is the first decentralized talent network that matches top freelance technical talent with the needs of large companies.

• sensor

Hivemapper ($HONEY) is a map network where contributors collect street view images through Hivemapper's dashcam to draw the latest maps.

There are two main ways for investors to participate in the DePIN track investment.

• One is to purchase related products and equipment as a supplier to provide services, and to recoup investment and make profits through the token rewards obtained.

• Another way is to buy related tokens, because during the bull market, the project party will use the revenue from the sale of equipment to stimulate price comparisons, thereby encouraging people to continue purchasing products and equipment and quickly promote the construction of the ecological network.

However, it should be noted that the market-making intention of the DePIN track will be stronger. The token prices currently observed often show a trend of sharp rise and fall. Investors can consider swing trading, entering the market in batches, or grid trading.

In addition, we can also consider enjoying DePIN's more cost-effective services from the perspective of demanders.

04 New public chain and Ethereum ecosystem

The public chain is the backbone of the crypto industry and the largest infrastructure. With the development of blockchain technology, we believe that high-performance single chain (parallel EVM), Ethereum re-staking, Cancun upgrade and modular blockchain will become the four major directions that need to be paid attention to in 2024. (Among them, modular blockchain has been introduced in the first section.)

1. Parallel EVM public chain

Recently, Paradigm's CTO Georgios proposed that 2024 will be the "year of parallel EVM", and Paradigm is also actively exploring the technology internally.

One of the sources of EVM performance bottleneck is that its transaction execution is processed sequentially, so it will face network congestion and delays during peak periods, and the gas auction mechanism will cause high gas fees, which is the most troublesome problem for users when using Ethereum.

If EVM can achieve parallel computing, it will greatly improve network processing speed and system throughput, and improve EVM performance and efficiency. There are two main solutions currently implemented:

1) Independently design parallel EVM public chain and

2) Use the parallel processing layer as Layer2 to execute transactions

Notable projects:

• Sei ($SEI)

Sei is a Layer 1 optimized for transactions. It uses an optimistic parallel solution and is expected to implement parallel EVM in the latest V2 version.contractSmart with EVMcontractInteraction provides a more diverse execution environment.

• Eclipse

Eclipse is a modular rollup platform. Its biggest feature is that it brings Solana to Ethereum, that is, using the parallel computing Solana virtual machine as the execution layer, Ethereum as the settlement layer, Celestia to implement the DA layer, and Risk Zero for fraud proof, to piece together a parallel EVM public chain.

Eclipse is currently running on the test network, and you can apply for testing through the official website.

• Lumio

Lumio is a Layer2 based on OP rollup, dedicated to using Aptos as the second-layer execution layer. Move-based Aptos was once very popular and has the hope of shining again in the parallel EVM track.

Lumio is currently in closed testing on Ethereum and will gradually be opened to NFT holders and Liquidswap users. Users can pay attention to testing qualifications and participate in the testnet early.

2. Ethereum Ecosystem

Ethereum's second layer has experienced a blowout development in 2023, with more than ten second-layer mainnets launched. According to L2Beat statistics, the total TVL of Ethereum's second layer has reached $19.35B. OP Stack and Polygon CDK have further reduced the difficulty of launching a second-layer public chain. Therefore, it is predicted that the total TVL will continue to increase in 2024 as more second-layers are launched.

1) Re-staking narrative

In addition to the second-layer network utilizing the security of Ethereum, EigenLayer also utilizes Ethereum nodes to a certain extent to facilitate the construction of new public chains.

EigenLayer is a middleware protocol based on Ethereum. It introduces the concept of re-staking, allowing Ethereum nodes to re-stake their staked ETH or LSD tokens to other oracles, bridges, and public chains, allowing them to enjoy Ethereum-level security at a lower cost, while users can obtain multiple benefits.

Recently, there has been a trend in the market to exchange the liquidity pledged in Eigenlayer for a new layer of liquidity tokens LRT, which has led to the re-staking liquidity nesting doll LRTfi. Projects worth noting include:

• Pendle ($PENDLE)

Pendle is coming soon ether.fi's liquid staking token eETH, users can deposit eETH into Pendle's LP to obtain EigenLayer points, EtherFi points and multiple staking income.

