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2024 Track Outlook

Biteye

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This article introduces the 2024 Cryptocurrency Market Analysis and Outlook for Seven Major Tracks.

Original Title: "Biteye's 2024 Track Outlook"

Source: Biteye

On January 11, the BTC ETF finally received approval from the SEC, and today 11 BTC ETFs officially began trading on the US stock market. These past days can be considered a milestone moment in crypto history. With the ETF bringing BTC into a larger mainstream world and the upcoming BTC halving event at the end of March, 2024 is undoubtedly a crucial year for the crypto track.

So, in 2024, what tracks should we pay attention to? In this issue, we bring you an analysis and outlook on the seven major tracks of 2024, collaboratively written by Biteye community members.

01 BTC Ecosystem

Looking back at 2023, the main narrative of the BTC ecosystem was clear. Starting from March 8, when Domodata proposed the BRC20 standard, a series of inscriptions quickly flourished on the BTC main chain. The narrative of new assets combined with BTC's narrative allowed the first inscribed asset of the year, ORDI, to surpass a $1000M market cap.

As on-chain transactions increased, issues of network congestion and high transaction fees became apparent. When popular inscriptions were minted, BTC's GAS fees rose to a point where ordinary users could not accept them. The need for BTC scalability also took the stage in the future narrative. So, what directions can we focus on in the future of the BTC ecosystem?

1. BTC New Asset Issuance Protocol

Atomicals, an optimization project for Ordinals and BRC20, addresses the overreliance of BRC20 on centralized off-chain indexes. It utilizes and extends the Bitcoin UTXO model, treating each satoshi's UTXO as a specific Atomical token or digital object. $ATOM is the first token of Atomicals, minted through POW, considered more decentralized by the community, aligning with BTC's originalist ideology. Due to its technical superiority, there is currently strong community consensus.

SRC-20, a token standard developed based on the Stamps protocol, BTC Stamps invented by @mikeinspace. Its main difference from Ordinals is that Ordinals' image/text information is stored in witness data, while Stamps' data is stored in transaction outputs. This difference leads to an essential feature of Stamps: they can exist on the BTC chain forever, and full nodes must sync this data.

Bitmap, Bitmap is the first metaverse project in the BTC ecosystem, mapping each transaction input in a Bitcoin block to a land parcel (Parcel) to form a block or area. Bitmap also introduces the BRC-420 protocol, where BRC420 is an asset protocol based on Bitmap that combines multiple inscriptions to create a complex inscription, creating a variety of assets from small characters and pets.

Others include CBRC, Veda, Rune, and Sat, which are new protocols to watch.

2. BTC Infrastructure

The current mainstream BTC infrastructure projects are as follows, showing that the future BTC infrastructure will mainly be divided into the following major directions:

· Cross-chain Bridge

· IDO Platform

· DEX Exchange

· Lending Platform

· Trading Market

3. BTC Scalability Solutions

There are mainly two development directions for BTC scalability solutions: the Lightning Network and sidechains.

1) Lightning Network

The Lightning Network, proposed by Joseph Poon and Tadge Dryja in 2016, is one of the Bitcoin Layer 2 solutions.

The Lightning Network consists of payment channels and aims to achieve fast and low-fee transactions, allowing users to make off-chain payments without confirmation, with final settlement on the main chain. In theory, the Lightning Network can achieve a processing speed of millions of transactions per second.

The Taproot Asset protocol is an asset issuance protocol proposed by the Lightning Labs development team on October 19, 2023. The main platform for issuing and trading Tarproot Asset is currently Nostr Aeest. Its dual-token T($TREAT & $TRICK) is mainly used for staking in initial offerings.

2) Sidechains

Stacks($STX): Stacks is currently the most developed L2 solution in the BTC ecosystem, and its consensus mechanism, Proof of Transfer (POX), is utilized for Stacks validation.

Through a process called anchoring, transaction block information from the Stacks chain is broadcast to the Bitcoin network to secure the transactions after they are packaged.

Stacks has a full execution environment, meaning any application that can be built on chains like Ethereum can be built on the Stacks layer.

