1. Characteristics of 100x Coins in the Last Bull Market
Track Distribution
In the last bull market, 61 100x coin projects were widely distributed. Among them, L1 projects accounted for the most, with 14 projects; followed by GameFi and DeFi. The high proportion of L1 is mainly due to the high transaction gas fees, relatively low TPS, slow transaction confirmation speed and other problems of the Ethereum public chain in the last cycle. A CryptoKitties game can almost drag down the entire Ethereum network. Therefore, many L1 blockchains have emerged to solve these problems.
The birth of 100x coin projects such as doge and shib in the Meme coin sector is related to Musk's words on Twitter. DeFi and GameFi sectors have also spawned many 100x coin projects, and the 100x coin projects in each round of market cycles are closely related to the current market hot narrative. At present, since the performance and transaction fee issues faced by L1 have been well resolved, the possibility of 100x coin projects appearing in the L1 track is relatively small.
Market capitalization ranking
According to the analysis, there were 61 100x coins among the top 600 coins by market value in March 2020. Among the top 100 coins by market value, there were 11 100x coins, accounting for 18%; there were 21 between the top 100 and top 300, accounting for 34.4%; and there were 22 between the top 300 and top 600, accounting for 36%. This shows that among the top 300 coins by market value, the probability of a 100x coin is relatively high, almost one in ten.
Holding time
Observing these 100x coins, we found that the holding period is generally more than one year. The buying time usually coincides with the low point of Bitcoin price, and the selling time coincides with the high point of Bitcoin price. In 2021, the price of Bitcoin showed a double peak trend, and the selling high points of these 100x coins were mostly in March, April and November.
Price Analysis
More than 50 of the 61 projects have buy-in prices below 1, with decimal places. This is because investors tend to buy tokens with lower prices, so that they hold relatively more. Every zero removed is equivalent to a 10-fold increase in price, reflecting the irrational behavior of people when trading.
2. The 100-fold coin track in the current bull market
The rise of Bitcoin ecosystem
In the current bull market, the Bitcoin ecosystem has performed well, and the basic protocol Ordinals has opened a new chapter in the Bitcoin ecosystem. The DeFi concept in the last bull market has been revived in this round of Bitcoin ecosystem. The Bitcoin ecosystem has a wider consensus, and as the basic asset of the crypto market, its potential for release far exceeds that of other public chains.
At present, there are many projects with hundreds or even thousands of times of return in the Bitcoin ecosystem, such as ORDI Inscription Token, which has increased by more than 10,000 times. However, the situation is still unclear, and every project has the opportunity to become a leader. In the sub-sectors of DEX, Lending, Staking, derivatives trading, and oracle, there are no obvious leading projects, and many are still in the concept speculation stage.
In addition to copying the craze of Ethereum DeFi, Bitcoin may also usher in a segmented track that is only suitable for its ecosystem. In addition, Bitcoin faces problems such as slow transaction confirmation and high gas fees, which provide development opportunities for Layer2 solutions. In the future, high-quality projects will also emerge in the Bitcoin Layer2 track. With the influence of factors such as the halving of Bitcoin production and the spot Bitcoin ETF, the Bitcoin ecosystem will become a fertile ground for nurturing 100-fold coin projects.
Solana Ecosystem: The Rising Hundred-fold Coin Project
The Solana ecosystem has performed well in terms of gas fees and TPS. This year, the TVL of the Solana ecosystem has increased significantly, most DeFi platform tokens have experienced explosive growth, and many projects with ten-fold potential have emerged. In addition, the Solana ecosystem has a strong airdrop, bringing rich returns to users.
The current leaders in the highly anticipated DePIN track basically choose to build on Solana, such as Helium, Hivemapper, Render and other projects. In addition, meme coin projects BONK and Silly are also products of the Solana ecosystem, attracting more users and funds. It is recommended to pay close attention to various innovative applications in the Solana ecosystem.
New tracks (DePIN, DeSoc, DeSci, etc.)
From the perspective of public chain ecology classification, Bitcoin and Solana ecology will become the main tracks for the birth of the most 100x coin projects. As the blockchain infrastructure continues to improve, new tracks such as DePIN, DeSoc, and DeSci will be born, combining traditional fields with blockchain technology to achieve more efficient operations.
This year, the DePIN track has performed well, with multiple projects achieving more than 10 times growth, and the DeSci track is also in good momentum. Cryptocurrency research institutions are optimistic about the development of the DePIN/DeSci track in 2024, and it is expected to spawn a batch of 100-fold coin projects. Investors should pay more attention to these tracks.
In short, in the current crypto market, selecting a potential 100x coin project requires comprehensive consideration of market trends, project characteristics, fundamentals, risk management, etc. You should remain cautious and rational, and continue to learn and improve your investment level to achieve long-term investment returns.
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