Biteye 2024 Annual Track Outlook

On January 11, BTC ETF finally passed SEC approval. Today, 11 BTC ETFs were officially launched for trading on the US stock market. These two days can be described as a milestone moment in the history of encryption.

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

So in 2024, what tracks are we worthy of paying attention to? In this issue, we bring you an analysis and outlook of the seven major tracks in 2024 co-written by Biteye community partners.

BTC Ecology

Looking back in 2023, the main narrative of the BTC ecosystem is very obvious. 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 is superimposed on the narrative of BTC, allowing ORDI, the first inscribed asset within a year, to exceed $1000M in market capitalization.

As the number of transactions on the chain increases, the problems of network congestion and high transaction fees begin to appear. When popular inscriptions were Mint, the GAS fee of BTC was so high that To the point where ordinary users cannot accept it, BTC’s expansion needs have also become the stage of future narrative. So what are the directions we can focus on in the future of the BTC ecosystem?

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 leverages and extends Bitcoin's UTXO model, treating each Satoshi's UTXO as a specific Atomic token or digital object. $ATOM is the first token of Atomics. It is minted using the POW method. It is considered by the community to be more decentralized and in line with BTC fundamentalism. Due to its technical superiority, its current community consensus is strong.

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

Bitmap, Bitmap is the first Metaverse project in the BTC ecosystem, by mapping each transaction input in the Bitcoin block into a parcel (Parcel) , forming a neighborhood or area. Bitmap also proposed the BRC-420 protocol. BRC420 is an asset protocol based on Bitmap. By combining multiple inscriptions together to form a complex inscription, you can create a variety of assets from small characters to pets.

Other new protocols including CBRC, Veda, Rune, and Sat can be paid attention to.

2. BTC Infrastructure

The current mainstream BTC infrastructure projects are as follows. It can be seen that the future BTC infrastructure will be mainly divided into the following general directions:

• Cross-chain bridge

• IDO platform

• DEX Exchange

• Lending platform

• Trading market

3. BTC expansion plan

There are two main development directions of BTC expansion plan, one is the lightning network and the other is the side network. chain.

1) Lightning Network

Lightning The 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, aiming to achieve fast and low-fee transactions, allowing users to pay off-chain without confirmation, and the final settlement is in the main The Lightning Network can theoretically reach a processing speed of one million transactions per second.

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

2) Side chain

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

By anchoring the transaction, by packaging the transaction, the block information of the transaction on the Stacks chain is broadcast to the Bitcoin network to ensure the accuracy of the transaction. safety.

Stack has a complete execution environment (that is, any application that can be built on a chain 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 network security.

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

3) Others

In addition to the agreements mentioned above In addition, BTC expansion solutions worth paying attention to include RGB protocol, Bitcoin side chain project Rootstock ($RIF), BitVM, BEVM, etc.

Modular Blockchain and Data Availability DA

1. Modular blockchain

Module A centralized blockchain is a blockchain that specializes in a specific function (such as Execution, Consensus, Settlement, or Data Availability) and relies on other blockchains or services to perform the rest of the tasks.

This design can enhance the security of the project and save the project team energy to focus on developing core features.

Modular blockchain solves the performance bottleneck of traditional monolithic chains by decoupling various functions and components of the blockchain. Each module adopts Professional providers provide the possibility of customized blockchain in the form of combinations.

There are many projects worthy of attention in the direction of modular blockchain:

• Celestia ($TIA)

Celestia uses an off-chain method to implement DA, that is, through Reed- Solomon erasure coding and specialized Namespaced Merkle Trees structure ensure data availability, making DA cheaper and performed in a more efficient manner.

Although Celestia has issued coins, you can still indirectly participate in all modular projects using Celestia by staking in your account. Many projects in the Cosmos system have also recently Include Celestia staking accounts into the airdrop scope.

• 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 the ETH mainnet to Celestia in December last year, its transaction fees have been reduced by 99.8%. Manta’s TVL currently exceeds US$800 million, 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 own needs.

