The market has gradually entered the phase of increasing waves for the end of this year, when Bitcoin has been sideways from 50-70K for the past 6 months, so to prepare for the upcoming uptrend, which trends should you keep an eye on to bring you the best profits? Let's find out with Allinstation!
Criteria for choosing trends
Future profit potential
As everyone knows, Crypto projects are quite "illusory" and most of us want to make a profit. So when determining a trend to ape-in, we need to imagine the potential profit and this coin can bring to us.
However, you need to consider your Capital allocation, expectations and risk tolerance because sometimes big profits come with big risks. Many people will want to xx times from small Capital , but for many people with large Capital , x3-x5 is more than enough.
Determine growth potential based on FDV valuation + historical comparison.
For example, for Layer 1 projects that account for 78% of the total market Capital , old Layer 1 projects have achieved FDV valuations of around 8-90 billion USD for trend-leading projects such as $ SOL or $ ADA , and 9-12 billion USD for other Layer 1 projects such as $ TRX, $NEAR, $ FTM.
Looking back at the Layer 1 projects this season, we have prominent names such as $ APT, $ Sui, $ Sei, and $ TON, which are the 5 most prominent names, with FDV falling between 1.5 billion USD and 13 billion USD, meaning that if it reaches the peak, not to mention which project is the lead => the Medium profit performance of the trend is from x7-8 times compared to the current price, which will be equal to the previous cycle and if expected more, it can be x10 - 12 times (for the leading trend project, it may be different, for example, if $ Sui replaces $ SOL , it will be nearly x20 times the current price).
=> Determine the Medium profit for the trend you are investing in and then draw your own expectations.
Cake drawing can be applied to real life
As I have analyzed from the previous two articles, you can read here:
- Alt season is coming – choose Memecoin or Coin Technology?
- Identify the market leading trend with Binance Listing
Technology coin trends still account for the majority of market Capital and will always be the ones leading the market growth to attract money from outside. However, it is necessary to choose the right trend that is practical and applicable to everyday life so that when attracting new users, it is easy to understand and absorb to participate in the trend.
- 2017 – Trend coin MLM
- 2018-2020: DeFi Summer
- 2020-2021: GameFi, Move-to-earn
- 2023-2024: LSD, RWA, AI, Meme…
=> Trend leads are all practically applicable.
Big Hand Backing
The crypto market in the period of 2017-2018 when the financial giants had not yet joined the market, entities like Binance, Alameda made waves in the market with their xx coins. But now the market has blossomed, many players have joined the pie, especially the traditional financial giants and more and more investment funds => Choosing a side to swim with is necessary.
=> Read more: Identifying players in the cryptocurrency market
This is both good and bad for the market, as the game is now gradually leaning towards fairness, factions can lead their own coins and ecosystems => Opening up more opportunities for players when the game is no longer manipulated by one part. The only downside is probably that the market will no longer have crazy growth of hundreds of times, when the coin's valuation is both high + many players.
Top 5 Narratives to Watch in the Coming Time
Layer 1 – A solid foundation for market development
Blockchain is the technology that our entire market is based on, and Layer 1 projects are the best exploiters to attract investment and Capital flows. It can be seen that the number of projects has reached 4000, but only the top 200 are noteworthy, in addition, there are continuous Capital calls from new projects and additional investments from old projects.
=> The potential to find hidden gems is always there + x8-x10 from top projects is within reach when compared to FDV
However, it is necessary to carefully select Layer 1 projects with a good ecosystem, which is the most important factor - here it is creating games that attract players + projects built on the ecosystem through investment programs to support the project.
For example, although $ SOL is XEM an old Layer 1 project, it has done very well in creating games to attract users through meme, selling phones/rings , and launching reStaking to promote DeFi in the system => TVL increases => price increases. $TON is also a typical example with its Tap – to – earn trend.
Some of the notable names this season are:
- The Return of $ SOL
- $ Sui 's Most Outstanding Technology
- $TON 's Telegram Backing
There are also many other prominent names such as $ APT, $ Sei, $ SAGA, $ TIA and some names that have not been listed on the exchange such as Initia, Story
RWA – Market Liquidation Bridge
In the 2020s, the term “ Real World Asset ” emerged to differentiate cryptocurrencies from traditional financial assets. Compared to cryptocurrencies that exist only in digital form, real world assets (RWAs) are often tangible assets and are linked to real-world entities.
