ArkStream Capital: 9 major tracks where web3 will explode in 2024

1. ETH L2 Summer is here as scheduled 

ETH+L2 It is essentially the largest isomorphic cross-chain ecological group. With the launch of Starknet/zkSync/Scroll/Blast, the competition between technology flow and market flow will intensify the market competition of L2.

Focus on/ Focus on

Starknet / zkSync / Scroll / Blast / Manta

2. Modularization is inevitable for the continuous iteration of public chain technology  ; 

/ Modular Blockchain, an inevitable iteration 

With the launch of Celestia, the market share of the DA layer shows signs of breaking away from the exclusive monopoly of Ethereum. At present, OP Stack, Polygon CDK, etc. all provide mature smart contract architectures, and the industry is exploring the DA of Bitcoin in conjunction with the BitVM paper on the forefront of Bitcoin. For example, the proliferation of sub-fields such as shared/decentralized sequencers and RaaS services marks the rapid iteration of blockchain towards modularization.

Follow the target

Celestia / Altlayer / Dymension / Avail / Fuel / Espresso

3. The BTCfi outbreak reached 10% of the liquidity release of Bitcoin  < /strong>

Fundamentalism + market hot spots will explode with energy beyond the imagination of technophiles. The value released by BTC liquidity is an unexplored resource. Exhausted gold mine. After the narrative of the inscription, there is a wave of BTC L2 and BTC applications. As Bitcoin's liquidity is expected to be released by more than 10%, BTCfi will carry a market of more than 100 billion US dollars.  

Focus on the target

Stacks / Merlin /  B² Network / Chainway 

4. Restaking’s consensus nesting doll Lego < /p>

In the modular blockchain narrative, there are very limited projects exploring the consensus layer. Among them, the consensus security provided by Bitcoin and Ethereum is recognized by the entire network. Two major projects. The proposal of Restaking can help emerging blockchain projects obtain appropriate security during the startup phase, thereby avoiding the adoption of unhealthy token mechanisms with excessive token emission inflation. The Bitcoin ecosystem here is dominated by Babylon, and BTC-related ecosystems are also gradually adopting Babylon, while Ethereum is led by EigenLayer, which has already derived the narrative of LRD (liquidity re-pledge derivatives?) from the narrative of LSD. On top of the LSD/LRD narrative, Pendle, which splits principal and interest, is a unique placeholder project in the ecosystem and continues to perform well in terms of TVL, user data and token prices.

Follow the target 

Eigenlayer / Babylon / Renzo / Puffer / Pendle

5. Gamefi’s second cycle 

/ The second cycle of Gamefi 

The large-scale popularity of MPC wallets has expanded user technology. Games with more playability after three years of iteration will have stronger user capture capabilities than their predecessors. Richer game content will increase the complexity of the economic system and gradually break away from the pure Ponzi attribute of the previous cycle.

Follow the target 

Illuvium / Space Nation / Lumiterra / Matr1x

6. AI+web3: in algorithm, computing power and verifiability The long-term narrative 

AI is the main narrative in the technology field, and its iterations will continue to inject vitality into Crypto. Onchain AI can use smart contracts to realize the automation and dynamics of machine learning and artificial intelligence. At the same time, blockchain technology provides transparent and verifiable solutions (such as zkML/opML) for all aspects of AI. In addition, key elements such as AI models, GPU computing power, data feeding and data labeling can be integrated into the blockchain.

Follow the target 

TAO / OLAS / JANCTION

7. Depin-physical flywheel DeFi, exponential growth 

/ Depin - a physical flywheel-like DeFi with exponential growth 

It is a new phenomenon-level online + offline token distribution and service provision model. In the cycle of gradual improvement of infrastructure, the application of Crypto will make Depin's network grow exponentially.

Follow the target

8. Social experiments in social tokenization are underway 

/ Social experiments in social tokenization are underway 

Although Friend.tech's attempt failed, the explosive power of social monetization has been demonstrated. At the same time, censorship resistance and security are social calls for Web3. Social protocols such as Lens/Farcaster still hold hope.

Follow the target 

Farcaster / Lens / Nostr

9. DeFi derivatives, ready to go