When I was talking about the Telegram bot track in the live broadcast yesterday, many people asked whether this track will become a climate track in the future? I thought about it and I think we can try to look at it from the following aspects:
- Since it is an application-based protocol, then consider whether the application is a rigid demand?
- Since it is an application-based protocol, do we need to consider whether it has a high moat?
- What is the effect of this track or protocol in a bull market?
Let’s look at the above questions together:
Is it a rigid demand? First of all, it is an established fact that dex is a rigid demand in this field, and some protocols in the bots track (such as unibot, etc.) themselves serve as dex functions, and can achieve transaction speeds many times faster than ordinary dex. I have personally experienced it and traded many times, and this is the most intuitive feeling;
Of course, it is not just about transaction speed. In addition, other functions, such as the function of sniping new coins and the function of copying transactions, are a good tool for many ordinary investors.
Therefore, from this perspective, the frequency of use will be very high, and it can be regarded as a necessary product for some players who like on-chain transactions (non-scientists).
Let’s look at the second point, what about the moat?
Since it is an application-based protocol, we need to look at the moat, that is, how likely is its technology to be replaced? Looking at the blockchain application market, there is no application that is completely irreplaceable. Even Uniswap, the originator of AMM, has so many fork alternatives (below version v3).
However, Uniswap is still the leader in terms of the number of users and transaction volume. It has to be said that Uniswap has been making rapid iterations and deepening its technology.
Therefore, from the perspective of moat alone, I think the moat of most web3 application protocol technologies is not very high. In other words, from the perspective of moat, it is not a plus point, but if we look at it from the perspective of network effect, unibot currently has a head effect;
Finally, let’s see what will happen in the bull market?
This kind of protocol, how will the bull market perform? We still have to look at it from the perspective of its functions and utility. There are many protocols in the bots track. Let’s still take unibot as an example. It can do fast transactions, copy orders, snipe new coins, and so on.
So will these functions be in greater demand in the bull market?
From my personal experience in the last bull market, there is a greater demand. The bull market itself is a stage where new products are everywhere and has a strong wealth-creating effect. So, from this point of view, this kind of efficiency-enhancing tool is at least a strong demand market for on-chain trading enthusiasts.
In summary, I think the future of this track is bright, and many protocols are worth trying. However, because many protocols have too high a short-term increase, I think it is still not a suitable time to buy at this stage, and I need to wait (except for short-term fluctuations). At the same time, I am also observing and experiencing other new protocols on this track.
