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Ten possibilities for Exploding the 2023 crypto market

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What are the exciting investment opportunities for Crytpo players in 2023?

Original title: Ten Possibilities to Explode the Crypto Market in 2023

Original article by Biteye core contributor Teddy, Fishery, Dddd, Louis, Hankerster

Biteye core contributor Crush

For the vast majority of Crytpo players, What are the exciting investment opportunities in 2023? The Biteye team has prepared 10 opportunities to follow and ways to get involved (you can follow them on Twitter @Biteyecn or add a little helper on wechat Biteye 01 Join the community communication).

01 Regenerative Web3

While the token economy has injected vitality into Web3, it has also brought some short-term fickleness to Web3. If Web3 can be combined with Regeneration, it will have stronger long-term value and be more easily accepted by mainstream society.

Regeneration is a new idea that goes beyond the concept of sustainable development, developing individual and environmental potential to build an ecologically harmonious system.

One example of Regenerative Web3 is the Gitcoin donation platform, which supports the development of public goods with positive externalities. The way for individuals to participate is to donate to the projects they are interested in. The possible income from donation mainly includes three parts:

1. Big Ecosystem rewards for Gitcoin donors (e.g. Optimism)

2. Rewards to donors from donated projects (such as Rss3 and Node)

3. Rewards for participating in the donation process and using products (such as the previous ENS Rewards for Gitcoin certifiers).

Gitcoin is currently running an Alpha round of donations, using a new decentralized donation contract. Single round donors with more than $10 can get an official POAP. Please keep an eye on it.

Another aspect of Regenerative Web3 that gets a lot of attention is to combine it with the carbon credit market and bring the transparency and liquidity of block chain into the carbon trading market. Representative projects include obtaining 70 million dollars of financing from Wework Founder of Flowcarbon, a carbon credit company.

The figure below covers the current Regenerative Web3 program:

浅谈引爆 2023 年加密市场的十种可能性

Source: Gitcoin

02 Decentralized physical facility network DePIN

The core of Web3 is decentralization, and Bitcoin and Ethereum are considered to be the most decentralized public chains. But if you look at the numbers below, you might have a big question mark about how decentralized blockchain is.

More than 50% of Bitcoin's computing power is controlled by just three providers, Foundry USA, AntPool and F 2 Pool

70% of Ethereum nodes are concentrated in 3 cloud services, AWS, Hetzner, and OVH

More than 50% of Ethereum pledges are concentrated in three centralized services, Lido, Coinbse and Kraken

Blockchain decentralized trust must be based on a truly decentralized network of physical facilities, so DePin is a track with strong rigor.

From the perspective of market space, traditional cloud computing has a market value of $5 trillion, while DePin's current market value of related tokens is only about $3 billion.

The picture below summarizes some of the DePIN Track related events:

浅谈引爆 2023 年加密市场的十种可能性

Source: Messari

03 Public chain and two layers

Because of Ethereum's impossible triangle problem, new public chains and tiers have attracted a lot of attention in order to solve the problems of capacity expansion and transaction costs.

Last year's public chain explosion, this year's focus will be on Optimism and optimism on Ethereum's second tier. And StarkNet) and modular blockchains (Celestia And Fuel, etc).

From the amount of investment and the heat of VC discussion, it can be seen that the D round of financing raised 100 million dollars at the valuation of 8 billion dollars, which is a clean ride in L2 circuit, but also zk circuit, Starknet is definitely worth everyone's attention. Then there's zkSync.

L2 is the most worthwhile to interact with Arbitrum at present, because there is a coin expected, but also may obtain ecological project airdrop.

In addition to Celestia and Fuel, OP has recently been moving towards modularity, with Op Stack building a modular base Lego (based on Ethereum).

浅谈引爆 2023 年加密市场的十种可能性

OPstack architecture

In the public chain Polygon And Cosmos Progress is also noteworthy.

Polygon's diversification strategy is progressing across the board: Tier 2, modularity, NFT, games, etc.

