Original author: @althunter31
Original source: Twitter
Note: The original text comes from a long tweet by @althunter31.
Any sector rotation is a wealth code for the crypto world, and sector rotation is bound to start with the leading projects.
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If you don’t know the key sectors and leading projects for sector rotation, you may miss the next bull market! This article will interpret it for you.
The content is long. For ease of reference, it is made into a mind map. Remember to bookmark it so you don’t miss the rotation wave!
#Layer2 Ethereum #Kunpeng upgrade is expected to take place in October this year. EIP-4844 will increase the processing speed of Ethereum Layer 2 by 10-100 times, and the cost of each transaction that occurs on L2 will be tens of times cheaper than it is now. The upgrade will bring more application scenarios to #Layer2 and big events will inevitably lead to a big rise in the sector.
Here are also the representative projects and categories of #blockchain infrastructure.
1.1 Layer2 sector currency recommendation
$ARB @arbitrum The leading Layer2 expansion plan, and as a new currency, it has not yet hit the third wave, so the cost-effectiveness of the layout is relatively high before the Kunpeng upgrade.
$OP @optimismFND The pressure on the basic level after the huge unlock will be relatively small. Similarly, if the Kunpeng upgrade brings Layer2 summer, the OP rollup ecology will definitely rise.
1.2
$MATIC @0xPolygonLabs has seen the potential of ZK and invested 1 billion U.S. dollars to build ZK solutions. Four solutions have been launched so far. It is not difficult to imagine that when the ZK hotspot brought by the Kunpeng upgrade appears, Polygon will take off accordingly.
$SNX @synthetix_io allows the creation of synthetic liquidity supported by asset debt. Synthetic asset leader, and there is the expectation of the V3 full-chain protocol.
1.3
$GMX More than 30% of the TVL in Arb comes from @GMX_IO, which is essentially close to a leverage platform, and GLP lends coins to traders to add leverage to the counterparty.
$RDNT @RDNTCapital The native lending market on Arb is attempting to solve the liquidity fragmentation problem between different chains/L2s and build a full-chain lending market that is completely community-operated. The threshold for cross-chain lending is very high, and it does it well, with a lot of imagination space.
1.4
$Vela @vela_exchange is a newcomer to Arbitrum, supporting perpetual trading with up to 30x leverage, OTC trading, and spot trading with instant DEX exchange. The project has just announced integration with Factor Vault to provide users with seamless access to $VLP, as well as partnerships with @BitkeepOS and @RamsesExchange. The roadmap is also very promising and worth believing in!
In addition, universal zkRollup solutions such as ZkSyne and Starknet have not yet issued coins. In addition to paying attention to these projects, you can also pay attention to star projects and tokens at the ZK application layer such as $LRC, $IMX, and $SKL.
$LRC @loopringorg is the native token of the Loopring protocol. Loopring is a decentralized trading protocol designed to improve the efficiency and security of cryptocurrency trading.
2.1
$IMX L2 expansion plan + game platform. @Immutable positions itself as the first Ethereum Layer 2 solution for NFT trading. It is built using zk-rollups, and as Ethereum’s KanKun upgrade approaches, it may bring about a big narrative explosion.
$SKL @SkaleNetwork provides an interconnected chain network with an economic model that can achieve zero gas.
#LSD track LSD has gradually become the standard for any PoS ecosystem and has always been an indispensable part of DeFi. #LSDfi is a DeFi protocol based on it, which can further release liquidity, improve asset utilization and yield. With a 10-fold increase in $pendle before and a 40-fold myth of $LBR recently, it is difficult to ignore the pull-up expectations of the LSD veteran project.
Here also is the representative project and relationship classification of #LSD:
3.1
$LDO leader, pioneer, deep liquidity, highest efficiency. @LidoFinance is currently the largest liquidity staking platform with a market share of 31.6%. In addition, Lido has recently launched V2, which makes withdrawals much faster. For people holding less than 1000 stETH, it is possible to withdraw ETH in less than 1 day, while standard Ethereum withdrawals usually take 2-6 days.
3.2
$SSV @ssv_network is the basic infrastructure of LSD, a leading project of decentralized node verification protocol. It can serve all POS services, provide underlying services for ETH, and the market value is really not high.
$FXS @fraxfinance has a large ecosystem that extends from the stablecoin track to the current staking track.
#VR track Apple’s VR product is coming soon, and companies like Facebook and Samsung are preparing to launch new products. VR is also seen as the infrastructure of the metaverse and the next generation of smart hardware, and CZ previously stated that Binance will build a “metaverse ecosystem” based on BNB. With the concept and landing scenarios of the metaverse, it is natural to lay out in advance.
4.1 VR sector currency recommendation
$HIGH @highstreetworld is a business-centered metaverse, a VR project that Binance has invested heavily in.
