Despite the bear market, I am still doubling down on research to find the best DeFi project. This article is the result of more than 500 hours of analysis over the past 7 months.
I will introduce some of the projects that I believe in. There will be about 15 projects, and I plan to use them as a future bull market project purchase list.
Fantom $FTM
- Viewpoint: RWA is difficult to find a product-market fit.
- Cryptocurrency Market in Finland: Analysis of Taxation, Regulation, and Future Development Trends
- African Cryptocurrency Market Report: Nigeria shows highest interest, Meme coins receive most attention.
Bull case:
• Strong technology and team
• Huge potential for the track and sufficient funds
• $FTM as GAS, compatible with Solidity virtual machine FVM
Bear case:
• Competition from L1/L2
• AC leaves Fantom again
Overall, I like FTM better and think that the bullish factors may outweigh the bearish factors.
Details:
https://twitter.com/jake_Blockinghor/status/1606665580018372612
THORChain $RUNE
Bull case:
• The number of DEX is continuing to grow
• Has a native exchange
• Has lending and other lending products
Bear case:
• Long-term bear market
• Large number of competitors
I like THORChain because it is very unique and very decentralized.
Details:
https://twitter.com/jake_Blockinghor/status/1608478781727023104
Cosmos $ATOM
Bull case:
• Projects based on IBC
• ATOM 2.0 narrative
• Projects with network effects in IBC
Bear case:
• Token economic design has flaws, high inflation rate
• Insufficient value capture ability
I like Cosmos because it feels like the cornerstone of the future of blockchain. If they can do better in value capture, the future is unlimited.
Details:
https://twitter.com/jake_Blockinghor/status/1613186534181683200
Chainlink $LINK
Bullish Factors:
• Position as the industry standard oracle
• $Link has a demand for staking
• Release of Chainlink Token Economics 2.0
Risks/Bearish Factors:
• Landing of Token Economics 2.0 and value capture
• Team’s selling pressure
Link hasn’t been doing well for the past few years, but I think this situation will eventually turn around.
Details:
https://twitter.com/jake_Blockinghor/status/1618988782904016897
$GMX
Bullish Factors:
• Protocol has revenue
• Perpetual DEX track is constantly growing
• Provide users with real and reliable income
Risks/Bearish Factors:
• Fierce market competition
• Long-term bear market
GMX has been one of the best performing tokens in the bear market.
Details:
https://twitter.com/jake_Blockinghor/status/1623699063953670146
Frax $FXS
Bullish Factors:
• LSDFi narrative
• Gradually building a huge DeFi ecosystem
• Stablecoin narrative
Risks/Bearish Factors:
• Stablecoin regulation
• Reliance on USDC
Overall, I am very bullish on FXS. They seem to have a long-term vision and are creating a cool product ecosystem.
Details:
https://twitter.com/jake_Blockinghor/status/1626598947278946304
Curve $CRV
Bullish Factors:
• Introduction of crvUSD stablecoin
• Protocol has high revenue
• Good token economics
Risks/Bearish:
• High percentage of tokens held by founders
One of the earliest DeFi protocols, I believe it will have a lot of upward potential in the next bull market, especially since Curve itself is a leading Swap for stablecoin exchanges. The introduction of crvUSD in this context has great advantages for the future development of its stablecoins.
Details:
https://twitter.com/jake_Blockinghor/status/1631309226902450180
Polygon $MATIC
Bullish Factors:
• Introduction of zkEVM
• Large institutional support
• Numerous partnerships
Risks/Bearish:
• Large current market value
• Regulatory risk exists
Polygon has the potential to become like Google in the crypto world, with ample funding, a large user base, and institutional support.
Details:
https://twitter.com/jake_Blockinghor/status/1633120717200928768
Gains network $GNS
Bullish Factors:
• High revenue and good token economics
• Perpetual contract Dex narrative
• Provides real and reliable yields
Risks/Bearish:
• Intense competition
• Gradually saturated market
Overall, I am very bullish on GNS. As the user experience improves, decentralized trading will only become more popular.
Details:
https://twitter.com/jake_Blockinghor/status/1636367588807651329
Arbitrum $ARB
Bullish Factors:
• Ethereum Layer 2 leader
• Stylus upgrade (will make Arbitrum more scalable)
• Expectation of increased adoption of crypto in the future
Risks/Bearish:
• Competition from ZK systems
• Future token unlocks
ARB is one of the most talked-about projects of the year, and while the hype from the airdrop has died down, it still has massive long-term potential.
Details:
https://twitter.com/jake_Blockinghor/status/1641440958779912194
Radiant $RDNT
Bullish Factors:
• Full-chain lending
• High revenue
• ARB ecosystem
Risks/Bearish:
• Token unlocks and selling pressure
• Many competitors
Radiant is interesting to me; I really like the full-chain and LayerZero narrative, and I also believe that lending has huge potential.
Details:
https://twitter.com/jake_Blockinghor/status/1648325823496089600
$AAVE
Bullish Factors:
• Launch of GHO stablecoin
• Leading project in DeFi lending
• Strong treasury
Risks/Bearish:
• Regulatory risks
• Long-term bear market
AAVE is building some great products and has considerable revenue potential. Bullish on its future.
Details:
https://twitter.com/jake_Blockinghor/status/1651222155416223746
Thena $THE
Factors for Upside Potential:
• Continued development of the BNB chain
• Strong token economics
• Release of perpetual contract trading
Risks/Downside Potential:
• The project is still in its early stages and has a low market cap
• There is no token supply limit, and there are large amounts of unlocked tokens in circulation
Thena’s market cap is much lower than other projects on the list. However, the rougher the seas, the higher the fish price, and I am very optimistic about this project.
Details:
https://twitter.com/jake_Blockinghor/status/1654124566237552640
$PENDLE
Factors for Upside Potential:
• Innovative yield tokenization protocol
• Occupies a relatively large market share in the LSDFi narrative
• Widely adopted
Risks/Downside Potential:
• Overhyped after being listed on Binance
• Not a low market cap project
Pendle has always been a relatively popular project and was ultimately listed on Binance. I believe it still has huge upside potential in the long run.
Details:
https://twitter.com/jake_Blockinghor/status/1666097674968522753
Stargate $STG
Factors for Upside Potential:
• LayerZero airdrop expectations
• Full chain narrative
• Sufficient treasury funds
Risks/Downside Potential:
• Risk of user loss after the airdrop
• Fierce competition
I like Stargate and think it has a higher chance of going up.
Details:
https://twitter.com/jake_Blockinghor/status/1669440563383513089
View on the Market
In the past 18 months, altcoins have lagged behind Bitcoin, which is a typical feature of market cycles. Among the 15 projects I shared, only Pendle has performed better than BTC this year.
Therefore, before we see the dominance of BTC reach its peak, altcoins still carry risks.
But that’s not always the case, we may see another class of projects rising in the future and the scale will be enormous.
Therefore, now is the best time to make a purchase list and prepare for the next bull market.
Key things to note:
• Dominance of Bitcoin
• Performance of the top three coins by market capitalization
• Macro factors
I currently only invest in a few of these projects, and if there is a major correction in the second half of the year, I may increase the spot positions of these projects.
The above projects are only for personal optimism, not financial advice, the market is risky, and investment needs to be cautious.
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