There are several projects that must be invested in 2024
NOTE: The following are suggestions for projects that have potential and match your interests. For new projects that don’t have tokens yet, we don’t know their status yet, but I’ll mention them anyway because of their good fundamentals.
1. Large-scale projects designed for safety purposes
1)StarkNet
Starknet is the most advanced Layer 2 in developing zk technology.
The team are all very talented people in this area.
The project is highly praised by Vitalik Buterin and ethereum.
The vision of this project is Appchains Layer 3, Layer 4. The upcoming Layer 2 on StarkEx will also become Appchains Layer 3 on StarkNet.
There are many large-scale projects for Layer 2 on StarkEx, such as Immutable, Brine, Apex, etc.
This brings a lot of value to StarkNet’s Layer 2. The StarkNet ecosystem is also growing rapidly.
StarkNet is a well-developed technology project. Has a long-term future prospect.
2)Blast
Blast_L2 is the first project to introduce the Real Yield model in Layer 2.
Help increase users' assets on Layer 2 Blast by automatically locking their assets in the bridge and sending them to MakerDAO and LidoFinance.
Due to its compatibility with EVM and the sharing of all fee income on the platform to developers, many projects quickly moved to Blast for development.
In this way, many native projects face fierce competition from Multichain projects.
The biggest difference of Blast is to increase asset income and share revenue with developers. As a result, Blast quickly attracted funding and users. Therefore, it is also easy for projects in the ecosystem to obtain funding while on the Mainnet.
3)Base
Base is Layer 2 in the Superchain ecosystem and is developed by Coinbase. I believe everyone knows the strength of Coinbase.
Although base does not focus on technology development, its ecosystem is very well developed.
Choose RWA, GameFi, and SocialFi as the key development directions of the Base ecosystem.
Because no ecosystem is currently doing well in these areas, Base can easily find its place.
Although Base’s token issuance capabilities are unclear, the project is worth paying attention to and experiencing in the ecosystem.
As for strength, Coinbase is number one in this market. Thanks to Coinbase Ventures’ relationships and investment deals, Base quickly attracted the best projects such as Backed, Farcaster, FriendTech, and others.
4) EigenLayer
EigenLayer is the first project to introduce the Restake model. Use original LST or LP ETH or ETH liquidity to stake validators.
eigenlayer also leverages the Ethereum network’s nodes/validators. As a result, EigenLayer provides the highest security validator rental service on the market.
Eigen's DA layer is also used by many Layer 2 projects. Although this layer is not as fast and cheap as CelestiaOrg, it is highly secure.
EigenLayer helps increase the number of use cases for Ethereum, as well as products derived from Ethereum. Increases demand for Ethereum and provides high-security validators for projects on the market.
5)Babylon
Babylon uses BTC as collateral for the chain.
babylon_chain can also be connected to other PoS chains to improve the security of these chains. Security is enhanced by having Babylon group the block headers of these chains and inscribe them into the Bitcoin network.
Babylon has a lot of potential as it has access to large amounts of money coming from BTC. This increases the use cases of BTC and generates profits for holders.
Additionally, Babylon helps enhance the security of other PoS chains.
Considering the excellent advantages mentioned above, Babylon is a very promising project, no less than EigenLayer.
There are many older projects that are more secure. But for my personal taste, I like this type of project. While it's unclear if there will be fancy pricing to buy at launch, the items are of high quality.
2. Hidden gems
1) Ambient Finance
ambient_finance is an AMM that combines Uniswap V2 and V3 models in one pool and also supports limit orders.
For example: Uniswap supports the ETH/USDC trading pair on V2 and V3 versions. Ambient merges the liquidity of V2 and V3. This model is very efficient, overcomes the limitations of V2 and V3, and increases the liquidity of trading pairs.
Additionally, Ambient is the first project to use a single smart contract technology for the pool. This technology is used by Uniswap for the V4 version. Ambient may be suitable for assets with medium market capitalization or sudden market fluctuations.
Although Ambient is very efficient, it still cannot compete with Uniswap if there is insufficient liquidity. So we can rest assured that Ambient is ahead of Mantle, Canto, and the upcoming Blast.
2) Morpho
MorphoLabs is a lending project with a talented team and investment from a16z.