In the first half of 2023 , the RWA segment has attracted interest from traditional financial institutions and crypto- native organizations. To date, the RWAs market has expanded with the participation of many traditional parties such as large banks such as JP Morgan, BlackRock, Santander Bank, Franklin Templeton with a total market Capital reaching 186 billion USD .
=> The potential for Capital from traditional sources to flow in is huge.
Currently, RWAs have a Capital of around 7 billion USD, accounting for less than 1% of the total Capital of 2,410 billion USD of the entire cryptocurrency market. In which, the top 10 projects in RWAs have accounted for more than 50% of the total market Capital .
=> High opportunity to expand market share because this is a trend with practical applications and support from traditional giants
Currently Leadtrend RWA can be said to be $ONDO, $CFG in the Token treasuries segment, one of the only projects that has launched a Token, the rest are RWAs belonging to banks.
The next largest segment in RWA is Private Credit with 80% of the current on-chain asset market share with $MPL, $CFG and $GFI being three web3 projects that have launched Token.
In addition, RWA has many other fields such as Real Estate like $PRCL, or credit like $CPOOL
reStaking – xx times yield fomo wave
As I said in this article about Binance Listing can be a support signal for the trend: Identify the market leading trend with Binance Listing
Eigen Layer has recently been officially listed on Binance - XEM the leader of the reStaking trend with FUD when it was first listed + listing price is extremely low compared to a project with large Capital raising, many backers and large TVL.
reStaking projects have a similar characteristic of having a Capital /FDV ratio of around 10% , extremely low and the price has also decreased quite a bit from the peak.
=> Listing at a high price to Dump, then gradually unlocking Token and there will likely be pumps to create liquidation for the un-unlocked Token
Read more:
- Do low supply high FDV projects have a chance?
- Opportunities still exist for 2 Liquid reStaking projects: Etherfi and Renzo
GameFi – Real Apps Real Growth
GameFi is a concept from 2021, however, the development of GameFi 2024 has reached a new height when not only focusing on game development but also the appearance of more web3 game studios, setting a new trend with 1 gaming platform with many in HST using 1 Token to increase the Usecase of the Token.
April 2024 marked the highest investment milestone in the past 2 years with nearly $1 billion invested in Web3 games and game studios.
This season saw the rise of two blockchains, Ronin and Solana, with a series of blockbuster games such as Pixels, Lumiterra, The Machine Arena, Backwoods. The number of active wallets on Web3 also recorded the highest game usage.
It can be said that GameFi is a special segment in crypto because it has the most practical application ever, the number of game projects has also grown a lot with a series of famous games. However, if talking about the potential price of the Token , it is a different story because the project is completely capable of making a profit from activities other than pump-dump Token.
Some typical games that have launched Token such as: $PIXEL, $PIRATE, $NYAN are not currently performing well, however infrastructure like $ RON has great potential in the story of Token demand.
=> Read more: GameFi & reStaking will open the wave of technology coin growth in Uptrend Crypto 2024
Meme – The Unbelievable Story in Crypto
The story of memecoin this season has changed differently from last season, the thinking that "memecoin is the last wave" is no longer true, as evidenced by the appearance of $ PEPE and the memecoins leading the trend on $ SOL, which even made the market fomo even more.
=> This season's meme is used to attract liquidation to enliven the market
In addition, big guys like DWF Labs also pay certain attention to memecoins, making memecoin investment a niche to XEM .
To understand better, please read this article: Upcoming Alt season – choose Memecoin or Coin technology?
Summary
Choosing a trend to diversify your portfolio is essential if you want to maximize profits in the market. Understanding and choosing a trend to invest in is extremely important because many trends are born to draw a line, or even mentioned next season, which will cause us to miss out on xx times growth waves. In addition to the 5 trends Allinstation mentioned above, there are still many other trends with investment opportunities such as BRC-20, SocialFi, DePin, etc. If you want to learn more about any trend, please share it with Allinstation!