First up, Polygon's The technology is evolving very fast, and it's much faster than any other zk project. The performance of NFT is also good, such as Reddit NFT, Trump NFT and soon Starbucks NFT, many Web 2 companies and celebrities chose Polygon.

Last but not least, there are many native games on Polygon. Recently, many Web2 game companies have chosen Polygon chain as a carrier for their games.

The bottom line is that Polygon has the technology, the traffic from the Web2 brand, and a lot of games.

Last year, dydx, the largest APP at Layer 2 of Ethereum, decided to migrate to Cosmos ecosystem and build its own App chain, which also increased people's confidence in Cosmos development.

Building an App chain on Cosmos can achieve highly customized and high TPS, and Cosmos ecology is more decentralized (many projects are Fair Launch without VC participation).

The methods to participate in the public chain and layer two of unissued coins mainly include main network interaction, node establishment and test network interaction. Generally speaking, the possibility of test network interaction airdrop is lower than the first two.

Zero knowledge proof

ZK is a hot topic these days. Zero-knowledge proofs are used in the blockchain industry for privacy and capacity expansion.

In terms of capacity expansion, it is mainly zk-rollup expansion scheme. The main projects include Polygon zkEVM, zkSync, StarkNet and Scroll. You're familiar with Polygon, zkSync and StarkNet, so here's what's innovative about Scroll.

Scroll creates a decentralized ZKP market. Simply put, it solves the problem of zero knowledge proof operation speed by outsourcing the calculation process to GPU, FPGA, ASIC and other miners. Meanwhile, it realizes decentralization in this way.

The zkRollup space also needs to focus on how to break the TPS bottleneck (efficient computing ZKP) to achieve true capacity expansion. This problem needs to be solved by FPGA (programmable integrated circuit) or ASIC (customized integrated circuit) solution, but it will take some time.

Representative projects for privacy include Aztec and Aleo.

Aztec consists of a16z And Paradigm Aleo is the privacy L1 invested by SoftBank, Samsung, a16z, etc. Aleo aims to create the first public chain that uses zero-knowledge proof to solve privacy problems while ensuring programmable features.

When retail investors participate in ZK, they can participate in the interaction between unissued public chain and the two-layer main network, and establish the interaction between node and test network. Generally speaking, the possibility of test network interaction airdrop is lower than the previous two.

Ethereum liquidity Pledge

After the merger, Ethereum became a deflationary asset, pledging an effective yield of nearly 6%. . At the same time, After the Shanghai upgrade in 2023, users can cancel the pledge, which further reduces the risk of Ethereum pledge.

A low risk return of 6% is a very attractive investment for investors (although this rate will gradually decrease as participants increase).

From the perspective of market space, Ethereum's pledge rate is only 15%. , and both PoS Public chain BNB The pledge rate is up to 90%. , Ethereum pledge still has a lot of room for growth.

There are several providers that offer Ethereum liquidity collateral, so you can choose one. Chaineye.tools compares the yields of different providers and other dimensions, including liquidity, to help you choose.

浅谈引爆 2023 年加密市场的十种可能性

Source: Chaineye.tools

For Ethereum liquidity pledge, also look at distributed verification technologies DVT (for Project Obol and SSV) and secondary pledge (for Project EigenLayer).

EigenLayer, in particular, can be used to generate revenue for verifiers and allow other projects to leverage Ethereum's security and be highly innovative.

06 Web3 wallet

According to data analyzed at Devcon 6, the number of daily active users of all public chains is less than 0.05% of the current Internet. , visible Web3.0 & have spent Mass Adoption is still a long way off. One obstacle is the high learning costs of the most widely used EOA wallets.

Lowering the user entry barrier is the key to Web3 Mass Adoption.

MPC, or Multi-Party Computation, is an important privacy computing technology that is well integrated with blockchain digital signatures to protect users' private keys while lowering barriers to entry.

As an off-chain solution, MPC does not involve changes to the Ethereum consensus layer or contract layer, which makes it more feasible in the short term. At the same time, it brings Web2 level native experience to users, such as mnemony-free and multi-factor authentication.