• Swell

Swell is an LSDfi protocol. Users can stake ETH to obtain pearls and staking income. Pearls are linked to airdrop tokens. It will soon add a re-staking function to its swETH, allowing users to stake ETH and obtain rswETH, releasing ETH's liquidity and increasing additional income.

• Puffer Finance

Puffer is a liquidity staking protocol based on Eigenlayer. Through its self-created Secure-Signer tool and RAV technology, it solves the penalty problem in the Ethereum and Eigenlayer networks, providing participants with low-risk double returns. It plans to launch the mainnet in 2024.

2) Cancun Upgrade

On the evening of January 4, the 178th Ethereum core developer meeting made final confirmation on the upgrade schedule of the test network Dencun. The test network activation time for the Cancun upgrade will start on January 17.

The core content of this Cancun upgrade is the implementation of the EIP-4844 proposal, which aims to increase the total number of transactions that Ethereum can process.

Before the Cancun upgrade, L2 transactions were stored in L1 transaction Dalldata. This method is costly and has limited Calldata space.

After the Cancun upgrade, L1 will store data submitted by L2 in a new location called "blob", which is cheaper and has more space.

We need to note that L2's source of revenue 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, which means that L2's revenue level can be greatly increased.

Therefore, the Cancun upgrade is essentially beneficial to all Layer2s that use Ethereum as the data availability layer, including all related Layer2s including Optimisic rollup and ZK rollup.

In the next quarter, the relevant targets of Cancun upgrade will have certain fundamental benefits.

The most obvious ones are OP and ARB, the two direct beneficiaries. In fact, the native protocols in the two ecosystems will also have certain linkage effects, such as the largest DEX in OP - Velodrome ($VELO), GMX ($GMX) on ARB, and so on.

Secondly, small and medium-sized Optimisic rollups, such as MetisDAO($METIS)，Boba($BOBA) 等 Layer2 也是受益者，像 MetisDAO 还打算做去中心化排序器的 Layer2，有双重叙事叠加的也是值得关注的。

In addition, since EIP-4844 introduces a temporary storage solution, the data will be deleted after being temporarily stored in the Blob for about 1 month.

If L2 wants to retain relevant data for a long time, other storage service providers will need to store it according to actual needs. This will indirectly increase the demand for the decentralized storage track, which is also a benefit to the decentralized storage track.

05 GameFi

Gamefi track currently has two categories for games:

1. Full Chain Game (FOCG)

2. Non-full-chain games (nft Assets + Off-Chain Games)

1. Full-chain games

A full-chain game means that in addition to the assets on the chain, the game's state storage and execution logic are also on the chain. Therefore, compared with non-full-chain games, full-chain games are more decentralized and more combinable.

However, full-chain games are still in their early stages, and the entry threshold for users is relatively high, so related tokens or NFTs need to be held for a long period of time before they can generate returns.

The two main game engines in the full-chain game (FOCG) track are:

1. MUD

2. Dojo

The former belongs to Op-stack and the latter to Starknet.

The MUD game engine was released by Lattice, which is a sub-project of 0xPARC. 0xPARC was established by the Dark Forest team, the originator of the full-chain game, and they received donations from the Ethereum Foundation and Gitcoin.

The game Sky Stife currently running on MUD is worth paying attention to. If you didn’t get the Pass in the last season, don’t miss the new season this time. The new season starts on January 8th.

Dojo was proposed by a core member of Loot Realms, the founder of Cartridge, and the founder of Briq to develop a full-chain game engine on the Starknet network.

Cairo has higher efficiency and scalability than Solidity, which is why Dojo core development chose Starknet instead of Op-stack.

Projects worth noting include the Loot Realms series:

1. Realms: Eternum (sandbox strategy game). To participate in the game, you need to purchase Realms NFT. By playing the game or staking Realms, you can get the token $Lords. The game is not yet fully open.

2. Loot Survivor (a text-based Roguelike game) and Shoshin launched by Topology. The games have been launched on the main network and can be tried on the test network. Playing the game requires at least 25 $Lords.

2. Non-full-chain games

Non-full-chain games refer to games in which some game assets are on the chain. Currently, most NFT-related games belong to this category.

