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Since the beginning of 2024, the crypto market has generally lacked an innovative narrative. Despite the continuous emergence of new technologies and tools, most of them have performed mediocrely, except for some popular tracks. This is affected by the decline in the crypto market and also reflects the lack of innovation in Web3.
However, the crypto market often has cases where new narratives suddenly break out after lurking, such as the transformation of the inscription sector from the bottom to the peak last year. In addition, market funds usually prefer new concepts. Under the investment logic of "speculating on new things instead of old things", more attention should be paid to new things. Based on this, I have sorted out the hot narratives and new technologies since this year to help everyone prepare for wealth opportunities when they come.
1. Bitcoin Ecosystem
1. Bitcoin Runes
Bitcoin Runes is a protocol for creating fungible tokens on the Bitcoin blockchain. Unlike BRC-20 and SRC-20 tokens that also run on the Bitcoin blockchain, Bitcoin Runes do not rely on the Ordinals protocol and are simpler and more efficient. They leverage established Bitcoin blockchain models such as the UTXO model and the OP_RETURN opcode.
Comparison of Bitcoin Runes and BRC-20 Tokens:
Operating model: Bitcoin Runes are based on Bitcoin’s unspent transaction output (UTXO) model, while BRC-20 tokens rely on the Bitcoin Ordinal Protocol, which allows data to be attached directly to a single satoshi (sat).
Token transfer: Bitcoin Rune uses a transfer mechanism whereby a transaction creates a new set of UTXOs based on the data stored in the OP_RETURN field of a Bitcoin transaction. BRC-20 token transfers require the creation of a new Inscription for each transaction.
Token Minting: Runes can be minted through an open or closed minting process, and developers can also choose to pre-mine. In contrast, BRC-20 tokens can only be minted through an open minting process, which limits the flexibility of the initial distribution method.
Governance: The Bitcoin Rune protocol is compatible with the Bitcoin Lightning Network and supports Lightning Network clients and Simple Payment Verification (SPV) wallets. BRC-20 tokens are only available with wallets that support the Ordinal protocol.
2. Fractal Bitcoin
Fractal Bitcoin is a Layer 1 solution designed specifically for scaling the Bitcoin network. Unlike other scaling technologies, Fractal Bitcoin uses a tree-like recursive scaling layer structure (BCSP, i.e., blockchain scaling protocol) to increase Bitcoin's transaction processing speed and efficiency by adding layers.
In short, Fractal Bitcoin is a forked version based on Bitcoin Core v24.0.1, which can be regarded as a small Bitcoin chain with adjusted parameters. The main differences are block time, difficulty adjustment mechanism, total token amount (the total token amount of Fractal Bitcoin is set at 210 million), initial block reward, halving cycle, and activation of OP CAT opcodes.
Ecological projects: Cat Protocol, Pizza Swap, Uni Worlds, Satspump.fun, Infinity AI.
3. Bitcoin Stamps
Bitcoin Stamps are digital art generated through the Bitcoin Stamp Protocol, which aims to integrate digital art into the Bitcoin blockchain. The protocol encodes data in unspent transaction outputs (UTXOs) and ensures the immutability of the data by permanently adding it to the blockchain.
There are two main protocols used for Bitcoin stamps: SRC-20 and SRC-721.
SRC-20: The SRC-20 token standard is based on the open Counterparty protocol, which embeds arbitrary data into spendable data transactions, which is different from the ordinal protocol that places data in the witness part.
SRC-721: The SRC-721 standard reduces the cost of creating detailed NFTs. The standard uses the Bitcoin Stamp Protocol to store images in layers, reducing file size by indexing color palettes for each layer, among other methods. These layers can be combined into a single NFT, producing high-quality images without increasing costs.
2. TON Ecosystem
The Open Network (TON) is a decentralized and open Internet platform consisting of multiple components. These components include: TON Blockchain, TON DNS, TON Storage, and TON Website. TON Blockchain is the core protocol that connects the underlying infrastructure of TON to form a larger TON ecosystem.
TON is designed to achieve extensive cross-chain interoperability and operate within a highly scalable and secure framework. It is designed to process millions of transactions per second (TPS) and ultimately hopes to support adoption by hundreds of millions of users.
The TON blockchain is conceived as a distributed supercomputer or “superserver” designed to provide a variety of products and services to advance the decentralized vision of a new internet.
Ecological Projects:
Memecoin：Notcoin、DOGS、Catizen、Hamster Kombat
DeFi：DeDust、STON.fi、Tonstakers、Stakee、Whale Liquid、EVAA
Oracle: RedStone
3. Re-pledge
Restaking is a way to pledge the same tokens on the main blockchain and other protocols at the same time to earn rewards, which not only ensures the security of multiple networks, but also provides users with additional rewards to protect other protocols and thus bear higher penalty risks (Slash). Restaking is a decentralized staking asset management method pioneered by EigenLayer.