Transaction validators and miners in Stacks can respectively bond $STX and $BTC to mine $BTC and $STX tokens to maintain network security.

Looking at Stacks' roadmap, the Nakamoto network launch and SBTC release scheduled for Q1 this year will be important milestones in Stacks' development and are worth paying attention to.

3) Others

In addition to the mentioned protocols, other notable BTC scaling solutions to watch include the RGB protocol, the Bitcoin sidechain project Rootstock($RIF), BitVM, BEVM, and more.

02 Modular Blockchain and Data Availability (DA)

1. Modular Blockchain

Modular Blockchain is a type of blockchain that is dedicated to specific functions (such as execution, consensus, settlement, or data availability) and relies on other blockchains or services to perform the remaining tasks.

This design enhances project security and allows project teams to save energy by focusing on developing core features.

By decoupling various functions and components of the blockchain, Modular Blockchain addresses the performance bottlenecks of traditional monolithic chains. Each module is supported by a specialized provider, enabling the provision of custom blockchains in a composite form.

There are many projects in the Modular Blockchain space worth paying attention to:

· Celestia($TIA)

Celestia adopts an off-chain approach to achieve Data Availability (DA), using Reed-Solomon erasure coding and a dedicated Namespaced Merkle Trees structure to ensure data availability, making DA more cost-effective and efficient.

Although Celestia has already been launched, it can still indirectly participate in all projects using Celestia by staking within an account. Many recent projects in the Cosmos ecosystem have included Celestia staking accounts in their airdrops.

·Manta

Manta Network is a modular blockchain for zero-knowledge (ZK) applications and the first to transition the data availability layer from the ETH mainnet to Celestia's Layer2.

Since December last year, when Manta shifted DA from the ETH mainnet to Celestia, its transaction fees have decreased by 99.8%. Currently, Manta's TVL exceeds $800 million, second only to OP and Arb.

·AltLayer

AltLayer is a decentralized Rollup-as-a-Service protocol with a modular design throughout the stack, allowing end-users to choose their Rollups based on their needs.

Rollup SDKs support Arbitrum Orbit, OP Stack, and more. The data availability layer supports Eigenlayer, Celestia, Astria.

AltLayer has previously launched the first-phase testnet tasks on the galaxy and OAT, with upcoming testnet tasks to follow. It may empower OAT in the future. Additionally, Altlayer previously released the Ottie NFT series, which may have the opportunity for a token airdrop.

·Cevmos

Cevmos is a rollup stack developed through collaboration between the Cosmos EVM chain Evmos and Celestia, aiming to become the premier settlement layer for EVM rollups on Celestia.

Cevmos stands for Celestia, Evmos, and Cosmos.

2. Data Availability Layer

The Data Availability Layer is one of the main development directions of modular blockchains, with Celestia being a modular blockchain specifically focused on the Data Availability Layer.

Data availability mainly refers to the public storage of transaction data to provide verification services. The Data Availability Layer can ensure data correctness, security, and ease of verification. In the current scenario, the most direct benefit is that the Data Availability Layer can greatly reduce Gas Fees for projects and users.

Currently, ETH Layer 2 needs to upload Calldata to the ETH mainnet, meaning that the ETH mainnet is responsible for Data Availability, resulting in a huge cost.

From the significant reduction in Manta transaction fees mentioned earlier, it is clear that, apart from the cost-saving advantage, combined with the current market trend, Data Availability has become a real need for Web3 projects, indicating a very broad market outlook.

However, challenges arise as well. With a larger ecosystem comes competition among Data Availability solutions, also known as DA War. In the near future, many new DA projects will be launched successively (the following are DA service providers, excluding users utilizing DA services):

· Avail, a modular blockchain project led by the Polygon team, is the main competitor of Celestia. Currently in the testnet phase, Avail can be seen as a project benchmarking Celestia. It has launched an "overlap conflict" incentive testnet, allowing users to run nodes and earn rewards.

· Fuel, unlike Celestia, focuses on the execution layer of modular blockchain and uses the SwayLang language. It currently offers Zealy identity.