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

AltLayer has released the first phase of test network tasks and OAT on Galaxy. You can pay attention to subsequent test network tasks. It may empower OAT 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, aiming to become the best settlement layer based on EVM rollup on Celestia.

And Cevmos is the abbreviation of Celestia, Evmos and Cosmos.

2. Data availability layer

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

Data availability mainly refers to the public storage of transaction data providing verification services. A data availability layer ensures data is correct, protected and easily verifiable. For the current scenario, the most direct thing is that the data availability layer can greatly reduce the gas fees of project parties and users.

Currently, ETH L2 needs to upload Calldata to the ETH main network, which means that the ETH main network is responsible for DA. This is a huge expense.

From the substantial reduction in Manta's handling fees we mentioned earlier, it can be seen that simply from the advantage of saving money, coupled with today's market popularity, it is not difficult to see that DA is already the real demand of Web3 project parties, and the market prospects Very vast.

But problems also arise. When the cake gets bigger, it means competition between DAs, DA War. Many new DA projects will be launched in the future (the following are DA service providers, excluding users who use DA services):

• Avail, a modular blockchain project led by the Polygon team, is Celestia's main competitor. Currently in the test network stage, Avail can be regarded as a benchmark project against Celestia. It has launched an incentive test network for "node conflict", and users can participate in running nodes to obtain benefits.

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

• EigenDA is a low-cost, ultra-large-scale rolling data availability provided by Eigenlayer, and the security is protected by ETH Restaking. You can try participating in the project by participating in Eigenlayer.

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

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

Ethereum founder Vitalik has repeatedly defended his own DA technology. He has stated on social media many times that using third-party DA services is not considered The second layer of Ethereum sets up a moat for its own DA.

Essentially, DA is a project-oriented business and has little connection with the user level. Therefore, the soft power of the DA project side, such as first-mover advantage, Personal connections, voice, etc. may be more important than the technical details themselves. This year, DA War is going to be great.

DePIN

As expected in Biteye’s 2023 Outlook Report, DePIN has become a hot track, and the encryption circle seems to have found large-scale practical scenarios beyond finance.

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

DePIN is an important link between the virtual encryption circle and the real world. It can promote data security, effectively coordinate idle resources, and make our lives better at the same time. It also allows more people to see the practical value and charm of cryptocurrency.

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

As more and more users use products or services, the income of the project side increases, and the income can be used for market value management and further marketing, giving the product demand side and supply-side returns, motivating 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, and produced an introductory video on the DePIN theme.

Messari and Escape Velocity jointly divided the DePIN track into computing, wireless, energy, artificial intelligence, services and sensors in a research report.

The following introduces representative projects worthy of attention according to each sub-track, which are not investment suggestions. Readers can continue to explore and unearth more interesting projects that actually contribute to society.

• Calculation

Driven by machine learning and AIGC, the amount of data generated has increased exponentially, which has also driven the need for more secure decentralized storage. Filecoin ($FIL) is the leader in the storage field and ranks first or second in revenue in the DePIN field.

• 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 on the DePIN track financing list with Filecoin.

Sub DAO Helium Mobile ($MOBILE) provides users with preferential phone package services. Recently, it has become a dazzling star due to the rapid rise in currency prices.

• Energy

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

• Artificial intelligence

Render Network ($RNDR) is a decentralized GPU rendering network that connects idle GPUs to help render movies and animations, and cooperates with well-known companies such as Stable Diffusion and Netflix.

• Services

Braintrust($BTRST) is the first decentralized talent network, matching the needs of top freelance technical talents and large companies.

• Sensor

Hivemapper($HONEY) is a map network. Contributors collect street view images through Hivemapper's driving recorder and draw the latest maps.

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

• One ​​is to purchase related products and equipment as a supplier Services, through the tokens obtained are rewarded for capital recovery and profit.

• Another way is to purchase related tokens, because during the bull market the project will use the income from selling equipment to Stimulate price comparisons to encourage people to continue purchasing products and equipment, and quickly promote the construction of ecological networks.