This project developed the product Morpho Optimizer, a p2p lending project. But when p2p liquidity is insufficient, the project will focus on transferring user liquidity to aave or compoundfinance.
The product already has over $500 million in TVL and brings the best interest rates to users. But the biggest limitation is that it relies on the liquidity of other projects, and the fees are high.
Therefore, recently the project developed the product Morpho Blue. It is a platform that allows anyone to create a lending pool with custom parameters.
This new product is also considered the market leader. Its development direction is to become the center of the liquidity market and become a liquidity provider for many other projects.
3) Curvance
Curvance is a lending pool project based on the isolation model, that is, each asset has its own independent pool to spread risks.
One of the highlights of Curvance is that it only lends out stablecoins. And mortgage assets, including income-generating assets like LST, LRT, and LP Token.
The next attraction of the project is to use users’ mortgaged assets for mining to increase profits for users.
For example: mortgage GLP to stake GMX or deposit veCRV into Convex to obtain income.
Curvance is initially focused on supporting the CurveFinance ecosystem and products. But later, the project shifted to support multi-asset and multi-chain.
Curvance is developed by the OG team in the DeFi field. The project has become a partner of almost all major DeFi projects on the market.
Curvance focuses on the area of income-generating assets and maximizes the use of liquidity to increase returns for users of mortgage assets.
4)Aevo
aevoxyz is a Layer 2 derivatives project in the Superchain ecosystem.
The project provides products such as Perp, Option, OTC and top strategy Vault.
Aevo brings a great experience to users and supports a wide range of products. Developed the top products on the market such as $aeUSD, single and diversified collateral, support for assets not listed on exchanges, etc.
The development team is the same talented people who developed Ribbon, the leading options trading platform on the market with a market capitalization of $4 billion. The project is also supported by well-known and large funds like paradigmm.
Aevo is a leader in options and also has a presence in perpetual contracts. This segment is expected to generate huge revenue and demand. With current and future upcoming products, this project will quickly become a leading project in the field.
5)Farcaster
farcaster_xyz is a platform for developing social applications, bringing a web2-like experience to users.
User data will be stored off-chain in the Farcaster validator network, while account addresses will be recorded on the blockchain. This pattern combines web2 and web3 well.
By collecting user fees and subsequently distributing them to contributing parties, Farcaster is able to easily build a sustainable business model.
Farcaster is also building a social ecosystem with multiple high-quality products. At its center is warpcast_, which has many similarities to X.
Warpcast is used by many large projects, venture capital, and OGs in the DeFi field, such as Vitalik Buterin, base, ethereum, coinbase, MMetaMask, etc.
Many developers are using the Warpcast social network for interaction, product communication, and connection. As a result, the developer community here is very active.
Farcaster provides sustainable and long-term development technology and business models, has a certain number of users, and is developed by people from Coinbase.
6)FriendTech
friendtech is a SocialFi project that introduced a novel model that generated millions of dollars in revenue every day and once caused FOMO.
The project provides the basis for interaction between celebrities and fans.
Fans buy keys to join celebrity groups. Keys can be resold at any time, but each sale will generate a 10% fee, a 5% celebrity fee, and 5% of the protocol revenue. Not to mention that key prices increase or decrease based on demand calculated by mathematical formulas.
While this model isn't perfect, it creates a useful product. It helps fans get closer to celebrities and get the value they expect. Celebrities, on the other hand, will receive income from the value they provide. The project easily exploded as it attracted a large number of KOLs.
7)Pixel
pixels_online is a PlayToEarn game with a farm game theme.
The game is easy to play and players can make money even as free players.
Moving towards a metaverse that allows landowners to build arbitrary buildings, games and programs. Thus, creating excitement and retaining players for the long term.
With hundreds of thousands of players every day, Pixel has the largest number of players in the Web3 game market.
When the tide passes, projects also go into decline. But the project has not yet reached the explosive stage. And Pixel has many improvements compared to Axie, so this explosion will definitely be bigger.
8)Shrapnel
playSHRAPNEL is a shooting game with top-notch graphics on the market, no less than traditional games.
The game took a long time to develop and received investments from IOSG, Polychain, Dragonfly and others.
This game is expected to lead the Gamefi market and has extremely high playability. In addition, the earning aspect will also attract traditional players to switch. If more streamers play this game, it will become more popular.
