Long Push Analyzing the 4 Potential Narrative Directions of the Future Cryptocurrency Market

Analyzing 4 potential narrative directions for future cryptocurrency market

Since the upgrade in Shanghai, liquidity staking has experienced exponential growth and has become the largest category with a TVL of about $20 billion.

Note: The original text is from a long tweet by @poopmandefi, compiled and translated by MarsBit.

The next narratives will come from products that address current market pain points.

These narratives include:

• a16z Interviews Solana Co-founder People should strive to create greater ideas rather than repeat what already exists.
• An In-depth Analysis of the Bitcoin DA Adapter Solutions Chainway and Kasar Labs Does Bitcoin Need ZK Rollup?
• Behind the Explosive Popularity of TG Bots Intention Trading is Opening the Door to Web3 Interaction Intelligence

1️. Re-staking

2️. De-AI

3️. Shared Sorters

4️. Gamble-Fi ($RLB)

In this article, I will briefly outline my favorite four narratives and provide actionable insights.

You can jump to actionable insights in the following link:

Let’s not waste any more time and get started.

1. Re-staking

Since the upgrade in Shanghai, liquidity staking has experienced exponential growth and has become the largest category with a TVL of about $20 billion.

@eigenlayer has leveraged this trend and introduced re-staking.

Re-staking allows stakers to deposit LST and choose to use the same underlying assets to earn additional rewards.

While stakers can benefit from the capital efficiency of staking,

the protocol can also enjoy a more secure environment through Eigenlayer’s pooled security.

So far, @eigenlayer’s TVL has reached $232 million and has set a hard cap.

Looking ahead, I expect Eigenlayer’s TVL to continue rising as more innovative protocols join the ecosystem, attracting more trading volume and liquidity from the market.

The influx of liquidity will make it increasingly attractive to new protocols (such as @EspressoSys) to leverage Eigenlayer’s growing liquidity.

Ultimately, this can create a positive feedback loop and potentially bring Eigenlayer’s TVL to higher levels.

Feasibility:

I’m confident that Eigenlayer will generate significant revenue from staking/opt-in.

So as a retail investor, what can you do to participate in Eigenlayer?

Strategy 1:

When Eigenlayer raises the limit again, you can stake stETH/cbETH/rETH to earn staking points and rewards (but bear the risk of ETH price decline).

Strategy 2:

Once the following projects go live, re-stake and join them:

@puffer_finance

@EspressoSys

@witnesschain

@AstridFinance

2️. De-AI

In Web2, AI training is very expensive, ranging from $3 million to $12 million.

Issues such as centralized and monopolized datasets (controlled by large companies like Google and Amazon) and hardware limitations may hinder the development of AI.

De-AI (Decentralized AI) is a potential solution to these problems.

To understand De-AI, we first need to understand the key components of traditional ML.

An ML model can be divided into four parts:

Data input

Data training

Data storage

Data services

In a Web3 environment, each component can be decentralized.

Why do we need decentralized AI?

The value of decentralization in AI lies in ensuring data accuracy.

This concept is consistent with the theory of collective intelligence, which states that collective wisdom generated from the aggregation of information in a group often leads to more accurate decision-making.

In other words, using information or data from different sources is often more accurate than relying on a small group of experts to provide input data for internal AI training.

With decentralized AI models, we can:

Train models more cost-effectively

Eliminate the risk of single point of failure

Create a market between data and models

So what can you do to participate in this narrative?

Actions:

You can participate in these projects or start accumulating their related tokens when the market falls again:

@bittensor_ ($TAO)

@gensynai (currently no available tokens)

@SingularityNET ($AGIX)

1) @bittensor_ ($TAO)

Bittensor is an L1 POW network on Polkadot, serving as a P2P marketplace for training ML models.

You can earn TAO tokens for collaborative training based on the value of information or spend TAO to purchase their ML services.

2) @gensynai

Gensyn is another L1 that addresses AI hardware limitations, backed by @a16z.

It achieves this by pooling all the idle GPUs in the world into a global ML supercluster that anyone can rent and use at any time.

However, they have not issued any tokens yet.

3) SingularityNET

As one of the OGs in the De-AI field, SingularityNET supports the transactional AI solutions in a P2P manner.

You can participate in liquidity mining by staking $AGIX on their staking page or simply trade when there is a surge in AI popularity.

3. Shared Orderer

L2s (such as Arbitrum, Optimism, and zksync) currently operate a centralized orderer, which provides faster confirmation times and higher efficiency but comes with the risk of censorship and single point of failure.

The solution to this problem is decentralization, specifically a shared orderer.

With a shared orderer, each Rollup can use it as a “decentralized service” by sacrificing the profits from MEV.

It not only solves the censorship issue but also ensures liveliness (prevents being offline)…

It also allows transactions from multiple Rollups to be included in a block (cross-chain composability), reducing the cost of batch submission and providing greater resistance to MEV in the face of negative externalities.

Operable:

There are some protocols applicable to shared sequencers, which are likely to introduce tokens to generate income and distribute governance power. Therefore, I suggest paying close attention to:

@EspressoSys

@AstriaOrg

@radius_xyz

4. Gamble-Fi

By 2023, the online gambling market has reached a scale of 88.65 billion US dollars.

Among them, the adoption of Crypto in gambling increased by 44.6% in 2023, indicating a clear trend of Crypto adoption in the gambling industry.

Based on addictive features and Ponzi token economics (such as buyback, burn, or revenue sharing mechanisms), I believe that with the continuous improvement of user experience, Gamble-Fi may be one of the products that achieve mass adoption.

Operable:

Currently, I only hold $RLB because it generates income every month, although I am not sure if they really buy back and burn tokens.

Nevertheless, I will continue to keep an eye on Gamble-Fi.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!