However, it should be noted that the market making willingness of the DePIN track will be stronger, and the currently observed token prices often show skyrocketing In the case of a sharp decline, investors can consider swing trading, entry in batches, or grid trading.

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

New public chain and Ethereum ecology

The public chain is the backbone of the encryption 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 attention in 2024. (We have already introduced the modular blockchain in the first section.)

1. Parallelism EVM Public Chain

Recently, Paradigm's CTO Georgios proposed that 2024 will be the "Year of Parallel EVM", and Paradigm is also conducting active technology internally. explore.

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

If EVM can implement parallel computing, the network processing speed and system throughput will be greatly improved, and the performance and efficiency of EVM will be improved. There are two main solutions currently implemented:

1) Independent design of parallel EVM public chain and

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

Items worthy of attention:

• Sei ($SEI)

Sei is a Layer1 specially designed and optimized for trading , using an optimistic parallel scheme, it is expected to implement parallel EVM in the latest V2 version. At the same time, Sei also allows Cosmwasm smart contracts to interact with EVM smart contracts, providing a more diverse execution environment.

• Eclipse

Eclipse is a modular rollup platform. The biggest feature is that it brings Solana to Ethereum, that is, it uses the parallel computing Solana virtual machine as the execution layer, Ethereum as the settlement layer, and Celestia Implement the DA layer, use Risk Zero for fraud proof, and create 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 Layer 2 based on OP rollup, dedicated to using Aptos as a second-layer execution layer. The Move series Aptos also had great glory for a while, and it is hoped that it can be used again on the parallel EVM track. flash.

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

2. Ethereum Ecology

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

1) Re-pledge narrative

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

EigenLayer is an Ethereum-based middleware protocol that introduces the concept of re-staking, allowing Ethereum nodes to convert their pledged ETH or LSD tokens Pledge it to other oracles, bridges, and public chains again, allowing them to enjoy Ethereum-level security at a lower cost, while users can gain multiple benefits.

Recently, the market has also seen the exchange of liquidity pledged in Eigenlayer into a new layer of liquidity tokens, LRT, which has derived re-pledge liquidity. How to play the matryoshka LRTfi. Projects worthy of attention include:

• Pendle ($PENDLE)

Pendle will soon launch ether.fi's liquid pledge token eETH. Users can deposit eETH into Pendle's LP and obtain EigenLayer points, EtherFi points and multiple pledges. income.

• Swell

Swell is an LSDfi protocol. Users can pledge ETH to obtain pearls and pledge income. Pearls are linked to airdrop tokens. It will soon add a re-pledge function to their swETH, allowing users to obtain rswETH after staking ETH and release ETH. liquidity and increase additional income.

• Puffer Finance

Puffer is a liquidity staking protocol based on Eigenlayer. Through its own Secure-Signer tool and RAV technology, it solves the slashing problem in Ethereum and Eigenlayer networks, providing participants with low Double reward for risk, with plans to launch the mainnet in 2024.

2) Cancun upgrade

January 4 In the evening, the 178th Ethereum Core Developers Meeting made the final confirmation of the testnet Dencun upgrade schedule. The testnet activation time for the Cancun upgrade will begin 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 handle.

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

After the Cancun upgrade, L1 will store the data submitted by L2 in a new location called "blob". The storage cost of blob is cheaper and the space is larger. .

What we need to note is that L2’s revenue source is essentially the Gas fee charged to users minus the Gas fee paid to Ethereum. After the Cancun upgrade, The fees L2 pays to Ethereum are greatly reduced, that is, L2's income level can be significantly increased.

So the Cancun upgrade is essentially beneficial to all Layer 2 that use Ethereum as the data availability layer, including Optimisic rollup, ZK rollup and other related AllLayer2.

In the next quarter, the related targets of Cancun's upgrade will all have certain favorable fundamentals.

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

Secondly, small and medium-sized Optimisic rollups, such as MetisDAO ($METIS), Boba ($BOBA) and other Layer 2 are also beneficiaries. MetisDAO also plans to do decentralized sorting Layer 2 of the device has dual narrative overlays that are also worthy of attention.