$RNDR @RenderToken is one of the few blockchain-based distributed GPU rendering network platforms. Under the big concept of the metaverse, the development of the virtual world will be very rapid, and the demand for rendering will become stronger and stronger.
4.2
$CEEK @CEEK is a social virtual and augmented reality experience (AR) developer that aims to provide creators with the tools they need to generate new revenue streams from their digital art. Artists share resources, such as individual albums or songs, through the blockchain platform mounted on CEEK wearable devices, and can also create brand content that audiences love through VR/AR studios established on a large scale by CEEK.
#AI track Under the leadership of @OpenAI, AI has exploded, and top institutions have poured into the AI market with a large amount of capital. #NVIDIA is skyrocketing… Moreover, Binance also strongly supports the AI track. There is no doubt that AI is now the hottest concept and will continue to be hot. Therefore, whether it is short-term, medium-term, or long-term, the AI track is worth our layout!
Below is a summary of the key tokens in the #AI sector.
5.1 AI sector currency recommendation
$AGIX @SigularityNET is one of the earliest projects to combine AI and blockchain, and is also one of the AI concept coins that has risen the most in this round.
$FET @Fetch_ai was established in 2017 and was launched through IEO on Binance in 2019. It is an artificial intelligence laboratory that aims to build an open, decentralized machine learning network with encrypted economics.
5.2
$OCEAN @oceanprotocol is a blockchain-based ecosystem that allows individuals and enterprises to easily unlock the value of their data and monetize it through the use of ERC-20-based data tokens. With Ocean Protocol, publishers can monetize their data while protecting privacy and control, and consumers can now access data sets that were previously unavailable or hard to find.
GameFi & Metaverse Track #GameFi #Metaverse Track has been quiet for a while, but GameFi has had strong expectations in every sector rotation. And this year, a16z invested in 12 chain games & metaverse-related projects, which can be regarded as a heavy attack. Following smart money is always the right choice at any time. Looking forward to GameFi summer.
6.1 GameFi & Metaverse Sector Token Recommendation
$SAND @TheSandboxGame is one of the leading projects in the metaverse, with luxury IP joining and ample external funding.
$MANA is the earliest metaverse leader. @decentraland defines itself as a virtual reality platform supported by the Ethereum blockchain, and with the rise of RWA narrative, new explosive expectations are also expected.
6.2
$GALA @GoGalaGames Future metaverse game STEAM.
$MAGIC @Treasure_DAO is an NFT ecosystem on Arb, and L2 Summer brings high expectations for this.
$YGG @YieldGuild is a decentralized DAO for NFT investments in virtual world and blockchain games, with a good lineup of investment institutions and a low market value. And the price is really good now.
6.3
$BNX @binary_x was originally a decentralized derivatives trading system. Gradually developed into a decentralized video game development, and is now undergoing a comprehensive transformation into a GameFi platform, providing IGO services.
$ASX @AxieInfinity is the top project in the chain game field, allowing players to collect, breed, feed, fight, and trade token-based creatures-Axie, each of which is an NFT.
#RWA Track Real-world asset (RWA), a field that I am very optimistic about, has the potential to grow to trillions of dollars in market value, because it can really connect traditional finance with DeFi. There are some real builders building in the RWA field, and they are fighting against regulations. Once they find a breakthrough, they will be able to link Web3 with the real world. Early layout, timing will come sooner or later!
7.1 RWA sector recommended coins
$CFG @Centrifuge is the first project to do #RWA (Real-World-Asset) on @MakerDao. The concept of RWA has become popular this year, and Centrifuge is the project I think has the most potential in the RWA concept. According to the official website, Centrifuge has raised more than $385 million and TVL has doubled compared to last year.
7.2
$TRADE @Polytrade_fin is the most popular lending protocol on Polygon, dedicated to bringing sustainable real-world asset returns to DeFi. Other RWA projects include @synthetix_io ($SNX), @maplefinance ($MAPLE), @TrueFiDAO, etc., you can explore them by yourself.
At the end: In the cryptocurrency market, we have two ways to make money: one is to participate in market games, and the other is to follow the trend of incremental markets. Sector rotation belongs to the latter, which is a medium-term profit direction with strong certainty. We need to maintain market sensitivity like hunters, wait for opportunities to appear, and strike the target with one shot!
I have written an article on investment ideas for the cryptocurrency market, strongly recommend everyone to read it.
想在一个市场赚到钱，先弄清楚赚的是什么钱。
在加密市场中，我们有两种赚钱的方式（特指通过交易）：一是参与市场博弈，二是跟随增量市场的趋势。
前者是零和博弈，输赢取决于技术，心态与运气。后者则是跟随趋势，输赢取决于眼光与耐心，即能否在正确的时候布局正确的赛道且坚持下去。
(1/6)— 31 | Trader (@althunter31) May 29, 2023
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