While there are many other hidden gems on the market, for me, I rate these items highly. To invest, you still need to be in good standing.
3. Projects that require time to monitor
1)Bridge
The project has great potential and has strong competition with LayerZero_Labs, wormholecrypto and zetablockchain.
Because these basic projects are still developing technology and expanding market share, it is not yet certain which one is best.
Therefore, it takes time to observe the development of each project and build an ecosystem.
2) Trader Joe’s
I am very optimistic about the capabilities of TraderJoe_xyz’s development team.
They invented Liquidity Book, an AMM liquidity model that is more efficient than Uniswap V3.
But because AMM mainly relies on liquidity, Trader Joe's liquidity is far less than that.
So, in many ways, Trader Joe still cannot compete with Uniswap. But Joe is still the leader of Avalanche.
So I remain skeptical about Avalanche’s prospects and competition with Uniswap.
But more recently, Trader Joe's has developed a licensing business strategy, selling technology to other projects in the ecosystem.
This direction is more likely to succeed, rather than compete directly and let other projects fight on their own, but they are still influenced by Joe because of the technology used and some connection.
3) Fraxchain
Frax is a top project on the market, with Liquid Staking, Lending and CDP products.
Recently, the project has shifted to developing Layer 2 and developed the Lending BAMM product without using Oracle.
The project has status and a story to tell, but the effectiveness of the project and its ability to attract users still need to be observed.
4) Orderly Network
The project is building an order book shared by all chains. Projects can use the order book to conduct transactions such as perpetual contracts and spot transactions.
It sounds like Orderly will have more concentrated liquidity. But in fact, in addition to the market, perpetual contract DEX only needs to use bridges to transfer assets from other chains.
Therefore, it will take time to watch the project develop and see if there are any large-scale projects in Orderly’s ecosystem. It also depends on the direction of Orderly and its competition with other projects.
There are many more projects worthy of attention, but this is all I can remember at the moment.
4. What areas should you focus on to change your stance?
1) Platform
Usually, in an investment portfolio, it is always necessary to allocate a portion of funds to basic projects, such as Layer 1, Layer 2, etc.
The base token will not change status as quickly as other projects, but it is suitable for large investments.
It also helps reduce portfolio risk and provides the basis for higher-risk allocations.
2)GameFi
The traditional gaming industry is huge. The demand for gaming never diminishes.
GameFi in crypto has experienced a major explosion.
Therefore, in this season, the game will develop more than other seasons because of the large investment from venture capitals such as animocabrands and a16z.
3) SocialFi
SocialFi is the most promising segment, with billions of users accessing social applications every day. Although the product experience in web3 is not as good as web2, the gap is gradually narrowing.
There are token incentives, Ponzi models, or privacy and data security. Therefore, social dApps also have high hopes. But this segment is not as competitive as the gaming segment.
Therefore, you can easily find quality items. The highest trading demand in the Perp DEX market is perp. The same thing happens in traditional markets.
Whether it's an uptrend or a downtrend, leveraged trading is always exciting. It brings a huge revenue stream to the project. So this segment is also going through a battle to retain projects. Products are becoming more and more optimized and are no longer inferior to CEX.
4) RWA
This segment is also highly appreciated for its ability to access traditional capital. and expose DeFi users to traditional products.
This part is very clear and starting to emerge. RWA has also received attention from traditional funds and companies. RWA will help revolutionize the face of DeFi, not unlike the DeFi summer wave.
5) AI
Although the AI in web3 is not as clear as web2, the popularity is indeed huge. It changes behaviors and applications in users’ daily lives.
Artificial intelligence in web3 can also focus on developing bots, or use on-chain data to implement specialized functions and uses. Artificial intelligence will quickly appear in everyone's daily life and form a long-term trend.
Many projects are being developed of high quality and these are the areas where I see the greatest potential. You should focus, pay attention and find good investment opportunities. If you are good at it, you can track all areas, but if you are not good enough or don't have the time, focusing on 1 or 2 areas will be enough.
5. Summary
Because ultimately, all we care about is profit. So no matter how good or awesome the project is, it must have a good status.
So there are many projects to track, but not many with potential and good status.
I hope this article brings you more value and helps you find high-quality projects. This is just my opinion and advice for reference, not investment advice.
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