Users can follow the MPC concept token, try to use the MPC wallet, and interact. May be associated with C 98. Wallet programs like Trust Wallet give airdrops to early adopters.

07 Web3 security

Web3 not only brings asset ownership to users, but also makes users directly face a series of asset security issues. According to the Slow Fog blockchain hacked event archive statistics. There were 303 security incidents in 2022, costing US $3.77 billion.

The number of security incidents increased by 15% compared to 2021. But the amount of money lost fell by 60%. , showing the trend of small and high frequency.

Among the 303 security incidents, attack methods mainly include attacks caused by flaws in project design, fraud techniques such as Rug Pull and phishing, and losses caused by private key disclosure, which are closely related to ordinary users.

Users can judge the probability of vulnerability in the project design by the reputation of the security auditor of the project, and use security products such as wallet anti-phishing plug-in and contract risk scanning to identify possible fraud techniques in the project.

Recommended companies/projects to focus on: Trails of Bits, OpenZepplin, ConsenSys, Slowmist, Peckshield, etc

The above audit companies have a good reputation in the field of code audit, which can make certain endorsement for the security designed by the project itself.

Scam Sniffer: Scam Sniffer: wallet security plug-in with good experience can identify interaction logic and alert possible interaction risks before users sign wallets

Go+ Security: A leading product in the field of contract risk scanning, the API call volume exceeds 2 million times a day, accumulating certain security data and capabilities, and being able to well identify possible risks of contracts before user interaction.

SlowMist: Provides security auditing, security monitoring, bug Bounties, defense deployments, security consultants, and other security-related services.

08 Onchain Game

Onchain Game and GameFi The fundamental difference is the degree of decentralization, license-free, composability, and interoperation.

Full-chain game is not only the game assets on the chain, the whole game logic also exists in the network in the way of contract, the game state storage, logic execution is also completely on the chain.

Even more valuable, any DApp that complies with the rules of the full-chain game contract can interoperate with it without a license, which will extend the composability of full-chain games to a larger ecological scope.

Not only each chain game can interoperate, but also chain game, DeFi, NFT and any DApp that may emerge in the future can interoperate with the whole chain game, which will break the business pattern of Web2 with monopoly as the business model, and give developers and users more perfect application experience and more imaginative creation opportunities.

As one of the most suitable scenarios for the application of the layer 2 network, On-Chain Game is a direction strongly promoted by StarkNet and OP Stack, and it is a good opportunity to participate in the full Chain Game testing in the early days.

09 New CEX

Readers may ask why they need to focus on less sexy tracks when CEX represents the past and will be dominated by the DEFI. After reading the analysis below, you may think differently.

FTX Binance was founded in May 2019, and it took two years to reach number two. Binance was founded in 2017, and it took three years to reach number one.

It can be seen that CEX has a strong outbreak and a fast rotation of rankings. Once funds start flowing into Crypto, CEX will be the first favorable track.

In addition, CEX platform token enabling attributes are much better than most copycat, valuation model is direct, value discovery route is clear, is a good target to focus on.

In addition, DeFi user experience and threshold is very high at present, the short and medium term can not shake CEX's dominance.

According to filings, FTX's internal controls were the most egregious of the round, with management brazenly grabbing user capital. Oddly enough, FTX still has users saying good things about it after it exploded.

We can see that FTX's unique set of features, such as sub-accounts, trading interface, margin method and so on, are really attractive to users. Therefore, user experience is particularly important at this track.

Note that the next bull market will not necessarily be an existing CEX, but rather an entirely new CEX, just as Binance and FTX came out of the blue and quickly overtook the established CEX.

Recently, it was reported on the Internet that former Sanjian founders Davies and Su Zhu had raised $25 million for a new CEX called GTX. Of course, the size and resources of today's old CEX are not the same as those of three years ago, and the first-mover advantage is more obvious. Therefore, both old and new CEX should be paid attention to.