Although the NFT market has cooled this year, NFT in the gaming sector is very hot. Generally, we analyze a project from three perspectives:

1. Technology

2. Operations (Breadth)

3. Community (in depth)

The most important ones are 2 and 3, and 1 is relatively minor.

Projects worth noting: Matr1x

Matr1x aims to create web3 It is a high-quality gaming platform. The first shooting game is already available for experience. The related community is also very active. It is one of the few gaming products that have been launched and has a very popular community.

Of course, the game also faces challenges: how to attract web2 users? web3 The number of 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 last longer.

Matr1x’s approach is: Tik Tok, Bilibili live broadcast, and hosting e-sports competitions. Judging from the game data, the proportion of his web2 players is not low.

There are two ways to participate in Matr1x:

1) Pledge NFT to obtain tokens;

2) Participate in subsequent game activities or public beta

If the Gamefi trend comes, non-full-chain games will receive attention first, and when the entire ecosystem funds overflow, full-chain games will be brought up.

06 AI&Crypto

according toBinance研究院的报告显示，2023 年，与人工智能相关 Web3 项目的融资增长强劲，达到 2.98 亿美元，远超过 2016 年至 2022 年 AI 相关项目的总融资金额。

At the same time, AI-related tokens have outperformed BTC and ETH overall in 2023. 2023 can be said to be the first year of AI for the entire world. As the importance of AI in the Web2 world gradually increases, we should also think about how AI and blockchain can be combined, what are the directions of combination, and finally which projects we can pay attention to.

1. Decentralized computing network

As the demand for AI models increases, whether it is a large language model or an AI model customized according to the demand scenario, the improvement of AI intelligence is inseparable from the most essential link.

A large amount of training, and the essence behind a large amount of training is to pile up computing power. In traditional large-model training, the training environment of large models is carried out in a centralized computer room environment, with high-performance computing devices as clusters, 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 the training of AI models. This is one of the current exploration directions of the combination of AI and Crypto.

The decentralized mechanism of Web3 allows AI to become more democratic from the most basic level. Through decentralized deployment, training and use of AI, users' data privacy can be better protected, while they also have the opportunity to be rewarded by sharing data.

However, it should be noted that for model training, the decentralized computing network has the defect of communication delay due to the distributed distance. Nodes need to spend more time waiting for data transmission, which is less suitable for models that pursue training efficiency.

2. AI & Crypto Applications

In Web2, well-known AI applications include chatbot Chat GPT, AI search engine New bing, image generation tool Midjourney, virtual character Character AI, etc. In Crypto, if AI wants to be combined with Crypto at the application level, the possible development directions are:

1) Like RSS3, based on the ChatGPT model, add on-chain data and data sources such as twitter, reddit, Lens, Farcaster, Mastodon for training to build a chat bot or AI assistant that is more Crypto Native and more targeted at the needs of Crypto players.

Or like 0xScope, it builds an AI cognitive model based on knowledge graphs, and users can use the AI trading assistant Scopechat to obtain and understand on-chain data to conduct investment and trading analysis.

2) In addition, generative AI can also bring new narratives to Web3 applications, such as implanting cutting-edge elements such as virtual humans and character AI into gaming, social and other ecosystems to develop new ways of playing.

fromBinanceIt is not difficult to see from the two AI-related projects that have been launched recently that the world’s largestexchangeWe are very optimistic about the future of AI. The two projects launched are AI image generation and AI virtual idols. These are explorations of the combination of AI and the application layer in Crypto.

In addition to the projects mentioned above, other projects you may also like include:

1) Bittensor ($TAO): A decentralized machine learning network based on blockchain that uses blockchain and mining incentives to coordinate the collaboration of AI models;

2) FetchAI ($FET): A blockchain-based machine learning platform that aims to enable traditional products to access AI through Fetch.ai tokens without changing the underlying business applications;

3) Dynex ($DNX): A neuromorphic supercomputing blockchain based on the DynexSolve chip algorithm. It proposes a Proof of Useful Work (PoUW) method to improve the speed and efficiency of decentralized networks, aiming to provide computing power for machine learning, financial technology, biopharmaceuticals, etc.

4) Grass: A decentralized incentivized web scraping network where users sell their unused web resources to companies, laboratories and other institutions through Wynd Network. Grass’s buyer companies seek unused web resources to access a more diverse range of IP addresses, conduct market research or perform tasks such as web scraping and training AI.