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, it will need to be stored by other storage service providers according to actual needs. This will indirectly increase the decentralized storage track. The demand is also a benefit for the decentralized storage track.

GameFi

Gamefi track currently has two classifications of games:

1. Full-chain games (FOCG)

< p style="text-align: left;">2. Non-full chain games (nft assets + off-chain games)

1. Full-chain game

Full-chain game refers to the state storage and execution logic of the game in addition to the assets on the chain It is also on the chain, so compared to non-full-chain games, full-chain games are more decentralized and more combinatorial.

However, the full-chain game is still in its 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. Possible rewards.

The two main game engines on the Full Chain Game (FOCG) track:

1. MUD

2. Dojo

The former Belongs to Op-stack, which is in Starknet.

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

The game currently running on MUD, Sky Stife, is worth paying attention to. Those who did not get the Pass last season should not miss the new season this time. The season starts on January 8th.

Dojo was proposed by the 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 .

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

Projects worthy of attention include the Loot Realms series:

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

2. Loot Survivor (text-based Roguelike game) and Shoshin launched by Topology. The game has been launched on the main network and can be tried on the test network. Playing the game requires consumption 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 fall into this category.

Although the NFT market has been cold this year, NFT in the game sector is very hot. A project is generally analyzed from three perspectives:

1. Technology

2. Operation (breadth)

3. Community (depth)

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

Projects worthy of attention: Matr1x

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

Of course the game also faces challenges: how to attract web2 users? Because the number of web3 users is limited, and most of them only care about revenue rather than games, the project needs to attract web2 players to make the game last longer.

Matr1x’s approach is: Douyin, live broadcast on Station B, and hold e-sports competitions. Judging from the game data, his proportion of web2 players is not low.

There are two ways to participate in Matr1x:

1) Stake NFT to obtain tokens

2) Participate in subsequent game activities or public betas

Gamefi If the wind comes, non-full-chain games will receive attention first. When the entire ecological funds overflow, full-chain games will be brought up.

AI&Crypto

According to a report by Binance Research, financing for artificial intelligence-related Web3 projects will grow strongly in 2023, reaching $298 million, far exceeding the total financing amount of AI-related projects from 2016 to 2022.

At the same time, AI-related tokens also outperformed BTC and ETH as a whole in 2023. 2023 can be said to be the first year of AI for the entire world. With the The importance of AI in the Web2 world is gradually increasing. We should also think about how AI and blockchain can be combined, what are the directions of combination, and finally which projects can we focus on.

1. Decentralized computing network

With the increasing demand for AI models, whether it is a large language model or an AI model customized according to demand scenarios, the improvement of AI intelligence cannot be separated from the most essential link.

A lot of training, and the essence behind a lot of training is a lot of 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 equipment as a cluster 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 the training of AI models. This It is one of the current exploration directions of the combination of AI&Crypto.

Web3’s decentralized mechanism allows AI to become more democratic from the lowest level. By deploying, training and using AI in a decentralized manner, users’ While data privacy can be better protected, there are also opportunities to get rewards for sharing data.

However, it should be noted that for model training, the decentralized computing power network has the disadvantage of communication delay due to the distributed distance, and the nodes need Spending more time waiting for data transmission is not suitable for models that pursue training efficiency.

2. AI&Crypto Application

In Web2, well-known AI applications include the chat robot Chat GPT, the AI ​​search engine New bing, the image generation tool Midjourney, the virtual character Character AI, and so on. 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 On-chain data and twitter, reddit, Lens, Farcaster, Mastodon and other data sources are added for training to build a chat bot or AI assistant that is more Crypto Native and more tailored to the needs of Crypto players.

Or like 0xScope, it builds an AI cognitive model based on the knowledge graph. Users can obtain and understand on-chain data through the AI ​​trading assistant Scopechat. Conduct investment and trading analysis.

2) In addition, generative AI can also bring new narratives to Web3 applications, such as implanting virtual people and characters in games, social networking and other ecosystems AI and other cutting-edge elements develop brand-new gameplay.