Compared to liquidity staking, re-staking further supports users to stake assets multiple times on their original blockchain and other protocols. For example, EigenLayer allows Ethereum stakers to reuse their staked ETH to protect other applications built on the network. Stakers can choose additional services they want to obtain with their currently staked ETH to earn additional income. In return, they agree to grant EigenLayer additional slashing rights on their staked ETH (this is in addition to the slashing rights of the underlying Ethereum staking contract).
Essentially, the re-staking protocol provides a set of smart contracts that allow staked tokens to be reused and staked again (i.e., re-staking) to provide security for applications outside of the original blockchain.
Representative projects: EigenLayer, Ether.fi, Puffer Finance, Swell, Renzo, AltLayer.
Restaking projects on other chains: Picasso (Solana restaking) and Babylon (Bitcoin staking).
4. New forces of MEME coin
According to CoinGecko data, on September 14, 2023, the total market value of global cryptocurrencies was approximately 1.34 trillion, and the total market value of the meme sector was approximately 20.8 billion. By September 30, 2024, the total market value of global cryptocurrencies increased to approximately 2.242 trillion, while the total market value of the meme sector reached approximately 55.4 billion (US dollars).
In addition, there are currently 8 meme coins with a market value of more than US$900 million.
Launch Platform:
Solana Ecosystem Project: Pump.fun
Ethereum Ecosystem Project: Ethervista
TRON Ecosystem Project: SunPump
Bitcoin ecosystem projects: Ticket.fans, Burve Protocol
Moonshot by Dexscreener
Base Ecosystem Project: We.Rich
Popular currencies: Neiro, WIF, Turbo, MGAG, TRUMP, Kamala Horris (KAMA), MooDeng, TERMINUS.
5. Token Standards
1. ERC404 protocol:
The ERC404 protocol is an experimental hybrid ERC20/ERC721 implementation with native liquidity and fragmentation features. This means that the protocol allows NFTs to be split and traded like tokens, and is a currency-to-graphics exchange protocol.
Pandora is the first project built on the ERC-404 token standard, which aims to mint 10,000 Replicant NFTs, which are associated with 10,000 ERC-20 tokens. After purchasing PANDORA tokens, users will receive the minted NFTs in their wallets. The token reached a peak price of $32,000 per unit on February 9, and the current price is only $1,500.
Currently, the ERC-404 standard is still in the experimental stage, so there are many challenges to overcome before it becomes a mainstream technology. This new standard will inevitably introduce large-scale technical upgrades, but it may also cause security issues due to potential defects and vulnerabilities.
2. Atomicals Protocol:
Atomicals is a free, open-source protocol that enables the creation of digital objects on Bitcoin and other blockchains that use the same unspent transaction output (UTXO) model. Each digital object is called an "atom" and is essentially composed of a chain of digital ownership that follows a simple set of rules.
The Atomicals protocol can be used to mint, transfer, and update a variety of static or dynamic digital objects, including fungible tokens and non-fungible tokens (NFTs). Atoms are generated through Bitcoin transactions, and the protocol is compatible with any Bitcoin wallet without the need for additional chains, Layer 2 networks, or third-party services.
ARC-20, built on the Atomicals protocol, is an experimental token standard for fungible tokens (coloring ratios) on the Bitcoin network.
6. Zero-knowledge solution
ZKThreads
Layer 2 developer StarkWare and Cartridge have teamed up to launch a new scaling framework called ZKThreads, which aims to improve the scalability of decentralized applications on the Layer 2 network Starknet through execution sharding enabled by zero-knowledge proofs. This framework is based on StarkWare’s sharding scaling vision proposed in 2021.
ZKThreads is a zero-knowledge framework focused on improving DApp performance and scalability. It leverages the power of Starknet to create a standardized environment for developing and running interoperable applications on blockchains.
In terms of data processing, ZKThreads aims to store state and transaction data off-chain and use zero-knowledge proofs (ZKP) to verify transactions. This is different from traditional zero-knowledge rollups (zk-rollups), which move computations off-chain but still store transaction data on-chain.
In terms of interoperability, ZKThreads prioritizes interoperable applications, reduces fragmentation, and ensures that various DApps interact smoothly in the same ecosystem. Other solutions such as zkEVM focus more on compatibility.
In terms of verification mechanism, ZKThreads' verification process includes generating STARK proofs to verify the correctness of batch transactions and state changes, and verifying these proofs according to the specification state of the DApp. In contrast, zero-knowledge summaries such as zkSync use zk-SNARK or zk-STARK to create cryptographic proofs for on-chain verification.
VII. Summary
New narratives are relatively rare this year, with only the MEME concept and TON ecosystem performing well. Other narratives, such as Bitcoin ecosystem, re-staking and expansion plans, lack obvious wealth effects. Some analysis agencies pointed out that there are many ecological projects in various tracks of the current crypto market, but liquidity is limited, resulting in new narratives still needing more financial support to develop rapidly. Therefore, investors should plan ahead, because wealth often belongs to those who are prepared.