· EigenDA, provided by Eigenlayer, offers low-cost, large-scale rollup data availability with security protected by ETH Restaking. You can try participating in the project through Eigenlayer.

At the same time, some older projects will also support their own exclusive DA. When the time comes, the key point will be the market competition in choosing which DA to use.

For example, ETH's Danksharding is essentially a DA, with its verification technology being more complex than Celestia's.

Ethereum founder Vitalik has repeatedly showcased his in-house DA technology, stating multiple times on social media that using third-party DA services does not qualify as Ethereum Layer 2 and emphasizing the need to establish a moat for their in-house DA.

Essentially, DA is a business oriented towards project teams and is not very user-centric. Therefore, the soft power of DA project teams, such as first-mover advantage, connections, influence, etc., may be even more important than the technical details themselves. This year, the DA War will be very exciting.

03 DePIN

As expected in Biteye's 2023 Outlook Report, DePIN has become a hot track, and the crypto community seems to have found a large-scale practical use case beyond finance.

DePIN refers to a Decentralized Physical Infrastructure Network, using cryptocurrency incentives and coordination to bootstrap and sustain decentralized infrastructure.

DePIN is a significant link between the virtual crypto world and the real world, promoting data security, effective coordination of idle resources, making our lives better, and showing more people the practical value and appeal of cryptocurrency.

At the start of the project, DePIN uses tokens or airdrops to incentivize user participation in ecosystem development, attracting strong developers to provide more cost-effective products.

As more users use the product or service, the project's revenue increases. This revenue can be used for treasury management and further marketing, providing returns to product demand and supply-side, incentivizing more participants, drawing attention from market funds, and building a thriving ecosystem.

DePIN will have a good positive feedback loop during a bull market, and recently has also gained attention from Binance and OKX, creating introductory videos on the DePIN theme.

In a joint research report by Messari and Escape Velocity, the DePIN track is divided into Computing, Wireless, Energy, Artificial Intelligence, Services, and Sensors.

Below are representative projects worth paying attention to in each sub-track, not investment advice. Readers can continue to explore and discover more interesting projects that have a practical impact on society.

· Computing

Driven by machine learning and AIGC, data generation has grown exponentially, also driving the need for more secure decentralized storage. Filecoin ($FIL) leads the storage track and ranks high in the DePIN track revenue leaderboard.

· Wireless

Helium ($HNT) is a decentralized wireless network protocol and one of the earliest and most well-known DeFi projects, sharing the top spot in DeFi funding leaderboard with a $250 million valuation alongside Filecoin.

The Helium Mobile ($MOBILE) sub-DAO offers users discounted mobile phone plans and has recently emerged as a shining star due to the rapid price increase of its token.

· Energy

Arkreen is a global decentralized renewable energy data network that tokenizes trusted and verifiable data from renewable energy devices to facilitate carbon neutrality.

· Artificial Intelligence

The Render Network ($RNDR) is a decentralized GPU rendering network that leverages idle GPUs for film and animation rendering and collaborates with prominent companies such as Stable Diffusion and Netflix.

· Service

Braintrust ($BTRST) is the first decentralized talent network that matches top freelance technical talent with the needs of major corporations.

· Sensor

Hivemapper ($HONEY) is a map network where contributors use Hivemapper's dashcams to collect street-level imagery and create up-to-date maps.

Investors looking to participate in the DeFi Innovation Track have two main ways to engage.

One way is to act as a provider by purchasing relevant products and equipment to offer services and earn token rewards for ROI and profit.

The other way is to purchase relevant tokens because during a bull market, project teams will use revenue from equipment sales to stimulate the token price, incentivizing continued product and equipment purchases to rapidly expand the ecosystem network.

However, it is important to note that there is stronger market-making willingness in the DeFi Innovation Track, and the observed token prices often exhibit volatile fluctuations. Investors may consider swing trading, phased entry, or grid trading.

Additionally, we can also consider benefiting from DeFi with a more cost-effective service from the perspective of a demand-side participant.

