As the crypto market gradually picks up in 2024, new signs of a bull market are emerging. From the perspective of track layout and market hotspots, the following tracks may become the core driving force of this round of bull market:
1. Layer 2 Scaling Solutions
Core logic: The congestion and high fee problems of the Ethereum network have existed for a long time. The Layer 2 (L2) solution brings convenience to more users by increasing transaction speed and reducing costs.
• Representative projects:
• Arbitrum (ARB): Currently ranks among the top in terms of locked value on Ethereum, and its ecosystem is becoming increasingly rich.
• ZKSync (no coin issued): Based on zero-knowledge proof technology, it supports more efficient expansion and privacy protection.
• Optimism (OP): Optimized scaling solution, collaborating with several well-known projects.
• Potential Analysis:
• Layer 2 is key to solving Ethereum's scalability issues, and the demand from users and projects is gradually increasing.
• With the growth of demand for DeFi, NFTs, etc., the L2 ecosystem may experience explosive growth.
2. Real World Assets (RWA, real assets on-chain)
Core Logic: Tokenizing real assets through blockchain technology connects traditional financial assets (such as real estate, bonds, artworks) with the crypto market.
• Representative Projects:
• MakerDAO (MKR): Supports collateral for RWA, providing a new source of assets for decentralized finance.
• Centrifuge (CFG): Focuses on bringing real assets on-chain, helping small and medium enterprises obtain financing.
• Ondo Finance: Committed to bringing bonds and other traditional financial products on-chain.
• Potential Analysis:
• The market size of real assets is huge, and RWA can attract more institutional funds.
• The volatility of the crypto market can be mitigated by introducing more stable traditional assets.
3. DeFi 2.0
Core Logic: Compared to the DeFi boom of the last bull market, the new generation of DeFi projects focuses more on capital efficiency, liquidity optimization, and user experience.
• Representative Projects:
• Curve Finance (CRV): An established DeFi project that enhances yield through liquidity pool upgrades.
• GMX: On-chain derivatives exchange supporting perpetual contract trading.
• Aura Finance: Focuses on liquidity aggregation, optimizing DeFi capital utilization.
• Potential Analysis:
• DeFi 2.0 projects are starting to address early liquidity shortages, unstable yields, etc., attracting more users and funds.
• Enhancing market competitiveness through innovative economic models (such as liquidity incentives and yield dividends).
4. ZK (Zero-Knowledge Proof) Technology Track
Core Logic: Zero-knowledge proof technology can provide technical support for privacy protection and efficient scaling, serving as an important breakthrough in blockchain applications.
• Representative Projects:
• Aleo (unlaunched): Focuses on privacy computing, supporting complex smart contracts.
• Mina Protocol (MINA): Claimed to be the 'lightest blockchain in the world', using zero-knowledge proofs to ensure privacy.
• StarkNet (unlaunched): Zero-knowledge scaling solution based on Ethereum.
• Potential Analysis:
• ZK technology provides privacy protection and performance enhancement for decentralized applications, with a wide range of application scenarios.
• From DeFi to enterprise-level applications, the demand for ZK technology will continue to grow.
5. Web3.0 Application Track
Core Logic: Web3.0 will reshape the internet architecture, and decentralized applications (DApps) will give users more data control, creating new economic models.
• Representative Projects:
• Filecoin (FIL): Leading project in decentralized storage.
• ENS (Ethereum Name Service): Decentralized domain name service.
• Lens Protocol: Decentralized social network infrastructure.
• Potential Analysis:
• As users become more concerned about privacy and data sovereignty, Web3.0 related applications are gradually entering the mainstream.
• Decentralized storage, social, and identity systems are core areas of Web3.0, with vast growth potential in the future.
How to choose a track?
1. Mainstream Tracks (Layer 2, DeFi): Lower risk, suitable for conservative investors.
2. Innovation Track (RWA, ZK): High technical barriers but great potential, suitable for mid to long-term layout.
3. Web3.0 Applications: Focus on future trends and select quality projects with practical application scenarios.
Investment Suggestions:
• Diversified Layout: Combine risk preferences, reasonably allocate funds to mainstream tokens (such as ETH, BTC) and potential track tokens.
• Focus on Hotspots: Closely track track dynamics and participate in early potential projects (such as testnets or airdrops).
• Long-term Holding: The volatility in a bull market can be significant, requiring patience and a long-term perspective.
This bull market is a test of investors' patience and vision; choosing promising tracks and projects may be the key to achieving wealth leaps!