It is not difficult to see from the two AI-related projects recently launched by Binance that the world's largest exchange is very optimistic about the future AI track. The two projects are AI image generation and AI virtual idol. These are explorations of the integration of AI in the application layer of Crypto.

In addition to the projects mentioned above, you can also pay attention to the following projects:

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

2) FetchAI ($FET): a blockchain-based machine learning platform designed to allow 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, and proposes a Proof of Useful Work (PoUW) method to improve The speed and efficiency of decentralized networks are designed to provide computing power for machine learning, fintech, biopharmaceuticals and more.

4) Grass: a decentralized incentivized network crawling network where users sell their unused network resources to companies and experiments through Wynd Network Grass's buyer companies seek unused network 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 based on PoW that provides GPU computing power rental services. Users can rent their own GPUs for tasks such as AI training, video rendering, and cryptocurrency mining, and provide them to individuals and institutions in need of computing 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 opens the Chorme plug-in account on the computer. Users can obtain points by downloading and registering and hanging up via Wifi. After subsequent projects issue tokens, they can obtain tokens based on the points.

(Note: Currently, most AI&Crypto projects are in the exploratory stage, and there are combination projects for various application scenarios, but whether the project itself has real needs , need to be screened carefully.)

MEME

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

Meme can be a spelling error (HODL), a catchphrase (GM, LFG);

Meme can be a kind of counterculture (Doge, RFD);

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

The characteristic of this track is that it does not rely on traditional business models or specific technical applications, but relies on the consensus and cultural attributes of the community. MEME track The value of a currency depends largely on community recognition and emotional connection, rather than traditional asset valuation models.

$PEPE emerged from the bear market, $BITCOIN with strong meme attributes, $BONK ushered in Niu Junior High School and $Silly, the founder of Solana called for orders , we can see that strong MEME coins often have the following characteristics:

1. Cultural resonance and community-driven

Meme coins are often combined with popular Internet culture. Examples include Dogecoin ($DOGE) and Shiba Inu Coin ($SHIB), which are derived from popular internet memes or cultural symbols.

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

2. Social media and celebrity effect

Social media The influence on meme coins is huge, and tweets about Silly Dragon ($SILLY) from celebrities such as the founder of Solana can significantly boost its market cap. This kind of celebrity effect and the communication power of social media can greatly increase the popularity of a certain currency and the FOMO of investors in a short period of time.

3. News reports and media attention

Meme Coin Due to their unique appearance and sometimes bizarre stories, they are often the focus of news reports, which further increases public attention on these coins.

One ​​thing we need to know about Meme is how to judge the consensus strength of Meme, that is, how many people are willing to pay for a Meme in the market.

In the early stages of Meme, we often can only rely on community activity, IP concepts (hotness), project team strength, cultural background, etc. Conditions are used to judge whether it has investment value. This is also the biggest risk of early investment in Meme. It will either return to zero or become rug.

When a Meme successfully "lives" for a period of time, we can try to judge whether the Meme is worth it from multiple dimensions such as the number of currency holders, trading volume, and K-line support. Investment (e.g. more and more people mentioning the meme on Twitter).

As Meme is known by more and more people, its consensus is also constantly strengthening, and the risk of zeroing and rug will gradually decrease. Of course, Meme earnings at this time were also discounted. As the saying goes, risks and benefits coexist.

Overall, the Meme track represents a new direction in the diversification and cultural integration of the cryptocurrency market. It is not just a speculative direction, but also a vehicle for cultural expression and community consensus. As more cultural elements and creativity are added, the Meme track is expected to continue to develop, but the risks it brings cannot be ignored.

Therefore, for ordinary investors, the most important thing is to understand the cultural attributes of Meme coins and get early chips, and to develop a logic that they are familiar with. Judgment and execution are the keys to participating in the Meme track.

Conclusion

Finally, 2023 is a year of change and innovation in the blockchain and cryptocurrency space. 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 enter 2024, we believe these developments will continue to influence the direction of the industry. Staying tuned and learning, rationally analyzing market dynamics, and exploring new tracks may be one of the required courses for everyone in 2024.