04 New Public Chains and the Ethereum Ecosystem

A public chain is the backbone of the crypto industry, the largest infrastructure. With the development of blockchain technology, we believe that high-performance single chains (parallel EVM), Ethereum re-staking, the Cancun upgrade, and modular blockchains will be the four major directions to watch in 2024. (We have already introduced modular blockchains in the first section.)

1. Parallel EVM Public Chain

Recently, Paradigm's CTO Georgios proposed that 2024 will be the "Year of Parallel EVM," and Paradigm is actively exploring this technology internally.

One of the performance bottlenecks of the EVM is that transaction execution is processed sequentially, so during peak periods, it faces network congestion and delays. The gas auction mechanism also leads to high gas fees, which is the most painful issue for users when using Ethereum.

If the EVM can achieve parallel computation, it will greatly increase network processing speed and system throughput, improving the performance and efficiency of the EVM. Currently, there are mainly two proposed solutions:

1) Independently design a parallel EVM public chain and

2) Use a parallel processing layer as Layer 2 to execute transactions

Projects to Watch:

· Sei ($SEI)

Sei is a Layer 1 designed specifically for optimized trading, using an optimistic parallel approach and is expected to achieve parallel EVM in its latest V2 version. Additionally, Sei allows Cosmwasm smart contracts to interact with EVM smart contracts, providing a more diverse execution environment.

· Eclipse

Eclipse is a modular rollup platform that brings Solana to Ethereum. It uses the Solana virtual machine for parallel computation as the execution layer, Ethereum as the settlement layer, Celestia for the data availability layer, and Risk Zero for fraud proofs, creating a parallel EVM public chain.

Eclipse is currently running on the testnet and can be tested by applying on the official website.

·Lumio

Lumio is a Layer2 based on OP rollup, committed to using Aptos as a layer-two execution layer, the Move-based Aptos once shone, and is expected to shine again on the parallel EVM track.

Lumio is currently in closed testing on Ethereum and will gradually open to NFT holders, Liquidswap users. Users can pay attention to testing qualifications and participate in the early testnet.

2. Ethereum Ecosystem

Ethereum Layer2 experienced explosive development in 2023, with over a dozen Layer2 mainnets launched. According to L2Beat statistics, the total TVL of Ethereum Layer2 has reached $19.35B. OP Stack and Polygon CDK have further reduced the difficulty of launching a Layer2 public chain, so the total TVL is expected to continue to increase in 2024 as more Layer2 solutions go live.

1) Re-Staking Narrative

In addition to Layer2 networks leveraging Ethereum's security, EigenLayer also leverages Ethereum's nodes to some extent to facilitate building new public chains.

EigenLayer is an Ethereum-based middleware protocol that introduces the concept of re-staking, allowing Ethereum nodes to restake their staked ETH or LSD tokens into other oracles, bridges, or public chains to enjoy Ethereum-level security at a lower cost, while users can earn multiple rewards.

Recently, there has been a trend in the market to convert staking in EigenLayer into a new layer's liquidity token LRT, creating a derivative re-staking liquidity game LRTfi. Projects worth noting include:

·Pendle ($PENDLE)

Pendle is about to launch ether.fi's liquidity staking token eETH, allowing users to deposit eETH into Pendle's LP to receive EigenLayer points, EtherFi points, and multiple staking rewards.

·Swell

Swell is an LSDfi protocol where users can stake ETH to receive Pearls and staking rewards. Pearls are linked to airdropped tokens. Swell is about to add re-staking functionality to its swETH, allowing users to stake ETH to receive rswETH, unlocking ETH liquidity and additional rewards.

·Puffer Finance

Puffer is a liquidity staking protocol based on Eigenlayer that addresses the finality issue in Ethereum and Eigenlayer networks through its proprietary Secure-Signer tool and RAV technology, providing participants with low-risk dual rewards, and is scheduled to launch its mainnet in 2024.

2) Cancun Upgrade

On the evening of January 4th, the 178th Ethereum Core Developers' Meeting finalized the testnet Dencun upgrade timeline, with the Cancun upgrade testnet activation scheduled to begin on January 17th.