5) Clore.ai ($CLORE): A platform that provides GPU computing power rental services based on PoW. Users can rent their own GPUs for AI training, video rendering andcryptocurrencyMining and other tasks are provided to individuals and institutions that need computing power services.

If users want to participate deeply in the above projects, the main way to participate is to rent computing power or conduct mining. For example, Grass currently has opened a Chorme plug-in account for the computer. Users can download and register and then earn points by hanging up on Wifi. After subsequent projects issue coins, they can obtain tokens based on the points.

(Note: Currently, most AI&Crypto projects are in the exploratory stage. There are combined projects for various application scenarios, but whether the project itself has real demand needs to be carefully identified.)

07 MEME

As a unique branch of the cryptocurrency field, the meme track has attracted widespread attention in recent years.

• A meme can be a spelling mistake (HODL), a catchphrase (GM, LFG);

• Memes can be a counterculture (Doge, RFD);

• Meme can also be "arbitrage" of liquidity overflow (Aidoge, Stark Inu due to airdrop expectations appearing on Starknet).

The characteristic of this track is that it does not rely on traditional business models or specific technological applications, but on the consensus and cultural attributes of the community. The value of the MEME track currency depends to a large extent on the community's recognition and emotional connection, rather than the traditional asset valuation model.

From $PEPE that rose in the bear market, $BITCOIN with strong meme attributes, $BONK that was welcomed by Niu Junior High School, and $Silly that was called by the founder of Solana, we can see that strong MEME coins often have the following characteristics:

1. Cultural resonance and community drive.

The coins in the meme track are usually combined with popular Internet culture. For example, Dogecoin ($DOGE) and Shiba Inu Coin ($SHIB) are derived from popular Internet memes or cultural symbols.

This cultural resonance easily spreads among the Internet community, attracting a large number of followers and supporters, generating heated discussions on social media, and increasing the visibility and appeal of these currencies.

2. Social media and celebrity influence

Social media has a huge influence on Meme coins. Celebrities such as Solana founder’s tweets about Silly Dragon ($SILLY) can significantly boost its market value. This celebrity effect and the spread of social media can greatly increase the popularity of a certain currency and investors’ FOMO in a short period of time.

3. News coverage and media attention

Meme coins are often the focus of news reports due to their unique image and sometimes bizarre stories, which further increases public attention to these coins.

Regarding Meme, one thing we need to understand is how to judge the consensus strength of Meme, that is, how many people in the market are willing to pay for a Meme.

In the early stages of Meme, we can only judge whether it has investment value based on "vague" conditions such as community activity, IP concept (riding on the popularity), project team strength, cultural background, etc. This is also the biggest risk of early investment in Meme, either it will return to zero or it will be a rugged investment.

When a 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 coin holders, trading volume, and K-line support (for example, more and more people are mentioning the meme on Twitter).

As more and more people know about Meme, its consensus is constantly strengthening, and the risk of zeroing and rugging will gradually decrease. Of course, the benefits of Meme at this time are also discounted. As the saying goes, risks and benefits coexist.

In general, the Meme track represents a new direction for the diversification and cultural integration of the cryptocurrency market. It is not only a speculative direction, but also a carrier of cultural expression and community consensus. With the addition of more cultural elements and creativity, the Meme track is expected to continue to develop, but the risks it brings cannot be ignored.

Therefore, for ordinary investors, understanding the cultural attributes of Meme coins and obtaining early chips, and most importantly, cultivating a logic and judgment that they are familiar with and executing them, are the keys to participating in the Meme track.

08 Conclusion

Finally, 2023 can be described as a year of change and innovation in the field of blockchain and cryptocurrency. From the launch of the first modular blockchain, the rise of the BTC inscription ecosystem, to the combination of AI and encryption, every link has injected new vitality into the industry.

As we step into 2024, we believe these developments will continue to influence the direction of the industry. Keeping up with the times, rationally analyzing market dynamics, and exploring new tracks may be one of the required courses for everyone in 2024.

In 2024, Biteye will not forget its original intention, continue to select high-quality projects, and explore the code of wealth with partners!

The article comes from the Internet:Biteye 2024 Track Outlook

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