In a bear market, we can mine the next potential breakout CEX from the dimensions of user experience (new features), compliance (regulatory relationships) and trading volume, contract opening (liquidity).

浅谈引爆 2023 年加密市场的十种可能性

Source: https://www.coinglass.com/

From BTC As can be seen from the Open Interest of contracts, the second and third positions are somewhat unexpected, which also confirms the characteristics of "fast rotation of CEX ranking" above.

In short, the CEX is the best entry point into the Crypto market for powerful and wealthy institutions, and it should not be difficult to build a head CEX with its own resources, following the successful experience of Binance and FTX.

As long as the market is hot, big capital is bound to pursue profits, and there is bound to be the rise of the next CEX. As retail investors, they just need to choose the target and wait for the wind to come.

10 NFT infrastructure

For a long time, most users who believed in the mass adoption of NFT invested in blue chip NFT in order to enjoy the industry dividends of the explosion of NFT.

With the gradual maturation of the NFT track, the subdivision track is more and more rich, NFT blue chip single product is no longer the only choice to invest in NFT.

From the perspective of value transmission logic, NFT market, NFT lending, NFT contract options, fragmented NFT, NFT valuation and other NFT infrastructure projects can enjoy the dividends of NFT industry more directly than investing in single NFT products.

We can quickly identify potential NFT infrastructure projects based on market share, innovation and user experience.

Blur

Paradigm and others invested $14 million in a new generation of NFT trading platform, which is different from OpenSea With a collectible tone set during NFT summer, Blur's user experience is more transactional, touting itself as "for professional traders".

Blur's transaction airdrop activity has helped Blur overtake OpenSea in terms of volume of NFT transactions over the past month, accounting for 42.54 % of the total NFT market share. (Figure below), became the largest NFT aggregate trading market on the current chain.

If you need to trade NFT recently, you may want to try Blur, there will be Ming brand airdrop reward.

浅谈引爆 2023 年加密市场的十种可能性

Image from NFTscan

BendDAO

BendDAO is currently TVL's highest NFT lending platform. Using the NFT lending function, users can not only mortgage their NFT in exchange for liquidity, but also realize many complex operations on the BendDAO platform with one click, such as:

NFT Down Payment

Buyers can put down as little as 60 percent with one click and buy NFT with a BendDAO mortgage.

Collateral Posting (List + Borrow + Sell)

NFT holders/sellers can choose to get up to 40% off the floor price with one click of the order.

BendDAO has completed the public fundraising and airdrop of tokens last year. In the public fundraising stage, a whale has secured a large amount of quota at the end of the stage. The chips are relatively concentrated and risks should be noted.

NFTperp

If you are bullish on BAYC upside, but do not have 80 Ethereum funds to buy, how to participate in trading opportunities? NFTperp provides the solution.

NFTperp is a decentralized NFT perpetuals contract platform that can be long or short a specified NFT floor price with leverage up to 10x.

This is very friendly to users who want to trade blue chip NFT with small amounts of capital, just like the exchange's perpetual contract mechanism, users have to pay or earn a capital fee after the NFTperp order.

The funds charge is settled hourly, when the funds rate is positive, the trader holding the long pays the trader holding the short, and vice versa when the funds rate is negative.

Note that the price of NFTperp's predictor is not taken from a single floor price of the major exchanges, but is determined by the actual transaction price of the NFT series over time.

Currently, the project is in the test and simulation trading phase, so give it a try.

Double Protocol

Double Protocol is a rental marketplace for gaming NFT. If the game project uses ERC customized by the Double team; 4907 agreement to issue NFT, then the NFT can be listed in the Double rental market.

The NFT holder can set the desired term and fee of the lease on the Double platform, and the tenant's right to use the lease will be automatically terminated when the lease expires. Currently up to 348 NFT series support ERC 4907 Of which there are many. Decentraland And star projects like ENS.

As the type of NFT gradually shifts from the picture type to the enabling type, the ability of leasing NFT will become a necessity and worth experiencing early.