The core of this Cancun upgrade is the implementation of the EIP-4844 proposal, which aims to increase the total number of transactions Ethereum can process.

Prior to the Cancun upgrade, L2 transactions were stored in L1 transactions' Calldata. This method was costly, and Calldata space was limited.

After the Cancun upgrade, L1 will store the data submitted by L2 in a new location called "blob," where storage costs are lower, and space is larger.

It is crucial to note that the revenue source for L2 is essentially the difference between the Gas fees charged to users and the Gas fees paid to Ethereum. With the Cancun upgrade, the fees L2 pays to Ethereum are significantly reduced, meaning L2's revenue level can substantially increase.

Therefore, the Cancun upgrade is fundamentally positive for all Layer2 solutions using Ethereum as their data availability layer, including all relevant Layer2s such as Optimistic rollups and ZK rollups.

In the upcoming quarter, assets related to the Cancun upgrade have solid underlying catalysts.

Most notably, OP and ARB are direct beneficiaries, two native protocols in the ecosystem that will also have a certain spillover effect, such as Velodrome ($VELO) in OP, the largest DEX, and GMX ($GMX) on ARB, and so on.

Second-tier Optimistic rollups such as MetisDAO ($METIS), Boba ($BOBA), and other Layer2 solutions will also benefit. For example, MetisDAO plans to be a Layer2 with a decentralized sequencer, adding a dual narrative overlay worth paying attention to.

In addition, since EIP-4844 introduces a temporary storage solution, data stored temporarily in a Blob will be deleted after about 1 month.

If an L2 solution wants to retain the data permanently, it will need to be stored by other storage service providers based on actual needs, indirectly increasing the demand for decentralized storage solutions, which is also a benefit for the decentralized storage track.

05 GameFi

The GameFi track currently has two categories for games:

1. Full On-chain Gameplay (FOCG)

2. Non Full On-chain Gameplay (NFT assets + off-chain gameplay)

1. Full On-chain Gameplay

Full On-chain Gameplay refers to games where not only the assets are on-chain but also the game's state storage and execution logic are on-chain, making full chain games more decentralized and more composable compared to non full on-chain games.

However, full chain games are still in the early stages, and the barrier to entry for users is relatively high, so holding related tokens or NFTs for a long period is necessary to potentially receive rewards.

The two main game engines in the Full On-chain Gameplay (FOCG) track are:

1. MUD

2. Dojo

The former belongs to Op-stack, while the latter is on Starknet.

The MUD game engine was released by Lattice, a subsidiary of 0xPARC. 0xPARC was founded by the original Full On-chain Game, Dark Forest team, and they have received donations from the Ethereum Foundation and Gitcoin.

It is worth paying attention to the game Sky Stife running on MUD currently. For those who did not get the Pass in the previous season, do not miss out on the new season starting on January 8th.

Dojo is a full chain game engine proposed on the Starknet network by core members of Loot Realms, the founder of Cartridge, and the founder of Briq.

Cairo offers higher efficiency and scalability compared to Solidity, which is why the core developers of Dojo chose Starknet over Op-stack.

Notable projects include the Loot Realms series:

1. Realms: Eternum (a sandbox strategy game) requires the purchase of Realms NFT to participate in the game. Players can earn the $Lords token by playing the game or staking Realms. The game is not fully open to the public yet.

2. Loot Survivor (a text-based roguelike game) and Shoshin by Topology have been launched on the mainnet. The game is available for test play on the testnet, requiring a consumption of at least 25 $Lords to play.

2. Non-full-chain Games

Non-full-chain games refer to games where only some game assets are on the blockchain. Currently, most NFT-related games fall into this category.

Although the NFT market has cooled off this year, NFTs in the gaming sector remain hot. Analyzing a project generally involves three aspects:

1. Technology

2. Operations (Breadth)

3. Community (Depth)

Among these, 2 and 3 are the most important, with 1 being relatively secondary.

Noteworthy Project: Matr1x

Matr1x aims to create a web3 premium game platform. The first shooting game is already available for experience, and the related community is very active. It is one of the few game products with high community engagement and popularity.

