Inventory of the current popular encryption narratives and trends: Arbitrum ecology, AI, LSD, NFTFI...
Written by: Onchain Wizard
Compilation: Deep Tide TechFlow
From a market perspective, risk has returned, with ETH up about 22% from the "market bottom," while certain altcoins like BONE are up significantly more year-to-date, even after the recent pullback. Narratives and catalysts are back, so here's a roundup of the main ones for February/early March.
Despite the recent pullback in ETH and a sharper sell-off in some tokens, smart money (according to Nansen) hasn’t seen a huge shift in stablecoin holdings, so risk appetite is definitely still there:
QuantMeta provides a quick pictorial summary of what's happening in markets like Arbitrum, AI, LSD (refocused since CEX regulation crackdown on staking):
Below is a quick summary of all the exciting things going on in cryptocurrency today, in no particular order (these are not financial advice, do your own research).
In late January, the rDPX v2 documentation was published (again), bringing the token up to $60 . The token has since fallen back to $42, but is sure to skyrocket again as its testnet and full launch materialize in the coming months.
Perp is still active and GNS hit an ATH of $8 last week . GMX also reached its ATH this month (i.e. $76). Other smaller perpetual DEXs have been doing well, with newly launched VELA up 2.7x since late January and now has a market cap of $26 million. Other new Perp DEXs are also doing well, including LVL which is up 21x YTD!
GRAIL - The token has reached its ATH of ~3000, a growth of more than 10x from launch . All the hot new products on Arbitrum will appear on Camelot, and we'll keep an eye on GRAIL's narrative as Arbitrum's blue chip. We still expect GRAIL to be the continuing narrative of Arb's blue chip .
NFTs are making a comeback , with transaction volume already starting to recover from lows of less than $100M per month last fall → February’s transaction volume has already exceeded $200M.
More evidence that NFTs are coming back, with data showing that more than half of NFT minting is profitable.
FCTR may be the future Arbitrum blue chip token, there will be a public sale on February 20th (beware of scams) . Given that the platform already has 1,700 beta signups, the project should have plenty of upside if this adoption rate holds up.
ZK Narrative : This appears to be a switch for cryptocurrencies at the moment, with MINA, DUSK, PIVX and ROSE doing well. Other small cap coins that could rise are FIRO and ZKS.
Liquid on-chain staking tokens are also a hot topic , which has been revived in light of the SEC charges against Kraken for CEX staking (LDO, RPX, FXS). Notably, FXS now holds the third position in LSD market share with its FRAX ETHER. If all US CEX staking were sanctioned, a whopping 4.4 million ETH would be affected (according to Hildobby).
AI is another hot narrative, but who knows how much profit there is . With chatGPT getting a lot of funding and other practical AI projects getting more attention, the next plate rotation will come quickly. Currencies include: FET, ORAI, AGIX, VXV, NMR, OCEAN.
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