Written by: The DeFi Investor

Compiled by: Xiaobai Navigation coderworld

In today’s article, we mainly introduce the following three contents:

• at presentcryptocurrencyThe hottest narratives, and some noteworthy projects

• This week’s on-chain Alpha

• Latest developments in DeFi

The Hottest Crypto Narratives

In a bull market, getting on top of a few hot narratives early is enough to achieve success.

In 2021, for example, those who capitalized on the cult narrative managed to increase their investment returns by more than 10 times.

After two years of bear market, liquidity has recently returned to thecryptocurrencymarket.

Now is the perfect time to start trading the crypto narrative again now that market conditions have improved significantly.

Here are the current trending crypto narratives and my thoughts on their future potential:

1. Bitcoin DeFi + Meme Coin

Historically, BTC has always been one of the best performing currencies at the start of a new bull market. This time is no exception. The share of BTC has increased by 38% since the beginning of this year!

This has led to the emergence of new strong narratives surrounding projects building on top of Bitcoin or directly related to it.

例如，$ORDI（Ordinals），比特币上第一个以BRC-20开发的cryptocurrency，自10月初以来增值了超过15倍。

$ORDI is more of a meme coin as it doesn’t actually serve any real purpose.

Many others have recently been developed on Bitcoin in the BRC-20 formatTokenAlso performs very well, but the fact is that few projects have a hard-working team behind them developing new technologically innovative products.

However, there are also projects that are actually innovating on Bitcoin.

Stacks is a good example. Stack is essentially a BitcoinL2Project that enables deploying intelligence on BitcoincontractBe possible, with the goal of making Bitcoin DeFi the next big thing. As long as the price of BTC continues to be listed, and until the spot BTC ETF is approved, I expect projects built on Bitcoin will continue to be the center of attention.

But after this, market attention is likely to shift to other altcoins.

2. EncryptionAI

I first reported on AI Narrative in an article in early November.

Since then, manyAITokenThe performance exceeded all expectations, with TAO up 4 times and OLAS up more than 5 times. And there seems to be at least one other every weekAI代币脱颖而出。

The exact cause of this recent wild rally is unclear, but the drama of OpenAI in November, in which its CEO was abruptly fired, certainly contributed to it, indicating that there is huge demand for distributed AI.

Some AI tokens I’m paying attention to:

• TAO – Bittensor is creating a peer-to-peer distributed AI marketplace

• RNDR – Render Network is a leading provider of decentralized GPU rendering solutions

• PHB – Phoenix is a platform for decentralized AIBlockchainInfrastructure platform

• OLAS – Olas is a unified off-chain service network

As can be seen from the picture above, AI’s Google search traffic has reached an all-time high.

Because of this and all the hype surrounding AI, crypto-AI will likely become one of the best-performing narratives in the bull market.

3.Solana

Disclaimer: I hold ETH and SOL

EthereumL2has gained a lot of attention in the past few years.

但目前，L2BlockchainStill not as good as L1 like SolanaBlockchainScalable and more expensive. It's true that L2 is constantly improving, but it may still be a few years away before it can handle mass adoption.

As a result, L1 narratives have recently started making waves again. Solana has been one of the main beneficiaries, with SOL rising 3x in the past 40 days.

The reason for Solana's rise is simple:

• High quality technology:Solana is able to process thousands of transactions with a transaction fee of $0.0003, which is a big deal. The network has experienced more than 10 outages in the past, but the good news is that there has not been a single outage in the past 6 months

• loyalCommunity:Solana is crypto on TwitterCommunityOne of the most powerful projects with a fanatical community

• A thriving ecosystem: Whether it is DeFi, crypto games or NFTs, Solana has several very high-quality projects in each field. While it still has a long way to go to catch up to Ethereum, it's definitely on the right track

• Additionally, the Firedancer network upgrade will arrive in 2024, which will enable Solana to process up to 1 million transactions per second. In comparison, Visa is currently only able to process 24,000 transactions per second!

On top of that, many top ecosystem projects, including Pyth Network and Jupiter, recently announced airdrops for early adopters. All these airdrops attracted a lot of liquidity and users to the Solana ecosystem.

Solana has everything it takes to attract the attention of both retail and large investors. I wouldn't be surprised if SOL performs well in a bull market.

4.GameFi

Regarding GameFi, I haven't talked about it many times before, and frankly, most crypto games are extremely overvalued and not fun to play.

But as an investor, your goal is to predict what other people will be most interested in in the future. GameFi seems like an obvious investment in a bull market because it's easy for retail investors to understand.

Since early October, many GameFi tokens have significantly outperformed the broader market:

• IMX nearly tripled

• RON rose nearly 5 times

• PRIME triples

• CROWN increased 5 times

I expect the GameFi project to explode in popularity like it did during the last bull run.

Currently, I'm still actively researching the Web3 gaming ecosystem. At some point in the future, I may feature the GameFi projects I find the most interesting in my articles.

Alpha on the chain

Cryptocurrency fundraising activity is surging.

Source: @DefiIgnas

Cryptocurrency fundraising is seeing significant growth for the first time in many months.

Latest developments in DeFi

• Frax FinanceFraxchain testnet online. FraxChain is an upcoming innovative Ethereum L2 scheduled to launch in early 2024

• L2s built by Celestia for OP Stack using OptimismEthereum fallback introduced. Backup option added for L2s in case of Celestia outageSafetysex.

• Arbitrum DAO$23 million backstop approved to support ecosystem projects, including Vela Exchange, Synapse, Stargate, etc. Perpetual DEX received the largest allocation, with Gains Network receiving 4.5 million ARB, and Vela and WOOFi each receiving 1 million ARB.

• Injective has announced that it will release Volan, its largest mainnet upgrade ever, in a few weeks. There are no other details about it yet

• Hashflow announcedHashflow 2.0 and its deployment on Solana. Hashflow 2.0 features smart order routing for better trading quotes, as well as a new and improved user experience

• Jupiter, the largest Solana DEX aggregator,Announcing the airdrop allocation of $JUP. If you've ever used it, you may be eligible for

• Rage TradeV2 Perp aggregator beta version online. Rage V2 will aggregate the largest derivatives DEXs to quote the best trading prices

• Mantle released itsLiquidity Staking Agreement. This is Mantle’s second core product besides Mantle L2 network

• BaXiaobai Navigationlancer V3,A new AMM iteration with brand new features, pool types and tools has been announced. The upgrade is planned for the second quarter of 2024

• SEC delays decision on Grayscale’s spot $ETH ETF until January 25

• Aevo launchedaeUSD, a yield-generating stablecoin that can be used as collateral for derivatives DEXs. aeUSD allows users to earn an annualized return of 4.75% on their holdings and trade with 20x leverage

• Starknet FoundationSnapshot confirming its token airdrop

• EmpyrealSDK v1 is online, allowing developers to easily build dApps by leveraging it. The project also announced a collaboration with Banana Gun

That’s it, this article ends here, see you next time!

The article comes from the Internet:Grasp popular narratives: Recommendations for key projects in the current market

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