Of course, this game also faces challenges: How to attract web2 users? Because the number of web3 users is limited, and most are only interested in profits rather than the game itself, the project needs to attract web2 players to make the game more sustainable.

Matr1x's approach includes: TikTok, Bilibili live streaming, hosting esports competitions. From the game data, a significant percentage of its players are from web2.

There are two ways to participate in Matr1x:

1) Stake NFT to earn tokens

2) Participate in upcoming game activities or public testing

If the Gamefi trend arrives, non-full-chain games will receive initial attention. When the entire ecosystem's capital overflows, full-chain games will also rise.

06 AI&Crypto

According to a report by Binance Research, in 2023, funding for Web3 projects related to artificial intelligence saw strong growth, reaching $298 million, far surpassing the total funding amount for AI-related projects from 2016 to 2022.

At the same time, AI-related tokens outperformed BTC and ETH overall in 2023. 2023 can be considered the AI year for the entire world. As the importance of AI in the Web2 world continues to grow, we should also consider how AI and blockchain can be combined, what the directions of this combination are, and which projects we should pay attention to.

1. Decentralized Compute Network

With the increasing demand for AI models, whether large language models or AI models customized for specific scenarios, the intelligent advancement of AI relies fundamentally on a key element.

A significant amount of training, and behind this extensive training lies compute power. In traditional large model training, the training of large models takes place in a centralized data center environment, using high-performance computing devices as a cluster connected via high-speed networking to share computing tasks.

In the Crypto environment, by leveraging shared compute power and idle bandwidth, more compute power can be provided for AI model training. This is currently one of the exploration directions for AI&Crypto integration.

The decentralized nature of Web3 allows AI to become more democratic at the grassroots level. Through decentralized deployment, training, and utilization of AI, users' data privacy can be better protected, while also having the opportunity to receive rewards through data sharing.

However, it is important to note that for model training, decentralized compute networks have a drawback of communication latency due to distributed distances. Nodes need to spend more time waiting for data transmission, making it less suitable for models that require training efficiency.

2. AI&Crypto Applications

In Web2, well-known AI applications include chatbot Chat GPT, AI search engine New Bing, image generation tool Midjourney, virtual character Character AI, and more. In the Crypto world, if AI wants to integrate with Crypto at the application level, possible directions for development include:

1) Similar to RSS3, build a more Crypto Native chatbot or AI assistant tailored to Crypto users' needs by incorporating on-chain data and data sources such as Twitter, Reddit, Lens, Farcaster, Mastodon during training on top of the ChatGPT model.

Or like 0xScope, which has developed an AI cognitive model based on a knowledge graph, where users can leverage the AI trading assistant Scopechat to access and comprehend on-chain data for investment and trading analysis.

2) Furthermore, Generative AI can bring new narratives to Web3 applications, such as integrating virtual personas, character AI, and other innovative elements into ecosystems like gaming and social, bringing forth new gameplay experiences.

Looking at the recent launch of two AI-related projects by Binance, it's evident that the world's largest exchange is highly optimistic about the future of AI. These two projects focus on AI image generation and AI virtual idols, showcasing the exploration of AI application integration within the Crypto space.

In addition to the mentioned projects above, other noteworthy projects include:

1) Bittensor ($TAO): A blockchain-based decentralized machine learning network that leverages blockchain and mining incentives to coordinate the collaboration of AI models;

2) FetchAI ($FET): A blockchain-based machine learning platform aiming to enable traditional products to access AI through the Fetch.ai token without altering underlying business applications;

3) Dynex ($DNX): A neural-form hypercomputing blockchain based on the DynexSolve chip algorithm, proposing the useful Proof of Useful Work (PoUW) method to enhance the speed and efficiency of decentralized networks, targeting providing computational power for machine learning, fintech, biopharma, etc.

4) Grass: A decentralized incentive network for web crawling, where users sell their unused network resources via the Wynd Network to companies, labs, etc., with Grass' buyer companies seeking unused network resources to access a more diverse range of IP addresses for market research, web crawling, AI training, and other tasks.

