Crypto Pragmatist: 5 Crypto Narratives to Watch

In a bear market, everything is slow. All sorts of everyday narratives morphed into discussions of macroeconomics, those “interesting” photos of Butterfly, and a general sense of unease.

However, behind all this is hope. Hopes for a turn in Fed policy or direction, for an economic recovery, for a bottoming out, and for a return to chaotic mania and an upward bull market (which feels like only a bull market is back to normal). That hope is offered by builders, entrepreneurs, and developers who continue to work on launching the next generation of technology today.

We’ll discuss a few of the plausible innovations you can see in this area below. In it we will find tomorrow’s “bull fuel”. If you study carefully, you will find that these assets hold a lot of opportunity.

1. Real income

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We are proud to have a positive forecast for GMX early in the “true gain” trend in an article at the end of May (the project has grown 2.5x since then). The success of GMX has led to a series of value-adding imitators: projects that create meaningful economic activity on the blockchain and distribute the proceeds to token holders.

These tokens are similar to stocks that pay cash dividends to their holders: that’s what “true yield” means. While the most successful iterations of these projects are “casinos” (on-chain derivatives exchanges that can charge high fees for using leverage), other projects such as Manifold Finance have generated real gains in other creative ways.

But the main innovation here is to remove the Ponzi nature of all projects that have sprung up in the past period. You can think of “true return” as the interest rate paid for holding equity in a project, rather than the return paid in equity.

Recommendation: Projects that start around the concept of real yield, or transition to existing projects that pay real dividends, will benefit from this trend. Please keep an eye out for new tokens or governance proposals related to this narrative.

2. Ethereum L2

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If the last bull run was driven by new L1 blockchains like Avalanche, Solana, and Cosmos, the current narrative energy has shifted to L2: Optimism, Arbitrum, and Metis built on Ethereum.

Although 2022 has been announced as the L2 year since January of this year, the L2 ecosystem has only really started meaningfully recently, mainly because it has finally gained meaningful adoption in terms of usage and protocol development. L2 just needs some time to boost its apps and developer activity.

So, while Optimistic Rollup’s Arbitrum was in full swing, a new wave of TVLs was sparked by a series of incentives for Optimism, and other projects were just starting to drive developer activity, most notably Metis and Boba Network.

Metis is the project to watch, as the project will deploy a $100 million incentive fund over the next two quarters. While the market cap of the entire chain is about $200 million, a $100 million incentive fund is pretty crazy.

Meanwhile, we await the arrival of ZKsync, ZKscroll and Starkware to start the ZK Rollup movement. Although – if history is similar – meaningful developer activity may be a while away.

Recommendation: Become an “ecosystem expert”. In the crypto world, experts are rewarded. Get involved early in the most promising projects in a given ecosystem.

3. L0 Ecosystem

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Stargate was an L0 project released in April this year, and the hype about the project was unbelievable at the time, but then its value has shrunk significantly. But the fundamentals have not changed, and no bridge or cross-chain architecture has been as successful as Stargate in integrating with other projects and engaging developers.

Since its launch, Stargate has integrated with Radiant, a cross-chain currency marketplace, and SushiSwap, which plans to launch the first cross-chain DEX. NFT and GameFi platforms like OmniX will also be integrated into this ecosystem.

L0 projects have one thing in common: they are all issued in a similar fashion, using a limited supply of tokens that sell out quickly. Mining projects allow savvy people to farm their assets, and eventually the asset price peaks and then slowly declines.

Advice: Figure out when small L0 tokens are issued and understand how to use their issuance strategy.

4. DeFi winners

The Internet has evolved from early speculation to later consolidation: it seems that the same could be played out in the crypto world. Will we see the emergence of FAANGs (here crypto giants) in DeFi products? Will most of the liquidity go to only a few platforms? It seems possible, and consolidation is something that only happens in mature industries.

We discuss consolidation and some potentially profitable assets in the tweet below:

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However, it is not yet a foregone conclusion. Winners will likely continue to win, but if the tide turns, we still have plenty of time to disrupt the current situation (like Euler Finance trying to disrupt Aave and Compound). Other projects may be innovative at first, but difficult to scale.

Advice: A clear opinion, a firm stand, and a loose hold should help guide you into a worldly winner.

5. Crypto Games

The idea of ​​building a blockbuster crypto game has been out of the limelight for years, but many in the industry seem to think it’s destined to happen.

The advantage many smaller players have over VCs in this space is that they know what a good game should look like and how it should feel to play. Almost instinctively, the crypto games that dominate the crypto-native user application are the first to hit the mainstream, not the ones that are well-targeted.

VCs try to find great teams and put millions of dollars into games that are likely to perform well. Most crypto-native users (most of whom also play video games themselves) will be early adopters of successful crypto games because the gaming experience is great. Therefore, they may benefit financially from the success of the game.

Advice: keep an eye on crypto games, and try any game you find interesting. Games that are played out of love are likely to be hugely successful.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/crypto-pragmatist-5-crypto-narratives-to-watch/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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