In today’s newsletter:
🔎A few crypto narratives I'm bullish on
📊On-chain alpha
😂Crypto meme of the week
🗞️The latest DeFi news
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🔎A few crypto narratives I'm bullish on
We have a few interesting weeks ahead of us.
New rate cuts are expected soon, the US elections are a few days away, and FTX’s $16b cash repayments to creditors are starting this quarter.
With this in mind, I thought now would be a great time to cover a few narratives that I expect to continue gaining more attention over the next months.
Let’s dive in:
Crypto AI
The AI narrative alone now accounts for 50% of the total narrative mindshare.
This isn’t surprising as NVDA stock just hit a new ATH on AI optimism and the Google searches for Artificial Intelligence are also at ATHs.
On top of this, ChatGPT 5 is rumored to launch at the end of this year.
Considering all of this, I believe that crypto AI will continue to be one of the best-performing narratives in the near future.
Fun fact: XRP market cap is currently bigger than that of the entire crypto AI sector. This makes me think that this sector still has a lot of room for growth.
Some AI projects I’m closely watching are:
Zero1 Labs ($DEAI)
NEAR Protocol ($NEAR)
Bittensor ($TAO)
Terminal of truths (the first AI agent to create a memecoin - $GOAT)
Solana Season
Solana made an epic comeback this cycle.
It’s now getting close to surpassing Ethereum in mindshare on X (according to Kaito) and its on-chain activity has skyrocketed over the past months.
Indeed, if you’re looking for the next 100x coin, SOL isn’t that coin.
I’m saying this because SOL already has a big market cap: $80 billion.
Yet the tokens of some of its ecosystem projects might perform very well if Solana manages to sustain the bullish momentum.
Jupiter and Kamino are 2 native projects with very hard-working teams.
The recent deployments (or announcements of future deployments) on Solana from highly popular DeFi projects like MakerDAO, GMX, and Ethena make me very excited about the future of the network.
Memecoins
I’ll be honest.
I generally prefer to invest in projects that are building something truly interesting rather than buy memecoins. (which are way riskier investments)
But the reality is that memecoins are now among the top-performing coins.
According to Kaito, memecoins are also the narrative with the 2nd highest mindshare on Crypto Twitter (after AI).
And as an investor, my goal is to always put my bias aside and invest in whatever has the potential to make me the most money.
So a small % of my portfolio is allocated to memecoins.
Hoeem shared a few good tips for memecoin trading on X recently:
Besides the three narratives I mentioned above, two other ones I’m keeping an eye on are Real-World Assets (RWA) and Bitcoin Staking.
I won’t focus much on those as I’ve covered them several times in the past.
Yet RWA tokenization is predicted to be a multi-trillion-dollar sector by 2030.
With institutional adoption now happening faster than ever before, I believe it’s a matter of time until the RWA narrative takes off.
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On-chain Alpha🔎
Solana hit a new ATH in real economic value
What’s more, Solana has also started to get close to surpassing Ethereum L1 in total gas fees paid by users. At the time of writing, Ethereum’s daily network fees are higher than the Solana network fees by only 10%.
A high % of Solana's activity comes from memecoin trading, but not all of it.
According to the data from Syncracy Capital, there are now 7 DeFi protocols on Solana that are generating $10M or more in annual revenue.
Crypto Meme😂
The latest developments in DeFi
Chainlink and Swift unveiled blockchain integration for connecting institutions to blockchain networks
Avalanche introduced the Avalanche Card for crypto-friendly spending
Ethereum Co-founder Vitalik outlined Ethereum’s roadmap to scaling beyond 100,000 transactions per second
Jupiter Exchange launched Ape Pro - a Solana’s Memecoin Terminal
Asymmetry Finance started its $ASF token sale on Fjord Foundry. The valuation of its last private sale was $45M, while the FDV of this public token sale is $30M
dYdX launched a Trump perpetual prediction market. Using it, you can trade on Trump winning the US election with up to 20x leverage
Zero1 Labs launched the Cypher blockchain Testnet and announced a new strategic partnership with NEAR
pSTAKE Finance introduced YBTC, a yield-optimized BTC token on Babylon. It is scheduled to launch on Ethereum in mid-November
LandX announced a USDC RWA loan on its Credit Gateway with 20% APY for lenders. LandX is a RWA projects that enables investing in agricultural commodities
Base L2 announced the launch of fraud pools to become more decentralized
Opentensor Foundaτion announced the launch of EVM smart contracts on Bittensor
Solv Protocol introduced SolvBTC.JUP - a LST for Bitcoin on Solana
MANTRA launched its L1 mainnet for tokenizing real-world assets
ApeCoin launched Apechain, an Ethereum L2 built on Arbitrum Orbit
That’s all for this week!
Until next time,
The DeFi Investor
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