5) Clore.ai ($CLORE): A platform offering GPU hashing power rental services built on PoW. Users can rent out their GPUs for AI training, video rendering, cryptocurrency mining, etc., providing hashing power services to individuals and organizations in need.

If users want to deeply participate in the above project, the main way to participate is to rent computing power or engage in mining. For example, Grass currently offers a desktop Chrome plugin account where users can download and register to earn points by hanging up through Wifi. After the subsequent project releases its tokens, users can obtain tokens based on these points.

(Note: Currently, most AI&Crypto projects are in the exploration stage, with projects tailored to various application scenarios. However, whether the project itself has real demand needs careful scrutiny.)

07 MEME

The Meme track, as a unique branch in the cryptocurrency field, has attracted widespread attention in recent years.

A Meme can be a typographical error (HODL), a catchphrase (GM, LFG);

A Meme can be a counterculture (Doge, RFD);

A Meme can also be a "arbitrage" of liquidity overflow (Aidoge, or Stark Inu, expected to airdrop on Starknet).

The distinguishing feature of this track is that it does not rely on a traditional business model or specific technical application. Instead, it relies on community consensus and cultural attributes. The value of MEME track tokens largely depends on community recognition and emotional connection, rather than a traditional asset valuation model.

From the rise of $PEPE in the bear market, the meme-rich $BITCOIN, the launch of $BONK in the early stages of a bull market, to Solana founder's mention of $SILLY, we can see that strong MEME coins often have the following characteristics:

1. Cultural Resonance and Community-Driven

Meme track tokens are typically combined with popular internet culture. For example, Dogecoin ($DOGE) and Shiba Inu Coin ($SHIB) originate from popular internet memes or cultural symbols.

This cultural resonance is easily spread in internet communities, attracting a large number of followers and supporters, resulting in lively discussions on social media, thereby increasing the visibility and attractiveness of these tokens.

2. Social Media and Celebrity Effect

Social media has a huge impact on Meme coins, and celebrities such as the Solana founder tweeting about Silly Dragon ($SILLY) can significantly boost its market value. This celebrity effect and the virality of social media can rapidly increase the visibility of a token and create FOMO among investors.

3. News Coverage and Media Attention

Due to its unique image and sometimes bizarre stories, Meme coins often become the focus of news coverage, further increasing public interest in these coins.

One point we need to understand about Memes is how to assess a Meme's consensus strength, meaning how many people in the market are willing to pay for a Meme.

In the early stages of a Meme, we often can only judge its investment value based on somewhat intangible conditions such as community activity, IP concept (riding a trend), project team strength, cultural background, etc. This is also the biggest risk of early Meme investment, as it's either a total loss or a rug pull.

When a Meme has successfully "lived" for a period of time, we can then attempt to judge whether it's worth investing in based on factors like the number of holders, trading volume, and candlestick support from multiple dimensions (e.g., increasing mentions of the Meme on Twitter).

As a Meme becomes more widely known, its consensus is continuously strengthened, and the risks of a total loss or rug pull gradually decrease. Of course, the returns from the Meme at this point are also reduced. As the saying goes, high risk, high reward.

Overall, the Meme field represents a new direction of diversification and cultural integration in the cryptocurrency market. It is not just a speculative direction but also a medium for cultural expression and community consensus. With more cultural elements and creativity joining in, the Meme field is expected to continue to develop, but the associated risks should not be underestimated.

Therefore, for the average investor, understanding the cultural attributes of Meme coins, acquiring early chips, and most importantly, cultivating a familiar logic and judgment, and then executing it, are key to participating in the Meme field.

08 Conclusion

Finally, 2023 has been a year of transformation and innovation in the blockchain and cryptocurrency field. From the launch of the first modular blockchain, the rise of the BTC Inscription ecosystem, to the integration of AI and crypto, each step has injected new vitality into this industry.

As we enter 2024, we believe these developments will continue to shape the industry's direction. Staying informed, learning, rationally analyzing market trends, and exploring new tracks may be a required course for everyone in 2024.

In 2024, Biteye will stay true to its original aspiration, continue to select high-quality projects, and together with our friends, explore the code to wealth!